Does Homeowners Insurance Cover AC Units?
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While dwelling and personal property coverage often have overlapping covered perils, personal property coverage tends to have a narrower scope. You don’t need to buy coverage on top of your homeowners insurance to protect your AC unit. Most policies automatically cover AC units from perils such as fires, lightning, fallen trees, theft, vandalism and more. Yes, your homeowner policy will cover many situations, but you should know about all exclusions. For example, most insurance companies won’t cover damage related tocatastrophes like floods and earthquakes.
If you have an actual cash value policy, you’ll be paid the market value of the repairs or replacement, minus depreciation from age or wear and tear. For example, if a storm damages your AC unit, your homeowners’ insurance policy may help pay for the repairs. Other climatic conditions like excessive heat or humidity can also damage your unit. If you live in an area with extreme weather conditions, you must check your policy to see what is covered. If your AC unit is stolen, you must file a police report and provide a copy of the report to your insurance company.
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It helps with expenses to repair and replace damaged property after a mechanical breakdown, including the air conditioner itself. But, if your AC clunks out because it’s old, or if you’ve never taken care of it in the first place, your insurance won’t pay for a new one. Your provider expects you to perform routine maintenance on and around your property to keep it in working order as best as you can. 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. 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.
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. Homeowners insurance covers HVAC systems when the damage is due to a covered peril or disaster. In a place where there can be extreme temperatures depending on the prevailing season, keeping your HVAC system in tip-top condition is certainly a must.
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Ensuring you are covered from HVAC breakdown doesn’t just rest on monitoring your HVAC alone. Wondering whether your AC unit is covered under your current insurance plan? Older units will have a more challenging time getting covered because they are more prone to breaking, and their replacement value is lower than newer units. Theft involves someone taking your AC unit without your permission.
If you’re not happy with the amount of coverage you currently have, it’s essential to compare quotes until you find a provider you’re satisfied with. By shopping around, you may even be able to lower your insurance rates. Your home insurance may also cover your AC in the event that your AC gets damaged by fire, or there's a pipe burst that would force your unit to be repaired or replaced.
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Let’s say your HVAC system quits working because of user error or normal wear and tear due to old age. At the end of the day, your insurance policy is your responsibility. Every policy can be slightly different depending on the individual. A homeowner’s insurance policy in Florida will not be the same as one in Minnesota. Look for special exclusions and read the fine print regarding your dwelling insurance.
While both coverages provide protection from various perils, they typically don’t cover normal wear and tear. An insurance policy will cover damage to an air conditioner if it occurred as a result of a covered peril. It will not pay for damage to an AC unit or to other HVAC equipment if the damage occurs as a result of normal wear and tear. Your homeowners insurance policy defines covered perils in its documents.
. When your AC is damaged by fire or water
Just like earthquakes, flooding, and neglect aren’t covered, neither is rodent or pest damage. If a tree falls on your external AC unit or falls into your roof and damages the ducts, it will be covered under homeowners’ insurance. Tree falls are one of the most common ways for homes to get damaged, and they are covered by homeowners’ insurance. 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.
Equipment breakdown coverage is relatively inexpensive as a policy add-on coverage. Expect to pay between $25 to $50 per year to have this coverage on your homeowners insurance policy. In some instances, an insurance company will not cover the cost of HVAC repairs if the unit breaks down due to general wear and tear. This is because it’s considered a maintenance issue and something that you, as the homeowner, are responsible for.
Most home insurance companies offer an optional coverage you can include in your policy called equipment breakdown coverage. This coverage extends to home appliances, such as HVAC systems, refrigerators, and computers, protecting them against equipment or mechanical breakdown or installation failures. Additionally, your insurance provider won’t cover an AC replacement if your air conditioner stopped working prematurely because you neglected to care for it. If you’ve never performed routine checkups on your air conditioner, you can’t expect it to last as long as it should. And, your insurance won’t cover it since you failed to maintain it.
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. Do not rush to call up your insurer the moment you encounter a damaged AC.
The editorial content on Clovered’s website is meant to be informational material and should not be considered legal advice. And, in some cases, it can cover some of the costs to upgrade to a more energy-efficient or environmentally friendly appliance. If your AC unit is vandalized, it’s important to notify the police to document the crime.
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. Technicians suggest having your AC unit inspected and serviced every six months to a year. They only want to call people out to their houses when something goes wrong. An insurance company is not responsible for your rickety AC that is not running properly because it was never maintained. We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
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Have the contractor come to your home to service and repair the unit, or determine whether the unit requires replacement. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers.
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