Solar panels are a costly undertaking. Especially when you opt for a rooftop solar panel system or build your own solar farm. Some of the common upfront costs involved are land (space), machinery, equipment, panels, and further the cost of maintenance and repairs.
With the rising costs and absence of incentives in several categories of solar farms (like community solar farms), it becomes imperative that one is aware of the manner in which you can ensure your solar panel system.
With no insurance, you might have to deal with the immediate repair costs or replacements, which can prove to do more harm than good for your green energy and low electricity expenses initiative.
In this article, we would understand more about insurance for solar panels, and discuss whether State Farm covers solar panels as well.
We would also be discussing a few other crucial points such as leased solar panels and the requirement of a subsequent policy.
Understanding Insurance for Solar Panels:
Primarily, it is imperative to understand that most home insurance policies would indeed cover the cost of your solar panels as well. Since they are included in the value of your property and home. Thus, solar panels are a part of your home.
The solar panels attached to your roof are considered permanent attachments, and hence are eligible and counted in the home insurance policy as well.
If you are about to purchase a home insurance policy, it is best to understand each clause and also clarify from the insurance agent about the inclusion of insurance for solar panels.
It is advisable that in case your solar panel system is not a permanent attachment to your property, you must strategize or look for a separate policy.
Benefits of Insurance:
There are numerous benefits of insurance for your solar panels, as it helps you cover major threats to your rooftop solar panels, some of them are:
- Theft: Almost all home insurance policies cover the clause for theft or burglary protection. In case any part of your solar panel equipment or system is affected by these, the insurance company can reimburse you and you would not have to pay for it yourself.
- Fire: Short circuits and unexpected fires are not a new problem. They have been causing residential fires in several localities for decades. These fires could be minor or fatal, depending on the amount of damage caused and the area covered. However, having your solar panel system covered by homeowner insurance is a great advantage as it can leave you stress-free and you can focus on other important recoveries than your solar panel.
- Natural Disasters: Most insurance policies would also cover major natural disasters like hailstorms, floods, hurricanes, and storms that may affect your roof and the solar panels.
State Farm Insurance
State Farm is a popular insurance company in the USA that offers financial services, especially for mutual funds and other finance programs.
They also offer lucrative financial protection in case of any damage or destruction to your solar panels through their homeowner’s policy. However, there has been a recent update in State Farm’s homeowner’s policy.
It must be noted that State Farm Insurance no longer covers the equipment or machines generating electricity above 125% of the actual power usage. Thus, it means that you must be below the threshold of 125% to be eligible for covering solar panels within the State Farm insurance policy.
Many experts suggest acquiring an electronic vehicle or increasing the electricity units to help with the threshold requirement or looking to increase the coverage limit of the insurance.
However, it is important to note that insurance companies do not always cover all types of solar panels or threats. Thus, it is a good idea to discuss with your agent whether the purchase and setting up of solar panel systems would be covered by your home insurance policy or not.
In such a case, it is ideal to purchase an additional insurance policy that can cover solar panels as well. With this, you would not only ensure that you do not have to worry about the miscellaneous costs but also that you can proceed and start monetizing your solar panel system by generating profits over the years.
You must be especially careful while installing rooftop solar panels as they can often lead to upfront damage and wear & tear to your roof, for which you would need to pay yourself.
If you reside in a high-risk area or an area more prone to damage, pollution, and unexpected disasters, it is much more crucial to look beyond your home insurance policy and also add a separate policy for covering solar panels.
Leased Solar Panels
In case you do not actually own the solar panels or the land, you probably do not need to worry about the cost of insurance. These kinds of solar panels are mostly covered by a third party or the owner of the land.
Thus, if you are installing solar panels on a lease, you surely need not worry about insurance. Although, it is ideal that you discuss this with your lessor or landlord beforehand to ensure you are not surprised by any lack of information or a loophole.
Thus, to answer the question: Does State Farm cover solar panels? The answer is Yes. State Farm home insurance policies indeed cover insurance for solar panels as well. However, you may need to consider additional factors before relying solely on this policy.
Some other factors which you may consider include a few natural disasters and mishaps which may or may not be covered by your insurance. In case your policy does not cover solar panels or certain disasters, you should try to look for more options, for a subsequent policy that can cover your solar panels as well.
In case you wish to look beyond State Farm insurance, you can also opt for other insurance companies like USAA, Solar Panel Insurance, Progressive Home Insurance, etc.
It is advisable that before dealing with any insurance policy, you must always discuss it with your insurance agent beforehand.