Does homeowners insurance cover AC repair?

June 24, 2015 Guest Post

If you own your home, you know how costly it can be when things go wrong. Whether it’s a leak in the basement or a new stove, everything costs money to fix when you own your home. Fortunately, homeowner’s insurance covers much of the price of being a homeowner when things go wrong. But what about things like AC repair NYC homeowners sometimes require? Does homeowner’s insurance cover that?

The truthful answer is this: yes and no. Whether or not your homeowner’s insurance covers repairs to your AC system depends largely upon what precipitated the need for the repair. If your air conditioner is damaged because of a flood or other natural disaster, your home insurance will cover the repair or replacement costs. If, however, your air conditioner simply breaks down or requires some routine repairs, those costs won’t be covered under your insurance. Fortunately, there are other options for covering these costs that don’t involve you paying out of pocket.

 
When it comes to AC repair, there is a particular kind of insurance you can purchase to cover those costs. Known as major appliance insurance, this coverage includes all of the major appliances in one your home, including your refrigerator, washer and dryer, dishwasher and, of course, your air conditioner. If there is a problem with your air conditioner, all you would have to do is contact your insurance company. Generally, they offer a 24-hour hotline you can call for service (because heaven knows these problems never arise at convenient times!). The hotline will dispatch the technician to your home to assess the problem. This can be a very convenient perk when your find yourself without air conditioning on a hot and sticky summer night.

 
As with all insurance coverage, the amount you will be responsible to pay depends on several factors. First, it depends on the particular coverage covered under your policy. Does your policy cover 85 percent of the costs of repairs? 90 percent? Does it cover only certain services, but not emergency service calls? Find out exactly what coverage you would be getting before you sign on the dotted line. The amount you are responsible to pay out of pocket will also depend on the deductible you are required to pay on your policy. It may be possible to pay a higher premium in exchange for no deductible, so that when you have a problem that needs fixing, there is no out of pocket expenses on your part.

 
If you down want to go the appliance insurance route, there’s another solution to having to pay out of pocket when your air conditioning unit needs repairs. You can opt into an extended warranty on your air conditioner when you purchase it. That will ensure that you are covered for a longer period of time than the standard warranty covers. Although the extended warranty will cost you a few extra dollars out of pocket at the outset, if a problem arises during the life of the warranty the cost of the repair will almost certainly dramatically outweigh the cost of the extended warranty.

 
So, although there’s a good chance that your homeowner’s insurance won’t cover repairs to your air conditioning system, there are ways you can save on those potentially very costly repairs. What you will pay for appliance insurance as well as how long your extended warranty will be will depend largely on how new the unit is. Older units are more difficult to find parts to fit and they can require more time to diagnose a problem. Because of that, insurance on these units can cost more money. It may be more worth your money to invest in a new air conditioner rather than trying to insure an older one. Although a new unit will cost significantly more in the beginning, they will actually save you money over time because they are much less likely to break down.