Does Homeowners Insurance Cover Solar Panels?

Homeowners insurance typically covers owned, roof-mounted solar panels as part of your home against covered perils like fire, wind, hail, and theft. Coverage for your solar panels comes down to three things: owned or leased, roof or ground, and whether your dwelling limit matches the system’s cost.

Here’s what you need to know.

Are solar panels covered by homeowners insurance?

For most people, yes. You usually don’t need separate solar panel insurance, because homeowners insurance for solar panels is built into your policy. The catch is where on your policy they land, and that changes how much you’re covered for.

Roof-mounted panels

If you own them, roof-mounted panels are treated as a permanent part of your home. That puts them under dwelling coverage (also called Coverage A), the same part of your policy that protects your roof, walls, and built-in fixtures.

Ground-mounted panels and solar carports

Panels on a pole, a frame in the yard, or a carport roof aren’t attached to your house. Insurers usually treat them as other structures (Coverage B), alongside things like fences and sheds.

That coverage is typically capped at a percentage of your dwelling limit, and your other structures share it. A big array can use up the cap fast, which is why an endorsement might be worth asking about.

Leased or PPA panels

With a lease, the solar company owns the panels. With a PPA (power purchase agreement), you pay for the electricity the panels produce instead of owning the system.

Either way, your contract decides who insures and repairs the equipment. Your homeowners policy might not cover it at all.

How different solar setups are covered

Solar setup	Typically covered under	Who insures	Watch out for
Owned, roof-mounted	Dwelling (Coverage A)	You	Your dwelling limit may not include the system’s cost
Owned, ground-mounted	Other structures (Coverage B)	You	The cap on other structures may be too low
Solar carport	Other structures (Coverage B)	You	Shares the same cap as your fence, shed, and more
Leased	Usually not your policy	The solar company, per your lease	Some leases require you to carry coverage
PPA	Usually not your policy	The solar company, per your contract	Your contract may make you responsible for certain damage
Financed (you own it)	Same as owned	You	Your lender may require proof of coverage
Battery storage	Depends on where it’s installed	You, if you own it	Attached and detached batteries can be treated differently

What perils are covered for solar panels?

Dwelling coverage is usually open-peril, meaning your panels are covered for sudden, accidental damage unless your policy specifically excludes it. Common examples:

• Fire: A house fire damages the array along with the roof underneath it.
• Lightning: A strike damages your panels or the wiring connected to them.
• Theft: Someone takes panels off a ground mount or carport.
• Vandalism: Someone smashes panels or cuts the wiring.
• Falling objects: A tree limb cracks several panels in a storm.
• Wind and hail: Hail cracks the glass, or wind rips panels off their mounts.

Most standard policies cover wind and hail damage to roof-mounted panels. Some policies exclude it for certain homes, or apply a separate deductible. Coverage and deductibles can vary by state, so check your own policy.

Solar panels are exposed to the elements. The table below shows what causes the claims on homes with solar.

Share of all claims from homes with solar panels, by cause of loss

Loss type	Percentage of claims
Hail	57%
Wind	27%
Lightning	3%
Freeze event	3%
Roof leak / ice dam	3%
Other	7%

What isn’t covered?

Homeowners insurance pays for sudden, accidental damage. It doesn’t pay for things that happen slowly, or things that were wrong from the start.

Not covered:

• Wear and tear: Panels naturally lose some efficiency over the years.
• Manufacturer or installation defects: That’s warranty territory.
• Improper installation: Mistakes made during the install.
• Lost energy production or savings: If panels are down for repairs, your policy doesn’t pay you back for the electricity you didn’t make.
• Flood and earthquake damage: These need separate coverage.
• Neglected maintenance: Damage that builds up because nobody took care of the problem.

Covered vs. not covered

Covered	Not covered
Hail cracks your panels	Panels slowly produce less power with age
A storm tears the array off your roof	A defect in the panels or inverter (the box that turns solar power into household power)
Someone steals your panels	A mistake made during installation
A tree falls on the array	The electricity savings you lose while panels are down
A fire damages the system	A flood or earthquake (separate coverage)

Note: Panel or inverter breakdowns aren’t covered by your standard policy, but Equipment Breakdown Coverage can step in if you add it. Equipment Breakdown Coverage is an endorsement you can purchase to complement your homeowners or renters insurance, and Lemonade’s list of covered equipment includes solar panels.

How much coverage do you need for solar panels?

Enough to replace the whole system without dipping into savings. Many people come up short because their policy was set before the panels went up.

Update your dwelling limit

Your dwelling limit is what it would cost to rebuild your home. Solar panels add to that number, so it’s worth a quick update.

So what do panels cost? It depends on system size, equipment, and where you live. Berkeley Lab’s Tracking the Sun report found that state-level median prices for systems installed in 2023 ranged from $3.20 to $5.20 per watt before incentives. For a 5 kW (kilowatt) system, that’s roughly $16,000 to $26,000.

Your installer’s contract is the best source for your own cost.

Other structures limit for ground-mounted systems

A ground-mounted array counts toward your other structures limit. So do fences, sheds, and anything else that’s detached.

Add up the replacement cost of all of it to see if your limit is enough.

Here’s an example: with a $500,000 dwelling limit and a 10% other structures default, you’d have $50,000 for all your detached structures combined.

Replacement cost vs. actual cash value

Replacement cost (RC) pays what it costs to buy new panels today.

Actual cash value (ACV) pays what your panels are worth now, after depreciation. That’s the value they lose as they age.

	Replacement cost (RC)	Actual cash value (ACV)
What it pays	The cost of new panels	The cost of new panels, minus depreciation
Older systems	Same payout as a new one	Payout shrinks as the system ages
Best for	Getting you fully back to where you were after a loss	Keeping premiums lower, with more risk on you

Your deductible

Your deductible is what you pay before insurance pays.

