Solar Panels – Here comes the sun

So, you have invested in Solar Panels. That’s great but do you know how it affects your homeowners insurance?

First, did you lease the solar panels or do you own them (after financing them)?

Own them – you need to immediately increase the coverage on your home to cover the cost of the solar panels.  Adding Solar panels is the same as putting on a room addition or adding a bathroom.  You have increased the replacement cost of your home so you insure the extra cost of re-building your home.

Lease them – Read your lease thoroughly to find out who is responsible for insuring them.  Each lease is different.  If you are responsible for insuring them, you need to increase the coverage on your home by the value of the solar panels.

Lastly, if you got a brand new roof as part of that solar panel upgrade, make sure you let your insurance company know. Many times there is a credit or discount for newer roofs.