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Is Special Insurance Required For Solar Systems? A Question From Puyallup

After working the costs of installation and the potential savings of solar energy over time for your Puyallup home, there is one more factor to include in your cost analysis: insurance. Inevitable questions surrounding the issue of insurance will arise such as whether home owner’s insurance covers your panels, if you can add coverage, and what additional insurance you might need. These are all logical and shrewd questions that you should be asking before installing a solar system in your house.

Existing Insurance

The unfortunate truth is that many homeowner’s policies won’t cover solar panels, with the logic being that the additional structure presents an additional liability. Insurance companies have expressed concerns over the solar panels overheating or that installation hardware mounted on the home creates opportunities for water to leak in.

These concerns have not been shown to be based in fact, but many companies still use them as guidelines. There is also the point of view held by some companies that because solar panels increase the potential resale value of the home, the insurance premiums should be correspondingly higher. In some cases, policies have been canceled due to the perceived increase in risk.

The most important thing is to inquire with your company regarding your current policy. Ask directly if you will be reimbursed for damage to solar panels, if they will raise your premiums, cancel your policy, and any other questions you might have.

Other Options

If you discover that your policy won’t cover solar panels, you still have some options. First of all, you can see if you can amend your policy to include your planned solar panels. If not, see if you can get a separate policy specifically for solar panels, either with your current company or another. Note that this will almost certainly be an additional expense, so you will want to account for that when figuring out costs. Fortunately, some of the more enlightened insurance companies offer discounts of up to 5% for homes that use solar power, so that may help offset the cost.

The degree of difficulty and amount of expense you must endure to insure a solar system will depend a lot on your insurance company’s philosophy and the area in which you live. The important thing is to look into these questions first in order to avoid a risky or expensive situation later.

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