Homeowners insurance covers solar panels when damage results from a covered peril such as fire, windstorm or hail. Roof-mounted panels are covered under dwelling coverage (Coverage A). Ground-mounted panels or panels on a detached structure are covered under other structures coverage (Coverage B), set at 10% of your dwelling limit. The cause of damage determines coverage: sudden and accidental events are covered, but gradual deterioration or maintenance failures are not.
Does Home Insurance Cover Solar Panels?
Updated: March 23, 2026
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Key Takeaways
Homeowners insurance covers solar panels attached to your roof under dwelling coverage, while panels mounted on the ground or on a detached structure fall under other structures coverage, which is set at 10% of your dwelling limit.
Coverage to solar panels only applies when damage comes from a covered peril (fire, windstorm, hail, falling objects or vandalism).
Adding solar panels increases your home's rebuild cost, which may require raising your dwelling limit. Filing a solar panel claim follows the same deductible and rate-impact rules as any other property claim.
Does Home Insurance Cover Solar Panel Damage?
REPLACEMENT COST VS. ACTUAL CASH VALUE
If your policy uses replacement cost value (RCV), the insurer pays to replace damaged panels with new equivalents. If your policy uses actual cash value (ACV), the payout reflects depreciation, which can leave a gap on a system that's several years old. RCV coverage is the better choice for solar panel owners.
When Does Homeowners Insurance Cover Solar Panels?
Solar panels are only covered under your home insurance policy if the damage is caused by a sudden or accidental event.
Windstorm or Hail Damage
Panels cracked, dislodged or destroyed by high winds, hailstones or storm debris are covered under dwelling coverage or other structures coverage, depending on mounting type.
Fire and Smoke Damage
Solar panels destroyed or damaged by a house fire, wildfire or smoke exposure are covered. This includes wiring damage caused by fire spreading from the home.
Falling Objects (Tree Limbs, Debris)
A tree branch or other falling object that damages your solar array triggers dwelling coverage for roof-mounted systems.
Vandalism or Theft
If someone deliberately damages your panels or steals components, homeowners insurance covers the loss under the applicable coverage section.
Lightning Strike
A direct lightning strike that damages panels or the inverter system is a covered peril under a standard HO-3 policy.
When Doesn't Home Insurance Cover Solar Panels?
Standard homeowners insurance doesn't cover solar panel damage caused by wear and tear, poor maintenance, faulty installation, flood, earthquake or manufacturer defects.
Wear and Tear or Gradual Deterioration
Panels that degrade over time due to age, UV exposure or weathering are a maintenance responsibility, not an insurable event.
Faulty Installation or Workmanship
Damage caused by an improperly installed system is excluded. Your recourse is against the installer or contractor, not your homeowners policy.
Manufacturer Defects
If panels fail due to a product defect, the manufacturer warranty covers the replacement. Homeowners insurance does not cover defective products.
Flood Damage
Rising water that damages ground-mounted panels or enters your roof system is excluded. You'd need a separate flood insurance policy through the National Flood Insurance Program (NFIP) or a private flood insurer.
Earthquake Damage
Structural shifting or panel displacement caused by an earthquake is excluded from standard homeowners insurance. A separate earthquake insurance policy is required.
Electrical or Mechanical Breakdown
Inverter failures, wiring deterioration or component malfunctions unrelated to a covered peril are excluded. An equipment breakdown endorsement may cover these losses.
Covered scenarios apply only if your policy includes the applicable coverage section. Standard homeowners policies vary; check your declarations page.
Optional Add-Ons for Solar Panel Coverage
Standard homeowners coverage handles most covered perils, but solar panel owners should review their policy for gaps around equipment breakdown, dwelling limits and flood exposure. Several endorsements address the most common coverage shortfalls.
- Equipment breakdown endorsement: Covers mechanical or electrical failure of the inverter, wiring or panel components not caused by a covered peril. Available from insurers such as Universal North America and Nationwide.
- Increased dwelling coverage / guaranteed replacement cost: Raises your dwelling limit to cover the full rebuild cost of your home plus the solar system.
- Flood insurance (separate policy): Covers flood damage to ground-mounted panels. Available through NFIP or private flood insurers.
- Scheduled personal property endorsement (if applicable): For high-value solar battery storage systems that exceed standard sublimits.
