What Is Solar Panel Insurance and Why Do You Need It?
Solar panels are typically durable and designed to last over 25 years, but even the best systems can be vulnerable to damage from hail, wind, debris, and fire. Standard homeowners' insurance may offer some level of protection, but it often excludes solar panel systems installed as add-ons. That’s where solar insurance comes in,designed specifically to cover both the panels and related installation components.
Are Solar Panels Covered by Home Insurance?
In some cases, solar panels and insurance overlap if your system is roof-mounted and considered a permanent home fixture. However, coverage gaps can still exist, especially for ground-mounted systems, carports, or systems financed through third parties. That’s why many homeowners opt for supplemental solar insurance to ensure comprehensive protection.
Types of Solar Panel Insurance Coverage Available
A well-structured policy may include:
- Hail damage coverage
- Theft and vandalism protection
- Fire and storm damage
- Third-party liability during installation (solar installation insurance)
- Loss of power production due to damage
These coverage options vary based on whether you're insuring a home or commercial property and whether you're the owner or installer.
Why Solar Panel Installer Insurance Is Crucial?
If you're a solar contractor or installer, solar panel installer insurance helps protect your business from liability claims, damage during installation, or faulty workmanship. Installers should carry both general liability and errors & omissions (E&O) coverage.
Solar Panel Insurance Cost & Companies
The solar panel insurance cost depends on the system size, location, type of coverage, and provider. On average, solar insurance may cost between 0.25% and 0.5% of the total system value annually. Leading solar insurance companies often provide tailored policies with added options for performance guarantees or expedited claims for solar panel claims.
Conclusion
Don’t leave your solar investment unprotected. Whether you’re a homeowner installing a rooftop array or a contractor managing large commercial jobs, the right insurance for solar panels safeguards against unforeseen setbacks and maximizes long-term value.
Contact solar sme today to explore certified solar coverage options tailored to your installation, and protect your clean energy investment with confidence.