Home insurance can cover risk such as fire or many types of water damage, but can home insurance cover your HVAC? It depends on what causes the damage to your HVAC system.
Your home insurance policy covers both your home and your belongings, but the reason for mentioning both is that coverage can vary depending on whether you are discussing you home itself or your home’s contents.
Insurers consider your HVAC system as part of your home itself. The HVAC system is attached. Your furniture is not attached. On most home insurance policies, the home’s structure is covered for all risks except those risks specifically excluded.
– Common examples of exclusions include
– Wear and tear
– Intentional damage
– Earth movement
– Power failure
Damage to your HVAC system due to an excluded risk will not be covered. But all other risks would be covered. So, a fire at your home that damaged your HVAC system would be covered by a standard home insurance policy. However, a sinkhole that swallows up your outdoor air conditioner would not be covered.
In some cases, you may be able to add coverage for additional risks. For example, damage due to flooding is not covered by a standard homeowners insurance policy. But you may be able to purchase a separate policy to cover damage due to floods.
Similarly, you may be able to add coverage for earth movement if that is a risk in your area. However, failure due to wear and tear would not be covered.
Often, third-party providers sell home warranties or similar products that address the cost of repairing home systems. But it is important to note that these warranties poor service plans are not insurance. As with all financial products, do your due diligence before making a commitment.
While your home insurance policy cannot help if your HVAC systems breaks down due to wear and tear, you can customize your policy in many other ways. If you have not reviewed your coverage lately, reach out to your broker to schedule a policy review. A review gives you a chance to go over your coverage in detail and address any gaps in coverage.
Life changes and so do our insurance needs. Make sure your insurance policies are up to date.