Does Homeowners Insurance Cover AC Units?
Damage to an air-conditioning unit caused by a covered peril listed in your homeowners policy is only covered by homeowners insurance. Depending on the type of unit, an air conditioner is either part of the structure of your home or personal property, so you will be able to file a claim for damage caused by specific causes, according to your policy.
When does homeowners insurance cover AC units?
AC units and heat pumps are covered by home insurance in the same way that the rest of your house is. Fires, falling trees, vandalism, and lightning strikes are all covered under standard homeowners insurance policies.
Normal wear and tear and accidental damage, on the other hand, are not covered. So, if your air conditioner simply fails after ten years of service, you will not be reimbursed for repair or replacement. This is true for the vast majority of homeowners insurance providers, including State Farm, Progressive, Allstate, and Farmers.
Fire and lightning damage
If your air conditioner is destroyed by fire, your homeowners insurance policy will cover its repair or replacement. If lightning strikes your AC unit and damages its electrical components, your home insurance policy will usually cover the cost of replacing it.
Falling trees and vandalism
If your air conditioner is destroyed by a falling tree or branch, you are covered because policies typically cover tree damage. If your air conditioner or heat pump is vandalized, you are also protected because vandalism is typically covered by home insurance. In addition, you should file a police report to document the crime and the damage.
If you have any questions about the specifics of your coverage, contact your agent or insurance company for clarification, as policies vary.
When isn't your AC covered by a homeowners insurance policy?
AC malfunctions caused by a lack of maintenance, general wear and tear, or accidents are not covered by homeowners insurance policies. Your home insurance will not cover an air conditioner that fails after 10 years of use or is dented by a stray baseball during a backyard game of catch. The unit's repair or replacement will be entirely your responsibility.
Keep an eye out for water damage as well. While AC units are not generally susceptible to water damage, they do produce water as part of their normal operation. If that water leaks into your home and causes flooding, you will not be covered because it is deemed a maintenance issue. Check your air conditioner on a regular basis to ensure that it is draining properly.
Furthermore, homeowners insurance companies treat central air conditioning and window air conditioning units differently. A central air conditioning unit is generally considered part of your home's structure, whereas a window unit is covered as personal property rather than as part of the home's structure. As a result, the scope of damage for window units is typically narrower.
- A typical homeowners insurance policy includes coverage for a central air conditioning unit under "open perils." That is, unless the cause, such as war or flooding, is specifically excluded, the damage is covered. Meanwhile, window units are only covered by "named perils" that are specifically described in your policy.
There aren't many situations in which a central air conditioner would be covered but a window unit would not, but you should double-check your policy to be sure.
Cover the cost of repair with a home warranty
Consider purchasing a home warranty to help cover repair costs for your air conditioner and other appliances.
For a set fee, home warranties, also known as home repair insurance, cover the cost of repairing your home's systems and appliances, including your air conditioner. Just make sure you understand the terms of the policy before signing up.
How do you file a homeowners insurance claim to fix your air conditioner?
If your air conditioner sustains damage as a result of a covered event, consider whether filing a claim will cost you more money in the long run. First, get an estimate for the cost of repairing the unit and compare it to your homeowners insurance deductible. If the cost of repairing or replacing your air conditioner is less than or only slightly higher than your policy's deductible, you should pay out of pocket. Filing a claim may result in an increase in your homeowners insurance premium.
Take pictures of visible damage to your AC unit and write down its model and serial number if you decide to file a homeowners insurance claim. If the damage was caused by vandalism, file a police report and request a copy.
Then, contact your agent or insurer to start the claims process. Your insurance company will check to see if the damage is covered by your specific policy after asking how your AC unit was damaged. An adjuster will come to your house to inspect the air conditioner and estimate how much money your insurer will provide to replace or repair it. When the adjuster arrives, you should meet with them to ensure that nothing is overlooked or missed during the evaluation.
The adjuster will provide a cost estimate for repairs or replacement. If your policy covers replacement cost, you'll receive an amount equal to the unit's original purchase price — including inflation. If your policy covers actual cash value, you will be compensated for the cost of the AC unit at the time of damage.
This means that if the unit's value has depreciated, you will be paid the depreciated amount. Once the claim is approved, the insurer will pay you a portion — usually half — of the repair or replacement cost, and the remainder once the work is completed.