Quick answer
Most standard homeowners policies cover rooftop solar panels as part of your dwelling. Installing them raises your home's replacement cost, so your premium will likely climb about $10 to $30 a month. Before they go live, tell your insurer, check that your dwelling limit covers the added value, and ask whether you need an endorsement.
Most standard homeowners insurance policies cover rooftop solar panels as part of your dwelling — but installing them raises your home’s replacement cost value, which means your premium will likely climb $10–$30 a month. Before your panels go live, notify your insurer, verify your dwelling limit covers the added value, and confirm whether your carrier needs a separate endorsement or standalone solar policy.
Does Home Insurance Cover Solar Panels?
Yes, roof mounted panels usually count as part of your dwelling, like shingles, so your standard policy covers them subject to deductible and limits.
Yes, in most cases. If your solar panels are bolted to your roof, your insurer will likely treat them the same way it treats your shingles — as part of the dwelling itself. That means they’re covered under your standard homeowners policy, subject to your deductible and coverage limits.
That said, “in most cases” is doing real work in that sentence. A handful of variables determine exactly how your panels are classified and whether your existing limits are high enough to protect them.
When Solar Panels Are Covered Under Dwelling Coverage
Rooftop panels that are permanently attached to the structure typically fall under Coverage A — dwelling coverage — in a standard HO-3 policy. If a covered peril (a windstorm, a hailstorm, a fire) damages them, your insurer pays to repair or replace them, minus your deductible.
The catch: dwelling coverage is capped at your policy’s replacement cost limit. A 20-panel system can add $20,000–$40,000 or more to your home’s total replacement cost. If you installed panels after you bought your policy and never adjusted your dwelling limit, you could be underinsured.
When Solar Panels Are Treated as Separate Structures
Ground-mounted solar panels — the kind installed in your yard rather than on your roof — are a different story. Because they’re detached from the main dwelling, most carriers classify them under Coverage B (other structures), which is typically capped at 10% of your dwelling limit. On a $350,000 policy, that’s $35,000. It might be enough; it might not. Check your math before assuming you’re fully covered.
What Perils Are Typically Included
Standard HO-3 policies cover solar panels against the same open-peril list as the rest of your home: fire, wind, hail, lightning, vandalism, and theft. Flood and earthquake are excluded — same as always — so if you live in a flood zone or a seismically active area, you’ll need separate coverage for those risks.
Do solar panels void homeowners insurance? No. Installing solar panels does not void your homeowners insurance policy. Carriers are well aware that solar is mainstream now. What matters is that you notify your insurer before or immediately after installation so your policy reflects the updated replacement cost.
What insurance company covers solar panels? Most major carriers cover rooftop solar panels under standard dwelling coverage. State Farm, USAA, Allstate, Liberty Mutual, and Nationwide all handle solar in some form, though the specifics vary by state and policy type.
How Much Does Home Insurance for Solar Panels Cost?
The short answer: not much more than you’re paying now, but not nothing either.
How Solar Panels Affect Your Home’s Replacement Cost Value
Solar panels increase the cost to rebuild your home from scratch, and that’s what replacement cost value (RCV) measures. A professionally installed residential system costs roughly $15,000–$30,000 on average before incentives. Your insurer needs that figure baked into your dwelling limit — otherwise a total loss leaves you short.
Average Premium Increase After Adding Solar Panels
Because panels raise your RCV, your premium goes up proportionally. Most homeowners see an increase of $10–$30 per month, though systems in high-risk states (more on California below) can push that higher. The exact jump depends on your current premium, your insurer’s rate structure, and how much value the panels add.
Solar Panel Insurance Cost Per Month
To put a real number on it: if your annual premium is $1,500 and your panels add $25,000 to your dwelling limit, expect to pay roughly $120–$360 more per year — or $10–$30 more per month. That’s a rough industry estimate, not a guarantee, since individual carrier pricing varies.
Does homeowners insurance cost more if you have solar panels? Yes, but modestly. The increase reflects the higher replacement cost of your home, not a surcharge for having panels. If your current dwelling limit already had room to absorb the added value, your premium increase may be minimal.
How Much Does Home Insurance Go Up With Solar Panels?
Usually only a little: the increase mostly comes from raising your dwelling coverage to replace the panels, and some insurers charge nothing extra.
Factors That Determine the Premium Increase
Several variables drive how much your premium actually rises:
- System size and cost — a $40,000 system adds more to your RCV than a $15,000 one
- Carrier rate tables — each insurer prices dwelling coverage differently per $1,000 of value
- Your location — high-risk states for wind, hail, or wildfire carry higher base rates, so the marginal increase on a larger dwelling limit is steeper
- Roof condition and age — if your installer upgraded your roof, that might actually offset some of the premium increase
- Your current deductible — higher deductibles keep premiums lower regardless of panel value
Reddit Users Report Real-World Premium Changes
Homeowners discussing solar panel insurance on Reddit generally confirm the $10–$30/month range, with some outliers. A common thread: people who forgot to notify their insurer and discovered coverage gaps after a hail claim. A few reported that carriers required a separate endorsement for panels not covered by the base policy — something they only learned when filing a claim.
