Is My AC Unit Covered Under Homeowners Insurance?

Homeowners insurance provides financial protection against unexpected events that can damage your property. This coverage typically addresses sudden and accidental losses caused by specific perils, rather than routine maintenance issues or general wear and tear.

When Your AC Unit is Covered

Your air conditioning (AC) unit is covered under the dwelling portion of a standard homeowners insurance policy, such as an HO-3. This coverage usually operates on an “open perils” basis, meaning that damage to your central AC unit is covered unless the cause is specifically excluded in your policy. For instance, if a central AC unit is damaged by a fire or a direct lightning strike, your policy would likely cover the repair or replacement costs.

Damage from severe weather events, such as windstorms or hail, is covered. If a tree falls on your AC unit during a storm, causing physical damage, your homeowners insurance would pay for its repair or replacement. Similarly, acts of vandalism or theft of your AC unit are covered perils.

Sudden and accidental water damage, like that resulting from a burst pipe connected to the AC system, may be covered. However, this is distinct from water damage caused by floods, which requires a separate insurance policy. If your unit is a portable or window AC unit, it falls under your personal property coverage, which is covered on a “named perils” basis. This means coverage applies only if the damage is caused by a specific event listed in your policy, such as fire or theft.

Situations Not Covered by Homeowners Insurance

While homeowners insurance offers broad protection, it does not cover all types of damage to your AC unit. Normal wear and tear, as the unit ages and parts degrade, is a common exclusion. If your AC unit simply stops working due to old age, the cost of repair or replacement falls to the homeowner.

Mechanical breakdowns are not covered by standard homeowners insurance policies. This includes issues like a faulty motor, compressor failure, or electrical issues unless they are directly caused by a covered peril like a power surge from a lightning strike. Similarly, damage resulting from a lack of proper maintenance or manufacturer defects is excluded.

Pest or rodent damage, such as chewed wires or nests built within the unit, is a common exclusion. Damage caused by natural disasters like floods or earthquakes is excluded from standard homeowners insurance policies. For these specific risks, homeowners need to purchase separate flood insurance or earthquake insurance policies.

Some homeowners choose to purchase optional equipment breakdown coverage. This endorsement can provide protection against unexpected mechanical or electrical failures not covered by a standard policy, bridging a gap in coverage for appliances and home systems like AC units. This coverage is distinct from a home warranty, which often covers repairs due to wear and tear.

Filing a Claim

If your AC unit experiences damage from a covered peril, initiating a claim involves several steps. Immediately after the damage occurs, ensure your safety and prevent any further damage, such as turning off the unit if it involves water or electrical issues. Document the damage thoroughly by taking clear photos and videos from multiple angles. This visual evidence will be crucial for your claim.

Gather documentation, including the AC unit’s make, model, and serial number, along with any maintenance records or receipts for previous repairs. Contact your insurance provider as soon as possible to report the incident and begin the claims process. Be prepared to provide a detailed description of how the damage occurred.

Your insurance company will assign a claims adjuster to assess the damage to your AC unit. Obtain repair or replacement estimates from licensed contractors to present to the adjuster. When the adjuster visits, be present to answer questions and ensure all damage is noted.

Consider your policy’s deductible before filing a claim. If the cost of repairing the AC unit is close to or less than your deductible, paying for the repairs out-of-pocket might be more practical, as filing a claim could impact your future insurance premiums. Once the claim is approved, your insurance company will provide payment for the covered repairs or replacement.