Do I Need Insurance on My Solar Array? - Eagle Point Solar
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Do I Need Insurance on My Solar Array?

Many families across the county are investing in home improvement projects and solar continues to be a growing addition to these home upgrades. Installing a residential solar array offers a variety of financial and environmental benefits, making solar an attractive addition for homeowners. A quality solar array should be viewed as an investment in providing clean, affordable and sustainable energy for the household for years to come. A properly designed and installed solar array will meet the household energy needs and provide worry-free operation for decades. Solar array insurance is a great way to protect your investment and give you peace of mind in the case something should happen.

 

Do I Need to Add Additional Coverage?

Electrician connecting solar panels

It is important to check with your insurance company to confirm your solar array coverage prior to your purchase. This will ensure you understand your coverage obligations and options. Don’t forget to ask your insurance agent about any changes which may affect your deductible, claim limit, and coverage limit for your new solar array. Most major home insurance carriers will include coverage for a solar array under your existing homeowner’s insurance policy because a solar array is considered a permanent attachment to the property or accessory structure. Typically, adding a solar array will not require a policy add-on or change to your existing plan. However, an insurance rider may be required by your insurance company depending upon the cost of the system and the amount of coverage you desire. An increase in your premium may be presented by your agent, but often this amount is minimal and easily absorbed by the increase in monthly electric bill savings. 

 

Should I Raise Coverage Limits?

summer rain with hail falls on the roof of slate

It is important to keep your insurance agent updated on any significant home improvements like the addition of a solar array. This will allow you the opportunity to consider raising your coverage limit because of the increased property value which the solar array provides. The U.S. Department of Energy found that a solar energy system increases a home’s property value by $20 for every $1 in utility savings per year. Take some time to understand what your homeowner policy covers and what it does not. This research will ensure you are getting the most out of your money and adequately protecting your investment.

 

When Would I Use Insurance?

Broken Trees and electric wires covering residential street

Insurance covering your solar array can typically be claimed for damage caused by excessive winds, large hail, lightning strike, vandalism, tree limbs and fire. Be certain to check with your insurance provider as some policies may exclude wind or hail. While solar panels are designed to withstand many of these events, damage can still occur depending on the severity of a direct impact to the array or structure in which the array is attached. Solar module manufacturers test products against real-life conditions and certify their equipment can withstand decades of normal use and extreme weather conditions. Keep in mind, not all solar panels, racking, or inverters are created equal. Consult with your solar installer on the quality of the equipment being proposed for your system. 

 

What Do I Do If My System Has Damage?

Broken destroyed solar panel

If you believe your solar energy system may have received damage during a weather-related event, contact your installer and ask their service team to run a diagnostic test. At Eagle Point Solar our service and support team will remotely look for recent changes in your solar production via online monitoring to determine the operational integrity of the system. If there is cause for concern, we will schedule a field service technician to conduct an onsite inspection. The technician will assess the solar array for any damage and complete any minor repairs. If your system requires more extensive work, an estimate is generated which will provide the necessary documentation needed for your insurance company claim. 

In conclusion, it is recommended to invest some time to review your homeowner’s insurance policy and connect with your insurance agent to review coverage options and costs. Depending on your tolerance for risk and whether you financed or paid cash for your solar array, insurance coverage may or may not be beneficial for your situation. Additionally, for added peace of mind, partner with a solar installation company with a dedicated service and support team offering a full suite of diagnostic and equipment repair options. This partnership will pay dividends in helping you maintain optimal performance of your solar array and directly work with your insurance provider and equipment manufacturers to quickly and efficiently resolve any claims.

Sources:

Portrait of engineer man or worker, people, with solar panels or solar cells on the roof in farm. Power plant with green field, renewable energy source in Thailand. Eco technology for electric power.

If your solar array has received damage from a weather-related event, please contact our service and support team by calling (877) 357.2555 or submit a service and support request.

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