Tips to Keep Your Premium Low After Installation
- Get competing quotes from at least three carriers before and after installation
- Ask about a wind or hail mitigation discount if your installer used impact-resistant mounting hardware
- Bundle auto and home with the same carrier for a multi-policy discount
- Consider a slightly higher deductible to offset the premium increase from expanded dwelling coverage
Best Home Insurance for Solar Panels
If you’re shopping for homeowners insurance coverage that handles solar panels well, a few carriers stand out.
Does State Farm Homeowners Insurance Cover Solar Panels?
Yes. State Farm covers rooftop solar panels under its standard dwelling coverage. Agents generally recommend increasing your Coverage A limit to reflect the added replacement cost. State Farm doesn’t publish a specific solar endorsement — the panels are just part of the home — but you should confirm current limits with your local agent since state-specific rules apply.
USAA Solar Panel Insurance
USAA covers solar panels for eligible military members and their families under standard dwelling coverage. USAA is consistently rated among the top homeowners insurers for claims satisfaction, which matters when you’re filing a claim on a $30,000 solar system after a hailstorm.
Other Top-Rated Companies That Cover Solar Panels
| Carrier | How Panels Are Covered | Notes |
|---|---|---|
| State Farm | Dwelling (Coverage A) | Increase dwelling limit after install |
| USAA | Dwelling (Coverage A) | Military members only |
| Allstate | Dwelling or endorsement | Varies by state |
| Liberty Mutual | Dwelling (Coverage A) | Confirm limit is adequate |
| Nationwide | Dwelling (Coverage A) | Ask about Green Home endorsement |
| Lemonade | Dwelling (Coverage A) | Popular with tech-forward buyers |
How to Compare Quotes After Going Solar
Get the solar system’s final installed cost from your contractor before you shop. That number is what you’ll use to update your dwelling limit. If you’re comparing homeowners insurance quotes that cover your solar panels, bring that figure to every quote conversation.
What Insurance Companies Cover Solar Panels?
Most homeowners insurers cover roof mounted solar panels as part of your dwelling coverage, so ask your current carrier before shopping for a specialist.
Companies That Include Panels Under Standard Dwelling Coverage
Most national carriers — State Farm, USAA, Allstate, Liberty Mutual, Nationwide, Travelers — cover rooftop panels as part of dwelling coverage with no special endorsement required. You just need to make sure your dwelling limit is high enough.
Companies That Require a Solar Panel Endorsement
Some regional carriers and smaller insurers treat solar panels as a scheduled item requiring an endorsement (a policy add-on that specifically names the panels and their value). This is more common in states where solar installations are newer or where wildfire and wind risk make carriers more cautious. Always ask directly: “Do my solar panels need a separate endorsement under this policy?”
What Insurance Companies Cover Solar Panels in California and Florida
In California, solar panel coverage has become complicated because some carriers have exited the market entirely due to wildfire risk. The California FAIR Plan — the state’s insurer of last resort — covers solar panels as part of the dwelling but has more limited coverage than a standard HO-3. In Florida, hurricane risk drives similar dynamics; not every carrier writing policies there will extend full coverage to solar panels without an endorsement or rider.
Separate Solar Panel Insurance: When You Need a Standalone Policy
What Separate Solar Panel Insurance Covers
A standalone solar panel insurance policy (sometimes called solar equipment insurance) covers your system for things a homeowners policy might not: production loss when panels underperform, equipment malfunction, and inverter failure. Some dedicated solar insurers also bundle in coverage for the battery storage systems that increasingly accompany solar installations.
Is Solar Insurance Worth It?
For most homeowners, no — your standard homeowners policy covers the major risks (fire, wind, hail, theft) and a standalone policy adds cost for coverage you may never use. But if your installer doesn’t offer a production guarantee, if your system includes a battery storage unit worth $10,000+, or if your carrier explicitly excludes solar equipment, a standalone policy makes sense.
Best Separate Solar Panel Insurance Options
- Sunrun and other installers often bundle protection plans that cover equipment failure
- Palmetto offers a monitoring-plus-protection plan for systems it installs
- Specialized insurers like GreenStar or sector-specific MGA programs cover larger commercial and residential solar arrays
Separate Solar Panel Insurance Cost
Standalone solar insurance typically runs $10–$20 per month for a standard residential system, depending on system size and location. That’s on top of your homeowners premium, so weigh it against what your existing policy already covers before adding it.
Home Insurance for Solar Panels in California
California is the nation’s leading solar state — and also one of the hardest places to get robust homeowners insurance right now.
California-Specific Coverage Rules and Carrier Requirements
Several major insurers have stopped writing new policies in California or have non-renewed existing policyholders in high-risk wildfire zones. For solar panel owners, that creates a real problem: if your carrier exits the market, you may end up with the California FAIR Plan, which offers more limited coverage and may not fully protect a $30,000 solar system without supplemental coverage added through a separate “Difference in Conditions” (DIC) policy.
How Much Does Home Insurance Go Up With Solar Panels in California
In California, the base cost of homeowners insurance has been rising sharply due to wildfire risk, often independent of solar panels. Adding panels can push premiums up more than the national $10–$30/month average if you’re already paying elevated wildfire-zone premiums. Some California homeowners report increases of $40–$60/month or more after installing solar, depending on their carrier and location.
