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Adding solar panels to your home insurance policy after installation is generally advisable, as insurance companies typically view them as just another appliance or accessory in your home. This is also not likely to increase premiums
However, you must notify your insurance company about installing a solar panel system and provide details such as the value and manufacturer. In the event of a claim, the insurer will want proof that the solar equipment was manufactured by a reputable brand and installed according to requirements by a recognized and authorised installation company.
It is also recommended to keep documentation of the conversation with your insurance company and any relevant invoices in a safe place in case of a future claim.
Solar panel home insurance
Solar systems are typically viewed by insurance companies as just another appliance or accessory in your home. Therefore adding solar to your home is not likely to add to insurance premiums because insurers are normally willing to cover them at no additional expense and as part of your regular home insurance.
Home insurers’ attitudes and policies must be evaluated company by company, as policies, inclusions, and exclusions differ. Insurers can also be sometimes difficult to deal with when making a claim, as they are known to find loopholes and obscure reasons to obstruct a claim.
Sometimes, people in a hurry say, “I’ve got long warranties with my solar system. So why bother to add it to my home insurance and maybe risk a premium increase due to the solar system addition?”
Advice about home insurance and solar panels
My strong advice to such customers is that it is advisable after your solar system has been installed to call your insurance, tell them that you have a new solar system, and give them the value (before the rebate – as maybe the rebate will be less or ends in the future) and get it added to your regular home content insurance.
In many cases in the past, I have not seen premiums increase due to the addition of a relatively lower-value solar system when compared with the overall value of a home.
So please do not be scared to ring your insurance. Another reason you should mention it to your insurance and not just count on the warranty to cover everything is that there have been incidents of bad weather or flooding, very large hailstones, etc., that could cause damage to your solar system. Such natural event damage, even a lightning strike on the inverter, is not covered by the solar product warranty but is an insurance matter, especially if the insurer knows about your solar system.
One point to consider is that if considerable changes to your home’s construction are being made to accommodate a solar system, which is rare, then maybe a complete re-assessment of their insurance coverage and the amount is recommended.
In case of an insurance claim
Suppose your solar system or home is damaged. In that case, your insurance will almost certainly want proof that the solar equipment was manufactured by a respected brand and installed according to all requirements by a recognised and authorised installation company. Ensure you keep your solar system handover pack in a safe place to refer to it and the accompanying invoices when needed.
The insurer will want to ensure that the solar system’s use and installation are not to blame for the issues. So, while it may appear enticing to save a few bucks today by cutting shortcuts and going for cheap solar, the safety and security of your home and family mean that such savings could provide a false economy.
After you call the insurance, write down in a file note the date, time, and content of the conversation and, if possible, the name of the operator you spoke with. All this documentation can be beneficial in case of any future claim.
