How Solar Panels Affect Your Home Insurance in Minnesota

Most homeowners going solar spend a lot of time thinking about the financial return, the installation process, and the equipment choices. Home insurance usually isn’t on the list until someone asks “wait, do I need to tell my insurance company about this?”

You do. Here’s what to know.

Does Homeowner’s Insurance Cover Solar Panels?

In most cases, yes – rooftop solar panels are covered under standard homeowner’s insurance as part of the home’s structure (the “dwelling” coverage). This is true for the large majority of policies, but “most cases” isn’t the same as “your specific policy definitely covers them.” The right move is to call your insurer after signing your solar contract and confirm.

A few things to verify with your insurer:

Are the panels covered under your existing dwelling coverage? Most standard HO-3 policies (the most common homeowner’s policy type) cover permanently attached structures, which includes rooftop solar. Ground-mounted systems may be covered differently – sometimes under “other structures” coverage.

What’s the coverage limit? A solar system adds meaningful value to your home. If your current dwelling coverage limit is based on the home’s value before solar, you may need to increase your coverage limit to ensure the system is fully covered in a total loss scenario. Confirm your coverage reflects the full replacement cost of the home plus the system.

What perils are covered? Standard policies cover fire, wind, hail, and certain sudden damage. Minnesota hail is a real consideration – hail damage to solar panels does happen, though modern panels are tested to withstand significant hail impact (typically rated to 1-inch diameter hail at 50 mph). If you’re in an area that sees large hail regularly, ask your insurer specifically about hail coverage for the panels.

Will Solar Panels Increase My Premium?

Usually yes, but not dramatically. Adding a solar system typically increases your insured home value, which in turn can modestly increase your premium. The amount varies by insurer and the size of the system.

On the other side, some insurers offer discounts for homes with solar – particularly if the system includes battery backup, which can reduce claims from power surges or outage-related damage. It’s worth asking.

The premium increase for a typical residential solar system is generally modest relative to the value the system adds. Your insurer can give you a specific number when you call to notify them.

What Happens If the System Is Damaged?

If your panels are damaged by a covered peril – hail, wind, falling tree – you’d file a claim the same way you would for any other structural damage to the home. Your deductible applies. The repair or replacement of the panels would be covered up to your dwelling coverage limit.

A few nuances:

Manufacturer warranty vs. insurance claim: Solar panels typically come with a 25-year performance warranty and a separate product warranty. If panels fail due to a manufacturing defect, that’s a warranty claim, not an insurance claim. If they’re physically damaged by a covered weather event, that’s an insurance claim. Know the difference.

Installation damage: If the installation itself causes damage to your roof – improper flashing, fastener failure, water infiltration – that’s a workmanship issue covered by your installer’s warranty and liability insurance, not your homeowner’s policy. This is why choosing an installer with proper licensing and insurance matters. At Centauri, we’re fully licensed and insured in Minnesota and Wisconsin.

Theft: Solar panels are permanently mounted and not a realistic theft target. This isn’t a concern worth spending much energy on.

Do I Need to Notify My Insurance Company?

Yes, and you should do it proactively rather than waiting to see if it affects your premium or coverage. Failing to disclose a significant addition to your home could, in theory, create complications at claim time if your insurer determines the home was materially different from what was described in the policy.

The call is simple: tell them you’re adding a rooftop solar system, give them the approximate system size and value, and ask whether your current coverage limits and premiums need to adjust. Most insurers handle this routinely and the call takes ten minutes.

Does a Solar Lease or PPA Change the Insurance Picture?

If you’re financing your system through a solar lease or power purchase agreement (PPA) rather than owning the system outright, the insurance situation changes slightly. In a lease or PPA, the solar company technically owns the equipment – your insurer may need to know this, and the solar company’s agreement may specify insurance requirements on your end.

At Centauri, we work with Concert Finance and other financing options where you own the system – so this scenario doesn’t apply to our customers. For more on financing options, visit our financing page.

Minnesota-Specific Considerations

Minnesota’s weather profile creates a few specific considerations worth mentioning:

Hail: Minnesota sees significant hail events, particularly in May through August. Solar panels are designed to handle normal hail – IEC-rated panels are tested to withstand 1-inch diameter hail at 50 mph. For large-hail events, coverage under your homeowner’s policy would apply for any damage.

Snow load and ice: Minnesota’s snow loads are factored into installation design and permitted by local building departments. Ice damming – a common source of roof damage in Minnesota winters – is worth discussing with your roofer and installer to ensure proper flashing around panel mounts doesn’t create new pathways for ice-related water infiltration.

Windstorm: Properly permitted and installed panels are engineered for Minnesota wind loads. The racking systems used in residential installs are rated for the wind speeds Minnesota experiences.

For more on how solar holds up in Minnesota winters specifically, read our solar panels in winter post.

FAQ: Solar Panels and Home Insurance in Minnesota

Do I have to tell my insurance company I’m getting solar?
Yes. Notify your insurer when you sign your solar contract. Confirm that your existing coverage extends to the panels and that your coverage limit reflects the added value.

Will solar panels increase my insurance premium?
Usually modestly, yes – because the home’s insured value increases. The exact amount varies by insurer and system size. Some insurers offer discounts for solar homes, especially those with battery backup.

What if my solar panels are damaged by hail?
File a claim through your homeowner’s insurance for the physical damage. Modern panels are rated to withstand significant hail but are not indestructible. Your deductible applies.

Are ground-mounted solar systems covered the same way?
Ground-mounted systems may fall under “other structures” coverage rather than dwelling coverage – check with your insurer to confirm how your policy handles this.

Does it matter if I’m leasing the solar system?
Yes. If you lease the system, the solar company owns the equipment. Your insurance needs may differ – check your lease agreement and confirm with your insurer.

---