HomeHere’s a summary of the upcoming article: don’t hesitate to call your insurance provider about the new system. Solar panels and insurance might seem like a small detail, but failing to disclose your solar setup could lead to complications later.
Now, let’s have a thorough conversation on why it’s so important to talk to your insurance company before moving forward with solar panels and how doing so protects you, your home, and your new or upcoming investment.
Property Value Change
After installing solar panels with a local solar company, your home has changed. Once solar panels are added, your property value will most likely increase. Roof-mounted or ground-mounted, they’re a part of your home and they deserve that recognition!
When discussing solar panels and insurance, it’s important to understand that these upgrades might not be automatically covered under your current homeowner’s policy. Letting your insurer know allows them to adjust your policy to reflect the new system. After that, you can enjoy any coverage in the event of damage, theft, or accidents.
Not reporting the change might mean your policy isn’t enough to protect your home’s full value.
Additional Coverage
Depending on your insurance company, solar systems may be covered under your standard home insurance or they may require an endorsement (a policy add-on). The best way to find out? Ask your insurance company.
Here’s what can happen if you don’t:
- If a storm damages your system and it’s not listed in your policy, your claim could be denied.
- If fire or electrical issues cause damage related to the system, you could be on the hook for repairs out of pocket.
- If the panels increase your rebuild cost after a total loss, your existing policy might fall short.
Paperwork isn’t the only thing bridging the gap between your solar panels and insurance. There’s also a big emphasis on making sure your solar investment is safe! We don’t want to face any hidden disadvantages later on.
Liability Protection
While solar setups are generally safe, there’s always a small chance something could go wrong, especially if the system is installed in a shared or visible space. If your solar equipment is placed on the ground, near a fence line, or within reach of others, it may present a new type of liability risk.
By notifying your insurer, you give them a chance to assess and update your liability coverage if needed. This helps protect you in the rare case that someone gets injured due to interacting with or tampering with the system.
Required by Financing or Permits
If you’re purchasing your system with the help of financing, your lender may require proof of insurance that includes the solar equipment. The same goes for certain city permits, especially in areas with strict building regulations.
Letting your insurer know ahead of time allows you to get the proper documentation on time and show that your solar setup is fully covered. It also speeds up the approval process so your project doesn’t face delays.
Failing to notify your insurance provider could lead to surprises down the line, especially if a financing agreement depends on having verified protection in place.
Claim Protection
If we’re talking about insurance, we have to get into the nitty-gritty details. If your solar equipment isn’t listed in your policy and something goes wrong, you might find yourself battling for coverage or being denied altogether.
Keep your insurer in the loop to make sure your system is documented. If something unexpected happens, you’ll stress less knowing your system is included in your coverage.
Understanding the connection between solar panels and insurance helps you avoid claim-related headaches and provides you with some backup to restore or replace your system quickly if needed.
One Call Can Save You Thousands
It only takes a few minutes to call your insurance provider, but the benefits are undeniably worth it. By telling them about your solar project in advance, you’re ensuring your policy fully protects your investment, your property, and your peace of mind. Don’t skip this step. Whether it’s required by your loan provider or just smart planning, please keep your insurer informed to make sure your clean energy upgrade is truly worry-free.
If you’re still unsure what your policy needs, we’re happy to guide you through the process or connect you with an insurance expert who understands how to handle solar-related changes.