Does Home Insurance Cover My Central Air Conditioning Unit?
Homeowners Insurance Policies offer coverage against a long list of perils which occur on a sudden and accidental basis such as Fire, Wind, Hail, Theft etc… Unfortunately, ‘Wear and Tear’ is not a covered peril. Insurance companies assume that the homeowner will properly maintain mechanical systems throughout the house; it is a natural assumption that air conditioning units, heaters, stoves, water pumps etc… will need to be replaced.
If on the hand, an air conditioning unit is damaged by a covered peril, the insurance company will reimburse the cost of repair or replacement of the unit minus the applicable deductible per claim.
A homeowner may be interested in purchasing an equipment breakdown policy, sometimes known as a Home Warranty contract; these contracts offer coverage against wear and tear. In many instances, if the cost of repair exceeds the reasonable value of the unit, the warranty company may replace the unit.