Before determining whether your rooftop solar power system requires any special insurance or not, it’s important to understand what you’d be insuring against.
- Most high quality solar panels carry 25-year warranties that protect you from malfunctions and breakages. And if you lease (rather than own) your PV system, the 3rd party lessor is responsible for all repairs and maintenance.
- With no moving parts, solar panels are incredibly resilient. Occasional cleaning and minimal maintenance can keep a well-installed PV system going strong for decades. In fact, many solar installations continue generating clean electricity for 40 years or longer (well beyond the manufacturer’s warranty).
As a result, majority of solar PV installations do not require any additional insurance. Breakages are rare. And even if they happen, you are usually fully covered.
Can rooftop solar be insured?
Simply put, YES! Insurance does exist for solar panel systems, and some insurance companies already include coverage in current building insurance policies. It’s important to do your research when you’re looking to insure a solar panel system, as some companies may see it as adding value to your house and charge more, while some may actually offer a discount.
Why the need for special insurance?
As with any renovation, the building owner should consider installing solar panels as a major addition or “renovation” to their building, and more importantly, a long-term investment.
Adding additional insurance coverage will make sure your new system is safe from any risky variables that may cause damage and protect you from having to pay out of pocket for costly repairs. This could include foreign objects striking your panels (i.e. trees), accidental electrical damage (lightning, etc.) among anything else that could potentially damage your system.
What does the special insurance cover?
Solar panel systems placed on the roofs may be in danger of things and you can get full coverage of your system that will include these risk factors:
- Inclement weather (hail, snow, and lightning)
Most insurance companies will make your local climate the biggest consideration when evaluating your new premium cost. Adding solar panels to your home insurance policy can save you thousands in repair or replacement costs if they have the misfortune of being damaged or stolen.
Talking to your insurance agent is the best way to decide what kind of coverage you will need on your solar panel system and any risks you should be wary of if you’re still considering having them installed. Remember that solar offers a predictable payback period. Paying out-of-pocket for extra insurance lengthens that payback period. And although you’ll still come out ahead financially, this added expense will also decrease the overall return of your investment.