Are my solar panels covered by home insurance?

Fast read

Home and business insurance policies can cover damage to solar systems. So it is recommended to add it as an asset to your home or contents insurance policy or building insurance policy after installation. Solar panels are considered a permanent building fixture by insurers. So they can fall under your home insurance policy.

Adding your solar panel system to your insurance policy simplifies the claims process and protects your valuable investment. However, some types of damage to solar systems are not covered by insurance. This includes performance-related issues, which fall under the performance warranty provided by the solar panel manufacturer.

Will my home insurance cover any damage to my solar panels?

Individuals and society are becoming increasingly aware of the environmental damage they impose via fossil fuels. For example, Australians have controlled their destiny by installing more solar panels on rooftops. Because of the relatively significant upfront expense involved in purchasing solar and battery systems, some homeowners and commercial solar owners worry about potential damages to this asset and whether their home insurance will provide coverage.

Whether by someone throwing something heavy onto the panels and breaking them or through a strong storm or hail.

Will your home insurance cover your solar system?

Your home/business insurance can cover damage to your solar system. Experts recommend adding it as an asset to your home and contents insurance or building insurance policy soon after installation.

Insurers classify solar panels as permanent building fixtures, making them eligible for coverage under your home insurance policy. Including your solar system in your home insurance or directly informing your insurance company about the installation holds numerous advantages, ensuring proper coverage and documentation for your solar investment.

Not only are you protecting your valuable investment. But you are simplifying the claims process should you need to go down that track, for example, by taking photos of your system and storing these images with the PV installer paperwork and warranties in a safe place. You will have the necessary information to undertake a claim in years to come. 

quality install solar system covered by home insurance
Including your solar system in your home/business insurance plan can simplify future claims

Added solar panels to your home insurance policy shouldn’t dramatically increase your premiums, and some insurance companies do not increase their premium at all, as long as the additional value of the solar & battery system is covered in the overall insured value. 

What damage is not covered?

Home insurance policies might not cover certain types of damage to solar panels. For example, it is unlikely that performance-related issues are covered, like if your solar panels are not working to their advertised power output. Then this will fall under the performance warranty provided by the solar panel manufacturer.

Although solar panel performance warranties are extremely difficult to contest, this is because proving the panels’ deterioration via specific testing can be more expensive than the remaining value of the panel.

If your solar system has physical or electrical issues, such as hot spots, delamination, or water ingress, your manufacturer’s product warranty could cover you in some instances. But if these damages have occurred due to poor installation practices. Such as not complying with the manufacturer’s specified clamp zones, the claim needs to go against the installation company. it is not likely that your home insurance will cover such instances. 

Home insurance doesn’t cover the typical wear and tear that solar panels, inverters, home storage batteries and associated fixtures experience over their lifetime. This is why it is best to take what steps you can to ensure that your panels are not susceptible to leaves, branches, and excess dust sitting on them for a prolonged time.

Batteries can be straightforward if you choose a quality installer

battery storage unit in garage
Batteries usually tend to rely on their specific warranty rather than your home insurance

When it comes to batteries they are usually in protected places like the garage. The only valid insurance claim could be a lightning strike. All other fault-related matters usually involve a warranty claim.

Fraud is not a good alternative to buying cheap solar

When it comes to string inverters, owners of very cheap systems have, in the past, when the lower-quality inverters burned out, claimed lightning hit them.

Some home insurance companies approved this type of claim initially, only to recognise the situation when the same system faced lightning strikes “twice” shortly afterwards.  By now, insurance companies have wised up and can tell the difference, and you do not want them to accuse you of insurance fraud.
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