Does a home warranty cover HVAC? What to know

Sharon Wu, Roxanne Downer and Allaire Conte, CNN Underscored
·7 min read

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Jacob Wackerhausen/iStockphoto
Jacob Wackerhausen/iStockphoto

HVAC issues happen. When they do, repairing or replacing a broken air conditioner or furnace unit can cost thousands, and home insurance won’t cover wear and tear issues. This leaves many homeowners wondering, “Does home warranty cover HVAC?”

The good news is yes — a home warranty can ease your financial burden by covering all or part of the cost to repair a busted HVAC system. Let’s explore how home warranties can help you save money when your AC or furnace dies at the worst time.

How does a home warranty for HVAC work?

Though warranties cover more than heating and cooling units, HVAC systems are a top priority for most people. The best home warranties financially protect homeowners from costly emergency HVAC repairs or replacements. The way it works is simple — you pay the warranty company an annual fee. Then, you file a claim and pay a small service fee if your air conditioner, furnace or other HVAC components break. From there, the warranty company pays for approved parts and labor and sends out a technician.

What HVAC issues are covered by a home warranty?

Home warranties cover repairs and replacements due to normal wear and tear on HVAC components.

Covered systems and parts may include:

  • Air conditioning units

  • Ductwork

  • Electrical components

  • Furnaces

  • Heat pumps

  • Sealed refrigerant systems

  • Thermostats

Covered repairs and replacements may involve:

  • Coil leaks or damage

  • Compressor failure

  • Electrical control failure

  • Low refrigerant charge

  • Motor or blower malfunctions

  • Thermostat malfunctions

What HVAC issues aren’t covered by a home warranty?

Home warranties have exclusions and limitations on HVAC coverage. Knowing your exclusions allows for intelligent planning. Review your policy for gaps in HVAC protection so there are no surprises later.

Some components and issues typically not covered are:

  • Ductwork cleaning

  • Gas lines

  • Lack of maintenance

  • Preexisting conditions

  • Removal of hazardous materials

  • Upgrades to meet codes or laws

Home warranties may also not cover:

  • Costs above coverage limits

  • Damage from weather changes

  • Routine inspections or maintenance

  • Secondary damage from an HVAC breakdown

HVAC maintenance and home warranties

Regular HVAC maintenance is crucial for continued coverage under a home warranty. Most companies require yearly check-ups and preventive maintenance on units. Without maintenance records showing proper tuning and care, warranties won’t cover issues that could have been avoided.

As the owner of Denver-based contracting company Earth Saving Solutions, Chris Hock, explains, “A well-maintained HVAC system with a clean filter saves homeowners money on energy and repairs while ensuring indoor comfort.”

It’s important to note that home warranties rarely cover regular maintenance costs — that’s still the homeowner’s responsibility. However, staying on top of maintenance keeps your system running well and maximizes warranty protections if unavoidable breakdowns occur. Some companies like American Home Shield make this easy by providing one free HVAC tune-up each year (for ShieldPlatinum plan holders).

Costs of a home warranty for HVAC

While home warranties have fees, they can save thousands compared to paying 100% out-of-pocket for HVAC issues.

According to Home Warranty of America, Landmark Home Warranty and Rocket Mortgage, average yearly enrollment fees range from $300 to $600 depending on the provider, location and coverage details. The typical service call fee runs from $75 to $150 per HVAC visit. You may also have some non-covered repair charges. These vary depending on your issue(s).

Now, let’s compare that to paying for repairs and replacements without coverage:

HVAC repair price ranges

HVAC replacement price ranges

Exact costs depend on the specific issue(s) you’re experiencing with your unit, the unit itself, your location and more. But as you can see, warranties can save you thousands on major HVAC breakdowns. Their fee structures make costs more manageable in the long run.

Is a home warranty for HVAC worth it?

A home warranty can provide financial peace of mind for expensive emergency HVAC repairs and replacements. Before enrolling, weigh the pros and cons against your budget and needs.

First, consider your HVAC system’s age. According to Hock, “Furnaces last about 20 years, while condensers may have a shorter life span of 15 years.” Breakdowns become more common as they reach this age range. So, a home warranty can be worth the cost if your system is getting old.

Also, factor in your savings and risk tolerance. Do you want reduced stress from unexpected repair bills? If so, a warranty may make sense regardless of your HVAC’s age.

Finally, compare comprehensive coverage against any limitations and exclusions. Analyze whether potential fees outweigh the convenience of coverage. This helps you determine if a home warranty provides value for your unique situation.

  • Can prevent major financial hits

  • Solid coverage for most main systems

  • Offsets repair and replacement costs

  • Offers peace of mind protection

Cons

  • The claims process can be tedious

  • Some limitations may apply

  • May not cover the entire cost for all issues

  • Yearly fees and service charges apply

How to choose the right home warranty for HVAC

Before picking a home warranty, make a list of your top priorities for HVAC coverage based on your systems, location and repair history.

These could include things like:

  • Central AC coverage

  • Coverage caps for full unit replacements

  • Fast emergency service response times

  • Furnace coverage

  • No exclusions for compressor issues

Cross-reference your priority “must-cover” items against policy details from high-rated home warranty companies in your state. This comparison helps you optimize the level of protection, responsiveness, fees and convenience that best meets your home needs.

Air Conditioner Lab’s owner, Josh Mitchell, confirms assessing four key factors when choosing the right home warranty (consider asking companies the following questions during your research process):

  • Cost: What are the annual and service call fees? Compare the fees across your top contenders while considering the savings from covered repairs versus charges.

  • Coverage: Review HVAC repair and replacement coverage under each warranty option. What’s included and excluded in coverage? Are there cap limits on payouts? If so, what are they?

  • Reputation: What are the companies’ ratings like? What are customers saying about their service? Do they use high-quality parts?

  • Ease of use: Do they respond to issues promptly? How simple or complicated is their claims process? Will they allow you to choose your service technician?

How to claim HVAC coverage under your home warranty

Claiming HVAC coverage is straightforward with most home warranty companies:

  • Contact your warranty provider when an HVAC issue arises. Call its 24/7 service line or file a claim online.

  • Pay the company’s diagnostics visit fee, usually anywhere from $75 to $150. This will cover a technician coming out to assess the problem.

  • Wait as the warranty company assigns an authorized HVAC technician from its network to inspect your system. This arranged visit should happen quickly, often within 48 hours.

  • Review the technician’s quote for repairs. Understand what your warranty covers versus any uncovered costs you must pay, outlined on your policy’s coverage terms.

  • Allow the warranty company and technician to coordinate repairs or replacements. They handle payment and scheduling directly with the technician.

The claims process for HVAC issues may vary slightly between home warranty providers. But most will follow similar steps to get your HVAC up and running well again.

Bottom line

Eventually, air conditioners and furnaces will break down. When that happens, home warranties provide financial protection that regular homeowners insurance won’t. Consider the yearly fees as safeguarding yourself from massive repair and replacement bills in the future.

As you review home warranty options, examine what HVAC systems and issues each option includes or excludes. Consider the age, average lifespan and repair history of your home units. Though not a perfect solution for every homeowner, home warranties can offer peace of mind against four-figure HVAC emergency bills down the road.

Note: The prices above reflect the retailers' listed price at the time of publication.

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