KEY POINTS
- Solar panel insurance is not a standalone insurance product, but solar panels are covered by home and contents insurance.
- Home insurance for solar panels typically covers damage from unexpected events such as inclement weather, income loss from damaged panels, and public liability — however, these inclusions may come with additional fees.
- Whether solar panel coverage is worth it depends on how much you’re willing to pay and your aversion to risk.
With more homes installing solar panels than ever before, homeowners need to understand the ins and outs of solar panel insurance in Australia. Like any large investment, having peace of mind is essential, which raises the question: are solar panels covered by home insurance?
This Canstar Blue guide explains why home insurance for solar panels is important, and whether insurers generally cover damage caused by weather events such as storms, floods or fires.
On this page, you’ll find:
- Are solar panels covered by home insurance?
- What does home insurance for solar insurance include and exclude?
- Can you add solar panels to a home insurance policy?
- How do I make a home insurance claim for my solar panels?
- Do I need extra coverage based on where I live?
- Is home insurance for solar panels worth it?
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Are solar panels covered by home insurance?
While solar panel insurance is not a standalone product, standard home and contents insurance or building insurance policies cover solar panels. However, it’s important to check if your policy includes it.
Home and contents insurance policies generally cover your actual solar panels as well as any related components, such as your inverter or solar battery unit.
However, it’s worth noting that some policies may not cover damage caused by certain weather events and additional coverage may be required for these unique circumstances.
What does home insurance for solar insurance include and exclude?
As discussed, solar panel coverage falls under home and contents insurance. However, home and contents insurance policies do not offer cover under specific circumstances.
The table below focuses exclusively on events relevant to your solar panels that are commonly included and excluded by most home insurance policies.
Note: This is a general guide only
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We strongly recommend reviewing the fine print with your insurer to make sure you have adequate coverage for your solar panel investment.
‘Fine print’, when it comes to home and contents insurance, means reading the Product Disclosure Statement, not just the summary of your policy that usually accompanies it.
Can you add solar panels to a home insurance policy?
You can add solar panels to your home insurance policy, but this will usually come at an additional cost.
How much would it cost to add solar panels to your home insurance policy?
According to Solar Choice, the average cost to install a solar system ranges between $4,000 and $10,000, depending on the state/territory you live in and the size of the system you’re installing.
You’ll need to update your ‘sum insured’ – the maximum amount of money an insurance provider is obligated to pay in the event of a covered loss – with the amount spent to install your solar system.
Although there’ll be a slight increase to your premium, accurately updating your ‘sum insured’ avoids the risk of underinsurance.
The inverse could take place if you’re overinsured. For example, insurers will pay you out in the event of a covered loss based on an assessed quote to repair or replace your solar panels, not on how much you’ve overpaid.
It’s also important to determine how fluctuating labor costs can impact the future cost of replacing damaged solar panels or components.
Therefore, it’s crucial to carefully assess your sum insured frequently to accurately reflect the value of your home and its contents, including your solar system.
How do I make a home insurance claim for my solar panels?
Lodging a claim for your solar panels follows the exact same process as other types of insurance claims:
- Contact your insurer (via phone or their online portal if applicable) and provide the main details of your claim. They may either ask a series of questions via phone or send out a claims form to be filled.
- They are likely to ask for documented evidence (e.g. photographs, proof of ownership of the damaged solar panels or components).
- An assessor may be sent to your home to inspect the damaged solar panels to verify the claim.
Compare solar electricity plans in your state
Here are some of the cheapest solar-specific deals from the retailers on our database. These costs are based on the Ausgrid network in Sydney but prices will vary depending on your circumstances. We show one product per retailer, listed in order of lowest price first. Annual price estimates assume general energy usage of 3900kWh/year for a residential customer on a single rate tariff. Price estimates exclude solar feed-in tariff credits. These are products from referral partners†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.
Here are some of the cheapest solar-specific deals from the retailers on our database. These costs are based on the Citipower network in Melbourne but prices will vary depending on your circumstances. We show one product per retailer, listed in order of lowest price first. Annual price estimates assume general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Price estimates exclude solar feed-in tariff credits. These are products from referral partners†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.
Here are some of the cheapest solar-specific deals from the retailers on our database. These costs are based on the Energex network in Brisbane but prices will vary depending on your circumstances. We show one product per retailer, listed in order of lowest price first. Annual price estimates assume general energy usage of 4600kWh/year for a residential customer on a single rate tariff. Price estimates exclude solar feed-in tariff credits. These are products from referral partners†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.
Here are some of the cheapest solar-specific deals from the retailers on our database. These costs are based on SA Power network in Adelaide but prices will vary depending on your circumstances. We show one product per retailer, listed in order of lowest price first. Annual price estimates assume general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Price estimates exclude solar feed-in tariff credits. These are products from referral partners†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.
Do I need extra insurance cover for my solar panels based on where I live?
If you live in an area that is prone to inclement weather events such as bushfires, cyclones or flooding, you may be hit with a higher home insurance premium regardless of whether you have a solar system installed.
Solar panels are susceptible to damage from hail surpassing 35mm while overheating or malfunctioning inverters can pose a fire risk.
The Australian Competition and Consumer Commission found that householders in northern Australia were paying higher premiums on average than other parts of the country.
Depending on the location of your property, the potential risks it faces and the items you want to cover – including your solar system – make sure you talk to multiple insurers about how much your home insurance may cost.
Is home insurance for solar panels worth it?
Whether or not solar panel coverage is worth it or not depends on your risk appetite and your willingness to spend. Here are some common considerations before making a final decision:
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If you’re more concerned with physical defects and quality control, we recommend visiting Canstar Blue’s solar panel buying guide for handy tips and tricks.
Solar panel brands from Australia typically operate a physical presence, which also makes submitting warranty claims much less overwhelming.
Ultimately, the peace of mind that comes with having solar panels covered by your home and contents insurance policy is worth the extra investment if you can afford it, especially in Australia where extreme weather events are expected in many locations.
Any advice on this page is general and has not taken into account your objectives, financial situation or needs. It is not personal advice. Consider whether this general advice is right for your personal circumstances. You may need advice from a qualified adviser. Canstar Blue is not providing a recommendation for your individual circumstances. If you decide to apply for an insurance policy, you will deal directly with the provider, not with Canstar Blue.
Canstar Blue is a comparison website, not a product issuer, so it’s important to check any product information directly with the provider. Any company listed may use or be used by another company to arrange, issue, distribute or sell its insurance policies to customers. Consider the Product Disclosure Statement (PDS), Target Market Determination (TMD) and other applicable product documentation before making a decision to purchase, acquire, invest in or apply for a financial or credit product. Contact the product issuer directly for a copy of the PDS, TMD and other documentation.
If you are seeking to replace an insurance policy, you should consider your personal circumstances, including continuing the existing cover until the replacement policy is issued and cover confirmed. Your current policy may have different features to products currently on the market. Please consider what features are right for you when comparing insurance products and refer to the provider for further details on a policy.
Original reporting by Jared Mullane
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