Insurance Company Woes
 

My home owner's insurance company just called and told me that they won't renew my insurance unless I have my 20 year-old HVAC (AC/Heat) system replaced. There is nothing wrong with my HVAC system. I asked if they could just come and inspect it, but that's a no-go. I really don't want to switch to a different company because they are probably going to say the same thing. Do I have any other options (besides not having insurance) where I can keep my original HVAC system? If not, do you have recommendations for a good company to install a new one? Very frustrating...grrrrrr.....:(

Munn's

After 20 years, you really do need a new system. If you are going to live in the house another 10 years, you will be happy you replaced it. If you sell the house, you will also be happy that it will sell for a higher price. No one will want to buy a 20-year old HVAC system in Florida. So, either way, it is a win-win situation for you.

I just signed up for new coverage and was warned that they may need me to replace my water heater - like your HVAC, it is in perfect working order (and looks almost new) - and to have to replace such items is a waste of money and resources, like the roof.

I suspect that, with so few companies covering Florida, that age limit will drop to 15 years then go down to ten - the homeowner has no choice but to go along with it.

Pure laziness on their part not to at least offer to go with the opinion of a third party inspection.

Try to get your HVAC system replaced before the New Year, when the new regulations kick in and the system will cost 25-30 percent more (with new and unproven technology that will undoubtedly have bugs that need to be worked out). Our new system installation is scheduled for early December. We are having Chuck Ferrell replace a still functional 18 year old system. I would highly recommend them, but my understanding is they aren’t taking new customers.

On the positive side the new system will be much more energy efficient.

Rush out to buy an obsolete system.

Sort of off point, however this is typical Villages mentality. So upset about spending money to replace outdated house issues, but ready and willing to spend thousands on putting some fancy painting on a driveway and thinking it's just a wonderful idea and that cost is a great way to spend money.

Only in The Villages!

Air conditioners including the freon used has been changing over the years. You can still get repairs done and freon used in that system is still available. Writer has a 20 year old system and clearly he has not had a problem

Make a call to an insurance broker to see who will insure your home, then call those companies and see what their requirements are. In any case from what I have seen recently you can expect to pay more. You can ask the broker if they know of any firms that would write a policy that would NOT include coverage for any damage due to a failure of the AC system, but I doubt you will find a company willing to do this.

Not an obsolete system, a better system at a lower cost. Kind of like rushing out to buy an ICE vehicle if the government mandated they would no longer be available after new years. Just practical common sense.

Or... Rush out to buy an efficient tried and true system, rather that a much more expensive system using much more expensive freon...

What insurance company? Why not get several quotes? I wouldn’t be loyal to insurance company cause They are NOT loyal to you.

It’s on its last leg and will probably fail next summer when it hot and you’ll be suffering for days waiting on company due to all failures they are working on. prices are not going down so might as well replace it now. Just in last 3 or 4 years prices has gone up 30% or more. I recommend Mums, several of my neighbors has had low budget off brands installed and had lots of problems. I had none with over year and half on new unit.

In a state with a functional and competitive insurance market that would definitely be the way to go. In reality, for a home in Florida over 20 years old there simply aren’t several reputable companies that will give homeowners a quote, and the number is shrinking every year.

I'd tell them to stuff it where the sun don't shine, and hire somebody who wants your business. How is it any of their damned business how old your HVAC is?

Failed HVAC can lead to excessive humidity causing mold and a very costly insurance claim. It’s definitely related to their business, like it or not.

To make matters worse, unlike the Freon that won’t be allowed in new systems, the new replacement stuff is flammable. This will require the new systems to be significantly redesigned, be more expensive, and require new training for the technicians. What is it with so called green government mandates and flammability? First lithium batteries and now freon, what’s next?

Mold is excluded from coverage in HO policies.

I didn't know HO insurance even covered HVAC. Am I understanding this correctly?

Why oh why??
 

I could never understand why insurance companies are requiring the replacement of HVAC and water heaters. If the HVAC fails, they aren't going to replace it under your home owners policy. What damage could it cause? Most tank water heaters are located in the garage. If they leak it goes on the garage floor, big deal. No damage and there again, they aren't going to replace it if it fails. Why is it Florida Insurance companies have all this power? They really need to have their wings clipped.

According to Rheem: "Despite their mildly flammable classification, A2L refrigerants are extremely hard to ignite."
More info here: What to Know About the 2025 HVAC Refrigerant Change - Air Conditioning Blog - Rheem Manufacturing Company

Typically, your homeowners policy will not cover replacement of an old or defective HVAC system, but it will cover damage to the house that is caused by a defective HVAC system, such as mold or a fire started by a defective system.

I fail to understand why Florida insurance companies want hvac or water heaters replaced, if they are old. Coming from New England, I’ve never heard of such a thing. Having an old system is the norm. Never heard of anyone that was forced to replace an old system. Not even a roof. All that’s up to the homeowner.

