Does homeowners insurance cover HVAC?
YES! But it has some conditions.
A standard homeowners insurance policy provides coverage for your home’s HVAC system but the coverage includes only damages that are caused by covered risks.
It is important that you must consult your insurance provider to ensure that you have adequate coverage for your home’s HVAC system so that in the event of damage to the system you do not have to pay for the repair and replacement expenses from your pocket.
When Will HVAC System be Covered by Homeowners Insurance Policy?
A homeowners insurance policy typically covers repair and replacement costs of your home’s HVAC system if the damage is due to a peril that is mentioned in your policy. The type of the system determines the coverage under which it will be included in the policy. For example, HVAC systems installed within your home structure will be included under the dwelling insurance whereas the standalone window AC unit is covered by your personal property insurance.
The damage to your home’s HVAC system will be covered if it is due to the following covered perils:
- Theft and vandalism
If the damage occurs during a theft or is an act of vandalism, it will be covered by your insurance. You must, however, report the incident to the police as you need to submit a copy of the police report at the time of filing a claim.
If an accidental fire causes damage to the HVAC system, it will be covered. Also, if a fire caused by lightning damages the electrical components of the HVAC system, it will be covered.
If the water damage is due to accidental flooding, it will be covered but the homeowners insurance policy does not include water damage caused due to floods. You may need an added endorsement to cover damages by flooding.
- Natural elements
If the HVAC system is damaged by a severe storm or lightning, it will be covered by your homeowners insurance coverage unless specifically excluded from the policy.
When Will HVAC System Not be Covered by Homeowners Insurance Policy?
Your homeowners insurance policy will not cover repair and replacement costs of your home’s HVAC system if the damage is due to the following factors:
- Lack of maintenance
Damage to the HVAC system due to neglect on your part in doing regular maintenance will not be covered as they are preventable.
- Regular wear and tear
In cases of damage due to wear and tear that is linked with constant use, the repair costs are more likely to be covered by your home warranty.
If the HVAC system in your home exceeds its lifespan which is about fifteen years, it will not be covered by your policy.
- Superficial damage
Cosmetic damage to the external part of the HVAC system caused typically by hailstorms may not be covered.
Certain perils such as earthquakes, floods, and wildfires are usually not covered in a standard homeowners policy and need to be bought as extra coverages.
How Does Your Homeowners Insurance Cover HVAC Repairs?
How your insurance provider will cover the HVAC repair costs depends on your homeowners policy. They may use any one of the following methods:
- Replacement cost value
The HVAC system repair rates will be according to the current market rates.
- Actual cash value
It is equal to the replacement cost value repair rates minus any depreciation.
Are HVAC Replacements Covered by Homeowners Insurance Policy?
HVAC replacements are covered by homeowners policy if the damage is caused by a covered peril. The HVAC system is typically included under two coverages in the homeowners policy.
- Dwelling insurance
It covers built-in HVAC systems that are a part of the existing structure of your home.
- Personal property insurance
Portable HVAC systems such as window AC unit is covered by personal property insurance.
Home Warranties and Equipment Breakdown Coverage
For added protection, you can opt for a home warranty program or extra coverage like equipment breakdown coverage. Both pay for repair costs of your home’s HVAC system at a price.
How To File an HVAC Insurance Claim?
Here are some steps you should follow to successfully file an HVAC insurance claim.
- Report the damage to the HVAC system immediately to your insurance provider.
- File a police report if the damage is due to theft or vandalism. You may need a copy of the police complaint that you need to submit to your insurer.
- Mention your HVAC system’s model, brand, and serial number.
- Attach pictures or relevant documents as proof.
- Get repair estimates from multiple sources before the adjustor’s visit.
- Ensure that the adjustor takes note of all damages.
- Once your claim is accepted, you will receive compensation after the deductible amount has been deducted.