The goal of homeowners insurance is to provide protection against loss and damage to a home, as well as to protect the assets inside the house. Most policies cover indoor and outdoor damage, but what about your HVAC components? The cost to replace a heating and air system is not cheap. Therefore, protection against losses relating to HVAC units is a significant aspect of homeowners insurance.
What Homeowners Insurance Doesn’t Cover
- Mechanical failure. HVAC components today are engineered to provide long, dependable service. However, normal wear and tear steadily accumulates and, eventually, an AC or furnace may no longer be reliable or functional. The costs of repairing or replacing a worn-out unit is not covered by a homeowners policy.
- Neglect. If an HVAC unit does not receive proper maintenance or the unit is utilized in some way that causes damage, homeowners insurance will not provide compensation if/when the unit fails.
- Flood or earthquake damage. Not covered in a standard homeowners policy. Caveat: If you purchase an additional, separate policy specifically for floods or earthquakes, it may include coverage for HVAC units. Check with your insurance agent to be sure.
When Homeowners Insurance Has You Covered
- Weather damage. If the outdoor component of a central AC is damaged by hail, high winds, lightning, falling trees, and other weather-related incidents, homeowners insurance may provide compensation.
- Fire and water. If the air conditioner or furnace is damaged by fire in the home, homeowners coverage will typically provide reimbursement. Coverage also protects in the event of water damage, but only if the damage is due to indoor events such as a broken pipe. However, HVAC components damaged by outdoor flooding are not covered by a standard homeowners policy. Again, it is vital to check with your insurance agent about your specific policy.
- Power surges. HVAC units damaged by power surges that originate on the power grid (i.e., outside the home) are usually covered by a homeowners policy.
Contact the professionals at Jackson & Sons for all your home and business heating and cooling needs.
