Will My Homeowners Insurance Go Up If I Get Solar?

As the cost of solar power continues to drop, many homeowners in Central Florida are considering converting to solar energy. Before making the switch, it’s essential to consider how a solar installation may affect your homeowner’s insurance coverage.

Will your homeowner’s insurance go up if you get solar? We’ll discuss the factors that may lead to higher premiums and explore ways you can save on your insurance while still enjoying the benefits of solar power.

Homeowners Insurance and Solar Panels

Your home insurance policy will likely cover your solar panel installation. If your solar panel system is connected to your home, they are covered under the dwelling portion of your policy. The caveat? You will only receive coverage if a peril like a storm damages your panels.

Covered perils include:

  • Hail
  • Fire damage
  • Storm damage

Unfortunately, your solar panels will not be covered for wear and tear, earthquakes, or flooding.

Most insurance companies consider adding solar panels to your home a favorable factor when calculating premiums. This is because solar energy systems typically reduce the risk of damage to the home due to weather events or other occurrences. In turn, this reduces the chances that an insurance company will have to pay out a claim related to a damaged roof or other parts of the home due to solar equipment failure.

In addition, most insurance carriers offer discounts for those who install solar panel systems on their homes – often up to 12%. However, it is important to understand that these savings may vary based on each individual policy and provider.

Do Solar Panels Affect Insurance Premiums?

The answer ultimately depends on the individual insurance company and policy you have. However, adding a solar panel system to your home should not automatically mean an increase in your premium or deductible. Your insurer may ask for information about the system and require certain safety measures be taken before allowing you to install it. However, most insurers recognize the value that solar energy can provide in terms of energy efficiency and cost savings over time.

There are situations where the installation of solar panels could increase the price of your homeowners’ insurance policy. This increase is due in part to the enhanced value that solar panels give to your home.

Insurance companies typically rate their premiums according to a home’s value to adequately cover the home in the event of a covered accident. This is why you may have to increase your coverage limits on your policy to match the increase in your home’s value.

Note: if you decide to install solar panels at any point during your current policy period, be sure to contact your insurer right away and let them know about the change.

What About Separate Policies?

You may need to add coverage or purchase a separate policy to cover your solar panels in some situations. For example, you will need a separate policy if your solar panels do not attach to your home’s roof. This includes ground-mounted panels or carport-mounted panels.

Solar panels that directly attach to your home will have insurance coverage under your homeowners’ policy. Every insurer handles policies differently, so make sure you contact your insurance agent to determine the best coverage for your needs.

Should You Increase Your Coverage After a Solar Installation?

The answer to this question will depend largely on your insurer and homeowners’ policy rules. It is best to increase your coverage to ensure that it adequately protects your solar panels in the event of an accident.

Solar Solutions: Igniting a Bright Future

Going solar in Central Florida is a great way to save money, reduce environmental impact, and contribute to a sustainable future. With plenty of sunshine and incentives from the government, it’s a perfect place to install panels and start making an impact.

Homeowners don’t have to worry about unknowns or risks since companies like Solar Bear can provide trustworthy guidance every step of the way. So, why wait? Take advantage of all that Central Florida has to offer and join the solar revolution today!

Call Solar Bear Orlando for a solar installation quote in Central Florida today; (727) 471-7442!