Short answer: Usually not for breakdown. Homeowners insurance generally doesn't pay when an air conditioner, heat pump or furnace fails from age, wear, poor maintenance or mechanical breakdown. It may cover HVAC damage caused by a covered peril, such as fire, lightning, a fallen tree, vandalism or theft. An equipment breakdown endorsement or home warranty can help with mechanical failures.
When HVAC damage may be covered
- Fire or lightning damaging the unit
- Falling objects, like a tree limb crushing the outdoor condenser
- Vandalism or theft, including copper theft from outdoor units
- Wind or hail damage
- Sudden water discharge from the system that damages your home. The resulting water damage may be covered, but not necessarily the unit. See does homeowners insurance cover water heater leaks.
When it usually isn't covered
- Mechanical or electrical breakdown
- Wear and tear, rust and corrosion
- Lack of maintenance
- Manufacturer defects
- Refrigerant leaks from age
- Power surges damaging electronic controls, in many policies. See does homeowners insurance cover power surges.
Equipment breakdown endorsement
Many insurers offer an equipment breakdown or home systems protection endorsement that may cover sudden mechanical or electrical breakdown of HVAC systems, water heaters, appliances and electrical panels, subject to a deductible and limits. It's usually inexpensive relative to a major repair. See what does equipment breakdown insurance cover.
Home warranties
A home warranty is a service contract, not insurance. It may cover repair or replacement of systems and appliances that fail from normal wear, with service fees, caps and exclusions. Read terms carefully: many limit HVAC payouts or exclude pre-existing conditions and improper maintenance. In California, home warranty companies are regulated by the Department of Insurance. See the California Department of Insurance.
Wildfire smoke and HVAC
After wildfire smoke, HVAC cleaning and filter replacement may be part of a smoke claim. See does homeowners insurance cover wildfire smoke damage.
Rentals
If you rent, the landlord is generally responsible for maintaining heating and repairing appliances the landlord provides. California law requires rental units to have adequate heating. See the courts' housing self-help resources.
What to do when your AC fails
- Find the cause. Get a written diagnosis from a licensed HVAC contractor.
- Check for covered perils like lightning, a fallen limb or theft.
- Check your endorsements and warranties.
- Photograph any damage.
- Contact your insurer promptly if a covered peril may be involved.
- Keep the old parts until the claim is settled.
Prevention
- Schedule annual maintenance
- Replace filters regularly
- Keep outdoor units clear of debris and vegetation
- Consider a cage or lock to deter copper theft
- Install a surge protector for HVAC equipment
Common scenarios
Your 15-year-old AC compressor fails during a heat wave. Mechanical breakdown from age. Not covered by homeowners. Equipment breakdown or a home warranty may help.
A storm drops a limb on your condenser. Falling object. Typically covered, minus the deductible.
Thieves strip copper from your outdoor unit. Theft and vandalism are typically covered.
Lightning strikes and the furnace control board fails. Lightning is generally covered.
Questions to ask your broker
- Is equipment breakdown coverage available on my policy?
- Does my policy cover surge damage to HVAC controls?
- What's the deductible for equipment breakdown claims?
Key terms
- Mechanical breakdown: failure of a system's moving or electrical parts, usually excluded by homeowners policies.
- Equipment breakdown endorsement: optional coverage for sudden mechanical or electrical failure.
- Home warranty: a service contract for repairs of systems and appliances.
- Covered peril: a cause of loss the policy covers, such as fire or theft.
Bottom line
Homeowners insurance is built for sudden events, not for systems that wear out. Plan for HVAC replacement as part of home maintenance, and look at equipment breakdown coverage or a carefully chosen home warranty to soften the cost of mechanical failures. When damage comes from a covered peril like lightning, a fallen limb or theft, your homeowners policy is the place to start.
Contact Alishahi Insurance or call (877) 711-4545. See homeowners insurance and HVAC contractor insurance.
Frequently asked questions
Does homeowners insurance cover AC breakdown?
Usually not. Breakdown from age, wear or mechanical failure is typically excluded.
When does homeowners insurance cover HVAC damage?
When a covered peril like fire, lightning, a fallen tree, vandalism or theft damages the unit.
What covers AC mechanical breakdown?
An equipment breakdown endorsement or a home warranty may help.
Is a home warranty insurance?
No. It's a service contract, though California home warranty companies are regulated by the Department of Insurance.
Is copper theft from my AC unit covered?
Theft and vandalism are typically covered, minus your deductible.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.