Does Homeowners Insurance Cover HVAC? Hotaling Insurance Services

Last summer, one of our clients called in a panic. His AC unit had just died—in the middle of July, temperatures hitting 98 degrees. The HVAC guy quoted him $8,500 for a full replacement. His first question? “Will my homeowners insurance cover this?” It’s a question we hear constantly. And honestly, the answer isn’t as straightforward as most people want it to be.

The short version: Your homeowners insurance covers HVAC damage if something sudden and unexpected happens—like a fire, a storm, or someone stealing your outdoor unit. But if your system just… stops working because it’s old? You’re on your own.

Let us break this down in plain English, because insurance companies sure won’t.

How Insurance Actually Treats Your HVAC System

This is where it gets a bit technical, but stick with us because it matters.
If you’ve got central HVAC—the kind with ductwork running through your walls—that’s considered part of your home’s structure.

It falls under “dwelling coverage” or “Coverage A.” That’s actually good news because it’s protected from pretty much anything except what’s specifically excluded.

But if you’ve got a window AC unit, that’s treated as personal property—same category as your TV or couch. It’s covered under “Coverage C” (personal property), which is more limited.
Why does this matter? If lightning strikes your house and you have central AC, you’re almost definitely covered. Window unit? Maybe, depending on your policy language.
See what we mean about it not being straightforward?

When Your Insurance Will Actually Pay

Fire Damage (Pretty Much Always Covered)

House fire? Insurance pays. Doesn’t matter if the fire started in your HVAC system or next door.
We worked with a client last year whose furnace had an electrical malfunction that started a small fire. Fire department caught it early, but the furnace was toast and smoke got into the ductwork. Insurance covered everything—new furnace, duct cleaning, the works. No fight, no hassle.

But here’s the catch (because there’s always a catch): If you were grossly negligent—like you ignored multiple warnings about a dangerous furnace—the insurance company might wiggle out of paying.

Storm Damage (Usually Covered)

Hail damage to your outdoor unit? Covered. We see this constantly in Texas. Good hailstorm will dent those metal fins, and insurance pays.
Lightning strikes? Definitely covered. Lightning will fry electrical components faster than you can say “circuit board.” We’ve seen claims run $3,000-$6,000 just for the electrical damage.
Fallen trees? This is where it gets interesting. Healthy tree falls during a storm? You’re golden. But if the tree was dead and you knew about it? Insurance company’s going to argue you should’ve removed it.

One of our clients learned this the hard way. Had a dying oak tree he kept meaning to deal with. Storm came through, tree fell, crushed the AC unit. Insurance adjuster took one look: “This tree’s been dead for months.” Claim denied. Painful lesson.

What won’t be covered: floods and earthquakes. Those require separate policies. A burst pipe in your house? Covered. Your neighborhood flooding? Not covered without flood insurance.

Theft and Vandalism

AC unit theft is more common than you’d think. Copper prices go up, outdoor units start disappearing. We’ve worked with three clients in the past two years who had their units stolen.
Insurance covers theft—but you have to file a police report first. Don’t skip that step.

Does Homeowners Insurance Cover HVAC Ductwork?

Short answer: Yes, but…
(You knew there was a “but” coming, right?)
Ductwork is part of your home’s structure, so it’s covered if something sudden and covered happens to it.
When it IS covered:

• Fire damage (we’ve seen claims where insurance paid $7,500 to replace smoke-damaged ductwork)
• Storm damage (tree crushed roof and ducts underneath)
• Sudden water damage (pipe burst, water soaked ductwork insulation)

When it’s NOT covered:

• Normal wear and tear (25-year-old ducts falling apart? That’s on you)
• Mold from poor maintenance (never change filters = not covered)
• Pest damage (mice chewing ducts = excluded)
• Routine duct cleaning (that’s maintenance, like changing your oil)

What Insurance Definitely Won’t Cover

1. Your System Getting Old and Dying

HVAC systems last 10-15 years. When yours reaches the end and stops working, that’s not an insurance event—that’s life.
We hear this all the time: “My 18-year-old AC just stopped working, will insurance cover it?” No. That’s like calling your car insurance because your 200,000-mile car finally gave out.

2. Maintenance Issues You Ignored

Never changed your air filter? Skipped annual maintenance for three years? When your system fails, insurance will check your maintenance history.
Real example: A client filed a claim for a cracked heat exchanger. Insurance inspector found the furnace so dirty it clearly hadn’t been serviced in years. Filters were black, everything covered in dust. Claim denied. Inspector’s report literally said: “Failure due to lack of basic maintenance.”
Pro tip: Keep maintenance records. Receipts, service records, everything. When you file a claim, this documentation will save you.

3. Flood and Earthquake Damage

Standard policies explicitly exclude these. You need separate coverage.

