Does Homeowners Insurance Cover Solar Panels?

Florida’s sunny climate has led many people to invest in solar panels to save on their electric bills, lower their carbon footprint, and aid in the fight against climate change. Installing solar panels can also earn homeowners’ rebates and tax credits. However, it will depend on the individual insurance policy whether they’re covered or not.

Are You Covered?

Before installing solar panels, every homeowner should first check with their insurance agent to ensure that they’re covered. Some insurance companies consider the panels as part of the home the same as decks and security systems. Solar panels represent a considerable investment that would be expensive for insurance companies to cover in the event of damage and there may be substantial limitations to coverage.

Amount of Coverage

One of the biggest concerns for individuals is if the entire cost of the panels will be covered if damage occurs. Some insurers pay a percentage of the cost, while others provide coverage that’s prorated according to depreciation. If an insurer doesn’t cover the full cost, homeowners could easily find themselves responsible for thousands of dollars in out-of-pocket replacement costs.

Damage Sources

A homeowner’s policy will typically protect homes against fire, theft, vandalism, explosions riots, and even volcanic explosions. Hurricanes, flooding and earthquakes aren’t covered under Florida insurance policies. To protect the investment, individuals should consider hurricane insurance. The policies have an annual deductible and once its met, individuals must only pay their normal deductible.

An Investment

Solar panels require a substantial financial outlay and individuals should always consult with their insurance agent before having them installed to ensure coverage if they’re damaged, along with the extent of the coverage. As storms become more frequent and severe, insurance companies are rethinking the products they offer and the coverage they provide.

Insurers are also becoming more selective in the homes they insure and some have terminated coverage for clients that they consider too high-risk. The installation of solar panels provides a variety of monetary benefits for homeowners and they’re an investment in the future.

For more information about how The Sena Group can help you with any

of your insurance needs, please contact us at 561-391-4661.

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The Sena Group
6501 Congress Ave., Ste. 100
Boca Raton, FL 33487