How does insurance work for solar?

Introduction: Protecting Your Solar Investment – More Than Just Panels on a Roof

Choosing to install a residential solar panel system is a significant financial decision, representing an investment that can range from $15,000 to over $30,000.[1, 2] This move not only enhances a home's value but also contributes to a cleaner energy future. Once installed, however, this valuable system becomes a permanent part of the home, exposed to the same risks as the roof it sits on. Protecting this investment is not an optional extra; it is a critical step for ensuring long-term financial security.

This guide serves to demystify the world of solar panel insurance. The good news for homeowners is that a standard homeowner's insurance policy is typically the starting point for coverage.[3, 4] However, this standard coverage often contains crucial gaps, specific exclusions, and requirements that can leave a homeowner underinsured if they are not properly informed. This report will break down everything a homeowner needs to know in simple, clear terms. The goal is to provide a clear action plan for discussions with insurers and solar installers, ensuring the system is adequately protected from the moment it is installed.

Chapter 1: The Foundation – How Your Homeowner's Insurance Sees Your Solar System

Understanding how a standard homeowner's policy treats a solar installation is the fundamental first step. The policy's structure and language dictate how coverage applies, and this can differ significantly based on where and how the panels are installed.

1.1. The First and Most Important Rule: Tell Your Insurance Company!

Before any other action is taken, a homeowner must notify their insurance provider that they are installing or have installed solar panels.[5, 6] This is not merely a suggestion; it is a requirement for maintaining proper coverage. Failing to inform the insurer means the policy has not been priced to include the added value and risk of the solar system, which can lead to insufficient coverage or even the denial of a claim in the event of damage.[6]

When contacting their agent, a homeowner should be prepared to provide key information, including the planned location of the panels (rooftop or ground-mounted), the total cost of the system, the type and number of panels being installed, and details about the installation contractor.[5, 7]

The timing of this conversation is critical. Ideally, it should occur before a homeowner signs a contract with a solar installer. This proactive approach allows the homeowner to discover any potential insurance-related obstacles ahead of time. For instance, an insurer might have specific exclusions for wind and hail damage that make the investment too risky, or they may not offer coverage at all for solar panels in a hurricane-prone region.[8, 9] Uncovering these issues early prevents a situation where a homeowner is locked into an installation contract for a system they cannot properly insure.

1.2. Rooftop Solar Panels: An Extension of Your Home

When solar panels are permanently mounted on a home's roof, insurance companies almost universally consider them a "permanent attachment" to the property, much like a deck or a built-in security system.[1, 10, 11]

As a result, these systems fall under the Dwelling Coverage section of a homeowner's policy, often referred to as "Coverage A".[8, 10, 12] This is the part of the policy that pays to repair or rebuild the physical structure of the house. This means the same covered events, or "perils," that apply to the home, such as fire or falling trees, will also apply to the solar panels.[5] This coverage typically extends to other system components that are physically attached to the house, such as inverters and wiring.[1, 2]

1.3. Ground-Mounted Systems: The "Other Structures" Complication

If solar panels are not attached to the house itself but are instead mounted on the ground or on a detached structure like a shed or a carport, they are treated differently by insurance policies. In these cases, coverage typically falls under the Other Structures Coverage portion of the policy, often called "Coverage B".[5, 10, 13]

This is where a significant potential pitfall emerges. By default, Other Structures coverage is often limited to a set percentage of the home's main dwelling coverage, with 10% being the most common limit.[10, 14, 15] This can create a coverage shortfall. For example, consider a home with $400,000 in dwelling coverage. The automatic limit for "other structures" would be 10%, or $40,000. If the homeowner installs a $30,000 ground-mounted solar array, this might seem adequate. However, if that same property also has a detached garage valued at $20,000, the total value of the "other structures" is now $50,000. In the event of a fire that destroys both the garage and the solar array, the homeowner would be $10,000 underinsured.

