Does Homeowners Insurance Cover AC Units?
Find Cheap Homeowners Insurance Quotes in Your Area
Homeowners insurance only covers damage to an air-conditioning unit as a result of a covered peril (hazard) listed in your policy. Depending on the type of unit, AC is either part of your home's structure or your personal property. So you will be able to file a claim for damage from causes named in your policy.
When does homeowners insurance cover AC units?
Insurance covers AC units and heat pumps similar to how the rest of your home is covered. Damage from fires, falling trees, vandalism and lightning strikes are all covered in standard homeowners policies.
On the other hand, normal wear and tear or accidental damage is not covered. So, if your AC simply breaks down after using it for 10 years, you won't get money to repair or replace it. This is true with most companies, including State Farm, Progressive, Allstate and Farmers.
Fire and lightning damage
If a fire destroys your air conditioner, your homeowners insurance policy will cover its repair or replacement. And, if lightning strikes your AC unit and damages its electrical components, your policy will also usually pay to replace it.
Falling trees and vandalism
If your AC unit is destroyed by a falling tree or branch, you are protected, because policies typically cover damage caused by trees. If your AC unit or heat pump is vandalized, you are also protected, since home insurance often covers destruction from vandalism. You should also file a police report to document the crime and the damage.
If you are ever in doubt about the specifics of your coverage, call your agent or insurance company for details.
Find Cheap Homeowners Insurance Quotes in Your Area
When isn't your AC covered by a homeowners insurance policy?
Homeowners insurance policies don't cover AC malfunctions caused by lack of maintenance, general wear and tear or accidents. An air conditioner that fails after 10 years of use or is dented by a baseball during a backyard game of catch won't be covered. You'll be solely responsible for repairing or replacing the unit.
Be on the lookout for water damage. AC units generally aren't likely to get water damage themselves. But they produce water as part of their normal operation. If that water leaks and floods your home, you won't be covered, because it would be considered a maintenance issue. Regularly check your AC unit to make sure it's draining properly.
Homeowners insurance companies treat central AC and window AC units differently. Generally, a central AC unit is considered part of your home's structure, but a window unit is covered as personal property. As a result, window units are usually covered for fewer things.
There aren't many situations where central AC would be covered and a window unit wouldn't, but you should check the specifics of your policy to be sure.
Cover the cost of repair with a home warranty
To help cover the repair costs of your air conditioner and other appliances, consider getting a home warranty.
Home warranties, also called home repair insurance, cover the cost to repair your home's systems and appliances, including your air conditioner, for a set fee. Just be sure you understand the policy's terms before you sign up.
How do you file a homeowners insurance claim to fix your air conditioner?
If your AC unit is damaged by a covered event, think about whether filing a claim would cost more in the long run. First, get a repair estimate and then weigh that against your insurance deductible.
If the cost to repair or replace your AC unit is less or only slightly higher than your policy's deductible, you're better off paying out of pocket. Filing a claim could raise your premiums.
If you decide to file a claim, take pictures of visible damage to your AC unit and write down the model and serial number. If vandalism was the cause, file a police report and request a copy.
Next, call your agent or insurance company to begin the claims process. After asking how your AC unit was damaged, your insurance company will check to make sure the damage is covered by your policy. An adjuster will visit your home to survey the AC unit and estimate how much money the company will provide to replace or repair the unit. Meet with the adjuster when they arrive to make sure nothing is overlooked or missed.
The adjuster will quote the cost of repairs or replacement. If your policy covers the replacement cost value, then you'll be paid the value of the unit when it was purchased, plus inflation. If your policy covers the actual cash value,you'ill only receive the value of the AC unit at the time it was damaged.
This means that if the value of the unit has gone down, you would receive the depreciated amount. Once the claim is approved, your company will provide you with a portion — usually half — of the repair or replacement cost and then give you the rest once the work has been finished.
Editorial Note: The content of this article is based on the author's opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.