Does Homeowners Insurance Cover AC Units?

Standard homeowners insurance policies typically cover AC units. As long as the unit is damaged by a covered peril, you can file a claim.

Centralized AC systems are protected under your dwelling coverage, which is the part of your homeowners insurance that pays for damages to your house’s structure. Meanwhile, your personal property coverage — which protects your belongings — covers window-type or standalone AC units. While both coverages provide protection from various perils, they typically don’t cover normal wear and tear.

Your AC unit is protected from most perils by either your policy’s dwelling or personal property coverage. Covered instances include:

• Your AC unit is destroyed by lightning or fire
• A falling tree damages your AC unit
• Your centralized AC system is vandalized

Centralized AC systems are covered by dwelling coverage, which normally protects you against most damages except those expressly excluded, such as war, earthquake or flooding. Meanwhile, personal property coverage insures standalone AC units. This kind of coverage offers protections from specifically-described perils, such as fire, wind, vandalism, theft and more.

While dwelling and personal property coverage often have overlapping covered perils, personal property coverage tends to have a narrower scope.

Your AC unit is not covered if it malfunctioned due to normal wear and tear, maintenance issues or mechanical breakdown from improper installation. If the insurer can prove your negligence caused the damages, your claim will be denied. Additionally, damages from earthquakes and floods are usually not covered by a standard homeowners insurance policy.

Although your homeowners insurance covers your AC unit, you should protect it as much as possible from getting damaged. Whether you have a centralized or standalone model, your AC will have components located inside and outside your home. Due to their exposure, outdoor parts will require more attention.

You can buy homeowners insurance from most major insurance providers, such as State Farm, Progressive and GEICO. Smaller insurance companies, like Hippo and Lemonade also offer homeowners insurance.

MoneyGeek recommends that you shop around and compare offers from different companies to find the best homeowners insurance for your needs. On average, homeowners insurance costs $175 per month, but that amount can vary depending on your belongings. You can use MoneyGeek’s personal property calculator to estimate how much coverage you need.