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Florida solar homeowners insurance FAQ

• Solar accessibility

April 8, 2024

How do I talk to my insurance agent/carrier about adding solar panels to my home?

• We always encourage homeowners to loop in their agents/carriers while going solar! Your solar system will increase your home’s value, so you may need to increase your coverage amount accordingly. Your carrier may have specific policies about hurricane coverage for your panels or require an “endorsement” for your panels—this is typically an additional coverage.
• Keep it simple! Don’t overcomplicate the conversation. Share that you are going solar and your system is a “fixed asset” (if roof-mounted) to your home.

Can an insurer end a homeowner’s insurance policy for adding solar to their home?

• Many providers cover solar without pause. Shop around.  Some insurance companies have agents, some use brokers, and some are direct sales.
• There is not a current written policy filed with the Florida Office of Insurance Regulation that allows an insurer to drop homeowners for going solar. If your insurance carrier proposes dropping you, ask for a written declaration detailing why. You are entitled to this.

Have we heard of homeowners insurance companies ending policies specifically because of “net metering”? What should someone do in this case?

• Yes, we have heard of this, though in 2024 we are only aware of one insurance carrier doing this. We are left baffled by this decision and clear confusion from this company about the meaning of “net metering”—a utility rate tariff. The state regulatory body, the Public Service Commission, has been clear—net metering is not a commercial enterprise.

Are people allowed to self-insure solar panels and not include the solar panels in their homeowner’s insurance coverage?

• We are not making a recommendation on whether you should self-insure/not include your panels in your insurance. We believe that insurance companies should provide affordable coverage including your solar panels. We are aware of some people in Florida who have chosen to not include their panels when insurance companies would not offer affordable coverage.

What should I do if my insurance premium is raised for adding solar?

• Shop around for other options.
• Make sure you are maxing out available insurance discounts, including for impact windows and doors and other upgrades.
• Make sure solar still makes sense for you.

Why do Tier 2 solar systems (those above 10 kW AC) require a one-million-dollar liability policy?

• The state net metering rules allow utility companies to require up to a one-million-dollar insurance policy for Tier 2 systems. Utilities have interpreted that to mean that they can require one-million-dollar insurance for all of these systems. However, we are aware of no claims for damages to a utility’s property caused by an inverter-based system, and it seems that there is little theoretical potential for damage to a utility’s property caused by an inverter-based system of less than 1,000 kW (same as 1 MW). This also seems to be a perversion of the intent of the rule’s language.

How do I get the best deal on a $1 million insurance policy?

• This is a simple umbrella policy.  Don’t overcomplicate it! Ask for a $1 million liability policy on your “premise”. This shouldn’t cost more than a couple hundred dollars a year.  However, it can be more depending on how many items you want to cover, e.g. pool, other vehicles, RVs, etc.