As temperatures rise and heat waves become more common, your air conditioner is working harder than ever to keep your home comfortable. Then the air conditioner stops working completely.
What should I do next?
Many homeowners’ first instinct is to call their insurance company and file a claim. However, while homeowners insurance can cover certain types of air conditioner damage, it typically does not cover breakdowns caused by age, wear and tear, or mechanical failure.
To better understand when coverage applies and when homeowners are likely to pay for it themselves, USA TODAY spoke to experts at ARS, a national HVAC installation and service company, about what happens when your air conditioner breaks down and what insurance may or may not cover it.
Does homeowners insurance cover a broken air conditioner?
unfortunately, Standard homeowners insurance does not cover air conditioner failure This is due to age, wear, or mechanical failure.
“Homeowners insurance typically doesn’t cover you unless you have a rider (optional insurance add-on),” says Ken Turner, HVAC sales manager at YES!. Heating, air conditioning, plumbing, electricity℠.
When Homeowners Insurance Can Cover Air Conditioner Damage
Home insurance will cover damage to your air conditioning equipment caused by perils such as natural disasters, and will most likely cover air conditioning repair and replacement in the following situations:
- fire
- fallen tree
- Storm-related damage such as hail and high winds
- Other sudden and accidental events
Homeowners insurance typically does not cover air conditioner repairs
Homeowners insurance typically does not cover air conditioner repairs if the unit breaks down due to:
- wear and tear
- Equipment naturally deteriorates over time
- mechanical failure
- Compressor failure
- electrical problems
- Component breakdown
- existing symptoms
What determines whether an AC claim is approved?
Even if your application is approved, you may not be able to get a new AC unit. Home insurance companies often prefer repairs rather than replacements.
“Many homeowners want to replace their systems, but they rarely do so when it can be repaired,” Turner says.
Each plan is different, but you can purchase riders to expand your home insurance coverage. Although it costs an additional monthly fee, insurance riders can expand your home insurance coverage to include sudden internal failure of your HVAC system, such as your AC or furnace. If you have a rider that covers HVAC, your home insurance policy may replace an AC unit that suddenly breaks down.
Homeowners insurance and home warranties
Home insurance is a must for most homeowners and covers sudden and unexpected events. A home warranty is an optional service contract that protects home systems and appliances from failure due to normal wear and tear.
Home insurance does not cover mechanical breakdowns or system failures, but a home warranty may. You can expect your HVAC home warranty to include:
- Targeted HVAC system failure
- Repair costs for applicable failures
- Exchange support in some cases
Home warranties also have limitations, but they are more likely to cover air conditioner malfunctions than home insurance.
Common reasons why AC claims are denied
The most common reason AC insurance claims are denied is lack of coverage. Other reasons your claim may be denied include:
- Pre-existing symptoms: If the problem existed before coverage began, the insurance company may deny coverage.
- Lack of maintenance: Lack of regular maintenance can be an easy reason for a home insurance company to deny coverage. To prevent this denial, keep records of all maintenance performed.
- Cosmetic damage: Home insurance and warranties often don’t cover the cost of repairing cosmetic things like dents and scratches.
- Improper installation: Coverage may be denied if the system is not installed correctly. This is why it is so important to have your air conditioner installed by a reputable HVAC company.
What should I do if my air conditioner breaks down?
If your AC breaks down, contact your local HVAC company to have it inspected. Get an initial diagnosis to determine whether you need a new unit or a repair. You can also check with your home insurance company to see if your policy includes coverage. If you do, start your claim immediately.
Your insurance company may insist on having someone come to your home to assess the damage, but you should always get another opinion.
“We always recommend getting a second opinion from your outdoor heating and air company,” Turner says. An outside company can verify that what the insurance company wants is the right course of action, suggest an alternative course of action, and file a claim on your behalf.
FAQ
Does homeowners insurance cover AC compressor failure?
If damage to your air conditioner is caused by a weather-related accident, vandalism, fallen tree limb or fire, your home insurance policy will cover the cost of repair or replacement (minus your deductible). Home insurance does not cover damage caused by age, lack of maintenance, or mechanical failure.
Will my insurance cover damage to my air conditioner from a storm?
Yes, your home insurance policy will cover air conditioner repairs if your unit is damaged in a storm (high winds, hail, lightning, etc.).
Is a home warranty the same as homeowners insurance?
No, a home warranty is different from homeowners insurance. Home insurance protects your home from external factors such as storms, fire, and vandalism, while a home warranty covers breakdowns due to normal wear and tear.
Will my insurance replace the entire air conditioning unit?
If your air conditioning unit needs a complete replacement after a storm, fire, or tree damage, your home insurance policy will cover the cost. If it fails due to other factors such as normal wear and tear, you’re out of luck.
If my air conditioner breaks, do I need to make an insurance claim?
If you lose your air conditioning unit due to an unexpected event, be sure to contact your home insurance company. But if your old AC unit has stopped working due to age, it may not be worth your time. If you’re unsure, you can always file a claim and see what your home insurance company has to say.
