Recently, we have received a number of calls from customers inquiring as to whether the installation of solar panels will affect their home insurance.
Most likely….yes, it will.
Many insurance companies have recently tightened their guidelines and no longer will insure homes with solar panels. Those that do insure homes with solar panels typically have stipulations that they will only insure home with the fabric solar equipment used for heating pools. Or that they will insure homes with solar panels so long as the homeowner hasn’t entered into a net-metering agreement with the power company.
What’s the concern?
The concern with the insurance company is that the installation of solar equipment onto a perfectly good roof could cause damage to the roof and lead to leaks. Another concern is the cost and the location of the equipment. Most times, these systems are installed on the roof or are unprotected outside the home. Let’s assume a hailstorm comes through and damages the solar panels and the roof. What could have been a $15,000 claim could now be a $70,000 claim.
And lastly is the liability, if you enter into a net metering agreement, the power company will likely require that you secure a one million liability policy to indemnify the power company should your solar equipment cause damage to the power grid. Most insurance companies in Florida will not offer this additional coverage as they are in the business of insuring homes….not power grids.
However, there are a handful of carriers that will accommodate the homeowner looking to install solar panels. Our recommendation is to ensure that the cost of the solar equipment is included with the dwelling coverage limit on your policy and to always ensure your agent or insurance company is aware of your intent to go solar.
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