Most homeowners assume that their HVAC system is covered by their homeowners’ insurance policy. That, in most instances, is correct. However, there are a few situations where damage may occur where insurance may not cover the unit. Read on, and learn about when you need to be concerned about HVAC insurance coverage.
When Your HVAC System Is – or Isn’t – Covered
Most of the time, your homeowner’s insurance policy will cover damage to your HVAC system. For instance, if it is battered by hail or a tree falls on the outdoor air conditioner condenser during a winter storm, you can recoup your losses, after paying your deductible. Damage from theft or vandalism is also covered. Be mindful this coverage only extends to your whole-house system, and not a window unit, as the latter is not considered part of the structure.
However, although most natural disaster- or crime-related damage damage is covered, flood damage is not. That is, if a flood sweeps through your area and damages your unit, you will need separate flood insurance to cover damages. The exception is when pipes burst from freezing, and your unit is damaged by that type of flooding. Your homeowner’s policy will indeed cover for HVAC repairs or replacement from this type of flooding.
Damage that occurs from wear and tear is not covered. Depending on the type of coverage you have, certain kinds of human-related accidents may not be covered. Be sure to go over your policy to determine what those might be.
Deductibles and Your HVAC
Sometimes, your deductible will be more than the cost of replacing or repairing your HVAC, so be mindful before you make a claim whether it’s better to go ahead and shoulder the expense yourself, or pay a deductible and collect insurance payments. Sometimes, your insurance rates may rise when you make a claim like this. Talk to your agent and try to determine which is the best option before you make the claim.
To learn more about HVAC insurance, contact Mowery Heating, Cooling and Plumbing. We serve Indianapolis and the surrounding area.
Our goal is to help educate our customers in Brownsburg, Indiana and surrounding areas about energy and home comfort issues (specific to HVAC systems).