Does Your Home Insurance Cover Your HVAC System?

The key word in home insurance coverage is “damage.” Most policies cover damage caused by specific natural events such as fires, lightning, hail and windstorms.

However, many high-value losses a homeowner may be faced with in the home—such as a malfunctioning or totally inoperative HVAC system—are not a consequence of damage related to natural causes. Such losses, generally repair or replacement due to routine causes such as wear and tear or maintenance issues are not compensated by home insurance.

An HVAC system may simply fail because it’s reached the end of its expected service life. When it comes to these losses, home insurance coverage typically offers no reimbursement.

When HVAC Coverage Applies

This doesn’t mean home insurance never extends to cooling or heating systems, however. If a functioning unit is damaged or rendered inoperative solely due to one of the events that the policy specifically mentions—such as fire, lightning or windstorms, for example—then the HVAC system would be included among losses covered by the policy.

Other Available Options

Though homeowner’s insurance doesn’t apply to many potential scenarios when it comes to HVAC systems, you’re not without options when it comes to reducing costs and potential loss. Here are some ways to add protection to your cooling and heating system:

  • HVAC service plans. Offered by local HVAC contractors, these plans provide alternatives to maintain optimum system performance, reduce costs and receive enhanced service if the need arises. Benefits range from annual checkups and preventive maintenance up to discounts on parts for needed repairs as well as priority service during busy season and no extra charge for emergency calls.
  • Home warranties. A home warranty covers repair or replacement of appliances and other high-value systems when it occurs due to normal wear and tear. They are often marketed by realtors to home buyers. When an issue arises, the homeowner contacts the home warranty company which then dispatches a service provider with whom they have an existing business arrangement. The homeowner then pays only a small service fee for covered work.

Ask Beyer Boys for more info about home insurance issues with HVAC systems.

Our goal is to help educate our customers in the greater San Antonio, Texas area about energy and home comfort issues (specific to HVAC systems).