Does Solar Increase Home Insurance? What You Need To Know

Solar panels are a great way to save money on electricity bills and reduce your carbon footprint.

But do they also increase your home insurance costs?

Does Solar Increase Home Insurance?
Does Solar Increase Home Insurance? | Dyson Energy Services

The answer depends on several factors, such as the type, size, and ownership of your solar system, as well as the coverage and policy of your insurance company.

In this article, we will explore some of the common questions and issues related to solar panels and home insurance.

READ MORE : Does Home Insurance Cover Legal Fees? Legal Expenses Cover Explained

Are Solar Panels Covered by Home Insurance?

The first question you might have is whether your solar panels are covered by your existing home insurance policy.

The good news is that most insurers consider solar panels as part of your building, and will cover them for damages caused by perils that are included in your policy, such as fire, wind, hail, lightning, or falling objects.

This means that you do not need to buy a separate or special policy for your solar panels, as long as they are rooftop-mounted and permanently attached to your property.

However, there are some exceptions and limitations that you should be aware of.

For example, some insurers may not cover ground-mounted solar panels or solar carports, or may require an add-on or separate policy for them.

Some insurers may also exclude damages caused by “acts of God”, such as natural disasters, or by vandalism, theft, or power surges.

Moreover, some insurers may not cover damages that occur during the installation process of your solar panels, unless they are done by a qualified and licensed installer.

Therefore, it is important to check with your insurance company before installing solar panels, and to review your policy carefully to understand what is covered and what is not.

You should also inform your insurer about your solar system and provide them with the details, such as the size, cost, and warranty of your system.

How Much Does Solar Increase Home Insurance?

Another question you might have is how much your home insurance premiums will increase after installing solar panels.

The answer to this question depends on the value of your solar system and the coverage limit of your policy.

If your solar system is worth more than your current coverage limit, you may want to increase it to ensure that you are fully protected in case of a total loss.

The cost of increasing your coverage limit will vary depending on your insurer, your location, your home value, and your solar system value.

However, according to some estimates, the average increase in home insurance premiums due to solar panels is around $5 to $10 per month.

This means that the additional cost of insuring your solar system is likely to be negligible compared to the savings and benefits that you will get from generating your own clean energy.

However, not all insurers will charge you the same amount for increasing your coverage limit, and some may even offer discounts or incentives for installing solar panels.

Therefore, it is advisable to shop around and compare different quotes from different insurers to find the best deal for your solar system and your home.

What If You Lease or Have a PPA for Your Solar Panels?

If you do not own your solar panels, but lease them or have a power purchase agreement (PPA) with a third-party provider, the situation is different.

In this case, you are not responsible for insuring your solar panels, as they are owned and maintained by the provider.

The provider should have their own insurance policy that covers the solar system for any damages or losses.

However, this does not mean that you are completely off the hook.

You should still inform your home insurance company about your solar arrangement, as it may affect your liability coverage.

Liability coverage is the part of your policy that protects you from lawsuits or claims if someone is injured or suffers property damage on your premises.

For example, if a solar panel falls off your roof and hits a passerby, or if a fire breaks out due to a faulty wiring of your solar system.

What insurance companies cover solar panels in florida?

The insurance policy that covers solar panels in Florida depends on the size and ownership of your solar system. According to the web search results, there are three tiers of solar systems in Florida, based on their kilowatt (kW) capacity:

Tier 1: systems less than or equal to 10 kW (or 11.7 kW DC)
Tier 2: systems larger than 10 kW up to 100 kW
Tier 3: systems larger 100kW

If you own a Tier 1 solar system, which is the most common for residential use, you do not need to buy a separate or special policy for your solar panels.

Most home insurance policies will cover your solar panels as part of your building, and will protect them from damages caused by fire, wind, hail, lightning, or falling objects .

However, you should check with your insurance company and review your policy to make sure that your solar panels are covered and to what extent.

If you own a Tier 2 or Tier 3 solar system, which are usually larger and more expensive, you may need to increase your coverage limit or buy an add-on or separate policy for your solar panels.

This is because some utility companies in Florida require proof of a Personal Liability Policy (PLP) of at least $1 million for Tier 2 systems, and a higher amount for Tier 3 systems .

The PLP is meant to protect the utility company from liability if your solar system causes injury or damage to others.

However, some estimates suggest that the average increase in home insurance premiums due to solar panels is around $5 to $10 per month, which is likely to be negligible compared to the savings and benefits that you will get from generating your own clean energy.

 

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