Thinking About Solar Panels? Here Is What They Could Mean for Your Home Insurance

Solar panels are becoming increasingly popular with homeowners looking for ways to improve energy efficiency and potentially reduce their electric bills. But before you make the switch to solar, there is something important to consider that often gets overlooked: your homeowners insurance.

Solar Panels Do Not Usually Mean a Discount

One common misconception is that installing solar panels will automatically result in a discount on your homeowners insurance.

Unfortunately, that is not generally the case.

While solar panels can offer long term savings on energy costs, they also add value to your home and increase the overall cost to rebuild your home if there is a covered loss.

Your Coverage May Need to Increase

Think about it this way. If you purchase a solar panel system for $30,000, that is an additional $30,000 investment attached to your home.

If your home were to experience a major covered loss, you would want your insurance coverage to account for the cost of replacing that system.

That means your dwelling coverage may need to be increased to properly reflect the updated replacement cost of your home.

This is why it is so important to let your insurance agent know before or when you install solar panels. Your agent can review the system, determine how it should be reflected on your policy, and make sure you have the appropriate amount of coverage.

Before You Go Solar, Talk to Your Insurance Agent

If you are considering solar panels, remember to look beyond the purchase price.

Consider the cost of the panels, installation, equipment, and any other components of the system. Then, talk with your insurance agent about how that investment could impact your homeowners coverage and premium.

Solar panels can be a great investment for your home, but you want to make sure your insurance keeps up with that investment.

Thinking about going solar? Give the Teagle Insurance team a call before you make the switch. We can help you understand how your new solar system may impact your homeowners coverage and make sure your policy is ready for the change.