Does Home Insurance Cover Your A/C?

When Is A/C Damage Usually Not Covered?

A standard homeowners policy generally does not cover an air conditioning system that stops working because of age, normal wear and tear, deterioration, or an ordinary mechanical breakdown.

For example, your standard home insurance policy may not cover the repair or replacement if:

• The compressor fails from normal use
• Parts have worn out over time
• The system has deteriorated because of age
• The A/C stops working because of a maintenance-related problem
• A component simply experiences a mechanical or electrical failure

This distinction can be frustrating for homeowners. An A/C system can be working normally one day and suddenly fail the next, yet the cause of that failure may not qualify as a covered loss under a standard homeowners policy.

That's where Equipment Breakdown coverage can become important.

What Is Equipment Breakdown Coverage?

Equipment Breakdown coverage is an optional addition to some homeowners insurance policies that can provide protection for certain household equipment when it suffers a sudden mechanical, electrical, or pressure-system breakdown.

That can include more than just your air conditioner. Depending on the policy, covered equipment may include:

• Heating and air conditioning systems
• Refrigerators and freezers
• Washers and dryers
• Water heaters
• Electrical panels and certain home systems
• Other eligible appliances and equipment

Here's why that matters for your A/C:

A standard homeowners policy and Equipment Breakdown coverage are designed to address different types of losses. Your homeowners policy may cover A/C damage caused by something like a fire, lightning, or another covered event. Equipment Breakdown coverage may provide protection when eligible equipment suffers certain sudden internal mechanical or electrical failures.

Equipment Breakdown coverage still isn't a maintenance plan or home warranty. It generally doesn't cover equipment simply because it is old, worn out, or needs routine maintenance. The specific cause of the breakdown and the terms of your policy determine whether coverage applies.

If It's Covered, Will Insurance Repair or Replace Your A/C?

If your A/C damage is covered, that doesn't automatically mean the entire system will be replaced. What happens next depends on the extent of the damage, whether the equipment can reasonably be repaired, and the terms of your policy.

In some cases, replacing a damaged component may be enough to restore the system. In others, the damage may be significant enough that replacement of covered equipment is necessary.

Your deductible also matters. Even when the cause of damage is covered, the cost of the repair or replacement may not be significantly higher than your deductible. That's one reason it's worth understanding the likely cause and cost of the problem before deciding whether to file a claim.

Coverage, deductibles, limits, and how a loss is settled can vary by policy. Reviewing your specific coverage before filing a claim can help you understand what to expect.

What Should You Do If Your A/C Breaks?

Before assuming your homeowners insurance will—or won't—cover the problem, try to determine why the system failed. The cause of the breakdown is often what determines whether insurance coverage may apply.

1. Have the system inspected. A qualified HVAC technician can help identify what failed and what caused the problem.
2. Ask for a written diagnosis and estimate. Documentation of the cause and expected repair or replacement cost can be helpful when evaluating your options.
3. Review your homeowners policy. Check whether the cause may be covered and whether your policy includes Equipment Breakdown coverage.
4. Consider your deductible. Compare the estimated cost of the damage with the deductible that would apply before deciding whether filing a claim makes sense.
5. Ask questions before filing. If you're unsure how your coverage applies, your insurance agent can help you understand the policy and your options.

A broken A/C doesn't automatically mean you have an insurance claim—but it doesn't automatically mean you're on your own, either. Understanding what caused the failure and what coverage you have is the best place to start.