Solar panels: what risks do you need to be aware of?
Investing in solar panels is a smart choice for both the environment and your wallet. Many people in the UK have had them fitted and are benefiting from reduced energy bills and a lessening of their carbon footprint. However, like any other valuable asset, solar panels come with risks that need to be planned for and protected against.
Insuring your solar panels is essential and, in this blog, we'll explore the key risks associated with them, and why insurance is crucial.
Why insure your solar panels?
Solar panels are a significant financial investment and protecting them with insurance is prudent in case of unexpected events or damage. Without insurance, any damage or loss could result in substantial out-of-pocket expenses, negating the financial benefits of having solar panels in the first place.
Key risks to be aware of:
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Weather-related damage
Solar panels are built to withstand harsh weather conditions, of course, but they are not invincible. Severe weather events such as hailstorms, heavy snow, high winds and lightning can damage the panels and, while most panels are tested for durability, extreme weather conditions can still cause cracks, dislodgement or destroy the panels completely.
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Fire damage
Fires, whether from natural causes like lightning strikes or electrical malfunctions, pose a significant risk to solar panels. Ensuring your insurance policy covers fire damage is crucial to protect your panels, should they catch fire for any reason.
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Theft and vandalism
Solar panels are valuable and can be targeted by thieves or vandals. Theft of solar panels can lead to significant financial losses, and vandalism can render them inoperable. Insurance coverage for both theft and vandalism ensures you can replace or repair your panels without undue stress or bearing the full cost.
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Animal damage
Birds, rodents and other animals can cause damage to solar panels and their wiring. Birds might end up nesting under the panels, while rodents could chew through wires, leading to malfunction or fires. Insurance can help cover the costs of any repairs.
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System malfunctions and technological failures
Despite being relatively low-maintenance, solar panels can experience malfunctions due to manufacturing defects, improper installation or wear and tear. These issues can affect the efficiency and safety of your solar system, but an insurance policy will provide peace of mind and can cover the costs of any repairs or replacements.
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Roof damage during installation or maintenance
The process of installing or maintaining solar panels can sometimes cause damage to your roof. Improper installation can lead to leaks, structural damage or other issues that compromise the integrity of your roof, but insurance is there to provide coverage for any damage - and reassurance your home remains protected.
Types of insurance coverage for solar panels
So, what do you need? What types of insurance are available for your solar panels?
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Home insurance
Many homeowner’s insurance policies cover solar panels as part of the structure of your home, however, it's crucial to verify the extent of coverage as some policies may have limitations or exclusions. Ensure your policy includes protection against all the risks we mentioned above.
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Specialised solar panel insurance
Some insurers offer specialised solar panel insurance policies tailored to cover specific risks associated with solar energy systems. These policies might provide more comprehensive coverage compared to standard home insurance and might be worth investing in.
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Manufacturer’s warranty
Most solar panels come with a manufacturer’s warranty that covers defects and performance issues for a certain period. While not a replacement for insurance, a warranty can provide additional peace of mind when it comes to the quality and longevity of your panels.
Tips for ensuring adequate coverage:
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Review your current policy
Check if your existing homeowner’s insurance policy covers solar panels and the extent of that coverage.
Get quotes from different insurers to find a policy that offers comprehensive coverage at a competitive price.
Be aware of any exclusions or limitations in your policy that might affect your coverage.
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Document your installation
Keep detailed records of your solar panel installation, including receipts, warranties and maintenance logs. This documentation can be crucial when filing a claim.
Perform regular maintenance on your solar panels to ensure they remain in good condition and reduce the risk of damage or malfunctions.
Insuring your solar panels is a crucial step in safeguarding such an important investment. By understanding the risks and ensuring you have adequate coverage, you can enjoy the benefits of solar energy without worrying about potential financial losses.
Take the time to review your insurance options and choose a policy that provides comprehensive protection for your solar energy system.
Other blogs which may be of interest:
Electric vehicles - What they mean for insurance premiums
Sustainability in manufacturing - A comprehensive guide
Need help? The team at Ascend are standing by! If you need advice on insuring your solar panels, contact us today on 01245 449060 or info@ascendbroking.co.uk.
