Importance of Solar Panels Insurance
If you’re considering alternative energy, solar in particular, you ought to plan for a comprehensive insurance
policy to cover your solar electric system.
A solar electric system is a substantial investment on your part, so whether you’re planning to install it for
your home or business needs, having a suitable insurance policy is vital.
It’s essential that you read and fully understand the fine print of your existing homeowners insurance
As it is presently, many insurance companies do not cover solar panels, perceiving them as additional liability,
as opposed to assets already covered policy in place.
However, a few insurance companies do cover solar panels under the homeowners policy. Typical solar panel
insurance policies cover eventualities such as storms, accidental damage or theft. In fact, some companies
offer slightly reduced rates to ‘eco-friendly’ homes , with the logic
that they will hardly make an insurance claim - people who are conscious about the environment are also less likely
to smoke, thus a reduced risk of a house fire.
Extreme weather conditions that affect solar energy production - storms, severe winters, hurricanes - coupled
with a host of other factors that can cause damage to a solar system, make the need for insuring solar panels more
apparent. Insurance companies have devised ways to manage risks related to solar energy and other alternative
energy. Solar panel insurance will cover you under two main components - calamities from external factor and loss
Under the external factors component, your solar investment will be covered for theft, damages caused by
weather, repair costs, and direct financial consequential loss due to an inherent damage.
For the second component, cover is really intended for loss of production resulting from mechanical failures due
to calamities (not system mal-function e.g. a faulty inverter). With some insurance companies, you may be
compensated for late deliveries of spare parts or out of stock parts. The nitty-gritty of the policy comes down to
individual company operations.
Most people get concerned with pay-off time of their solar system investment, plus the insurance costs. While
pay-off time may vary with state, there’s no doubt that the investment pays off in due time. Apart from saving on
your energy costs, your insurance premium will hardly be increased by much, more so if you shop for quotes.
Effect of weather/ climate
If you reside in a place that’s prone to storms and other weather conditions, then your solar panels are going
to attract a more expensive insurance premium. The reason is self explanatory - the severe weather conditions raise
the probability that you’ll be making an insurance claim for your solar panels and roof.
In that regard, it’s better to hire a local contractor when installing the solar panels because they have a better
understanding of the local weather patterns, which means more experience working around potential weather risks and
they will be able to choose the best panels for those weather conditions.
Shopping for insurance quotes is not that hard. Within hours, you will have hundreds of insurance
agents contacting you. Choose a policy with fair rates and ensure to inquire from the agents whether their
rates cover the ‘green’ components of your home, the solar panels inclusive.