Solar panels cause homeowner to lose insurance coverage

[dnewton3]

I found this interesting. I wasn't aware this was an issue, but this appears to be yet another concern relative to green energy. Yes - you can have too much of a good thing ...

Apparently, the owners produce so much energy (to be self-sustaining) that there are energy risks which affect their homeowner's insurance. A tier system is present for the solar systems, and they make enough energy that the insurance company is cancelling their coverage. (I'm sure there are dets which would explain this further, but the news story below doesn't go into details).

The owners stated that they can get coverage from other sources, but at 2x or 3x the current cost. The increased costs of insurance are likely to be more than what they save in electric costs. They also state they could cut their solar production by disconnecting 1/3 of the array, and stay in the insured class, but at that point, they probably would not be "cost neutral" in their electric production, and end up spending money purchasing electricty.

Enter the law of unintended consequences ... Just when you think you've got the system beat, it comes back to bite you in the posterior.

 

[jhellwig]

My guess is that they are selling enough power they are considered a commercial entity?

 

[edyvw]

One word: Florida!!!

 

[BHopkins]

My guess is that they are selling enough power they are considered a commercial entity?

That seems reasonable. Could it also be a significant fire risk, from generating that much power? Or, could it be the significant risk to the insurance company, for the increase in replacement cost in case of loss, for that many solar panels?

 

[BHopkins]

Personally, I think I would side with the insurance company. It seems totally unreasonable, to expect to add all that power generation, and the value of all those panels and related circuitry, and never notify your insurance company, to have the policy modified to address it. Who would add a pool without changing the insurance policy? Or build a major addition, without getting the coverage increased to cover it? Then why would you add what must be $100k+ of solar panels, without making sure your policy will cover it?

 

[Revving2Redline]

I think Amazon had too many on a building and a fire occurred

 

[BHopkins]

I found this interesting. I wasn't aware this was an issue, but this appears to be yet another concern relative to green energy. Yes - you can have too much of a good thing ...

Apparently, the owners produce so much energy (to be self-sustaining) that there are energy risks which affect their homeowner's insurance. A tier system is present for the solar systems, and they make enough energy that the insurance company is cancelling their coverage. (I'm sure there are dets which would explain this further, but the news story below doesn't go into details).

The owners stated that they can get coverage from other sources, but at 2x or 3x the current cost. The increased costs of insurance are likely to be more than what they save in electric costs. They also state they could cut their solar production by disconnecting 1/3 of the array, and stay in the insured class, but at that point, they probably would not be "cost neutral" in their electric production, and end up spending money purchasing electricty.

Enter the law of unintended consequences ... Just when you think you've got the system beat, it comes back to bite you in the posterior.

I can't help but wonder, if they had originally had a system installed that was designed for "cost neutral", or only slightly more, would they have ever drawn the attention of their insurance company?

 

[atikovi]

One word: Florida!!!

^This. Rates on my 2 br. house 5 miles inland which has never had a weather claim in 30 years, even through the worse hurricanes the last 10 years has gone from under $1000 five years ago to $4000 now. If it goes up much at renewal in June, I'll self insure. Screw them and the legislatures who can't fix this mess. When the home buyers find out the rates and stop buying houses, they may notice then.

 

[slacktide_bitog]

My guess is that they are selling enough power they are considered a commercial entity?

This is my guess too

 

[edyvw]

^This. Rates on my 2 br. house 5 miles inland which has never had a weather claim in 30 years, even through the worse hurricanes the last 10 years has gone from under $1000 five years ago to $4000 now. If it goes up much at renewal in June, I'll self insure. Screw them and the legislatures who can't fix this mess. When the home buyers find out the rates and stop buying houses, they may notice then.

The situation with insurance in FL is absolutely ridiculous.
My friend who lives in Pensacola said three of his neighbors left the State. He has a unique job, plus divorced small kids, so he is stuck, but as soon as he can, he is packing and leaving.

 

[edyvw]

This is my guess too

I do not know how is in FL, and I will give the benefit of the doubt that it is FL so "anything goes."
But, I have solar panels, and when I signed the contract my utility company had to approve the size. The size that was approved was 120% of my usage. I know that is the same in TX, but size depends on utility companies and TX is pushing solar big time to make up for lack of generating power, especially in summer.

But, this is not a solar issue. It is Florida, it is astonishing what mess insurance is there.
I think last August they topped as the least affordable state to live bcs. that, now I think they are second.

 

[ekrampitzjr]

The big issue with solar panels has been the added weight on the roof, especially on retrofits on older homes. The panels could get in the way of firefighters trying to break through the roof to put out the fire, or the roof could collapse sooner in a fire or bad weather. Also, the risk of electrocution from the wiring for solar systems has come up for firefighters, similar to the risks for fighting a hybrid-vehicle fire. With all that, it's easy to understand the insurance company's concerns.

 

[brianl703]

The big issue with solar panels has been the added weight on the roof, especially on retrofits on older homes. The panels could get in the way of firefighters trying to break through the roof to put out the fire

Fire setbacks required by code:

Also, the risk of electrocution from the wiring for solar systems has come up for firefighters

Label required to be placed on disconnect switch accessible from exterior of house, per code:

There are also UL requirements for the inverter to support rapid shutdown:

 

[Greasymechtech]

Florida had a few hurricanes, like Michael and Ian. Everyone around here was dropped from their insurance and are now paying 2x-3x, even without solar panels.

There are plenty of garbage solar installations around here. Only a fool trusts a door-to-door salesman and the overpriced hack solar installs that are pushed. About time the insurance companies push back.

