📝 Protecting Your Investment: Insuring Your Solar Power System

Most homeowners assume their solar panels are automatically covered, but you must contact your insurance provider to ensure proper coverage.

1. Owned Systems (Dwelling Coverage)

If you purchase or finance your system, it is considered a fixture of the home.

• ✅ **Coverage Type:** Solar panels are usually covered under the 'Dwelling' portion of your standard homeowner's insurance policy.
• ✅ **Action Needed:** You must increase your Dwelling coverage limit to reflect the new, higher replacement value of your home, including the solar system cost.
• **Perils Covered:** Damage from fire, hail, wind, lightning, and vandalism.

2. Leased Systems (Third-Party Coverage)

If you lease or have a PPA, the third-party company is responsible for insurance.

• ❌ **Your Policy:** Your policy generally does not cover the leased equipment, but always check the PPA contract for details on liability.
• **Liability:** Ensure your homeowner's policy still covers potential liability (e.g., injury to a worker or guest related to the panels).

Check Your Deductible

Make sure your deductible amount is reasonable for a potential claim. Since the replacement cost of a full array is high, a low deductible protects you from significant out-of-pocket expenses in the event of major damage. 💡