How does solar energy affect your home insurance rates?

Solar is still a very popular conversation. Especially with the potential savings you can take advantage of by installing solar panels. But is it worth it to get solar?

On average installing solar panels may save you around 50% of your electricity bill depending on where you live and your state / city regulations and rebates. There are other advantages such as the Government’s feed-in tariff which allow energy suppliers to pay you for the electricity you create. Keep in mind the more solar panels you install, the more energy you will generate. 

Will my solar panels be covered under my home insurance policy?

According to the US Department of Energy’s, National Renewable Energy Laboratory, residential solar energy installations are usually covered under your standard homeowners insurance policy. You’re going to want to check with an agent to confirm that this applies to you, in the city you reside.

Most homeowners policies cover you for particular risks. These risks are often referred to as covered perils. Typically covered perils are the result of disasters, theft or damage from wind or fire.

There are other variables that could effect whether or not your solar panels will be covered under your homeowners insurance policy. One being if they are ground mounted or roof mounted. Depending on where you live and who your insurance company is, your home insurance may be affected. 

How much homeowners insurance coverage should I carry?

If you happen to find out your current home insurance policy covers solar, you may want to go back and check your policy limits. Your new solar panels will improve the value of your home and they will also come with additional expenses if you’re forced to repair or replace them.

With solar being a fairly large financial investment you’re more than likely going to want to make sure they’re covered if the worst were to happen. This could involve increasing your policy limits and making adjustments to your current home insurance policy so that you know you’re covered. 

If you have questions or need additional suggestions, please feel free to reach out to one of our wonderful agents. All of the homeowners insurance professionals at Eugene C Yates Insurance Agency are experts when it comes to getting clients the best policy for their individual needs. Call us today! We’re nice people & we have great rates! 916 313 6100

Before you go out and get solar consider the following

Before you fully invest in getting solar for your home, you may want to consider a few things. The first being whether or not your homeowners association or city has any restrictions regarding solar energy. 

You may need to acquire permits or know the rules and municipality codes for your county. You’re going to want to do your own research and weigh out all the pros and cons to truly figure out if solar is a wise investment for your family. 

Should I inform the homeowners insurance company?

It’s usually always a good decision to let the insurance company know of changes you’re planning on making, before you actually make them. You can use this as an opportunity to find more benefits or disadvantages to getting solar panels. 

Ask questions about whether or not a certain amount of panels will adversely affect your rate and look to see if the increase in insurance premium can justify the amount you save by having solar panels. 

If you have additional questions regarding homeowners insurance, please reach out to us. We would absolutely love to get you better home insurance! Call us today 916 313 6100