Air Conditioner Insurance vs. a Home Warranty: What’s the Right Choice?

Imagine you’re sitting in your home during the peak of summer, keeping yourself comfortable inside and away from heat, when all of a sudden, your air conditioner breaks. What do you do? You might initially tinker around with the unit yourself, but what if you’re unable to fix the problem soon?

Your homeowner’s insurance covers air conditioner repair and replacement under some extreme cases like natural disaster, but it likely won’t extend to issues that come as a result of normal wear and tear. You might be able to opt in for “repair insurance” in order to be covered for repair services at an extra cost per month.

Air conditioner insurance can be expensive and impractical as an add-on to your homeowner’s insurance. If you’re looking for a way to cover your air conditioner without dealing with the complications and hassle of repair insurance, a home warranty is a great alternative.

Repairing your air conditioning unit can cost you a lot of money. The great thing about having a home warranty is that it provides protection for your home’s essential appliances, including your air conditioner. With Choice Home Warranty, you’ll only have to pay a small service fee for covered air conditioning repairs and replacements.*

This guide will walk you through the specifics of air conditioner warranties, why you might need one and how you can get your unit repaired or replaced quickly and efficiently with Choice Home Warranty.*

When you’re ready to get your free quote from Choice Home Warranty, fill out the form or call (732) 907-4902.

Why Do I Need an Air Conditioner Warranty?

The next, or first, time your air conditioning unit breaks down, you’ll certainly want to get it fixed as quickly and efficiently as possible. A home warranty plan that covers air conditioner repair and replacement can help return your home to comfort.*

There are a few more reasons you might need a HVAC system warranty plan through a home warranty.

Save Money

Having to replace an air conditioner doesn’t just make your home uncomfortable and hot. It can also be a massive financial burden for homeowners who have to pay for installation costs and labor. The few hundred dollars spent on a home warranty and the service fee simply pales in comparison to what it might cost you to replace an air conditioner without a warranty. According to Home Advisor, the cost to replace a central air conditioner is approximately $5,000, but that can quickly increase depending on the brand of the unit, the labor, and the difficulty of the project. Average installation costs can run you between $3,757 and $7,250.

Save Time

If your air conditioning unit breaks down, repairing or replacing it yourself can be overwhelming. If you don’t consider yourself “handy,” trying to install a new unit or replace an old one can be a tall task. When you submit a claim to Choice Home Warranty, we will dispatch one of our pre-screened service providers to come and diagnose the unit, ensuring your home and your air conditioning unit are always in good hands when you request service.

Save Yourself the Stress

Everything works until it doesn’t, including your air conditioner. Just because you think of it as a reliable part of your home doesn’t mean it’s not susceptible to damage or breakage. If that happens when you don’t have a home warranty, you’ll be forced to shell out a substantial sum of money to get it fixed or replaced. Having a home warranty that covers your air conditioner means you can live your life with peace of mind knowing that no matter if or when your unit breaks down, we will be there to help.

Is Your AC Unit Covered by Choice Home Warranty?

Choice Home Warranty offers two warranty plans: the Basic Plan and the Total Plan. Air conditioning units are not covered in the Basic Plan, but they are covered in the Total Plan.

Air conditioners are pricey to replace. With Choice Home Warranty’s Total Plan, you can ensure the following:

  • Up to two AC units are covered.
  • Ducted electrical central air conditioning systems are covered.
  • Ducted electrical wall air conditioning units are covered.
  • Parts and components below 13 SEER are covered, with the exception of cooling and pump pads, filters, and window units.

When your air conditioning unit breaks down, all you have to do is call the Choice Home Warranty claims department or submit a claim online to begin the process of getting your unit diagnosed and repaired. We will send one of our service providers to your home and inspect the damage caused to your air conditioning unit. All you’ll have to pay is a small trade service fee for the claim directly to the technician. The technician will then further inspect the unit and take the necessary steps to repair the covered HVAC unit. Soon enough, you’ll have your air conditioning unit up and working again.

What Exactly is Covered Under the Warranty? Am I Covered for All Damage?

