Florida’s insurance market struggles have been thoroughly covered recently, highlighting the significant departure of multiple carriers and the overwhelming pressure on Citizens Insurance, the state’s insurer of last resort.

Yet, FM Global, a self-funded insurer that is arguably a gold standard in safety and liability mitigation, claims to have pioneered an idea that may help: a testing system that certifies panels for fire and hail resistance.

“We did a ton of research on how panels are built and should be built,” Louis Gritzo, chief science officer for FM, which focuses on commercial properties, told Insurance Journal, which first reported the story. “The hope is that it’s going to change the way that renewables are implemented and distributed.”

During last week’s Insurance Innovators USA conference in Nashville, Gritzo expressed his hope that more carriers will take advantage of FM’s certification program, increase coverage for solar-equipped properties, and lower their losses associated with buildings that include these systems.

Gritzo noted that the most significant vulnerabilities for solar panels are fire and damage from hailstorms. In 2019, Walmart famously sued Tesla Inc. after several rooftop fires broke out at stores in California, Maryland, and Ohio; the companies eventually settled. 

Adding to the importance of the FM announcement is a backdrop of several Florida-based carriers having shied away from covering panels on residential and even some commercial properties. Their rationale has been that rooftop-mounted panels — whether on shingles, metal, flat, or steep slopes — are prone to leaks. Insurers have also cited the potential added expense of panel removal when a roof needs to be repaired or replaced.

However, researchers with the Florida Solar Energy Center, part of the University of Central Florida, have said that insurers’ concerns about solar systems are vastly overblown. 

In fact, the researchers contend that photovoltaic panels can, in most cases, help hold down shingles in high winds and have found no definitive causal link between rooftop-installed photovoltaic panels and leaks in the roof deck. 

According to news reports, fires are very rare, and while hail damage might occur more frequently, Gritzo, who holds a Ph.D. in mechanical engineering, asserts that the FM approval process now guarantees increased impact resistance in the glass panels. 

FM has established examination standards for panels, including FM 4478 standard for severe hail and fire, as well as a distinct standard for hail impact referred to as FM 4473. 

Several solar manufacturers have been actively promoting FM certifications for their rooftop photovoltaic panels. These certifications have become increasingly important for commercial and industrial buildings — especially those insured by FM Global— and facilities located in regions prone to severe weather, according to Emphase Energy.

Some insurers even offer premium discounts for homes equipped with FM-rated photovoltaic systems, recognizing the enhanced resilience these certifications signify. 

Notable Manufacturers Promoting FM Certifications

Sika Sarnafil’s Sika SolaRoof System

Sika states that its SolaRoof System is the first and only commercial solar roofing system to achieve FM 4478 approval. This integrated solution combines Sarnafil PVC roofing membranes with a non-penetrating, lightweight racking system, ensuring fire and wind resistance without compromising the roof's integrity. The system's design eliminates the need for ballast or roof penetrations, reducing potential leak points and maintaining the roof's warranty. 

SunStyle

SunStyle offers solar shingles that have achieved the highest possible ratings for hail (FM 4473 Class 4), fire (UL 790 Class A), and wind resistance (ASTM D3161 Class F). These shingles are designed to integrate seamlessly with various architectural styles, offering protection against severe weather conditions. 

Lumos Solar

Lumos Solar is among the manufacturers that highlight FM certifications for its products, according to the trade publication Solar Industry. Lumos panels are designed to meet stringent safety and durability standards, including those set by FM Approvals. 

Tesla Solar Roof

Tesla's Solar Roof tiles have a hail rating of ANSI FM 4473 Class 3. These tempered glass tiles are designed to withstand various weather conditions, offering energy generation and protection. 

While perhaps lesser known than its main competitor, Underwriters Laboratories, now known as UL Solutions, FM Global has developed a reputable name for itself in testing and certification.

Although many carriers require Underwriters Laboratories’ certification for certain products, it’s rare for insurers themselves to invest in the testing and research, which makes FM Global unique within the insurance industry. Solar panels are among the dozens of products and systems that FM reviews for safety, durability and climate resilience. 

A significant portion of the testing takes place at FM’s 1,600-acre research campus, located near its corporate headquarters in Rhode Island.

“Doing it this way really floats all boats,” Gritzo said about the solar system certification. “It would be great if other insurance companies want to use our certifications.”