Solar Panels in Brooklyn: How They Impact Your Property Insurance Coverage and What You Need to Know

As Brooklyn homeowners increasingly turn to solar energy to combat rising electricity costs and reduce their environmental footprint, understanding how solar panel installations affect property insurance has become crucial. The federal investment tax credit (ITC) lowers the total cost of installing solar by 30%, but only until December 31, 2025—after that, it’s gone, making this the perfect time to explore both the benefits and insurance implications of going solar.

Understanding Solar Panel Coverage Under Property Insurance

Rooftop solar panels are typically covered under your standard homeowners policy as part of your dwelling coverage, since they’re considered a permanent attachment to your home. This is excellent news for Brooklyn homeowners, as solar panel insurance coverage is included in most homeowners insurance policies, which means no separate solar panel insurance is needed. Solar energy systems and the rooftop panels or tiles are largely considered a permanent attachment to your property, similar to a patio or a security system.

However, coverage can vary depending on installation type. Ground-mounted solar panels and solar panel carports may require additional coverage since they’re not attached to your home’s structure. For Brooklyn residents with limited roof space who opt for alternative installations, this distinction becomes particularly important.

Coverage Benefits and Premium Considerations

While solar panels generally don’t dramatically increase insurance premiums, there are important coverage considerations. Since solar systems cost $29,649 on average in 2025, you may want to talk to your insurer about raising your coverage limit to ensure you’re fully protected. In Brooklyn, where you’ll pay an average of $18,600 to install a 5 kilowatt solar panel system before incentives, though prices range from $15,810 to $21,390, this coverage adjustment becomes essential.

Your insurance premium can increase if solar panels increase the replacement value of your home enough to exceed your coverage limit and you decide to adjust your coverage amount. For those who do see increased homeowners insurance costs after they go solar, payments can go up by as little as $15 a month, or as much as a few hundred dollars a month.

Potential Risks and Coverage Limitations

Brooklyn homeowners should be aware of potential coverage limitations. Your homeowners policy may exclude coverage for improper installation, damage caused by wear and tear, and, in some cases, wind and hail. In 2025, some insurers in hail-prone areas have begun excluding or limiting wind and hail coverage for solar panels, requiring separate endorsements.

Weather-related risks are particularly relevant for Brooklyn properties. While solar panels are generally durable, extreme weather conditions like hail, hurricanes, and other severe events can still cause damage. Homeowners in high-risk areas should review their insurance policies to ensure they include coverage for weather-related damage.

The Brooklyn Solar Advantage

Despite potential insurance considerations, Brooklyn presents an excellent opportunity for solar investment. According to research completed by Zillow, the average US home will increase in value by around 4.1% with solar panel installation. Given the average home value in New York of $729,936, that equates to an average value bump of around $29,927, which more than makes up for the price most New Yorkers will pay for solar. The bump in value could be even higher in areas like New York City (NYC), Brooklyn, Queens and Long Island, where property values tend to be higher than upstate.

Electricity rates have shot up 26% in NYC since 2020. By generating your own electricity with solar panels, you’ll significantly reduce your electric bills. Over time, these savings add up, offsetting the initial cost of installation and providing a rich return on your investment.

Working with Experienced Brooklyn Insurance Professionals

When considering solar panel installation, it’s crucial to work with an experienced local insurance provider who understands Brooklyn’s unique property landscape. Max J. Pollack & Sons has been serving the New York Metropolitan community for over 75 years. Today, we serve clients throughout the entire greater New York City area from our office in Park Slope, Brooklyn. We are a family business that has been serving the New York Metropolitan community for over 75 years.

For Brooklyn homeowners considering solar installation, securing proper brooklyn property insurance coverage is essential. Max J. Pollack and Sons is a leading Brooklyn insurance company that has been serving the local community for more than 80 years. With comprehensive policies that can be customized to meet your unique needs and agents who are committed to providing personalized attention to detail, it’s no wonder why we’re the first place Kings County residents and business owners call when they’re looking for an “insurance company near me”.

Key Steps for Brooklyn Solar Homeowners

Before installing solar panels, Brooklyn homeowners should take several important steps:

• Call and confirm your company will approve adding solar panels to your coverage, and if they will approve a coverage limit increase if necessary
• Review your policy to make sure your current policy covers solar panels and understand the details of your coverage. Consult your insurer about how installing solar panels may affect your premium
• Make sure you increase your dwelling coverage to reflect the added value solar panels bring to your home
• Consider whether your installation type (roof-mounted vs. ground-mounted) requires additional coverage

The Time to Act is Now

With the tax credit expiring, it’s more important than ever to start the process early. Solar installations typically take 2-4 months from signing a contract to system activation, so don’t wait until the last minute to begin the process. Brooklyn homeowners have a unique opportunity to benefit from both significant energy savings and property value increases while the federal incentives remain at their highest levels.

By understanding the insurance implications and working with experienced local professionals, Brooklyn homeowners can confidently make the transition to solar energy while ensuring their investment is properly protected. The combination of rising electricity costs, excellent solar incentives, and increased property values makes Brooklyn an ideal location for solar adoption—with the right insurance coverage in place.