Solar Panels and Home Insurance in 2026: Coverage, Costs, and Best Providers

Quick Answer

Key Takeaways

• Most standard homeowners policies cover rooftop solar panels under dwelling coverage (Coverage A), but ground-mounted systems may require separate structures coverage
• Solar panels add $80–$250 per year to the average homeowner’s insurance premium, depending on system value, location, and deductible
• State Farm, USAA, and Allstate rank as the top three insurers for solar coverage in 2026 based on claim handling, coverage clarity, and premium reasonableness
• Hail damage is the #1 solar insurance claim, accounting for over 40% of all solar-related claims filed since 2023
• Flooding, ground movement, manufacturer defects, and improper installation are almost universally excluded — requiring separate policies or endorsements
• Documenting your system with photos, receipts, and a professional inspection report before filing a claim can increase approval rates by up to 60%

Does Homeowners Insurance Cover Solar Panels?

Yes — in most cases, standard homeowners insurance covers rooftop solar panels. The Insurance Information Institute (III) confirms that rooftop solar panels are generally considered part of your dwelling, meaning they fall under Coverage A (Dwelling Coverage) in a standard HO-3 or HO-5 policy. However, the specifics depend on how your system is installed, your insurer’s underwriting guidelines, and your policy’s coverage limits.

Rooftop vs. Ground-Mounted Solar Coverage

The distinction between rooftop and ground-mounted solar is critical for insurance purposes:

• Rooftop solar panels are typically covered under Coverage A (Dwelling) because they are permanently attached to your home’s structure. No additional endorsement is usually required.
• Ground-mounted solar arrays are usually classified as other structures and fall under Coverage B (Other Structures). This coverage is typically limited to 10% of your dwelling coverage limit — so if your home is insured for $400,000, your ground-mounted system would be capped at $40,000 of coverage, which may or may not be enough.
• Solar carports and patio-mounted systems may require a specific rider or endorsement depending on your insurer.

How Solar Affects Your Coverage Limits

When you install solar panels, your home’s replacement cost increases. A $25,000 solar system means your insurer needs to cover an additional $25,000 in potential replacement costs. Failing to update your coverage limits after installing solar could leave you underinsured in the event of a total loss (e.g., a house fire).

Important: Contact your insurance agent before and after installation to ensure your policy’s dwelling coverage limit is sufficient. Most insurers require you to disclose solar panel installation within 30–60 days.

How Much Does Solar Insurance Cost in 2026?

The cost of insuring solar panels depends on system size, location, deductible, insurer, and risk factors. Below is a breakdown of average additional annual premiums for solar homeowners in 2026:

Additional Premium by State (Average 7 kW System)

Percentage Impact on Total Premium

On average, adding solar panels to your home increases your total homeowners insurance premium by 4% to 12%. The exact percentage depends on:

• System cost relative to home value — a $30,000 system on a $200,000 home (15%) will impact premiums more than the same system on a $600,000 home (5%)
• Local weather risk — hail zones and hurricane corridors carry steeper surcharges
• Deductible selection — higher wind/hail deductibles (2–5% of dwelling) can offset solar premium increases
• Claims history — prior solar or roof claims can increase premiums by an additional 20–40%

Best Insurance Companies for Solar Panels in 2026

Not all insurers treat solar panels equally. Based on claim satisfaction surveys, policy language transparency, and premium competitiveness, here is how the major providers stack up:

Best Overall: State Farm

State Farm earns the top spot for solar coverage in 2026 due to its straightforward policy language, industry-leading claim satisfaction scores, and reasonable premium increases. State Farm treats rooftop solar as part of the dwelling without requiring a separate endorsement in most states. Their wind and hail coverage is particularly strong, which matters since hail accounts for the largest share of solar claims.

Best for Military Families: USAA

USAA consistently offers the lowest premiums and highest claim satisfaction for solar homeowners. However, USAA is only available to active-duty military, veterans, and their immediate families. If you qualify, USAA’s solar coverage is unmatched — they typically charge 20–30% less than civilian insurers for equivalent coverage.

Worst for Solar: Farmers and Progressive

Both Farmers and Progressive have higher-than-average claim denial rates for solar damage (12–18% vs. the industry average of 6–8%). Farmers is known for requiring extensive documentation — including pre-installation roof inspections and manufacturer certifications — before approving solar claims. Progressive’s third-party claim adjusters often lack solar-specific training, leading to delays and disputes over whether damage is covered.

