If you are a homeowner and you have an old HVAC unit, you should be worried about the huge air conditioning repair costs. Also, you may think that your homeowner’s insurance will cover this cost or not. Today we are going to go deep with this serious matter.
What is Homeowners Insurance: Homeowner’s insurance is a type of property and goods insurance. It covers the losses and damages to the house and assets in the home. It also provides some liability coverage’s against some accidents on the property or home. The Homeowner’s insurance is also a part of the general insurance services. Normally, in a private residence, the household items which are movable easily have chances to threat are having an issue for insuring. The insurance may want a huge amount of money as the premium for that. But your air conditioning or HVAC unit is another question. The answer is Yes and No. It’s a little complicated.
When it covers: If your home faced some natural disaster or any catastrophe events, where the air conditioner gets damaged partly or obliterated with your home. You will get your coverage money from the Insurance Company. Such events are frozen pipes, falling objects from the sky, fires caused by lightning, earthquake, hurricanes, tornados Floods, etc. Your Homeowner’s insurance should cover all the damage.
However, it’s subject to investigate and the terms of the insurance company. How much money you get will depend on that. Like surely if you have a three year old air conditioning system, and somehow it gets damaged or destroyed by the event I mentioned, the insurance company will never pay for a new unit. Same goes for other home appliance too. The older your home or the product became, if you keep the insured amount same, your premium will be increased.
If your air conditioners remain under seller’s original warranty, you don’t have any trouble to get the product repaired or replaced by the HVAC vendors. All HVAC sellers’ offers a two to three year extended warranty, if you pay a little extra amount of money while purchasing the AC. Extended warranty is same as the regular warranty, it will cover the repair costs or the parts price, or you get replaced the unit if you are lucky.
When it does not cover: Your policy does not cover repair costs for various reasons. For example, if you purchase a basic homeowner’s insurance that will not cover damage caused by an ACT OF GOD. Also, the necessary maintenance costs are not being covered too in a basic homeowner’s insurance. So you need to discuss with your insurance provider, before buying the policy. Make sure you have the right type of homeowner’s insurance coverage. If your HVAC unit or air conditioners stopped working by a wrong reason like it get damaged intentionally by you, the company would not pay for the repair costs. Or the unit gets damaged due to homeowner’s negligence, or due to carelessness for the machine, the insurance company will not pay for the repair. You can submit a claim for asking your money, but your claim will get denied for sure.
If the Homeowner’s insurance not pays you for the Air Conditioning Repair or Appliance Repair, and the repair cost is huge, the best idea is to buy a new HVAC unit. Then you can have a chance to have an extended warranty along with the Homeowner’s insurance. Be careful with the machines, and they will never let you down.