Home Owners Insurance

 

Homeowners insurance carriers vary in how they treat solar panels in terms of premium costs. Depending on your policy and the specifications of your solar installation, a provider can raise, lower or maintain your premium to fit. It is most likely that rates will increase slightly because the insurance company will now be providing more coverage.  Some insurers have been known to lower rates by 2-5% regardless of the type of installation based on the assumption that green homeowners are less likely to file unwarranted claims and are more responsible in general.  Be sure to discuss your policy with a licensed insurance agent before you start a new project. Your insurance company will need more detailed information than the fact that you want to add solar panels. The information they may ask for includes:

 

• Whether the system will be leased or owned

• If owned, the replacement cost for entire unit

• Type and number of panels to be installed

• Where you’re building the project (backyard or rooftop)

• The name of the installation contractor
   

For solar units on roofs, the insurance company will most likely increase your “Dwelling Limit” which is the coverage for the main part of your house.  For ground units, the insurance company will add coverage to “Separate Structures” and will be treated like a gazebo was added in the yard.  Some companies will have a separate coverage entirely.     

 

The most important step in finding how your solar unit relates to your homeowners insurance policy is taking the time to discuss it with your insurance agent.  If you do not have a specified insurance agent please call the contact below, she will be happy to assist you.

 

Charlotte Burr, Insurance Broker in AZ & CA

AZ Insurance Team

480-535-5709

www.AZInsuranceTeam.com