Is my AC unit covered under my homeowner’s insurance policy?

If you have home insurance in Mesa AZ or surrounding areas like Gilbert AZ, Chandler AZ or Scottsdale AZ, you might be wondering if your home insurance policy will cover your AC unit if it goes out in the summertime.

Although it would be nice if a home insurance policy could cover absolutely everything that could ever go wrong with your home, but that is not realistic. If a home insurance policy did cover everything, it would be unaffordable. So what is the difference between home insurance and home warranty policies.

Simply put, insurance is purchased to cover the sudden and unexpected losses to your home. These types of losses come from certain perils such as broken pipes, wind damage, hail damage, storm damage, vandalism, etc. Insurance is not meant to cover normal wear and tear or maintenance issues.

As an example, during the major hail storm even which occurred 10/05/2010 many people homes were damaged due to the hail along with their AC units. (Watch this youtube video of the storm Hail Storm Youtube Video) This type of sudden and unexpected loss from a hail storm was a covered event and the insurance industry as a whole paid out billions of dollars in claims.

Contrast that with an AC unit that is 20 years old and just breaks down because it is old. Insurance would not pay for this kind of loss because it is maintenance or wear and tear problem.

More and more home insurance companies are however beginning to offer mechanical breakdown or equipment coverage under their policies for an additional premium. If this is something you are interested in, be sure and talk to your agent about this type of coverage.

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