Having solar panels installed can represent a significant investment in your home, but one that can pay dividends for years to come. They’re one of the most effective ways to help push down energy costs while helping to reduce your environmental impact, but these long-term benefits come with a substantial upfront cost.

Given these costs, it’s natural for homeowners to wonder whether their panels are covered should misfortune strike. After all, their homeowners insurance offers them protection in the event of fires, floods, thefts, and other disasters, helping them feel more secure, but does this protection also cover damage to solar panels?

When Are Solar Panels Covered?

Although there may be some exceptions, and it’s always worth checking with your provider if you have any doubts, solar panel installations are typically covered if they meet a few basic conditions. In particular, they are generally covered if you own them outright, rather than leasing them, and they’re installed on the roof of your home, rather than in your yard or elsewhere.

This is because these panels are usually considered to be a permanent improvement to your home in much the same way an extension, patio, or security system would be. However, even if your panels are covered in theory, there is still one important factor to consider.

Is Your Coverage Limit High Enough?

As we mentioned and as you no doubt know if you’ve had them installed already, solar panels aren’t cheap, even if they’re well worth the cost. They can boost the value of your home and the amount you could lose if disaster were to strike, something which could potentially exceed your coverage limit.

This is because your coverage limit, which is the maximum amount your insurance provider will pay out should you need to make a claim, will likely have been set before you had the panels installed. For this reason, it’s generally recommended to consider whether your coverage limit is still sufficient whenever you make any major improvements or alterations to your home and increase it if needed.

Increasing your coverage limit will push your premiums up somewhat, but you may find that it’s a small price to pay for the peace of mind that comes with knowing you’re completely covered if anything were to happen to your home.

When Are Solar Panels Not Covered?

There are two situations where solar panels would not be covered by a standard homeowners insurance policy. The first is where you are leasing the panels, in which case they remain the property of the company you are leasing from and, in many cases, that company will take on the responsibility for insuring them.

The second situation is where the panels aren’t installed on your home but rather in your yard or on another structure such as a shed. Whether your insurance will cover your solar panels in these instances varies between policies and providers, so if you’re unsure it’s best to ask your provider directly.

Is Additional Cover Necessary?

If you review the terms of your policy or speak with your provider and find that your panels aren’t covered, you may wish to take out an additional policy to cover them. This policy may be from the same provider as your homeowners insurance or it may be from a different provider.

Additionally, you may choose to take out an additional policy to ensure complete coverage. Some homeowners insurance policies may not cover damage from weather such as extreme winds or hail, even if they otherwise cover damage to solar panels. If this applies to you and you are concerned about the risk of damage from weather conditions such as these, it may well be worth taking out a policy that will cover this.

Wrapping Things Up

In most cases, your homeowners insurance will cover your solar panels, but it’s always worth checking with your provider if you have any doubts. You’ll also need to consider whether your coverage limit is high enough to keep you fully covered as your solar installation can significantly increase the value of your home. In cases where you aren’t fully covered, you may wish to look for an additional insurance policy to ensure that your solar investment is protected.