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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!

Our Guide to Florida Solar Insurance for Tier 2 Solar Systems

If you are planning to install solar panels in Central Florida with a Tier 2 system, you must have proof of Tier 2 insurance. This insurance policy, known as a Personal Liability Policy or PLP, must have coverage of at least $1 million.

This may come as a surprise to many Florida residents who are in the beginning stages of their solar installation, but it is an important requirement to be aware of.

Our pros at Solar Bear Orlando explain what you need to know!

What is the Tier System?

Utilities separate solar systems into tiers, categorized by Kilowatt (kW) system size. Although the exact terms will vary by company, the tiers that are generally recognized throughout Florida include:

• Tier 1: Systems less than or equal to 10 kW
• Tier 2: Larger than 10 kW up to 100 kW
• Tier 3: Larger 100kW

Tier 2 Utility Connections

Tier 2 solar systems start at 11,765 watts and require a $400 one-time interconnection fee and $1 million of personal liability insurance whether on your homeowner’s insurance policy or as an umbrella policy.

Each utility company requires a specific type of disconnect switch that they have access to, and it generally must be near the utility meter. The interconnection of a Tier 2 system is the same, but some additional documentation is required.

The idea behind these Tier 2 requirements goes back to when solar equipment was new and could potentially back-feed power to the grid, endangering utility workers. These requirements are outdated and unnecessary, but they are part of the Net Metering law’s tier system and part of your utility company’s approved interconnection agreement.

Another factor to consider is how much power the utility company can accept from your system. They need to ensure that their transformers and transmission equipment can handle the amount of solar power produced by your system and other net metering customers in the area. Tier 2 interconnections require a bit more on the utility company’s part, justifying the extra costs to ensure the stability of the grid for all users.

Tier 2 Insurance Requirements

Many new solar customers are not aware of the exact terms of their utility company’s Interconnection Agreement. This agreement states that you must have sufficient liability insurance for your system.

Your insurance company might be unfamiliar with this requirement, and confusion can arise if you ask your insurance agent to “insure my solar panels for $1 million.” When discussing insurance for your Tier 2 system, communicate clearly that you need a Personal Liability Policy of $1 million and you should have no problems.

What Kind of Insurance Do I Need?

If you want to install a Tier 2-sized system, your utility company will require proof of a Personal Liability Policy that provides at least $1 million in coverage.

You will also need to provide a financial statement and documentation that proves the value and size of your solar system and insurance.

Why Do I Need Tier 2 Solar Insurance?

Your utility company wants to protect itself from liability if a customer’s solar system causes injury or death.

These insurance demands are quite controversial, and there have been several disputes throughout Florida about the need for these Tiered solar insurance demands, but unfortunately, Florida homeowners must comply.

Is PLP Insurance Expensive?

Thankfully, most PLPs are affordable at just around $14 a month which allows homeowners to enjoy considerable savings on their electric bills, even with the insurance needed for their Tier 2 system.

Central Florida Solar

Solar Bear has been a trusted guide for homeowners wishing to install solar for years and is an invaluable resource if you are looking to install a Tier 2 solar system.

Our personal approach to each customer’s unique situation, combined with an extensive understanding of the industry, make Solar Bear an ideal partner for anyone considering solar energy.

With competitive pricing and superior service, Solar Bear is the go-to provider for solar systems in Central Florida! Contact us today for a quote at (727) 471-7442!

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!

Solar Tier Insurance Requirements in Florida

Ready to make the switch to a cleaner, more efficient future by investing in solar panels for your Florida home? Any Florida homeowner who wants to install solar panels must hold an appropriate solar insurance policy. Currently, Florida utility companies separate solar systems into distinct tiers according to system size, measured in Kilowatts (kW). Here’s an introduction to the various tier requirements for solar in Florida, and the insurance requirements that accompany them.

Introduction to Solar Tiers

While the exact terms of your utility company’s Interconnection Agreement vary depending on the company you work with, there are three tiers that are generally recognized throughout Florida:

• Tier 1: Systems less than or equal to 10 kW.
• Tier 2: Systems larger than 10kW, up to 100kW.
• Tier 3: Systems larger than 100kW.

Some homeowners can completely cover their energy needs with a Tier 1 system, but larger systems in Tier 2 are becoming increasingly common. Tier 2 systems need proof of Tier 2 insurance, which includes a Personal Liability Policy (PLP) that provides coverage of at least $1 million. You’ll also need to provide supporting documentation—including a financial statement—that outlines the value and size of your solar system and the insurance policy you hold.

What Is a PLP?

A PLP is commonly referred to as an “umbrella policy.” It provides homeowners with extra coverage that reaches beyond their typical home and auto insurance liability coverage limits. While there is no reason to believe your solar system is dangerous, a PLP covers damages if someone is injured or killed by the system.

Why Do I Need Solar Insurance?

While solar energy systems are incredibly safe, utility companies are looking to protect themselves from any risk. They require homeowners to hold a PLP to protect themselves from liability should a customer’s solar system cause injury or death. While there is some discussion and dispute throughout Florida about whether there’s even a need for tier solar insurance, for now, homeowners must comply with regulations and requirements—you must hold at least a $1 million PLP, or you forfeit your source of electricity.

How Affordable Is PLP Insurance?

Luckily, it doesn’t cost much to hold a valid PLP for Tier 2 solar insurance. Most policies are around $15 per month, and you’ll more than make up for the cost on your electricity bills. Plus, there is a big boost in your property value along with other benefits like Federal Tax Credits.

Make the Switch to Solar Today!

Still have questions about solar insurance? The solar experts at Solar Bear – Tampa are standing by to help! We’re ready to help you make the switch to solar, helping you save money on your energy bills and increase your property value in the process! Call us today at (727) 471-7442 to schedule your free estimate.