Solar panels are a great way to invest in your own property and reduce your energy bills as well as your overall environmental impact. As a homeowner, you may have considered a number of factors when deciding whether to install solar panels on your property. Installation costs, energy savings, and similar considerations are common considerations when it comes to making the decision to switch to solar energy to power your home. One factor you may not yet have considered is the impact your new solar panel system will have on your home insurance. To help you make an informed decision that takes into consideration this vital factor, take a look at some information below that discusses how solar panels will impact your home insurance.
Solar panels are a significant investment for any homeowner, which means you’ll want to ensure that investment and protect yourself from any future financial burden should anything go wrong with your solar panels in the future. A typical solar panel system installed on an average home’s rooftop will cost anywhere between $15,000 and $25,000, depending on the size of your roof and the kind of system you choose to install. Ensuring that investment is just as important as ensuring the rest of your home, which is why it is so important to make sure you are covered in case of any issues.
Am I Covered?
For the most part, your solar panels will be covered by your existing homeowner’s insurance. This is largely due to the fact that the solar panels are permanently attached to your rooftop, and as such they are considered a part of your property. The insurance for your rooftop solar panel system works similarly to insurance for a patio or in-home security system. Since they are permanent fixtures of your property, they are automatically included in your homeowner’s insurance once they are brought to your insurer’s attention.
You should note however that some insurance policies may not cover all types of damage caused by elements like wind. Before you get a solar panel system installed on your roof, you should go over the extent of your coverage and add any additional coverage if necessary. You should also note that solar panel systems that are on your property but not permanently fixed to your home may require additional coverage for repair costs. In this case, you may want to raise your coverage limit for structures separate from your home.
A solar panel system can be a great investment for any home. You will quickly see a reduction in your energy bills, and the addition of solar panels on your property can actually increase the value of your home. Before you have your new solar panels installed anywhere on your property, however, you should check with your insurer to make sure that any additional costs are accounted for.
Sometimes you will need to raise your coverage limit or increase your premium to account for the additional value attached to your property. In the long run, these additional costs to your policy will be well worth it, as solar panels can contribute a significant amount of financial savings over time, as long as you are adequately protected with the right homeowner’s insurance policy.
Brad is proud to be of First Nation’s descent with ancestry traced back to the Manitoba Red River Band. With over 20 years’ experience in the construction industry, Brad offers an extensive background of project procurement in industries from agriculture, electrical distribution to commercial construction. Brad is a NABCEP certified professional with a thirst for ongoing education in the renewable field.