Rooftop solar and home batteries have become common, especially in California, where they help homeowners manage electricity costs and keep the lights on during outages. A solar and storage system can add tens of thousands of dollars of equipment to your home. Yet many homeowners never tell their insurer about it, or assume the installer's warranty covers everything. This guide explains how homeowners insurance usually treats solar and storage, and the questions to ask.
Owned vs. leased systems: the first question
- Owned systems (bought with cash or a loan) are generally treated as part of your home. Rooftop panels attached to the house are usually covered under dwelling (Coverage A), subject to the same perils, deductibles and exclusions as the roof.
- Leased systems and power purchase agreements (PPAs) are owned by the solar company. The leasing company usually insures its equipment, and your contract may require you to carry certain coverage, such as liability, or to notify your insurer. Read the contract's insurance and damage sections carefully, and confirm who pays if the panels are damaged in a storm, fire or during roof repairs.
Is your dwelling limit high enough?
Adding solar and a battery increases your home's replacement cost. If you don't raise your dwelling limit, you could be underinsured after a total loss, such as a wildfire, and you might not have enough to replace both the house and the system. Ask your insurer to update the replacement cost estimate after installation.
The California Department of Insurance's homeowners guide discusses underinsurance and estimating replacement cost: CDI – Residential insurance guide.
Ground-mounted arrays, carports and batteries
- Ground-mounted arrays and solar carports not attached to the house may fall under other structures (Coverage B), which often has a lower limit, commonly 10% of the dwelling limit. A large array could exceed it. Increase Coverage B if needed.
- Battery storage systems permanently installed are generally part of the dwelling, but confirm with your insurer, and ask whether any exclusions or requirements apply.
What's typically covered
On an owned system, covered perils generally mirror the rest of your home:
- Fire and lightning
- Wind and hail (subject to wind or hail deductibles where they apply)
- Falling objects such as trees
- Theft and vandalism
What's typically not covered
- Wear and tear, gradual deterioration and manufacturing defects. Those are warranty matters.
- Mechanical or electrical breakdown of inverters and batteries. Some insurers offer equipment breakdown or service line endorsements that can cover this.
- Earthquake and flood, unless you buy separate coverage. See our California earthquake guide.
- Lost energy savings after a loss, unless the policy specifically covers it.
- Poor installation, though resulting damage, such as a roof leak, may be covered depending on the policy.
Roof claims and solar
Solar panels complicate roof claims and replacements:
- Removing and reinstalling panels to repair or replace a roof can cost thousands of dollars. Ask whether your policy covers removal and reinstallation when a covered roof claim requires it.
- If you plan to install solar on an older roof, consider replacing the roof first.
- Penetrations from mounting hardware can cause leaks. Keep installation records and the installer's workmanship warranty.
See our hail and roof claims guide.
Warranties vs. insurance
Solar systems typically come with:
- Product warranties on panels, inverters and batteries, covering defects.
- Performance warranties guaranteeing a minimum output over time.
- Workmanship warranties from the installer.
Warranties don't cover fire, storm or theft damage. Insurance doesn't cover defects. You need both. If your installer goes out of business, workmanship warranties may be hard to enforce, so choose a licensed, established contractor. In California, check the installer's license with the Contractors State License Board.
Liability considerations
If your system causes damage to a neighbor's property, for example a panel blown off in a storm, your homeowners liability coverage would typically respond, subject to policy terms. Selling excess power back to the utility through net metering generally doesn't make you a business for insurance purposes, but if you have a larger system or commercial arrangement, ask your insurer.
Wildfire and battery safety
- In wildfire areas, solar systems can affect firefighting access and roof fire behavior. Follow fire code requirements for setbacks and pathways.
- Battery systems should be installed by qualified installers according to manufacturer instructions, the electrical code and fire code requirements, including location and clearance rules.
- Know how to shut down your system and label disconnects for firefighters.
For broader wildfire steps, see our wildfire mitigation guide.
Telling your insurer
Notify your insurer when you install solar or a battery. It helps ensure your dwelling limit is correct, documents the system for a future claim, and avoids surprises. Adding a system may increase your premium slightly because it increases replacement cost.
Documentation to keep
- Purchase or lease contract, including insurance clauses
- Installation permits and inspection approvals
- Equipment model and serial numbers
- Warranties and installer contact details
- Photos of the installed system
Our free home inventory template is a good place to keep these records.
Solar and storage insurance checklist
- ☐ Confirm whether you own or lease the system
- ☐ Notify your insurer and update the dwelling limit
- ☐ Raise other structures coverage for ground-mounted arrays
- ☐ Ask about equipment breakdown coverage
- ☐ Ask whether panel removal is covered on roof claims
- ☐ Keep warranties, permits and serial numbers
- ☐ Follow fire code and battery safety requirements
- ☐ Consider earthquake coverage
Contact Alishahi Insurance or call (877) 711-4545 to review your homeowners coverage.
Frequently asked questions
Does homeowners insurance cover solar panels?
Owned rooftop panels are usually covered as part of the dwelling, subject to the same perils and deductibles as your home. Leased systems are usually insured by the leasing company.
Will solar panels raise my insurance premium?
They may increase it slightly because they increase your home's replacement cost.
Are ground-mounted solar arrays covered?
They may be covered under other structures, which often has a lower limit. Increase it if needed.
Does insurance cover a failed inverter or battery?
Not usually. Mechanical breakdown is excluded, though equipment breakdown endorsements and warranties may help.
Should I tell my insurer about solar panels?
Yes. It helps ensure your dwelling limit is correct and documents the system for future claims.
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.