Replacing a central air conditioner is not cheap. It costs an average of $3,500 to $4,000 to install a new unit in most homes, so naturally many people wonder if their homeowner's insurance will pick up the tab. The answer is it depends on the reason why the unit needs to be replaced. Here's information on when your homeowner's insurance policy will cover the cost of a new a/c and what you can do when it doesn't.

Only Insured for Disasters and Accidents

There are a few different levels of homeowner's insurance. Each level covers certain types of damage to the home, property, personal belongings, and appliances. If the damage to the appliance is caused by one of the covered disasters or unfortunate events, then the homeowner's insurance policy will pay for a new unit.

Some of the covered events include:

  • Fire
  • Lightning
  • Windstorms
  • Hail
  • Smoke
  • Vandalism
  • Falling objects
  • Explosions
  • Riot or civil commotion
  • Ice, snow, or sleet

What your homeowner's insurance doesn't cover, however, is damage caused by normal wear and tear. So if your air conditioner is destroyed by a tree branch falling on top of it, then your homeowner's insurance will pay for a new one. If the unit falls apart because it's old and rusty, then you will have to pay out of pocket to replace it.

Alternative Options for Paying for a New Air Conditioner

There are a few ways you can get your air conditioner replaced while minimizing the amount of money you have to pay. The first option is to purchase equipment coverage insurance before your air conditioner needs work. This is a type of supplementary insurance that specifically covers the repair or replacement cost of the appliances in your home if and when they break down.

Some insurance companies offer this extra policy when you sign up for your policy, so you should go through your paperwork to see if you already have it and simply forgot. If not, you can typically add it as a rider to your current policy. You can also purchase this type of insurance from a completely different insurer; however, you may get a discount if you buy it from your current provider.

Although warranties will pay for appliance repairs, they will usually only cover the cost of completely replacing the unit if there is some type of manufacturer's defect that renders the entire air conditioner unusable. However, it doesn't hurt to take a look at any warranties or extended warranties you may have to see if there is a replacement option and what the requirements for filing a claim are.

Other Ways to Minimize the Cost of Replacing an Air Conditioner

If it looks like you will have to pay out of pocket for your replacement air conditioner, there are a couple of ways you can save money on the machine:

  • Look for coupons, incentives and rebates offered by the manufacturer or retailer. You can do this by either visiting the special offers page on the Energy Star website or visiting the manufacturer's websites directly. An HVAC company can also tell you if there are any current deals available.
  • The state and federal government may offer tax credits or other incentives for purchasing certain types of appliances (e.g. geothermal heat pump). The Energy Star website typically has information about current federal tax incentives. However, you can learn about state programs by visiting the Database of State Incentives for Renewables and Efficiency.

If you're in the market for a new air conditioner, contact a central air conditioner company for assistance with picking out the right machine for your home and locating the best deals that will save you money. Check out websites like http://www.homesmartcolorado.com/ to get started.

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