With Choice Home Warranty, your air conditioner is covered under your home warranty with the Total Plan. But what does this mean? How is it different from standard homeowners insurance? We can break down a few instances in which you are most likely to be covered, and in which you might not be.

When You’ll Likely Be Covered By Homeowner’s Insurance

  • Mother Nature—Generally, your homeowner’s insurance covers repair and replacement in the event that a weather event or other isolated incident from nature breaks or destroys your unit. If you come home to find that a tree fell on your house and crushed a major part of your air conditioning unit, you can usually assume you’ll be covered for a replacement or repair, given that tree fall damage is typically unavoidable. Similarly, if lightning strikes your house and fries the air conditioning unit irreparably, you’ll likely be covered for a service repair or replacement under your homeowner’s insurance plan.
  • Calamity—While not all unforeseen events are covered, there are some that your home insurance will typically cover. In the event that a fire damages or breaks your air conditioning unit, you will usually be covered through insurance claims.

When You’ll Be Covered By a Home Warranty, But Not Homeowner’s Insurance

But what do you do if your trusted air conditioning unit simply breaks down after 10 years of reliable output? Your homeowner’s insurance won’t cover it. Unfortunately, many cases of regular wear and tear of your air conditioning unit might not be covered under your home insurance. If your air conditioning unit breaks down after years of use, and not as a result of natural damage or disaster, you’ll likely have to get it replaced without insurance coverage. Additionally, water damage caused by your air conditioner will not usually be covered by homeowners insurance. Thankfully, if you have a warranty from Choice Home Warranty, normal wear and tear damage is covered, and you’ll be able to get your unit fixed quickly.**

Why Choice Home Warranty?

Home warranties with Choice Home Warranty are available to all homeowners. First-time home buyers, sellers and existing homeowners are encouraged to invest in the protection offered by Choice Home Warranty. Even homeowners with older homes or aged appliances and systems can benefit from Choice Home Warranty’s service contract coverage. Choice Home Warranty provides home warranty service contracts for single family homes, multiple units, condos and mobile and manufactured homes.

Here are some benefits of getting a home warranty with Choice Home Warranty:

Peace of mind

Purchasing a home warranty is a smart move for every homeowner. It might be possible to go an entire year without needing any home repairs and not using your warranty at all, it’s certainly not likely. A home warranty with Choice Home Warranty lets you live with the peace of mind that even if your air conditioning unit does break down, a covered repair or replacement isn’t far away.**

Remove the guesswork

If your unit breaks down in the middle of the summer, you might find yourself hurrying to find a repair company that can do the job quickly, and do it correctly the first time. With a Choice Home Warranty plan, you can file a claim online or by phone and you’ll be sent someone from our network of professional, screened and trusted specialists, so you can be sure the work you’re getting is top quality.

Save money

It often seems that everything breaks down just when money starts to get tight. Without a home warranty, you could end up having to shell out hundreds to thousands of dollars either repairing or replacing your air conditioning unit. The average cost of an annual warranty with Choice Home Warranty pales in comparison to repair or replacement costs. Even just a single repair job in a year can end up costing more than an entire home warranty with Choice Home Warranty.

Consider purchasing a home warranty with Choice Home Warranty to protect your air conditioning unit. Get a free quote or call us today at (732) 907-4902.

Frequently Asked Questions

Would My Broken Air Conditioner Be Covered Under My Home Insurance?

Homeowners insurance typically covers damage caused by calamity and mother nature, but not accidents like spilling a drink into your unit or normal wear and tear. This only covers items damaged in fires, flooding, wind and other natural disasters, and not every policy is the same. State Farm homeowners insurance polices, for example, don’t include flooding and only cover overflow of steam, but not leakage from your AC unit. A home warranty, on the other hand, offers repairs and replacements for air conditioning units that fail due to simple wear and tear.

Choice Home Warranty covers central air conditioning in our Total Plan. All you need to do is pay a small service fee after calling the Choice Home Warranty claims department, and you’ll be quickly on your way to repairing or replacing your unit and returning your home to comfort.

Are Stolen AC Units Covered Under Homeowners Insurance?

