Does Homeowner’s Insurance Cover The Cost of Air Conditioner Replacement?


Most homeowners are unaware that their standard homeowner’s insurance policy does not cover the cost of air conditioner replacement. In the event of an AC unit failure, you could be looking at a very costly repair bill. Fortunately, there are ways to protect yourself from this potential expense. Read on to learn more.

The Total Cost Of An AC Replacement

Replacing an air conditioner can be a costly endeavor. The total cost of the replacement will depend on a number of factors, including the size and age of the unit, as well as the cost of labor. In most cases, it is best to budget for at least $1,000-$2,000 for a new air conditioner unit. For most, this is a less-than-ideal expense. This is why some would hope that their homeowner’s insurance would help cover the bill. Unfortunately, this is not the case. However, there’s still hope!

HVAC And Home Insurance

While your standard homeowner’s insurance policy will not cover the cost of an AC replacement, there are other types of coverage that may help. For example, many policies include what is called “HVAC Systems Coverage.” This type of coverage generally applies to systems like your furnace, boiler, and air conditioner. In the event that one of these systems fails, the coverage may help to pay for the cost of repairs or replacement. The coverage is typically limited to $500-$1,000 per occurrence.

Another option is to add a rider to your homeowner’s insurance policy. This is an add-on that can be customised to fit your specific needs. For example, you could add a rider that would cover the cost of AC replacement up to $5,000.

This would obviously be a much more ideal situation than being completely uncovered.

The best way to find out if you have this type of coverage is to speak with your insurance agent. They will be able to determine what type of coverage you have and how much protection you have in the event of an AC unit failure.

When Does Homeowner’s Insurance Not Cover AC?

In some cases, your homeowner’s insurance policy may exclude coverage for AC unit replacement. This is typically the case if the unit is considered to be “wear and tear.” For example, if your unit is older and needs to be replaced due to age or normal wear and tear, your insurance company may not provide coverage.

It’s important to note that even if your policy excludes coverage for AC replacement, you may still be covered for repairs. For example, if your unit needs a new compressor, your insurance company may cover the cost of the repair. However, they would not cover the cost of an entirely new unit.

HVAC System Types That Are Usually Covered

When it comes to HVAC system types, coverage will vary from policy to policy. In most cases, central air conditioning units are covered by insurance. This is the type of unit that is typically found in a home. However, window units and portable AC units are not typically covered.

Some policies may also exclude coverage for systems that use refrigerant. This is a type of refrigerant that is no longer manufactured in the United States. As a result, it can be quite expensive to replace. If your policy excludes coverage for refrigerant-based AC units, you may want to consider upgrading to a newer model.

Home Age and Construction Type

The age of your home and its construction type can also impact your coverage. For example, homes that are older or have unique construction features may be excluded from coverage. This is because these homes may be more difficult and expensive to repair or replace.

It’s important to note that even if your home is excluded from coverage, you may still have HVAC systems coverage. This type of coverage generally applies to the systems themselves, rather than the home as a whole.

If you’re not sure whether or not your home is covered, the best way to find out is to speak with your insurance agent. They will be able to tell you what type of coverage you have and how much protection you have in the event of an AC unit failure.

Other Factors That May Impact Coverage

There are a few other factors that may impact your coverage, as well. For example, some policies exclude coverage for “acts of God.” This generally refers to natural disasters like hurricanes and tornadoes. If your home is damaged by one of these events, your insurance company may not provide coverage.

Additionally, some policies have a deductible that must be met before coverage kicks in. This means that you would have to pay for a certain amount of the repairs or replacement yourself. The deductible is typically $500-$1,000.

Finally, it’s important to remember that coverage limits exist. This means that your insurance company will only pay out up to a certain amount. For example, if your policy has a $5,000 limit and the repair or replacement costs $10,000, you would be responsible for paying the remaining $5,000 yourself.

What You Can Do To Protect Yourself

There are a few things you can do to protect yourself in the event that your AC unit needs to be replaced. First, make sure you have a good understanding of your coverage. This means reading your policy carefully and understanding what is and is not covered. If you’re unsure about anything, don’t hesitate to ask your insurance agent for clarification. They will be able to answer any questions you have and help you understand your policy.

You should also make sure you keep up with AC maintenance. This means having your unit serviced regularly and making sure it is in good working condition. Doing so can help prevent problems down the road and may even help you get a discount on your insurance premiums.

Finally, it’s a good idea to set aside some money each month to cover the cost of AC repairs or replacement. This way, you’ll have the funds available if you ever need them. While there’s no way to completely protect yourself from the cost of AC repairs or replacement, understanding your coverage and taking some precautionary measures can help reduce the financial impact if something does go wrong.

Need an Expert?

Need an expert technician to help you with your air conditioning? Five Cross Services LLC has you covered. We specialize in AC repairs, replacement, and preventative maintenance. Give us a call today to discuss your needs.

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