It can be frustrating to have your HVAC system break down, especially during extreme weather. In most cases, the individuals can’t get back their unit in working condition themselves. And they are left with two options – replacement or repair of the system.
In such times, the homeowner insurance policy comes in handy. However, does homeowners insurance cover HVAC replacement?
Generally, homeowners’ insurance policies cover damage and destruction to a property’s exterior or interior, theft or loss of possessions, etc. Here is all you need to know about homeowner’s insurance for HVAC replacement. In case you have been looking for the best quotes for your insurance needs, visit Surex now.
Modern air conditioners come with a sturdy build and can last up to 15-20 years. However, that doesn’t mean they won’t break down during this period. Like other home items, HVACs also wear and tear due to regular use. Fortunately, homeowners insurance is offered to cover unexpected damages to the AC system. Alternatively, individuals can also take advantage of the home warranty.
However, homeowners’ insurance policies and home warranty options do not come to the rescue if the AC system is damaged or isn’t properly maintained. For instance, if the experts find out that the air filter isn’t changed, even the home warranty won’t cover the cost of AC breakdown. The warranties sometimes won’t provide cover, even for standalone units. Individuals will need to sign up for appliance coverage separately.
Generally, repairs in the HVAC system that result from circumstances besides daily use aren’t included in the warranties. However, the homeowners’ policies may not necessarily cover the repairs. The repairs caused due wear and tear aren’t included in the homeowners’ policies. In most cases, they are specifically covered in the home warranties.
Homeowners’ insurance can come in handy if your appliance’s repair costs, including the air conditioning system, are covered under the home warranty. Home repair insurance or home warranties cover the repair cost of the appliances and systems of the insurance holder for a specific fee. Just make sure to read the terms and conditions of the policy before signing up.
If your HVAC system sustains any damage, filing an insurance claim will cost you more. Hence, it is advised to get a proper estimate of the repair cost. Determine the weight and value of the unit against the homeowners’ policy. If the repair or AV unit replacement cost is comparatively less or there is a minor difference than the deductible, it’s better to bear the cost on your own. The premiums increase if you file a homeowner’s insurance claim.
If the unit’s value is depreciated, the individual will receive the depreciated value of the unit. After approval of the claim, the insurance company provides a portion (half the amount) of the replacement or repair cost. The remaining amount is paid after completion of the work.
You may get a replacement or repair cover for your AC under the following circumstances.
Suppose the air conditioning unit is damaged due to natural weather conditions such as high winds, hail, lightning, earthquakes, or anything similar. In that case, it will be covered in the insurance policy. Also, if the damage occurs due to the tree falling on the AC unit, the damages are most included in the insurance cover.
If there is a fire breakout in the home, or if the water pipe bursts in an unfortunate incident and your AC needs replacement or repair, the damages are covered in the homeowners’ insurance policy. However, if the water damage is caused due to flooding, the damages aren’t included in the homeowners’ insurance. However, it may differ depending on the policy of the insurer.
Other conditions where the AC unit damage is likely to be covered in the insurance policy are vandalism, theft, mechanical breakdown due to over-time use and damage caused to the HVAC system by pests or pets.
Now that you know the answer to, “does homeowners insurance cover HVAC?”, you can shop around for the best insurance policy. A homeowner’s insurance policy is invaluable support that provides financial compensation for electronic appliances like AC which are likely to depreciate and condition over time. Generally, the insurance claims are denied due to neglect of the owner, improper installation, or improper servicing.
In case the owners fail to maintain their HVAC system properly, and the product is damaged, the insurance company may not provide any cover for such damages. A homeowner’s insurance policy also covers damage from unexpected events like lightning. The insurance policy also covers the expenses of a single component or the entire unit.