Unfortunately air conditioning units are expensive and susceptible to theft. Thankfully, most insurance policies do cover stolen AC units, but you’ll have to read the full policy to see if a full or partial replacement is offered. If this happens to you, make sure to file a police report before filing a claim with your insurer.

What Exactly Is Air Conditioner Insurance?

Your homeowner’s insurance might not cover your air conditioning unit, unless under severe cases like a weather incident. Coverage against issues that arise as a result of normal wear and tear requires additional protection. While Choice Home Warranty does not offer air conditioner “insurance,” we do offer home warranty plans that protect your air conditioner from normal wear and tear. Under our Total Plan, air conditioner coverage is included.*

How Can I Maintain My Air Conditioning Unit?

If you want your air conditioning unit to remain working and reliable for years to come, you’ll need to perform some basic maintenance tasks to keep it running smoothly. Below are some tips from the U.S. Department of Energy for keeping your air conditioner in great condition and in line with most manufacturer upkeep instructions:

  • Replace and clean your air conditioner filters—Perhaps the most critical maintenance task to ensure your unit runs smoothly is to clean and replace your air conditioning filters. When filters become clogged, they can block the entire system’s airflow and reduce the efficiency of your machine significantly. Some types of filters are reusable — you can clean them and put them back in — while others need to be replaced. Find out what your machine needs and make sure to properly maintain your filters in order to maintain your unit.
  • Remove debris—Dirt and small debris build up over time on your air conditioner’s evaporator coil and condenser coil. The dirt buildup reduces the coil’s ability to absorb heat by insulating it and reducing airflow. Simply checking up on the coil every year and cleaning it if necessary can help you avoid this problem.
  • Cover when not in use—If you have an outdoor unit, try to cover and store it for the winter. Exposing your air conditioning unit to extreme cold can cause the pipes to freeze and burst, leaving you with a broken air conditioner when the spring and summer months come.

How Much Does It Cost to Replace a Central Air Conditioning Unit?

Depending on whether or not you have a home warranty that covers air conditioning unit repair and replacement, the cost of repairs or replacements for central air conditioning units can vary wildly. Plans that cover air conditioners provide peace of mind to homeowners, so even if your appliance breaks, you’ll be safe from the hefty out-of-pocket costs. Most homeowners are forced to spend around several hundreds of dollars on a replacement air conditioning system. Installation for that unit, depending on how advanced it is or how complicated the system is, can run your bill into the thousands of dollars.

Without a warranty, not only will you have to deal with the discomfort of a warm home, but you’ll also find yourself having to worry about managing the financial burden of replacing or repairing the unit. A home warranty is a smart purchase for nearly every homeowner.

Why Get a Home Warranty Plan with Choice Home Warranty?

Choice Home Warranty prioritizes customer satisfaction. Whether you’re looking to protect your air conditioner, your refrigerator or your garage door, Choice Home Warranty offers two different warranty plans, with the option of adding additional coverage on parts and services that aren’t typically covered by other providers such as septic tanks and pool parts. Here’s what you’ll get when you choose Choice Home Warranty for your protection plan:

  • 24/7 customer support—You get access to a high-quality team of knowledgeable customer service representatives.
  • Automatic policy renewal—You won’t get stuck paying for unexpected repairs because you forgot to renew your plan.
  • Emergency service availability—Broken appliances or services can occur at any time of the day, which is why Choice Home Warranty allows you to process claims at any time.
  • Professional, experienced service technicians—When you buy a warranty plan, you don’t have to rely on word-of-mouth recommendations for service professionals.
  • High-quality service with affordable pricing*Pay a yearly or monthly fee, choosing a plan that works best for your home and your budget.
Consider Choice Home Warranty to cover all your most essential appliances and units. Get a free quote or call us today at (732) 907-4902.


* There are also specific limitations of coverage for each appliance and system. Click Here to view complete limits of liability and any exclusions. CHW offers service contracts, which are not warranties. ** See policy for specifics on response times. *** CHW reserves the right to offer cash back in lieu of repair or replacement in the amount of CHW’s actual cost (which at times may be less than retail) to repair or replace any covered system, component or appliance. **** In the event a claim is denied, and a customer seeks to have Us review that denial, We have the right to request routine maintenance records in reviewing its decision.