What you should know about solar energy and your homeowners coverage.
Last year, the state of California became the first state to mandate that all new homes have solar power. As a result, many homeowners are curious to learn how installing solar technology will affect their homeowners insurance. Here’s what you need to know about the effect of this green technology on your insurance.
- Are solar panels covered by home insurance?
Solar panels may be covered by homeowners insurance because solar panels are considered a permanent attachment to your home and would be covered under the dwelling portion of your homeowners insurance policy. However, keep in mind that every insurer is different. Make sure to contact your insurance provider to ensure that your policy does offer you the coverage that you need for your solar panels. If not, inquire about specific endorsement to ensure there aren’t any gaps.
- How much coverage do I have?
As with other covered losses, damage to your home’s solar panels will be covered up to your policy’s maximum coverage limit. Because solar panels can be very expensive to repair and replace, you may want to consider raising your home policy’s limits to ensure that you have enough coverage or discuss with your insurance agent.
- Will solar panels cause my premiums to increase?
Most likely, yes. Because solar panels are expensive to repair and replace, your insurer will raise your premiums to address the additional risks associated with covering them. As previously mentioned, some insurers will include coverage for your solar panels under the dwelling portion of your policy. Other insurance providers will offer the homeowner the opportunity to secure an endorsement to specifically cover the panels, but these endorsements come at an additional cost.
This is what you need to know about solar panels and your homeowners insurance coverage. Do you have additional questions regarding your home insurance? For assistance with all your coverage needs, contact an insurance professional at Westwood Insurance Agency today.