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Executive Order for Policyholder Payments
With the adoption of solar energy booming across the United States, many homeowners are making the switch to renewable power. But as you invest in solar, it’s crucial to ask: Are your solar panels covered by your home insurance, and what should you do to make sure your new energy system is fully protected?
Read on for a homeowner-focused guide from Club Agency Insurance Brokerage to understanding solar panel insurance coverage in 2025 and beyond.
The good news: The majority of standard U.S. homeowners insurance policies include coverage for solar panels so long as the panels are a permanent installation on your property, such as being mounted on your roof. In most cases, insurers treat rooftop solar panels as a structural component of your home, meaning if a covered peril like fire, hail, or windstorm damages your system, your policy would pay for necessary repairs up to your coverage limits.
If you opt for ground-mounted panels or solar arrays attached to sheds or garages, coverage may still be available. These systems typically fall under "other structures" protection in your policy, but not all policies handle such setups identically and always clarify with your insurance provider.
What’s not covered: Standard home insurance does not cover every cause of damage. Common perils like floods and earthquakes are usually excluded unless you add specific endorsements or have separate policies.
Solar panels are a significant investment, often costing $15,000–$25,000 for a typical home installation after incentives. Adding them increases the replacement value of your home. Most insurers recommend reassessing your dwelling coverage limits after installation: if your coverage isn’t updated, you may be underinsured if a disaster destroys both your home and your solar system.
A premium increase is likely as your home’s value grows, but the cost is usually modest compared to the benefit of fully insuring your new solar technology.
If you lease your solar panels or finance them through a third party, you typically don’t own the system, the solar company does. In these arrangements, the responsibility for insuring the panels usually falls on the leasing company, not you. Always review your lease or power purchase agreements and check for specified insurance requirements.
Notify Your Insurance Agent: Before or immediately after installation, let your insurer know about your new solar panels.
Review and Adjust Coverage Limits: Make sure your dwelling coverage reflects the cost of replacing both your home and your solar system.
Check Coverage for Non-Rooftop Installations: Ask if your policy covers ground-mounted or auxiliary-structure installations, or if you’ll need separate endorsements.
Understand Exclusions: Consider supplemental policies for flood or earthquake damage if you live in at-risk areas.
Keep Documentation: Save receipts, warranties, and installation details, these are invaluable if you ever need to file a claim.
Most standard policies cover rooftop panels as part of your dwelling, but it’s essential to inform your insurer and confirm your individual policy details.
Your premium may rise slightly, reflecting the higher replacement cost of your home, but this ensures your investment is protected.
These installations are often classified under “other structures” coverage, but not all policies are the same; contact your agent to verify coverage and discuss potential endorsements if needed.
Flood and earthquake damage are usually excluded from standard coverage; specific endorsements or separate policies are required for these events.
At Club Agency Insurance Brokerage, we specialize in crafting coverage that evolves with your needs from renewable energy systems to every aspect of your property. Contact us today or call us directly at (866) 784-9785, to get in touch with one of our expert agents today for a complimentary review of your homeowners policy. We’ll help ensure your solar panels, and the rest of your property, are safeguarded against the unexpected, keeping your investment and your family’s comfort secure for years to come.
For more on this topic, check out resources from Allstate, The Zebra, and EnergySage.
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