The considerable amount of savings solar power can give is irresistible. This is why more and more households are installing their solar panels.

However, while it’s legal to have a solar power system in your own home, some legal matters about your property should be considered. This includes your insurance.

Does your home insurance cover your solar power system?

The first thing that you want to know is if your home insurance covers your solar power system. In most cases, as long as your solar panels are installed directly to your house, such as your roof, they are covered by home insurance. 

This falls under the “covered perils” clause in most insurance policies. It states that if any area of your house gets damaged by natural disasters and other stated perils, your insurance provider will cover the repair or replacement of the said parts–including your solar panels.

However, it’s important to note that insurance policies are different from one another. So, it’s best to revisit your agreement before installing your solar panels.

Can installing solar panels increase your home insurance?

Yes. In most cases, installing solar panels can increase the cost of your home insurance. 

You’d need to do hardware and electrical modifications to your home to get a useful solar energy source. These kinds of improvements are considered “upgrades” on most home insurances.

Furthermore, installing solar panels also adds risk to the overall structure of your home. Thus, on paper, your house becomes more prone to damage than others.

However, the best thing about this is that the value of your house increases if you install solar panels. You can get a markup of at least 5% on your current market value if you’ve completed a fully-functional solar power source. 

This means whatever increase your home insurance providers give you will be compensated with the increased value of your property.

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