Let The Sunshine In!
Powering homes with solar panels is a trend that is quite literally heating up as more and more homeowners seek to utilize this green energy source. If you are thinking of installing them, plan on more than just the look of your property changing. Your homeowners insurance policy will most likely change, too.
Adding solar panels to the roof of your home is just like building a deck or remodeling your kitchen – it is considered an improvement that increases your home’s value. When its value is increased, so is the amount of money it would take to rebuild it, requiring more insurance coverage. It is important to inform your agent about the number of panels you plan to add, as well as the approximate total cost to add them to your home.
Detached solar panels can also be placed on your property. Unlike the panels that attach to a roof, these free-standing panels are defined differently in your homeowners policy. They are either considered “other structures” or “personal property”, depending on the insurance carrier.
We recommend that you call your agent to discuss coverage for detached panels. Some carriers will offer replacement cost coverage, while others will only settle a loss on a depreciated value. One company might offer coverage for a wide array of perils, while others may limit coverage to a few causes of loss, such as fire, windstorm and vadalism.
Our experienced staff is always here to answer any questions you have about your homeowners policy. Give us a call today to review your coverage.