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Independent U.S. Solar Guidance

Section: Costs & Savings

Does Homeowners Insurance Cover Solar Panels? What's Actually Included

By ClearWatt Editorial Team · Published October 7, 2026

A yellow federal EnergyGuide label on an electric water heater showing its estimated yearly energy cost
Photo: Tony Webster / Wikimedia Commons (CC BY 2.0)

Short answer: Homeowners insurance usually covers solar panels, but only when they’re added to your existing dwelling coverage limit and only for the perils your policy already insures against, such as fire, wind, hail, and lightning. Ground-mounted systems, wear-and-tear, and normal degradation are typically excluded, and you generally need to notify your insurer after installation to avoid a coverage gap.

How Homeowners Insurance Typically Treats Solar Panels

Most standard homeowners policies (HO-3 forms, the most common type sold in the U.S.) don’t have a separate line item for “solar panels.” Instead, roof-mounted systems are usually treated as a permanently attached part of the structure and fall under the same dwelling coverage (Coverage A) that insures your roof, siding, and framing. That means solar panels are generally subject to the same named perils, deductible, and claims process as the rest of your home.

Ground-mounted arrays are a different story. Because they aren’t physically attached to the house, many insurers classify them under “other structures” coverage (Coverage B), which typically caps out at a percentage of your dwelling limit, often in the 10% range, though the exact figure depends on the carrier and policy. If your system is ground-mounted, it’s worth asking your agent in writing which coverage category it falls under, since underinsuring a $15,000-$30,000 array under a small “other structures” sublimit is a common oversight.

The Federal Trade Commission’s consumer guidance on buying solar recommends reviewing how a system affects your insurance and homeowner obligations before signing a contract, not after installation, precisely because these coverage categories differ by policy type and insurer (FTC, Solar Power for Your Home).

What’s Usually Covered, and What Isn’t

Coverage generally follows the same logic as any other part of your house:

Manufacturer defects are a separate track entirely. If a panel underperforms or fails due to a manufacturing issue, that’s a warranty claim against the manufacturer or installer, not a homeowners insurance claim. Our guide to solar panel warranties explains how product and performance warranties differ and what they actually guarantee.

Does Adding Solar Raise Your Premium?

Adding a solar system usually increases your home’s insured replacement cost, which is often the trigger for a modest premium adjustment, since you’re asking the insurer to cover more value, not because solar panels are inherently riskier to insure. The size of any increase depends on your insurer’s underwriting rules, the system’s cost, and whether it’s roof- or ground-mounted.

Because a solar installation can also raise your home’s assessed value and resale value, it’s worth looking at the insurance question alongside the broader financial picture. Research on how solar affects resale pricing is covered in our breakdown of whether solar increases home value.

Leased and PPA Systems: Who Carries the Insurance?

If you don’t own your system outright, because you’re in a lease or a power purchase agreement (PPA), the insurance picture changes. Under most third-party-ownership agreements, the leasing company or PPA provider retains ownership of the equipment and is contractually responsible for insuring it, while your homeowners policy continues to cover the structure the panels are mounted to. EnergySage’s comparison of leases and PPAs notes that these contracts typically specify who is responsible for maintenance, monitoring, and insurance of the equipment, and that homeowners should confirm these terms before signing (EnergySage, Solar Leases vs. PPAs).

This distinction matters because it also affects your federal tax position: leased and PPA systems generally cannot claim the homeowner-facing federal solar tax credit, since the 25D residential credit expired for systems placed in service after December 31, 2025, under the One Big Beautiful Bill Act, and any credit on a third-party-owned system would instead flow to the commercial owner under Section 48E, not automatically to you (Congress.gov, H.R. 1, 119th Congress; IRS, Residential Clean Energy Credit). If you’re weighing a loan against a lease or PPA for a new system, see our comparison of solar loan vs. lease vs. PPA financing structures.

A Worked Example: Estimating Added Coverage Needs

Here’s a simplified illustration of how a solar installation might affect dwelling coverage and premium exposure. These are illustrative assumptions, not a quote, since actual figures vary by insurer, state, and system.