There are two kinds:

• A flat deductible is a set dollar amount.
• A percentage deductible is a share of your home’s insured value. On a solar claim, that can mean a much bigger bill for you.

Like we mentioned above, percentage deductibles most often apply to wind and hail, so check whether yours does.

A worked example

This is an illustration, not a quote. The numbers are made up to show how the math works.

A hailstorm damages an entire roof-mounted array that would cost $20,000 to replace. The system is eight years old, and the insurer applies 30% depreciation, which values it at $14,000. Your dwelling limit is $400,000.

	Flat $2,500 deductible	1% deductible ($4,000)
RC payout	$17,500	$16,000
ACV payout	$11,500	$10,000

Same storm, same damage. Depending on your setup, you could pay as little as $2,500 or as much as $10,000 out of pocket. That’s a $7,500 difference.

Do you need to tell your insurer about solar panels?

Yes. Your insurer set your coverage based on the home as it was, not as it is now.

If they don’t know about the panels, your dwelling limit might fall short of the real replacement cost. That can leave you underinsured, and it can turn a claim into a dispute about what was on the roof.

The best time to tell them is before installation, or at the latest when the system goes in.

What to do:

1. Call or message your insurer before the install starts.
2. Share your system size and total installed cost.
3. Tell them who the installer is, and the install date.
4. Say whether the panels are roof-mounted or ground-mounted.
5. Ask whether your dwelling or other structures limit needs to go up.
6. Get the updated coverage in writing.

How do solar panels affect your homeowners insurance premium?

Does home insurance go up with solar panels? Often a little, but it depends on the factors below.

Panels raise your home’s replacement cost, so your dwelling limit goes up. A higher limit generally means a higher premium. Installing panels doesn’t necessarily raise your premium by itself, but you might need to increase your limits to cover replacement.

What shapes the final number:

• Your system’s cost: A bigger or pricier system means a bigger bump to your dwelling limit.
• Your roof’s age and condition: An older roof can affect both your price and your coverage options.
• Where you live: Hail, wind, and wildfire risk can all play a part.
• Your deductible: A higher deductible usually lowers your premium.
• Insurer-specific rules: Some insurers add a surcharge for solar, and others offer discounts.

For a real number, get a quote with the panels included.

Why roof condition matters

Your panels are only as protected as the roof they sit on.

• Roof age: Many insurers pay older roofs on an ACV roof schedule, so the payout shrinks as the roof ages. If the roof under your panels needs repair after a claim, you may pay the gap between its depreciated value and the actual cost.
• Removal and reinstall: If a covered loss damages your roof, the panels may have to come off before it’s repaired. Whether your policy pays for that “detach and reset” varies, so ask before you need it.
• Installation damage: If the installer damages your roof during the install, that’s usually a matter between you and the installer, not your homeowners policy.

Are solar batteries covered?

Sometimes. How a home battery is treated often depends on where it’s installed. Many insurers treat a battery attached to your house like part of the home. A detached battery might fall under other structures, which has a lower limit.

Batteries also carry fire and electrical risk, so make sure a licensed pro installs yours. Ask your insurer how it’s treated, and add it to your cost when you update your limit.

Liability and solar panels

Your liability coverage helps if your equipment hurts someone or damages their property. Think of a panel that comes loose in a storm and lands on a neighbor’s fence.

If your panels are leased, the contract may say who’s responsible. This isn’t legal advice, so if you’re unsure what a contract means for you, ask an attorney.

How to file a solar panel claim

Damaged panels are stressful, but here’s how to file a claim without missing a step.

1. Document the damage. Take photos and videos before you touch anything.
2. Make the area safe. Stay off the roof, and switch off the system if it’s safe to do so.
3. Contact your installer if the system is under warranty or they need to inspect it.
4. File your claim with your insurer.
5. Prevent further damage. Cover exposed areas, like a tarp over a damaged section of roof, and keep your receipts.
6. Get an inspection before repairs. A qualified pro should check the system and roof before anything goes back up.

Before you install solar panels: An insurance checklist

Thinking about going solar? Run through this first.

• Check HOA (homeowners association) and local permit rules. Your local HOA may have rules about whether or how you can install solar panels.
• Tell your insurer before the install starts.
• Review your dwelling limit and your deductible.
• Confirm your roof is in good shape, and document it.
• Read the lease or PPA terms, if you're not buying the system.
• Keep all installer paperwork and warranties together.

Before we go…

Going solar doesn’t have to mean a coverage headache. Most owned systems are covered, and the gaps are easy to close once you know where to look.

Start with three things: how your panels are mounted, whether you own them, and if your dwelling limit reflects what they cost. Get those right, and you’re in good shape.

Want to see what your coverage looks like with solar in the picture? Get a quote for Lemonade homeowners insurance.

Solar panels homeowners insurance FAQs

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A few quick words, because we <3 our lawyers: This post is general in nature, and any statement in it doesn’t alter the terms, conditions, exclusions, or limitations of the policies issued, which differ according to your state of residence. You’re encouraged to discuss your specific circumstances with your own professional advisors. The purpose of this post is merely to provide you with info and insights you can use to make such discussions more productive! Naturally, all comments by, or references to, third parties represent their own views, and Lemonade assumes no responsibility for them. Coverage may not be available in all states. Please note that statements about coverages, policy management, claims processes, Giveback, and customer support apply to policies underwritten by Lemonade Insurance Company or Metromile Insurance Company, a Lemonade company, sold by Lemonade Insurance Agency, LLC.  The statements do not apply to policies underwritten by other carriers.