Homeowners Insurance and Solar Panels – What You Need to Know!

Home owners Insurance and Solar Panels

Time to Read: 4 minutes

Date: March 16, 2023

Many Texans with homeowners insurance wonder if their policies cover solar powered systems. With more Texans going solar every day, this is an important topic to cover! When it comes to homeowners insurance, there are several questions you may already be asking. Will my monthly insurance payments go up? Will my policy cover my new system? If it doesn’t, then will I need a separate policy just for a solar power system?

With these questions in mind, we wrote this article to explore how homeowners insurance works with solar power systems. 

Most Homeowners Insurance Policies Cover Solar Panels

When it comes to solar power systems, most standard homeowners insurance policies actually cover a rooftop mounted system. Many insurance companies regard a roof-mounted solar power system as a permanent property attachment. That means that the homeowner doesn’t need to get a separate insurance plan for their rooftop solar array.  

The big takeaway is that, while you may not need to change your policy, it may raise the amount you pay for your premium. This happens because you will have to  increase your coverage limits for your solar panels. This usually resulting in a small increase to your premium. A lot of this will have to do with your insurance provider. Additionally, your utility provider may also require you to have another type of insurance. Keep in mind that the price may vary 

Liability insurance and umbrella policies

Depending on where you live, your utility company might require you to have liability insurance. When a utility provider requires customers who install a solar power system to get liability insurance, it’s so that they can keep themselves safe from the legal expenses. The types of legal expenses in this case are usually ones that are the result of injury or malfunctioning net metering systems. An umbrella policy is what customers are able to look into purchasing in this case. This is a type of insurance that you can purchase that adds more liability coverage beyond what your existing policy does. The umbrella policy takes care of the rest if your liability limit for your home is already used up.  

Be sure to talk to your insurance company to make sure that you know everything you need to know about your particular policy.

On top of all this, certain types of solar powered systems can require different insurance policies. 

Not Every Solar Power System is the Same? 

While the majority of homeowners insurance plans cover rooftop solar power systems, additional things or other types of systems may require you to get separate insurance plans. Examples of this include systems like ground mounted solar arrays or exceptionally large solar power systems with a massive number of panels. A separate insurance policy is usually needed to cover ground mounts and wall-mounted solar panels.

How do I Know What’s Covered by my Homeowners Insurance?

Ultimately, you will need to check your insurance plan to make sure that you know what is covered. Your insurance plan will explain the types of damages that are accounted for if your solar power system is covered. These are called covered perils, which are situations that will be covered by your insurance. 

With solar panels, a good example of what might be defined as a covered peril on your plan would be fire damage, a fallen tree, or power surges. Named perils and open perils are also important terms to be aware of

  • Named peril: covers something only if it is specifically named and listed in your policy. 
  • Open peril: also called open perils coverage, covers you against a peril the insurance policy excludes the loss. 

In the end, it is best to reach out to your homeowners insurance provider to find out exactly what your coverages are. 

IES Texas Solar has the Energy Solutions no Matter Your Insurance Situation

Whether you’re just looking to install backup power with a Generac home standby generator or a bullet proof solar power system with backup batteries, IES Texas Solar has it all, especially with summer approaching. Also, hurricane season is just over the horizon, now is the perfect time to switch to solar! 

Disclaimer: IES Texas Solar, as well as its employees and contractors, are not insurance experts and/or insurance providers, nor do they operate in any capacity as insurance experts and/or insurance providers. Please consult licensed professionals for insurance policies and insurance advice.

If you are considering installing a backup generator or switching to solar for your home or business, reach out to us by going to our website,, or by giving us a call at (855) 447-6527.

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