Broken solar panels could be your loss!
What does your homeowner’s insurance company think about solar panels? Do you know? You may be surprised to learn that your insurance company views renewable energy installations as a potential additional liability, rather than an integral part of your house for which coverage is provided in the event of a loss. Do you need special solar panel insurance?
OK – I admit, I am sounding like a lawyer right now, but this is a very technical matter. The simple question is – what if your solar panels break during a windstorm? Will you get reimbursed for the loss? Or, even worse, will your insurance company cancel you for going green? Believe me, it has happened!
You must read the fine print of your policy very carefully, no matter how much you’ll hate to do that. If you aren’t prepared to do this task, then ask a trusted friend or family member to help you. Insurance companies have cancelled insurance because of solar panel installations when they view them as “too risky.” 95% of the time, these assessments are based on misinformation – or a complete lack of knowledge – regarding solar panels. I have read about insurance companies that decided solar panels were a fire hazard due to the potential of overheating, and other companies that thought there would be water leaking around the installation. Wrong, and wrong.
Even if you’re not canceled, solar panel insurance may cost you more than you bargained for. Jerry Caldwell, a PV designer for SunPower Corporation observes:“It’s a case of the insurance companies being afraid of the unknown. A PV system is like any other appliance you might put on a home. As long as the components and installation are to code, insurance companies should not feel at liberty to discriminate.”
Still, purchasing solar panel insurance can run you up to an additional $1000 a month! You’ll never save that much in electric bills.
Some insurance companies justify the additional cost based on the increased value of the home or structure. Because solar panels add value to a house, the replacement cost is that much higher. I can agree with that to a point. I still can’t see any justification for an additional grand every month in insurance premiums.
The very encouraging news is that you might not have to hire an insurance lawyer anytime soon. Well, that might be good for you, but not so much for me! But seriously, these days more and more insurance companies are actually rewarding homeowners for going green – instead of penalizing them. Companies like the Lexington Insurance Company have seen the light and appreciate their client’s efforts to employ environmentally-sustainable practices like installing solar panels. In fact, they offer a 2-3% discount for solar panel insurance that covers loss, theft or damage to PV panels.
Similarly, Fireman’s Fund Insurance provides a discount of 5% to owners of LEED-certified homes. Fortunately for me, the program is available in Oregon. Homeowners in other states, including Washington, Arizona and Illinois can also benefit.
With more and more homeowners choosing to “go green,” I expect that the insurance industry will catch up, if slowly. Fortunately, you can shop around and choose the best solar panel insurance company out there. There is already a shift in general perception among the very conservative insurance companies. In just a few years, they should all be in agreement that “green is good.” (a tip of the hat to Wall Street, a fabulous 80s film). The only issue before then is protecting your precious solar panel investment against loss.
December 11th, 2008 at 11:37 am
Hi Stephanie! It’s great you’re putting this information out there, it seems like insurance isn’t often first on a homeowner’s mind when they’re considering solar. Of course one way to avoid this issue entirely is to go solar with a company who insures your system for you. My company, SunRun, is a solar service company and includes system insurance in the suit of services (panel washing, monitoring, money-back guarantee, etc.) that is complimentary for all our customers. Thanks again for the post and keep blogging!
Best,
Sydney
http://www.sunrunhome.com
December 11th, 2008 at 12:26 pm
Hi Sydney,
Thank you for the comment! What a tremendous benefit SunRun is offering its customers. Just the maintenance alone can be overwhelming to some people. I am sure you have many happy clients.
Best, Stephanie
December 24th, 2009 at 4:25 pm
I have a question for you Sydney… how long do you offer the services? its my understanding that solar panels last up to 20+ years…
January 14th, 2010 at 5:33 pm
Nice article!! I just happened to search this in google because I was confused, and I agree.
It happens GIO offer an 'eco' option, which is funny because it actually sounds useful. Turns out, they will offer me up to a whopping 2,500 for my solar system, rainwater tank or solar hot water system. Awesome!!! So, I pay 50,000 or more, it gets burnt to a crisp in a bushfire and I get a huge sum that doesn't even match the measly rebate! Worth pointing out to folks!
April 21st, 2010 at 11:13 am
Special solar panel insurance? There is no reason in it. I decide what cover my house has and it's the part of it. Why should i insure it separately?
