Solar panel insurance keeps your green energy investment covered

Solar Panel Insurance - solar panels on house roof

Many homeowners don’t realize that they need to add coverage to their eco-friendly additions.

Across the country, homeowners and businesses alike are making efforts to shrink their carbon footprint but many forget to add solar panel insurance to cover their substantial investments.

Getting coverage for your green energy additions is typically quite easy to do.

The average rooftop solar panel system will usually cost somewhere between $15,000 and $25,000, according to data from the Center for Sustainable Energy. This represents a considerable investment and will raise the replacement cost of your home. Having to pay to repair or replace damage to a system can be a substantial burden to the average homeowner. Therefore, the right solar panel insurance can offer coverage against damage from perils such as severe weather.

For most homeowners, obtaining coverage is not difficult. Most – though not all – homeowners insurance policies will provide coverage for a solar panel system. The key is to make sure that you have enough coverage on your policy. After all, if you add a new $20,000 green energy installation to your home, then you will want an additional $20,000 of coverage on your policy. That way, if disaster should strike, the full replacement cost of your home will be covered and you will not be required to pay out of pocket.

Separate solar panel insurance policies are required in specific cases.

If your homeowners insurance policy does not cover your panels, it is important to purchase a separate policy that will. Be sure to review your policy and contact your agent or insurer to be sure you will be able to add the additional coverage before you start the installation. That way, you’ll know whether you will simply need to add more coverage to your existing homeowners insurance policy or whether you will need to start hunting for separate coverage.

Another instance in which you may need to seek out a separate solar panel insurance policy is if your system is not installed on your roof. When it is added to your roof, it becomes a part of your home. However, if your panels are installed separately from your home, they are deemed independent structures from the main building. As is the case Solar Panel Insurance - solar panels on house roofof a storage shed or gazebo, you may be limited to claims of only 10 percent of the dwelling limit, which may or may not be enough. Separate coverage is often required in those situations.

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