Written by Industrial Stores Staff 12/13/23
Your HVAC system does an excellent job of regulating the indoor temperature of your home for a conducive living environment.
That’s why an unexpected breakdown of your air conditioning (AC) unit on a hot summer day can be devastating.
But before calling a licensed technician for a repair, see what your home insurance company can do.
A typical homeowners insurance policy offers coverage for damaged HVAC systems that are caused by situations such as theft, fire, or lightning.
Learn more about home insurance covers for your HVAC systems, including:
Circumstances where your insurance company will (and won’t) pay for your claims
Important features of different HVAC systems
Advantages and benefits of HVAC systems
Where to get all your HVAC system supplies
Categories of HVAC Systems
Air conditioning system: Removes heat and humidity from indoor air using a circuit or a series of connected ducts
Heating system: Moves hot air inside to keep indoor environments warm. Includes furnaces, boilers, and heaters
Ventilation system: Brings in fresh outdoor air and eliminates contaminated indoor air
Now, let's go through a few HVAC systems, their features, and insurance covers in more detail.
1 - Air Conditioners
Home insurance will cover damages to your AC if they fall under the peril listed in your homeowner’s policy.
Depending on the unit type, your AC is considered personal property or part of your home’s structure.
Central AC units, for instance, are part of your home’s structure and will fall under dwelling insurance coverage.
This coverage caters to your house’s built-in appliances, flooring, garage, and countertops. So if a house fire or lightning were to destroy your AC unit, your home insurance would cover the cost of repairing or replacing it.
But only up to your dwelling insurance coverage limit.
Likewise, you can’t make a claim for an amount less than your insurance deductible.
So if the cost to replace or repair your AC unit is less than your deductible, you’re better off paying it out of your pocket. Filing a claim might raise your homeowners insurance premium.
Window AC units, on the other hand, are not part of your home’s structure and are instead considered personal property.
As such, they fall under personal property coverage, which will cover the cost of damage, destruction, or theft of your personal items.
For example, if your window AC unit is vandalized or stolen, your home insurance should cover it up to the amount of your personal property coverage limit.
Homeowners insurance won’t cover damage caused by normal wear and tear, poor maintenance, or mechanical breakdown. You’ll need to pay for these repair or replacement costs out of your own pocket.
Note: Regularly replace your AC’s parts and accessories that are most subject to wear and tear, like air filters and blower fans. Doing so will prolong its life and reduce maintenance costs.
Important Features of AC Units
Wide variety: Comes in different sizes and styles to meet every space’s needs
Quick and easy to install: Some units, like portable ACs, just require plug and play operation
Improved air quality: Have filters which remove dust and heavy pollutants from the environment
Energy efficient: ACs with higher star ratings have low power consumption and save more energy
2 - Furnace
As a fundamental part of your HVAC system, a furnace is built into your home.
This makes it part of your home’s structure and qualifies it for dwelling insurance coverage if damaged by a covered peril.
So if your furnace is damaged by freezing, falling objects, fire, or accidental tearing or bulging, your home insurance will cover its repair costs.
Likewise, if the covered peril has destroyed your furnace beyond repair, the home insurance company is liable for its replacement.
However, as with your AC unit, the insurance does not cover damage caused by neglect, mechanical breakdown, general wear and tear, or pet damage.
Homeowners who want protection from these non-covered causes can consider a home warranty or an extended warranty on their furnace.
Unlike home insurance that protects you and your home from loss and destruction, particularly by a set of listed perils, a home warranty covers key appliances and systems within your home, replacing or repairing them whenever they break down.
Home warranty contracts typically last a year and can be renewed. Their annual coverage fee starts as low as $400, with the cheapest plan offering a basic level of protection.
Important Features of a Furnace
Different fuel sources: Can be fueled by natural gas, electricity, heating oil, or liquid fuel
Energy efficient: Furnaces with a higher annualized fuel utilization efficiency (AFUE) rating use the least amount of fuel
Size: Come in different sizes to accommodate available space
Enhanced sound performance: Has insulated cabinets to reduce noise levels
3 - Boilers
A boiler is an important appliance that you can't take with you when you move. It’s therefore covered under your dwelling insurance policy.
But it will only be covered by home insurance if it breaks down from a cause listed in the policy. This may include an explosion, storm, or other unforeseen circumstances.
However, the dwelling insurance policy won’t be liable for damage caused by normal wear and tear, improper installation, earthquakes, or lack of maintenance.
Important Features of a Boiler
Water pressure controls: Allows you to change the level of pressure water is subjected to as it’s delivered to the radiators
Varying sizes: Come in different sizes, including compact ones that save on space
Built-in air filters: Reduces maintenance requirements and improves performance
High thermal efficiency: High thermal efficiency of 85% and above dramatically reduces the boiler’s operating cost
What’s the Difference Between Homeowners Insurance and Home Warranty Coverage
The table below shows the major differences between a home insurance cover and a home warranty cover for your HVAC systems.
Does Homeowners Insurance Cover HVAC Cleaning?
No, homeowners insurance won’t cover the cleaning of your furnace, boiler, or any other HVAC system.
The policy protects your home and personal property against unexpected or sudden damages. Regular cleaning is considered part of your home’s regular maintenance.
This includes changing your unit’s air filters, unblocking clogged AC drains, and removing dirt and debris close to the unit.
A bad smelling air conditioner may indicate that your unit’s drains are clogged and need a flush. Regularly cleaning it will help you save on repair and maintenance costs and keep it working for longer.
Get All Your HVAC System Supplies From Industrial Stores
Your home insurance will only cover damage caused by certain perils listed in the policy.
When it comes to normal wear and tear, flooding, or improper installation, you’ll need to repair or replace your HVAC system yourself.
That’s why it’s essential to have your system professionally installed and serviced regularly. If it’s NOT professionally installed or maintained, your homeowners insurance may not cover your claim.
Remember to document every damage to your HVAC system, as this will help support your claim. Take pictures and videos of what has been damaged, noting the time and day of each.
And if you’ve made any temporary repairs, save all the receipts so the insurance company can reimburse you.
Industrial stores has all the HVAC system supplies you need for your repairs and replacements. Our products are of exceptional quality, from reputable brands, and sold at unbeatable prices.
To get started, you can also submit a request quote which we’ll process within 24 hours.
Don’t hesitate to reach out for further inquiries. We’d be glad to help.
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