How Does Adding Solar Panels to Your Roof Affect Your Homeowners Insurance in Myrtle Beach, SC?
February 6, 2025, by Brad Davis, CIC
If you are a homeowner in Myrtle Beach, SC, looking to upgrade your property, installing solar panels might be an option you’re considering. The move to solar energy not only helps you reduce your carbon footprint but can also lower your electricity bills. However, before you make the switch, it’s important to understand how adding solar panels to your roof could impact your Homeowners Insurance.
Here’s a breakdown of the key factors you should know:
1. Increased Home Value and Insurance Premiums.
Adding solar panels to your roof can increase the value of your home. Insurance companies assess the replacement cost of your property, and since solar panels are a valuable asset, they might increase the overall value of your home. As a result, you might notice an increase in your homeowners insurance premium to cover the added value.
However, the increase is usually not drastic. Most insurance policies are designed to adjust for improvements like solar panels, and the added cost may only reflect the price of replacing or repairing the panels in case of damage or loss. On the other hand, consider that if solar panels are damaged, it could also prompt a need for a new roof.
2. Solar Panel Coverage: What Does Your Policy Include?
Many homeowner insurance policies cover solar panels, but this varies depending on your insurer and the specifics of your policy. It’s crucial to verify whether your solar panels are covered under your current policy. Some key factors:
- Not all insurance policies cover solar panels.
- Some policies will only cover solar panels if they are owned (not leased).
- Some insurance companies count solar panels differently (by size of panels or other method).
- Some policies will only cover solar panels on the main home’s roof (not detached from the home).
- Some insurance companies deem a property ineligible for coverage if there are solar panels.
- Some insurance companies allow solar panels, but do not offer coverage for them.
- Some insurance companies cover solar panels differently based on where they are located.
- Some insurance companies do not like it if energy is sold back to the utility or electric company.
- If coverage is provided, will it be on a Replacement Cost or Actual Cash Value basis?
*As you can see, there are several ways solar panels may impact your coverage. Speak to an experienced insurance agent about your options and READ YOUR POLICY. This is not an exhaustive list, other limits, exclusions, or options may be available.
4. Will Installing Solar Panels Lower My Insurance Premium?
Adding solar panels may lead to savings in energy costs. But I have not seen a home insurance policy for the Myrtle Beach area that actually gives a discount for having or adding solar panels.
A few customers have told me they heard there would be a discount on their policy if they add solar panels. I am not sure where they got that information, but I am not seeing that at all.
Now, we represent several home insurance companies, and I see other policies every day, and I have not seen a discount yet. To be fair, I guess there is a company out there that I am not familiar with that gives a discount. But again, I haven’t seen it myself.
On the contrary, adding coverage for solar panels will typically increase your premium a little. But in my opinion, the small additional premium is well worth the additional coverage!
Some say having solar panels can reduce the risk of electrical fires or damage from power surges, which could potentially lower your risk profile and lead to lower premiums over time. To be honest, I have no proof or data on this – just relaying what I have heard.
5. What to Do Before Installing Solar Panels on Your Coastal Home.
Before you install solar panels, make sure to:
- Consult Your Insurance Provider: Let your insurer or insurance agent know about your plans to install solar panels and discuss any changes to your policy. This helps prevent surprises from potentially popping up later.
- Check for Local Regulations and Permits: In Myrtle Beach, SC, there may be specific regulations for installing solar panels on residential roofs. Make sure you get the proper permits and work with licensed professionals to ensure everything is up to code.
- Document Your Installation: Take photos of your solar panel system once installed. This documentation can be helpful for your insurance provider in case you need to file a claim later.
6. Other Considerations When Thinking about Adding Solar Panels.
- Work with a reputable solar panel installer. They should be able to help you determine things like:
o Roof condition and space
o Sunlight exposure
o Energy consumption and needs
o System size and panel efficiency
o Cost and financing options
o Local regulations and permits
o Grid connection and battery storage
o Return on investment (when it comes to how much you may save on energy bills or save on your power bill)
o Maintenance and warranty
- Speak to an experienced and local real estate professional. They can likely help you with information such as:
o Are they allowed in your area or subdivision?
o Will it positively or negatively affect the value of your home?
o Feedback from past clients regarding their satisfaction or dissatisfaction.
o Restrictions regarding solar panels. For example: I’ve seen a neighborhood that only allows solar panels on the backs of homes (so you can’t see them from the road).
- Other professionals that may give good advice.
o Roofing Professional – It may be smart to have someone look at the condition of your roof and its life expectancy before installing solar panels.
o Electrician
o Financial Advisor or Tax Professional – Some solar panel programs offer a tax credit, and it may be good to understand how that could affect your finances.
o Local Utility Company
o Homeowners Association
Conclusion:
While adding solar panels to your roof in Myrtle Beach may increase your home value and energy efficiency, it is essential to understand how it impacts your Homeowners Insurance. Be sure to review your policy, discuss coverage options with your insurer, and consider additional protection for your solar system. By taking these steps, you can fully enjoy the benefits of solar energy with the peace of mind that your investment is well-protected.
Home Insurance in coastal areas like Myrtle Beach, SC is already in less of a supply and more costly when compared to more inland areas. It takes an experienced local Myrtle Beach insurance agent to navigate all the nuances we have with coastal insurance. Adding solar panels adds one more factor to consider. Let your agent know and let them work to find the coverage you need and want.
For homeowners in Myrtle Beach, making a switch to solar energy can be a smart decision—just make sure you’ve got the right insurance coverage in place before you install those panels!
Protect Your Home in Myrtle Beach (with or without solar panels) with Davis Insurance Associates Today!
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