Does Homeowners Insurance Cover Solar Panels? Check the Policy, System and Contract

The useful answer is written confirmation from the insurer

The U.S. Department of Energy says most homeowners policies cover rooftop panels because an attached system is generally treated as part of the property. That general statement is not a coverage decision for a particular home. Read the policy and ask the insurer or licensed agent to confirm how the proposed system will be classified before work starts.

Tell the insurer exactly what is being installed

• Rooftop, carport, ground-mounted or another location.
• Owned with cash or a loan, leased, or covered by a power purchase agreement.
• Solar panels alone or solar plus a battery.
• Installed contract price and any separate roof or electrical work.
• Installer, license, permits, equipment and expected completion date.

Ask whether the insurer needs the contract, plans, permit, final inspection, photos or proof of interconnection. Keep its answer with the policy instead of relying on a salesperson's description.

Owned, leased, PPA, and ground-mounted: which coverage line applies

A system you own outright — paid in cash or financed with a loan — is an improvement to a structure you own. California's Department of Insurance splits a homeowners policy into Coverage A (the dwelling itself, and things attached to it) and Coverage B (other structures on the property that are not attached to the dwelling), and notes that “Coverage B is normally limited to 10% of the coverage A limit,” though you can buy more for an additional premium. A roof- or wall-mounted system you own is generally an attached improvement — that's a Coverage A question — and the CDI guide tells homeowners to “contact your insurance agent or broker to increase the dwelling limit when appropriate” after a change like this. Put the request in writing: the guide specifically calls for discussing “any modifications to your home, in writing, with your agent, broker, or insurer that may cause the replacement cost of your dwelling limit to increase.”

A ground-mounted array that stands apart from the house is a different question. It may fall under Coverage B rather than Coverage A, and because that coverage defaults to roughly 10% of your dwelling limit, a ground-mount system worth more than that could be underinsured unless you ask your insurer to schedule it separately or raise the Coverage B limit specifically.

If the system is leased or under a power purchase agreement (PPA), you don't own the equipment — the solar company or a third-party investor typically does. Confirm in writing which party is expected to insure the hardware itself; don't assume your homeowners policy extends automatically to equipment you don't own. See how a solar PPA works and buying versus leasing solar panels for how ownership is structured in each case.

Source: California Department of Insurance, Residential Insurance: Homeowners and Renters guide (Form 401, revised January 2026).

Hail, wind, and fire: what your policy covers and what the manufacturer's warranty covers instead

Two different documents respond to two different kinds of damage. Your homeowners (or FAIR Plan) policy responds to a covered peril — a storm, a fire, a falling branch. The panel manufacturer's warranty responds to a defective product or panels that underperform their rated output over time. They are not substitutes for each other.

If your address is on the California FAIR Plan. Homeowners in high wildfire-risk parts of California who can't find or keep standard-market coverage often end up on the California FAIR Plan, which describes itself as “an insurer of last resort, established by statute to provide basic property insurance to Californians statewide when no other option is reasonably available.” The FAIR Plan itself notes that “in the last decade, more Californians have turned to the California FAIR Plan as wildfires have devastated California and some insurers have pulled back from these markets.”

The FAIR Plan's Dwelling policy is a named-peril policy. By its own description, the Dwelling Fire Policy “provides coverage only for damage caused by the specific causes of loss listed in the policy” — Fire & Lightning, Internal Explosion, and Smoke. Windstorm, hail, and theft are not on that list. The FAIR Plan directs policyholders who want broader protection to add a Difference in Conditions (DIC) policy “to supplement your California FAIR Plan policy by covering additional perils.” In plain terms: if your only fire coverage is a FAIR Plan Basic Dwelling policy, hail or wind damage to your solar array needs a DIC policy or another coverage source to respond — the Basic policy alone will not cover it. Confirm with the FAIR Plan or your broker how it treats panels mounted to, or standing apart from, the insured dwelling before you rely on it.

What the manufacturer's warranty covers instead. A solar panel's manufacturer warranty is a separate document from your insurance and covers different things. As one example, REC Group's N-Peak panel warranty guarantees the panel against manufacturing defects for 20 years and against power-output decline for 25 years (98% of rated output in year one, declining toward a minimum of 86%–92% by year 25 depending on the series). It explicitly excludes damage from “abuse, misuse, accident, negligent acts, power failures or surges, lightning, fire, flood, accidental breakage, actions of third parties and other events or accidents outside REC's reasonable control,” plus damage from improper installation and normal cosmetic wear — and it does not cover the labor to remove, transport, or reinstall a panel. In practice: a hailstone that cracks a panel or a windstorm that tears one loose is a property-insurance claim, not a warranty claim, unless the failure traces to a manufacturing defect. Warranty terms vary by manufacturer — read the document that ships with your specific panels. See how solar panel output degrades over time for more on the performance side of that warranty.

Ground-mount and battery storage. A ground-mounted array typically carries more direct wind exposure than a roof-mounted one — another reason to get written confirmation of which coverage line and which perils apply to it. For battery storage, ask your insurer directly whether the battery is covered under the same terms as the panels, whether it needs to be scheduled separately, and what exclusions apply to fire or thermal events tied to the battery. None of the sources checked for this page name batteries specifically, so don't assume the answer either way — get it in writing.

Sources: California FAIR Plan (cfpnet.com) — home page, “About FAIR Plan,” and “Dwelling” policy page; REC Group N-Peak solar panel limited warranty.

Policy pages and terms to check

Start with the declarations page, which the California Department of Insurance describes as the section listing the insured property, coverage limits and deductibles. Then check the coverage form, endorsements and exclusions. Ask which limit applies to the system, whether the limit reflects the completed installation, and whether any separate deductible or restriction applies.

Questions to send the insurer in writing

1. Is this specific system covered once installed, and under which policy section?
2. Does rooftop versus detached mounting change the coverage or limit?
3. Does ownership through a lease or PPA change what I must insure?
4. Do I need a higher dwelling limit, endorsement or separate policy?
5. Which causes of loss and exclusions apply to panels, battery and related wiring?
6. How are removal, reinstallation, roof access and code-required work handled after a covered loss?
7. Will the installation change the premium, deductible, inspection or renewal requirements?

Match the insurance answer to the solar contract

The CPUC consumer guide tells buyers to ask whether insurance comes with the system or whether additional homeowners insurance is needed. It also tells buyers to ask what the contract requires if fire, earthquake or another disaster stops the system from working. For a lease or PPA, identify who owns the equipment, who files a claim, who pays the deductible and who must restore the system. The policy and contract need to describe the same responsibility.

Keep the proof a future claim or home sale may need

Save the signed contract, cash price, financing or ownership agreement, equipment list, warranties, installer and subcontractor licenses, permit, final inspection, interconnection approval, before-and-after photos and the insurer's written response. If roof work becomes necessary, use the removal and reinstallation checklist to separate that scope from the solar repair.

Do not wait for damage to discover the gap

Verify coverage after installation and whenever the policy, system, ownership or roof changes. If damage occurs, protect people first, follow the insurer's notice and documentation instructions, and coordinate roof and electrical work through properly licensed parties. Coverage and payment depend on the actual policy and facts of the loss.