States Where Solar Homeowners Face Insurance Challenges

Florida

Florida’s hurricane exposure makes it the most challenging state for solar insurance. Key issues:

• Roof age requirements: Many FL insurers require roofs to be under 10 years old for solar installation approval
• Wind mitigation inspections: Mandatory in most counties — solar installations must not compromise roof wind ratings
• Citizens Property Insurance (FL’s insurer of last resort) covers solar but charges $200–$400/year extra
• Non-renewal risk: Some FL insurers have begun non-renewing homes with solar installations older than 15 years, citing roof integrity concerns
• Average solar premium surcharge: $180–$350/year

California

California’s wildfire crisis has reshaped the insurance landscape for solar homeowners:

• FAIR Plan requirements: Homeowners in high fire-risk zones may need to use the California FAIR Plan, which covers solar but with lower limits and higher deductibles
• Non-renewal wave: Over 235,000 California policies were non-renewed between 2020 and 2024 — solar homes were 1.3x more likely to face non-renewal
• Solar battery requirements: Some CA insurers now require battery backup systems to maintain coverage, as solar panels alone don’t provide power during grid outages (which often accompany wildfires)
• Average solar premium surcharge: $150–$300/year

Texas

Texas leads the nation in hail damage claims, and solar panels are particularly vulnerable:

• Hail deductibles: Texas policies often carry separate wind/hail deductibles of 1–5% of dwelling coverage — meaning a $400,000 home could have a $2,000–$20,000 hail deductible
• Tornado alley exposure: North Texas solar homeowners face some of the highest weather-related claim rates in the country
• Insurer restrictions: Some Texas insurers now require impact-resistant solar panels (Class 4 rated) for new installations in hail-prone ZIP codes
• Average solar premium surcharge: $120–$280/year

Louisiana

Louisiana combines hurricane risk, flood exposure, and a struggling insurance market:

• Sky-high premiums: Louisiana homeowners already pay 2.7x the national average for insurance; adding solar increases this further
• Louis Citizens coverage: The state’s insurer of last resort covers solar but with restrictive limits
• Roof-mounted vs. ground-mounted distinction: Many LA insurers will only cover roof-mounted systems under dwelling coverage — ground arrays need separate policies
• Post-hurricane solar claims: After Hurricane Ida (2021), solar-related claim denials in LA spiked by 45%, largely due to disputes over wind vs. flood damage
• Average solar premium surcharge: $160–$320/year

What Is Covered: Solar Panel Insurance Protection

Standard homeowners insurance typically covers the following types of solar panel damage:

Hail Damage

Hail is the most common solar insurance claim, accounting for approximately 42% of all solar-related claims since 2023. Most HO-3 and HO-5 policies cover hail damage to solar panels under dwelling coverage, subject to your wind/hail deductible (which may be different from your standard deductible).

What’s typically covered:

• Cracked or shattered tempered glass
• Damage to photovoltaic cells beneath the glass
• Frame damage and micro-cracks
• Production loss due to hail impact (if verifiable)

Class 4 hail-rated panels (impact-resistant) can reduce premiums by 5–15% in hail-prone regions. Some insurers now require Class 4 panels for new installations in Texas, Colorado, and Oklahoma.

Wind Damage

Wind-related claims represent about 23% of solar insurance claims. Covered scenarios include:

• Panels torn from roof mounts during storms
• Racking system failure due to high winds
• Flying debris striking and damaging panels
• Damage from falling tree branches during windstorms

Important note: If you live in a hurricane zone, your policy may have a named-storm deductible (typically 2–5% of dwelling coverage) that applies instead of your standard deductible.

Fire Damage

Fire is covered under virtually all standard homeowners policies, including:

• Wildfire damage — total or partial destruction of panels
• Electrical fires originating from solar equipment (if not caused by improper installation)
• House fires that damage rooftop panels
• Thermal events — battery storage fires (if caused by a covered peril)

However, arson or intentionally set fires are excluded. Additionally, if the fire originated from faulty installation work, your insurer may subrogate the claim — meaning they pay you, then pursue the installer’s liability insurance.

Theft and Vandalism

Solar panel theft is rare but does occur, particularly for ground-mounted systems and during new construction. Coverage typically includes:

• Theft of individual panels or entire arrays
• Vandalism (spray paint, broken glass)
• Theft of inverters, optimizers, and battery systems
• Damage from attempted theft

Tip: Ground-mounted systems are 3x more likely to be targeted by thieves than rooftop installations. Install motion-activated security lighting and consider anti-theft mounting hardware.

Water Damage (Non-Flood)

Water damage from non-flood sources is generally covered:

• Roof leaks around solar mounting points — if caused by a covered peril (storm damage, ice damming)
• Water intrusion into electrical components due to storm damage
• Plumbing leaks that damage ground-mounted equipment

What’s NOT covered: Water damage from flooding, groundwater, or sewer backup requires separate flood insurance or a water backup endorsement.

