Home » Should You Talk With Your Insurance Agent Before Adding Solar Panels to Your Home? 
February 20, 2024
Devette & Ford Insurance Agency Inc.

Should You Talk With Your Insurance Agent Before Adding Solar Panels to Your Home? 

blue solar panels

In recent years, the increasing popularity of solar panels as a sustainable energy solution has led many homeowners to consider adopting the technology. While the environmental and cost-saving benefits are compelling, navigating the potential implications for your home insurance is crucial. Before you leap into solar energy, engaging in a conversation with your insurance agent is a step that could save you from unexpected complications down the road.

How Can Solar Panels Impact Homeowners Insurance?

  • Dwelling coverage—One of the primary considerations when installing solar panels is their impact on your home’s dwelling coverage. Solar panels may be considered part of the structure, and any damage or loss to them might be covered under your dwelling coverage. However, it’s essential to discuss the specifics with your insurance agent to ensure that your policy adequately addresses the value of solar panels and any potential associated risks.
  • Additional structures coverage—Alternatively, these panels may be considered as additional structures on your property, distinct from the main dwelling. Your insurance policy may have a separate provision for coverage related to these structures. It’s crucial to clarify with your insurance agent whether your existing policy adequately covers solar panels as additional structures or if additional coverage is necessary.
  • Personal property coverage—In some cases, homeowners insurance can extend coverage to personal property, including solar panels. However, the extent of coverage may vary, and it’s crucial to discuss with your agent how your policy addresses the protection of these valuable assets. Understanding the coverage limits and potential exclusions can help you make informed decisions about securing additional protection if needed.
  • Liability coverage—Solar panels come with risks, such as potential damage during installation or maintenance. Liability coverage becomes crucial in these scenarios, as it can protect you in case someone is injured on your property during installation or if the panels cause damage to a neighbor’s property. Discussing these potential risks with your insurance agent ensures that your liability coverage is comprehensive and aligned with the unique aspects of solar panel installation.

Before committing to solar energy, discussing the potential impact on your insurance premiums with your agent is essential. While some insurance providers may offer discounts for installing solar panels due to their positive environmental effects and potential reduction in overall risk, others may have different policies. Understanding the financial implications ensures you can make an informed decision that matches your budget.

Homeowners Insurance in Glen Arbor , MI

Contact Devette & Ford Insurance Agency, Inc. to make sure your homeowners insurance aligns with your home improvement decisions.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.

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