Installing solar power in residences is a revolutionary step toward the broad adoption of sustainable energy. But this environmentally beneficial decision raises the question of its effect on home insurance.
You have requested a solar PV installation. After professionals install your solar system, you’re probably wondering how this new feature will impact your home insurance.
In this blog, we will discuss everything about the solar panels and home insurance.
Luckily for you, solar panels are now a common feature of most home insurance plans from most companies. Most insurance companies see solar panels as an integral element of the house, much like the roof and walls, rather than as a costly accessory. The best action is to ask your insurer whether they are covered under your insurance if you are unsure.
As long as the panels are fixed to your house, almost every kind of system, including PV solar panels, hybrid panels with heat exchangers, and solar tiles, is covered by home insurance. In addition, your coverage will protect your panels against damage caused by water, fire, severe weather, fallen trees, and other hazards. Typically available as an add-on to basic insurance, accidental damage ensures that your panels are covered if someone inadvertently destroys them.
The cost of home insurance may be high, and most plans have a maximum amount that the insurer will pay out for specific items. Review these numbers before buying insurance to ensure your solar PV system is fully protected. It’s crucial to remember that the least expensive choice is usually the worst and won’t provide you with the finest coverage over time.
In places where storms occur regularly traditional home insurance plans usually do not cover damage from wind or floods. Wind Insurance, commonly known as Windstorm, Wind and Hail, Named Storm, or a Hurricane Policy, is available in the following 19 states along the US coast. It is not the same as regular homeowner’s insurance.
If you reside in Arizona, you don’t likely worry about hail harming your solar panels. But since there is a higher risk of tornadoes in the Midwest, you should be sure your insurance covers wind damage.
Since wind insurance has a percentage deductible, you will not be required to pay a fixed sum out of pocket; instead, you will be responsible for a predetermined proportion of the cost of your house, including the cost of your solar system. The deductible for wind insurance may be as little as 1% to 5%, but it can go higher based on how often hurricanes or other natural disasters are in your state. The price of supplemental windstorm insurance is determined by your location, your deductible, and the anticipated cost of rebuilding your house.
A standard home insurance policy will not cover earthquake-related damages but will cover losses resulting from a fire that breaks out after one. Furthermore, you should to discuss the coverage requirements for your solar panels with your insurance provider if you reside in a region more vulnerable to natural calamities like earthquakes.
Policies for earthquake insurance are managed differently from those for house insurance. Although solar panels are very earthquake-resistant, you may need supplemental earthquake insurance to safeguard your home’s solar panel system if you reside close to a fault line in California.
It would help if you never assumed that homeowners insurance would cover anything since it might be complicated. It is imperative that you consult your insurance provider if you want to install renewable energy in your house. Your insurance company will likely cover the panels, but you may need further steps.
Because insurance coverage varies, you need to understand what your insurance covers and does not cover fully. If your solar panels are not mounted on your home’s roof, you may need additional covering, which may increase cost.
The value of your property increases with the addition of solar panels; thus, your premium may increase accordingly. Therefore, it’s worthwhile to investigate more extensive coverage to ensure that everything will be handled in the event of an unplanned catastrophe.
The company you are leasing from is in charge of your solar panels’ insurance if you do so. Even so, it would be best if you still spoke with your insurance company to find out how the two distinct insurance plans will work together in case of a claim.
In the end, you should speak with your insurance provider in-depth if you want to go solar to ensure that you, your house, and your solar panels are completely covered.
Speak with your insurance provider about your plan to determine whether your solar system is insured against any natural catastrophe.
Just Doing Solar’s team is available to assist you with your solar panel installation in the USA and help you switch to solar power. Installing a system of excellent quality and properly installed is crucial to guarantee that your solar panels will continue generating power for many years.
