Solar Panels and Home Insurance in Ontario

Solar panels on roofs

Solar panels are becoming more common every day for residential homeowners. With the rising electricity costs, green initiatives, and lower costs, solar panels will only become more popular as time goes on.

When it comes to your home, it’s not just important to know if your new solar panels will cause any damage to your roof, but it’s also important to know if your home insurance covers them or the liability exposure associated with your solar panels.

Are Solar Panels Covered on My Home Insurance?

Every insurance company has different rules and coverage, but there is a very high chance that your solar panels are not automatically covered on your home insurance.

The majority of insurance companies will require an endorsement to your policy to cover the solar panels and the liability for them.

How Can I Insure my Solar Panels?

You will have to contact your broker to ask about adding an endorsement to your home insurance policy. Most insurance companies will offer a simple endorsement on your policy to add the extra coverage you need.

What is Covered in the Endorsement?

Again, every company will have a different endorsement or wordings for their solar panel coverage. You should ask your broker what is covered by your insurance company on their endorsement wordings.

What you should be looking for is coverage for:

  • Physical damage to the solar panels or the other equipment that generate or convert the solar power.
  • Liability coverage (especially if the equipment is leased)
  • Optional income replacement for the loss of income if the panels become nonoperational. This coverage could also be listed as business interruption coverage.

Why Should I Insure my Solar Panels?

You made a large investment in order to install your solar panels. Your solar panels will hopefully pay for themselves over many years, but if they were to become damaged or completely destroyed, you could lose your investment entirely.

As with all insurance, the purpose of the coverage is to put you back to the situation you were in prior to your loss. With your solar panels, that would mean getting your panels back to operational status so that your investment can continue to earn.

Talk to Your Broker

If you are only considering solar panels, it’s best to talk to your broker beforehand. Your broker should have access to the rough costs associated with the endorsement you would need on your policy so you can make an informed decision.

As with all coverage from insurance companies, there are rules. These endorsements are meant only for personal use solar panels, so if you are installing higher kW panels, these simple endorsements might not be what’s best for you.

There are too many rules and too many companies to keep all of the facts straight when researching on your own. It’s always best to have that conversation with your broker before you make any decisions so that you can make a fully informed decision. No one likes surprises when it comes to spending more money.

If you already have installed your solar panels and you haven’t contacted your broker yet, it’s not too late. Call your broker today and get the coverage you need.