Does Homeowners Insurance Cover Solar Panels in California?
With plenty of sunshine and a statewide push for more renewable energy, it’s no surprise that California homeowners are embracing solar power. Solar systems can cost tens of thousands of dollars, so it’s an investment worth protecting. One question homeowners will want to ask before installing their system is: Does homeowners insurance cover solar panels in California?
Fortunately, in most cases, a standard homeowners insurance policy will cover your solar panels. But it could depend on your setup, insurer, and policy details. Learn more about how insurance providers handle solar panels so you know how to protect your investment.
Understanding Home Insurance for Solar Panels
Most standard homeowners insurance policies include solar panels under dwelling coverage, but it often depends on how the system was installed. Typically, if the panels are attached directly to the roof, they are considered a permanent feature of the property. Most insurance providers cover them due to damage from fire, wind, hail, vandalism, and other events.
However, if your panels are ground-mounted or installed on a separate structure, such as a detached garage, they may not be covered by a standard homeowners insurance policy. You may need separate solar panel insurance or an addition to your existing policy.
Special Considerations for California Homes
California homeowners are leaders in solar energy adoption. But the state’s unique risks mean they need to look closely at their coverage. How completely does homeowners insurance cover solar panels in California?
While most homeowners insurance policies will cover standard perils like house fires or wind damage, California homeowners will want to look for coverage for perils such as earthquakes, wildfires, and climate-related disasters.
If you live in an area prone to wildfires, earthquakes, or high winds, some insurance companies may set coverage limits requiring you to raise your coverage limit to fully protect the cost of your solar panels. This could be a great time to consider umbrella insurance.
While homeowners insurance provides essential protection, umbrella insurance can provide additional liability coverage on your solar panel system. Always talk to your insurance agent to confirm what’s covered and if they recommend additional protection.
Types of Damage Covered
Does homeowners insurance cover solar panels in California from every type of damage? Your solar panels may be protected under your insurance coverage for:
- Fire
- Wind
- Hail
- Vandalism
- Theft
- Falling objects
- Snow or ice damage (less common in California)
However, homeowners should note that wear and tear and damage from a faulty solar panel installer are not usually covered. You’ll want to work with a licensed, reputable solar panel installation company. These companies often offer warranties that cover mechanical or installation issues that insurance does not.
Determining Your Coverage Needs
Adding solar panels to your home can increase its replacement cost, which could already be significant in a state with very high housing costs. Because of this, your existing homeowners insurance policy may not provide enough coverage.
After you install solar panels, contact your insurance agent to:
- Review your dwelling coverage limits
- Assess the value of your new solar panel system
- Determine if you need to raise your coverage limits
You might also want to add an endorsement that specifically lists your solar panel system to avoid disputes if you need to file a claim. Knowing the details of your policy can help you better protect your home.
Impact of Solar Panels on Insurance Costs
Will solar panels increase your homeowners insurance premium? Possibly. Because the panels can raise the value of your home, your insurer may increase your coverage amount, which can lead to a higher premium. However, the cost increase is typically negligible compared to replacing solar panels without insurance.
One thing to remember is that some insurance companies will offer discounts to homeowners with solar panels, especially if the panels include safety features or promote energy efficiency. It’s worth comparing quotes from different insurers and speaking to an experienced insurance agent to see if there are any discounts available.
Filing a Claim for Solar Panel Damage
If your solar panels are damaged, you can file a claim by:
- Documenting the damage with clear photos
- Contacting your home insurance provider as soon as possible
- Providing proof of your solar panel system’s installation and value
- Working with your claims adjuster to determine the next steps
In most cases, your claim will follow the same process as any other home insurance claim. Just make sure your policy clearly covers your solar panels to avoid any surprises.
Protect Your Roof and Your Power—Get a Free Home Insurance Quote Today!
Solar panels are a valuable part of your home’s energy system. They need to be protected with the right homeowners insurance coverage. While most policies will cover roof-mounted panels, it’s important to check your policy details and determine if you need to add or increase your coverage.
Cost-U-Less Insurance makes it easy to compare policies, adjust your limits, and get peace of mind about your new solar panels. Call (800)390-4071 or get a fast and free home insurance quote online. You can also find a nearby office and visit in person to talk to a licensed agent. Find the coverage options that work for you today.
FAQs About Solar Panels and Insurance
Does home insurance typically cover solar panels in California?
Yes. Most homeowners insurance policies in California will cover solar panels under dwelling coverage if they are permanently attached to your home. If the panels are ground-mounted or installed on a separate structure, you may need to add coverage.
Are there specific conditions under which solar panels are not covered?
Yes. Solar panels are typically not covered for general wear and tear, poor maintenance, or damage caused by faulty installation. Earthquake damage is also usually excluded unless you have specific coverage for earthquakes.
How do solar panels impact my overall home insurance premium?
Adding solar panels can increase your home’s replacement value, which may raise your insurance premiums slightly. However, some insurers offer discounts, and the added protection is worth the extra cost.
