For the right home, adding a solar system is one of the best things you can do to save money and decrease your carbon footprint.
Here at Lapointe, we get a lot of questions about how a solar panel system may affect your homeowners insurance. We have compiled a list of our most frequently asked questions here, and our responses to them.
Have a question that is not answered here? Send us an email or call us at any time at (508) 678-8341.
Fully-owned solar installations are typically covered by a standard homeowners policy. In order to get coverage, you must first tell your insurance provider so they can add them to your policy.
Leased or rented solar installations are not covered by a standard homeowners insurance policy.
In terms of insurance, it may be preferable to fully purchase your solar installation to ensure that it is fully covered by your HOI policy.
However, for some people, leasing is an attractive and cost-effective option to get a solar installation. And depending on your solar provider, you may qualify for a warranty, which can help protect your installation.
If you decide to lease your solar installation, you’ll want to look carefully at your installation contract to ensure that the company will cover any damage to your solar panels.
Both roof-mounted and ground-mounted solar systems can be added to your homeowners insurance policy. The difference is how each system will be added to your policy.
Roof-mounted solar systems will added to your “dwelling” coverage, whereas ground-mounted systems will be added to your “other structures” coverage. Click here to learn more about these specific coverages.
Adding a solar installation to your homeowners insurance will increase your coverage limits. For example, if you purchase a $30,000 solar system, your insurance agent will add $30,000 to either your Dwelling or Other Structures coverage.
The same coverage that is afforded to your home is also afforded to your solar panels. If you have an HO3 policy, the most common policy, you are protected for almost all perils (with a few specified exclusions such as floods, earthquakes, intentional damage, wear-and-tear, war, terrorism, nuclear disaster, etc.)
A warranty is a useful tool to protect your solar system. Warranties may even cover you for damage not covered by your insurance company, such as mechanical breakdown and wear-and tear.
However, warranties are often limited in their scope of coverage. For example, your warranty may cover the cost of damage to panels, but may not cover the cost of installation. As well, your coverage may lapse when your warranty expires or if your solar provider goes out of business.
Together, your homeowners insurance and your solar system warranty work to protect your installation. When protected by your homeowners insurance, your solar panels are almost always protected for their full-replacement cost.
If you’re interested in a solar system, we suggest working with someone who has experience, is local, and can stand behind their work. Therefore, we highly recommend the services of Isaksen Solar.
We personally underwrite all of Isaksen Solar’s insurance, and we can vouch that they are properly covered and qualified to do this work. If you’re looking for an honest opinion as to whether your home is a good fit for a solar system, we recommend that you give Isaksen Solar a call.
If you’re looking to insure your home and solar installation, fill out our form. It takes 2 minutes, and we can get a quote to you in 2 days or less!
In most cases, we can add a solar system to your homeowners policy and save you money on an annual basis.
