If you live in a location where the temperature rises over 90 degrees on a regular basis, you know the value of your air conditioner. But like all things in your home, the HVAC unit may undergo damage at one point and, eventually, need a replacement.
If your AC unit is damaged or about to go out, you might be wondering: does my home insurance cover repair and replacement for my HVAC unit?
You’ll find out all that and more here. Here’s what you’ll learn in this post:
- What type of policy covers air conditioning replacement?
- When does homeowners insurance cover HVAC units?
- When homeowners insurance doesn't cover HVAC units?
- Why home warranties might be your answer
- How to file a home insurance claim for an air conditioning unit
WHAT TYPE OF POLICY COVERS AIR CONDITIONING REPLACEMENT?
Homeowners insurance is broken into three major parts: dwelling coverage, personal property coverage, and personal liability coverage.
Dwelling and other structures coverage is responsible for covering any structural repairs for anything on your property (including your home, garage, shed, etc.); personal property coverage is designed to protect your personal belongings (like furniture); and personal liability protects you if someone sues you after being injured on your property or other situations where liability coverage is extended based on your particular policy.
Home insurance is meant to cover your property for unforeseen and sudden damage or situations. Since an AC unit breaking down may not be from a sudden event, it may or may not be covered by your policy.
Let’s take a closer look at what’s covered by your carrier and what isn’t.
WHEN HOMEOWNERS INSURANCE MAY COVER HVAC UNITS?
Now that you know which part(s) of your policy will cover potential damage, which specific situations may be covered for AC replacement?
If air conditioning damage is a result of a covered peril. When a disaster occurs, and your HVAC unit is damaged as a result, your home insurance policy might take care of the replacement.
Examples of potential covered disasters:
- Burst pipes
- Fallen tree
- Fire
- Hail
- High winds
- Lightning strike
- Smoke damage
- Storm
- Theft
- Vandalism
WHEN HOMEOWNERS INSURANCE DOESN'T COVER HVAC UNITS?
Now that you know what situations may mean you’re covered for an air conditioning repair or replacement, let’s review the times when you likely won’t be covered:
- Neglect or negligence (such as dropping the unit)
- Old age
- Wear and tear
A home insurance policy is not meant to cover situations where homeowners could have prevented or repaired an issue with regular home maintenance. When it comes to your HVAC unit, it’s important to change the air filter regularly and invest in routine maintenance checks by a professional.
Exclusions you should know about
Depending on where you live, certain types of damage may be excluded from coverage. In certain states, if your air conditioner is damaged in a flood or earthquake, you may not be covered for repair or replacement.
Instead, you might need an endorsement or additional policy to cover special personal items and/or particular types of damage.
As always, it’s critical to read your homeowners insurance policy carefully to determine what’s included and what’s excluded.
WHY HOME WARRANTIES MIGHT BE YOUR ANSWER
While home insurance may not cover a damaged air conditioning unit, a home warranty policy might be the perfect solution.
Home warranties can offer coverage on appliances — like your HVAC unit — when damage isn’t covered by your home insurance policy. However, like homeowners insurance, a home warranty will not cover you if your AC unit is damaged due to lack of maintenance.
That said, general wear and tear (when the unit is properly maintained) may be covered under your home warranty.
Every warranty is different, so spend the time to read carefully through the policy to learn what you get and what you’ll be responsible to pay for. Some warranties charge one simple rate per repair or replacement, while others pay up to a certain amount.
Plus, some home insurance companies even offer discounts for home warranties when you sign up through your carrier.
HOW TO FILE A HOME INSURANCE CLAIM FOR AN AIR CONDITIONING UNIT
If you’re considering filing a claim for a damaged or broken air conditioning unit, follow these steps:
- Start by considering the damage. Ask yourselves these questions:
- Is the reason for AC damage covered under your policy?
- Will replacement or repair be more or less than your deductible?
If the answers make sense for continuing the claim, continue to the next step! - Get prepared. You’ll need information for your insurance company, including: the air conditioning unit’s model and serial number, along with photos of any damage and a police report (if there was a theft).
- Call your insurance company and start the claims process. (Most insurance carriers now offer online claims, too.)
- An insurance adjuster will visit and assess the damage, as well as determine whether you have a claim that can be covered by your policy.
- If your claim is approved, you might be reimbursed for repair or replacement with:
- Replacement value, or
- Actual cash value
If you’re considering filing a home insurance claim for a damaged or broken air conditioning unit, always start by understanding your policy or calling your home insurance carrier to find out what’s covered.
While your HVAC unit repair and replacement may not always be covered by homeowners insurance, consider looking into a home warranty policy to cover any additional reasons for damage. As always, do your due diligence to properly maintain your home (including the air conditioning), so you’re covered if and when the time comes.
If you need help finding the best home insurance coverage for the best price, start by speaking to a SimplyIOA agent at 833.872.4467 or get a home insurance quote online now.