Home Insurance vs. Home Warranty (People Mix This Up Constantly)

Let us clear this up:

Insurance covers disasters. Sudden, unexpected damage.
Home warranties cover breakdowns. Age-related failures, mechanical breakdowns.
If your HVAC is 8+ years old, consider having both. Insurance covers if a tree falls on your unit. Warranty covers when your 12-year-old furnace finally gives up from old age.

How to File an HVAC Claim (The Right Way)

If disaster strikes, here’s what to do:

Step 1: Document Everything

Take photos. Lots of them. The damaged equipment, model numbers, serial numbers, surrounding area. Also write down date, time, and what happened.
Real example: A client’s tree fell on their AC. First question from the broker: “Did you take photos?” They hadn’t. By next day, a neighbor helped move the branches. Insurance adjuster couldn’t see clear evidence. Turned into a big fight. Could’ve been avoided with immediate photos.

Step 2: Know Your Deductible

Most deductibles are $1,000-$2,500. If your repair costs $1,200 and your deductible is $1,000, you’re only getting $200 from insurance. Might not be worth the hassle and potential premium increase.

Rule of thumb: Only file if repair cost is at least $500 MORE than your deductible.

Step 3: File Promptly

Call your insurance company immediately. You’ll need:

• Policy number
• Date of loss
• Description of damage
• Photos and documentation

Step 4: Meet the Adjuster

Be there when they inspect. Point out all damage. Show your photos. Have maintenance records ready.
The adjuster will determine if it’s covered and estimate repair costs.

Step 5: Get Repairs Done

You typically pay upfront, then get reimbursed. Keep all receipts.

What HVAC Replacement Actually Costs

These are 2025 averages. In Houston, a 3-ton AC runs $5,500-$8,500 installed. In New York, same unit might be $7,000-$11,000 because labor costs more.

Protect Your System and Your Coverage

The best claim is the one you never file. Here’s how:
Maintain your system:

• Change filters every 1-3 months
• Schedule annual professional maintenance
• Address small problems immediately
• Keep records of everything

Protect your outdoor unit:

• Keep vegetation 2 feet away
• Secure it to concrete pad
• Clear debris regularly

Know the warning signs:

• Strange noises (grinding, squealing, banging)
• Reduced airflow
• Higher energy bills
• Inconsistent temperatures

Don’t ignore these. A $200 repair today prevents a $5,000 failure tomorrow.

Real Questions People Ask Us

“My AC is 18 years old and stopped working. Will insurance cover replacement?”
No. Age-related failure isn’t covered. Your system lived a full life. This is normal homeowner responsibility, not an insurance event.
“Can I claim my AC failed because of the heat wave?”
Probably not. If your AC couldn’t keep up with heat, that’s a capacity issue, not an insurable event. However, if extreme heat caused a power surge that damaged your system, that might be covered—you’d need an electrician to document it.
“My neighbor’s insurance covered their HVAC, why won’t mine?”
Different policies cover different things. Your neighbor might have different coverage limits, additional endorsements, better maintenance records, or different policy language. Read YOUR policy.
“Should I get a home warranty or stick with insurance?”
If your HVAC is 8+ years old, consider having both. They serve different purposes.

Bottom Line: What You Need to Remember

Insurance WILL cover:

• Fire or smoke damage
• Storm damage (hail, wind, lightning, fallen trees)
• Theft or vandalism
• Sudden, unexpected damage
• If you’ve maintained your system properly

Insurance WON’T cover:

• Age-related failures
• Neglected maintenance
• Flooding or earthquakes (without special coverage)
• Cosmetic damage
• Poor installation

Remember:

• Keep maintenance records
• Document your system with photos
• Read your policy
• Only file claims significantly over your deductible
• When in doubt, call a professional

Look, we’ve been helping homeowners navigate insurance policies for over 30 years, and we still see policies we have to read three times to understand. If you’re confused about whether your damage is covered, or you’re not sure what your policy actually says, reach out.

We’ll review your policy, explain what you actually have, and connect you with one of our licensed brokers who can help you figure out if filing makes sense. Sometimes it does, sometimes it doesn’t—we’ll give you an honest answer either way.

Get a Free Policy Review

About Hotaling Insurance Services
The Hotaling Insurance team has been helping homeowners understand their coverage for over 30 years. Our licensed brokers have worked with thousands of HVAC insurance claims and know the ins and outs of what’s covered, what’s not, and how to navigate the claim process. Our goal is to make insurance less confusing and help you actually use the coverage you’re paying for.

Reviewed by: Hotaling Insurance Services Team
Review Date: December 9, 2025

Disclaimer: This article is for informational purposes only and does not constitute insurance advice or a guarantee of coverage. Coverage varies by policy, insurer, and individual circumstances. For specific coverage questions, please consult with a licensed insurance professional or review your policy documents.