Solar panels have become a common sight on Latvian homes. More and more homeowners are choosing to install solar energy systems to cut electricity costs and reduce their environmental impact. But a question that often gets overlooked until after installation is whether an existing home insurance policy actually covers the panels. The answer depends on the policy terms and the way the panels are installed.

Does home insurance cover solar panels

In most cases, solar panels that are permanently fixed to the roof or facade of a building are treated as part of the structure, much like windows or roof tiles. This means a standard house insurance policy typically covers the panels, but several conditions apply.

What home insurance usually covers for solar panels:

  • Damage from natural events such as hail, storms, heavy rain, or fallen trees
  • Fire damage
  • Theft or vandalism
  • Damage caused by snow load or ice

What is generally not covered by a standard policy:

  • Mechanical wear and gradual deterioration over time
  • Inverter or electrical system failure not linked to an insured event
  • Lost energy revenue while the system is under repair
  • Damage resulting from faulty installation

For those living in apartment buildings where solar panels are installed on a shared roof, the situation is more complex. Liability may be split between the building manager and individual apartment owners. It is worth checking whether the building common-area insurance covers such installations. Standard apartment insurance terms can differ from house insurance, so it is advisable to verify this with your insurer directly.

What to do to make sure solar panels are properly covered

Once you decide to install solar panels, a few practical steps go a long way towards ensuring your investment is protected.

First, notify your insurer before or promptly after installation. Solar panels increase the value of your home, so the insured sum may need to be adjusted. If the value of the panels is not reflected in the insured amount, any compensation in the event of damage may fall short of the actual replacement cost.

Second, keep installation documents, the warranty card, and the technical specifications from the manufacturer. These records can be important when filing a claim.

Third, check whether the policy covers the inverter and mounting structure, as these are among the most costly components of a solar energy system. In some cases it makes sense to insure the inverter separately or rely on the manufacturer warranty for mechanical failures.

For businesses installing solar panels on commercial or office buildings, business property insurance is needed, with an insured value that reflects the full scale of the installation.

If you are unsure whether your current policy gives solar panels adequate coverage, or if you would like to compare available options, Agento advisors can help. The consultation is free.

Get in touch with an Agento advisor and make sure your solar panels are properly covered.

Frequently Asked Questions

Does home insurance cover solar panels? Usually yes, if the panels are permanently fixed to the building. It is important to check that the insured sum includes the value of the panels and that the policy terms apply to this type of equipment. Notifying your insurer after installation is recommended.
What should I do if hail or a storm damages my solar panels? Natural event damage is usually included in home insurance. Take photographs of the damage and contact your insurer to file a claim. If the insured sum has not been updated since installation, the compensation may not cover the full replacement cost.
Do I need to inform my insurer when I install solar panels? Yes, it is advisable to notify your insurer and update the insured sum to include the value of the solar panels. This ensures that any claim will cover the full cost of replacement.
Is the solar panel inverter covered by home insurance? This depends on the specific policy. Some policies cover the entire solar energy system, while others may exclude electrical components or mechanical failures. It is advisable to clarify this with your insurer or broker.
Are leased solar panels covered by home insurance? If the panels belong to the leasing provider rather than the homeowner, the responsibility for insuring them typically rests with the owner of the equipment. Check the agreement with your service provider. Home insurance may not cover equipment owned by a third party.