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When you invest thousands of pounds in a solar panel system, protecting that investment becomes crucial. Yet insurance is one of the most overlooked aspects of owning solar panels. Many homeowners in the North East install comprehensive solar systems without fully understanding how this affects their home insurance or what additional coverage they might need. This guide cuts through the confusion and explains precisely what you need to know about insuring your solar panels.
Do Solar Panels Affect Your Home Insurance?
The short answer is yes, but probably not in the way you think. Solar panels are considered a permanent fixture of your home, similar to a conservatory or extension. This means they should be covered under your existing home buildings insurance, but there are important caveats.
Most standard home insurance policies will cover solar panels as part of the building structure, assuming the total value of your home plus the solar installation doesn’t exceed your insured amount. However, this isn’t automatic. You have a legal obligation to inform your insurance provider when you install solar panels, as failing to do so could invalidate your entire policy.
The good news is that solar panels rarely increase insurance premiums significantly. Many insurance providers don’t charge extra at all, while others might add £20-£50 annually to your premium. Some insurers even offer small discounts, recognising that homes with solar panels are often better maintained and owned by more conscientious homeowners.
What Your Buildings Insurance Should Cover
Standard building insurance should protect your solar panels against the same perils that threaten your home: fire, storm damage, theft, vandalism, and accidental damage. This coverage extends to the panels themselves, the mounting equipment, inverters, and the wiring that connects everything.
If a storm tears panels from your roof, your building’s insurance should cover both the panels and any resulting roof damage. If lightning strikes your home and damages the inverter, that should be covered, too. If thieves steal panels from your roof (thankfully rare, but it does happen), your building insurance should reimburse you for their value.
However, there’s a critical distinction between damage and maintenance. Insurance won’t cover gradual deterioration, wear and tear, or damage resulting from poor maintenance. If your panels stop working because connections fail due to age, that’s your responsibility as the homeowner.
Battery Storage and Contents Insurance
While solar panels themselves fall under building insurance, battery storage systems occupy a grey area. Some insurers consider batteries part of the building structure, while others classify them as contents, similar to a boiler or heating system.
If you have battery storage, clarify with your insurer how they classify it. If it’s considered contents, you may need to increase your contents insurance limit to account for the battery’s value, which can be £3,000-£8,000 or more, depending on capacity and brand.
Common Insurance Exclusions
Understanding what your insurance won’t cover is as important as knowing what it will. Typical exclusions for solar panel insurance include wear and tear, gradual deterioration, mechanical or electrical breakdown, damage caused by vermin or insects, and losses resulting from poor artistry during installation.
This last point underscores the importance of choosing appropriately qualified installers. If panels fail or cause damage because they were incorrectly installed, your insurance may refuse the claim, leaving you to pursue the installer directly. This is why MCS certification and proper installer insurance are so crucial.
Many policies also have coverage limits for specific items. Your policy might cover up to £10,000 or £15,000 for roof-mounted equipment, but a comprehensive solar and battery system could exceed this. Check your policy limits and increase them if necessary.
Installer’s Insurance During Installation
Before installation begins, verify that your installer carries adequate insurance. Reputable companies should have public liability insurance covering at least £2 million, plus professional indemnity insurance. This protects you if something goes wrong during installation.
If a scaffold collapses and damages your property, if an installer drops a panel through a skylight, or if installation work causes water ingress that damages your interior, the installer’s insurance should cover repairs. Never allow work to proceed without confirming this coverage is in place and current.
Request proof of insurance before any work begins, and don’t accept verbal assurances. Legitimate companies will provide insurance certificates without hesitation.
How to Notify Your Insurance Provider
When you’re ready to inform your insurer about your solar panels (which should be before or immediately after installation), have the following information ready: total system cost, including installation; panel specifications and quantity; battery storage details, if applicable; installation date and installer’s company name; and MCS certification number.
Most insurers handle notifications through a simple phone call or online form. They’ll update your policy to reflect the additional value and ensure your solar system is covered. Get written confirmation of this coverage—an updated policy schedule or a formal letter acknowledging the modification.
Warranties vs Insurance: Understanding the Difference
Solar panel warranties and insurance serve different purposes, and it’s important not to confuse them. Manufacturer warranties cover defects in materials and artistry, guaranteeing that panels will maintain specified performance levels for 25 years or more.
Installation warranties from your installer cover artistry and should guarantee that the system was installed correctly and will function as designed. Reputable installers offer artistry warranties of 5-10 years.
Insurance, on the other hand, protects against unexpected external events: storms, theft, accidental damage, and fire. Warranties don’t cover these scenarios. You need both—warranties for performance and quality, insurance for unforeseen disasters.
Keep all warranty documentation with your home insurance papers. If you make a claim, insurers may request proof that the equipment was warranted correctly and maintained, which could affect claim settlements.
What to Do If You Need to Make a Claim
If your solar panels are damaged, document everything immediately. Take photographs from multiple angles to show the extent of the damage. If the damage affects your roof, take interior photos as well to report any water ingress or structural issues.
Contact your insurer promptly—most policies require notification within a specific timeframe, often 24-48 hours for damage events. Don’t begin repairs before the insurer assesses the damage unless immediate action is necessary to prevent further loss.
Obtain repair quotes from qualified solar installers. Your insurer will likely want multiple quotes and will assess whether repairs or replacement are more appropriate. Don’t feel pressured to accept the cheapest quote if you have concerns about quality—work with your insurer to find a solution that correctly restores your system.
Moving House with Solar Panels
Solar panels complicate property sales slightly from an insurance perspective. Until completion, the panels remain your responsibility and should stay on your home insurance. Inform your insurer of the impending sale and when coverage should terminate.
For buyers, mortgage lenders will scrutinise solar installations to ensure they don’t affect the property’s mortgageability. Lenders want confirmation that panels are owned outright (not leased), installed adequately with certifications, and covered by appropriate insurance.
If you’re buying a property with existing solar panels, verify that the seller has maintained insurance coverage throughout their ownership. Obtain copies of installation certificates, warranties, and any insurance documentation.
The Bottom Line for North East Homeowners
Properly insuring your solar panels needn’t be complicated or expensive. For most homeowners, existing buildings insurance provides adequate coverage with minimal premium increase, provided you notify your insurer and ensure coverage limits are sufficient.
The key actions are straightforward: inform your insurer before or immediately after installation, verify your installer carries proper insurance before work begins, keep all documentation, including warranties and certification, review policy limits to ensure they cover your system’s value, and understand what’s excluded from coverage so you’re not surprised if you need to claim.