Does Homeowners Insurance Cover HVAC Systems?

If your HVAC system was recently damaged in a storm or by a falling tree, you may wonder how you’re going to pay for the repairs or replacement. Depending on your insurance policy and the nature of the damage, the costs may be covered. HVAC.com discusses what homeowners insurance typically covers and what is often excluded regarding heating and cooling systems.

Understanding Home Insurance and HVAC Systems

Homeowners insurance generally falls into two main categories: dwelling coverage and personal property coverage. Dwelling insurance protects the physical structure of your home, while personal property coverage safeguards your belongings inside it including furniture, electronics, and clothing.

HVAC systems are usually considered part of your home’s structure and are generally covered as part of a standard insurance policy; however, coverage can vary based on the specifics of your policy and the circumstances surrounding any damage.

Your HVAC system is subject to damage from weather-related events. Extreme temperatures, storms, and other natural occurrences can lead to costly repairs or replacements, which is where your homeowner insurance may come into play.

Meanwhile, window air conditioners and portable heaters or cooling systems are often considered personal belongings and may be covered under your personal property coverage.

When Does Home Insurance Cover HVAC Systems?

Your homeowners insurance may cover HVAC repair or replacement costs in the following situations:

1. Hail Damage: Hailstorms can wreak havoc on outdoor HVAC equipment, including your air conditioner or heat pump. If your HVAC system sustains damage from hail, it’s typically covered under your policy. However, ensure that your insurance specifically covers external appliances.
2. Lightning. Most standard home insurance policies cover the cost of repair or replacement when an AC or heat pump is significantly damaged due to a lightning strike.
3. Fallen Trees: If a tree falls on your HVAC unit during a storm, your homeowners insurance should cover the damage. This includes any repairs or replacement costs for your HVAC System, as well as any structural damage to your home caused by the tree.
4. Fire: If your HVAC system causes a fire – due to a malfunction or an electrical issue – your home insurance should cover the damage. However, if the fire is due to neglect or lack of maintenance, your claim may be denied.
5. Vandalism: If your HVAC unit is vandalized or damaged intentionally, homeowners insurance will often cover the repair costs.
6. Theft: If your HVAC system or any of its components are stolen, your insurance coverage might help. This is more common with smaller, easily removable parts, like thermostats or window units.

What’s Not Covered?

While there are several instances where insurance may help with HVAC-related issues, there are also some important exclusions. Routine wear and tear or lack of maintenance are typically not covered, so keep up with regular servicing of your HVAC system.

Additionally, damage from flooding or sewer backups usually requires separate flood insurance. Like flooding, damage from earthquakes may require supplemental earthquake insurance.

Filing a Claim with Your Insurance Company

If your HVAC system is significantly damaged, potentially leading to costly repairs or replacement, contact your insurance company first to see if your system is covered and what your deductible is.

The average homeowners insurance deductible is about $1,000. If the repair costs less than this amount, it’s probably worth paying out of pocket. However, if the entire system needs to be replaced, then it’s worth considering filing a claim.