Home insurance can help you cover the cost to repair or replace your home’s HVAC system if it’s damaged by a covered peril, like a fire or windstorm. Damage to your HVAC is typically covered by your policy’s dwelling or personal property coverage, but it depends on the type of HVAC.
HVAC systems and dwelling coverage
Dwelling coverage kicks in for a damaged HVAC system if it’s considered part of the house's structure. Insurers may define that qualification differently, but it generally means the HVAC is built into your home, such as with a central air system that cools the entire house.
To be covered, the HVAC damage must have been caused by a covered peril, which usually includes fire, falling objects, and weather events like hail or lightning.
Covered perils can vary by policy and location. For instance, your policy may not cover wind damage if you live in a coastal area prone to wind-related natural disasters. Your policy also won’t cover damage caused by neglect, poor maintenance, or normal wear and tear.
HVAC and personal property coverage
Some types of HVAC systems, such as portable air conditioners and window units, are more likely covered by your personal property insurance. Also called contents insurance, this coverage protects personal possessions.
Personal property insurance is often written on a named-perils basis. This means you can only file a claim if the damage is caused by a peril specifically outlined in your policy. If your HVAC system is covered under your contents coverage, you’re responsible for covering the cost of repairing or replacing an HVAC system damaged by a peril not listed in your policy.
Weather-related damage to HVAC systems
Weather damage, such as that caused by wind, lightning, hail, or ice, is usually covered under a standard home insurance policy, though there may be some exceptions. For instance, wind may not be covered if you live in an area, such as some Texas coastal communities, prone to significant or catastrophic weather events.
Damage caused by flooding, such as overflowing riverbanks and storm surges, is typically not covered by a standard homeowners insurance policy. If you want coverage under those circumstances, consider purchasing a flood insurance policy.
HVAC coverage in accidents
Home insurance covers many kinds of sudden and unforeseen events, so damage to your HVAC unit from accidents is often covered. For example, your home insurance typically helps with repairs if your HVAC is damaged by:
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A falling object, such as a tree
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A vehicle crash
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An explosion
If a vehicle crash damages your HVAC, the at-fault driver’s property damage liability insurance may cover the damage. Determine if that’s the case before filing a claim with your insurer to avoid unnecessary home insurance premium increases.
Fire damage and HVAC units
Fire is a covered peril in standard HO-3 home insurance policies, so sudden and accidental fire damage to an HVAC system, including that caused by a furnace-related fire, is covered.
However, fire damage caused by neglect, or poor HVAC system maintenance, is not covered. Moreover, fire damage to your HVAC is excluded if the fire was intentionally set by the insured party or a member of their household.
Loss from theft or vandalism
Theft, malicious mischief, and vandalism are all covered perils in standard home insurance policies. Chances are your insurer will help pay to repair or replace your HVAC if you fall victim to any of these three.
Exclusions and limitations: Scenarios where HVAC is not covered
There are several circumstances under which a standard home insurance policy will not cover the cost to repair or replace a damaged HVAC system. These include:
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Wear and tear. Common issues with use, such as worn or broken fans, motors, relays, and other components of your HVAC system, are not covered by your home insurance policy.
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Poor maintenance and neglect. As a homeowner, it’s your job to keep all the systems in your home in good working order. If your HVAC is damaged due to lack of maintenance or neglect, your policy will not cover the damage.
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Flooding, earthquakes, and sinkholes. Most home insurance policies exclude flooding, sinkholes, or earthquake damage. If you feel your property is at risk for these perils, consider purchasing a policy(s) specifically designed for those risks.
Tips for ensuring your HVAC system is protected
Though you can’t prevent the unexpected, there are steps you can take to protect your HVAC investment.
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Perform regular maintenance. It’s easy to forget about HVAC appliances until they stop working. However, scheduling regular maintenance can save you money on heating and cooling bills, and reduce the risk of damage caused by wear and tear or part malfunctions.
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Check your policy. While good upkeep reduces the risk of problems, it won’t prevent every issue. Review your policy or speak to an agent to fully understand how your policy may (or may not) cover HVAC damage.
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Review HVAC warranties. HVACs commonly come with manufacturer warranties, and you may have the option to purchase an extended warranty. Review any existing warranty to determine your coverage.
Filing a claim for HVAC damage
The filing process for an HVAC damage claim is similar to that of any other type of homeowners claim. Follow these steps to ensure the claims process goes as smoothly as possible:
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Document the damage. If it’s safe to do so, document the damage by taking pictures and/or video of the damaged HVAC. Also note the time and date when the issue occurred.
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Review your coverage. Find out what types of perils your policy covers to determine if you’re eligible for a claim. If you’re unsure, contact your agent. They should be able to tell you if the damage is covered before you move forward with the claims process.
If you think your HVAC damage is covered, check your deductible, or the amount you pay out of pocket after a claim. If your deductible is higher or close to the repair costs, you may not want to file a claim.
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Mitigate your damage. If there are steps you can safely take to prevent further damage, take them. Always make sure to document the damage first. If damage mitigation requires paying for a service, such as tree removal, save any receipts.
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File your claim. The claims process varies by insurer, but you can typically file your claim by calling your insurer or through the company’s website or app.
Once your claim is filed, your insurer will likely send an adjustor to review the damage and determine the cost of repairs. Be sure to pay close attention to their directions and keep a record of your communications. If you have questions about your claim, you can follow up with your claims adjustor or agent for further information, including the claim payment timeline.