Does Homeowners Insurance Cover AC Units

Your air conditioner is essential, especially on blazing hot days. But what happens if your air conditioner breaks down? Will your homeowners insurance cover the expense of repairing or replacing it? Here’s what you should know.

Does homeowners insurance cover AC units?

Home insurance will cover your air conditioner if it is damaged by fire, lightning, vandalism, storms, or other eventualities, known as “perils,” under your policy.

For example, if a tree falls on your air conditioning unit during a storm, your homeowners insurance will most likely cover the cost of repairing or replacing it. Similarly, if your air conditioning equipment is stolen, your insurance may cover the cost of a replacement.

Your coverage also depends on the sort of air conditioner you have. Because central air conditioning systems are tied to the house, they are usually covered by the dwelling section of your home insurance policy. Dwelling coverage is typically provided on a “open perils” basis, which means that your central air conditioner is likely covered unless it was damaged by an event specifically excluded from your policy.

However, if you own a portable or window AC unit, it is likely covered by your personal property coverage, which covers for damage to movable belongings. Because personal property coverage is often provided on a “named perils” basis, your policy may only cover damage to your window AC unit if it was caused by a specific incident listed in your policy.

Insurance companies use specific language to indicate what is and is not covered, so read your policy carefully and contact your provider if you have any questions about your coverage. 

When does home insurance not cover your AC unit?

Home insurance normally does not cover damage to your AC unit in the following cases:

• Wear and tear. Home insurance does not cover damage caused by normal wear and tear or aging. If your air conditioner breaks down due to normal use over time, you will most likely be responsible for the repair or replacement charges.
• Lack of maintenance. If you did not do routine maintenance on your air conditioner, your insurer may deny your claim.
• Flood damage. Flooding damage, including damage to your air conditioning unit, is typically not covered by standard house insurance policies. You will need separate flood insurance for this.
• Mechanical breakdowns. Mechanical breakdowns are typically not covered by ordinary house insurance, unless you have added equipment breakdown coverage to your policy.

Do you need equipment breakdown coverage for your AC unit?

Equipment breakdown coverage is an optional add-on to your home insurance policy that protects you financially from unexpected mechanical breakdowns of important domestic equipment, such as your air conditioning unit. It goes above and beyond basic home insurance by addressing mechanical faults that are not often covered by regular policies.

How to file a claim when your AC breaks down

If your air conditioning unit is damaged and requires repair or replacement, take these procedures to file a claim.

1. Document the damage. Take photos or videos of the damaged AC unit and any other impacted locations to back up your claim.
2. Decide whether you want to file a claim. If your loss is covered by your policy, you must now determine whether to file a claim. When considering whether to make a claim, consider your home insurance deductible, which may be more than the cost of repairing the AC unit. Consider the chance that filing a claim would increase your rates, therefore you may not want to file a claim for a smaller settlement.
3. Contact your insurer. If you decide to file a claim, you can typically do so online or by phone. Prepare to exchange photographs, receipts, and other documentation. Keep copies of everything.
4. Request an estimate. Ask a professional contractor how much it will cost to repair or replace the air conditioning unit.
5. Work with the adjuster. Your insurance company will appoint an adjuster to your claim to evaluate the damage. Work with the adjuster to have your claim processed as soon as feasible.
6. Wait for payment. Once your claim is approved, your insurance carrier will pay for the repair or replacement of the AC unit. Contact your insurance carrier if you have any questions or concerns about the payment.