Short answer
If you own the system, a standard homeowners policy usually treats roof-mounted panels as part of the house, so they fall under dwelling coverage for the perils your policy covers. Panels on the ground, a carport or a detached garage usually fall under other-structures coverage instead, which state insurance regulators say is normally limited to about 10% of your dwelling limit. Wear, defects, bad installation, flood and earthquake are typically not covered, and some policies exclude or limit wind and hail.
If you lease the panels or have a PPA, the company that owns them usually insures the equipment, but some contracts make you carry coverage. Either way, tell your insurer about the system and get its answer in writing.
Where the panels sit decides which part of the policy pays
The National Association of Insurance Commissioners describes dwelling coverage as paying for damage to the house and attached structures, and other-structures coverage as paying for structures not attached to the house, such as fences and sheds. Other limits are typically set as a percentage of the dwelling limit (NAIC homeowners insurance overview, updated October 25, 2025). Insurers decide how they classify solar equipment, so treat the table as the usual pattern, not a ruling on your policy.
Your setup | Usual policy section | Usual limit | Ask your insurer |
|---|---|---|---|
Panels on the roof of the house you own | Dwelling (Coverage A) | Your dwelling limit | Does my dwelling limit include the system’s replacement cost? |
Ground mount, carport, or panels on a detached garage or shed | Other structures (Coverage B), or an endorsement | Often 10% of the dwelling limit, shared with every detached structure | Is that limit enough for the array plus my fence, shed and garage? Can I raise it? |
Home battery | Varies with insurer and where it is installed | Varies | How is the battery classified, and are there installation or fire-safety conditions? |
Leased or PPA system | Usually the system owner’s insurance, under the contract | Set by the contract | Does my contract require me to insure the equipment or name the company on my policy? |
Condo or townhome with a shared roof | Association master policy and/or your unit-owner policy | Set by the association documents | Who is responsible for roof-mounted improvements under the association rules? |
Where the 10% comes from: the California Department of Insurance (homeowners one-pager, updated September 2023), the Washington Insurance Commissioner (homeowner insurance guide) and the Maine Bureau of Insurance (consumer guide, updated September 2021) all give 10% of the dwelling limit as the normal other-structures limit, and note that you can buy more.
Example: with $300,000 of dwelling coverage, a 10% other-structures limit is $30,000. That one amount covers the ground-mounted array, the detached garage, the shed and the fence together. Compare it with the system price on your contract before you assume a ground mount is fully insured.
Coverage follows the cause of the damage
Homeowners insurance pays for sudden damage from a covered cause, called a peril. It does not pay because a part wore out. The named perils the Washington guide gives as typical examples include fire, lightning, windstorm, hail, explosion, vandalism, theft and falling objects. Progressive notes that some policies exclude or limit wind and hail for solar panels, and that improper installation and wear are typically excluded (Progressive, checked October 14, 2026).
Usually an insurance question
- Fire, including a house fire that spreads to the array
- Wind or hail, if your policy covers them
- Lightning, and resulting surge damage where the policy includes it
- A tree limb or other falling object
- Theft or vandalism, more often a ground-mount issue
Usually not covered by homeowners insurance
- Flood and earthquake: separate flood policy or earthquake add-on needed (NAIC)
- Wear, gradual output loss, or an inverter that simply fails: check the product warranty
- Defective installation: check the installer’s workmanship warranty, though some resulting damage may still be covered
- Damage from poor maintenance
If a part failed without an outside cause, start with who pays for a solar repair instead.
Check the deductible before you file a hail or wind claim
Your deductible applies to a solar claim like any other. In storm-prone areas many policies use a separate windstorm or hail deductible written as a percentage of the dwelling limit, not a flat dollar amount. The Maine Bureau of Insurance gives the example of a $150,000 dwelling limit with a 1% windstorm deductible: you pay the first $1,500.