What Is NOT Covered

Understanding exclusions is just as important as knowing what’s covered. The following are almost universally excluded from standard homeowners policies:

Ground Movement and Earthquakes

• Earthquakes, landslides, sinkholes, and earth settlement are excluded from standard policies
• If shifting ground cracks your solar mounting system or misaligns panels, you need separate earthquake or earth movement coverage
• This is particularly relevant in California, Oklahoma, and Texas

Flooding

• Flood damage is excluded from ALL standard homeowners policies — there are no exceptions
• If floodwaters damage ground-mounted solar panels, only a NFIP or private flood insurance policy will cover the loss
• Even rooftop panels can be denied if the insurer determines the root cause was flooding (e.g., flood damages the roof structure, which then damages panels)

Manufacturer Defects and Warranty Issues

• Premature panel degradation, defective inverters, and manufacturing flaws are not covered by insurance
• These issues fall under your manufacturer’s product warranty (typically 10–12 years for product, 25 years for performance)
• Insurance covers sudden, accidental damage — not gradual product failure

Improper Installation

• If damage results from faulty installation (e.g., improper flashing causes roof leaks, or under-torqued bolts cause panels to detach in moderate wind), your insurer may deny the claim
• You would need to pursue the installer’s liability insurance or workmanship warranty
• Always hire a NABCEP-certified installer and keep all installation documentation

Wear and Tear and Gradual Degradation

• Normal wear, UV degradation, and expected efficiency decline (typically 0.5–0.8% per year) are not insurance claims
• Delamination, micro-cracks from thermal cycling, and inverter aging are warranty issues, not insurance issues

Pest Damage

• Rodents chewing through solar wiring is a common exclusion in many policies
• Some insurers offer a pest damage endorsement for an additional $30–$80/year
• Prevent with rodent guard mesh around your array

Solar Panel Warranty vs. Insurance: What’s the Difference?

Many homeowners confuse solar warranties with insurance coverage. They serve fundamentally different purposes:

Key takeaway: Warranties and insurance are complementary, not substitutes. You need both for full protection of your solar investment. For a complete picture of solar costs, use our Solar Panel Cost Calculator to model total ownership expenses including insurance.

How to File a Solar Panel Insurance Claim

Filing a solar insurance claim requires careful documentation. Follow these steps to maximize your chances of approval:

Step 1: Ensure Safety First

• Do not touch damaged panels — they may still be generating electricity
• Shut down your solar system using the DC disconnect switch
• Photograph the scene before moving anything or making temporary repairs

Step 2: Document Everything

• Take photos and videos from multiple angles showing the damage clearly
• Record the date, time, and weather conditions at the time of damage
• Gather receipts: original purchase receipts, installation invoices, and any maintenance records
• Obtain a damage assessment from a licensed solar inspector or your installation company (typically $200–$400)

Step 3: Contact Your Insurer Promptly

• Most policies require you to file within 30–60 days of the damage
• Request a claim number and ask specifically about:
  • Which deductible applies (standard vs. wind/hail)
  • Whether your policy covers actual cash value (ACV) or replacement cost value (RCV)
  • If a claim adjuster with solar experience will be assigned

Step 4: Get Multiple Repair Quotes

• Obtain at least 2–3 quotes from licensed solar contractors
• Ensure quotes include matching equipment specifications (wattage, brand, efficiency class)
• Submit all quotes to your adjuster simultaneously

Step 5: Review the Settlement Offer

• ACV settlements deduct depreciation — a 5-year-old panel originally costing $400 might be valued at $200
• RCV settlements pay full replacement cost but may require you to complete repairs before receiving the final payment
• If the offer seems low, request a re-inspection or hire a public adjuster ($300–$500, but they typically recover 20–40% more)

Step 6: Complete Repairs and Keep Records

• Use a licensed and insured solar contractor for all repairs
• Keep all invoices, permits, and inspection reports
• Notify your insurer once repairs are complete — your system’s replacement cost may change

Tips to Lower Your Solar Insurance Premiums

While solar panels do increase insurance costs, several strategies can help minimize the impact:

