Yes, Sunlight requires that all homeowners going solar get an insurance policy to cover the full replacement cost of the solar system. This insurance coverage can come through the consumer’s home insurance policy or through another insurance provider. Please advise the consumer to check in with their homeowner's insurance to see if it will cover a new solar system; this may or may not affect the consumer’s insurance premiums.

What is stated in the loan agreement about insurance coverage?

Insurance: You covenant and agree that effective as of the date of Installation of the System and at all times until the Loan is paid in full, you will maintain insurance of a type and in an amount sufficient to cover the replacement cost of your Residence and the System. This insurance coverage may be provided by any insurer of your choice who is authorized by law to provide such coverage.

Why is it important to get insurance coverage?

If the consumer's system is ever damaged due to natural events or otherwise, the installer will typically not cover the cost of replacement. In this scenario, the consumer will be responsible for the cost of repairing the system either with insurance policy proceeds or by making an out of pocket payment for the repair.