Therefore, homeowners with ground-mounted systems must perform a simple but crucial calculation: add the replacement value of the solar system to the value of all other detached structures on the property (sheds, fences, detached garages) and compare this total to their "Other Structures" coverage limit. If the total value exceeds the limit, they must explicitly request that their insurance agent increase this specific coverage amount.[15]

1.4. The Most Common Mistake: Underinsuring Your Home's New Value

A solar panel system is a major capital improvement that significantly increases a home's replacement cost.[4, 9] A typical residential system adds between $15,000 and $30,000 in value to the property.[1, 2, 16]

A homeowner's existing dwelling coverage limit may have been perfectly adequate for their pre-solar home, but it is likely insufficient to cover the cost of rebuilding the home and replacing the solar system after a total loss, such as a major fire.[3, 17] To avoid this dangerous gap in coverage, the homeowner must work with their agent to increase the policy's dwelling coverage limit to account for the full added value of the solar installation.[8, 10, 11] This necessary adjustment is the primary reason that insurance premiums typically increase after going solar.[1, 18, 19]

Table 1: Coverage at a Glance: Rooftop vs. Ground-Mounted Systems

Chapter 2: Reading the Fine Print – What's Covered and What's Not?

While a standard policy provides a foundation of protection, the specific details of what is covered and what is excluded are what truly determine a homeowner's financial risk. Understanding this fine print is arguably the most critical part of insuring a solar system.

2.1. Common Covered Perils: The "Good News" List

Most standard homeowner's insurance policies, often referred to as an "HO3" form, are written on an "open peril" basis. This means the policy covers damage from any cause except for those that are specifically listed as exclusions.[5] For solar panels, this generally includes protection against a list of common events [9, 10]:

• Fire and smoke, including from wildfires [9, 10, 12]
• Lightning strikes [2, 10, 19]
• Theft and Vandalism [6, 10, 19]
• Falling objects, such as tree limbs [6, 18, 19]
• Damage caused by aircraft or vehicles [10]
• The weight of ice and snow [15]

2.2. Critical Exclusions: The "Bad News" List You Must Read

The list of exclusions in a policy is where a homeowner's greatest financial vulnerabilities lie. These are the events for which the insurance company will not pay.

Wind and Hail – The #1 Problem Area Modern solar panels are built to be durable, but they are not indestructible. In response to increasing storm frequency and severity, many insurance companies, particularly in regions prone to severe weather, are now specifically excluding wind and hail damage for solar panels.[8, 9, 20] Alternatively, they may apply a separate and much higher deductible for these specific perils.[13, 21] This is the single most important question a homeowner should ask their agent: "Does my policy have a wind or hail exclusion, or a separate deductible, that applies to my solar panels?".[8, 22] In high-risk states like Florida, some insurers may even refuse to cover solar panels at all because of the hurricane risk.[9]

Flood and Earthquake Damage Standard homeowners policies almost universally exclude damage resulting from floods and earthquakes.[5, 9, 17] To be covered for these events, a homeowner must purchase separate, dedicated insurance policies. For those living in areas where these natural disasters are a known risk, securing this additional coverage is non-negotiable to protect both the home and the solar investment.

Faulty Installation and Roof Leaks If a solar installer performs a poor installation that later results in a roof leak, the homeowner's insurance policy will likely not cover the cost of repairing the roof or the solar panels themselves.[4, 6, 16] In this scenario, the financial responsibility falls on the installer and should be covered by their business liability insurance. The homeowner's policy, however, may cover the resulting water damage inside the home.[16] This can create a complicated claims situation, potentially requiring the homeowner to file claims with both their own insurer for the interior damage and the installer's insurer for the root cause.