May 8th, 2010 at 8:35 am
Hi There, the use of a special solar insurance is that you regular insurance cover is not so well. Some examples:
- Over voltage is not covered (and hat is of the most happening damage)
- Theft without any tracer of burglary
- Production loss (or business interruption)
At the moment spare parts are absolutely not avialable so if you installation is not functioning your costs (interest and payback of your loan) are going on. So you need an income from an insurance when the installation is not functioning.
We only insure soalr instalations in Europe and > 80% of people who buy an installation insure it separately because – in general – existing insurance cover is badly for expensive solar installations.
If you are interested, seehttp://www.solarif.com
June 16th, 2010 at 9:09 am
Hello. I live in England and I have just had solar panels put on my house. The company said I should get insurance but that is q problem. Where and with who do I get said insurance. Can any one help me as I cannot find a company in England to just insure the panels.
Thank you Tina
July 21st, 2010 at 10:20 pm
Because each PV panel costs about 1,000-2,000$ a piece, they are a hot theft commodity. Sure, you can insure your house, but when they are stolen off of it, you are SOL. Its one of the biggest claims for CA PV owners. Sad but true.
September 21st, 2010 at 12:14 pm
I am looking for Ontario Canada Insurance companies to insure homes with solar panels. We have a few companies here in Ontario (Royal and SunAlliance) who charge only $25 additional premium per year to insure these panels!! What a great deal, however, your home insurance would obvioulsy have to be insured with them as well. Normally this would suffice for most of our clients, however, there are limitations imposed by the insurance companies such as not offering insurance on a rented dwelling if there are solar panels installed. If anyone has any referrals or contact information that I could potentially offer to my insureds, this would be fantastic!!
September 26th, 2010 at 5:33 am
Insurance I have found Hudson Henderson Insurance in Ontario Canada is the leading provider of insurance for homeowners Insurance. They will insure installation contractors, solar properties, buisness roof installations. Hudson Henderson has the insurance companies and the programs and coverages established to provide the proper coverages and solar insurance insurance premium discounts. They have a program that provides the proper coverages for solar panel insurance. The phone number is 888 522 4999. I would highly recomend a call or quote from these experianced solar insurance providers
October 8th, 2010 at 7:30 am
WE ARE A COMMUNITY PROGRAM SEEKING PROTECTION FOR OUR INSTALLATIONS AND FOR OUR CUSTOMER PROTECTION AGAINST DAMAGE AND THEFT. PLEASE ADVISE OF COMPANIES WHO PROVIDE INDUSTRY DISCOUNTED PRICES FOR OUR PROGRAM PARTICIPANTS
February 8th, 2011 at 10:49 pm
Shalom,
We just put solar panels on our home in Israel where insurance is available, but companies are not clear as to requirements. Our home alarm system now monitors the electricity convertor.
Now one adjustor decided it should also be encased in a locked cupbaord. We’re trying to find examples of criteria that insurance companies use elsewhere prior to insuring home solar panel systems. Do you know where I can find this information?
Thank you,
Debby Mir
February 9th, 2011 at 8:22 am
Hello Debby,
Excellent question – this shows the lack of understanding and expertise that insurance companies have with respect to solar panels. Let me see if I can find some information for you. I would maybe check with larger insurance companies directly. In the U.S., that would include AllState, Progressive, and Safeco. Good luck! Stephanie
September 25th, 2011 at 10:56 pm
I would never rely on a manufacturers guarantee since many if not all of these businesses are going the way of Solyndra. What happens when the panels are no longer in production?
No insurance company in their right mind is going to cover a $60,000 roof for the same price as a $4,000 tar shingle roof. Tar roofs are normally replaced by insurance companies every 10-15 years or so and the cost of this is built into their premium.
Are hail stones more or less likely to do damage to solar panels that tar shingles?
Usually tar roofs survive all but severe hail storms. In Minnesota hail hit my roof at least once a year. Usually no damage
February 28th, 2012 at 8:31 am
I was looking into this in great detail, as I was aware that house insurance covers the panels themselves, but does not cover the loss in revenue or the labour costs of fixing the panel or replacing them. I think a separate policy is great for that extra piece of mind.