Is Your HVAC Covered in Your Home Insurance?

If an HVAC system needs repair or replacement, can the homeowner rely on home insurance to compensate for the expense? The heating and cooling components installed in your home are one of the biggest investments you’ve made. Sooner or later, normal wear and tear requires repairs and/or an older air conditioner or furnace exceeds its normal service life and a new system is needed. For these common scenarios, however, home insurance typically doesn’t offer compensation.

Homeowner’s insurance policies are limited to cover only “damage”. That’s a specific term that does not include repairs for routine wear and tear nor replacement of an old unit that’s simply worn out. In this usage, damage refers only to particular scenarios such as fire, lightning, or hail damage that might affect or destroy an HVAC unit. Any other losses that may arise due to your air conditioner or furnace are generally not compensated by a typical homeowner’s insurance policy.

Are there other ways to help prevent or reduce losses due to HVAC problems? Here are two potential options:

Service Agreements

Many reputable HVAC contractors offer a service agreement program that provides routine preventive maintenance as a regularly scheduled event. This attention by a qualified professional technician reduces wear and tear that causes costly repairs and shortens the service life of HVAC components, leading to early replacement. Other benefits of service agreements include:

• Fewer malfunctions and breakdowns
• Priority service if an emergency occurs
• Discounts on parts, labor and accessories
• Lower operating costs and improved indoor comfort

Home Warranties

Usually marketed by realtors to home buyers, these plans provide discounts on service and replacement of major appliances including HVAC. Once a policy is purchased at an annual cost, the homeowner contacts the warranty company when repair or replacement is required. The warranty company makes the decision to dispatch certain service providers with whom they have a business arrangement to resolve the issue. Service/replacements are not totally free, the home owner usually still pays a modest service fee whenever work is necessary.

For more information about options to home insurance for HVAC issues, contact Rinaldi’s Energy Solutions.

Our goal is to help educate our customers in Orlando, Florida and surrounding areas about energy and home comfort issues (specific to HVAC systems).