Let’s be honest, heating and cooling systems are probably some of the more costly components of the home. When something goes wrong and they stop working as they should, it typically isn’t fun. Not for your wallet and not for the home’s inhabitants. Being that the vast majority of folks have homeowners insurance, it raises the question “Does homeowners insurance cover AC”? Well in short, unfortunately there aren’t many black and white scenarios, so it depends. Hopefully this article will give you some insight on when it’s worth it to file a claim, and when it’s probably best to shed a tear and cough up a pretty penny for a new unit.
Typical NY and NJ Homeowners Insurance Policy Coverage
Most policies tend to cover sudden and accidental damage. Of course, be sure to read the fine print on your particular policy, because as we all know, the devil’s in the details. But here’s the average scoop.
Typically, the HVAC system can fall under two main policy categories, ‘Dwelling Coverage’ and ‘Personal Property Coverage’. The first option tends to refer to things that are built into your home, like the boiler or central air. The second option would apply to portable or standalone options. With this, of course come the actual claim options themselves.
A popular (covered) claim option for the HVAC is “sudden and accidental damage”. Let’s break down a little further what that actually means. This can include things like a tree falling on your outdoor unit during a storm, or an electrical surge caused by lightning that led to system failure. Again, reasons that are sudden and accidental, meaning you couldn’t have prevented them from happening in the first place. Here it’s best to reiterate, that the relevant named perils will probably be listed in your policy, so it’s worth it to have a glance at what exactly your policy covers.
Typically, both New York and New Jersey follow national policy standards, so to answer the question “does homeowners insurance cover HVAC”, you can say yes, but it’s not uncommon for different states to list different risks, and of course have a difference in prices. Best to read your policy and be informed than to be surprised later on.
What’s Not Covered
This is where things get fun. In short, if you could have prevented the situation from happening, it’s probably not covered. For example, you didn’t change your filters on time? Well, that one’s on you. Didn’t schedule maintenance when you should have? Also on you. Not properly installed, decided to DIY it, or flat out neglected your unit? Also your problem, not theirs. Plus it’s worth it to keep in mind that flooding is not typically covered by standard policies. Things like manufacturer defects also aren’t covered. The plus side being with defects is that they can likely be covered by the manufacturer if the system is still under warranty.
Also, if your system has lived out its life (which is about 15 years on average), your insurance isn’t going to cough up money for a replacement. Hence it’s important to stay on top of maintenance and catch issues before they occur or escalate. Remember, if you take care of things, they tend to serve you longer.
Final Thoughts
When you’re dealing with insurance policies, it’s best to document everything. Take photos, make notes, and break out your maintenance records. The more information you have, the smoother the process is likely to be. Be sure you prevent further damage and shut off the system and avoid using it until it’s properly inspected. Of course, it’s best to call your insurer ASAP to report the situation at hand. Consider bringing in a licensed HVAC technician to access as well, as this may support your case.
We feel it’s important to note that you should consider adding supplemental coverage to your policy. Things like home warranty plans, equipment breakdown coverage, or flood insurance can be something to look into.This is especially applicable if you face things like flood or other warnings on the regular (hello Staten Island). Be sure you understand the policy you have, and what exactly it covers. Why pay for something that’s ultimately not going to give you anything back? So don’t skip the fine print and be left wondering “does homeowners insurance cover AC”, be informed.
And as always, prevention is best. It’s typically much more costly to fix problems than it is to prevent them. Just like you go to a doctor for a routine check up, you should do the same for your home and its components. Our team at Green Ductors is just a call away for all of your HVAC and air needs. Our team is NADCA certified and we’ll be glad to help should you need us, just give us a call, at 888-334-1612