Wear and Tear, Mechanical Breakdown, and Pests Insurance is designed to cover sudden and accidental losses, not the inevitable effects of time and use. A policy will not pay for panels that stop working due to age, normal efficiency degradation over time, or an internal mechanical failure.[2, 5, 9] These issues are intended to be covered by manufacturer warranties. Furthermore, damage caused by pests such as rodents, birds, or insects is also frequently excluded from coverage.[1]

2.3. Balance of System (BOS) Components: Inverters and Batteries

A solar installation is more than just panels; it includes critical components like inverters, which convert DC power to usable AC power, and potentially batteries for energy storage. Physical damage to these components from a covered peril, such as a fire or lightning strike, is typically included under the same Dwelling Coverage that protects the panels, provided they are attached to the home.[1, 2]

However, a standard homeowner's policy does not cover mechanical or electrical breakdown.[1, 23] If an inverter simply malfunctions and stops working on a clear, sunny day, this is not considered an insurable event. This represents a significant gap in protection. A homeowner might assume their "solar insurance" covers any failure of the system, but a breakdown is different from damage caused by an external peril.

To close this coverage gap, homeowners should inquire with their agent about adding an "Equipment Breakdown Coverage" endorsement to their policy.[1, 23, 24] This is a relatively inexpensive add-on that is specifically designed to cover the failure of home systems—including HVAC units, major appliances, and, crucially, solar inverters and other electrical components—due to an internal mechanical or electrical failure. It is a vital but often overlooked piece of a truly comprehensive protection plan.

Chapter 3: The Bottom Line – Understanding the Costs of Solar Insurance

Protecting a solar investment involves understanding not just the coverage, but also the direct financial impact on a homeowner's budget, from premium increases to out-of-pocket costs during a claim.

3.1. How Solar Panels Affect Your Insurance Premium

Installing solar panels will, in most cases, lead to an increase in a homeowner's insurance premium. This is a direct result of increasing the policy's coverage limit to account for the system's added value.[8, 12, 18]

The cost increase is often modest relative to the size of the investment being protected. Anecdotal evidence from homeowners suggests the annual increase can be as low as $13 to $100.[25] In a state with higher weather risk like Texas, adding a system valued between $15,000 and $40,000 might increase the annual premium by $40 to $150.[26]

However, the premium increase is not based on value alone; it is a function of risk. Two homeowners in different states could install identical $25,000 solar systems and see vastly different impacts on their insurance costs. A homeowner in a low-risk area like Arizona might see a minimal premium change. In contrast, a homeowner in a hurricane-prone state like Florida could face a much larger increase, or even be denied coverage entirely by some carriers.[9] The insurer is not just pricing the new $25,000 of property; they are pricing the statistical likelihood of having to pay a claim for that property. Therefore, homeowners in areas with high risks of hurricanes, tornadoes, hail, or wildfires must factor potentially higher insurance costs into their solar return-on-investment calculations.[27, 28]

3.2. Deductibles: What You Pay First

A deductible is the amount of money a homeowner must pay out-of-pocket on a claim before the insurance company's coverage begins.[3, 29] For solar panel claims, the type and amount of the deductible can have a major financial impact.

In many states, particularly those susceptible to severe weather, insurers have implemented a separate, higher deductible that applies specifically to damage from wind and hail.[26, 30] Unlike a standard deductible, which is usually a flat dollar amount (e.g., $1,000), a wind and hail deductible is often calculated as a percentage of the home's total insured value (dwelling coverage), typically ranging from 1% to 5%.[26, 30, 31]

The financial consequence of a percentage-based deductible can be surprising and significant. For example, a homeowner may have a policy with a standard $1,000 deductible and a 2% wind/hail deductible on a home insured for $500,000. If a hailstorm causes $15,000 of damage to their new solar panels, they might expect their out-of-pocket cost to be their standard $1,000 deductible. Instead, the wind/hail deductible applies. Their actual out-of-pocket cost would be 2% of $500,000, which is $10,000. The insurance company would only pay the remaining $5,000 of the repair cost. This is one of the most critical and frequently misunderstood aspects of modern homeowners insurance. Homeowners must know exactly what their wind and hail deductible is, as it can dramatically shift the financial risk of storm damage back onto their shoulders.

3.3. Replacement Cost Value (RCV) vs. Actual Cash Value (ACV): A Critical Distinction

Insurance policies reimburse for losses in one of two ways, and the difference is crucial for a major asset like a solar system.

