Does home insurance cover AC leaks?
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If normal wear and tear or age are the culprits of damage, your policy will almost assuredly not cover the damage. But if the unit begins leaking due to improper installation, it may be up to the installer’s insurance to take care of the damages. If your homeowner’s insurance covers the damage, you will be reimbursed for the repair or replacement cost. If your policy happens to also cover actual cash value, you will be reimbursed the unit’s market value at the time of loss.
Your homeowners insurance policy defines covered perils in its documents. All homeowners insurance policies distinguish maintenance issues and casualty issues. Maintenance issues are the regular wear and tear and replacing appliances or structures. These are not perils; instead, they are expected occurrences over time.
How to Appeal a Homeowners Insurance Claim Denial
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.
To answer the question, does homeowners insurance cover AC, it is important to review the fine print on an insurance policy. Homeowners can read their policies to find out exactly what perils are covered. If the AC damage results from any of the problems the policy covers, then the insurer will repair or replace the AC.
What Does a Home Insurance Adjuster Look For?
Homeowners insurance policies typically do not cover damage resulting from wear and tear or resulting from neglect. For example, if an air conditioner wears out because it has reached the end of its normal shelf life, repairs or replacement would not be covered. Your homeowner’s insurance policy will likely cover falling objects as well. Your insurer might pay for or replace an HVAC system if something like a tree falls on it and damages it or destroys it. If you have a window unit, it might be covered if a falling tree damaged the AC unit and your home’s exterior.
Here are some add-ons that may provide extra coverage to maximize the chances the insurer will pay for a broken AC unit. It may also be a good idea to look into home warranty plans, which offer coverage that insurance won't. A standard policy should provide coverage for many of the common causes that could affect an air conditioner. Our goal is to give you the best advice to help you make smart personal finance decisions.
Types of Insurance
If the AC must be replaced, then the amount will also depend whether the policy has market value coverage or replacement value coverage. Although theft is unlikely, if your AC unit is damaged as a result of vandalism, the damage or loss may be covered. Theft and vandalism typically requires filing a police report before you can file a claim. She has three years of experience writing for insurance websites such as Bankrate, MoneyGeek and The Simple Dollar.
For instance, if you’ve left your air conditioner’s drain lines clogged for months, your insurer won’t cover water damage caused when the AC starts seeping water. In instances of damage due to a disaster or peril, when you file a claim to your insurance company they will cover the cost of repairing or replacing the damaged or stolen appliances. Home insurance covers damage to appliances when the damage is a result of a peril or disaster that’s included in your policy. It’s vital to note that insurance providers are not the same, they differ.
Does Homeowner Insurance Cover AC Units?
An air conditioner that fails after 10 years of use or is dented by an errant baseball during a backyard game of catch won't be covered by your home insurance. Your dwelling coverage will cover a built-in unit since it’s considered part of the home’s structure. Personal property coverage would be used to repair or replace window-based units because they’re considered personal possession. If you’re not sure if you have replacement cost or actual cash value coverage, you may want to speak with your agent before you file a claim. You can get a quote for damages from an HVAC contractor prior to filing the claim to decide if it’s worth filing. Mechanical breakdown coverage can financially safeguard your AC if it stops working due to improper installation, or if it fails after a power surge.
The cost to replace an outside AC unit can vary widely, depending on where you live, the brand and the size. Expect to pay between $4,350 and $12,000 to replace an outside AC unit, which includes permit fees and labor. If there is a fire in your home or a pipe bursts suddenly and your AC needs to be repaired or replaced as a result, you may be covered by your homeowners insurance policy.
Also, if lightning ever strikes your AC unit and damages its electrical components, your home insurance policy may pay to replace it. Depending on its model, your AC unit will be covered either by your policy’s dwelling coverage or personal property coverage. MoneyGeek broke down everything you need to know about insuring AC units. Insurance covers problems with an air conditioner only if they are caused by a covered peril.
Regular maintenance and inspection for potential animal nests is key to ensure your HVAC longevity, avoiding a potential issue that causes damage not covered by your home insurance policy. Central air conditioning units generally have a lifespan of around 15 to 20 years. Any AC unit failing around this age on its own would likely be considered a home maintenance issue by your insurer. If a maintenance issue were to occur and water from your AC unit were to leak into your home and cause flooding, you would not be covered by your home insurance policy.
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