Are solar panels covered by insurance?

Adding a solar power system to your home presents a great opportunity to save a bundle on your monthly power bills but also to do your bit for the environment. A new solar system can mean a significant financial investment, just like your car or your caravan it’s a good idea to protect your investment with insurance.

The good news is that most insurers will cover your new solar panels and associated solar power components in your home and contents or building insurance policy (classifications can vary with providers). This is because the solar power system is attached to your home as a permanent fixture much like the hot water system or split or ducted air conditioner is.

Protecting your solar panels

Once your solar power system is installed contact your insurance provider to give them the required details. They may need to note its size and specific components, or they may only need to know that it is installed.

Ensure you increase the amount you are insured to cover the solar system if anything happens to it or your home. Increasing your cover may mean an increase in your premiums. Make sure you have enough coverage if a full replacement is required.

Check your Product Disclosure Statement for details on how the addition of solar affects your specific policy. Be sure to check the ‘We do not cover’ section as well to identify any situations that you are not covered for. Ensure your policy covers all likely natural events which could cause damage to solar components and panels such as hail, lightning, storms, cyclones, floods, and high winds.

Solar components, panels, and mounting systems are designed to withstand quite a lot of what our tough Australian climate throws at them. Manufacturers put a lot of research and development to ensure their products last for many years in exposed conditions. However, everything has limits, which is why good insurance is a great safeguard.

Rooftop installations are usually identified under standard cover, however, if your panels are ground-mounted or on any other structure, you will need to check with your insurance provider for specific requirements.

Top tips to safeguard your solar system

• Only use trusted accredited solar installers and repairers who use top quality components.
• Check the warranties of the solar components as well as the installation workmanship and performance warranty. Note warranties usually cover faults or malfunctions in the system but don’t cover natural disasters, you’ll need insurance for this.
• Notify your insurer once the panels are installed.
• Increase your insured amount enough to cover a complete replacement if needed.

So, are solar panels covered by insurance? The short answer is yes. But as with all things to do with insurance there are variables. Check with your insurance provider for specific details to protect your solar system.