What you need to know about insuring solar panels at home
- Home insurance policies typically cover roof-mounted solar panels.
- You should increase your home insurance coverage limit to reflect the actual cost to repair or replace your solar panels.
- Your home insurance premiums may increase as installing solar panels typically increases a home’s value.
More Canadians are turning to green energy at home as solar panels steadily become more affordable and efficient.
You may be wondering how to protect your investment if you’re planning to install solar panels at home.
While your purchase may include a warranty, it’s also wise to insure residential solar panels.
So, we asked Acera Insurance advisors to answer six common questions about insuring solar panels at home.
Does home insurance cover solar panels?
Yes, home insurance often covers permanent, roof-mounted solar panels. This includes solar panels mounted to the roof of your home, as well as other structures such as a detached garage.
Coverage for ground-mounted solar panels varies. Depending on the insurer, ground-mounted residential solar panels may:
- be covered under the ‘other structures’ section of your home insurance policy;
- require an endorsement be added to your home insurance policy;
- require a standalone policy be purchased; or,
- not be covered at all.
An Acera Insurance advisor can help determine how best to insure your solar panels at home.
What kind of solar panel damage does home insurance cover?
Solar panels protected under a home insurance policy are typically covered for losses and damage such as:
- fire
- theft
- vandalism
- liability
But remember, coverage varies by each insurer and policy. For example, home insurance may not cover solar panels for hail or wind damage — particularly if you live in an area prone to hailstorms, such as the Prairies.
An Acera Insurance advisor can walk you through your policy to ensure you understand what your solar panels are covered for, as well as any limitations and exemptions.
Do solar panels increase home insurance premiums?
Installing solar panels typically does not have a direct impact on home insurance rates.
But solar panels can be expensive to fix and replace. Installing a solar panel system also tends to increase a home’s value.
Because of these two factors, we recommended increasing your coverage limit, which may result in your premium increasing.
Why should I increase my home insurance coverage limit after installing solar panels?
Your coverage limit is the maximum amount you will receive — minus your deductible — in the event of a total insured loss.
You want your coverage limit to accurately reflect the true value of your home, which factors in the full replacement cost for your solar panel system.
If your coverage limit isn’t sufficient, you will have to partially pay out of pocket to repair or replace your solar panel system if, for example, it is damaged in a fire.
An Acera Insurance advisor can provide guidance when it comes to increasing your home insurance coverage limits after installing residential solar panels.
Do I need to insure leased solar panels?
Leasing companies usually provide coverage for residential solar panels — but not all do. Some will require that you purchase your own standalone insurance policy.
In such cases, it’s important to be aware that some insurers will not cover leased solar panels under a home insurance policy as you do not own the assets.
Am I insured if my roof is damaged from the solar panel installation?
We advise hiring a reputable, bonded contractor to install your solar panel system at home. ‘Bonded’ means they have the necessary insurance coverage to repair any damage to your property during installation.
Even if damage is not immediate, a poorly installed solar panel system could cause leaks, rainwater and snow melt pooling, and debris build-up — all of which could eventually result in water damage to your roof, home and belongings. This is why some home insurance policies for solar panels are contingent on hiring a certified solar panel installer.
Before hiring a solar panel installer, ask the contractor if:
- They are a certified solar panel installer.
- They are using either CSA or ULC-certified components.
- Their insurance will respond should something go wrong during the solar panel installation.
Insure your solar panels today
Contact a local Acera Insurance advisor if you’re installing solar panels at home.
They will provide expert advice, answer your questions and secure comprehensive coverage at a competitive price.