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Posts Tagged ‘homeowners insurance’

Going “green” is a very hot trend right now and before you decide to install home solar panels, it’s important you understand how that choice will affect your homeowners insurance. Becoming more environmentally friendly is a great cause and finding ways to cut your carbon footprint can really impact the environment, but keep in mind how they will impact your wallet as well.

Home Solar Panels and Your Homeowners Insurance Rates

The majority of homeowners insurance companies will cover homes that have pre-existing solar panels or if you are installing new ones in the future. Two points to keep in mind would be that your premium may actually decrease with some companies as they view environmentally conscious people as being lower risk (tend to not be smokers, therefore the risk of fires drops significantly). However, some homeowners insurance companies view the installation of home solar panels as a significant increase in the replacement value of the home, therefore, they will raise your premium.

If done with the right insurance company, your savings from electricity, possibly tax incentives from state and federal government, and lower premiums could actually offset the price of installing the panels. You should check with your insurance agent and find out whether or not your homeowners insurance company has favorable or unfavorable policies toward the installation of home solar panels.

Potential Damages to Your Roof and Weather Risks

The most important thing you can do after picking the right type of home solar panels, is finding a highly experienced and professional installation company. One sure way to increase your premiums is to damage your roof during the process of installation or install them incorrectly.

Also, it’s very important you factor in the risk of weather damage to your panels as well. Ask your installation company about the success of installations they have done in the local area. Find out if roof and panel damage is common, because if it is you could face dramatically higher homeowners insurance premiums.

Find the Right Policy to Cover a Home Solar Panel Install

Home solar panels can be a great way to help the environment, save money on electricity, and potentially save money on your homeowners insurance rates as well.

Read the InsuranceAgents.com article, “How Do Home Solar Panels Affect Homeowners Insurance?”  or receive homeowners insurance quotes from up to five local agents