COVERAGE DECISIONS
Solar panels on a homeowners claim: hail, roof work, leased arrays and the exclusions that decide what is paid
A hail or wind claim on solar panels you own and bolt to the roof is paid like a claim on the roof itself: under Coverage A of the ISO HO-3 sample policy, after the deductible, at replacement cost if the limit is adequate. Wear, mechanical breakdown, rust, vermin and faulty installation are excluded. Leased panels are the lessor's equipment, and the roof under them stays your claim.
Disclaimer: Published averages and benchmark ranges, not a quote. This page is not insurance advice. Your premium will differ based on your home, location, claims history, and insurer. Flood insurance is separate from a standard homeowners policy.
Most solar claims turn on three things: whether the cause of the damage is on the policy's exclusion list, who takes the array off the roof and puts it back, and who owns the equipment. Each has its own section below, in that order, followed by the policy part each kind of array falls under and the limits that move when a system goes up.
What a solar loss has to survive: the exclusions, clause by clause
Coverage A in the HO-3 sample is written on an open-peril basis: it insures "against risk of direct physical loss" to the dwelling, then lists what it does not insure. Panels on the roof inherit that structure. The ordinary weather risks are covered unless something on the exclusion list applies, and several entries on that list match how solar equipment typically fails. Every row below quotes or summarizes the October 2000 sample; your policy may add exclusions, such as a cosmetic damage endorsement for roofs, that the sample does not have.
| How the array is damaged | HO-3 sample clause | Result under the sample |
|---|---|---|
| Hail cracks modules; wind lifts racking | Perils Insured Against A.1, open-peril coverage; no wind or hail exclusion in the sample | Covered, subject to the deductible, including any separate wind or hail deductible on your declarations page |
| House fire or lightning strike destroys the array | Open-peril coverage; no fire or lightning exclusion | Covered as part of the dwelling loss |
| A tree falls on the panels | Open-peril coverage; Additional Coverage E.1.b for tree removal | Damage covered; removing the tree is covered up to $1,000 per loss and $500 per tree where windstorm, hail, or the weight of ice, snow or sleet felled it and it hit a covered structure |
| Output falls slowly as modules age | Exclusion c.(6)(a): wear and tear, marring, deterioration | Not covered; this is the province of the performance warranty |
| Inverter or optimizer fails on its own | Exclusion c.(6)(b): mechanical breakdown, latent defect, inherent vice | Not covered; the equipment warranty responds, if anything does |
| Squirrels chew wiring under the array; pigeons nest beneath it | Exclusion c.(6)(g): birds, vermin, rodents, or insects | Not covered |
| Your own dog chews a ground-mount cable | Exclusion c.(6)(h): animals owned or kept by an insured | Not covered |
| Racking or fasteners rust through | Exclusion c.(6)(c): smog, rust or other corrosion | Not covered |
| Roof leaks at mounting points because of poor installation | Exclusion B.3: faulty, inadequate or defective workmanship, with ensuing loss not otherwise excluded still covered | The faulty work itself is not covered; resulting interior water damage may be, unless another exclusion applies |
| Grid outage stops the system producing | Exclusion A.4, Power Failure, for failures off the residence premises; and no physical loss to the array | Not covered |
| Earthquake, landslide or flood damages a ground mount | Exclusions A.2, Earth Movement, and A.3, Water Damage | Not covered; flood and earthquake need separate policies |
| Vandals smash panels while the house sits empty | Perils c.(4): vandalism excluded if the dwelling was vacant more than 60 consecutive days before the loss | Covered unless that vacancy condition is met |
Two patterns run through the table. Sudden outside events are the policy's business, and slow internal failure is the warranty's. An owner who keeps the module warranty, the inverter warranty and the installer's workmanship warranty in one folder has the three documents that answer most of the "not covered" rows. A home warranty contract is a third, separate thing; our home warranty vs homeowners insurance guide explains how those contracts treat systems that break down, and you should read any such contract for whether it lists solar equipment at all.
