It helps to tell your home insurer before and after installing solar panels because the system can change your home’s replacement value, coverage needs and risk profile.
“It improves the value of the house, it’s better for the environment and … there’s a financial gain, as well,” said Adam Szabo, who owns a semi-detached house in Ontario. But he was surprised when his insurer, CAA, disagreed. The insurance company nearly cancelled his home insurance after he installed a heat pump, then cancelled it after he added solar panels.
Given the issue, it’s normal to wonder whether choosing the best rated solar panel company is enough to protect you. But the good news is that solar isn’t automatically an insurance problem.
According to Jen Aitchison, VP & Practice Leader, Renewable Energy at HUB International, “About 75% of the markets I work with have no issue insuring homes with solar.” The bigger concern is poor installation, uncertified electrical work, and inadequate documentation.
Why You Need to Tell Your Insurer About Solar Panels
You need to tell your insurer because a solar system is a substantial addition to your home. It can include panels, an inverter, mounting hardware, wiring and possibly batteries. If these components are damaged by an insured event, your insurer needs enough information to determine if your policy provides adequate protection.
Most insurers treat permanently roof-mounted systems as part of the dwelling. However, the amount of coverage may need to increase because replacing your home now includes replacing the solar equipment.
Ratehub, a mortgage broker, explains that a homeowner with $500,000 in dwelling coverage who adds a $30,000 system could potentially need coverage adjusted to reflect the additional replacement value.
That doesn’t necessarily mean your premium will rise dramatically. It depends on your insurer, the system’s value, installation method, location and policy terms.
Before signing an installation contract, ask your insurer:
- Will the panels be covered under dwelling coverage?
- Is an endorsement required?
- Are hail, wind, lightning and falling objects covered?
- Does ground-mounted equipment have different coverage?
- Does adding a battery change the policy?
- Does the insurer need the installation permit or contractor documentation?
- Will the dwelling coverage limit need to increase?
Getting these answers first is much safer than discovering a coverage gap after a storm.
Even in less than ideal conditions, a properly designed system can provide highly reliable performance. Talk to Abbotsford Solar Installation about a system built to help you get dependable energy from your home for years to come.
What Canadian Insurers Are Actually Concerned About
The solar industry has changed quickly, but insurance underwriting doesn’t always move at the same pace. IBAO, a broker hub, highlights that outdated underwriting guidelines have contributed to confusion about system size and eligibility. The main issue isn’t solar power itself. Insurers are assessing the additional property value and potential risks associated with the equipment.
“It’s not solar technology insurers are declining, it’s riskier practices that fall outside underwriting guidelines.” – IBAO
For example, poorly secured equipment can be vulnerable to severe wind. Faulty wiring or an improperly installed inverter can create a fire risk. Roof penetrations can also cause water intrusion when flashing isn’t installed correctly.
That’s why installing solar panels professionally matters. A qualified installer should follow electrical and building requirements and provide the documentation your insurer may request. Jen Aitchison said, “If an experienced solar installer does their own installation, the quality may be higher than most as their duty of care is expected to be higher.”
So, your choice of solar installers matters. A reputable solar company should be able to explain the solar installation process, obtain permits, and determine whether your roof can safely support the system. “A professional provider will handle the necessary permitting and any required engineering studies to confirm that your roof is strong enough and in good condition,” said Stefan Tirschler, senior policy analyst at Insurance Council of BC.
What Happens to Your Home Insurance Coverage?
For a permanently attached rooftop system, your panels will often fall under the home’s structural coverage. Standard policies commonly cover permanently attached panels for insured risks such as fire, wind and theft, although exclusions and limits vary between insurers.
Coverage can become less straightforward when the equipment isn’t attached directly to the house.
A ground-mounted array may be classified as another structure rather than part of the dwelling. A solar carport can raise similar questions. If you’re financing, leasing, or renting the equipment, ownership can also affect who is responsible for insuring it.
Your insurer may ask for:
- The purchase price and system value
- Panel and inverter specifications
- Installer information
- Electrical permits
- Engineering or structural documentation
- Proof of professional installation
- Ownership or lease documents
- Battery specifications if applicable
Keep these records. They can make a future claim much easier to document.
What About the Quality of the Solar System?
Insurance isn’t normally based on whether you bought high-quality solar panels or the cheapest available option. Insurers are more concerned if the system was properly installed, meets applicable requirements, and presents an acceptable risk.
Still, equipment quality matters for your broader ownership decision. When finding the best rated solar panel company, such as the Abbotsford Solar Installation, you may encounter claims about high-efficiency panels, highest power output, and a lower degradation rate. These are technical measures of how much energy a panel can produce and how its performance may change over time.
- A panel’s rated power output is normally expressed in watts.
- A system’s total capacity may be described as its maximum capacity.
- The temperature coefficient indicates how panel performance changes as temperatures rise.
These specifications can help you compare systems, but they don’t determine if your insurer will cover them.
You should also check the manufacturer’s warranty coverage. Equipment warranties can address manufacturing defects, while performance warranties generally relate to how much production the panels should retain over a specified period. Those warranties are separate from home insurance. Manufacturer defects and performance problems generally aren’t the same as insured property damage.
Does Solar Installation Increase Your Premium?
It can, but there isn’t one universal increase.
Your insurer may adjust your dwelling coverage because the cost to rebuild your home has increased. The premium may then rise because you’re carrying more insured value. Ratehub notes that the exact effect depends on the insurer and how the system is installed.
