Does Home Insurance Cover HVAC Replacement?

Replacing your HVAC system can be a massive pain: it requires an extensive amount of work both removing the systems and possibly having to replace vents. If you have to have your HVAC replaced, you might muse about making your homeowners insurance cover the costs. Your homeowners insurance does cover HVAC replacement, but only if it’s been damaged or destroyed by a covered peril. Chances are that your actual insurance policy doesn’t have much to say specifically about coverage or a lack thereof of your HVAC system, which means that coverage relies solely on covered perils. It isn’t as simple as it sounds, however: the extent of coverage for your HVAC system can depend on the specifics of your policy.

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Your Insurance Will Only Cover Certain Types of Damage to Your HVAC Systems

When it comes to coverage, your insurance considers a claim in terms of covered and uncovered perils. A peril is any event that can cause damage to your home or property. Covered perils are events that your insurance company will accept the costs of, however, when peril is uncovered, your insurance company is not obligated to pay for any costs associated with the event. If your policy is a modern one, it will likely cover all perils, except for an explicit list of excluded perils.

Commonly covered situations, which you can expect to find on your policy, include damage due to hail storms, or windstorms. It is also likely to cover damage from falling objects, such as a tree that collapses into your home. It is also likely to cover damage as a result of fire or smoke.

Dwelling Coverage vs Personal Property Coverage for HVAC

Just as there are commonly covered situations, there are many uncovered situations that are also common. Things such as earthquakes, mudslides, flooding, or sewage backup are all things that are very liable to damage parts of your HVAC system, regardless of how your insurance categorizes your HVAC.

Your insurance plan will be split into several different sections, that cover different aspects of your property. Dwelling coverage refers to the part of your insurance that deals with your home, and fixtures that are attached to your home, such as a deck. Personal property protection refers to the part of your insurance that insures your personal belongings, such as electronics, furniture, paintings, and the like. The basic idea is the same between all parts of your insurance: cover the cost of covered perils. What counts as a covered peril, however, can change between different sections, as well as the way that you will be compensated. While you might expect your insurance to cover your HVAC as part of your dwelling coverage, it is not unheard of for an HVAC system to be considered as personal property, which can change how it’s covered by your policy.

The difference in coverage between your dwelling coverage and your personal property coverage largely depends on which type of insurance policy you have: an HO-3, the most common and basic policy type, will likely have a separate list of coverages for dwellings and personal property. While dwellings will have all perils covered, minus the list of uncovered perils, personal property coverage might only have a limited list of explicitly covered perils, which is significantly more limited. This categorization can also change how much you’re compensated, as personal property coverage will typically have a cash limit based on the depreciated value of the item in question, typically exceeding no more than $1500. With an HO-5 policy, the coverage for your personal property will look very similar to your dwelling coverage, however, there will still be differences when it comes to how much coverage you get per item.

Fix Problems Before They Occur

Unfortunately, one thing that homeowners insurance will almost never cover to any degree is damage due to wear and tear. It is important, therefore, to regularly inspect your HVAC system and make sure that it is working fully so that you can replace or fix any problems before it causes real, more expensive problems. Central heating can be vital to preventing other issues, such as frozen pipes, which your homeowners insurance may not cover.

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