• Replacement Cost Value (RCV): This type of coverage pays to repair or replace damaged property with new items of a similar kind and quality at today's prices, without a deduction for depreciation.[5, 32, 33]
• Actual Cash Value (ACV): This type of coverage pays the replacement cost minus a deduction for depreciation due to the item's age and wear and tear.[32, 34]

Consider a 10-year-old solar system, which originally cost $25,000, that is destroyed in a covered fire.

• With an RCV policy, the insurer would pay the full cost to install a brand new, comparable $25,000 system (minus the deductible).
• With an ACV policy, the insurer might determine that the 10-year-old system had depreciated by 40%. They would therefore only pay out $15,000, leaving the homeowner with a $10,000 shortfall to replace their system.

An ACV policy may come with a lower annual premium, but this can be a false economy. For a long-term asset like a home and solar system, an RCV policy is essential to ensure a homeowner can be made financially "whole" after a major loss.[33, 34] For this reason, most mortgage lenders mandate that homeowners carry RCV coverage on their property.[35]

Chapter 4: To Own or To Lease? A Critical Fork in the Insurance Road

The question of whether to buy or lease a solar system has profound implications for insurance, as it determines who holds the primary responsibility for protecting the equipment.

4.1. If You Own Your System (Cash Purchase or Loan)

When a homeowner owns their solar system outright, either through a cash purchase or a loan, the responsibility to insure it is entirely theirs.[2, 5, 25] They must be the one to contact their insurance agent, add the system to their homeowner's policy, ensure the coverage limits are adjusted appropriately, and handle any potential claims directly with their insurer.[10, 11] This model is the most straightforward from an insurance perspective because the homeowner has direct control over the coverage and the claims process.

4.2. If You Lease Your System or Have a Power Purchase Agreement (PPA)

In most solar lease or Power Purchase Agreement (PPA) arrangements, the homeowner does not own the equipment on their roof; the solar company retains ownership. Consequently, the leasing company is typically responsible for insuring and maintaining the panels.[3, 4, 12, 19] This can appear to be a significant benefit, as it seemingly removes the insurance burden and cost from the homeowner.[36]

However, homeowners should operate under a "trust but verify" mandate. It is a mistake to simply assume the leasing company's insurance coverage is adequate. A homeowner could find themselves in a difficult situation if a storm damages the panels and the leasing company is slow to act, or if their insurance policy has a large deductible that delays repairs. This could leave the homeowner with a damaged roof while waiting for the solar company to act.

To prevent this, a homeowner must review the lease or PPA contract meticulously and request a copy of the solar company's certificate of insurance.[5, 7, 11] It is also important to be aware that some leasing companies may contractually require the homeowner to carry insurance on the panels, even though the company owns them.[8, 9] The safest course of action is to provide a copy of the lease agreement to one's own insurance agent for review to identify any potential conflicts, gaps, or unexpected liabilities.[7]

Table 2: Owned vs. Leased Systems – Who is Responsible for What?

Chapter 5: Filling the Gaps – Riders, Endorsements, and Standalone Policies

Sometimes, a standard homeowner's policy is not sufficient to fully protect a solar investment. In these cases, homeowners have options to purchase additional or more specialized coverage.

5.1. When is Your Standard Policy Not Enough?

A homeowner may need to look beyond their standard policy if they encounter certain situations:

• Their insurer explicitly excludes a critical peril, most commonly wind or hail.[1, 8]
• They have a large or expensive ground-mounted system whose value, when combined with other detached structures, exceeds the automatic 10% "Other Structures" coverage limit.[10]
• They desire coverage for risks that are never included in a standard policy, such as mechanical breakdown of an inverter or financial loss due to the system underperforming.[14, 17, 23]