1. Increase your deductible — moving from a $500 to $2,500 deductible can reduce solar-related premiums by 15–25%
2. Install Class 4 hail-rated panels — impact-resistant panels qualify for discounts of 5–15% in hail-prone states
3. Bundle home and auto insurance — multi-policy discounts of 10–20% are available from most major insurers
4. Add a solar monitoring system — insurers increasingly offer 5–8% discounts for systems with real-time monitoring that can detect electrical issues early
5. Install a whole-house surge protector — reduces fire risk and may qualify for a 3–5% discount
6. Maintain your roof — a roof in good condition (under 15 years old) typically qualifies for better rates. See our Solar Panel Maintenance Guide for roof care tips
7. Choose a higher solar panel wind rating — panels rated for 140+ mph wind loads can reduce premiums in hurricane zones
8. Remove ground-mounted systems if possible — rooftop systems generally carry lower premiums because they’re less vulnerable to theft and flood damage
9. Shop around annually — solar insurance pricing varies by 30–50% between insurers for identical coverage. Get quotes from at least 3 providers
10. Ask about green home discounts — Allstate, Travelers, and Liberty Mutual offer 5–10% green home discounts that apply to solar-equipped properties

Solar Panel Hail Damage and Extreme Weather

Hail damage is the single biggest insurance concern for solar homeowners. Here’s what you need to know:

Hail Damage Statistics (2023–2026)

• Over 3.2 million solar panels were damaged by hail in the U.S. between 2023 and 2025
• The average hail-related solar claim is $8,500 (roof repair + panel replacement)
• Texas, Colorado, Kansas, Oklahoma, and Nebraska account for 68% of all solar hail claims
• A single hailstorm can cause $50,000–$200,000+ in damage to a large commercial solar installation

How Hail Damages Solar Panels

Solar panels are tested to withstand hail up to 1 inch (25mm) in diameter at 50 mph. However, severe storms routinely produce hailstones of 2–4 inches, which will:

• Shatter the tempered glass covering the photovoltaic cells
• Create micro-cracks in the cells that reduce energy production by 10–30%
• Compromise the weather seal, allowing moisture infiltration
• Bend or break the aluminum frame

Protecting Your Panels from Hail

• Install Class 4 impact-rated panels — these withstand 2-inch hail at 90 mph and can reduce insurance premiums by 5–15%
• Consider removable hail guards — mesh screens that can be deployed before storms ($200–$600 for a typical residential system)
• Use predictive weather alerts — services like HailTrace and DTN Storm provide 1–2 hour advance warning to deploy protective measures
• Install at an angle — panels mounted at 30° or steeper deflect hail impacts better than flat-mounted panels

Extreme Heat and Cold

• Prolonged heat above 110°F can reduce panel efficiency and accelerate degradation — some insurers in AZ and NV now consider thermal stress in their underwriting
• Ice dams in northern states can cause water to back up under mounting hardware, leading to roof leaks — an ice and water shield membrane ($2–$4/sq ft) can prevent this
• Snow load — most panels are rated for 5,000+ Pa of snow load (roughly 3–4 feet of packed snow), but excessive accumulation can cause structural damage

Additional Riders and Endorsements You May Need

Standard policies have gaps. Consider these add-ons for comprehensive solar protection:

Scheduled Personal Property Endorsement

• What it does: Lists your solar system specifically by make, model, and value on your policy
• Cost: $40–$100/year
• Benefit: Guarantees replacement cost coverage with no depreciation, regardless of your dwelling coverage limit

Green Home / Solar Energy Systems Endorsement

• What it does: Extends coverage to include removal and reinstall costs (labor to remove damaged panels, repair the roof, and reinstall new panels)
• Cost: $30–$80/year
• Benefit: Ensures you’re not left paying $2,000–$5,000 in labor costs after a covered loss

Water Backup and Sump Overflow Endorsement

• What it does: Covers damage from water backing up through sewers, drains, or sump pumps
• Cost: $50–$150/year
• Benefit: Protects ground-mounted inverters and battery systems in basements

Equipment Breakdown Coverage

• What it does: Covers sudden electrical or mechanical breakdown of solar equipment (inverters, optimizers, batteries)
• Cost: $30–$60/year
• Benefit: Bridges the gap between warranty exclusions and insurance deductibles for sudden equipment failure not caused by a covered peril

Flood Insurance (NFIP or Private)

• What it does: Covers damage from flooding — the most common natural disaster in the U.S.
• Cost: $400–$1,200/year (varies by flood zone)
• Benefit: Essential for ground-mounted systems in any flood-prone area

Umbrella Liability Coverage

• What it does: Provides $1M+ in additional liability protection if someone is injured by your solar installation (e.g., a panel falls on a visitor)
• Cost: $150–$300/year for $1M coverage
• Benefit: Protects your assets in the rare event of a solar-related liability claim

How Solar Panels Impact Home Value and Insurance Together

Installing solar panels typically increases your home value by $15,000–$25,000 (roughly $4 per watt of installed capacity), according to a 2025 Zillow analysis. This increase in value directly affects both your insurance needs and costs:

• Higher replacement cost → potentially higher premiums
• Higher home value → need to increase dwelling coverage limits
• Energy savings → can offset increased insurance costs over time

Learn more about the relationship between solar and property values in our guide on solar panels and home value. If you’re still in the planning phase, our solar panel installation process guide walks through everything from permits to inspection, and our solar panel financing options article covers loans, leases, and PPAs that may affect your insurance setup.