Example: on a $400,000 dwelling limit, a 2% wind/hail deductible is $8,000. If hail cracked a few panels and the written repair estimate is lower than that, the claim pays nothing. If the same storm also damaged the roof, the combined roof, panel and removal and reinstallation estimate may clear the deductible. Get the estimate first, then decide.
Before a claim, also ask whether the policy pays replacement cost or actual cash value (depreciated value) for the panels. A depreciated payout on a ten-year-old array can be much lower than the price of new panels.
Leases, warranties and insurance cover different things
Leased or PPA system
Allstate says the leasing company owns leased panels and must maintain and insure them; Progressive notes some leasing companies instead require you to insure them through your own policy or one they offer. Read the insurance and damage sections of your contract and call the company before anyone touches the array.
Homeowners insurance
Pays for covered sudden damage to equipment you own, minus the deductible and up to the limit.
Manufacturer warranty
Covers qualifying product defects. Labor, shipping and roof work are often limited or excluded.
Installer workmanship and roof-penetration warranty
Covers the installation work and leaks at mounting points for a stated term. For example, Sunrun lists a 5-year roof penetration warranty on its plans (Sunrun, checked October 14, 2026). A leak at a mounting bolt may belong here, not with your insurer.
One storm can involve several of these. The insurer may pay for the damaged roof while the leasing company controls who removes and reinstalls its panels.
Tell your insurer about the system
Progressive advises telling your insurer whether you buy or lease. The reason is practical: an owned system raises the cost to rebuild your home, and the Maine guide notes that improvements raise replacement cost and recommends checking your coverage at least once a year. If your dwelling limit is not raised, a large loss can leave you underinsured.
- Send the installed cost, system size, mounting (roof or ground), battery details and whether you own, finance, lease or have a PPA.
- Ask which section covers it, whether your dwelling or other-structures limit should rise, and what the premium change is. Any increase is usually tied to the added insured value; there is no universal solar surcharge.
- Ask about wind/hail deductibles, replacement cost versus actual cash value, and whether a roof claim includes panel removal and reinstallation.
- Keep the contract, permits, final inspection and utility permission-to-operate letter, warranty documents and dated photos of the finished array. These are what an adjuster asks for.
- Ask for the answer as a policy endorsement or written email. A phone summary does not change the policy.
After damage occurs
- Keep people away from broken glass, exposed wiring, batteries and standing water near equipment. Call 911 for fire, and the utility for downed lines.
- Photograph the damage from the ground or a window. Do not climb onto the roof. Save monitoring alerts and the storm date.
- Notify your insurer and the system owner or installer of record. Do not switch equipment back on or move it until a qualified professional clears it.
- Get written scopes for roof work, solar removal and reinstallation, battery work, permits and recommissioning before you sign anything.
Solar insurance questions
Are roof-mounted panels automatically covered?
No. Attachment usually puts them under dwelling coverage, but your limit, exclusions, deductibles and the cause of damage still decide whether a claim pays.
Does homeowners insurance cover hail damage to solar panels?
Often, if hail is a covered peril on your policy. Some policies exclude or limit wind and hail, and many use a percentage deductible for them. Compare the deductible with the written repair estimate before filing.
Does insurance cover an inverter that stops working?
Not if it simply failed. Ordinary breakdown is a warranty question. Insurance may respond if a covered event, such as lightning, caused the damage and your policy includes it.
Who insures leased panels?
Usually the leasing or PPA company, but some contracts require you to carry coverage or name the company on your policy. The insurance section of your contract decides.
What happens if I buy a house that has leased solar panels?
Usually the seller either transfers the lease or PPA to you, which may require the company’s credit check and transfer process, or prepays or buys it out. If you take over the contract, you take on its insurance terms too, so read them before closing and tell your insurer. See getting out of a solar lease for transfer and buyout options.
Will solar panels raise my premium?
They can, mainly because the higher replacement cost may require a higher dwelling or other-structures limit. Ask your insurer for the revised premium before installation so it goes into your payback math.
