Does Your Photovoltaic System Require Special Insurance?
The sun’s energy is free, but installing a photovoltaic system at your home or business is definitely an investment.
Considering the costs involved, you may wonder whether you need to protect your investment with insurance. The answer depends on several factors that may influence your decision.
You certainly can choose to purchase insurance for your system, but you may not need to.
Photovoltaic Warranties and Performance
Insurance is about minimizing the risk of an investment, but solar panels are an inherently low-risk product.
All of the basic system components are covered by comprehensive warranties. Most solar panels carry 20-to-25-year warranties, and the inverter and batteries are covered for five to 10 years.
Performance is also a factor when thinking about insurance, and solar energy systems rarely break down. The panels themselves have no moving parts and are incredibly resilient. With basic regular maintenance, solar power systems will generate electricity at nearly full capacity for decades.
Your Home Insurance Policy Coverage
Component warranties won’t cover any damage caused by weather or accidents. Fortunately, most insurance companies consider your photovoltaic system a home improvement project, and as such, your homeowners insurance will likely cover it. Most policies automatically cover solar installations, but be sure to verify that fact.
We recommend that you discuss your planned solar project with your insurance agent prior to installation, as your rates may be affected. Depending upon your policy, your premium may stay the same or go up.
In many cases, however, homeowners insurance rates go down as a result of adding a solar power system.
Insurance companies often offer a discount to solar adopters, because it is generally believed that homeowners invested in solar are more responsible and less likely to file unwarranted claims.
Should You Consider Extra Photovoltaic System Insurance?
It is possible, however, that your basic homeowners insurance policy will not cover a solar energy system.
If that’s the case and you prefer not to rely on warranty protection alone, you may be able to add a special rider to your policy to cover the system. You also may consider switching to another provider that understands the value of a photovoltaic system.
Third-party insurance is another option. This type of coverage can insure you against having to pay out-of-pocket for repairs. Risk-averse people whose homeowners insurance already covers their systems also may choose to buy this additional insurance, so that they won’t have to face the expense of their deductible if something does go wrong.
So as you can see, your insurance considerations depend on your current coverage, your financial preferences and your appetite for risk.
No matter what your insurance does or doesn’t cover, Intermountain Wind & Solar is here to provide all the answers you need about solar energy and its many financial benefits. We offer professional system installation to customers in Utah, Colorado, Wyoming, Nevada and Idaho.
Call us today to learn more about how a solar photovoltaic system can benefit you.