Do Solar Panels Affect My Home Insurance?
By: Ryan Reynolds, CLU® & Emmerson Reynolds
Are you thinking about going solar? Or maybe you’ve already installed solar panels on your roof and are wondering: Does home insurance cover solar panels if something goes wrong?
The good news is: Yes, most homeowners insurance policies cover solar panels. But there are some important details and limitations you need to know.
Are Solar Panels Covered by Home Insurance?
If your solar panels are permanently attached to your home (like rooftop panels), they’re usually covered under your dwelling coverage—the same portion of your policy that protects your roof, walls, and foundation.
That means if they’re damaged by a covered peril—hail, wind, fire, or even a fallen tree—your insurance will likely help pay for repair or replacement.
But here’s the catch: coverage is only as strong as your policy limits and you may need a solar endorsement on your policy depending on your carrier.
Why You Need to Check Your Dwelling Coverage Limit
Let’s say your current homeowners insurance covers your house for $400,000. After adding $60,000 worth of solar panels, your replacement cost is now $460,000.
If your policy still caps out at $400,000, you’re underinsured. A major claim could leave you short tens of thousands of dollars.
👉 Pro tip: Prior to installing solar panels, always call your insurance agent to update your dwelling coverage limit and ask what is and what is not covered.
What About Roof Replacements?
Here’s something many homeowners don’t realize when you replace your roof, your insurer may not automatically cover the cost of detaching and reinstalling your solar panels.
Since that work can cost up to $10,000 (depending on the size of your system), some insurers require you to hire a certified solar professional and might be covered by a solar endorment—and that cost might not be covered unless you’ve added a special endorsement.
Ground-Mounted Panels or Detached Structures
Not all solar panels are roof-mounted. If you have panels installed on the ground, a shed, or a detached garage, they usually fall under Other Structures coverage.
Here’s the issue: Other Structures coverage is often limited to about 10% of your dwelling coverage.
So, if your home is insured for $300,000, your detached panels may only have $30,000 of protection—possibly not enough to cover a full system replacement.
What Isn’t Covered by Home Insurance?
While homeowners insurance covers sudden, accidental damage, it doesn’t protect against everything. Exclusions usually include:
- Wear and tear from age or heavy use
- Poor maintenance (not cleaning or servicing panels)
- Manufacturer defects
- Mechanical breakdowns (like inverter failure)
In short, if your solar system stops working due to age, defect, or neglect, you’ll need a warranty or service contract—insurance won’t step in.
Steps to Take If You Have or Plan to Install Solar Panels
- Notify your insurance provider. Any major home upgrade should be disclosed.
- Update your dwelling coverage limit. Make sure it reflects your home plus the added value of your panels.
- Ask about endorsements. Some carriers require special riders for high-value or ground-mounted systems.
- Save all documentation. Receipts and system details make claims much smoother.
Final Thoughts
So, do solar panels affect your home insurance? Yes—both in terms of coverage and cost. Most policies include them, but only if you have the right limits and endorsements in place.
At Grimes Insurance Agency, we help homeowners across Lubbock and West Texas protect their homes, roofs, and solar investments. Don’t leave your panels underinsured—make sure your policy grows with your home improvements.
📞 Thinking about solar or already installed panels? Contact us today at 806-762-0544 and let’s make sure your home and your panels are fully protected.
