Do I Have to Tell My Insurance Company I Have Solar Panels?

Solar panels are an excellent investment for your home, especially in a sunny place like Tampa. After all, what’s better than saving on your monthly energy bills by using clean, free energy from the sun? As with any great investment, though, you’ll want to protect it by carrying insurance. Every homeowner switching to solar should notify their insurance company that they’re making the change. The good news is that you may even have coverage under your current homeowners policy. Read on to learn more about how solar panels can affect your insurance.

Reach Out to Your Insurance Company About Solar Panels

If you’ve made the wise decision to invest in solar panels for your home, you should reach out to your insurance company as soon as possible. They can re-rate your policy and determine whether you need additional coverage, and your agent will be able to offer you the appropriate products that will protect your investment and shield you from any liability associated with them.

Holding the right insurance policy for your solar investment isn’t just about protecting you and your finances—it’s the law. Anyone in Florida looking to switch to solar must have proof of insurance that matches the tier level of the solar panels that will be installed. For most Florida homeowners, that means holding Tier 2 insurance. This insurance policy is also called a PLP, or a Personal Liability Policy, and it must provide coverage of at least $1 million.

In some cases, homeowners won’t need to adjust or increase their coverage when switching to solar—it all depends on your insurer and your homeowners policy rules, as well as what type of system you’re installing. If your system doesn’t attach to your home’s roof—including ground-mounted or wall-mounted panels—you may need a separate policy. Your insurance agent can point you in the right direction and help you choose the coverage that works best for you and your situation.

Tier 2 Solar Insurance Protects Utility Companies

While solar panels can be installed, maintained, and used with very little risk, utility companies still want to shield themselves from liability. Since most solar systems installed today are Tier 2 systems (larger than 10 kilowatts up to 100 kilowatts), homeowners must hold a Tier 2 insurance policy.

Tier 2 insurance protects utility companies from liability if a customer’s solar system causes injury or death. All homeowners must obtain the $1 million (or higher) PLP or forfeit their source of electricity. Luckily, many PLPs only cost around $15 per month—a small price to pay compared to the savings you’ll enjoy on your monthly energy bills.

Switching to Solar Is Easier Than You Might Think

Upgrading to solar energy systems saves you money on your monthly electric bills and boosts your property value, and making the switch is easier than you might think. By reaching out to your insurance provider, you can select the policy that’s right for you and get one step closer to enjoying a clean, affordable, sustainable source of energy. Ready to get started? Reach out to the solar experts at Solar Bear Tampa today at (727) 471-7442 to schedule your consultation!