Short answer: Usually, if you own them. Rooftop solar panels you own are generally treated as part of your home and covered under dwelling coverage for covered perils like fire, wind, hail and falling objects. Ground-mounted panels may fall under other structures coverage. Leased or PPA panels are typically insured by the solar company. Wear, defects and earthquakes are excluded.
Owned rooftop panels
Panels permanently attached to your roof are typically considered part of the dwelling (Coverage A). If a covered peril damages them, the policy may pay to repair or replace them, minus your deductible.
Make sure your dwelling limit reflects the system's value. Adding solar raises the cost to rebuild your home. Tell your insurer or broker when you install a system. See how much dwelling coverage do I need.
Ground-mounted panels
Panels mounted on the ground, a carport or a detached structure may be covered under other structures (Coverage B), which is often a percentage of your dwelling limit. Check whether that limit is high enough.
Leased panels and PPAs
If you lease panels or buy power under a power purchase agreement (PPA), the solar company usually owns the equipment and insures it. Read your contract to see:
- Who insures the panels
- Whether you must carry certain coverage
- Who pays for removal and reinstallation if you replace your roof
Your homeowners policy still covers your roof and home, and your liability.
What's typically covered
- Fire, including wildfire
- Wind and hail. See wind and hail insurance.
- Falling objects, such as tree limbs
- Lightning
- Theft and vandalism
What's typically not covered
- Wear and tear and gradual deterioration
- Manufacturer defects (covered by warranties)
- Poor installation (often the installer's responsibility)
- Earthquake (needs separate coverage). See is earthquake insurance required in California?
- Flood (needs flood insurance)
- Lost energy savings while the system is down, in most policies
Roof leaks from panel installation
Leaks caused by improper installation are usually not covered as a sudden loss. Check the installer's workmanship warranty, and confirm the installer is licensed. California solar contractors are licensed by CSLB. See does homeowners insurance cover roof leaks.
Battery storage
Home batteries are often treated like the rest of the system. Tell your insurer about them, and follow manufacturer and code requirements for installation.
Will solar raise my premium?
Premiums may go up slightly because your home costs more to rebuild. Ask your broker to review your limits rather than assuming coverage automatically adjusted.
Liability
If a panel falls and injures someone, your homeowners liability coverage may respond. Leased systems may also involve the solar company's insurance.
Official resources
- U.S. Department of Energy – Homeowner's guide to going solar
- California Public Utilities Commission for net metering and interconnection rules
Checklist
- ☐ Tell your insurer about your solar system and battery
- ☐ Raise dwelling or other structures limits as needed
- ☐ Read your lease or PPA for insurance requirements
- ☐ Keep warranties and installer information
- ☐ Ask about earthquake coverage
Common scenarios
Hail cracks several panels on your owned rooftop system. Typically a covered dwelling loss, minus your deductible or any wind/hail deductible.
A leased system is damaged in a windstorm. Usually the leasing company handles it, though damage to your roof may be your homeowners claim.
Panels stop producing because of an inverter defect. Not an insurance loss. Use the manufacturer or installer warranty.
You need a new roof and the panels must come off. Removal and reinstallation aren't usually insured costs. Check your lease or installer agreement.
Wildfire areas
In wildfire areas, solar systems can be damaged by fire or smoke. Make sure your dwelling limit includes the system. If you're on the FAIR Plan, check how the system is covered. See what is a FAIR Plan.
Bottom line
Owned solar panels are usually part of your home for insurance purposes, so the main task is making sure your limits keep up with the system's value. Leased systems shift most equipment risk to the solar company, but your roof and liability remain your responsibility. Read your contract, keep your warranties, and tell your insurer about the system and any battery storage when you install it or make changes, so there are no surprises at claim time.
Contact Alishahi Insurance or call (877) 711-4545. See homeowners insurance.
Frequently asked questions
Does homeowners insurance cover solar panels?
Usually yes for owned rooftop panels, as part of the dwelling, against covered perils like fire, wind and hail.
Who insures leased solar panels?
Typically the solar company that owns them. Check your lease or PPA.
Are ground-mounted solar panels covered?
Often under other structures coverage. Check that limit.
Should I tell my insurer about new solar panels?
Yes. Your dwelling limit may need to increase to cover the system's value.
Does insurance cover solar panel defects?
Generally no. Defects are covered by manufacturer warranties, and installation errors by the installer.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.