Does a Home Warranty Cover HVAC?

Most home warranty companies cover HVAC systems, but not every plan will include HVAC repairs. To top it off, each home warranty has its own exclusions for HVAC systems, which means you’ll need to read coverage terms carefully before purchasing a plan.

Do all home warranties cover HVAC systems?

Although most home warranty companies offer plans with HVAC coverage, not every home warranty plan covers HVAC repairs. Plans that do cover HVAC systems tend to be more expensive because of the high cost of fixing or replacing an HVAC system, which means you’re likely to pay more for your monthly premium if you choose a plan with HVAC coverage.

Some home warranty companies split HVAC systems across multiple plans. For example, American Home Shield covers heating and air conditioning systems in all of its plans. However, First American Home Warranty only covers heating in its cheapest plan; you have to purchase the middle-tier plan to cover an air conditioning system.

What home warranties typically cover for HVAC systems

HVAC system coverage varies from company to company, but many home warranties cover the main components of permanent HVAC systems. These often include:

• Refrigerant replacement. 

Most have at least some exclusions, including certain types of HVAC systems. For example, a home warranty company might cover repairs for ducted central and installed wall air conditioning units but not window units. Likewise, a plan might state that it covers air conditioning unit components but exclude coverage for leaks, condensate pumps and coils.

Although a home warranty might exclude mismatched HVAC systems — where an air conditioning unit and furnace are different sizes or made by different manufacturers — some companies do cover mismatched HVAC systems.

Most home warranties won’t cover repairs if an HVAC system is still under the manufacturer warranty.

How much does a home warranty typically pay for HVAC repairs?

Home warranties typically limit how much they’ll pay for certain types of repairs, known as a coverage limit. How much a plan pays for HVAC system coverage depends on the home warranty provider and can range from $2,000 per system to $6,500 per system. This amount is for repairs and replacement if a system can’t be fixed.

Some companies do not cap their coverage for HVAC systems, but that doesn’t mean they’ll buy whichever system you want if they can’t repair your existing HVAC unit.

Will a home warranty replace an HVAC system?

Yes, home warranties typically state that they’ll replace an HVAC system if they can’t repair it, but that’s not a guarantee that you’ll get a new system for free.

Some home warranties depreciate the value of an HVAC system, usually based on its age. If your home warranty does this, it’s unlikely that the company will pay you enough to replace your HVAC system with a new model that’s similar to what you already have. In other words, even if a home warranty agrees to replace your HVAC unit, it might not pay enough to cover the full replacement cost.

Some plans might also exclude the cost of certain installation steps as well, such as the cost of a crane for roof-mounted systems.

Will a home warranty maintain your HVAC system?

Many home warranties require you to perform routine maintenance on your HVAC system, and some will deny a repair if you haven’t properly maintained your HVAC system. If you’re worried about maintaining your system, you can look at home warranties that cover repairs despite insufficient maintenance, though they’re not as common.

Some home warranty companies include annual or seasonal HVAC tune-ups or offer them as add-on services for an additional fee. A tune-up is considered preventative maintenance to check that your HVAC system is performing efficiently and usually includes inspecting filters, checking refrigerant levels, cleaning components, calibrating the thermostat and more. You might have to pay a service fee for each tune-up, so consider this cost when budgeting for a home warranty.

Do home warranties cover old HVAC units?

Some home warranty companies advertise that they cover HVAC systems regardless of how old the units are. If you are buying a home warranty for an older HVAC system, though, read the contract exclusions carefully to avoid denied claims for issues that might already exist with your HVAC unit.