Does Homeowners Insurance Cover AC Units?

Short answerHomeowners insurance may cover an AC unit damaged by a covered event, such as fire, wind or hail, depending on your policy. It usually doesn't pay for an AC that wears out or breaks down. ISO's October 2000 sample form excludes wear and tear and mechanical breakdown. Check your policy and ask your state insurance department.

What this costs

Our national estimates, not quotes.
Option	Job	Low	High
Replace	AC Replacement	$3,800	$9,050

When it may apply

Policies pay for damage from covered perils, up to the limit. The Insurance Information Institute lists wind and hail as covered perils under the policy types it compares, and the NAIC says dwelling coverage extends to fixtures and built-in appliances. Whether that reaches your outdoor unit depends on your policy.

When it usually doesn't

The sample HO-3 form (ISO's October 2000 edition) excludes wear and tear, deterioration, and mechanical breakdown. Texas's insurance department says a policy won't pay for wear and tear, and California's lists it among items generally not covered. So an AC that simply fails from age is usually a repair or replacement you pay for.

Water from the AC

The sample form covers accidental discharge from an air conditioning system, but not loss to the system itself. So water damage to a ceiling may be treated differently from the AC.

Other coverage

California's department notes that home protection contracts, which aren't insurance, can cover repairs to major appliances and systems and, in some cases or for added fees, air conditioning units. Ask about what's excluded, and ask your insurer whether any add-on for equipment breakdown is available to you.

Check your policy

Read your own policy, including any endorsements, and ask your agent or insurer how it applies to your situation. Your state insurance department can answer questions about coverage and take complaints. This page describes general patterns, not what your policy will pay.

Common questions

Does homeowners insurance cover AC replacement?

Only if a covered event caused the damage, and subject to your deductible and policy terms. Age or breakdown alone usually isn't covered.

What if lightning or a power surge damaged my AC?

Lightning is a commonly named peril. The sample form treats power surges separately and excludes damage to electronic components under its personal-property list. Ask your insurer how your policy treats your AC.