True, but I can understand why an insurance company would rather insure a homeowner who replaces old equipment with newer equipment, if it is legal. Some insurance companies even base their premium on a homeowner's credit rating. Government control of private companies can only go so far.

I just changed insurance companies and had to get a new hot water heater. It was a blessing in disguise because when they replaced it, they found a leak that was coming from my roof.

What the heck are they doing on your roof?

As others have said your system is at the end of its life and should probably be replaced. It likely won't last much longer.

I bought my house here with a 20 year old furnace and I talked the seller down on the price to cover the cost of replacing it. About a year later it died.

You also have to be careful if you have a natural gas furnace. In my previous house, my furnace was over 20 years old. I'd never had the furnace inspected since I moved in to the place so I called an HVAC company to come clean and inspect it. They found the manifold had holes in it, which can result in it leaking carbon monoxide. They were under legal obligation to shut the furnace off.

They said the leak was "coming from the roof", not that they were on the roof.

I have never heard of such a thing before. The only way an insurance company would pay for an AC would be damage from fire and possibly lightning damage. Because yours is 20 years old if would be a good idea to replace now because as of Jan 01.2025 prices are going up 15-20% due to government regulations! We replace our unit and got the best price from Kalos and Sunshine. Don’t wait until next year.

LOL! Yeah, nothing wrong with a 20 year old car with 200,000 miles on it either, but paying for full replacement cost at today's standards becomes very expensive also. Nothing wrong with worn out tires either, until you need them and they fail because of an unforeseen situation.

Am preparing to sell my parents 60 year old house which was constantly maintained properly by an engineer, and the house inspection (mine prior to sale) found dangerous long term wear which we assumed was fine because it hasn't failed yet, but it has failed safety standards, , . . and if it had failed, there would be dead people in the house.

Mechanical items controlled by electrical items wear out slowly, then suddenly. The insurance company doesn't want to deal with suddenly, as that can get very expensive with the secondary effects. And you don't want to deal with suddenly either, as total system failures and replacements becomes very costly and never at a convenient time, because of schedules. The future is always uncertain, and sometimes more uncertain with 20 year old systems than with new systems.

Insurance companies deal in risk calculations. Your risk is much higher than you realize, just because you aren't keeping up with home maintenance per most equipment expected life spans.

Change can upset human schedules and expectations. CoachK had a colleague on vacation for a month out of the country. Water hose broke on the washing machine, flooded first floor and basement. Insurance company took two years to fix it while they were housed in a hotel with kids.

Not directly applicable, but it's much more efficient to save and pay for replacement of required systems at the end of their expected life than to play roulette with the insurance company and your house.

good luck,

Yep those horseless carriages are going to be the end of the world. Those stinking electric light bulbs will take away millions of coal oil lamp maker jobs. Two guarantees in life, change and death.:ohdear:

Did they require it to be upgraded to the next generation with the mildly flammable refrigerant or do you have the option of using a 410A system? Did they require the Air handling unit to be replaced too?

If it is 410A you won't have to replace the inside unit which will be much cheaper if you have that option. Also remember 410A will be still available for years to come but it will gradually go up in cost. Only the production of 410A equipment will be halted at the end of this year.

R-410A Refrigerant Phase Out: Upgrade Your AC Now And Save Big.

They weren’t on my roof. They saw water dripping from the ceiling which came from my roof.

Under what circumstances would the insurance company be required to replace the HVAC condenser? A lightning strike?
Most failures are due to bad compressors which will cost several thousand dollars with labor. I don't think insurance covers that.
Most other problems would be relatively inexpensive.

Just a guess...
Many 20 year old systems do not have condensate drain line shut-off float switches.
They are required by code today.
A clogged drain line could cause water damage.

You might want to make sure you aren’t leaving behind any loyalty rewards such as good driver discounts, or accident forgiveness.

There might be rebates from your electric company to buy a new system (more efficient using less electricity).

Assuming that you are living in a house with a failed HAVC unit. I would guess that the people living there would repair or replace the unit within days so I would doubt that any mold or mildew would be much of a problem. Now if no one is living there that’s something else, then I can see the insurance company having concerns.

About half the homes are empty during the high humidity season.

Having a 20 year old HVAC unit is about twice what the normal life span is. Good for you. However, there has been a refrigerant change and it is doubtful that if you needed charging, the required refrigerant would be available. I would look to change the unit. We have a Lennox system and are very pleased with it, however there are other good units available. Shop around.

15-25 years seems to be the expected lifespan for an HVAC, if regularly serviced.

I suspect that, like many things, the lifespan of those manufactured in the past ten years will be less than those made 25 years ago.

If that is true, then it will have slewed the average such that an "old" one could well last 25+ years whereas its replacement might last under fifteen years.

So you could end up having to replace it again before the original would have failed had you kept it.

What is your home owners insurance have to do with your air conditioning? We've replaced ours but my insurance ha never made a request except a roof that is over 15 years old. We replace that too. You might ask them if they cover the AC & Heat, if not what do they care and if it still works, more power to you.