Does Homeowners Insurance Cover HVAC Breakdowns? Here's What You Need to Know

This article is sponsored by American Residential Services (ARS)

Whether homeowners insurance covers HVAC damage depends on the cause of the problem. Most policies cover HVAC damage caused by specific perils, like fire, lightning, or hail, but don't cover mechanical breakdowns from age or normal wear and tear.

Working with an HVAC company has given me firsthand insight into how often homeowners are surprised to learn that a standard insurance policy doesn't cover every HVAC repair or replacement.

Understanding the difference can help you avoid surprises when filing an insurance claim, make better decisions about maintaining your HVAC system, and even save on homeowners insurance by choosing the right coverage for your needs and avoiding unnecessary claims.

When homeowners insurance covers HVAC damage

When HVAC breakdowns result from some specific reasons, they're usually covered under a standard policy. These perils typically include damage from a house fire, a lightning strike, a hailstorm, or high winds. In some of these instances, your insurer may pay to repair or replace your equipment with you being responsible for the deductible.

If lightning damages your outdoor condenser or a storm causes a tree to fall onto your HVAC equipment, the repairs could be covered under your policy. Or if a covered fire damages your furnace or central air conditioning system, your insurance may help pay for repairs or replacement.

Coverage varies by policy, so make sure you know what yours includes by looking for specific terms and exclusions. Once you file a claim, your insurance company may send someone out to determine whether the damage was sudden and accidental or due to deterioration or poor maintenance.

William A. Morgan/Adobe

When homeowners insurance doesn't cover HVAC damage

Many homeowners don't realize it until they file a claim, but there are times when homeowners insurance doesn't cover HVAC failure. Mechanical breakdown and normal wear and tear are commonly excluded under homeowners insurance policies. For example, if a compressor burns out, a blower motor fails, or another component reaches the end of its lifespan, homeowners insurance likely won't cover it.

Age-related failure also typically isn't covered. As systems get older, parts naturally wear down and need to be replaced. Claims may also be denied if the breakdown is from gradual damage, including rust, corrosion, and deterioration.

Neglect or lack of maintenance is another reason damage may not be covered, like clogged filters or dirty coils.

Essentially, if it's a sudden, unexpected situation that caused it, your claim might be approved. If you could have prevented it or it's caused by normal wear and tear, it likely isn't covered.

Which part of your policy applies?

If you have dwelling coverage, it typically applies to built-in HVAC systems, such as central air conditioners and furnaces. Window units or portable air conditioners may be covered under personal property coverage, depending on your policy and how the damage happened.

In some cases, even when the damage is covered, consider your deductible before filing an HVAC claim. The repair may cost less than your deductible, so it may not be worth it to file a claim. If you're buying a home, reviewing how the property's HVAC system is covered before closing can help you avoid unexpected expenses later.

What actually covers mechanical breakdown

While homeowners insurance doesn't always cover HVAC mechanical breakdowns, there are other options that may help. Some home warranty plans cover certain mechanical breakdowns from normal use, although coverage varies and often includes exclusions, service fees, and claim limits. Before purchasing a plan, review what's covered and your potential out-of-pocket costs.

You should also check manufacturer warranties, which cover defects within the warranty period. Depending on the manufacturer and failed component, warranty periods commonly range from one to 10 years (and some are even longer), although some parts may have shorter or longer coverage.

Routine maintenance from a licensed HVAC company like ARS/Rescue Rooter (a nationwide home services network) can help identify small issues early, reduce the risk of unexpected breakdowns, and extend the life of your system. It may also help support warranty coverage if maintenance records are required.

According to ARS, if an HVAC repair estimate exceeds roughly half the cost of a new system and the unit is more than 10 years old, replacement may make more financial sense. HVAC expert Gregory Milich explains, "It comes to a point where the price outweighs the situation. So in other words, instead of spending good money after bad, why don't we invest that into a new system?"

Chad Robertson/Adobe

How to document and file an HVAC-related insurance claim

If you think your HVAC damage occurred because of a covered event, document everything right away. Photograph the damage before touching anything, and keep all damaged parts until your insurance provider says otherwise.

Then call an HVAC technician to get a professional assessment that documents the cause of the failure. This documentation can help support your claim.

Before approving repairs, contact your homeowners insurance provider to see what they need next or to check on your claim status. Make sure to know your deductible before filing a claim too.

How to reduce your risk of uncovered costs

The best way to reduce your risk of uncovered costs is by scheduling routine HVAC maintenance. It not only reduces the chance of sudden failure but also documents your upkeep, which may be helpful if questions arise about whether neglect contributed to a failure.

Joey Dooley, general manager at ARS with 23 years of HVAC experience, notes that "biannual maintenance is the baseline" and says many manufacturers recommend or require regular maintenance to help protect warranty coverage.

If you're shopping for a homeowners insurance policy, compare coverage details and exclusions, not just premiums, so you understand how HVAC-related claims are handled before you need to file one.

FAQs

Bottom line

Homeowners insurance isn't a substitute for an HVAC maintenance plan or service agreement. Insurance protects you against the unexpected, like fire or lightning, not the inevitable mechanical failure caused by age or wear and tear.

Staying proactive by calling a licensed HVAC company like ARS for regular inspections, maintenance, and minor repairs helps keep both your system and your coverage working as intended.

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