Most homeowners insurance policies cover solar panels automatically as part of your home’s structure — but the details matter significantly. Solar panels typically add $0–$30/month to homeowners insurance premiums, while providing coverage against wind, hail, fire, and theft. Understanding how your policy covers solar, what it doesn’t cover, and when to consider supplemental coverage protects a $20,000–$35,000 investment that you’ll rely on for 25+ years.
Does Homeowners Insurance Cover Solar Panels?
In most cases, yes — standard homeowners insurance policies cover rooftop solar panels under the dwelling coverage (Coverage A) section. Since panels are permanently attached to the home’s structure, insurers treat them like any other permanent fixture, similar to a new roof or addition.
However, “covered” doesn’t mean “fully covered without any action required.” You may need to:
Update your coverage amount: Most policies cover your dwelling for its replacement cost. Adding $25,000 in solar panels increases your home’s replacement cost by that amount. If you don’t increase your dwelling coverage limit, you may be underinsured in a total loss scenario, and the solar system may not be fully reimbursable.
Notify your insurer: Many policies require you to notify your insurer when making significant changes to your home’s value. Failure to report solar installation could technically void coverage on the panels in a claim, though this is rare in practice. A quick call when your system is activated is the safest approach.
Review the policy language: Some policies explicitly list exclusions for solar equipment or place sub-limits on it. Check your declarations page and policy for any mention of solar panels or renewable energy equipment.
What Does Homeowners Insurance Cover for Solar Panels?
Standard homeowners insurance covers solar panels against the same perils it covers the rest of your home:
Hail damage: Covered under standard “open perils” policies. Solar panels are tested to IEC 61215 hail resistance standards (typically passing 25mm hailstone impacts), but large hail events (golf ball size and above, 45mm+) can crack glass covers. Insurance pays for panel replacement in hail events that would damage the rest of the home.
Wind and storm damage: Panels that blow off the roof or are damaged by falling trees/debris are typically covered. This is one of the more common claims in storm-prone states like Texas and Florida.
Fire: Covered. Solar-related fires (which occur at a rate of roughly 1 in 10,000 residential installations annually) are treated as fire damage. Coverage includes the panels, inverter, mounting hardware, and associated damage to the structure.
Theft: Ground-mounted panels are a theft risk; rooftop panels less so due to installation difficulty. Standard policies cover theft of panels under personal property or dwelling coverage.
Vandalism: Covered under standard “open perils” policies.
What Homeowners Insurance Does NOT Cover for Solar Panels
Equipment breakdown / mechanical failure: If your inverter fails due to a manufacturing defect, or panels underperform due to degradation, homeowners insurance doesn’t apply. These situations are handled by the manufacturer’s equipment warranty (10–25 years for panels, 10–15 years for string inverters, 25 years for microinverters).
Gradual degradation: Normal wear and performance decline (the 0.4–0.5%/year typical degradation rate) is not an insurable event. It’s expected and covered by the manufacturer’s linear performance warranty, not your insurance policy.
Installer workmanship: Poor installation that leads to roof leaks, wiring problems, or system inefficiency is the contractor’s liability, not your insurer’s. This is covered by the installer’s workmanship warranty (typically 5–10 years) and their general liability insurance.
Lost production: If a storm damages your panels and they’re out of service for 3 months during repairs, you don’t receive any insurance payment for the lost solar production during that period. Some specialized solar insurance policies offer lost production coverage; standard homeowners policies do not.
Flooding: Standard homeowners policies exclude flood damage. A hurricane that floods your home would typically not cover panel damage from floodwaters (though wind damage would be covered). NFIP flood policies also generally don’t cover solar panels. Homes in flood zones should investigate specialized flood coverage for solar.
How Much Does Solar Insurance Cost?
Most homeowners see their annual premiums increase by $0 to $360/year after installing solar, depending on:
Your current insurer and policy: Some insurers include solar at no additional premium if you notify them and update your coverage amount. Others charge based on the added replacement value.
