When you consider that your cooling and heating components are among the most expensive systems installed in your home — and the most critical to your family's quality of life — it’s easy to understand why adequate HVAC insurance is vital. Several options are available that may provide some or all HVAC insurance coverage in the event of a breakdown, a mishap or another event that disables your cooling or heating system. Here, we'll discuss what’s available to protect your investment and comfort.
Homeowners Insurance
If your AC or furnace is affected by an event — such as a fire — that's also covered by a standard homeowners policy, you’re covered. However, a wide variety of events affecting HVAC equipment that are not covered by standard homeowners insurance — such as earthquakes, flooding or major malfunctions due to wear and tear — will not be eligible for compensation.
However, certain homeowners policies include the option for coverage in the event of the breakdown of major equipment. This will pay for significant repairs to home systems, including HVAC. This HVAC insurance coverage is available at extra cost above the standard homeowner’s policy premium.
Home Warranties
Entirely separate HVAC insurance is included in home warranties that also cover major repairs of various home appliances. Marketed by independent companies, home warranties require payment of a continuing monthly premium and also impose a substantial deductible on most repairs. Most plans do not offer coverage for losses due to events that are typically covered by homeowners insurance, such as fire and theft. Coverage may also be denied if particular system components are not properly maintained.
HVAC Contractor Maintenance Plans
The contractor who sold and installed your HVAC system may offer maintenance plans that provide scheduled routine maintenance as well as repairs and replacements for an affordable monthly premium. The terms usually offer discounts on parts and labor, priority service calls and extended warranties for any new systems you may purchase. Service plans are particularly helpful because the routine annual maintenance provided tends to reduce costly breakdowns and repairs, thus making expensive component replacements less likely.
For more information about HVAC insurance options, talk to the professionals at Air Assurance.