Does Home Insurance Cover Solar Panels?
What if saving on your power bill was easier than you ever imagined?
You protect your house with good homeowners insurance, and an increasing number of people protect their bottom lines by getting solar panels. However, many interested in installing such technology worry about whether their policy will cover damages to this expensive tech.
Are you interested in solar panels for your home? Would you like to know more about what is and is not covered so you can protect your investment? Keep reading to discover everything you need to know about home insurance for solar panels.
The Rise of Solar Energy in Homes
You may have noticed that solar panels have become more popular, both in your own neighborhood and throughout the country. The reason is that the government helped make installing this technology more affordable by implementing a special tax credit. This was enough of an incentive for many to add this environmentally friendly technology to their own homes.
Unfortunately, installation can be expensive even if you get the special credit. According to the Pew Research Center, installing renewable panels in 2022 ranged from $16,870 to $23,170, even after the credit was applied. Because of this high cost, it is important to understand whether your homeowners insurance policy can help cover potential damage to your solar energy system.
Solar Protection Through Homeowners Insurance
Are you interested in utilizing your home insurance to protect your sun-powered energy system? Here is the good news: In most cases, your existing coverage will help protect against damage to this tech. For example, if the panels are permanently attached to your house, they should be protected under your dwelling coverage.
What if your panels are mounted to the ground or another structure on your property? In that case, they may be covered by your other structures policy. But they also might not be covered, which is why you always need to know what your home insurance covers.
If you do not like what your current carrier offers, this would be the perfect time to get a new carrier, potentially gaining better protections along with a more affordable premium.
Exploring Supplemental Policies and Endorsements for Solar Panels
If you do not currently have coverage for solar panels, you may be able to get this protection through either a supplemental policy or endorsement. For example, you may be able to get special insurance that is separate from your homeowners policy just for the panels. This is similar to getting additional insurance to protect valuable items.
In some cases, you can simply add protection to the existing policy by getting a special rider or endorsement. By exploring all your options when it comes to home insurance and solar panels, you can firmly protect your eco-friendly home.
Navigating the Costs of Solar Panel Insurance
When you consider the potential energy savings, investing in a home renewable power system seems like a no-brainer. However, the cost can be prohibitively expensive for many homeowners.
Even after the federal tax credit is applied, you can easily spend $20,000 or more simply installing the technology. Because of that, solar panel insurance is crucial. Paying a small premium each month can offer the peace of mind that comes from knowing your very expensive upgrade is financially protected.
The Impact of Solar Installations on Insurance Premiums
When it comes to home insurance and your solar energy system, you probably have one big question left. Just how much will installing this technology affect your monthly premium? The truth is that while your rate may be affected, it will not be by that much.
In short, the carrier will increase your premium so that, if needed, your panels can be fully replaced after they are catastrophically damaged. In most cases, this is a relatively minor increase. But if you are unhappy with what your carrier offers, remember you can switch to a different insurer at any time.
Insure Your Solar-Powered Home
Now you know more about home insurance for renewable energy panels. This includes whether the tech is covered, how much the panels cost to install, and how much coverage affects your premium. However, do you know which carrier has your back in your ongoing quest to protect your home while saving money?
At InsureOne, we specialize in protecting homeowners just like you. Are you ready to finally work with a carrier that offers the pricing and protection you so rightfully deserve? Then it is time for you to get a quote online. If you want a more personal touch, you can also pick up the phone and give us a quick call at 800-836-2240. And remember, it does not get more personal than visiting us in person, and you are welcome to find an InsureOne office near you.