How Much Does Solar Insurance Cost?

Whether it's warming you up on a summer day or providing a healthy dose of vitamin D, there's nothing like natural sunshine. In fact, many homeowners are opting to install solar panels for an eco-friendly power alternative. If you've got a solar panel installation project in the works, you may be wondering how much solar panel insurance costs.

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Fortunately, most homeowners insurance plans include solar coverage, and separate plans range from around $100 to $1,000 (CAD 141 to CAD 1,409) per year.

What Is Solar Insurance?

Generally included with homeowners policies, solar insurance is a type of coverage that offers protection against certain types of damage or loss. Specific coverage can vary, but homeowners policies generally cover damage from fires, severe weather, vandalism and theft.

Standard homeowners insurance policies may provide coverage for rooftop solar panels and ground-mounted panels. However, ground-mounted or detached systems usually receive less coverage than rooftop systems. Whether your coverage is part of your policy or you have separate or supplemental coverage, solar insurance helps cover the costs of both system repairs and replacements.

In addition to physical damage, solar insurance coverage typically offers protection against system malfunctions. Some common issues include panel damage and degradation, damaged inverters, reduced energy output and complete system failure.

How Much Does Solar Panel Insurance Cost?

Most homeowners policies include coverage for solar panels. The average cost of homeowners insurance in the United States is approximately $2,627 annually (CAD 3,702) and $189 (CAD 166) monthly on policies with $300,000 (CAD 422,744) dwelling limits. If your homeowners insurance covers solar panels, they'd be included in these costs.

If your homeowners policy doesn't cover solar panels, you may need to purchase stand-alone solar insurance. On average, separate endorsements and/or stand-alone solar insurance policies range from $100 to $1,000 (CAD 141 to CAD 1,409) per year. However, prices can vary significantly depending on factors such as your home's location and the size of your solar panel system.

Your insurance company may also recommend additional liability insurance to help cover expenses if your solar panels cause damage or injure another party. Most homeowners insurance policies include some liability coverage up to $100,000 (CAD 140,915). However, some insurers suggest purchasing additional coverage between $300,000 and $500,000 (CAD 422,744 and CAD 704,573).

If you're considering installing solar panels, the best way to determine if you need extra coverage is to contact your homeowners insurance agent. They'll go over your policy with you and advise on any additional steps you need to take.

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Does Homeowners Insurance Cover Solar Panels?

In most cases, homeowners insurance policies cover solar panels. When installed on roofs, solar panels are generally considered permanent attachments to the home. On a standard homeowners policy, coverage is typically provided under the "dwelling" section. If your solar panels are mounted on a detached shed or on the ground, they may be covered under the "other structures" section in your policy. When covered under "other structures," the overall coverage may be lower than panels covered under the "dwelling" section.

How Much Does Home Insurance Go Up With Solar Panels?

Your homeowners insurance rates may increase slightly after you install solar panels. However, the exact amount of the increase would be determined by your insurance company. Factors that may affect your homeowners insurance costs include the size of your solar panels and the cost of replacing them in the event of damage or theft.

If your homeowners policy offers coverage for solar panels, your rates may not change. However, if your new system is larger in size, your current policy may not provide full coverage. In this scenario, your homeowners insurance may increase slightly, or you may need to increase coverage by adding an endorsement or rider to your policy.

If you're concerned that your rates may increase by installing solar panels, it's best to contact your homeowners insurance company and go over your options.

All CAD conversions are based on the exchange rate on the date of publication.