Insuring a home with solar panels

Do you have to tell your insurer about solar panels?

Yes, as a rule. Policies are written on the basis of what was disclosed, and a major addition to the building changes the risk and the replacement cost. An undisclosed system can create a dispute at claim time. Call the broker or insurer, say what is planned, and ask for a written reply.

Some insurers add the panels to the dwelling coverage with a higher limit. Others require a rider or an endorsement. Premiums may rise modestly, or not at all, depending on the company, the system value and the region. There is no standard answer, which is why asking beats guessing.

What should you ask the insurer?

• Is the system covered as part of the building, and is the limit high enough to rebuild it?
• Does the policy include hail damage to panels, and is there a separate or larger deductible?
• Is loss of production or inverter failure covered, or is that a warranty matter?
• What documents are required: permit, inspection record, installer invoice?
• Does the coverage change if the system is leased rather than owned?

For a leased system, the contract often places insurance duties on one party or the other, which is one more reason to read it, as the financing guide suggests.

How worried should you be about hail?

Alberta has a well-known hail belt, and southern Alberta in particular sees severe storms in summer. Panels are tested to withstand hail of a standard size, and most storms do no harm, but a large event can crack glass. Check the product's hail rating with the installer and compare it with the exposure at your site, then ask how your policy treats hail on the roof. The maintenance guide explains how to inspect after a storm, and the warranty guide clarifies what the manufacturer will and will not cover.

Drake Landing's collectors, mounted on garage roofs in the same hail-prone region, were designed as glazed flat-plate units meant to survive prairie weather; the solar collection page has the details of the array.

What about fire?

Fire involving a solar system is rare, and most causes trace to poor installation or damaged connections. A permitted and inspected system reduces the risk, and an insurer will usually ask for the inspection record. Rapid shutdown equipment lets firefighters de-energise the array. The permits guide explains why the paperwork is more than a formality.

What if the claim is large?

Keep photographs, serial numbers, the invoice and the production data. After damage, avoid climbing on the roof, and call the installer and the insurer. A claim that covers the array may also need a contractor to remove and reinstall the panels around a roof repair, which is a cost worth asking about before a loss, not after.

What if the system is leased or financed?

Then the contract matters as much as the policy. Some leases make the owner of the panels responsible for insurance on the equipment, while others require the householder to carry it and name the lessor. A lender with a security interest may ask to be listed as well. These are administrative steps, but missing one can create trouble after a loss.

Ask the insurer to review the contract, or at least to say in writing which party covers what. Where the answer is unclear, ask the installer or financing company to explain in their own words and put it in an email. A short written trail is cheap and useful. Questions about how leases and loans differ more broadly are covered in the financing guide.

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