Should You File a Claim for Solar Panel Damage?
Filing a homeowners insurance claim for solar panel damage makes sense when the repair cost clearly exceeds your deductible, the event was sudden and accidental (storm, fire, fallen tree), and the peril is covered under your policy. Weigh the net payout against the potential premium increase at renewal before deciding.
Skip the claim if the repair cost is at or only slightly above your deductible, the damage is cosmetic or minor, or you've filed a claim in the past three to five years. Multiple claims within a short period can raise your renewal premium or trigger nonrenewal. For example, if your deductible is $1,000 and the repair costs $1,200, filing for a $200 net payout may cost more in long-term rate increases than paying out of pocket.
How to File a Claim for Solar Panel Damage
Filing a home insurance claim for solar panel damage follows the same process as any property damage claim, but the adjuster will need documentation specific to your solar system.
- 1
Document the Damage Immediately
Photograph and video the damaged panels, mounting hardware, inverter and any affected roofing. Note the date and cause. Save weather alerts or storm reports.
- 2
Contact Your Insurance Company
File within 24 to 48 hours. Provide your policy number, a damage description and the cause. Ask whether solar panels fall under dwelling or other structures coverage on your policy. State Farm and USAA both accept claims by phone or mobile app.
- 3
Get a Repair Estimate From a Licensed Solar Installer
Get an independent estimate from a certified solar contractor before the adjuster visit. That figure is your baseline when the insurer's assessment comes in.
- 4
Meet With the Insurance Adjuster
The adjuster inspects the damage, reviews your documentation and sets the covered loss amount. Walk them through every affected component: panels, inverter, wiring, mounting system and any roof damage from the panel failure.
- 5
Review the Settlement Offer
Compare the payout to your contractor estimate. RCV policies pay the depreciated amount first and release the remainder after repairs are complete. If the offer is short, request an itemized breakdown and negotiate or dispute. See how a homeowners insurance claim works for more detail.
- 6
Complete Repairs and Submit Final Documentation
Use a licensed solar installer. Submit final invoices and proof of repair to release any holdback amount.
Solar Panel Coverage: Bottom Line
Standard homeowners insurance covers solar panels damaged by covered perils like fire, windstorm, hail and falling objects. Damage from wear and tear, faulty installation, manufacturer defects, flood or earthquake is excluded. Review your declarations page to confirm your dwelling limit accounts for the full replacement cost of your solar system, and ask your insurer about an equipment breakdown endorsement to close the most common coverage gap.
Solar Panel Coverage in Home Insurance: FAQ
Does homeowners insurance cover solar panel damage from storms?
Yes, if the storm damage comes from a covered peril (wind, hail, lightning, falling debris). The standard HO-3 policy covers the dwelling on an open-perils basis, which includes most storm damage. Flood damage from a storm surge is not covered — that requires a separate flood policy. Your standard deductible applies to storm-related solar panel claims, and you'll pay the first portion of the covered loss out of pocket.
How does my deductible apply to a solar panel claim?
Your standard homeowners insurance deductible applies to solar panel claims the same way it applies to any property damage claim. If your deductible is $1,000, you pay the first $1,000 of the covered loss.
What if my solar panels are damaged by flooding?
Standard homeowners insurance doesn't cover flood damage to solar panels. You'd need a separate flood insurance policy through NFIP or a private flood insurer. Ground-mounted solar panels are particularly vulnerable to flood risk.
Will filing a solar panel claim raise my homeowners insurance rate?
Filing any property damage claim can increase your premium at renewal. The impact depends on your insurer, claims history and the size of the payout. One claim in a five-year period may have a smaller effect than multiple claims.
Do I need to increase my dwelling coverage after installing solar panels?
Yes, in most cases. Contact your insurer to update your dwelling limit to reflect the added rebuild cost of the solar system. Get an updated replacement cost estimate that includes panel, inverter, wiring and installation labor costs. This helps make sure you're not underinsured if you need to file a claim.
What documentation do I need to file a solar panel damage claim?
Photos and video of the damage, the original installation contract and invoice, a repair estimate from a licensed solar contractor, and any weather reports or storm data from the date of the event.
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About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. He has analyzed the insurance market for over five years, conducting original research for insurance shoppers. His insights have been featured in CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.