Does State Farm Cover Solar Panels?
Installing solar panels in your home is a major investment. Having the proper insurance coverage provides protection in case your system is damaged. As the largest insurer of homes in the U.S., many wonder – does State Farm insurance cover solar panels?
State Farm does provide insurance coverage for rooftop solar panels under standard homeowners policies. However, details of coverage, exclusions, and claim processes can vary.
Solar panels are treated as property by State Farm, so damage from covered events like fire, lightning, theft, and more would be protected subject to policy limits and deductibles. Additional endorsements can expand protection.
Understanding your specific homeowner’s policy provisions is key when insuring solar systems. Let’s untangle the complexities and find out if State Farm is your solar knight in shining armor.
What Does a State Farm Homeowners Policy Cover?
A standard State Farm homeowners insurance policy provides coverage for:
- Damage to the dwelling and other structures
- Personal property inside the home
- Loss of use and additional living expenses
- Personal liability
- Medical payments to others
Coverage for rooftop solar panels falls under damage to “other structures” attached to the home. The specifics will depend on the policy form and language.
State Farm Coverage for Solar Panels as Property
Since solar panels are considered permanent fixtures and equipment for the home, damage or theft would be covered similarly to other properties.
Coverage is provided for solar panels damaged by common covered causes like:
- Fire, smoke, or lightning strikes
- Severe wind and hail
- Weight of ice, snow, or sleet
- Falling objects like trees
- Theft, vandalism, or malicious mischief
Any coverage exclusions, limitations, or loss settlement terms that apply to other properties would also apply to solar systems. For example, most policies have caps on theft claims.
Additional Coverage Options
Homeowners may want to consider adding endorsements for extra protection:
- Equipment breakdown: Covers electrical/mechanical failure or power surge damage.
- Scheduled personal property: Specifies solar value for full replacement cost.
These endorsements come at an added cost but can be worth it for expensive solar investments.
Insuring Leased or Financed Solar Panels
For leased solar systems or those with an outstanding loan, you would need to fulfill the terms of your contract and contact the leasing company or lender regarding any damage claims.
Additional steps like naming them on your homeowner’s policy or assigning them policy benefits may be required by your lease/loan agreement. Check with State Farm on the proper procedures for your situation.
How to File a Solar Panel Damage Claim
If your solar system suffers hail hits, fire damage, or other covered incident, take these steps:
Step 1: Document damage with photos/video if safe to do so.
Step 2: Promptly call State Farm to report the claim.
Step 3: Provide your policy number and details on what occurred.
Step 4: Allow an inspection and fully cooperate with the adjuster.
Step 5: Understand clearly any coverage denials or limitations before agreeing to a claim settlement.
Following the proper claims process will smooth the way for getting your solar panels repaired or replaced.
Conclusion
State Farm does extend homeowners insurance protection to rooftop solar systems as dwelling property. However, policy limits, exclusions, and claims handling for solar damage can vary. Homeowners with expensive solar panel investments should review their specific State Farm policy’s coverage of “other structures” and consider extra endorsements if needed to fully protect their system in case of loss. Understanding your solar coverage will give you peace of mind.
Frequently Asked Questions
Does State Farm’s Solar Coverage Vary By State?
Specific policy provisions can differ across states. Check details for your particular state.
Does State Farm Cover Storm/Hail Damage To Solar Panels?
Yes, standard homeowners policies include hail damage as a covered peril. Policy deductibles apply.
Does State Farm Insure Off-Grid Solar Systems?
Off-grid systems are covered, but limits may be lower for equipment located away from primary home.
Is Additional Living Expense Coverage Included If Home Is Uninhabitable?
Standard policies provide ALE coverage if solar damage makes home temporarily unlivable.