5.2. Option 1: Riders and Endorsements

The most common way to enhance an existing policy is through a rider or an endorsement. These are simply add-ons that modify or amend the terms of the base homeowner's policy.[10, 13] This is the typical method for adding back coverage that has been excluded. For example, if a policy excludes wind damage for solar panels, the homeowner might be able to purchase a "Windstorm and Hail Coverage for Solar Panels" endorsement.[37] Similarly, to protect against inverter failure, they can add an "Equipment Breakdown Coverage" endorsement.[1] This approach is often the most convenient, as it keeps all coverage consolidated with one insurance company and on a single bill.[38]

5.3. Option 2: Standalone Solar Insurance Policies

A standalone policy is a completely separate insurance plan purchased from a specialty insurer that covers only the solar system.[10, 14, 18] These policies can offer more comprehensive and specialized protection than a standard homeowner's policy. For instance, a standalone policy might cover risks that a homeowner's policy never would, such as damage resulting from faulty installation workmanship or financial losses if the system fails to produce its expected amount of energy.[17]

This option becomes particularly crucial when a primary home insurer is unwilling to provide coverage at all. For example, a homeowner in a high-risk hurricane zone might be told by their insurer that they will not renew the home's policy if solar panels are installed. In this scenario, a standalone policy is the only viable path forward. The homeowner can maintain their existing home insurance policy and purchase a separate policy from a specialty solar insurer to cover the panels. While this approach is more complex and potentially more expensive, it provides a solution for properties deemed "uninsurable" by standard carriers and can also be a cost-effective way to insure large ground-mounted systems.[17]

Chapter 6: Your Shield Against Liability – Utility Requirements and Umbrella Policies

Beyond protecting the physical equipment, homeowners with solar panels often face additional insurance requirements related to personal liability.

6.1. Net Metering and the Utility Company's Risk

Many homeowners with solar systems participate in a program called "net metering," which allows them to sell excess electricity they generate back to the local utility grid.[9, 39] This interconnection, while beneficial, creates a theoretical risk for the utility company. If a homeowner's solar system were to malfunction, it could potentially feed improper voltage into the grid, damaging utility equipment or even injuring a utility worker repairing a line.[9, 40]

To shield themselves from this potential liability, many utility companies and state regulations now require homeowners with grid-tied systems to carry a specified amount of personal liability insurance as a condition of the interconnection agreement.[9, 15, 39]

6.2. The High Cost of Liability: Meeting the $1 Million Requirement

The amount of liability coverage required by utilities can be substantial, often ranging from $300,000 to as high as $1 million per occurrence.[9, 12, 41] This presents a problem, as a standard homeowner's insurance policy typically includes only $100,000 to $300,000 in liability coverage by default, which is not enough to meet the utility's requirement.[9]

When a utility requires liability coverage that exceeds the maximum available under a standard home policy, the homeowner must secure additional protection. The solution is to purchase a Personal Umbrella Policy. This is a separate insurance policy that provides an additional layer of liability coverage, typically in increments of $1 million, on top of the existing limits of a homeowner's and auto insurance policies.[1, 9, 15] An umbrella policy is a relatively affordable way to meet the utility's high-limit requirement, with costs often running a few hundred dollars per year.[15, 40] This potential added expense should be factored into the solar system's total cost of ownership.

Chapter 7: When Disaster Strikes – A Homeowner's Guide to Filing a Claim

Experiencing damage to a home and a valuable solar system is stressful. Knowing the correct steps to take can make the claims process smoother and help ensure a fair outcome.

7.1. Your First Steps After Damage Occurs

1. Prioritize Safety: Damaged solar panels can pose serious hazards, including exposed live electrical wiring or the release of toxic materials like cadmium and lead.[21, 42] Homeowners should never touch or attempt to repair damaged panels themselves. The first call should be to a qualified solar professional to safely assess and handle the equipment.
2. Document Everything: Evidence is crucial for a successful claim. Immediately after ensuring the area is safe, the homeowner should take extensive, clear photos and videos of the damage from multiple angles.[1, 43, 44] They should also write down the date, time, and a detailed description of what happened.
3. Mitigate Further Damage: An insurance policy requires the policyholder to take reasonable steps to prevent the damage from getting worse. For example, if a panel is torn from the roof, leaving a hole, the homeowner may need to cover the opening with a tarp to prevent rainwater from causing further damage inside the home.[1] Receipts for any materials purchased for these temporary repairs should be kept for reimbursement.
4. Contact Your Insurer Promptly: The homeowner should report the claim to their insurance company as soon as possible, either by phone or through the company's website or mobile app. Most policies contain clauses that specify a time limit for reporting claims.[6, 43, 45]

