Handling AC Unit Claims: What You Need to Know
Home insurance covers damage to both the interior and exterior of your home. Depending on the type of unit you have, your AC may be classified as part of the interior structure of your home or your personal property, and you may be able to file a claim for an AC unit on home insurance.
When Is Your AC Unit Covered
Generally, home insurance covers AC units and heat pumps like the rest of your property. Any damage to your unit caused by a natural disaster or vandalism is covered. For example, if a fire or severe weather damages your AC unit, home insurance will cover the repairs or a replacement. If a tree falls on your unit and destroys it, home insurance policies generally cover such scenarios. If your AC unit is stolen or vandalized, you need to contact the police to report the crime. However, it is also essential to understand that accidental damage to your unit may not be covered. Also, it is expected that with time, your AC unit may start to wear down, so you will likely not be covered if your unit stops working after 15 years. Speak with your agent if you have any specific questions about your home insurance policy.
What to Do If Your AC Unit Isn’t Covered
While researching home insurance in Banning, CA, be aware that your AC unit isn’t covered if you fail to perform regular maintenance on it. If you don’t take care of your air conditioner, you will be held responsible for replacing the unit if it breaks down. In most home insurance policies, AC units are covered under open perils. That means the damage is covered unless there are specific exclusions.
Pay attention to possible water damage. While AC units aren’t prone to water damage, they produce water as part of their normal function. Any resulting damage will not be covered if the water leaks into your home because it will be seen as a maintenance issue. Check your AC unit to make sure that it is draining correctly.
There is a difference between central AC units and window AC units. Central units are classified as part of the structure of your home. Window AC units are viewed as personal property. Check your policy to see how the difference may impact your policy for potential claims.
A home warranty can help offset the repair costs of your AC unit and other appliances. However, make sure that you look over the terms of the contract before signing up.
Filing a Claim to Fix Your AC Unit
If a covered peril damages your AC, think carefully before filing a claim, as doing so will not benefit you in the long run. First, gather an estimate of how much it will cost to repair the unit, and then factor in your home insurance deductible. If the cost to repair or replace your AC unit is the same as your policy’s deductible, then it may make more sense financially to pay out of pocket, as filing a claim may cause your home insurance premium to rise.
If you plan to move forward with filing a claim, take pictures of the damage to your AC unit and write down the model and serial number. Then, contact your insurer so that they can check to make sure that a covered peril caused the damage. An adjuster will come to inspect the unit to see how much money your insurer needs to pay to fix the team. If your policy covers the replacement value, you will receive an amount equal to the unit’s worth when you first purchased it. If your policy covers the actual cash value, you will receive an amount based on the present-day value of the unit.
Once the claim is approved, you will receive half of the costs to cover the unit, with the other half paid off once the repair has been completed.