Is Your HVAC Unit Covered in Your Home Insurance?

If something happens to your cooling or heating system, can you count on HVAC insurance to provide coverage? Your central air conditioner and furnace represent a major household investment. Because unexpected events occur, it’s important to know in advance what you can expect in the way of HVAC insurance compensation.

Homeowner’s Insurance

Most people have it, but homeowner’s coverage for HVAC systems is usually limited and subject to exclusions. A typical homeowner’s insurance policy will repair or replace cooling and heating equipment only if damage results from events like a fire in the home, a falling tree or limb, lighting strikes and non-weather-related flooding such as water damage from ruptured indoor pipes. Because thefts and vandalism to the outdoor half of central A/C units has become much more common, it’s good to know that homeowner’s insurance also covers that.

Homeowner’s insurance tends not to cover HVAC losses due to simple wear and tear, lack of maintenance, negligence or misuse, faulty repair work and damage from preventable events.

Home Warranties

To add insurance to major appliances such as HVAC, you can purchase a home warranty that includes limited compensation for repair or replacement of a home air conditioner or furnace. These plans fill in at least some of the gaps in homeowner’s insurance coverage for HVAC systems. However, home warranty policies frequently include stipulations such as the requirement to use only a specific contractor for repair. as well as possibly limiting your choices for a replacement unit, if one is required. Read the terms of the policy carefully before making a decision to sign up.

Other Alternatives

Non-insurance options that help in upkeep and repair of HVAC systems include purchasing a preventative maintenance plan from a local HVAC contractor. These plans offer free annual maintenance tune-ups that sustain system efficiency and performance as well as maximum service life. If repairs are required, discounts on parts and labor are usually part of the service plan.

For more advice about HVAC insurance coverage and options to fill in the gaps, in Orlando 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).