What Insurance Companies Cover Solar Panels in California
Carriers still writing new homeowners policies in California include Chubb, CSAA (AAA), Mercury, and Wawanesa. State Farm and Allstate have paused new business in much of the state. Check the California Department of Insurance website for the current list of admitted carriers — it changes frequently.
How to Notify Your Insurer and Update Your Policy
Call your agent or insurer before installation, share the system cost and installer details, then raise your dwelling coverage and request an updated declarations page.
What to Tell Your Insurance Company Before Installation
Contact your insurer before the panels go in, not after. Give them:
- The total installed cost of the system (panels, inverter, mounting hardware, labor)
- Whether the installation is roof-mounted or ground-mounted
- Whether the system includes battery storage and its value
- Your installer’s name and license number (some carriers ask)
Ask your agent explicitly: “Does my current dwelling limit cover this, or do I need to increase it? And does this require an endorsement?”
Policy Endorsements vs. Increasing Your Dwelling Limit
These are two different tools. Increasing your dwelling limit means your Coverage A maximum goes up — the panels are automatically included as part of the home. An endorsement specifically schedules the solar equipment as a named item, sometimes with its own sublimit. Either can work; what matters is that the panels are covered and that the dollar amount is adequate.
Documents to Keep on File After Installation
Keep digital and physical copies of:
- Final installation contract with itemized costs
- Manufacturer warranties for panels and inverter
- Permit and inspection sign-off from your local building department
- Updated declarations page from your insurer showing the new dwelling limit
- Photos of the completed installation
If you ever file a claim, these documents will cut weeks off the settlement process.
Do solar panels void homeowners insurance? No. Properly installed solar panels, permitted and inspected, do not void your homeowners policy. What can create coverage problems is failing to notify your insurer and leaving your dwelling limit unchanged after installation.
Frequently Asked Questions
Does homeowners insurance cost more if you have solar panels?
Yes, slightly, because the panels raise your home’s replacement cost and therefore your dwelling limit, typically adding $10 to $30 a month.
Yes, but the increase is usually modest — around $10–$30 per month for most homeowners. The premium goes up because solar panels increase your home’s replacement cost value, which means your dwelling limit needs to be higher. The panels themselves aren’t penalized; your insurer is simply charging more to cover a more valuable structure.
Do solar panels void homeowners insurance?
No, a permitted, inspected, properly attached system leaves your policy in force, and the only risk is being underinsured if you never told your insurer.
No. Solar panels do not void your homeowners insurance. As long as the installation is permitted, inspected, and properly attached, your policy remains in force. The one risk: if you don’t notify your insurer and your dwelling limit is too low to cover the added value, you could be underinsured — but that’s an underinsurance issue, not a voided policy.
What insurance company covers solar panels?
Most major national carriers cover rooftop solar panels under standard dwelling coverage, including State Farm, USAA, Allstate, Liberty Mutual, Nationwide, and Travelers. Regional and smaller carriers may require a separate endorsement. Always ask your insurer directly whether panels are included and whether your current dwelling limit is sufficient.
Is solar insurance worth it?
Usually not, since your homeowners policy covers fire, wind, hail, and theft, unless you have pricey battery storage, an exclusion, or want malfunction coverage.
For most homeowners, a separate standalone solar policy isn’t necessary because standard homeowners insurance already covers the big risks — fire, wind, hail, theft. A standalone policy makes more sense if your system includes expensive battery storage, if your carrier explicitly excludes solar equipment, or if you want coverage for production loss or equipment malfunction that a homeowners policy won’t touch.
Does your homeowners insurance go up if you install solar panels?
Usually yes, about $10 to $30 a month, because the panels raise your dwelling limit, though California homeowners may see bigger increases.
Yes, in most cases. Solar panels raise your home’s replacement cost, so your dwelling limit — and therefore your premium — should increase to reflect that. Expect a typical bump of $10–$30 per month nationally, though homeowners in high-risk states like California may see larger increases depending on their carrier and location.
Why is it so hard to sell a house with solar panels?
It’s usually the lease or loan, not the panels: buyers balk at inheriting years of payments, while owned systems rarely cause friction.
Financed or leased solar systems can complicate a home sale because the buyer may have to assume the loan or lease agreement. Some buyers are hesitant to take on a solar lease with years remaining. Owned systems generally don’t create the same friction and can actually add to resale value — but the paperwork, loan payoff, or lease transfer adds steps to the closing process that can slow things down.
Why are people getting rid of their solar panels?
Money and hassle: higher premiums or lost coverage in wildfire states, hard to transfer leases, and in California, weaker payback from utility rate changes.
A few reasons come up regularly: rising homeowners insurance premiums in wildfire-prone states, difficulty getting coverage when carriers exit high-risk markets, frustration with lease agreements that are hard to transfer, and older systems whose panels or inverters have degraded below acceptable efficiency. In California specifically, utility rate changes have reduced the financial benefit of selling excess power back to the grid, making the payback period longer than originally estimated.