Insurance company also demanded a new roof on our house with perfectly good roof, for better wind performance, along with hurricane ties in the rafters, and refastening of the decking. They also demanded new hot/water lines to the clothes washer. Ask your insurance about some of those known leaky refrigerators and dishwashers too. If you want their insurance, its under their rules.

 

[demarpaint]

A lot of things to consider when putting solar panels on a house. I didn't realize it but insurance must be another to consider now. I can see a botched installation job causing leaks. Now that I think of it my neighbor called me for an estimate to repair and repaint her living room ceiling a few years back shortly after having solar panels installed. A friend spent $3,000 due to squirrels building a nest under his which caused him all sorts of problems. Then the cost of replacing a roof at some point, and having to remove the solar panels and then reinstall them, or replace them. I wonder how many people consider the pitfalls when they take the plunge, and how much they're really saving factoring everything in? My bet, not as much as they think. Another bet, many won't give an honest answer.

Now to have solar roof shingles that last as long as a high quality roof job, and not have those ugly problem prone panels, I'd consider it.

 

[Lapham3]

My pal that is a retired American Family corporate person told me years ago that they quit doing business in Florida years ago, because of high risk. Similar with friends in the low mountains in Calif as the fire danger is so high that nobody will write in their area close to Paradise. They finally moved back here after 30 years, but had to find a cash buyer as a mortgage company will require fire insurance.

 

[97prizm]

Florida had a few hurricanes, like Michael and Ian. Everyone around here was dropped from their insurance and are now paying 2x-3x, even without solar panels.

There are plenty of garbage solar installations around here. Only a fool trusts a door-to-door salesman and the overpriced hack solar installs that are pushed. About time the insurance companies push back.

Insurance company also demanded a new roof on our house with perfectly good roof, for better wind performance, along with hurricane ties in the rafters, and refastening of the decking. They also demanded new hot/water lines to the clothes washer. Ask your insurance about some of those known leaky refrigerators and dishwashers too. If you want their insurance, its under their rules.

Insurance companies should alo investigate what the real costs are. In Colorado we had a high wind storm a few years ago damaging roofs. My dad and I calculated the material costs for their roof plus labor costs. We figured $8-10,000. Roofers were charging 15-40,000. The insurance companies were just cutting checks without verifying costs.

 

[billt460]

The big issue with solar panels has been the added weight on the roof, especially on retrofits on older homes. The panels could get in the way of firefighters trying to break through the roof to put out the fire, or the roof could collapse sooner in a fire or bad weather. Also, the risk of electrocution from the wiring for solar systems has come up for firefighters, similar to the risks for fighting a hybrid-vehicle fire. With all that, it's easy to understand the insurance company's concerns.

This, along with insurance not covering damage from wind, or water damage from leaks caused by inferior installation methods. These type of horror stories are everywhere within the confines of this industry.

The solar "industry" is full of fly by night, here today, gone tomorrow businesses that don't last. They cash in on the government subsidies, and end up out of business as fast as they got in.

Then their customers are left holding the bag, while trying to find someone to clean up the mess made by these incompetent fast buck artists.

Many of these shady outfits operate much like construction crews who descend on hurricane victims. They promise rapid repairs. Then collect a large deposit for materials that never get purchased when they skip town.

 

[flash7210]

One word: Florida!!!

Believe it or not, the state of Florida, county governments, and the power companies do not want solar installed on residential properties.
Years ago there was a state law enacted (and later rescinded) that made solar panels illegal on residential properties.
The only reason it's allowed is because it's popular as a cost saving green energy source.
It is entirely the responsibility of the homeowner to ensure solar installation is done properly.
The power company only cares about the connection to the grid.
The county only cares about the paperwork.
The state officials only care about collecting money from the lobbyists.
And the insurance company will find any reason to raise your rates as there is no regulation.

 

[BMWTurboDzl]

That seems reasonable. Could it also be a significant fire risk, from generating that much power? Or, could it be the significant risk to the insurance company, for the increase in replacement cost in case of loss, for that many solar panels?

No fire risk.

I found this interesting. I wasn't aware this was an issue, but this appears to be yet another concern relative to green energy. Yes - you can have too much of a good thing ...

Apparently, the owners produce so much energy (to be self-sustaining) that there are energy risks which affect their homeowner's insurance. A tier system is present for the solar systems, and they make enough energy that the insurance company is cancelling their coverage. (I'm sure there are dets which would explain this further, but the news story below doesn't go into details).

The owners stated that they can get coverage from other sources, but at 2x or 3x the current cost. The increased costs of insurance are likely to be more than what they save in electric costs. They also state they could cut their solar production by disconnecting 1/3 of the array, and stay in the insured class, but at that point, they probably would not be "cost neutral" in their electric production, and end up spending money purchasing electricty.

Enter the law of unintended consequences ... Just when you think you've got the system beat, it comes back to bite you in the posterior.

This, along with insurance not covering damage from wind, or water damage from leaks caused by inferior installation methods. These type of horror stories are everywhere within the confines of this industry.

The solar "industry" is full of fly by night, here today, gone tomorrow businesses that don't last. They cash in on the government subsidies, and end up out of business as fast as they got in.

Then their customers are left holding the bag, while trying to find someone to clean up the mess made by these incompetent fast buck artists.

Many of these shady outfits operate much like construction crews who descend on hurricane victims. They promise rapid repairs. Then collect a large deposit for materials that never get purchased when they skip town.

The problem is the public utility (Florida Power and Light) is saying in their contracts that the homeowner is responsible for covering all damages caused by the panels.

Also insurance companies are in part responding to climate change and reducing coverage/increasing premiums in states like Florida and Louisiana because they are operating at losses due to both greater density and higher frequency of damaging storms (this doesn't just include hurricanes).