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Home Insurance for Solar Panels
Home Insurance for Solar Panels
Written by
Tina Sendin
Edited by
Ellie Garran
Reviewed by
Adrian BennettCompare home and contents insurance the easy way
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Long story short
If you own a house, your solar panels are likely covered
If you’ve got building insurance for your standalone house, then your solar panels are likely covered – provided they’re properly fitted to your roof.
Not every policy stacks up the same
Many home insurance policies cover solar panels, but there are often conditions and restrictions around certain events.
Warranties aren’t the same as home insurance
Warranties typically cover defects and product failures, while home insurance protects against certain events, like a falling object or a wild Aussie storm.
Are solar panels covered by home insurance?
Yes, they absolutely can be. If you own a standalone house, they’re often covered under building insurance. If you’ve installed your own solar panels on a strata property, you can sometimes include them in your contents insurance.
Standalone solar insurance isn’t a thing, so this is your main option for protecting your roof accessories and your eco street cred.
Keep in mind that some home insurance policies only cover solar panels if they’re properly fitted to your roof by licensed installers. Also, if your solar panels aren’t on the roof and are instead standing tall in your backyard, they’re typically not covered. On top of this, you could come across limits for coverage, plus the rare policy that doesn’t cover solar panels at all.
In short, it’s a great idea to comb through your product disclosure statement (PDS) to check what the deal is with solar panels in your specific situation and policy.
What events would my solar panels typically be covered for?
Solar panels are typically covered for common (and not-so-common) events. If Mother Nature throws a wobbly, your home insurance could come to the rescue. Here’s what’s often included under insured or defined events in a home insurance policy:
lightning
theft or attempted theft
malicious damage, vandalism, riot, or civil commotion
glass breakage
storm damage (you might want to double-check your policy, though, especially for potential exclusions around storms and hail cover!)
escape of liquid (such as leaking pipes)
impact at the home (say, if a tree branch falls on your roof)
explosion
earthquake or tsunami.
Here’s where things can get tricky. You’re not usually covered for things listed under general home insurance exclusions:
Wear and tear: Panels degrade over time, especially under the harsh Aussie sun. So that’s on you (or your warranty), mate.
Lack of maintenance: Yep, you’ve got to look after them. Dirt, grime, and poorly maintained panels can potentially void your coverage.
Mechanical or electrical breakdown: If your panels or inverter pack it in due to a fault, it’s usually not covered – except in certain instances, like your solar panel getting hit by lightning or by a fallen tree. It’s a good idea to check your policy, and also the warranty!
Uninsured period: If something happens before your policy kicks in or after it lapses, sorry, but you’re out of luck.
Unoccupied home: If your place is sitting empty for too long (say, for more than 180 days), your insurer might not cover any damage or loss.
Solar panels are typically covered for common (and not-so-common) events. If Mother Nature throws a wobbly, your home insurance could come to the rescue. Here’s what’s often included under insured or defined events in a home insurance policy:
lightning
theft or attempted theft
malicious damage, vandalism, riot, or civil commotion
glass breakage
storm damage (you might want to double-check your policy, though, especially for potential exclusions around storms and hail cover!)
escape of liquid (such as leaking pipes)
impact at the home (say, if a tree branch falls on your roof)
explosion
earthquake or tsunami.
Here’s where things can get tricky. You’re not usually covered for things listed under general home insurance exclusions:
Wear and tear: Panels degrade over time, especially under the harsh Aussie sun. So that’s on you (or your warranty), mate.
Lack of maintenance: Yep, you’ve got to look after them. Dirt, grime, and poorly maintained panels can potentially void your coverage.
Mechanical or electrical breakdown: If your panels or inverter pack it in due to a fault, it’s usually not covered – except in certain instances, like your solar panel getting hit by lightning or by a fallen tree. It’s a good idea to check your policy, and also the warranty!
Uninsured period: If something happens before your policy kicks in or after it lapses, sorry, but you’re out of luck.
Unoccupied home: If your place is sitting empty for too long (say, for more than 180 days), your insurer might not cover any damage or loss.
