Many homeowners are interested in insurance for solar panels to protect against theft, weather-related events, and other unexpected incidents. It’s crucial because, without it, your out-of-pocket expenses for repairs and/or replacements are going to be hefty.
To help ensure you have the coverage you need, here’s a comprehensive guide to insurance for your solar panels. Listed below are the topics I’m covering. I recommend reading this from the top but if you want to skip sections, go ahead and tap on any of the bullets.
- Do home insurance policies cover solar panels?
- What do home insurance policies cover?
- Other questions to ask your home insurance provider
- Performance VS. product warranties
Are solar panels covered by your home insurance?
Yes, considering solar panels are permanent fixtures, most home insurance companies cover them. To be sure, though, it’s still best to your insurance provider or read their policy to see if they cover solar systems.
That being said, you will still have to contact your provider to let them know that you’ve had solar panels installed.
And, before you even ask…
Yes, you will have to pay more for your home and contents insurance.
Letting your insurer know about your new solar system will also increase your sum insured. This is the amount of money the insurer can pay you to repair or replace your solar panels in any event that they’re damaged from things covered in their policy.
This brings us to the next question.
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What’s covered in home insurance for solar panels?
There is no one answer to this because different insurance providers will give you different deals.
Some policies might cover damages from fire, earthquakes, and weather-related events while others won’t. Some might even cover the increase in your electricity bill while your solar panels are being serviced, as well as cover theft and vandalism.
In any case, your system’s components also have performance and product warranties. These will likely cover whatever else your home’s policy doesn’t but more on them later.
For now, know that you should read the specifics of your home’s policy. Or, if you don’t want to, simply give your insurer a call.
What else should I ask my home insurance provider?
Like any conversation, topics can jump from one to another. Whatever else you and your insurer talk about, though, make sure you ask the questions below:
- Are my solar panels covered under your policy? What about my other solar components (e.g. inverters, batteries, etc.)?
- What types of damages are covered under this policy?
- Are there any additional costs or fees associated with solar coverage?
- How much will my premium be affected if I add specific coverages like natural disaster damage or liability protection?
- Do I need to inform anyone else about my solar panels?
Performance VS. product warranties
Performance warranty
Performance warranties are the manufacturer’s guarantee that the panels you bought will retain a certain percentage of their original efficiency after a certain number of years.
The gold standard here is that modern solar panels will have a performance warranty that covers 25 years. Although, some (like SunPower) offer warranties that last up to 40 years. There are also those (like Jinko) that have panels with warranties that last less than 25.
For efficiency, high-quality solar panels will generally retain 85-90+% of their original efficiencies after 25 years. If the performance of your panels falls below those numbers before the warranty runs out, call your manufacturer and make an insurance or warranty claim.
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Product warranty
Product warranties cover your actual solar panels; not just their performance. Therefore, these are the warranties that cover physical and electrical problems as well as environmental issues that prevent your solar system from working to its full capacity, if at all.
A product warranty generally lasts anywhere between 10-25 years. Although, some manufacturers do offer extended coverages that last up to 30 years.
For more information on solar systems, here’s our comprehensive guide to solar panels.
Conclusion
Truth be told, solar panels are now more affordable and more durable than ever. This is all thanks to Australia’s numerous incentives, financing options, standards for installation, and the overall growth of solar panel technology.
However, they still cost thousands of dollars and they do sometimes get damaged. Getting them insured is just you protecting yourself from possible expensive fees in the future.
So, if you haven’t invested in solar yet because you aren’t sure about solar panel insurance, I sincerely hope this helped. If you need help finding a trustworthy installer, we have a network of pre-vetted ones that you can use. Let us know so we can get you 3 FREE quotes from them right away.