System value and coverage increase: Adding $25,000 to your dwelling coverage might increase premiums by $75–$250/year at typical residential insurance rates of 0.5–1.0% of dwelling coverage value.
Your state and insurer’s view of risk: Insurers in hail-prone states (Oklahoma, Kansas, Nebraska, Colorado) may charge more for homes with solar, particularly if rooftop panels represent a larger claim risk in their loss models.
Specialty solar insurance: Standalone solar insurance policies from companies like PURE, Kin, or specialty solar insurers can cost $100–$600/year and offer broader coverage including lost production, equipment breakdown, and guaranteed replacement cost coverage. This is most relevant for larger systems ($50,000+) or homeowners whose primary insurer provides inadequate coverage.
Solar Insurance for Leased Systems
If you have a solar lease or PPA rather than an owned system, insurance works differently. The solar company (Sunrun, Tesla, SunPower, etc.) owns the panels and is responsible for insuring them through their commercial policy. As the homeowner, you’re typically required by the lease agreement to:
Maintain homeowners insurance on the property itself (the installer’s panels are covered under their commercial policy), notify the installer promptly if panels are damaged so they can handle replacement under their commercial coverage, and not remove or damage the panels (which you don’t own).
One important note: the installer’s commercial insurance covers the panels themselves, but any damage the panel installation causes to your roof (a somewhat common leaky flashing scenario) is typically the installer’s liability to repair, not your insurer’s. Keep documentation of your roof’s condition before installation begins.
Steps to Properly Insure Your Solar Panels
When your system is installed and activated, take these steps:
1. Contact your insurer before or immediately after installation. Provide the system details (brand, size in kW, replacement value from your installer’s quote) and ask explicitly whether solar panels are covered under your current policy and if you need to update your coverage limit.
2. Update your dwelling coverage limit. Add the full replacement cost of your solar system to your Coverage A limit. If your home was previously insured for $400,000 and you added a $25,000 system, update your limit to $425,000.
3. Confirm coverage in writing. Request written confirmation from your insurer that solar panels are covered under your policy. This protects you if there’s a coverage dispute during a future claim.
4. Document your installation. Keep copies of the system design documents, equipment specifications, installer invoices, and photos of the completed installation. This documentation is essential if you ever file a claim.
5. Review annually. Insurance costs and coverage options change. When you renew your policy each year, reconfirm solar coverage is in place.
Frequently Asked Questions
Will solar panels raise my homeowners insurance premium?
Usually slightly — most homeowners see premium increases of $0–$30/month after adding solar. The increase comes from raising your dwelling coverage limit to account for the added replacement value of the system. Some insurers include solar at no additional charge if you notify them; others charge a modest surcharge for the increased coverage. The premium increase is typically far smaller than your monthly solar savings.
Do I need special insurance for solar panels?
For most homeowners with standard residential systems ($15,000–$40,000 in value), standard homeowners insurance with an updated coverage limit is sufficient. Specialty solar insurance makes more sense for very large systems, ground-mounted arrays in high-theft areas, or homeowners who want lost production coverage that standard policies don’t include.
What if my insurer won’t cover solar panels?
Some older policies or less common insurers may not explicitly cover solar panels or may exclude them. If your insurer won’t provide clear written coverage confirmation, consider switching to an insurer that explicitly covers residential solar (most major carriers including State Farm, Allstate, USAA, and Travelers cover solar panels). Getting quotes from 2–3 insurers when you install solar is worth the time.
Summing Up
Solar panels are almost always covered under standard homeowners insurance as part of your home’s dwelling structure, but you need to notify your insurer, update your coverage limit to reflect the added value, and confirm coverage in writing. Premium increases are modest — typically $10–$30/month — and small relative to solar savings. For owned systems, this combination of manufacturer warranties (panels 25 years, inverters 10–25 years) and homeowners insurance provides comprehensive protection for your investment. For a free solar quote with a full walkthrough of the process including insurance considerations, call (855) 427-0058 or visit us.solarpanelsnetwork.com.
Updated