Is Solar Insurance Worth It?

Is Solar Insurance Worth It?

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Getting your home or car insured might be a no-brainer, but is solar insurance worth it? Since the investment for these setups is so big, this is a valid question to explore! Solar panels are a hot commodity. If you already have a system, you’ll know how valuable it is. Ensuring that it’s covered for damage or theft is vital. In this article, I explain the types of insurance available for solar setups. You’ll also read which companies offer it and whether getting solar insurance for your setup is really worth it. 

solar insurance

Types of Solar Insurance Available

Getting your solar panels insured is pretty simple. There are a few insurance plans most companies offer that’ll cover your solar setup. Here are the typical ones!

Homeowners Insurance With A Solar Panel Clause

Homeowners insurance is the most common type of insurance. It usually covers everything in your house – from your TV to your bed! Most companies have the option to add a clause for your solar setup.

While your premium might increase slightly, your panels can have coverage against theft, weather conditions, and breakage. Your insurance company will replace the damaged or stolen parts or pay an equal amount to the value. 

Commercial Insurance for Solar Setups

Commercial insurance is primarily meant for business owners. The companies that offer homeowners insurance often offer commercial options as well. This type of insurance covers anything related to your business. You can get coverage on anything that helps you run your business, including solar panels. Commercial solar insurance can cover you for thefts or damage. Getting insured and putting in a claim works similarly to homeowners insurance. Just keep in mind that the premiums for commercial insurance are typically higher. 

Solar Insurance

Some insurance companies offer standalone solar insurance. These are designed specifically to cover anything related to solar power. Companies selling home insurance can have this option, but you can enquire about it from the company installing your setup too. 

Cost of Solar Panel Insurance

Companies offering insurance will have different packages for you to choose from. The price of each will depend on what it covers. There is no set amount for these packages, and each insurance company will have its own terms. They settle on a premium based on the value of your solar panels, the risk of insuring them, and other factors.  The initial cost of your system is a significant contributor to your premium. You would be paying more for an expensive system because it would cost the company more if they had to replace it. 

Another factor increasing monthly premiums is the area you live in. Frequent storms mean there’s a greater chance that your panels might get damaged. Likewise, a dangerous neighborhood with a lot of criminal activity is considered high-risk. If you’re lucky, you’ll stumble upon a company willing to add your solar setup to your regular insurance at no extra cost. 

Companies That Offer Solar Panel Insurance

Wondering where you’ll find the best deal on solar panel insurance? Well, there are many types of insurers!

Home Insurance Companies

One of the first places to contact is a home insurance company. Finding one that solely provides cover for the things in and on your home is a good bet!

These companies can have comprehensive plans, and claiming is usually straightforward. There’s little confusion since your contract will stipulate what is covered and what is not. If you already have home insurance, contact your insurer to find out if you can add your solar setups to your plan. 

General Insurance Companies

A general insurance company that covers just about anything is another option to consider. These companies are usually easy to get insurance with and can be really convenient! You could get your solar panels, inverter, and batteries covered in one place.

Solar Insurance Companies

Insurers specializing in solar system coverage typically have the best deals to offer. They only work with solar power-related insurance to provide an exclusive service. You can find these companies online or by enquiring at your nearest solar shop. They are easily recognizable by their names, which usually include the words ‘solar’ or ‘insurance.’ 

Is Solar Panel Insurance Worth Its Cost?

Solar panels are not cheap. Installing a system that powers your entire house can cost you thousands of dollars especially if you decide to get custom solar panels. You’d think there would be a way to protect your investment, but they usually lie out in the open. They are sitting ducks, waiting for some disaster to strike. 

The cells need access to direct sunlight, so you have no other choice than mounting them uncovered. Rooftops and front yards are generally popular solar panel locations. There is no protection against large ice balls during a hailstorm. Hail can cause significant damage to your panels. You may need to have them fixed or even replaced.

Theft is another example of the danger that your solar panels face. You can install electric fencing around your panels, but this doesn’t offer absolute protection against thieves. They could steal everything or damage your system trying.  Insurance doesn’t eliminate these risks, but it makes the load lighter when something does happen. The small amount you pay on insurance each month could save you thousands. Depending on the plan you choose, your insurance will pay out the cost to you or replace your solar panels should they get damaged or stolen. 

Before Closing The Deal on your Solar Insurance 

Insurance can cost you a few bucks each month but even still, you should make sure that you pay for quality coverage. Read through your contract multiple times and ask any questions you have before sealing the deal. The last thing you want is trouble when you’re trying to claim. While there are great startup insurers, choose a company that has reviews and is praised for good service. I hope this article helped you and answered those burning questions! If you have more on your mind or a solar insurance experience to share, pop it in the comments.


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