Summer is here. As temperatures rise, air-conditioning usage increases. If your air-conditioning unit is damaged due to a storm, homeowners insurance will help you. However, damage to improper maintenance or normal wear and tear is not covered.
Coverage amounts will vary depending on whether it's a central air-conditioning unit or window unit.
Does homeowners insurance cover air-conditioning units?
Homeowners insurance covers your dwelling and personal property from damage, which is often referred to as insurance perils. Damage to your air-conditioning unit will be covered if it's the result of a covered peril.
A peril is an event that may damage your home or belongings, like theft, fire, or a storm. The type of peril coverage you have depends on the type of homeowners insurance you purchased. Common insurance perils include fire, lightning, theft, ice, snow, sleet, smoke, vandalism, and freezing.
Floods, earthquakes, government seizures, mudslides, ordinance updates, sewer backups, and sinkholes are all perils that won't be covered by homeowners insurance, according to Hippo Insurance. Those will require add-on coverage using a rider policy.
If a tree falls on your air-conditioning unit, it will likely be covered. But damage from wear and tear or lack of maintenance is usually not covered.
| Coverage | Included with homeowners insurance? |
| Dwelling/Structure | Yes |
| Personal liability | Yes |
| Personal belongings | Yes |
| Loss of Use (additional living expenses) | Yes |
| High-end electronics/special jewelry | Limited, requires add-on* |
| Equipment breakdown | Yes |
| Electrical outage | Yes* |
| Service lines | Yes* |
| Cyber liability | Yes* |
| Water damage | Yes |
| Flood | No** |
| Wind or hail | Yes, but not high winds*** |
| Earthquake | No* |
| Pets | Yes* |
*Available as add-on coverage if not part of policy
**Flood insurance is available through the NFIP and approved insurers
***If you live in hurricane or tornado areas, additional windstorm rider may be required
Coverage also depends on the type of AC unit
There are three components to homeowners insurance: dwelling coverage, personal property coverage, and personal liability coverage.
If something happens to your home, you can have it repaired or rebuilt under dwelling coverage. Your dwelling consists of your home and any other structures on the property, like a garage or shed. Personal property coverage includes your furnishings and electronics. Liability coverage protects you if someone is injured on your property and sues for damages.
Most homeowners insurance carriers consider central air conditioning units as "other structures" under dwelling coverage. However, window air conditioners are considered personal property.
This may vary depending on your homeowners insurance carrier, so it's best to talk to your agent to determine how your air conditioning unit is classified under your policy. It will impact the amount of coverage available to repair damage.
A home warranty is an option for repair and maintenance costs
If your air-conditioning unit isn't damaged due to an insurance peril, a home warranty contract may be an option to reduce maintenance and repair costs. Home warranties are service contracts to repair or replace items like your HVAC, AC, and water heater.
A home warranty can cost $350-$700 a year. If you just purchased your home, most likely your realtor will have recommendations for preferred companies in your location. Otherwise, you can get a home warranty from:
Ronda Lee is an associate editor for insurance at Personal Finance Insider covering life, auto, homeowners, and renters insurance for consumers. She is also a licensed attorney who practiced litigation and insurance defense.