Do Solar Panels Increase Homeowners Insurance? Here’s the Scoop
Installing solar panels can boost your home’s value and lower utility bills, but what about insurance? Some Colorado homeowners notice a small bump in their premium, others don’t see any change at all. Below, we’ll explain why that might happen—and why most owners find the benefits far outweigh any added cost.
TL;DR
Adding solar panels may slightly increase your homeowners insurance because they raise the home’s replacement value.
The premium difference is often minimal compared to your monthly savings on electricity.
Many insurers view solar as a standard home improvement, easily folded into existing coverage.
Solar also tends to enhance property value, check out our article here.
1. Why Insurers Might Adjust Your Policy
Solar panels improve your home’s overall worth, so insurers may increase premiums to cover their potential replacement. Think of it like adding a new room—there’s more property value at stake. The good news? Most customers report only modest adjustments.
2. Coverage for Weather and Repairs
In places like Colorado, where hail and snowstorms can happen, having the right coverage ensures you’re protected if panels ever need repair. Many policies treat solar as part of your dwelling, so a call to your agent clarifies whether your roof and panels are jointly covered.
3. The Small Premium vs. Big Benefits
Even if your premiums rise slightly, that cost is often overshadowed by your solar energy savings and increased property value. Over time, panels typically offset more in utility bills than any extra insurance expense. It’s an investment in eco-friendly living that can pay you back for decades.
4. Easy Steps to Confirm Coverage
Call Your Agent: Ask how solar is classified—some companies treat it as standard home improvement, others see it as separate equipment.
Request a Coverage Update: Provide your panel specs to ensure your replacement value is accurate.
Enjoy Peace of Mind: Once confirmed, you’re good to go. No hidden surprises later if hail or storms strike.
Ready to See If Solar’s Right for You?
Visit our custom quote page to get a free, instant estimate—no credit check required. Or give us a call at 970-SUNDOGS (970-786-3647) and learn how our hassle-free installations make going solar simpler, smarter, and well worth any minor insurance adjustment.
