Home Insurance Knowledge Base

Does homeowners insurance cover solar panels in North Carolina?

Yes, with conditions. Permanently attached panels are covered as part of your dwelling. Here's what changes, what gaps exist, and what to do before you install.

Check My Coverage Call (919) 249-8448

The short answer

Solar panels permanently attached to your home are covered under your dwelling coverage, the same coverage that protects the structure of your house. Hail, wind, fire, falling trees, and theft are all covered perils. The key steps: notify your carrier when panels are installed, and make sure your dwelling coverage limit is updated to reflect the added replacement cost.

What "attached to the dwelling" actually means

Panels mounted on your roof or permanently attached to the exterior of your home are classified as part of the dwelling, the same as your roof shingles or siding. Panels mounted on a ground-mounted racking system in your yard are typically covered under "other structures" (Coverage B), which is usually 10% of your dwelling limit. If your dwelling is insured for $400,000, you'd have $40,000 in other structures coverage.

The most common coverage gap: underinsurance

The biggest risk isn't that panels aren't covered, it's that homeowners install $30,000 worth of panels and never update their dwelling coverage limit. If your home burns down and your coverage limit was set before the panels were added, you could be significantly underinsured at claim time. The fix is simple: call your agent before or immediately after installation. Most carriers update the limit in a few minutes.

Leased vs. owned panels, a critical distinction

If you own your panels outright (cash purchase or financed), they're covered under your homeowners policy. If you lease them through a solar company (a common arrangement in NC), the leasing company typically insures the equipment themselves. Your homeowners policy won't cover equipment you don't own. Check your lease agreement, it will specify who carries insurance. If the lease makes you responsible for insuring the panels, you'll need an endorsement or rider.

Cooper's take

I've seen this situation come up more in the last two years as solar adoption has accelerated in the Triangle. The typical issue: a homeowner installs $25,000–$40,000 in panels, assumes they're covered, and never calls their agent. They are covered, but the dwelling limit hasn't been updated, so a total loss claim comes up short.

Call before or right after installation. It takes five minutes and costs very little extra premium. The energy savings from solar are significant, don't let an administrative oversight create an underinsurance gap.

Cooper Parsons, NC License #19272643

Frequently asked questions

Does homeowners insurance cover solar panels in North Carolina?

Yes, in most cases. Solar panels that are permanently attached to your home are covered as part of your dwelling coverage. If a hailstorm, wind event, fire, or falling tree damages them, your homeowners policy pays to repair or replace them (minus your deductible). Panels on the ground or in a detached structure may fall under 'other structures' coverage, which is typically 10% of your dwelling limit.

Do I need to tell my insurance company about solar panels?

Yes, and this is important. Adding solar panels increases the replacement value of your home. If you install panels and don't update your policy, you may be underinsured. Call your agent before or immediately after installation to update your dwelling coverage limit. Some carriers also want to inspect or document the installation.

Will solar panels raise my home insurance premium in NC?

Modestly. Because solar panels increase the replacement cost of your home, your dwelling coverage limit should go up, which may raise your premium slightly. A $25,000 panel installation might add $15–$40/year to your premium depending on your carrier and current coverage level. The energy savings from solar far outpace any insurance cost increase.

What if my solar panels are leased, does insurance still cover them?

If you lease your panels (rather than own them), the leasing company typically carries their own insurance on the equipment. Your homeowners policy may not cover leased panels. Read your lease agreement carefully, it will specify who is responsible for insuring the panels. Owned panels are almost always covered under your homeowners policy.

Does NC homeowners insurance cover solar panel theft?

Yes, theft of permanently attached solar panels is covered under your homeowners policy's dwelling coverage. Theft of portable or detached solar equipment may fall under personal property coverage. Standard homeowners policies cover theft as a named peril.