The workmanship row is the one most likely to produce an argument, because the evidence is mixed. A roof leak under an array can come from a failed flashing kit, from the installer's lag bolts missing the rafters, from an old roof, or from a storm. The sample excludes the faulty installation itself, while covering ensuing loss that nothing else excludes. Photos of the mounting points taken at installation, and the installer's inspection sign-off, are what separate "the storm did it" from "it was installed that way." Weather conditions that combine with an excluded cause can also take a loss out of coverage under exclusion B.1, which is another reason adjusters look closely at roof leaks under panels.
Panels on a roof claim: removal, reinstallation and code work
When hail or wind damages a roof under an array, the panels have to come off before the roof can be repaired, and go back on afterward. The sample's building settlement pays "the cost to repair or replace" the damaged part with material of like kind and quality. Removing and resetting equipment that sits on the damaged roof is labor the repair cannot happen without, so ask the adjuster to write it as its own line, the way roofing estimates carry remove-and-reset lines for other fixtures. If the panels were damaged too, they should appear as a replace line, not a reset. Our guide to roof replacement versus repair on a claim explains how to read the estimate line by line, and the hail damage roof claim guide covers the inspection and timing.
Three practical points change the number. First, module and racking warranties can limit who may remove and reinstall the equipment; read yours, and make sure the estimate is priced for whoever the warranty allows. Second, if the roof is being replaced because it is worn out rather than because of a covered event, the wear and tear exclusion means the policy pays neither the roof nor the panel removal, which is a strong reason to time a re-roof before an installation, not five years after. Third, reinstalling an array can trigger current building or electrical code requirements. The sample's Condition C keeps those increased costs out of "replacement cost" except as provided by Ordinance or Law coverage, which allows up to 10 percent of the Coverage A limit. Our ordinance or law coverage guide shows how to find your own percentage.
For a leased system, the same removal is needed, but the lease decides whose crew does it and who pays. The roof repair is still your Coverage A claim. If a lessor's crew damages the roof during removal, the Fannie Mae standard puts that repair on the equipment owner, which is one more reason to compare your lease with it.
Payment can arrive in more than one check. Under the sample's Mortgage Clause, a loss payable under Coverage A or B "will be paid to the mortgagee and you, as interests appear." A roof-and-panels payment on a mortgaged home usually names the lender, and our guide to a claim check made out to the mortgage company explains how that money is released for repairs.
Building or outdoor equipment: the settlement line to get in writing
The sample settles buildings under Coverage A or B at replacement cost "without deduction for depreciation," provided the limit clears the 80 percent test in Condition C.2. But Condition C.1 sends a list of property to actual cash value instead, and that list includes "awnings, carpeting, household appliances, outdoor antennas and outdoor equipment, whether or not attached to buildings." The form never says whether a rooftop array, a wall-hung inverter or a battery cabinet is part of the building or is outdoor equipment.
The natural reading for panels bolted through the roof is that they are part of the dwelling, settled with it. But the words "whether or not attached to buildings" give an adjuster room to argue otherwise, especially for equipment that sits outside the roof plane: a ground mount, a disconnect box, a battery on an exterior wall. On a ten-year-old system, the gap between the two bases can be thousands of dollars. Our sister site SolarRoost works through a depreciation table for that gap and its effect on a hail claim, so we will not repeat it here.
The homeowners-insurance fix is a short request. Ask the insurer, in writing, whether a permanently installed array, inverter and battery are settled as part of the building under Condition C.2 or as outdoor equipment under C.1.b. If the answer is the building, keep the reply. If it is outdoor equipment, ask whether an endorsement can change it, and price that against the alternative. Replacement cost on the building is also paid in stages under the sample; our recoverable depreciation guide explains how the holdback works until repair is complete.
