Owned vs. leased panels, roof-mounted vs. ground-mounted, hail, roof age, and the questions to ask before you sign.
By Spyglass Insurance Agency · Published · 4 min read · Educational only — not a policy or quote
Solar panels can raise your Texas home insurance premium, mostly because owned panels can increase the amount it costs to rebuild your home, and you may need a higher dwelling limit to cover them. Whether you own them or lease them (or buy power under a PPA) changes who insures the panels. Either way, tell your insurer before or right after installation and confirm how your policy treats them.
They can. Insurers commonly describe owned, roof-mounted panels as part of the house, so the cost of the system becomes part of what it would take to rebuild. Amica notes you may need to raise your coverage limit to cover the system, which could lead to a higher premium depending on how much coverage you add. Nationwide makes the same point: you may need to increase coverage on your home to account for the system, which can raise your premium.
There is no single answer for every company. HSB, a Munich Re company, puts it plainly: different insurers may view the risks of a rooftop system differently, so ask your agent.
If you bought your system (cash or financed), the panels are your property, and your homeowners policy is usually where they are covered.
If you lease the panels or have a power purchase agreement (PPA), the solar company typically owns them. Allstate says leased panels are owned by the leasing company, which must maintain and insure them. Amica says leasing companies often carry their own coverage, and suggests discussing insurance with the leasing company up front. Progressive adds that some leasing companies may require you to insure the panels yourself, so read your contract.
Texas requires solar sellers and lessors to give you written disclosures. The Texas Department of Licensing and Regulation (TDLR) consumer disclosure form identifies the transaction type (purchase, lease, PPA and others) and asks who is responsible for maintenance, including roof removal and reinstallation. Keep that form; your insurer may ask what kind of agreement you have.
Roof-mounted panels and solar shingles are typically treated as part of the dwelling, subject to your policy's limits and exclusions, according to Amica.
Ground-mounted arrays and solar carports are a different case. TDI explains that other structures coverage pays for structures on your property that aren't attached to your house, like detached garages, sheds and fences. Progressive says ground-mounted panels may be covered under other structures coverage, and Nationwide notes that for structures separated from the house, the limit may be 10% of the dwelling limit, and that ground-mounted systems may need an add-on or separate policy. If you have a large ground array, check whether your other structures limit is enough.
Central Texas sees hail. Amica lists wind, hail or flying debris that cracks or breaks panels among the sudden, accidental damage a standard policy may cover. It also lists what usually isn't covered: mechanical breakdown, wear and tear, poor installation, and lost energy production.
Remember your deductible. TDI suggests asking whether your wind and hail deductible is different from the deductible for other damage; if it is, you might pay more out of pocket after a storm.
TDI says some policies pay the full cost to repair a roof at current prices (replacement cost), while others pay less if the roof is older or worn (actual cash value). As roofs age, some companies switch roof coverage to actual cash value, and a roof in poor condition might not be covered at all. TDI also says your insurer will inspect your roof when you apply and may charge more or refuse coverage based on what it sees.
Panels sit on top of that roof. If the roof will need replacing in the next few years, ask your installer about it first, and check who pays to remove and reinstall the panels (the TDLR disclosure form asks this question for leases and PPAs). An insurer won't pay for a new roof just because it's old or worn out, TDI notes.
1) That you added solar, and the date it was installed.
2) Whether you own, finance, lease, or have a PPA, and the solar company's name.
3) Roof-mounted or ground-mounted, and the installed cost of the system.
4) Your roof's age and material.
Then ask: Is the system covered under dwelling or other structures? Do I need a higher limit? Are panels on replacement cost or actual cash value? What is my wind and hail deductible?
Progressive's advice is simple: whether you buy or lease, tell your insurance company you've installed solar panels.
They can. Owned panels can raise the cost to rebuild your home, and if you increase your dwelling limit to cover them, your premium may go up. How much depends on the insurer and how much coverage you add.
Usually not the panels themselves. Leased panels are typically owned and insured by the leasing company, but some contracts require you to insure them, so read your lease and tell your insurer.
Ground-mounted systems are not attached to the house, so they may fall under other structures coverage, which can have a lower limit. Ask whether your limit is high enough or whether you need an add-on.
Hail damage to owned panels may be covered as sudden, accidental damage, subject to your deductible and policy terms. Wear and tear, poor installation, and lost energy production are typically not covered.
It's worth considering. Older roofs may be covered at actual cash value or not at all, and replacing a roof later means removing and reinstalling the panels. Ask your installer and your agent before you sign.
Educational information only, current as of the publish date. Not legal advice and not a guarantee of coverage, eligibility or rates; all policies are subject to underwriting and the terms of the policy.
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