Does Homeowners Insurance Cover HVAC Repairs or Replacement?

HVAC systems were once considered a luxury. But now, many people are accustomed to having HVAC systems that keep the interior of their homes at a comfortable temperature throughout each season. You may even rely on your home’s HVAC system to filter allergens out of the air so you can breathe easier. Understanding when your home’s HVAC system may be covered under your homeowners insurance policy helps you plan for its repairs or possible replacement.

Know Which Type of Insurance May Provide Coverage

As a homeowner, you may have various components of your insurance policy that can all work in different ways. For instance, a central air conditioning system installed in your home is likely to be covered under the dwelling portion of your insurance if it meets the right specifications. Meanwhile, a standalone heater or window AC unit may fall under the personal belongings section of your insurance policy. When you reach out to your insurance provider, it helps to mention which type of system you’re seeking to fix or replace.

Understand the Limits of Your Policy

Many homeowners insurance policies exclude certain types of catastrophic situations. For instance, your policy may not cover damage to parts of your home that occur due to an earthquake or flooding. If you have concerns about the HVAC system sustaining damage during these types of scenarios, it may be best to purchase special types of coverage that work alongside your general homeowners insurance policy.

Consider Filing a Claim for Damage from a Covered Peril

Fortunately, there are many common situations when the insurance policy will cover damage to an HVAC system. Usually, this happens when a covered incident impacts your property. For instance, an outdoor portion of your system may get damaged by a major hailstorm or high winds. In this case, your homeowners insurance policy may kick in to cover the damage. The same is also true if a covered incident occurs within your home, such as an unknown water leak damaging the interior unit.

Stay on Top of Maintenance

Naturally, your homeowners insurance won’t cover problems that develop due to the natural aging process of appliances. You may also have your claim denied if it’s clear the unit isn’t properly maintained and neglect led to the issue. For example, an HVAC system that dies due to clogged components may not be covered by your insurance policy. Ideally, you’ll need to stay on top of routine maintenance, such as seasonal inspections. You may also want to keep a record of maintenance visits you can use if an issue arises that might be covered.

Inquire about How Coverage Works for Your Claim

Most policies pay out reimbursements for damage based on either the replacement value or the actual cash value of the property. For instance, the replacement value is the amount it costs at the time to replace your system with a new unit. Alternatively, the actual cash value is the market value of the HVAC unit at the time you reported the loss. Either way, having insurance coverage makes it easier to move on with restoring your home’s comfort following an unforeseen event.

If you own a home, take the time to understand exactly what your homeowners insurance policy does—and doesn’t—cover. The friendly professionals at Altra Insurance Services will be happy to help you examine your current policy and determine if you have the coverage you need. We can also help you with renters insurance, commercial insurance, and motorcycle and auto insurance Chula Vista. Call one of our friendly agents today.