Does Home Insurance Cover Solar Panels?

Solar panels can be a great way to lower energy costs and boost your home’s efficiency. But as more homeowners make the switch to solar, questions about how these systems fit into existing insurance coverage are becoming more common. After all, solar panels are a major investment, and protecting them is just as important as protecting the rest of your property.

From potential coverage limits to installation considerations, several factors can determine how insurers handle solar panels. Here’s what you need to know before making the leap toward renewable energy.

Key Takeaways

• Many home insurance policies cover solar panels, but exact coverage depends on the type of solar panels you have and your policy’s limitations.
• Rooftop solar panels that are permanently attached to your home may be protected under your home insurance policy’s Dwelling Coverage.
• Ground-mounted solar panels, or panels attached to detached structures on your property, may be protected by the Other Structures coverage of your home insurance policy. This typically offers a lower coverage limit that may not reflect the full value of your solar panel system.
• If you lease your solar panel system, the leasing company may insure it.
• Solar panel coverage varies by policy. Always confirm what your policy covers.

Rooftop Panels vs. Ground-Mounted Systems: Are They Covered by Insurance?

Many home insurance policies do cover solar panels. However, the way solar panels are covered under your homeowners insurance often depends on where they’re installed.

Rooftop Solar Panels

Rooftop panels that are permanently attached to your home are typically considered part of the dwelling itself. That means they’re often protected under Dwelling Coverage, the same part of your homeowners insurance that covers the structure of your house. In most cases, this includes damage caused by perils like fire, hail, lightning, theft, and vandalism.

It’s important to note, however, that exact coverages vary by policy. Always review your policy to confirm whether it protects rooftop solar panels and whether the coverage limit is high enough to replace the entire system if needed.

Ground-Mounted Systems

Solar panels installed on the ground or on separate structures—such as a detached garage, carport, or shed—are usually handled differently. These systems often fall under Other Structures coverage, which typically has lower limits than your primary Dwelling Coverage. In some cases, they may not be covered at all under a standard policy. To make sure your investment is fully protected, you may need to add an insurance rider or purchase a separate policy that specifically covers your ground-mounted solar panels.

Do Solar Panels Increase Home Insurance?

Adding solar panels can affect your homeowners insurance premiums, but not in the way you might think. The main reason you may see higher premiums is that your solar panel system increases your home's overall replacement cost. Since solar energy is a valuable home addition, insurance providers must account for the higher cost of rebuilding or repairing your property if it’s damaged.

Update Your Policy Limits and Deductibles

Once your solar panels are installed, it’s important to review your homeowners insurance policy to make sure everything is adequately protected. Solar panels are a major investment, and updating your coverage helps ensure you’re financially prepared if something happens.

Policy Value Adjustment

Because solar panel systems can significantly increase the total replacement cost of your home, your Dwelling Coverage limit may need to be raised. This adjustment ensures your policy reflects the full cost of rebuilding or repairing your home—including the solar panel system—so you’re not left underinsured if a covered loss occurs.

Leased vs. Owned Systems

If you own your solar panels outright, you are responsible for making sure they’re included in your homeowners coverage. However, if your panels are leased, the leasing company typically provides insurance for the system itself. Even so, you should confirm that your policy covers any damage to your roof or the home’s structure related to the panels.

Review Deductibles

Before incorporating solar energy into your home, it is wise to review your deductible. This is the amount you’ll pay out of pocket before your insurance coverage begins for a Dwelling claim. Understanding your deductible helps you plan for unexpected costs and ensures you’re comfortable with your financial responsibility in the event of a loss.

Protect Your Home and Panels Through GEICO Insurance Agency

Installing solar panels is a smart way to increase your home’s efficiency and value, but it’s essential to make sure that investment is fully protected. Reviewing your homeowners insurance policy, updating coverage limits, and confirming what’s included will give you peace of mind that your solar panel system—and your home—are covered.

Ready to make sure your home insurance keeps up with your upgrades? Contact us to discuss your coverage, or get a free homeowners insurance quote through GEICO Insurance Agency today and see how easy it is to protect your home, inside and out.