Does having central air conditioning do anything for you and your home other than helping insure you can stay cool in the hot summer temps?
Here are some of the most important questions to ask yourself when it comes to central air conditioning and home insurance.
IS HAVING CENTRAL AIR CONDITIONING REQUIRED TO BE COVERED BY HOME INSURANCE?
No. You do not need central air conditioning to qualify for home insurance in Ontario (or most other places).
A home with no A/C, or with window units or portable systems, can still be insured.
CAN CENTRAL AIR CONDITIONING AFFECT MY HOME INSURANCE PREMIUMS?
Yes. Central air conditioning can affect your home insurance premiums, but usually only slightly, and the impact is usually positive or neutral.
Having well-maintained central air conditioning can potentially lower your insurance premiums because better control of interior temperatures can help reduce the risk of mould and humidity damage, something your insurance company may reward.
If your A/C is old or poorly maintained, this could increase the risk of water damage from leaks or electrical issues from outdated wiring, something your insurance company may see as a risk.
From a loss prevention perspective, we may include some required recommendations related to upgrading or repairing your central A/C within your free home inspection report.
ARE THERE HOME INSURANCE DISCOUNTS AVAILABLE FOR NEW ENERGY-EFFICIENT A/C SYSTEMS?
While we here at Erie Mutual Insurance offer many ways to save money on your home insurance including our 25% discount for first time home buyers we offer no discounts related to central air conditioning.
WILL MY HOME INSURANCE COVER DAMAGE CAUSED BY CENTRAL AIR CONDITIONING?
It depends on how the damage occurred.
WATER DAMAGE / LEAK: Your home insurance peril for water damage will cover damage given the occurrence is sudden and accidental (a continuous leak for a prolonged period may be denied).
MOULD: Since mold growth is typically the result of prolonged negligence, it is not covered.
FIRE: Fire damage caused by a malfunctioning A/C would most definitely be covered.
SHOULD I INFORM MY INSURER IF I’VE REPLACED OR UPGRADED MY CENTRAL AIR CONDITIONING SYSTEM?
Yes. It’s always wise to inform your insurer of any home upgrades or renovations, including letting them know if you’ve installed a new A/C and/or furnace.
Upgrades to HVAC systems/heating and plumbing (and your roof) are top of mind to your insurer.
DOES HAVING CENTRAL AIR CONDITIONING INCREASE MY HOME’S REPLACEMENT VALUE IN THE EVENT OF A TOTAL LOSS CLAIM?
Yes. Having central air conditioning installed in your home can increase your home’s replacement value in the event of a total loss claim.
Since the replacement value of your home is the estimated cost to rebuild your home with similar materials and systems that were lost, including built-in systems like central A/C, whether or not you have air conditioning installed can have a relatively marginal impact on replacement value.
Erie Mutual Insurance proudly serves the commercial insurance, farm insurance, home insurance and auto insurance needs of members throughout Southern Ontario including Haldimand, Niagara and Hamilton.
Please don’t hesitate to contact us with any questions you may have about this or any other topic related to your insurance.