Other factors can influence underwriting too. A system installed on an older roof may raise questions about structural condition. Equipment located in an area exposed to severe weather may receive different treatment than a system in an area with fewer weather-related risks.
So don’t assume that lowest cost means the best insurance outcome. Likewise, don’t assume paying a good price for a system means you’re getting the best protection. What matters is if the installation is compliant, documented, and properly disclosed.
What If Your Insurer Says No?
As CTV News reported, Canadians face insurance challenges after installing solar panels on their homes. Like David Bond from Alberta, ask your insurer why it won’t cover your system.
The problem may be the system size, the roof condition, the installation method, missing documentation or an internal underwriting rule. It may not be the panels themselves.
You can also speak with a broker who works with multiple insurers. The best companies may have different underwriting guidelines, so one insurer’s decision doesn’t necessarily represent the entire market.
If you’re still comparing local installers, it can also be useful to ask what documentation they routinely provide to homeowners and insurers. A professional solar panel installation team should understand that installation quality affects more than system performance.
Getting Help With Solar and Insurance in Abbotsford
When comparing solar providers, don’t look at equipment or pricing alone. Consider installation experience, electrical expertise, system design, and post-installation support. Here are three companies worth checking out:
Abbotsford Solar Installation
Delivers solar installation services for residential, commercial, industrial, and agricultural properties. Solar offerings include grid-connected systems, battery backup and off-grid solutions. We also handle solar system design, permitting, and installation, which is beneficial for property owners seeking support throughout their solar project.
SunSpark Systems
Provides solar energy solutions to help property owners generate their own electricity. Its solar services include system design and installation, with solutions tailored to the property’s energy requirements.
BNR Electric Ltd
Solar installation is part of the company’s electrical contracting services. Offerings include residential solar systems and off-grid solutions with battery backup. The company can also handle the electrical work associated with solar projects, which may be useful for homeowners looking for a contractor with both solar and electrical experience.
What About Batteries and Other Solar Equipment?
If your system includes energy storage solutions, tell your insurer about them too. Batteries can have different coverage requirements because they’re separate electrical equipment and may introduce additional fire-risk considerations.
Don’t assume that coverage for the panels automatically means every component has the same limit.
Ask specifically about:
- Battery replacement coverage
- Fire-related exclusions
- Installation requirements
- Coverage limits
- If the battery must be listed separately
- If detached battery equipment falls under another coverage category
The same principle applies to larger residential and commercial installations. A homeowner shouldn’t assume that rules for a small residential system automatically apply to a larger property or a system connected with business operations.
Does Your Solar System's Performance Affect Insurance?
Usually, no.
Home insurance is designed to cover insured physical losses. It generally isn’t designed to guarantee how much energy your system produces.
For example, shading, dirt or equipment degradation could reduce electricity production. Those are performance issues, not automatically insurance claims. EnergySage specifically notes that standard homeowners coverage generally doesn’t cover performance problems or energy-production shortfalls.
That distinction matters when reviewing a system’s performance metrics. A system can be fully insured even if it produces less energy than expected.
Your solar consultant or installer should explain expected production and the assumptions behind it. Insurance should then be handled separately with your insurer.
A Simple Solar Insurance Checklist
Before the system is installed:
✓ Tell your insurer what you’re planning.
✓ Confirm whether the system will be covered.
✓ Ask whether your dwelling limit needs to change.
✓ Check exclusions for hail, wind and other local risks.
✓ Confirm requirements for contractors and permits.
✓ Ask how batteries or detached equipment will be classified.
After installation:
✓ Send your insurer the final system details.
✓ Provide the installation cost and relevant documents.
✓ Confirm the updated coverage in writing.
✓ Keep invoices, permits and warranties.
✓ Photograph the completed installation.
✓ Review the policy at renewal.
A qualified installer should help you understand the technical side of the system. If you’re considering solar installations in Abbotsford, working with an experienced local provider such as Abbotsford Solar Installation can also make it easier to coordinate installation documentation with your insurance requirements.
Inform Your Insurer Before You Go Solar
Yes, you need to tell your home insurer about solar panels. More importantly, you should do it before the system goes on your roof.
The reason isn’t that residential solar is inherently unsafe or uninsurable. The available Canadian insurance evidence points to a more practical issue: insurers need accurate information about the equipment, its value and how it was installed.
Treating a new solar system as a material change and notifying your insurer helps reduce the chance of a coverage dispute later.
Your system is an investment. Protecting it means more than selecting high-quality equipment based on high efficiency, comparing top brands or looking for fair prices. You also need the right insurance coverage, proper installation, and clear documentation.
The safest approach is simple: disclose the system, confirm the coverage and keep everything in writing.
Frequently Asked Questions
Does a solar lease change my insurance requirements?
Yes. A solar lease can change your insurance requirements because you may not own the equipment. Your lease agreement may specify whether you or the solar provider is responsible for insuring the panels. Tell your home insurer that the system is leased and provide any ownership or installation details they request.
Does my insurer need to know the brand of my panels?
Yes, your insurer may ask for the brand and specifications of your solar panels when assessing replacement costs and coverage. Even if you choose the best solar panels based on their key features, provide your insurer with the equipment details, model information and supporting documentation they request.
Do commercial solar installations must be reported to insurers as well?
Yes, commercial solar installations should be reported to the insurer because they can significantly change a property’s replacement value and risk profile. Larger solar projects may also involve additional equipment, higher system capacity and different liability considerations. The insurer can then determine whether the existing commercial policy provides adequate coverage.