What’s the go with warranties for solar panels?
You can look at your warranty as your manufacturer’s promise that your solar or battery system will work as it should for a set period. If it doesn’t, the warranty might cover repairs or replacements – unless the damage was caused by you or the weather.
Here are some of the warranties that are commonly available for solar panels:
Product warranty
Sometimes called a ‘manufacturer’s warranty’ or ‘warranty against defects’, this covers faulty products. Some warranties last for 10–15 years, but others last for 25 years or more.
Performance warranty
This warranty guarantees your panels will keep cranking out energy at a certain level over time, even as they naturally degrade. For example, they should work at 90% capacity for the first 10 years and 80% for up to 25 years. Most solar panels come with a 25-year performance warranty – pretty standard stuff.
Workmanship warranty
This covers installation issues (hence it sometimes being called an ‘installation warranty’) and usually lasts five years. So if you suddenly have a leaky roof from cracked tiles after the install of your solar panel, this could help ease the financial headache.
Battery warranty
Batteries naturally degrade over time – it’s just how they work. Most manufacturers offer a 10-year product warranty, but the terms can vary depending on the battery type, capacity, and how it’s used.
Extended warranties
Some warranties can be extended for a fee. But just a heads up – don’t let anyone sell you one that just duplicates your rights under Australian Consumer Law.
Helpful tip
It’s worth keeping in mind that warranties aren’t the same as home insurance. Warranties typically cover things like performance defects or product failures, rather than external events. For example, warranties might cover a faulty panel or an inverter that’s not working properly – but not damage from a tree falling on your panel.
Also, the parts of your solar and battery system that are already covered by the manufacturer’s product or performance warranties won’t typically be covered by your home insurance. This can get a bit complicated if you ever need to make a claim – just worth keeping in mind!
That said, you might want to consider getting home insurance to ensure your solar panels are covered in case of an insured event.
Adrian Bennett
General Manager for General Insurance
How can I choose a solid home insurance policy for my solar panels?
A bit of effort on the front end can save you heaps of solar panel headaches later. Here’s how you can pick a policy that floats your boat.
Read the product disclosure statement (PDS) carefully
When it comes to understanding your coverage, the PDS is your best mate. It’s a good idea to review what coverage looks like for your solar panels and the types of insured events they’re covered for. Also, it makes sense to look out for certain conditions, like whether the solar panels need to be installed by a licensed electrician or an authorised installer.
Review your policy regularly
Your home insurance needs are likely to change as your life evolves. Maybe the policy you took out as a single person no longer applies now that you’re in your mum era, aspiring for lower energy bills. It’s a good idea to give your home insurance policy a regular once-over, especially after adding new fixtures like solar panels. Bumping up the sum you’re insured for can help you avoid being underinsured if something goes wrong.
Compare policies
Not all home insurance was created equal. It’s always a good idea to shop around and compare policies to find one that ticks all the boxes for your solar setup.
Check claim processes
Make sure the insurer has a straightforward claims process – you don’t want to be stuck in an admin mess if you ever need to make a claim; it’s stressful enough as it is!
Frequently asked questions
Do I need to notify my insurer if I install solar panels?
Yes. Installations can impact your coverage, and your insurer needs to know. It’s worth keeping them in the loop, or you might find yourself underinsured – ouch.
Will adding solar panels affect my premiums?
Yes, it may increase your home insurance premium. Solar panels up the value of your home, and a higher home value usually means a higher premium.
Are solar batteries covered?
If your home insurance covers fixed solar panels, it could cover solar batteries too. Again, this depends on your provider. There might also be certain conditions to keep in mind (like the solar panels being installed by a licensed electrician or authorised installer). It makes sense to double-check your policy!
Solar panel insurance doesn’t have to be hard yakka
Sorting your home insurance doesn’t have to be a hard day in the sun. By shopping around, you can keep your home – and that solar setup – shining bright.
Whether you’re chasing easy comparisons or quick online quotes, we can help you explore options from a range of plans in just a few clicks. Try the iSelect comparison tool today!
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