Does Homeowners Insurance Cover Solar Panels? Roof-Mounted, Ground-Mounted and Leased Systems

Quick answer: Usually yes, if you own the system. Under a standard HO-3, roof-mounted solar panels are generally treated as part of the dwelling under Coverage A, and ground-mounted arrays are usually covered as other structures under Coverage B. Sudden damage from covered perils such as fire, lightning, wind, hail and falling trees is covered, while wear, defects, poor installation and gradual deterioration are not. Leased panels and systems under a power purchase agreement are typically owned and insured by the solar company, so read your contract.

Solar panels are a significant investment, and they sit exposed on roofs and in yards through every storm. Before or after installation, it makes sense to understand how your homeowners policy treats them and whether your limits still fit.

This article explains coverage using the Insurance Services Office (ISO) Homeowners 3 Special Form, the model most U.S. insurers adapt. For the overall structure of a policy, see our homeowners insurance guide.

Sources: Insurance Services Office (ISO) Homeowners 3 Special Form (HO 00 03) Coverage A dwelling, Coverage B other structures and Section I exclusions; Insurance Information Institute (Triple-I) consumer guidance on solar panels and homeowners insurance; U.S. Department of Energy (DOE) Solar Energy Technologies Office homeowner guidance; National Fire Protection Association (NFPA) National Electrical Code (NEC) Article 690 on solar photovoltaic systems. Policies differ by insurer and state. This is general information, not insurance advice. Read your own policy and solar contract.

Table of Contents

Where Solar Panels Fit in Your Policy

How a system is mounted usually determines which part of the policy covers it.

System type	Typical coverage section	Limit
Roof-mounted panels you own	Coverage A, Dwelling	Your dwelling limit
Ground-mounted array you own	Coverage B, Other Structures	Shared Coverage B limit, often 10 percent of Coverage A
Solar carport or pergola you own	Usually Coverage B	Shared Coverage B limit
Leased panels or power purchase agreement	Usually the solar company’s insurance	Per contract
Home battery permanently installed	Usually Coverage A	Your dwelling limit

Our explainer on Coverages A through F explains how these sections relate. Some insurers handle solar with specific endorsements or limits, so check your policy and ask your agent.

Covered Causes of Solar Panel Damage

Because Coverage A and Coverage B are open perils in an HO-3, sudden damage to an owned system is covered unless an exclusion applies. Common covered causes include:

Hail. Panels are tested for hail resistance, but large hail can crack the glass.
Wind. High winds can loosen mounts or tear panels from racks. A separate windstorm or hurricane deductible may apply in some states.
Fire and lightning. Fires in the home or system, and lightning strikes, are covered perils.
Falling trees and limbs brought down by wind or another covered peril.
Weight of ice and snow damaging mounts or the roof.
Vandalism and theft, subject to policy conditions.

What Is Not Covered

The same exclusions that apply to the rest of the home apply to solar equipment:

Wear and tear and deterioration, including gradual output decline as panels age.
Mechanical breakdown and latent defects, such as an inverter that fails on its own.
Faulty installation or workmanship. Roof leaks caused by poorly sealed mounts are often treated as workmanship issues, though resulting water damage may be considered.
Flood and earth movement, which need separate coverage.
Animals and pests. Damage from birds or rodents nesting under panels and chewing wiring is generally excluded, though a resulting fire may be covered.

Manufacturer and installer warranties typically address defects and workmanship. Many panel manufacturers offer long product and performance warranties, and installers often provide a workmanship warranty, so keep those documents with your insurance records.

Inverters, Batteries and Electrical Surges

Inverters, optimizers, monitoring equipment and home batteries contain sensitive electronics. Lightning damage is covered. Damage from other electrical surges or sudden breakdown may be limited by exclusions for mechanical or electrical breakdown, depending on your policy. An equipment breakdown endorsement often covers sudden failure of these components, and some insurers specifically include solar equipment in that coverage.

Do You Need to Raise Your Limits?

Adding solar increases the value of what you need to insure. Steps to review:

Tell your insurer before or soon after installation. Some insurers require notice, and failing to tell them can complicate a claim.
Check your dwelling limit. A roof-mounted system adds to the cost to rebuild. Our guide on how much dwelling coverage you need explains replacement cost estimates.
Check your Coverage B limit for ground-mounted arrays. A large array can use most of a 10 percent limit by itself.
Ask about replacement cost versus actual cash value for roofs and attached equipment. Some policies pay actual cash value on older roofs, which may affect panels mounted on them.

Adding coverage usually raises the premium somewhat, since the insured value increases, but the change varies by insurer.

Leased Panels and Power Purchase Agreements

If you lease your system or buy power from a company that owns the panels on your roof, the company usually owns the equipment and carries insurance on it. Read the contract for:

Who insures the equipment and who handles damage claims.
Your responsibilities, such as maintaining homeowners insurance or liability coverage at certain limits.
Damage you may be responsible for, for example if you or your contractor damages the system.
Removal and reinstallation when the roof needs work, including who pays.
What happens when you sell the home, since transferring a lease or agreement is part of the sale.

Your homeowners policy still covers the roof and the rest of the home, and damage the system causes to your house may raise questions about who pays.

Roof Replacement and Solar Panels

Roofs and panels have different lifespans. If your roof needs replacing during the life of the system, the panels must be removed and reinstalled, which adds cost.

