With a declining environment, adding solar panels to your home is something homeowners can do to help. However, it is not something that you can just slap on your roof and call it a day.
There is a certain amount of research that needs to be done starting with how they could affect your home insurance policy.
WHAT ARE SOLAR PANELS?
Solar panels are panels that are mounted onto the roof of your house that collect energy from the sun to generate electricity for your home. Excess energy that is collected that you do not need, is then sent to the power generation company and most times, you are compensated for.
ARE SOLAR PANELS COVERED BY HOME INSURANCE?
Being that solar panels are attached to your house, Powertec Solar Inc. states that as long as you have a policy that covers such things as fire, your panels should be included in the items that are covered. Your insurer may require the panels to be listed with a value indicated, expect to pay a premium for the additional coverage if this is the case.
Make sure to be certain of which events are not covered. We do not have to deal with them often in Ontario, but many policies may not cover damage caused by earthquakes, so check the details of your policy before making big changes to your home.
HOW DO SOLAR PANELS AFFECT MY HOME INSURANCE PREMIUM?
Solar panels help to increase the value of your home and so you may see a slight increase in your premium.
Despite having a jump in your insurance premium, you will notice other benefits such as:
- A decrease in your electric bill.
- An increase in the resale value of your home because of your green initiative.
HOW MUCH INSURANCE COVERAGE WILL I NEED?
Rates differ between providers but generally, you will see numbers such as these when adding solar panels to your home:
- Not connected to the hydro grid: equal to or less than 25% of the amount of insurance stated on the declaration page for this coverage in any 30 days.
- Connected to the hydro grid: if you are not part of the standard offer program, your solar panels cannot be covered.
HOW LONG DO SOLAR PANELS LAST COMPARED TO THEIR WARRANTY?
As with anything, different companies provide differing lengths of time that they will guarantee their product. Generally, according to Solar Direct Canada, solar panels have a warranty for 25 years and if properly maintained, they could last well beyond the expiry of the warranty.
WHERE DO I START WHEN INSTALLING SOLAR PANELS ON MY HOME?
Research! Research! Research!
As mentioned above, solar panels are not something that you can just slap on your house without looking at all that is involved.
Things to consider:
- Cost of installation.
- The amount that your insurance premium will increase.
- Maintenance and the cost of repairs.
An engineer’s report must be obtained to assess the viability of having solar panels installed on your roof. You must then talk to your insurance provider to see what is exactly covered in terms of:
- Repairs in case of damage caused by a covered peril
- How often do the panels need to be inspected or repaired to continue insurability
It is important that, as a community and as humans, we start to take better care of the planet that we call home and there are many ways that we start to do this in a meaningful way.
Solar panels are a great way to help save you money on your energy bills as well as help to contribute energy-efficient electricity to others with the excess that is collected from the panels.
Overall, the small increase in your insurance premium is well worth the amazing impact that you will have on the environment and our planet.
Erie Mutual Insurance proudly serves the commercial insurance, farm insurance, home insurance and auto insurance needs of members throughout Southern Ontario including Haldimand, Niagara and Hamilton.
Please don’t hesitate to contact us with any questions you may have about this or any other topic related to your insurance.