7.2. Working with the Insurance Adjuster

After a claim is filed, the insurance company will assign an adjuster to inspect the damage and estimate the cost of repairs.[6] The homeowner should be prepared for this visit with all their documentation, including photos, a written account of the event, and a copy of the solar system purchase agreement or lease.[1]

It is important for homeowners to understand that the insurance company's adjuster works for the insurer, not for them. Their primary role is to assess the loss and close the claim in accordance with the policy's terms for the lowest reasonable cost. An adjuster's initial estimate may not account for all the complexities of a solar claim, such as the cost to remove and then reinstall undamaged panels to facilitate a roof repair underneath, or the difficulty of diagnosing hidden electrical damage to inverters and wiring.[43] For complex or high-value claims, homeowners have the option to hire their own independent expert, known as a public adjuster, who works on their behalf to document the loss and negotiate with the insurance company to ensure a fair and complete settlement.[43]

7.3. Understanding the Payout

Once the claim is approved, the insurer will issue a payment based on the policy's terms—either Replacement Cost Value (RCV) or Actual Cash Value (ACV)—minus the applicable deductible.[6] If the policy is written on an RCV basis, the insurer often uses a two-payment process. They may initially pay the Actual Cash Value of the damaged property. The remaining amount, known as the "recoverable depreciation," is released only after the homeowner has completed the repairs and submitted the final invoices and receipts to the insurance company.[32]

Chapter 8: A Partnership for Protection – How Warranties and Insurance Work Together

A common point of confusion for homeowners is the difference between an insurance policy and a warranty. They are not interchangeable; they are two distinct but complementary tools that work together to provide comprehensive protection.

8.1. What Your Warranties Cover: Defects and Performance

A new solar system comes with multiple warranties provided by both the equipment manufacturer and the installer.[17, 46] These typically include:

• Product/Equipment Warranty (10-25 years): This warranty covers defects in the physical components of the system, such as the panels, inverters, and racking. If a panel fails due to a manufacturing flaw, this warranty applies.[17, 46, 47]
• Performance Warranty (25+ years): This is a guarantee from the manufacturer that the panels will continue to produce a certain percentage of their original rated power (e.g., 80% or more) after a specified number of years.[17, 46, 48]
• Workmanship Warranty (5-25 years): This warranty is provided by the solar installer and covers issues related to the quality of the installation itself. If the system fails or the roof leaks because of improper wiring or mounting, this warranty should cover the repairs.[19, 46, 49]

8.2. What Your Insurance Covers: Accidents and "Acts of God"

Warranties are designed to protect against product failure. They explicitly do not cover damage from external events.[6, 50, 51] Damage from hail, fire, windstorms, falling trees, or theft are not warranty issues. These events, sometimes referred to as "Acts of God," are precisely what insurance is designed to cover.

The relationship between the two can be seen as a perfect hand-off. If a solar panel simply stops working for no apparent external reason, it is a warranty claim. If that same panel stops working because a tree branch fell and shattered it, it is an insurance claim. A warranty protects the homeowner from the product being faulty, while insurance protects the homeowner from the outside world damaging their non-faulty product. A homeowner needs both for a complete safety net.[5, 50]

8.3. The Bankruptcy Risk: When Warranties Vanish

The solar industry can be volatile, and it is not uncommon for manufacturers or installation companies to go out of business.[5, 52] If the company that issued a warranty no longer exists, that warranty becomes worthless.[5] This elevates the importance of selecting a financially stable and reputable installer and manufacturer from the outset. It also underscores the value of insurance as the more durable form of protection against external risks and highlights the potential benefit of specialized insurance products, such as standalone policies that might cover gaps left by a defunct company's warranty.[17, 52]

Chapter 9: The First Line of Defense: Vetting Your Solar Installer's Insurance

A homeowner's insurance is for protecting their own property. The installer's insurance is for protecting the homeowner from the installer's mistakes. Performing due diligence on a contractor's insurance is a critical, non-negotiable step.

