How Much Does Home Insurance Go Up with Solar Panels? A Simple Guide by Arenahub Global

Definitely if you decide to install solar panels in your home, you are automatically sure of saving money that you could have used for electricity bills, so it’s no surprise that many people are now deciding on choosing Sola over other sources of power generation.

However one question most people going for solar always ask is

“How much does home insurance go up with solar panels?”

Not to worry, is this blog post, we’ll try to explain the level of effects solar panels can have on your home insurance, we’ll tell you the different factors that might change your premium as well as how you can be able to keep cost as low as possible

How Does Home Insurance Work with Solar Panels?

The essence of having home insurance is to help protect your home and whatever that is in it from damages by some disasters like fire, storms or even theft.

If you manage to add solar panels to your home,they automatically become a part of your property that’s insured.

What we’re saying in essence is that your insurance company is going to take them into account whenever they’re calculating the total cost of your policy.

A lot of people are always worried that if they install solar in their homes, it’s going to make their insurance premium go up a lot.

While it’s true that there’s going to be an increment in the premium, however it’s not going to be as high as a lot of people are speculating it to be, it’s going to be just a very small increase, and trust us it’s going to be worth it.

Do Solar Panels Really Increase Your Insurance Premium?

Yes Insurance companies do increase your insurance premium when you install a solar panel in your home, however the price is generally smaller so it has little or no significant Influence in the status of your insurance premium.

Also Read: can You Put Solar Panels on a Manufactured Home?

You should also know that a lot of companies do see solar panels as an actual improvement to your home because they automatically increase the value of your home, because of that, you should keep the following points in mind

1.Minimal Increase:

According to research, it has already been established that the cost for insurance after you might have installed a solar panel is usually around 1% and 5% of your total premium.

Let’s say for example if your yearly insurance premium is around$1,000 Once you install a solar panel, you might see an increase of only $10 to about $50 every year, that’s hardly significant you know.

2. Quality Matters:

If you get your solar installed properly by professionals like our experts here at Arenahub global, then you should know that your risk of incurring damages is already significantly lower.

The reason is very simple, a good Installation simply means there’s going to be way smaller impact on the cost of your insurance.

3.Improved Home Value:

Solar panels will automatically boost the value of your home leading to some insurance companies actually seeing this as a positive addition, they might decide to make some adjustments to your coverage amount so as to make sure your home has full protection, but we can assure you that the extra cost is very low and way Worth’s it.

4.Low-Risk Technology:

Since solar panels are a low risk technology, there’s little or no chance of them causing problems like fire if you install them very well and maintain them correctly.

  Things That May Influence Your Insurance Costs

Even though we know that the extra cost that comes with insurance costs on your solar panels are way low, however there are several factors that could well have a significant Influence on how much your home insurance might actually go up after you’ve installed solar panels, we’ll take a look at some of these factors.

1.Quality of Installation:

If you installed your solar panels through the expertise of experienced professionals, the chances of the panels getting damaged will significantly reduce.

At Arenahub global, we make sure that we follow all installation safety standards when installing solar panels for our customers, with this you are sure of a very small insurance increment.

2. Type of Solar Panels:

There are different types of solar panels, for example we have the monocrystalline and the polycrystalline. if you buy panels that have better safety features with even higher efficiency, then they’re definitely going to have a way smaller impact on your insurance premium.

3.Your Local Weather and Location:

If for instance you live around locations that always experience very extreme weather conditions or there’s always almost storms and strong winds, then be sure that your insurance might see a slight increase in risk. the good news is that the modern solar panels have been designed to be able to withstand very tough weather conditions

4.Coverage Adjustments:

If you add a solar panel in your home, it will definitely increase the total value of your home.

What this means is that you might actually need to make some adjustments to your coverage limit; the change you are going to see in your premium is actually a reflection of this increased value; however , most times it is always a very small percentage.

5.Existing Insurance Policy:

Every detail of your current insurance policy could also have an effect on the extra money you are going to pay, while some of the policies may have covered the renewal energy Installation, others might also need an add-on.

How to Keep Your Insurance Costs Low

If you are worried that you are spending more on insurance after installing solar panels in your home, do the following, it’ll help you

1.Choose a Professional Installer:

If you are able to choose a professional and Experienced company like Arenahub global, then we can assure you that with our Professional installation, we’ll reduce the risk of your panels getting damaged which will help you to get a better rate from your insurance company.

2. Maintain Your Solar System:

Maintaining your Solar panels regularly is very important, always check for any damages and try to have them inspected from time to time. If you are able to maintain your solar panels, it means they’re less likely to cause your problems which can always lead to lower insurance costs.