Central AC replacement averages $5,000–$15,000. A $1,500 cap leaves a $3,500–$13,500 gap that comes out of your pocket. Choosing the right HVAC cap is the single most important home warranty decision for homeowners in hot or cold climates.
HVAC Cap Comparison - All Major Companies
| Company | HVAC Cap | Notes |
|---|---|---|
| AFC Home Club | No cap | Pays per reimbursement schedule |
| Old Republic | $6,500 | ~30 Western states |
| AHS | $5,000 | Includes rust/corrosion (unique) |
| 2-10 HBW | $5,000 | Available nationally |
| First American | $3,500 | National |
| HWA | $3,000 | AZ AG enforcement history |
| Choice | $3,000 | AZ AG enforcement history |
| Armadillo | $3,000/unit | Per-unit cap |
| ServicePlus | $3,000 | National budget option |
| Liberty | $2,000 | National, good customer service |
| HSA | $1,500–$3,000 | Real estate transaction focus |
| Cinch | $1,500 combined | Shared with appliances |
What HVAC Coverage Includes
What's Excluded
Pre-existing conditions
Most common denial reason. A compressor showing signs of wear before your policy started may be denied. This is the most frequent complaint about HVAC claims.
Maintenance failure
Missing or dirty filters, lack of annual maintenance records, "improper use" - companies interpret this broadly. Keep annual tune-up receipts.
Refrigerant recharge
Excluded on many plans or subject to a separate sub-cap. AHS specifically includes refrigerant recharge - a meaningful differentiator for older systems.
Ductwork
Many plans limit or exclude ductwork repairs. Check your contract - accessible duct leaks may be covered, in-wall or in-slab ductwork typically is not.
Rust and corrosion
Most companies exclude it. AHS covers it - important in coastal states (FL, SC, NC, VA, TX Gulf Coast) where salt air accelerates corrosion.
Code upgrades
When HVAC replacement triggers code-required upgrades (new refrigerant type, permits, new breaker circuit), the warranty typically won't cover those costs.
Improper prior repair
If a previous owner had the system repaired by an unlicensed contractor, the warranty company may use this to deny coverage on affected components.
The Out-of-Pocket Math
Phoenix example - central AC failure, 3-ton unit, $8,500 replacement cost:
How to File an HVAC Claim
If your claim is denied: Get the denial in writing with the specific contract exclusion cited. Request the technician's diagnostic report. Appeal in writing citing your maintenance records. Escalate to your state AG if the denial cites vague "pre-existing condition" without specific findings on a system you've used without issues since purchase.