Solar panels are a great renewable energy source for your home. They directly convert sunlight into electricity, which can be stored and used as needed. Before deciding on solar panels, it’s vital to understand their impact on home insurance.
This blog post will examine the following topics related to solar panels and home insurance:
- Do solar panels affect homeowners insurance?
- Do solar panels increase home insurance premiums?
- Do solar panels impact roof warranty?
- Can solar panels prevent me from getting a mortgage?
- Do solar panels affect appraisal?
Do Solar Panels Affect Homeowners Insurance?
When you install solar panels on your home, the value of your home has the potential to increase. You may need to increase your home insurance coverage to ensure that your solar panels are covered thoroughly in case of damage or loss.
Additionally, solar panels may pose added risks to the house, such as fire, affecting your homeowners insurance policy. It’s important to review your homeowners insurance to understand solar panel system policies and how they may impact it. You can also ask your insurance agent if their company offers solar installation incentives.
Do Solar Panels Increase Home Insurance Premiums?
Typically, solar panels won’t increase home insurance premiums automatically. You may need to raise your coverage roof to account for repairs or replacements on the solar panel system. Solar panel installation has added risks that an insurance company will consider when determining your premiums.
Do Solar Panels Impact Roof Warranty?
In most cases, installing solar panels won’t impact your roof warranty. If a solar power system is installed without considering violation terms like altering the roof’s service by drilling holes, the warranty may be eligible to be voided. Look at the terms of your roof warranty so you’re aware of any factors that may affect it.
Solar panel installations typically involve drilling holes in the roof to mount the panels. However, this process can be carried out without damaging the roof surface, or the installation company may offer coverage for any damage.
Can Solar Panels Prevent Me From Getting a Mortgage?
Solar panels shouldn’t prevent you from getting a mortgage in most cases. Some appraisers might consider solar panels a negative factor in valuing your home. Because of this, it’s best to work with a lender who understands and has experience valuing properties with solar panels. This way, the solar energy system’s value on the home will be adequately accounted for.
Having a lease or loan on your solar panels can also impact the debt-to-income ratio and affect your ability to qualify for a mortgage. Aside from this, outright owned solar panels shouldn’t affect your ability to obtain a mortgage.
Do Solar Panels Affect Appraisal?
Solar panels almost always increase the value of a home. Especially in areas with large amounts of sunlight year-round, homes with solar panels will have higher appraisal value. Generally, solar panels can increase a property’s value from 5% to 20%, depending on location, electricity costs, and energy savings. One 2019 Zillow study showed that solar panels increase appraisal value by 4.1% on average.
Our World Energy Offers Zero Down Solar Options
At Our World Energy, we’re on your side. We want you to thrive on independent, renewable energy. We collaborate with various solar panel companies to offer our clients exceptional warranties, ensuring they have the finest solar experience.
With over four decades of experience and locations throughout the U.S., we’re well-equipped to serve you and your home.
Contact us today to discover more about us and our services.