It is important to have an air conditioner, especially on hot summer days. What happens if the AC unit fails? Does your homeowners insurance cover the costs of repair or replacement? Let’s go over what you need to know.
Does home insurance cover AC units in the house?
Your homeowners insurance covers your AC unit in the event of damage caused by fire, vandalism or storms.
If a tree falls on your AC unit in a storm, then your insurance may cover the cost of repair or replacement. If someone steals your AC, your home insurance will likely cover the cost to repair or replace it.
The type of AC you own will also affect your coverage. Because they are attached to your home, central air conditioning systems will be covered by the dwelling section of your homeowners’ insurance policy. The dwelling coverage is typically offered as “open perils”, which means that your central AC system is likely covered, unless damaged by an incident specifically excluded from the policy.
If the AC unit you own is portable or a window unit, that may fall under your personal property coverage, which pays for damage to movable belongings. Personal property insurance is usually based on “named perils“. This means that your policy will only cover window AC units if they are damaged by an event specifically named in the policy.
If you have any questions, contact your insurance agency.
What happens if your AC unit is not covered by home insurance?
In the following situations, homeowners insurance will not cover the damage to your AC unit.
- Wear and tear. Home insurance does not cover damages caused by wear and tear. You’ll have to pay for the costs of repair or replacement if your AC stops working due to normal usage over time.
- Lack of maintenance. If you failed to maintain your air conditioner, your insurer could deny your claim.
- Flood damage. Flood damage is generally excluded from standard home insurance, which includes damage to your AC unit. Flood insurance is required for this.
- Mechanical breakdowns. Standard home insurance does not cover mechanical breakdowns unless you have added coverage for equipment breakdown to your policy.
Are you covered for equipment breakdown on your AC unit?
The equipment breakdown coverage add-on is a financial protection against mechanical failures that may occur in your household, such as your AC unit. This policy goes beyond the standard home insurance coverage by including mechanical breakdowns not normally covered in regular policies.
How to claim your AC when it breaks down
Follow these steps if your AC unit needs to be repaired or replaced.
- Document the damage. Document the damage by taking photos or video of the AC unit damaged and other areas affected.
- Decide if you wish to make a claim. You must decide if you want to file a claim if your policy covers your loss. When deciding whether or not to file a claim you should consider your home insurance deductible, which may be greater than the cost of repairing the AC unit. Consider whether filing a claim will increase your insurance premiums. You may then decide not to file the claim.
- Contact your insurance company. You can file a claim online or by phone. Prepare to share receipts, photos and other documents. All documents and photos should be kept in a copy.
- Get an estimate. A licensed contractor can tell you how much it would cost to replace or repair the AC unit.
- Work with your adjuster. You will be assigned an adjuster by your insurance company to evaluate the damage. You should work with the adjuster as soon as possible to process your claim.
- Wait for payment. Your insurance company will pay for the AC unit repair or replacement once your claim has been approved. If you have questions or concerns regarding the payment, contact your insurance provider.
