Homeowners Insurance

[foo1bar]

Liability coverage is very commonly required for interconnect. It was already covered with my policy but some customers have to up their limits a bit.

A ground mount system might require slightly different coverage from a system that's part of the house structure.
A ground mount isn't part of the structure - so there may be some differences - that would definitely be something I'd ask the insurance agent, since in this case the OP's system is a ground mount.

[ButchDeal]

Liability coverage is very commonly required for interconnect. It was already covered with my policy but some customers have to up their limits a bit.

[azdave]

...Part of this process is that in Wisconsin, by Sate Law, I need to provide proof of insurance.

Sounds like there is confusion about what type of insurance is being discussed here. I'm sure your utility could care less if you have insurance to replace your own solar panels if they were damaged in a fire or lighting strike. I'll bet they want liability coverage in case your system malfunctions and does harm to their grid or employees. That is far more likely what they are asking about and unusual for a homeowner grid-tie system in my opinion.

In my business, when any contractor comes into my building to do any work, they first have to provide a Certificate of Insurance for Liability and Worker's Comp. They must prove they have coverage in case they accidentally burn down my building or fall off of a ladder and hurt themselves while they are on my property.

I'll bet that is what they are asking for. My utility never asked for that but I'm in Arizona.

As mentioned earlier, I called State Farm to let them know I had added a PV system and what the replacement value would be if there was a total loss. It was a non-issue to add it to my policy.

[Sunking]

The issue that just cropped up today is that I received an email back from my State Farm insurance agent. I had contacted him as the Utility wants a Certificate of Insurance as required under the law. In response to the request for the certificate my Agent is telling me that State Farm won't provide insurance for this as they consider me a business because I am "selling" power to WE Energies, my power company.

Your agent may be right or not. They have the right to set any policy they want. If that is their policy, you will have to find another carrier. Having said that, it is real easy to find out. Call SF main number and tell them you want to cancel your HO Insurance Policy. When they ask why, tell them. You will find out real quick if the person you talked to right or not. I bet even your local agent will sing a different tune when you tell him to cancel your policy as that is money out of his pocket. He will no longer receive his/her 25% commission every year when your renew your policy.

Before you make that call, locate a Carrier that will write the policy because they may call your bluff. You are going to need that Ace as leverage.

Money talks and BS walks.

[rsilvers]

The insurance company actually calculated true rebuild cost. 4M to rebuild if destroyed. It is insured for that amount. I think it is 15,240 square feet in the town records.

[foo1bar]

In response to the request for the certificate my Agent is telling me that State Farm won't provide insurance for this as they consider me a business because I am "selling" power to WE Energies, my power company.

Ask your agent to follow up with his support at State Farm.

You aren't the first ground-mount system in WE Energy's area.
So if State Farm can't/won't do the insurance, I'm sure there are others who will.
I'd even ask the agent "So since State Farm can't do the insurance, what company would you recommend I talk to about getting insurance?"

[foo1bar]

My 25 kW system is about 1.5% the replacement cost of my house.

I would insure it for the replacement cost. (Even though it cost me less since it was a DIY project)
For a 25kW system, I'd estimate ~$75k.
Is your house's replacement cost $5M?
That'd be a really big house.
Even for the $10M properties around here the building is still much less than $5M to replace.

[brewbeer]

Utility recommended I contact my insurance company. Insurance company had me sign a statement saying I had installed solar panels and identifying the cost of the roof mounted equipment. Premium increased by $12.

[rsilvers]

My 25 kW system is about 1.5% the replacement cost of my house.

[captaindomon]

Doesn't sound like your agent knows what he is talking about.

[Dragon2016]

E-Man & Everyone else:
I am in the process of getting a 7.6kw system installed at my home residence. The system I am installing is a ground-mount system. I have the county permit and am working through the different steps with the Utility for the interconnect at this time. Part of this process is that in Wisconsin, by Sate Law, I need to provide proof of insurance.

The issue that just cropped up today is that I received an email back from my State Farm insurance agent. I had contacted him as the Utility wants a Certificate of Insurance as required under the law. In response to the request for the certificate my Agent is telling me that State Farm won't provide insurance for this as they consider me a business because I am "selling" power to WE Energies, my power company. Here in Wisconsin we are net-metered. If I do not generate enough electricity I pay the difference each month to the utility and if I over produce for the month the issue me a credit.

Any assistance or guidance on who or what office at State Farm I can contact or have my State Farm Agent contact call to get this straightened out? I really don't feel like jumping through the hoops to get a new separate insurance policy when I already have a homeowners policy and umbrella policy with State Farm. I think it is just a communication issue that I can hopefully get fixed by putting my agent in touch with the right person.

Thanks for the assistance!

[Sandman1962]

Actually saved money....

Hello All,
I just went through adding my new system to my homeowner's insurance policy through AAA.
It is a 6.48 kWH system consisting of 24 panels.

I first called to see if I had to add the system to my insurance policy, and the recommendation was to go through the entire home evaluation to make sure that the policy was up to date and adequate (I last went through this over 7 years ago). Well after going through the entire process, taking roughly 45 minutes, I braced myself for a big rate increase. To my surprise, it came out $441 cheaper per year. The explanation was that the premiums actually had a built in increase each year to account for inflation. They would not refund the past few year's worth however.

It might pay to go through the process.

[FFE]

I would have expected it to be much more than 3% of the value of the house (which is NOT the same as the value of the property)

If it's a $15k system (a small 4300W system @ $3.50/W)
At 3% that's ~$500k to rebuild the house. (Not including the dirt the house is on - because you don't insure the dirt since it isn't going to burn if there's a fire - or be damaged (much) by a tornado or lightning or hail or whatever)

Just double checked my policy. You are right, it is 5%. Might have to up my insurance when it renews.

[Mike90250]

With Grange Insurance, battery shed, generator shed & generator, and 2 pole mount arrays, are listed seperatly and have their own deductibles (reasonable).

[foo1bar]

State Farm agent told me that the system is part of the dwelling and therefore covered under my policy. No increase in cost unless I want to increase the total value of my policy. Considering it only accounts for 3% of the value of my home, it isn't worth the paperwork.

I would have expected it to be much more than 3% of the value of the house (which is NOT the same as the value of the property)

If it's a $15k system (a small 4300W system @ $3.50/W)
At 3% that's ~$500k to rebuild the house. (Not including the dirt the house is on - because you don't insure the dirt since it isn't going to burn if there's a fire - or be damaged (much) by a tornado or lightning or hail or whatever)

FWIW, I did increase the value for my policy.
It meant a slight increase in premium (not unreasonable since they're now on the hook for ~$35K more if the house burns down)