Homeowners in Ontario are increasingly turning to renewable energy solutions, such as solar panels and heat pumps, to embrace cleaner energy sources. While these upgrades can lead to long-term savings and a reduced carbon footprint, they also come with a surprising challenge: insuring the property.

As the demand for eco-friendly solutions grows, many homeowners are investing in solar panels for their home’s energy source. However, adding solar panels, or other renewable energy sources, has created an issue when trying to insure their home with certain insurance companies.

The CBC reported that solar panels lead to insurance headaches for some Canadians and why insurance companies’ lack of experience in this space may be the issue.

As an independent insurance brokerage, we’re here to help! We’ve put together some high-level information for homeowners to be aware of if they’re considering installing green technology, like solar panels.

Solar Panel Insurance Issues

Recent reports have highlighted that many Ontarians face difficulties when trying to secure home insurance after installing solar panels. Here are some common issues:

1. Insurability Denial
   After installing solar panels, some homeowners have been denied coverage by their insurer. Some claim to view the property as higher risk due to potential electricity dangers or liabilities associated with the panel additions.

2. Coverage Limitations
   Some insurance companies may have specific exclusions or limitations regarding solar panels and other green technologies. Homeowners might find themselves facing restrictions in coverage if their solar systems are damaged or if they experience related issues, such as roof leaks.

3. Lack of Awareness
   Many homeowners are unaware that they need to inform their insurance providers about new installations. Failure to do so could result in denied claims or even cancellation of the policy. Beyond just solar panels, it’s important to inform your broker about upgrades or changes to your home.  For more information, check out our blog article: What Changes Do I Need to Tell My Insurance Broker? – Staebler Insurance

4. Claims Challenges
   When homeowners try to file claims related to solar panels or other eco-friendly upgrades, they may encounter difficulties. Insurers might be unclear about the extent of coverage for damages specifically associated with solar installations, leading to disputes and delays.

Steps to Ensure Proper Solar Panel Insurance Coverage

If you’re considering installing solar panels or have already done so, here are some steps you can take to ensure your home remains insurable.

1. Plan Ahead
   Verify the condition of the roof and shingles before having solar panels installed. Use a professional installer who has experience and references from past customers. For ground-mounted panels, use a solid foundation or concrete footings to provide stability, and consider a theft deterrent or protection system.

2. Communicate with Your Insurance Broker
   As your independent insurance broker, we’re here to help!  Before installing solar panels, reach out to your Staebler Broker to discuss potential impacts on your coverage. Ask about any specific requirements or adjustments you may need to make to your policy.

3. Shop Around
   Not all insurance companies treat solar panel installations the same way. As a broker, we help you compare quotes and coverage options from various providers. Some may be more accommodating to certain home upgrades than others.

4. Document Everything
   Keep detailed records of your solar panel installation, including contracts, warranties, and permits. This documentation can be valuable if you need to file a claim or if questions arise about the installation later.

5. Seek Expert Guidance with a Broker
   Consult an insurance broker who knows this space and has multiple options for you. We can provide insights into which insurers offer coverage for homeowners with solar panels.

While installing solar panels is a positive step toward sustainability, it’s crucial to consider your home insurance coverage. By being proactive, communicating with insurers, and understanding your options, you can enjoy the benefits of renewable energy without the worry of insurance complications.

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Staebler Insurance is a general insurance broker specializing in car insurance, home insurance, small business, and commercial insurance. Staebler brokers proudly serve Kitchener, Waterloo, Cambridge, Guelph, Stratford, Listowel, Fergus, Elora, Wellington County, Perth County, Waterloo Region and southern Ontario. Get a Quote to get started today.