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On the other hand, if your AC unit simply breaks down after a few years, you won’t be able to fund a repair or replacement through your insurance policy. While all policies are different, this is true of most insurance companies. For example, if a fire damages your heating, ventilation, and air conditioning system , a standard homeowners policy would cover it. However, if it stops working due to normal wear and tear, you’re likely out of luck.
Although your homeowners insurance covers your AC unit, you should protect it as much as possible from getting damaged. Whether you have a centralized or standalone model, your AC will have components located inside and outside your home. In another scenario, say you’re carrying a new AC unit through your garage and drop it or forget to change your air filter and cause damage.
Comparing Home Warranty vs. Home Insurance
To find out whether your AC has coverage, you’ll want to have a professional take a look at it. They can give you an idea of what caused the damage and you can review your policy to determine if you’d have coverage. Hurricane winds blew debris into your central AC unit on the side of your house and destroyed it, Or, you should be covered if lightning struck your unit and caused it to stop working. Don’t lose hope if your current policy doesn’t offer HVAC coverage. You do have options for additional coverage on home appliances and equipment.
For your home insurance to cover AC leaks, a covered peril must cause the damage. If your AC is leaking due to accidental or sudden cracking, bulging, or tearing, your home insurance will cover the damage. If the damage to your air conditioner was caused by a covered loss like the perils we mentioned earlier, your insurer can pay for a new one. The cost of a new air conditioner will be included in your settlement.
When Does Homeowners Insurance Cover AC Units?
To help when something goes wrong, not when something stops working when it reaches the end of its expected life. Ensure you have a copy of the police report in the event of vandalism or theft of your unit. If your AC unit is vandalized, it’s important to notify the police to document the crime. Keep reading to learn more about the basics of homeowner insurance and how HVAC factors in. Founded in 1976, Bankrate has a long track record of helping people make smart financial choices.
If the repair/replacement costs seem to be less than the reimbursement amount you will receive, don’t bother your insurer. If you start filing insurance claims for every little thing, you will only end up with higher premiums end of the month. Thus, you will only file the claim if the repair/replacement costs seem to be higher compared to the policy’s deductible. As mentioned previously, your home insurance policy won’t extend coverage for AC issues caused by poor maintenance on part of the owner.
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Similarly, if someone steals or destroys your HVAC system, you’re protected. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site.
It can help you make an informed decision on coverage types and limits, and what may be excluded from the policy. If your AC unit is damaged by hail or high winds or struck by lightning, it may be covered up to your policy limits. And if a tree falls on your AC unit, your policy may cover damages. However, flood and earthquake damage are typically excluded from most homeowners policies, so if your AC experiences damages from these causes of loss, you may not be reimbursed.
For example, an insurer might pay to replace an AC unit damaged by fire or a falling tree. Usually, when an AC unit leaks, it is not because of a covered peril. Instead, it occurs because of wear and tear or an issue with the internal components of the unit. In this case, a home insurer would not pay for repairs or replacement.
This is considered neglect and isn’t covered under homeowners insurance policies. For this reason, it’s vital to stay on top of HVAC maintenance as a homeowner. Home warranties, on the other hand, provide coverage for certain components of a home such as appliances or HVAC units that result from wear and tear or normal use. Now, if that AC-generated water seeps into your home and damages wall and floor, that will be dubbed as maintenance glitch on your part.
For example, most home insurance policies exclude rodents or pests since it’s preventable with proper care. You can buy homeowners insurance from most major insurance providers, such as State Farm, Progressive and GEICO. Smaller insurance companies, like Hippo and Lemonade also offer homeowners insurance. However, extended warranties typically only last for 10 to 15 years, while supplemental insurance may last for the life of the active policy. It may cover everything from built-in heating, air conditioning , and ventilation systems to ductless and window AC units.
Theft of an AC unit is quite rare, however if your unit got damaged due to vandalism, it may be covered by your home insurance. If your unit is stolen or vandalized, your may need to file a police report first before you file an insurance claim. Let’s say your HVAC system quits working because of user error or normal wear and tear due to old age. If a falling tree or branch destroys your AC unit, it’s covered because most policies cover damage incurred by trees.
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