9.1. Why Your Installer's Insurance Matters to You

If a solar installer causes damage to a home during the installation process—for example, by starting an electrical fire, damaging the roof structure, or dropping a panel on a car—their business insurance, not the homeowner's policy, should be the one to pay for the damages.[11, 16] If a homeowner does file a claim with their own insurer for damage caused by a contractor, the insurance company will likely seek reimbursement from the contractor's insurer through a process called subrogation.[11] If the contractor is uninsured or underinsured, this can turn into a complex legal dispute that entangles the homeowner.

9.2. The Installer's Insurance Checklist: What to Ask For

Before signing any contract, a homeowner should require the solar installer to provide a Certificate of Insurance that serves as proof of their coverage. This certificate should verify, at a minimum, the following policies:

• General Liability Insurance: This is the most critical coverage, as it protects against third-party property damage and bodily injury. Recommended limits are at least $1 million per occurrence and a $2 million aggregate limit.[53, 54]
• Workers' Compensation: This policy covers the installer's employees if they are injured while working on the property. It is required by law in most states and protects the homeowner from being sued if a worker is hurt on the job.[53, 55]
• Commercial Auto Insurance: This covers the company's work vehicles while they are on the homeowner's property.[54, 56]

A key detail to look for within the General Liability policy is "Products-Completed Operations" coverage.[54] A standard general liability policy might only cover damage that happens while the work is actively in progress. Completed Operations coverage extends the installer's liability to cover property damage or injury that occurs after they have finished the job but is a result of their completed work, such as a fire caused by faulty wiring a week after the installation. The presence of this coverage is a strong indicator of a professional and well-insured contractor.

Conclusion: Your Action Plan for Comprehensive Solar Panel Protection

Protecting a residential solar investment is an active process that involves a partnership between the homeowner, their insurance provider, the solar installer, and the equipment manufacturer. A standard homeowner's policy provides the foundation for coverage, but a homeowner must be proactive to ensure that this coverage is complete and that there are no dangerous gaps. By understanding the nuances of dwelling versus other structures coverage, reading the policy's fine print on exclusions, adjusting coverage limits, and vetting all parties involved, homeowners can secure their clean energy investment for decades to come.

Final Checklist: Your Insurance To-Do List

Before Signing with an Installer:

• <input disabled="" type="checkbox"> Call your insurance agent to confirm they will cover solar panels on the property.
• <input disabled="" type="checkbox"> Ask the agent specifically about any exclusions for wind and hail, and inquire about separate deductibles for these perils.
• <input disabled="" type="checkbox"> Discuss with the agent how adding the system will affect the premium and determine the appropriate new coverage limit for the home.
• <input disabled="" type="checkbox"> Require the installer to provide a Certificate of Insurance showing adequate General Liability and Workers' Compensation coverage.

After Installation:

• <input disabled="" type="checkbox"> Notify the insurance agent that the installation is complete.
• <input disabled="" type="checkbox"> Formally update the policy to the new, higher coverage limit.
• <input disabled="" type="checkbox"> Request and save a copy of the updated policy declarations page that reflects the new coverage.
• <input disabled="" type="checkbox"> If required by the utility company for net metering, secure a personal umbrella policy.

Annually:

• <input disabled="" type="checkbox"> Review the home's replacement cost and coverage limits with the insurance agent to ensure they remain adequate.
• <input disabled="" type="checkbox"> Keep all essential documents—including warranties, the insurance policy, and the installation contract—in a safe and accessible location.