How To Get Your Home Warranty To Replace The AC Unit?

Published Date: November 24, 2022


Air conditioners are one of the widely used cooling systems across the country. And during the summer season, these systems work continuously, which may result in breakdowns or malfunctions. Having a home warranty can help you repair or replace damaged parts or the whole unit. However, the crucial question is, ‘how to get your home warranty to replace your AC unit?‘ This article will guide you through the steps you can take to make the home warranty company replace your AC unit.

Does A Home Warranty Provide Complete AC Replacement?

Does A Home Warranty Provide Complete AC Replacement?

Home warranties offer repair and replacement of components of HVAC systems, not the complete unit. When your air conditioner malfunctions or breaks down, you can contact your warranty provider, and they’ll send a technician for an inspection. You can also call a technician of your preference (if your provider allows it). The warranty provider will cover the replacement or repair cost of components mentioned in the agreement. However, you need to pay the deductibles or service call fees that may range from $75 to $150.

A home warranty will cover the following components of an AC:

  • Evaporator coil
  • Compressor
  • Condenser unit
  • Blower motor
  • Capacitors
  • Ductwork
  • Split AC parts
  • Thermostats
  • Split & packaged unit
  • Geothermal
  • Wall mounted units
  • Heat pump

Though these components are covered by most warranty companies, some don’t include them in their coverage lists. You can find the details of your company’s coverage in the contract.

Note: In cases of malfunctioning of multiple components, some warranty providers offer replacement of the entire unit, but they usually bring a low-end product as a replacement. They try to get a unit that falls under their coverage cap. When the unit’s price is more than the coverage limit, the customer has to pay the excess amount.

When Will The Company Replace Your AC Unit?

When Will The Company Replace Your AC Unit?

When covered systems malfunction or break down, you can call the provider for a replacement. But, the decision to replace the HVAC system is at the company’s discretion.

Home warranty companies offer replacement under the following conditions:

  • The components are beyond repair
  • The cost of repairing the part(s) exceeds the coverage limit or unit’s price. 
  • Failure of multiple components because of age 
  • When a component or the unit becomes dangerous (explosive, inflammable, toxic gas leak)

You have to remember that the provider will cover the expenses up to their coverage limit, whether it’s repair or replacement. The homeowners are expected to pay for out-of-pocket expenses, including the service call fee.

Note: Usually, home warranty companies prefer repairs over replacement, as it costs them less.

Can The Company Deny Replacing My AC Unit?

Can The Company Deny Replacing My AC Unit?

Yes, the company can deny your replacement claim. There are two major reasons for denying the replacement of your regular or window AC. First, for the parts not covered under the warranty; and second, for specific reasons mentioned under your warranty contract.

Home warranty companies don’t cover the following parts of an air conditioner:

  • Outside or underground piping for geothermal and water source heat pump
  • Window units
  • Water towers
  • Gas AC ductwork
  • Electric air cleaner/filter
  • Humidifiers
  • Chillers and water lines
  • Energy management systems

Below are some of the components that are not covered by some of the top warranty companies.

  • Well pump components
  • Water evaporator coils
  • Roof mount, jack stand and support
  • Register and grills
  • Non-ducted wall-units
  • Cooler pads
  • Drain pans
  • Dampers
  • Freon leaks and damages

Your claim will be denied for the following reasons as well:

  • Issues other than normal wear and tear (e.g., damage due to a power surge) 
  • Breakdown due to poor maintenance 
  • Modification. For example, when you replace parts of an old AC, the new parts may need more space and power. Because of this, you will have to modify the unit for proper functioning.
  • Problems caused by fire, weather, or a natural calamity.

What is the AC Replacement Process?

What is the AC Replacement Process?

The homeowners need to follow certain steps to get their AC replaced. And this section will help you understand the process involved in it The procedure for claiming AC replacement is the same as for all systems, and the steps involved are listed below:

  • The procedure starts when you call customer support and pay the service call fee.
  • The company will assign a licensed contractor or technician for the inspection of your unit.
  • After the inspection, the technician will inform the company about the faulty part. If that part/component is also covered under the warranty, he’ll fix it. 
  • If the technician suggests a replacement of a component or the unit because it is beyond the repair option, the company will offer a replacement. In some cases, the company may offer a reimbursement instead of replacing the unit.

The Bottom Line

Most home warranty companies cover AC replacement. Getting your AC replaced by the home warranty company is quite easy when you follow the company's procedure. Sometimes, they may deny your claim, but if the denial is not as per their terms & conditions, you can always follow-up and make the claim again.

Frequently Asked Questions (FAQs)

For How Long Will My AC Be Covered Under Home Warranty?

A home warranty plan covers your AC for one year. However, you have the option to renew the warranty every year, and it will offer you the same coverage.

How Can You Tell If Your AC Compressor Is Bad?

There are some common signs of a bad AC compressor.

  • Clattering or screeching noises
  • Increase in energy bills (a sign of inefficiency) 
  • The need to adjust the thermostat frequently 
  • Low/weak airflow and air vent leak
  • AC blows warm air instead of cool air and vice-versa
  • Having difficulty switching on the unit
  • Issues in the circuit breaker
  • Increase in moisture and humidity in the ductwork
  • Smell from ductwork, especially the smell of burning (a sign of overheating)

What To Do When My Air Conditioner Replacement Claim Is Denied?

When the claim is denied, you must check the terms & conditions of your warranty contract. There you will find the reasons for denying your claim. If the replacement was denied as per the conditions in the contract, you could not do anything. And if the denial is not based on any terms or company policy, you can follow the below procedure:

  • File an appeal for the warranty denial. Ask the company representative for the proper documentation required for the appeal. 
  • Request the technician to give a detailed report on the inspection. Also, ask for another expert’s opinion and an inspection report on the unit. Multiple reports are good for presenting your case. 
  • After filing the appeal, keep in touch with the representative till the issue is resolved.
  • If nothing happens, file a complaint on the Better Business Bureau website and write a review on Trustpilot. You can expect a quick response from companies when their reputation is at risk.

Does American Home Shield Replace HVAC Units?

Yes, American Home Shield offers HVAC replacement, subject to contract limitations and exclusions.

Is It Better To Replace The AC Compressor Or Whole Unit?

The compressor is the most important and expensive part of an AC. Hence, it becomes a dilemma when homeowners have to choose one option. 

You can replace the AC compressor or the whole unit, depending on your situation.

Replace compressor if

Replace AC if

  • It’s under warranty. 
  • Other components are new/functioning well. 
  • You have budget constraints
  • The unit is under warranty and 15+ years old. 
  • More than one component is failing or malfunctioning. 
  • Have a sufficient budget 

How Much Does It Cost To Replace An AC Compressor?

The average cost of an air conditioner compressor on the market is around $800 to $2,380. And the replacement cost involves labor and/or installation charges, which makes the total cost go up from $2,500 to $3,000.

Will A Home Warranty Replace My 20 Years Old AC Unit?

Yes, many home warranty companies do replace old AC units. However, some companies don’t specify this in their contract or offer this service. You can check the terms & conditions of your warranty provider or contact them for further details.

Does Choice Home Warranty Cover AC Replacement?

Yes, Choice Home Warranty covers AC replacement if you have kept it in good condition and done the necessary tune-up as per the manufacturer’s directions.

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