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Rooftop solar changes your insurance in a simple way. The panels become part of the house, so the cost of replacing them after storm damage, fire, or theft needs to sit inside your coverage. Many owners forget to update the policy after installation, which leaves the system underinsured.
Owned panels usually raise the dwelling limit
If you own the panels, tell your insurer once they are installed. The dwelling limit may need to go up to reflect the added replacement cost, and a higher limit usually means a somewhat higher premium. Our explainer on how insurers calculate replacement cost shows how additions like this feed into the figure.
Leased panels work differently
With a lease or power purchase agreement, the solar company owns the equipment and usually insures it under its own arrangements. Your homeowners policy may still be involved if the installation damages the roof, so read the agreement and ask the solar company what happens after a storm. Keep the paperwork with your policy documents.
Questions to ask before and after installation
- Will the panels be covered for hail and wind under my current policy?
- Do I need to raise my dwelling limit, and by how much?
- Who pays if removing and refitting panels is needed during a roof repair?
- Does the installer carry insurance for roof damage during the work?
After any roof work, revisit your coverage. Our guide to what homeowners insurance covers and the national homeowners insurance cost guide will help you check that the rest of the policy still fits.
Related reading: how home insurance deductibles work and homeowners insurance discounts worth asking about.