Leased panels: the policy pays for your interest, the lease decides the rest
Answers to this question disagree. Some say leased panels are simply excluded from homeowners insurance. Others say to check your contract. The policy text supports neither as a full answer, and it explains why the second is closer.
Nothing in the HO-3 sample names leased equipment. Coverage A's insuring words cover "the dwelling" and structures attached to it, with no clause about who owns a given fixture. What limits the payment is a condition, not an exclusion. Section I Condition A, Insurable Interest And Limit Of Liability, says the insurer will not be liable in any one loss "to an 'insured' for more than the amount of such 'insured's' interest at the time of loss." Under a lease or power purchase agreement, the company owns the panels, so your interest in the equipment itself is usually nothing. The policy does not exclude the array; it simply has no interest of yours in it to pay for.
That is why the lease decides. Three things in it can create or remove an interest, or shift a cost onto you:
- Who repairs what. For mortgages Fannie Mae buys on homes with leased panels, the agreement must say that damage resulting from installation, malfunction, manufacturing defect or removal "is the responsibility of the owner of the equipment," who must repair it and return the home to its prior condition. A lease written to that standard keeps installation leaks and removal damage off your claim history.
- Who is on your policy. The same section requires that the panel owner "agrees not to be named loss payee (or named insured)" on your property policy, or that the lender verify it is not. The HO-3 sample's Loss Payable Clause only reaches listed personal property named in the declarations in any case, so a lessor does not belong there.
- What happens after a storm or fire. The joint consumer guide from the Treasury, the Consumer Financial Protection Bureau and the Federal Trade Commission, Before You Sign a Solar Lease, released alongside their August 7, 2024 consumer advisory, lists the question to ask outright: "What happens if the system is damaged by a storm, fire, or natural disaster?" Its companion guide for buyers tells households to find out whether the system is covered under the homeowner's policy and whether going solar affects their eligibility for it.
One more clause matters if the lease makes you pay for damage to the company's equipment. Your personal liability coverage, Coverage E in the sample, excludes property damage "to property rented to, occupied or used by or in the care of an 'insured'," except damage caused by fire, smoke or explosion. A leased array on your roof is property rented to you. If a lease clause makes you liable for hail damage to the panels, the sample's liability coverage would not step in for it, and the cost would be yours unless the lessor's insurance or a separate endorsement picks it up. Read that clause before signing, not after the storm.
The roof beneath leased panels is a different matter. It is your dwelling, it stays in Coverage A, and a covered loss to it is your claim to file, even when the lessor's crew has to remove the array first. Who pays that crew is a lease term. The New Jersey regulator guide used in the placement table below does not address leased panels, so the federal guides above carry the official consumer advice here, and the policy text does the rest.
Where each kind of array lands in the policy
Two documents feed the table: the Insurance Information Institute's sample of ISO's Homeowners 3 Special Form (HO 00 03 10 00, the October 2000 edition), and the New Jersey Department of Banking and Insurance consumer guide Insuring Your Home. The New Jersey guide does not mention solar by name; it draws the line the panels fall on, saying Coverage A protects the home "as well as attached structures" while Coverage B covers "unattached structures like sheds or fences," usually limited to 10 percent of Coverage A. Your insurer's form and any state amendment can change a row, so treat this as a map to your own policy.
