Are HVAC Units Covered by Homeowners Insurance?

• Vandalism
• Hail
• Falling Trees
• Lightning
• Fire
• Windstorms
• Theft
• Riots
• Explosion
• Weight of snow, ice, or sleet

A homeowners insurance policy won’t cover your HVAC units if they are damaged by general wear and tear, negligence, or lack of maintenance.

For example, if your fifteen-year-old HVAC unit sustains damage, the general wear and tear would be considered the cause, and you won’t be able to file a claim. Similarly, if a clogged air filter causes the damage, it will be regarded as negligence or lack of maintenance, so you cannot file a claim.  Also, any damage caused to your HVAC unit by flood or earthquake will not be covered.

You can opt for any of the following endorsements to cover the repair/replacement of HVAC units damaged by the perils not covered by standard homeowners insurance:

• Home Warranty Programs – Provide HVAC repair or maintenance services at a flat fee or discounted rate.
• Equipment Breakdown Coverage – Covers repairs/damages to HVAC units and other appliances caused by mechanical breakdowns, power surges, malfunctions, etc.

First, review your homeowners insurance policy to understand the covered perils and determine whether the current damage is covered or not. If it is covered, you have to assess the cost of repair or replacement and file a claim only if the cost is more expensive than your deductible.

If you have decided to file a claim, here’s how to go about it:

• Document the damage by taking pictures from different angles.
• Ask for a police report copy if a complaint is lodged for the damage (for vandalism-related damage, you may need to file a complaint).
• File a claim online or in person.
• Keep all receipts if you make repairs while your claim is being processed.
• Submit the receipts to your provider for reimbursement.

Once you have filed a claim, your insurer will evaluate the repairs and reimburse you for either the:

• Replacement Value – This covers the full replacement cost of your HVAC unit according to the current market value.
• Actual Cash Value – Pays the current value of the HVAC unit (deducting depreciation).

Even if you have equipment breakdown and homeowners insurance policies to cover your HVAC unit, make sure it’s working properly to avoid maintenance/negligence-related damages that could otherwise result in expensive repairs.