When a covered peril such as hail damages both the roof and the panels, the claim may include removal and reinstallation costs. When a roof is simply old, replacement is a maintenance expense, and so is the cost to remove and reset the panels. The DOE suggests considering roof condition before installing solar, since replacing an aging roof first can avoid paying for removal later.

Our guide to roof damage coverage explains how insurers handle storm damage, older roofs and actual cash value roof settlements.

Fire Safety and Code Requirements

Solar systems are installed under the National Electrical Code, which includes Article 690 for photovoltaic systems. Recent editions require rapid shutdown capability so firefighters can reduce voltage in rooftop equipment during an emergency. Local fire codes may also require roof access pathways around panels.

Using a licensed installer, obtaining permits and passing inspections helps with both safety and insurance. Unpermitted work can cause problems at claim time.

Liability and Net Metering Agreements

Some utilities require homeowners with grid-connected systems to sign interconnection agreements, and some agreements have historically required certain liability insurance, especially for larger systems. Your homeowners policy’s personal liability coverage usually satisfies typical residential requirements, but check the agreement and confirm with your insurer if specific limits are listed.

Storms and Solar in Hurricane and Hail Regions

In coastal states and hail-prone regions, solar owners should pay special attention to deductibles. Hurricane and windstorm deductibles are often a percentage of the dwelling limit, which can mean a large out-of-pocket amount before coverage applies. Our explainer on hurricane and wind-hail deductibles shows how they are calculated.

Ask your installer about panels and racking rated for local wind loads, and keep installation records showing the system met code.

Keeping Records of Your System

Good records make a solar claim far smoother. Keep these in one place, with copies stored outside the home or in the cloud:

The installation contract and final invoice showing the system cost.
Equipment model and serial numbers for panels, inverters, optimizers and batteries.
Permits, inspection approvals and the utility’s permission to operate.
Manufacturer product and performance warranties and the installer’s workmanship warranty.
Photos of the array after installation, taken from the ground and, if the installer provides them, from the roof.
Monitoring app history, which can show the date output dropped after a storm.

Maintenance and Routine Care

Insurers expect reasonable maintenance, and solar systems need relatively little. The DOE notes that panels generally require minimal upkeep, though periodic checks help:

Watch monitoring data for unexpected drops in production.
Keep nearby trees trimmed so limbs cannot fall onto the array.
Have the installer inspect mounts and wiring after major storms.
Follow the manufacturer’s guidance before cleaning panels, and avoid climbing on the roof yourself.
Address critter guards if birds or squirrels nest under the panels.

Damage that results from neglect, such as ignoring a loose mount for months, can be disputed at claim time.

Selling a Home With Solar

Solar affects a home sale in a few ways. Owned systems generally transfer with the house, and buyers and their insurers will want documentation. Leased systems and power purchase agreements require the buyer to take over the contract or the seller to pay it off, which can affect the timeline. Lenders may also review solar agreements during underwriting. Telling your insurance agent about the system early helps the buyer get quotes that reflect it.

Condos, Townhomes and Homeowners Associations

In condos and some townhome communities, the association may own the roof, which raises questions about who insures panels installed on it. Read the governing documents and any solar policy the association has adopted, and confirm whether the master policy or your unit-owner policy covers the equipment.

How to File a Solar Panel Claim

Make the area safe. Do not climb onto the roof or touch damaged panels or wiring. Solar equipment can remain energized in daylight.
Shut down the system using the installer’s procedure if it is safe.
Document the damage from the ground with photos and video, and save monitoring data showing changes in output.
Contact your installer for an inspection and written assessment.
Notify your insurer promptly and provide installation records, warranties and permits.
Keep receipts for any temporary repairs.

Frequently Asked Questions

Are solar panels covered by homeowners insurance?

Owned roof-mounted panels are usually covered under the dwelling, and ground-mounted systems under other structures, for sudden damage from covered perils.

Does homeowners insurance cover hail damage to solar panels?

Generally yes, since hail is a covered peril, subject to your deductible and any wind or hail deductible.

Do solar panels raise homeowners insurance premiums?

They may, because they add value to the insured property. The amount varies by insurer and system size.

Who insures leased solar panels?

Usually the solar company that owns them. Your contract describes responsibilities, including any insurance you must carry.

Does homeowners insurance cover lost energy savings if my panels are damaged?

Generally not. Homeowners policies pay for physical damage to covered property, not for the value of electricity the system would have produced. Some lease agreements and production guarantees address lost output, so check your solar contract.

Does my policy cover a solar battery?

A permanently installed home battery is usually treated as part of the dwelling and covered for sudden damage from covered perils. Breakdown from defects falls under the manufacturer warranty, and an equipment breakdown endorsement may add protection.

Does insurance pay to remove panels for a roof replacement?

When a covered peril damages the roof, removal and reinstallation costs may be part of the claim. For an old roof, those costs are typically your responsibility.

Questions to Ask Your Agent

Before or right after installation, a short call with your agent can clear up most uncertainty:

Is my roof-mounted system included in my dwelling limit, or is a separate endorsement needed?
Does my Coverage B limit fit a ground-mounted array?
Does equipment breakdown coverage include inverters and batteries?
Is my roof covered at replacement cost or actual cash value, and how does that affect the panels?
Will adding solar change my premium?

The Bottom Line

Owned solar panels are generally covered for sudden damage under your homeowners policy, through Coverage A for roof systems and Coverage B for ground arrays. Tell your insurer about the system, check your dwelling and other structures limits, understand any lease terms and keep warranties, permits and installation records handy.