Solar Panels & Homeowners Insurance: What to Know Before Installation

Installing solar panels can change how your homeowner’s insurance needs to be reviewed.

If you have solar panels on your roof, or you are thinking about installing them, it is important to know how they are handled by your homeowner’s insurance policy.

Are Roof-Mounted Solar Panels Covered?

Roof-mounted solar panels that are owned or financed by the homeowner and permanently attached to the home are commonly treated as part of the dwelling. If they are damaged by a covered cause of loss, homeowners’ insurance can help pay for repairs or replacement, subject to the deductible, coverage limits, and policy conditions.

In Florida, homeowners should also pay close attention to wind and hail deductibles, limitations, or exclusions.

Leased solar panels are handled differently because the solar company owns the system. Before signing a lease, review the agreement carefully so you know who is responsible for insurance, repairs, removal, and replacement if the system is damaged.

What About Animal Damage?

Roof-mounted solar panels create small, protected areas between the panels and the roof. Squirrels, rodents, and other wildlife often use those spaces for shelter or nesting. Once they are under the panels, they can chew wiring, damage connections, and create other problems with the system.

Because owned or financed roof-mounted panels are treated as part of the dwelling, the same policy exclusions apply to the solar panel system. Damage caused by animals, rodents, vermin, chewing, nesting, or poor maintenance is excluded or limited under homeowners’ policies.

If you have solar panels, ask your installer about guards, barriers, or other ways to help keep animals from getting under the panels. Preventing access is easier than dealing with damaged wiring later.

Solar Panels Can Affect the Replacement Cost of Your Home

When roof-mounted solar panels are added to the homeowner’s policy, they increase the cost to rebuild or replace the home after a covered loss. In a total loss, the cost to replace the home needs to include the cost to replace the solar panel system.

If the solar system is not reflected properly in the homeowners’ policy, the dwelling limit may not accurately reflect the cost to repair or rebuild the home with the panels included.

Solar panels can also affect partial losses. If the roof is damaged, the panels may need to be removed before roof repairs can begin. After the roof is repaired, the panels need to be reinstalled and reconnected. That can add labor, time, and cost to the claim.

This is why homeowners should contact their insurance agent before solar panels are installed. That gives the agent time to review the policy, adjust coverage if needed, and help make sure the system is properly reflected when installation is complete.