Are you thinking about getting solar panels on your Washington home? According to the Solar Energy Industries Association (SEIA), Washington State ranks 33rd in solar power generation in the first quarter of 2024. The state has seen 711 megawatts of solar power installed in the first quarter of the year, and it’s a great choice because it lowers your municipal electric bill. It also improves home values and attracts buyers. However, if you install solar on your home, you may be wondering if it affects your home insurance premiums. Let’s take a look at how solar could affect your monthly insurance payments.
What Can Solar Do for Your Washington Home?
If you’re looking for ways to lower your electric bills, solar can be a good choice. Solar panels take visible light from the sun and convert it into energy that you can use to power the electronic items in your house. Since solar is renewable, once you install the panels on your house, they will generate energy when the sun is shining. You can think of installing solar panels like having your own personal power generator.
How Long Do Solar Panels Last?
You can expect your solar panels to generate optimal electricity for between 25 and 30 years, according to an article in Forbes. It’s important to note that after 25 years, the solar panels may begin to generate less electricity than when they were newer. However, you might be surprised to know that as long as the panels are connected to your house, they will continue to generate some power. What homeowners need to be aware of is that the solar inverters that convert the sun’s light into energy only last 10 to 15 years, so you may have to replace the inverter before your solar panels start showing signs of wear.
How Do Solar Panels Affect Home Values in Washington?
Solar panels do increase a home’s value. According to MarketWatch, homeowners who install solar panels on their homes can expect a value increase of up to 4 percent. This translates to about a 9,000 dollar increase in the average home’s value.
Does the Increase in Home Value Affect My Insurance Rates?
The increased value of your home does affect your insurance rates. In addition to that, you need to think about how much it would cost if your panels were damaged by a covered event, like a lightning strike, large hail or high winds, you might turn in a claim on your insurance for the repair to replacement of the damaged panels and components. Your insurance company has to take this into consideration when they underwrite your policy. Therefore, it’s the added components and the increase to your home’s value that increase the insurance premiums on your Spokane home.
What Can You Do to Mitigate Higher Homeowners Insurance Premiums?
If you’re installing solar panels on your home in order to reduce your reliance on the electric grid and lower your energy bills, there are things you can do to keep your homeowners insurance rates affordable.
Find Out Your Current Insurance Carrier’s Rate, Then Compare the Costs of Other Insurance Providers
Before you install your solar panels, it may be a good idea to call your current insurance provider to find out how the installation might affect your insurance rates. Once you have a price, you can compare the rates of other insurance carriers to see if they’re less expensive. If you want to shorten the time it takes you to review various policies, you might choose an insurance broker, like Boyd Insurance Brokerage Inc., in Spokane.
Consider Raising Your Deductible
You can also lower your rates by assuming more of the risk. You’d do this by raising your insurance deductible. However, this means that you’d hate to pay more if your home were damaged by a covered event.
Consider Upgrades that Would Make Your Home More Resistant to Natural Disasters
If you’re installing solar panels and you also need to replace your roof, consider installing an impact-resistant roof and roofing materials that offer a higher wind rating. Some insurance carriers will give discounts if your home is more weather-resistant.
Consider Getting More than One Policy from the Same Insurance Carrier
Many insurance companies offer discounted rates if you purchase several policies from them. Most people choose to get their homeowners insurance and car insurance from the same carrier, but you could also get boat insurance, RV insurance and life insurance all from the same insurance company.
Affordable Homeowners Insurance With Boyd Insurance Brokerage Inc. in Spokane, WA
If you’re thinking about getting solar panels on your home in order to lower your electric bills, our agents at Boyd Insurance Brokerage Inc. can help you find affordable homeowners insurance that also covers your new panels. In addition to homeowners insurance, we also offer car insurance, snowmobile insurance, motorcycle insurance and boat insurance, and we can often find policies that are more affordable than your current policies.
If you need home insurance, give us a call today at 509-340-2693.