| Array | Policy part (HO-3 sample) | Limit that applies | Who decides what is paid for the equipment |
|---|---|---|---|
| Owned, fixed to the roof of the house | Coverage A, Dwelling: "the dwelling on the residence premises ... including structures attached to the dwelling" | The dwelling limit, which has to absorb the array's replacement cost | Your policy, under the building loss settlement terms |
| Owned, on an attached carport or patio cover | Coverage A, as a structure attached to the dwelling | The dwelling limit | Your policy; confirm the insurer agrees the structure is attached |
| Owned, ground-mounted or on a detached garage | Coverage B, Other Structures: structures "set apart from the dwelling by clear space," including those connected only by a fence, utility line or similar connection | No more than 10 percent of the Coverage A limit, shared with every other detached structure | Your policy, within the shared Coverage B cap |
| Owned but financed, with a UCC fixture filing recorded | Coverage A or B by location, as above; the lien does not move the panels out of the policy | As above | Your policy, with the lender's lien rights set by the loan papers |
| Leased, or owned by a third party under a power purchase agreement | The roof and house stay in Coverage A; the equipment is the company's property | Your interest only, under the Insurable Interest condition | The lease or agreement, and the owner's own insurance |
The ownership row deserves a second look before anything else. Fannie Mae's Selling Guide, in section B2-3-04 (dated October 8, 2025), tells lenders that ownership and financing structures "are key to determining whether the panels are third-party owned, personal property of the homeowner, or a fixture to the real estate." If you bought the home with panels already on it, the purchase contract and title papers say which kind you have, and the answer moves the panels between rows of this table. Our guide to insuring a house you are buying covers the other documents to gather before closing.
A battery cabinet and a separate inverter follow the same location test. Mounted on the house wall or in the garage of the house, they are part of the dwelling; in a detached structure, they ride with that structure under Coverage B. Whether a battery is a fixture of the building or equipment settled on a different basis is the open point covered in the settlement section above. An inverter killed by a voltage spike raises a separate question, lightning against grid current, which our guide to power surge claims works through clause by clause.
The limits tied to Coverage A, and what a higher dwelling limit moves
An owned array raises the cost to rebuild the home, and the dwelling limit should follow it. How an array can push an already thin limit under the 80 percent replacement-cost test in Condition C.2, and how a ground mount crowds the shared 10 percent Coverage B cap, is worked through with benchmark system prices on our sister site SolarRoost's guide to solar and homeowners insurance, so this page does not repeat that arithmetic. One input point belongs here: the Department of Energy notes that its solar cost benchmarks "do not include subsidies payable to the system owner." The policy pays the cost to repair or replace, not what you paid after a rebate or credit, so insure the gross invoice price.
What that page does not cover is the rest of the declarations page. Raising the dwelling limit to absorb an array is not a single-line change, because other parts of the policy are set as a share of Coverage A. The table uses a hypothetical installer invoice of $28,000, added to a $300,000 limit (this site's standard dwelling basis), for a new limit of $328,000. The 10 percent and 5 percent figures come from the HO-3 sample; the 2 percent and 1 percent deductible rows are assumptions for illustration, using the New Jersey guide's description of wind or hail deductibles set as a percentage of the Coverage A limit.
| Item tied to Coverage A | Basis | At $300,000 | At $328,000 | Change |
|---|---|---|---|---|
| Coverage B, other structures | Up to 10% of Coverage A (sample) | $30,000 | $32,800 | +$2,800 |
| Ordinance or law additional coverage | Up to 10% of Coverage A (sample E.11) | $30,000 | $32,800 | +$2,800 |
| Extra debris removal when the limit is exhausted | 5% of the damaged property's limit (sample E.1) | $15,000 | $16,400 | +$1,400 |
| Wind or hail deductible, if set at 2% of Coverage A (assumed) | 2% of the dwelling limit | $6,000 | $6,560 | +$560 |
| Same deductible at 1% (assumed) | 1% of the dwelling limit | $3,000 | $3,280 | +$280 |
The deductible row is easy to miss. A percentage deductible grows with the limit, so insuring the array properly raises the amount you carry on every wind or hail claim, panel-related or not. That is a fair trade on a total loss and a cost on a small one. Our wind, hail and hurricane deductible guide explains how those deductibles are set by state. If yours is a flat dollar amount, the row does not move.
The ordinance or law row matters on the claim side too. Reinstalling an array after roof work can trigger current electrical code, and the extra $2,800 of that coverage is what pays for it under the sample. The debris row works the same way: on a total loss, the extra 5 percent is only for hauling debris away, not for rebuilding the array.
