Do solar panel installations increase your home insurance? You’re either a person who asks this question from the minute you think about making a change to your home, or you don’t realise it’s a question at all. Until, that is, you’ve gone and done whatever it is that you’ve been thinking about doing. Hopefully, if you’re the former, this blog will answer the question for you and hopefully, if you’re the latter, this blog will give you both the heads up to think about it…and the answer.
This guide will look at how you might go about finding out whether your current home insurance policy has you covered. If it doesn’t, it will show you how to go about getting it covered. As with everything, it’s nicer to have this information before you need it.
IMPORTANT. As with any advice relating to insurance, be sure to check with your insurers and your policy Ts&Cs.
The main topics we’ll cover:
- Getting your solar panels insured
- How the cost of your homes insurance could change
- Getting payouts for your solar panels
While it may not immediately hit home that adding solar panels is a significant undertaking and could impact your cover we will always advise you to give your provider a call. It’s the quickest way to get an answer about your current policy.
Getting cover for your solar panels
In many instances, a lot of home insurance policies now cover solar panel installations as standard. That means that your policy will remain unchanged and your premiums won’t go up. They are often considered to be a permanent fixture so can come under your building insurance. Even still, it’s always important to check.
If your policy doesn’t have you covered as standard, your provider may offer to do so and increase your premiums or they may refuse to cover them altogether. If a refusal is the answer we’d suggest getting onto an insurance comparison site and finding a better deal elsewhere.
How the cost of your home insurance can change
Solar panel installations over the past number of years have both decreased in cost but also increased the value of homes nationwide. If the value of your home increases, your insurance provider may look to increase the value of your insurance to reflect this. If you jump from one bracket to another, this could impact your insurance policy pricing.
If this does happen, don’t forget to weigh up the reduced cost of your energy bills and efficiency against a price rise. You would also be wise to remember that if you produce excess energy using your solar installation you could be in a position to sell that surplus back to the national grid. You can read more about that here.
Getting pay-outs for solar panels
A sentence we trot out frequently across our blogs is that solar panels last upwards of 25 years. That’s a lot of time. Unfortunately, most providers are unlikely to cover ‘wear and tear’ damage which means you won’t be in a position to claim for new ones on your home insurance policy when the time comes to remove them or replace them (for what to do when it comes to recycling your panels, you might find this interesting).
It is a good idea to read through the terms and conditions of your policy to see what is included. it might be that you have accidental damage, which works a little differently and might give you some peace of mind. You could always ask about adding additional cover if you felt it wise to do so.
As with all home insurance policies, you are under an obligation to your part in keeping your contents and your home safe and secure. If, for example, your panels were stolen as a result of negligence or carelessness, it’s unlikely you’d receive a pay-out.
Other things to know
We touched off it briefly above but paying a little more for your home insurance may be a positive indication that your home has increased in value. That said, there are always limits to the maximum value they will agree to pay-out for your home so it’s important you’re aware of what that is. Check these numbers when taking out any policy.
As with all insurance policies, it does pay to shop around and use comparison sites, such as Bonkers to see if you’re getting the best value for money. Cheapest is not always the right option but most expensive isn’t always the right option either. Just make sure that you get what you need covered to the level that makes you comfortable.
Caldor are specialists in both residential and commercial solar panels. Discover our green solutions to generate optimal returns.
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