Solar panels are a large investment. Here’s what you need to know about local installation factors, coverage limits, and potential premium changes.
Key Points from Your Austin Insurance Team:
- Without the proper insurance coverage in place, the cost of repairing or replacing your solar panels after a covered loss may be your responsibility.
- Standard home insurance may provide some protection for solar panels, depending on factors such as how and where they are installed.
- Some insurance companies may exclude coverage for damage from certain events, such as wind and hail.
- Solar panels can change what you pay for home insurance if you need to increase your coverage or purchase a separate endorsement.
With Massachusetts experiencing some of the highest electricity rates in the U.S., many residents across the state, especially in Norwell and along the South Shore, are starting to invest in solar panels for the significant savings they can offer.
Before deciding to go solar, however, there are various location-based factors to consider, including roofing concerns and historic-district regulations. Homeowners should also review their insurance policies to address any changes to their coverage needs and premiums in order to avoid unnecessary surprises.
How Much Are Solar Panels in Massachusetts?
Despite the long-term savings opportunity, the initial cost of a full solar panel system can feel like a major investment. A typical residential solar setup in Massachusetts can range from $27,124 to $36,696 before state-provided credits and incentives are applied.
Depending on your specific location, your roof may also require a structural inspection and specialized preparations prior to installation. For example, homeowners in Norwell may need reinforced decking and flashing to withstand the town’s dense canopy and severe nor’easters. These extra measures can add an additional investment of up to $18,000 to your initial investment.
Older homes may also see an added cost for meeting Historic District Commission (HDC) compliance requirements, in terms of the design, materials, and installation timeline.
Without the proper insurance coverage in place, you could be responsible for paying for repairs or replacement out of pocket if your system is damaged or destroyed in a covered event.
Does Home Insurance Cover Solar Panels?
Standard homeowners insurance may provide some protection for solar panels, depending on factors such as how and where they are installed. Every policy is different, but coverage may be extended for:
- Panels that are permanently attached to your home, although damage from certain events, such as wind and hail, may be excluded
- Systems that are mounted on the ground or installed away from your home
Some insurance companies may require you to purchase separate protection for a larger, detached solar system. Your independent insurance agent can help you understand how your specific home insurance policy works.
Will Solar Panels Increase My Home Insurance Premiums?
Solar panels can change what you pay for home insurance if you need to:
- Increase your coverage: Adding solar panels to your property can change how much it would cost to rebuild after a covered loss, so you may need to increase your coverage.
- Purchase a coverage endorsement: If you can only insure your solar panels via a separate endorsement, this extra coverage will likely come with an additional premium.
Whether you have scheduled an appointment for installation or are still considering this investment, discussing how your policy works and how your costs will change before work officially begins will help you plan accordingly.
In particular, you should consider asking your insurance agent the following questions:
- Does my home insurance policy cover solar power systems?
- Are certain types of solar panel damage excluded?
- Am I protected if my home is damaged during the installation process?
- Do I need to increase the amount of coverage on my home?
The Austin team is here to guide you through the process of going solar and to answer any questions you have along the way. Contact us today so we can protect your investment before a claim arises.