Given the significant cost of AC replacement and/or repair, we often get asked whether or not their insurance might cover the cost.
In many cases, homeowners’ insurance policies do cover costs associated with damages caused by a covered disaster or ‘peril’. What is and what isn’t covered is highly specific to each individual policy and insurance provider.
That said, when the AC unit is covered, the policy usually covers costs including but not limited to heating and cooling unit repair, AC unit replacement, ventilation systems, vents, and more.
Common causes of damage that are commonly covered by homeowners insurance include damage caused by natural disasters, fires, power surges, flooding, storms, vandalism, and more.
However, it is important to note that insurance does NOT cover damage, wear, or system breakdowns due to old age, normal wear, and tear, cosmetic damage, or owner neglect (i.e. failing to have the AC unit regularly serviced and maintained by a professional).
This is why AC unit maintenance is so important. Having a documented track record of upkeep proves to the insurance provider that you did your part to ensure the unit was in good working order prior to any insurance claims.