Adding solar panels can boost the value of your home and (ideally) your savings account. Learn how you can protect this Earth-friendly investment and keep one wrong incident from melting away your well-deserved green with affordable homeowners insurance from Esurance.
does homeowners insurance cover solar panels?
Every 4 minutes, a new solar panel system is installed in the U.S. Which means every 4 minutes, someone else is discovering the joy of less wasted energy … and less wasted cash on that utility bill.
It's easy to forget, however, that solar panels are a big-time investment, not unlike a classic car or fine painting. And the last thing you want is to spend all your time worrying about damage from wind, hail, lighting, or other risks. Well look on the bright side (sorry, had to) — in most cases, your home insurance can typically cover solar panels.
If you have Esurance homeowners insurance, for instance, solar panels are considered part of your dwelling. So if a covered peril causes damage to your system, the dwelling protection on your policy would foot the bill for repairs (up to your limits), leaving you to bask in the glow of those nature-powered savings.
important things to consider when insuring solar panels
Adding solar panels is a major alteration to your home, and it might call for some alterations to your homeowners insurance as well. Here are some helpful questions to ask yourself when insuring solar panels.
Are all types of solar panel systems covered by homeowners insurance?
Depending on your insurer, there could be restrictions on coverage if you're installing a ground-mounted system rather than roof panels. It's best to check with your insurer before putting in your panels to verify that your type is protected.
Will my home's value go up?
Solar panels aren't cheap, but typically you can recoup your investment (and maybe even profit) through the value they add. Depending on your state, house, and system, you could experience a jump of up to $30,000 in home value just by adding this prized green feature.
What many people might forget, however, is the need to raise their dwelling protection limits to keep up. You likely chose your current coverage amount based on what your home was worth before you had solar panels put in. Problem is, if your place is destroyed and you failed to raise your limits, the cost to cover the gap between what your home was worth and what it's valued at now would fall to you.
Am I covered during installation?
Installing solar panels is a big job. If accidental damage occurs to your home, such as a hole in your roof, you'd hate to get stuck with the cost. Talk to your insurer about where you might need to bolster your current coverage so you (or a professional) can tackle installation with confidence.
Do I have enough fire protection?
Solar panels can present challenges to firefighters when tackling house fires, as the panels may continue generating electricity even while the blaze is going. The risk of electrocution to firefighters can sometimes hinder efforts in saving buildings, so you may want to reevaluate your dwelling protection limits.
get a free quote for your solar-powered home
Are you looking for modern coverage for your cutting-edge home? By getting a homeowners insurance quote with Esurance, you'll be able to tailor a policy with flexible options, bountiful discount opportunities, and handy tools all from a company that cares about the environment just as much as you do. Plus, our licensed agents are here at these times to help you along the way.
Helpful info during your quote
If you already have solar panels installed, it helps to have the following details handy before you begin your quote for a new homeowners policy:
- Where the panels are installed
- The number of panels
- Contractor information
- The type of system you're using
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Get a more detailed look at what an ENERGY STAR home entails.
Are home solar systems worth the cost?
Our blog helps you decide whether going solar is a worthwhile investment for you.
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