Leaks in AC units can cause significant water damage and cost homeowners significant sums of money – but is this damage covered by insurance policies?
Homeowner’s insurance does not usually provide protection for equipment failure due to wear-and-tear or neglect, however an endorsement or standalone policy might.
AC Units
An AC unit is an essential element of home life in states like Florida where temperatures frequently reach the 90s. Unfortunately, poorly maintained AC systems may become vulnerable to water damage from both inside and outside sources, leading to costly repairs or even mold growth if left without preventative maintenance services. Therefore, investing in preventive maintenance programs will keep your AC in prime condition and save both money and time down the line.
However, many homeowners remain uncertain whether their insurance will cover these costs or not. The answer to this question largely depends upon your policy’s individual provisions as well as any damage sustained to your air conditioning.
Small window and wall air conditioners typically fall under the personal property section of your homeowners policy, protected against its 16 named perils and easily demonstrated damage. But for larger central air conditioning systems that include more extensive protections such as protections for HVAC components like pipes and insulation.
Lack of maintenance is usually the main factor behind an insurer denying your claim for AC damages, with regular maintenance (cleaning condensation lines and checking refrigerant levels regularly to prevent damage) expected of you by them. If this becomes costly for you, equipment breakdown coverage could provide peace of mind.
This add-on covers the costs associated with repairing or replacing your HVAC system and may cover additional water damage due to leaks, but your deductible must first be met. As this may be a considerable financial strain, it may be more prudent and financially advantageous for you to foot the bill yourself rather than file an insurance claim; doing this may reduce deductible payments as well as future rate hikes from most insurance providers after filing claims.
Water Damage
As part of its normal operation, an air conditioner produces condensation. Normally, this excess water drains away via drain lines to avoid interior flooding; however, if your AC unit becomes clogged up and can no longer drain away properly, condensation could begin to seep into your ceiling or walls, leading to potential roof collapse or costly drywall repair bills.
If water enters your home from an air conditioning leak, the first step should be switching off power – either through using the circuit breaker or fuse box. After this step has been taken, assess any damage and see how much of it needs repair work to be completed.
If your home has experienced significant water damage from an AC leak, filing a claim with your insurer to have it repaired can be daunting and time consuming. But be warned – filing multiple claims at once might convince them that they don’t pose enough of a risk and refuse to renew your policy altogether!
Keep in mind that your homeowners insurance may not cover water damage caused by an AC leak due to poor maintenance or negligence on your part. In instances such as flooding after storms, however, the repair bills might usually be covered – this usually only applies when rain or trees felling onto your unit was the source.
At an HVAC professional’s recommendation, it’s crucial that you conduct regular checks of your AC unit. Inspections should include inspecting main and emergency drain lines for blockages; checking fan motor, compressor and electrical compartment components for signs of water damage; as well as verifying your refrigerant pressure is in good shape.
Filing a Claim
As a homeowner, it’s essential to understand how homeowners insurance covers water damage from air conditioners. Each policy differs, so please check with your insurer regarding which coverages apply to you; in general however, your policy will cover the cost associated with repairing or replacing a damaged AC unit and associated water damage, provided it was caused by events covered under your policy rather than due to negligence on your part.
Homeowners insurance typically provides three forms of protection: liability protection, loss-of-use coverage and property replacement coverage. Liability coverage will cover bodily injury or property damage you cause to others while loss-of-use coverage reimburses additional living expenses if your dwelling becomes inhabitable due to damage (e.g. if it becomes necessary to temporarily reside elsewhere during repairs). Replacement coverage typically pays for costs related to teardown and replacement of an air conditioning system damaged by water as well as furniture or personal belongings that have also been affected.
Standard homeowners insurance policies do not cover flooding, which can be an immense threat to HVAC systems and other components in your home. Therefore, adding flood coverage or purchasing a separate flood policy might be in order.
Filing an AC leak claim means your insurer will examine it to assess if it meets all the requirements of your policy, such as whether repair or replacement costs fall below your policy’s deductible. Since insurance claims tend to raise premiums, filing one for minor damage could increase them considerably; in such instances it would be wiser not to file.
Once the evaluation process has concluded, your insurance company will inform you of its status regarding your claim. Any documentation requested from you by them, such as maintenance records or repair bills will need to be provided and coordinated with an adjuster assigned to assess damage and determine an effective course of action.
Repairs
Your insurance provider may require an additional claim in order for repairs to be covered; to do this, documenting any damage by recording its model and serial number as well as taking photographs and gathering copies of any police reports may also be helpful. Furthermore, receipts must also be submitted. As this requirement will differ depending on which provider covers you best for more details.
Good news is that AC repair and replacement should generally be covered by homeowners insurance if damage was caused by a covered peril, such as flooding, hailstorm, lightning strike or fire. Unfortunately, however, your insurer might not cover it if the HVAC system was damaged through routine wear-and-tear or owner negligence.
When filing an insurance claim, an adjuster from your insurance provider will come out to survey and assess any damage and repair costs. Hiring a public claims adjuster is one way of making sure damages are assessed accurately and that any settlement received is equitable; doing this may help avoid low-balled or rejected claims altogether.
Equipment breakdown coverage may also help with repairs of your AC. This add-on policy covers mechanical breakdowns of essential household equipment that go beyond what standard homeowner policies cover, including things such as power surges.
If you’re uncertain whether your AC repairs are covered under your homeowners insurance, reach out to Pro Duct Solutions. We can help determine what’s covered and what’s not, allowing you to plan accordingly.
At Affordable Comfort Systems we understand the strain of an AC leak can be overwhelming, but don’t fret! Our knowledgeable team is on hand to guide you through this process and help get the repairs needed for your unit. Reach out now for more information; we look forward to speaking with you!