Most standard homeowners insurance policies will pay to repair or replace your air conditioner if the damage was caused by a sudden, accidental event, like a fire or severe storm. On the other hand, most standard home policies won’t cover AC breakdowns caused by old age or mechanical failure.
Types of air conditioning
Basically, there are two types of air conditioning for your home: window AC units and HVAC (heating, ventilation, and air conditioning) systems. Drilling down a bit further, there are two main categories within the HVAC grouping: central air conditioning and mini-splits.
Air Conditioning Types
- Window units
- Central AC
- Mini-splits
Window units
A window AC is a portable unit that you can put into any window in your home. It’s quite easy to install and fairly affordable, but only cools a single room. Window AC units typically last 5-10 years before they break down.
Central AC
A central air conditioner is designed to cool an entire home. It is connected to a system of air ducts throughout the home. Central AC is more expensive than a window unit, but can save you a lot of money in the long run.
Mini-splits
A mini-split system works without air ducts. Individual indoor AC units are connected to an outdoor compressor unit via refrigerant lines. The air is cooled on its way to the compressor and then returned to the indoor unit that circulates it in the room. Heat pumps can also be added to mini-splits.
When does your home policy cover AC?
Typically, a standard homeowners insurance policy will cover damage to your air conditioner or HVAC system if the damage occurs suddenly and accidentally. In addition, the damage must be caused by a covered peril, such as:
- Hail
- Lightning
- Falling tree
- Fire
- Burst pipe
- Theft
Every homeowners insurance policy is different, so be sure to read yours carefully to see which causes you’re covered for.
When does your home policy not cover AC?
Homeowners insurance typically won’t cover your AC unit or HVAC system if it breaks down due to wear and tear or old age. Here is a list of common exclusions:
- General wear and tear
- Old age
- Poor maintenance or neglect
- Mechanical breakdown
- Improper installation
- Natural disasters like floods and earthquakes
Additional protection for AC units and HVAC systems
A standard homeowners insurance policy will only repair or replace your AC unit or HVAC system if it’s damaged by a covered peril. For maximum protection, you may want to add additional coverage to your policy or take advantage of your air conditioner’s warranty.
- Home systems breakdown
Today most HVAC systems are made with many sensitive, moving parts. As a result, the risk of a breakdown is greater than ever. So is the cost to repair it. Unfortunately, most home insurance policies don’t cover the mechanical breakdown of HVAC systems.
To fully protect yourself, you can add Home Systems Breakdown coverage to your home policy. This optional coverage may also cover the breakdown of your heating system, kitchen and laundry appliances, and generators. - Warranties
If your AC unit or HVAC system is damaged by wear and tear, your standard home insurance won’t help because the damage wasn’t caused by a covered peril. Fortunately, a warranty can help cover repair or replacement costs.
For example, let’s say your air conditioner has a refrigerant leak from years of normal use. In this case, your manufacturer’s warranty may pay to repair your AC. Whatever type of warranty you have, read it carefully so you understand the terms and conditions.
Are there different types of warranties?
Yes, there are three main types of warranties associated with air conditioning units: manufacturer, installer and extended.
Manufacturer’s warranty
The manufacturer warranty comes with your air conditioning system. It covers parts that are damaged out of the box or fail before the warranty term ends. The length of a manufacturer’s warranty differs among brands and contractors, but it’s usually 5-10 years.
Installer’s warranty
An installer’s warranty comes from your air conditioning contractor. It guarantees the quality of the installation. This type of warranty is important because your air conditioner’s performance—especially an HVAC system—depends on whether the system was installed properly.
Extended warranty
An extended warranty starts after your original manufacturer’s warranty expires. It can add several years to your parts or labor coverage. You can purchase an extended warranty from your manufacturer or installer.