Is HVAC Repair & Replacement Covered by Homeowners Insurance?

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Homeowners insurance will pay to repair or replace your heating, ventilation and air conditioning (HVAC) system if it is damaged suddenly by a peril that is covered by your policy like fire or vandalism. However, a standard home insurance policy won’t cover gradual and preventable sources of damage or anything expressly excluded by the policy.

Read below to find out when homeowners insurance does cover HVAC systems and what options are available outside of home insurance for more extensive coverage.

Key Takeaways

  • Your AC units, furnaces, heat pumps and other HVAC components should be covered by either the dwelling or personal property portion of your homeowners policy, depending on the kind of system you have.
  • Homeowners coverage generally insures HVAC systems against sudden perils like fire, hail, theft and vandalism.
  • Home insurance policies often exclude coverage for damage caused by floods, earthquakes or wear and tear.
  • You may be able to supplement your homeowners insurance by purchasing a home warranty, equipment breakdown insurance and other optional coverage types.
  • Without insurance, it costs about $7,500 on average to replace a damaged HVAC system.

When Does Homeowners Insurance Cover HVAC?

In general, homeowners insurance covers damage to your HVAC system caused by sudden and unexpected perils. The coverage type that applies and the scope of coverage may depend on whether you have a central air conditioning unit or a portable one.

Central AC units and other HVAC systems that are built into your house are insured by your dwelling coverage. A standard homeowners policy insures these systems on an open peril basis, meaning your insurance company will cover damage from any cause as long as your policy doesn’t explicitly exclude it.

Conversely, window AC units and similar systems that can be detached from your home will likely be covered by your personal property coverage. These kinds of HVAC systems are usually insured against damage caused by the following 16 named perils.

Fire or lightning

Vandalism or malicious mischief

Windstorm or hail



Volcanic eruption

Riot or civil commotion

Falling objects

Damage by aircraft

Weight of ice, sleet or snow

Damage by vehicles

Freezing of home systems


Sudden/accidental power surges

Sudden/accidental tearing, cracking, burning or bulging of home systems

Water/steam discharge from home systems and appliances

difference between named peril and open peril home insurance coverages comparisons

Does Homeowners Insurance Cover HVAC Replacement?

Your homeowners insurance company should pay to replace your HVAC system after it is destroyed by a covered peril as long as the replacement cost doesn’t exceed your coverage limits. You will generally want to maintain enough dwelling coverage to rebuild your home if necessary and your personal property coverage limit will commonly be between 50% and 70% of your dwelling coverage limit.[1]

For example, if you have $300,000 worth of dwelling coverage, your policy will often include between $150,000 and $210,000 worth of personal property coverage. It costs around $7,500 on average to install a new HVAC system, which means an HVAC replacement should comfortably fall under your coverage limits barring other claims.[2]

Keep in mind that your insurance provider will subtract the deductible from your payout. Your deductible is the amount of money you agree to pay up front toward all covered losses. For example, if you have a $1,000 deductible, your insurance company might pay you $6,500 toward replacing a $7,500 HVAC system.

How Does Home Insurance Cover HVAC Replacement and Repairs?

Depending on the details of your policy, your insurance company may reimburse you after a covered loss at your HVAC system’s actual cash value (ACV) or replacement cost value (RCV). The ACV of an item is its value when considering depreciation factors like age or wear and tear, while its RCV is the amount of money it would take to replace it with a comparable item.

For example, if you bought a $10,000 HVAC system that was expected to last 20 years, it might depreciate in value by $500 every year and have an ACV of $5,000 after 10 years. As a result, if the HVAC system was destroyed in a fire after 10 years, an ACV policy might pay out $4,000 after you pay a $1,000 deductible.

Similarly, an RCV policy could provide an initial $4,000 payment for the same claim. However, after purchasing a new HVAC system for $10,000, you could submit the receipt to your insurance company and receive an additional $5,000 recoverable depreciation payment.

share in deductible, actual cash value, and recoverable depreciation in bar graph

When Won’t Home Insurance Cover My HVAC Unit?

Your home insurance company won’t pay to repair or replace your HVAC system if it is damaged by something that your policy lists as an exclusion. Common exclusions include pests and infestations, mold, floods and earthquakes.

In addition, homeowners policies will not cover most gradual forms of damage.

If your furnace is ruined due to wear and tear or poor maintenance, you will have to pay out of pocket to replace it since you could have reasonably prevented the damage. Your homeowners insurance company also likely won’t pay to fix cosmetic damages as long as your HVAC system still functions properly.

How To Get More Comprehensive HVAC Coverage

Even if a certain peril is excluded by your homeowners insurance policy, you may be able to purchase extra coverage to account for those losses. For example, you can buy flood insurance or earthquake insurance to be reimbursed for damage to your HVAC components after these natural disasters.

Meanwhile, you can purchase a home warranty to receive some coverage for gradual damage to your home systems and appliances. While a home warranty still likely won’t cover poor maintenance or neglect, it may cover damage that occurs due to regular wear and tear during your coverage period.

Finally, you may be able to add equipment breakdown coverage to your homeowners policy to cover sudden losses that aren’t covered by your personal property insurance. This can include damage from causes like short circuits and mechanical failures.

How To File an HVAC Insurance Claim

You should take the following steps to file a homeowners insurance claim any time your HVAC system experiences damage that is covered by your home insurance policy:

  1. Call 911 and get the responding officers to fill out a police report if your claim is the result of a crime like theft or vandalism.
  2. Notify your home insurance company that you intend to file a claim.
  3. Document how the damage occurred, take pictures of the damaged components and record the model, brand and serial number of each damaged component.
  4. Make emergency repairs if necessary to prevent further damage from occurring.
  5. Inform your mortgage lender that you are in the process of filing a claim.
  6. Schedule a visit with your insurance adjuster and collect evidence to support your claim like police reports, photographs and estimates from local repair companies.
  7. Submit all relevant documents to your insurer and track your claim so you can take care of any issues that arise.
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Will home insurance replace my whole HVAC unit?

Home insurance can pay to replace your entire HVAC system after a covered loss as long as the cost does not exceed your coverage limits.

What type of coverage do you need for an air conditioner?

An air conditioner may be covered by the dwelling or personal property coverage portion of a standard homeowners policy. For more extensive coverage, you could also purchase a home warranty or equipment breakdown insurance.

Does home insurance cover damage caused by AC unit leaks?

A standard home insurance policy likely won’t cover water damage caused by a gradual leak that resulted from poor maintenance. However, it should cover damage caused by a sudden discharge of water from a home system like your AC unit.

How long should a residential HVAC system last?

HVAC systems last around 20 years on average, with most systems lasting between 10 and 30 years.[3]

What’s the difference between a home warranty and home insurance?

Home warranties insure your appliances against gradual sources of damage like wear and tear whereas home insurance provides coverage for sudden sources of damage to your home and belongings like fire and vandalism.


  1. Insurance Information Institute. “What Is Covered by Standard Homeowners Insurance?” Accessed June 21, 2023.
  2. Angi. “2023 HVAC Replacement Cost Guide.” Accessed June 21, 2023.
  3. Angi. “How Long Do HVAC Systems Last?” Accessed June 21, 2023.

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