Do Solar Panels Affect Your Homeowners Insurance?
Solar panels are becoming more common across Connecticut. Many homeowners install them to reduce energy costs, increase property value, and reduce their environmental footprint.
A client recently asked a great question:
“Today solar panels go on top of the house. Is there anything we should do to make sure they’re noted correctly (and covered) on our homeowners insurance?”
The short answer: yes—it’s important to let your insurance agent know when solar panels are installed.
Here’s why.
1. Solar Panels Increase the Value of Your Home
Most rooftop solar systems cost $15,000–$30,000 or more depending on the size of the system.
If your policy’s dwelling coverage (Coverage A) wasn’t updated to account for that added value, your home could be underinsured after a major loss.
When solar panels are installed, your insurance agent should review whether your replacement cost estimate needs to be adjusted.
2. Most Rooftop Solar Panels Are Covered Like Part of the House
In many cases, roof-mounted solar panels are considered part of the dwelling, just like your roof, siding, or built-in systems.
That means they are typically covered for risks such as:
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Fire
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Wind or hail damage
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Lightning
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Falling objects
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Other covered causes of loss
However, the coverage limit depends on your total dwelling coverage amount, which is why updating the policy is important.
3. Ground-Mounted Systems May Be Covered Differently
If the solar panels are installed on the ground instead of the roof, they may be treated as other structures (Coverage B) rather than part of the home itself.
That category usually includes things like:
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Detached garages
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Fences
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Sheds
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Gazebos
Coverage is often limited to 10% of the dwelling amount, which may or may not be enough depending on the cost of the solar system.
4. Leased Solar Panels Can Change the Insurance Situation
Many solar installations are leased or owned by the solar company rather than the homeowner.
In those situations:
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The solar company may insure the panels
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Your policy may still need to reflect the installation
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Liability questions can arise if the panels cause damage
This is another reason it’s helpful to notify your insurance agent when the installation is scheduled.
5. Your Insurance Company May Want Documentation
Sometimes the insurer will request details such as:
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Installation date
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Total system cost
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Whether the system is owned or leased
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Contractor information
Providing this information ensures your coverage reflects the true value of the property.
The Best Step: A Quick Insurance Review
The easiest solution is simple:
Let your insurance agent know when solar panels are installed.
A quick policy review helps ensure:
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The home is insured for the correct replacement value
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Solar panels are properly categorized
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There are no surprises if a claim occurs
Solar energy is a great investment—but it’s important that your insurance coverage keeps up with improvements to your home.
FAQ: Solar Panels and Homeowners Insurance
Do solar panels increase homeowners insurance premiums?
Sometimes slightly. Because solar panels increase the value of the home, your dwelling coverage may need to increase, which can raise the premium modestly.
Are solar panels covered for storm damage?
Usually yes. If they are attached to the roof, they are typically covered under dwelling coverage for the same perils that affect the home, such as wind, hail, or fire.
What if my solar panels are leased?
In many leased systems, the solar company insures the panels themselves, but your policy may still need to reflect the installation. It’s worth confirming how the responsibility is divided.
Do I need special insurance for solar panels?
Most homeowners do not need a separate policy, but the installation should be noted and your coverage limits reviewed.
Should I tell my insurance company before installation?
It’s helpful but not always required. The most important step is letting your agent know once the installation is completed so your coverage can be reviewed.
If you’re planning upgrades to your home—solar panels, a new roof, or a major renovation—it’s always a good idea to keep your insurance agent in the loop.
A quick conversation now can prevent surprises later.