Home insurance and solar panels in Perth: what you need to know

Installing solar panels on your Perth home involves two distinct insurance considerations: whether the panels are covered under your existing home insurance policy, and whether your workmanship warranty covers any installation-related damage. Getting both right protects your investment.

Do home insurance policies cover solar panels?

Yes — most Australian home and contents policies automatically cover solar panels attached to the home as part of the building structure. This typically includes:

• Panels physically fixed to the roof
• The inverter (wall-mounted)
• Battery storage systems installed on the property
• Mounting hardware and conduit

However, the specific terms vary significantly between insurers. Some key areas to check:

Is there a separate sum for solar? Some policies have a sublimit (e.g., a $10,000 cap) for solar systems, which may be insufficient for a large system. A 13.3kW system with battery can cost $20,000–$35,000 to replace.

What causes are covered? Standard home insurance covers:

• Storm damage (hail, wind, lightning strike)
• Fire
• Theft (less common for mounted panels, but relevant for batteries/inverters in unlocked garages)
• Accidental damage (if you have accidental damage cover on your policy)

What's typically NOT covered:

• Manufacturing defects (covered by manufacturer warranty, not home insurance)
• Mechanical/electrical breakdown (use home appliance protection or manufacturer warranty)
• Gradual deterioration
• Damage during installation (the installer's public liability insurance covers this)

Notifying your insurer when you install solar

Most home insurance policies have a material change clause — you're required to notify your insurer of significant changes to the insured property. Adding a solar system (particularly a battery system, which has a non-trivial fire risk if damaged or installed incorrectly) is typically a notifiable change.

Notify your insurer:

1. Before installation — confirm the new system will be covered under your current policy
2. Provide the system specifications — total installed value, panel brand and model, inverter brand, battery (if any)
3. Check the sum insured is adequate — the insured value of your building should include the solar system

Failing to notify your insurer can result in a reduced claim payout if you claim while the coverage terms haven't been updated.

Battery storage and insurance

Home batteries (BYD, Sungrow, Alpha ESS, Enphase, Sigenergy) are lithium-based storage systems with a very low but non-zero fire risk in the event of physical damage, water intrusion, or faulty installation. Insurers are increasingly familiar with residential batteries, but some may ask specific questions about:

• Battery chemistry (LFP vs NMC — LFP is safer and more thermally stable)
• Whether it is installed indoors or outdoors
• Whether it was installed by a CEC-accredited installer
• Compliance certificate

Outdoor installation (most common in Perth — garage wall, carport, or exterior wall) is generally viewed more favourably than indoor installation from an insurance perspective.

Tesla Powerwall 3 note: Tesla Powerwall 3 is NOT on Synergy's Solar Suitability List and cannot claim the WA Battery Incentive — but it is fully covered by home insurance the same as any other battery and has its own 10-year warranty.

What happens if your system is damaged in a storm

Perth experiences hail and severe thunderstorms, particularly in winter (May–August). Solar panel glass is designed to withstand hail up to 25mm at 23 m/s (AS/NZS 4941:2005 IEC 61215 testing). Larger hail or direct lightning strikes can damage panels.

For an insurance claim:

1. Document the damage immediately with photographs
2. Contact your insurer to lodge a claim
3. Your insurer will send an assessor — don't repair before the assessment unless there's an immediate safety risk
4. The assessor determines whether the damage is storm-related (covered) or pre-existing/wear-related (not covered)

Replacement panels must be like-for-like or equivalent specification — your installer arranges replacement under the claim.

The installer's liability insurance vs your home insurance

These are separate and non-overlapping protections:

Installer's public liability insurance (they're required to hold this under WA electrical licensing rules) covers damage caused during installation — a dropped panel that breaks your skylight, or a roof tile cracked by an installer's boot. This is the installer's claim, not yours.

Your home insurance covers damage to the solar system after installation — a hailstorm, a vehicle impact on an accessible inverter, a fire.

Manufacturer warranty covers defects in materials and workmanship originating from the manufacturing process — a panel that develops a delamination fault, an inverter component failure within warranty period.

If there's ambiguity about the cause of damage, documenting the installation condition (photographs immediately after installation completion) helps establish a baseline.

Checking your sum insured

When your solar system is installed, your home's insured value should increase by the replacement cost of the system. If your home is insured for $550,000 (building) and you add a $20,000 solar + battery system, your new insured value should be approximately $570,000.

Many Perth homeowners discover their home is underinsured (insured value below replacement cost) — this is a systemic issue in Australian insurance, particularly for homes that have had significant renovations. Adding solar is a good prompt to review your total sum insured.

The practical checklist: notify your insurer before or immediately after installation, provide the system value and specifications, confirm the sum insured covers the total replacement cost, and check the policy sublimits for solar systems. Most standard policies cover storm and fire — manufacturing defects are the manufacturer's responsibility, not your insurer's.