Reporting the array and reading the new declarations page
The sample policy does not list solar installation as something you must report, but two of its parts make reporting the safer course. The 80 percent test and the dwelling limit both run on the home's rebuilding cost, which the array raises. And the Concealment or Fraud condition voids coverage for intentionally concealing or misrepresenting a material fact. A homeowner who reports the installation, in writing, with the invoice attached, removes any later argument about either. The federal buyers' guide says the same in fewer words: find out whether going solar affects your eligibility for your current policy. Some insurers set their own underwriting rules for roof-mounted equipment, and only your insurer can say what its rules are.
After the report, check that the paperwork reflects it. On the declarations page, the Coverage A limit should have moved by about the replacement cost of an owned rooftop system, or the insurer should have told you why not; an extended or guaranteed replacement cost endorsement changes the cushion above the limit, and our guide to replacement cost, extended and guaranteed coverage explains the difference. Coverage B should be enough for a ground mount plus your other detached structures. No solar company should appear as a loss payee or additional insured if the panels are leased. And the reply about building versus outdoor equipment settlement should be in your file. Our declarations page guide shows where each of those lines sits.
| Item in your file | Owned roof array | Owned ground array | Leased or PPA array |
|---|---|---|---|
| Installation invoice and system size | Send to the insurer | Send to the insurer | Keep a copy; send the lease summary |
| Declarations page after the change | Coverage A raised, or reason given | Coverage B adequate, or increased | No lessor listed as loss payee or named insured |
| Written answer on settlement basis | Building (C.2) or outdoor equipment (C.1.b) | Building (C.2) or outdoor equipment (C.1.b) | Not needed for the equipment; the lease governs |
| Warranties | Module, inverter, workmanship | Module, inverter, workmanship | The lessor's repair and production terms |
| Photos | Roof before and after installation, mounting points | Array and footings | Roof before installation, for later removal disputes |
For a household shopping its renewal after an installation, compare insurers on identical limits, with the array already in the dwelling figure, using our renewal shopping method. A state's published average on the cost by state table describes a $300,000 dwelling basis, so a home insured at $328,000 should expect a quote that differs from that benchmark for that reason alone. The benchmark is a reference point, never a quote.
The renewal checklist for a solar home
- The array's replacement cost, gross. The installation invoice before any rebate or credit, or a current installer's price for the same system. Add the battery if there is one.
- Your Coverage A limit against the new rebuilding cost. Divide the limit by the rebuilding cost with the array included. Below 100 percent, a total loss leaves a gap; the SolarRoost guide linked above shows where partial losses start to be cut. If the array is on the ground or a detached structure, check that Coverage B still covers it plus every other detached structure.
- The written settlement answer and the warranty folder. The insurer's reply on building versus outdoor equipment settlement, and the module, inverter and workmanship warranties that answer the breakdown and wear rows of the exclusion table.
With those three items and the lease, if there is one, a phone call to the insurer takes ten minutes instead of a dispute after a hailstorm. How much an array moves your overall limit starts with the rebuilding estimate itself, and our dwelling limit worksheet walks through building one you can defend at renewal.
Endorsements, limits and deductible choices sit together in the coverage decisions hub; the guides index lists all topics.
Solar panel coverage questions
Does homeowners insurance pay to remove and reinstall solar panels for a roof claim?
When a covered peril such as hail or wind damages the roof, the HO-3 sample pays the cost to repair or replace the damaged part, and taking owned panels off and putting them back is labor that repair cannot happen without. Ask the adjuster to write it as its own remove-and-reset line. If the roof is replaced only because it wore out, the wear and tear exclusion means neither the roof nor the panel removal is paid.
Does homeowners insurance cover solar panels on my roof?
Panels you own that are fixed to the house fall under Coverage A, the dwelling, in the ISO HO-3 sample, which covers the dwelling including structures attached to it. They are covered against the same risks as the roof, subject to the same exclusions, the same deductible and the same dwelling limit. Tell the insurer about the installation so the dwelling limit can be checked against the higher rebuilding cost.
