Your HVAC system needs expensive repairs. Fortunately, you have homeowners insurance. That should cover it, right? It depends on the kind of repairs and what’s covered under your policy. Here, we look at what you need to know.
What’s Covered by Homeowners Insurance
A typical insurance policy covers most of what’s in your home or on your property — including your HVAC system and other appliances — against theft, vandalism, fire, or weather events. So if, for instance, a tornado damages your outdoor AC unit, your insurance will pay for repairs or replacement.
When it comes to replacement, there are two possibilities, depending on what kind of policy you have. A replacement-value policy will cover what it costs to replace your unit with another similar one. A cash-value policy, on the other hand, will pay out whatever the unit was worth at the time it was damaged. Replacement-value policies typically cost more, but they’re worth it. Cash-value policies factor in depreciation over time, so when it comes to appliances, a cash-value settlement usually won’t be enough to buy a new unit without downgrading.
What’s Not Covered by Homeowners Insurance
While homeowners insurance will cover damage from most natural disasters, there are two calamities that typically aren’t covered: floods and earthquakes, both of which could potentially damage your system. If you want coverage, you’ll need separate flood and earthquake policies.
Insurance also won’t cover damage from normal wear and tear caused by aging or neglect of the system. This is why annual HVAC maintenance is so important. Your technician can address any issues before they become problems that can damage your system and keep your unit running smoothly and efficiently.
You might also consider an HVAC maintenance contract. This not only covers your annual maintenance visit for both furnace and AC, but it often covers at least some of the cost of parts and/or labor for other repairs. You also get priority assistance, so technicians arrive faster and repairs are completed sooner.
For help with the HVAC issues homeowners insurance won’t cover, contact us at Ace Hardware Home Services. Dayton’s heating and cooling needs are our top priority.
