Does Home Insurance Cover Solar Panels in Texas? Here’s What You Need to Know

Solar panels are becoming a common sight across Texas rooftops. They help lower energy bills and reduce your carbon footprint—but what about insurance coverage? If you’ve installed or plan to install solar panels, it’s important to know how your home insurance protects them.

When You Own Your Solar Panels

If you own your solar panels, most Texas home insurance policies treat them as part of the dwelling (Coverage A). That means they’re usually covered for risks like hail, wind, fire, or lightning, subject to your deductible.

Because panels add value to your home, you should review your dwelling limit with your agent to ensure your coverage is high enough to replace both your home and the panels in a worst-case scenario.

In Texas, hail and wind are frequent culprits when it comes to solar panel damage. Some insurers apply a separate wind or hail deductible—often higher than your standard deductible. Make sure you know which one applies before you need to file a claim.

When Your Solar Panels Are Leased

Leased solar panels are a little different. If you’re leasing your panels or have a solar power purchase agreement (PPA), the panels usually belong to the solar company. In this case, the solar provider often maintains their own insurance.

Still, it’s smart to double-check whether your policy provides liability coverage in case the panels cause damage to someone else’s property or injury. Always keep a copy of your lease agreement and review the insurance requirements.

Removing and Reinstalling Solar Panels

Roof replacements are common in Texas, especially after hailstorms. If your roof needs work, you’ll need to remove and reinstall your solar panels.

Home insurance will typically only cover those costs if the roof replacement is related to a covered claim (like hail or wind damage). If you’re replacing an old roof due to age or wear and tear, those removal and reinstall costs are generally your responsibility.

It’s also important to note that if you lease the solar panels, the solar company may be responsible for removing and reinstalling them.

Other Important Tips

• Talk to your agent before installation. Your panels change your home’s replacement cost—make sure your coverage keeps up.

• Confirm warranty details. Check with your roofer and solar company to ensure your warranties stay valid after any work.

• Ask about optional coverage. Some insurers offer endorsements for equipment or renewable energy systems that provide broader protection.

The Bottom Line

Solar panels are a great investment for Texas homeowners—but they’re not one-size-fits-all when it comes to insurance. Whether you own or lease your system, understanding your policy before installation can help you avoid surprises later.