Are leased solar panels covered by my homeowners policy?
Not as your property. The HO-3 sample's Insurable Interest condition says the insurer will not pay an insured more than that insured's interest in the property, and under a lease or power purchase agreement the panels belong to the company. The roof and house under them stay yours and stay in Coverage A. What happens to the equipment after a storm or fire is set by the lease, so read its damage and insurance clauses.
Are ground-mounted solar panels covered?
An owned array standing apart from the house falls under Coverage B, other structures, which the HO-3 sample caps at 10 percent of the Coverage A limit. That cap is shared with a detached garage, shed and fence. If the array and those structures add up to more than the cap, ask the insurer about increasing Coverage B rather than raising the dwelling limit.
Does homeowners insurance cover an inverter that stops working?
Not when it fails on its own. The HO-3 sample excludes mechanical breakdown, latent defect and wear and tear from its open-peril coverage of the dwelling. An inverter destroyed by a covered peril such as fire or lightning is a different loss. Breakdown is the job of the equipment warranty, so keep its terms with the installation papers.
Will my premium go up if I add solar panels?
A benchmark cannot forecast that. Owned panels raise the cost to rebuild the home, so a policy whose dwelling limit is raised to match is insuring more value, and the insurer prices that under its own filed rates. Ask for the change in writing and compare it with quotes on identical limits and deductibles from other insurers.
Does homeowners insurance pay for lost electricity if my panels are damaged?
Not in the HO-3 sample. Coverage D pays additional living expenses and fair rental value when the home cannot be lived in; it has no line for higher utility bills or lost net-metering credits. The form also excludes loss from a power failure that happens off the residence premises. A lease may carry its own production guarantee, which is a contract term, not insurance.
Sources and verification
Each source below was read and its figures confirmed on October 30, 2026. HO-3 wording, sometimes quoted and sometimes paraphrased (Coverage A and B insuring words, the 10 percent Coverage B limit, Section I Perils Insured Against and exclusions c.(4) and c.(6), Section I Exclusions A.2, A.3, A.4 and B.1 to B.3, Additional Coverages E.1 Debris Removal and E.11 Ordinance Or Law, Conditions A Insurable Interest, C Loss Settlement, K Mortgage Clause and R Loss Payable Clause, Concealment or Fraud, Coverage D, and Section II exclusion of property rented to or in the care of an insured): Insurance Services Office, Homeowners 3 Special Form HO 00 03 10 00 (1999), sample published by the Insurance Information Institute, HO-3 sample policy. Coverage A for attached structures, Coverage B for unattached structures usually limited to 10 percent of Coverage A with additional coverage possibly available, and wind or hail deductibles as a percentage of Coverage A up to 10 percent: New Jersey Department of Banking and Insurance, Insuring Your Home consumer guide. Ownership structures, and lease requirements on damage responsibility and on the panel owner not being named loss payee or named insured: Fannie Mae Selling Guide B2-3-04, Special Property Eligibility Considerations (October 8, 2025). Questions on storm, fire or natural disaster damage under a lease, and on homeowners insurance coverage and eligibility: U.S. Department of the Treasury, Consumer Financial Protection Bureau and Federal Trade Commission, Before You Sign a Solar Lease and Before You Buy Solar Panels, released with the August 7, 2024 consumer advisory and linked from the Department of Energy's Homeowner's Guide to Going Solar. Benchmark costs that exclude subsidies payable to the system owner: U.S. Department of Energy, Solar Photovoltaic System Cost Benchmarks. The $300,000 dwelling limit, the $28,000 installer invoice and the 1 and 2 percent deductibles were picked to make the math easy to follow. They are not averages, and they are not quotes. Every benchmark premium on this site comes from the state cost table and carries its own source, year, and verification date. See Methodology and the Disclaimer.