Some speculators have given bad information on the internet stating it is not possible to get homeowner insurance on solar panels. How silly is that? How many solar panel systems currently exists and how many more systems pop up every day. A more prudent questions is: will adding a solar power system increase your homeowner's policy premium? As the cost of solar power continues to drop due to competition in this field, many homeowners in Florida are converting to solar energy. Before making the switch, it’s essential to consider how a solar installation may affect your homeowner’s insurance coverage. Also know that in the worst case scenario Citizens Insurance will insurance the house, but not the panels.
Do you know of another reason an insurance company won't insure your home? The roof is too old, too many trees over the roof, a trampoline, a certain bred of dog, diving board at pool. Insurance companies are looking for reasons to get out of Florida. It is our politicians that keep their feet to the fire. Florida is not a big money maker for them, but collectively they financially do well in America..
Homeowners Insurance and Solar Panels
There are some insurance companies that may not want to take on the liability of the panels so it's important to know if your existing insurance companies has any issues with solar panels. If your solar panel system is connected to your home, they are covered under the dwelling portion of your policy. The caveat? You will only receive coverage if a peril like a storm damages your panels. Covered perils include:
*Hail
*Fire damage
*Storm damage
Unfortunately, your solar panels will not be covered for wear and tear, earthquakes, or flood. The panel warranty covers above normal wear and tear, Most insurance companies consider adding solar panels to your home a favorable factor when calculating premiums. Some insurance carriers offer discounts for those who install solar panel systems on their homes – some up to 12%. However, it is important to understand that these savings may vary based on each individual policy and provider. FYI: Have you ever seen the videos of trucks driving over the solar panels and they don't break? Worst case scenario, Citizen Insurance will insurance the house , but not include the solar panel hardware.
Do Solar Panels Affect Insurance Premiums?
The answer ultimately depends on the individual insurance. However, adding a solar panel system to your home should not automatically mean an increase in your premium or deductible, One benefit may offset another, but it does increase the coverage amount amount just like adding on additional interior content if you want to insure your jewelry as an example. It is a physical asset insured against hail, fire or storm damage. . Your insurer may ask for information about the system and require certain safety measures be taken before allowing you to install it so it is best to know before signing a contract, but if you are adding them to new construction this is not a factor. Most insurers recognize the value that solar energy can provide in terms of energy efficiency and cost savings over time.
There are situations where the installation of solar panels could increase the price of your homeowners’ insurance policy. This increase is due in part to the enhanced value that solar panels give to your home.
Insurance companies typically rate their premiums according to a home’s value to adequately cover the home in the event of a covered accident. This is why you may have to increase your coverage limits on your policy to match the increase in your home’s value.
Note: if you decide to install solar panels at any point during your current policy period, be sure to contact your insurer right away and let them know about the change.
What About Separate Policies?
You may need to add coverage or purchase a separate policy to cover your solar panels in some situations. For example, you will need a separate policy if your solar panels do not attach to your home’s roof. This includes ground-mounted panels or carport-mounted panels.
Solar panels that directly attach to your home will have insurance coverage under your homeowners’ policy. Every insurer handles policies differently, so make sure you contact your insurance agent to determine the best coverage for your needs.
Should You Increase Your Coverage After a Solar Installation?
The answer to this question is you should yes. The point to carrying insurance is in case of a damaging storm, an accident or fire damage to the equipment, but admiralty it is hard to damage this equipment.
Solar Solutions: Igniting a Bright Future
Going solar in Florida is a great way to save money, reduce environmental impact, aid assistance to an aging electrical grid and contribute to a sustainable future . With plenty of sunshine and incentives from the government, it’s a perfect place to install panels and start making an impact.
Comments