Wednesday, March 06, 2019

By John Voket With all the information available about the benefits and mechanics of solar panels, you may have spent precious little time making sure they're properly protected...on your homeowners policy, that is.

So, we took note of a recent advisory dispatched by underwriter Paul Improta, who shared the four most important questions every homeowner with solar panels should ask:

1. Does my homeowners policy cover solar panels? Most likely, yes. Most insurance plans consider solar panels a permanent part of your home once they’re installed. However, there may be additional insurance costs to consider depending on the particulars of your policy and where the panels are located.  

2. Do I need any additional coverage? Covering new solar panels under your standard homeowners policy usually negates the need for an add-on or rider, unless the solar energy system is installed at the ground level or other area detached from your home. Regardless, it’s a good idea to check in about potentially increasing your coverage limit.

3. Will my premium go up if I add them? The short answer is, it depends. But since your replacement costs are changing with the addition of solar panels, you could likely see your premium increase.

4. Are there any drawbacks? As with any home update, some risks may not be covered by insurance, including damage during the installation process. Solar panels also present challenges in the event your home ever catches fire, as they could make it difficult for firefighters to access and extinguish the blaze.

Over at homeinsurance.org, Thomas Zuo points out that many of today’s homes already have solar panels, particularly if you live in “solar cities” like Minneapolis, Sacramento, San Antonio, San Diego, Tucson and San Jose.

But Zuo says that if you're fortunate enough to own a home that's already outfitted with solar panels, you still need to understand how your home insurance policy treats the panels. First and foremost, determine if you're the legal owner of the solar panels. In some instances, they could be installed in a lease arrangement instead of outright ownership.

In the end, every individual homeowners policy is different, so if you have questions, it's best to check with your specific carrier or agent for clarification.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com