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Does Homeowners Insurance Cover AC Units?

Christy Bieber
Kristi Waterworth
By: Christy Bieber and Kristi Waterworth

Our Insurance Experts

Eric McWhinnie
Check IconFact Checked Eric McWhinnie
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Homeowners insurance is an important purchase for property owners. Policies cover many losses that occur. But does homeowners insurance cover AC or other components of an HVAC system? Read this guide for more insight into when a home insurance policy will pay for repair or replacement of an air conditioning unit.

Does homeowners insurance cover AC units?

Does homeowners insurance cover AC? This is a more complicated question than it may seem. An insurance policy will cover damage to an air conditioner if it occurred as a result of a covered peril. It will not pay for damage to an AC unit or to other HVAC equipment if the damage occurs as a result of normal wear and tear.

If you're looking for insurance to cover your air conditioner, it may pay to check with the best homeowners insurance companies for coverage quotes, since not every company offers identical coverage at the same price.

When does homeowners insurance cover AC units?

To answer the question, does homeowners insurance cover AC, it is important to review the fine print on an insurance policy. Homeowners can read their policies to find out exactly what perils are covered. If the AC damage results from any of the problems the policy covers, then the insurer will repair or replace the AC, subject to the insurance policy's deductible.

So what is covered by home insurance policies related to AC? Some common examples of circumstances when homeowners insurance covers AC units include the following:

  • Fire
  • Water damage not resulting from a flood
  • Lightning strikes
  • Vandalism
  • Theft
  • Falling trees

When does homeowners insurance not cover AC units?

There are also many situations where the answer to the question, does homeowners insurance cover AC, is no. Here are some examples of circumstances when a policy would not pay for damage to an air conditioner or other HVAC components:

  • Wear and tear
  • Neglect
  • Flood damage

How do you file a homeowners insurance claim to repair an AC unit?

There are certain steps to take to file a home insurance claim to get an AC unit repaired. Here's what they are:

  • Find out if the damage is covered: There's no use submitting a claim an insurer won't pay for. Check the policy details to ensure the AC was damaged by a covered peril.
  • Determine if filing a claim makes sense: It's generally not advisable to file an insurance claim for minor damage, even if it is a covered loss. An insurance company will only pay after a deductible is met. If the AC repairs cost $500 and the policy has a $500 deductible, the insurance would not pay. Since claims raise premiums, if the insurer would pay only a small amount, it may not be worth it.
  • Research the insurer's claims-filing process: Some insurers allow simple claims to be filed online. It may also be necessary to submit claim forms via mail or claims could be initiated via phone.
  • Provide required documentation: The insurer will likely ask for supporting documents detailing the need for repairs and the covered damage.
  • Meet with an adjuster: The insurer will generally send a claims adjuster to the property to review the damage and determine if it is covered and how much will be paid out.

At the end of this process, the insurer will pay out the requisite amount for the claim. The amount will depend on whether the AC is being repaired or replaced. If the AC must be replaced, then the amount will also depend whether the policy has market value coverage or replacement value coverage.

Market value coverage pays what the AC is currently worth. If it is an old air conditioner, the depreciated value may not be very high. If the policy is a replacement value policy, then the insurer should pay enough to get a new air conditioning unit.

Homeowners insurance add-ons to cover AC

A standard policy should provide coverage for many of the common causes that could affect an air conditioner.

However, additional types of homeowners insurance coverage may be available to homeowners who want to maximize the chances of an affirmative answer to the question, does homeowners insurance cover AC? Before buying these add-on policies, however, homeowners should make sure the cost of the additional premium is worth paying.

Here are some add-ons that may provide extra coverage to maximize the chances the insurer will pay for a broken AC unit. It may also be a good idea to look into home warranty plans, which offer coverage that insurance won't.

Equipment breakdown coverage

This is an endorsement that can be added to a standard home insurance policy. It provides coverage for unexpected electrical or mechanical breakdowns that occur as a result of covered perils. For example, if there's a power surge or the central AC unit was installed incorrectly, this type of coverage could provide protection.

Flood insurance

Standard home insurance policies exclude flood damage. This means if an air conditioner is harmed by flood waters, it would not be covered. It's possible to buy add-on flood insurance that would cover not just the AC unit but also the dwelling itself and other personal property.


  • Homeowners insurance policies typically do not cover damage resulting from wear and tear or resulting from neglect. For example, if an air conditioner wears out because it has reached the end of its normal shelf life, repairs or replacement would not be covered.

    Standard home insurance policies also exclude flood damage, and may exclude fire and wind damage as well in certain areas of the country. Homeowners can buy flood, fire and wind policies separately in order to make sure losses from these causes are covered.

  • Insurance covers problems with an air conditioner only if they are caused by a covered peril. For example, an insurer might pay to replace an AC unit damaged by fire or a falling tree. Usually, when an AC unit leaks, it is not because of a covered peril. Instead, it occurs because of wear and tear or an issue with the internal components of the unit. In this case, a home insurer would not pay for repairs or replacement.

  • The cost of a new air conditioner depends on many factors, including the AC unit size and the price of labor for installation in the local area. It is common for a unit to cost several thousand dollars, especially if it is a larger unit that cools an entire home.

    According to HomeAdvisor, the national average for installing a central air unit is $5,901, with a typical range between $3,885 and $7,928.

  • Home insurance pays for damage and destruction caused by outside issues. Policies may name specific perils, such as fire damage and falling trees and vandalism. Or they may provide broad coverage for most things that go wrong, but exclude coverage for specific things such as flood damage.

    Home warranties, on the other hand, provide coverage for certain components of a home such as appliances or HVAC units that result from wear and tear or normal use. For example, a warranty would be more likely to cover a refrigerant leak from an A/C unit while insurance would not pay for this type of issue because it would not be caused by a covered peril.

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