When facing a major HVAC repair or replacement, many homeowners wonder if their insurance policy or home warranty will cover the cost. The answer depends heavily on the root cause of the system failure.
Homeowners Insurance vs. Home Warranty
| Coverage Type | Homeowners Insurance | Home Warranty Contract |
|---|---|---|
| Covered Perils | Lightning, power surges, hail, falling trees, fires | Normal mechanical wear-and-tear, motor failure, bad capacitors |
| Exclusions | Old age, rust, lack of regular maintenance | Pre-existing conditions, unpermitted installations |
| Water Damage | Covers water damage to drywall/floors from sudden leaks | Usually excludes water damage restoration costs |