Frequently Asked Questions

Does installing solar panels increase my homeowners insurance premium?

Yes. On average, solar panels add $80–$250 per year to your homeowners insurance premium. The exact increase depends on your system size, location, insurer, and deductible. A typical 7 kW system adds about $120–$180/year. However, this cost is often offset by electricity savings of $1,000–$2,000/year, making solar a net positive investment.

Will my insurance cover solar panel hail damage from a severe storm?

In most cases, yes — hail damage to solar panels is covered under the dwelling portion of a standard HO-3 or HO-5 policy. However, your wind/hail deductible applies, which in states like Texas and Colorado may be 1–5% of your dwelling coverage ($4,000–$20,000 on a $400,000 home). Installing Class 4 impact-rated panels can reduce both your risk and your premium.

Are ground-mounted solar panels covered by standard homeowners insurance?

Ground-mounted solar arrays are typically covered under Coverage B (Other Structures), which is usually limited to 10% of your dwelling coverage. If your ground-mounted system exceeds this limit, you’ll need a scheduled endorsement or a separate policy. Ground systems also carry higher theft and flood risk, which may result in 20–30% higher premiums compared to rooftop installations.

What happens to my solar insurance if my insurer drops me after installation?

If your insurer non-renews your policy after you install solar, you have several options: (1) shop for a new insurer that actively covers solar (State Farm, USAA, and Allstate are solar-friendly), (2) contact your state’s insurer of last resort (e.g., FAIR Plan in CA, Citizens in FL), or (3) look into specialized solar insurance providers like SolarInsure or Clean Energy Credit Union’s panel protection program. Always secure new coverage before your current policy expires to avoid a lapse.

Does home insurance cover solar battery storage systems like Tesla Powerwall?

Generally yes, but with conditions. Battery storage systems like the Tesla Powerwall, Enphase Encharge, and LG Chem RESU are typically covered as part of your dwelling — if they are installed indoors or in a garage. Outdoor battery enclosures may require an endorsement. Additionally, some insurers exclude coverage for thermal runaway events (battery fires) unless you carry equipment breakdown coverage. Always notify your insurer before adding battery storage.

Can I claim solar panel damage on both my warranty and my insurance?

No — you cannot double-dip. If your panel manufacturer covers a specific defect under warranty, your insurer will not pay for the same damage. However, warranties and insurance cover different things: warranties cover manufacturing defects and performance guarantees, while insurance covers sudden accidental damage (hail, fire, wind, theft). File under whichever applies to your specific situation. If both warranty and insurance could apply, most insurers will subrogate to the manufacturer — meaning they pay you, then seek reimbursement from the warranty provider.

How do I prove the value of my solar panels when filing an insurance claim?

To substantiate your claim, provide: (1) the original purchase contract showing system cost, (2) manufacturer invoices for panels, inverters, and racking, (3) installation invoices from your contractor, (4) a current replacement cost estimate from a licensed solar installer (panels depreciate roughly 5–8% per year), and (5) pre-damage photos showing the system’s condition. Having a professional appraisal ($200–$400) can strengthen claims for high-value systems.

Protect Your Solar Investment Today

Solar panels are a $15,000–$35,000 investment in your home — and protecting that investment with the right insurance coverage is just as important as choosing the right panels. Here’s what to do next:

1. Review your current policy — Check if solar is explicitly listed under your dwelling coverage and whether your limits are sufficient
2. Get quotes from 3+ insurers — Premiums for identical solar coverage can vary by 30–50% between providers
3. Ask about solar-specific endorsements — Scheduled property, green home, and equipment breakdown riders can close critical coverage gaps
4. Document your system — Keep photos, receipts, and inspection reports in a cloud backup for future claims
5. Calculate your true solar costs — Use our Solar Panel Cost Calculator to model total ownership expenses including insurance, maintenance, and financing

Ready to maximize your solar savings? Explore our complete Solar Panel Savings Calculator to see your personalized payback timeline, or learn about solar panel financing options to find the best way to fund your installation.