Item Assumption Estimated value
System size 7.5 kW residential rooftop array —
Installed cost before incentives Based on 2025-2026 national average cost-per-watt figures roughly $18,000-$24,000 (EnergySage, Solar Panel Cost Report)
Dwelling coverage adjustment needed Added to existing Coverage A limit increase roughly equal to installed system cost
Typical deductible on a wind/hail claim 1-2% of dwelling coverage (varies by state and insurer) varies; confirm with your policy
Replacement cost if system is destroyed in a covered peril after 2026 No federal 25D credit available to offset out-of-pocket replacement full replacement cost is your exposure, minus insurance payout

The last row matters more than it might seem. Before 2026, a homeowner replacing storm-destroyed panels could potentially claim the 30% federal credit again on the new installation, which softened the gap between an insurance payout and full replacement cost. With Section 25D repealed for systems placed in service after 2025, that offset is gone for most homeowners, which makes confirming your dwelling coverage limit is high enough to cover full replacement, not just actual cash value, more important than it used to be (IRS, Residential Clean Energy Credit).

Steps to Take Before and After Installing Solar

  1. Call your insurer before installation to ask how the system will be classified (dwelling vs. other structures) and whether your current coverage limit needs to increase.
  2. Keep your installation contract, permit records, and manufacturer documentation in a single file; you’ll need these for both warranty claims and insurance claims.
  3. Confirm your installer carries general liability and workers’ compensation insurance, since damage caused during installation is typically a contractor liability issue, not a homeowners insurance claim. The Treasury Department’s consumer advisory on residential solar contracts recommends verifying contractor licensing and insurance as part of basic due diligence before signing (U.S. Department of the Treasury, Consumer Advisory: Solar).
  4. Update your coverage again after any major system change, such as adding a battery or expanding the array, since each addition changes the insured replacement cost.
  5. Review your policy’s actual cash value vs. replacement cost language, since actual cash value policies factor in depreciation on the system at the time of a claim, which could leave a meaningful gap on an aging system.

Filing a Claim for Storm or Fire Damage

If panels are damaged by a covered peril, the claims process is generally the same as any other dwelling claim: you report the loss, an adjuster inspects the damage, and the insurer pays out based on your coverage limit, deductible, and whether your policy is replacement-cost or actual-cash-value. Where it gets more complicated is documentation. Insurers may ask for the original installation invoice, the system’s specification sheet, and sometimes a letter from the installer or manufacturer confirming the make, model, and output of the damaged equipment, which is another reason to keep that paperwork from day one.

It’s also worth checking whether any remaining equipment, including an inverter or battery, is still under a separate manufacturer warranty that might cover part of the replacement cost independent of your insurance claim. The interaction between a manufacturer’s product warranty and an insurance payout varies by policy and by manufacturer, so it’s worth asking your insurer directly how they handle a claim where part of the cost might be reimbursable elsewhere.

This article is for general information only and isn’t a substitute for reviewing your specific insurance policy with a licensed agent before or after installing solar.

Sources

Frequently asked questions

Does homeowners insurance cover solar panel damage from storms?

In most cases, yes. Roof-mounted panels are typically treated as part of the dwelling and covered against the same named perils as your roof, such as wind, hail, lightning, and fire, subject to your policy's deductible and limits. Ground-mounted systems are often covered under the "other structures" portion of a policy instead, which usually has a lower coverage limit.

Do I need to tell my insurer I installed solar panels?

Yes. Insurers generally expect you to report a solar installation because it increases your home's replacement cost, and failing to disclose it could complicate a future claim. Contact your insurer or agent after installation to confirm the panels are reflected in your dwelling coverage amount.

Will solar panels increase my homeowners insurance premium?

Often, somewhat, because adding a system typically raises the insured replacement cost of your home. The increase is usually modest compared to the value added, but it varies by insurer, panel cost, and whether the system is roof-mounted or ground-mounted.

Who insures solar panels under a lease or power purchase agreement?

Under most lease and PPA structures, the third-party owner carries insurance on the equipment itself, while your homeowners policy still covers the structure it's attached to. Review your lease or PPA contract and your homeowners policy together to confirm there's no gap in coverage.

Written by

ClearWatt Editorial Team

The ClearWatt Editorial Team researches and writes every guide on this site. We work from primary sources — federal and state agencies (EIA, NREL, DSIRE, IRS), legislative text, utility rate schedules, and manufacturer documentation — rather than summarizing other websites' coverage of the same topic. We are not licensed solar installers, financial advisors, or tax preparers, and nothing published here is a substitute for advice from one. When a figure can't be traced to a specific, current source, we say so and give a range instead of a false-precision number. Articles are dated, and we correct confirmed errors promptly. See our Editorial Policy for the full standard every guide is held to, and About & Methodology for the sources we draw from.