HVAC is the most important thing your home warranty covers — and the most contested claim category. Central AC replacement averages $5,000-$15,000. A $1,500 cap leaves you with a $3,500-$13,500 gap. This matters.
| Company | HVAC Cap | Notes |
|---|---|---|
| AFC Home Club | No cap | Pays per reimbursement schedule |
| Old Republic | $6,500 | Available in ~30 Western states |
| AHS | $5,000 | Includes rust/corrosion (unique) |
| 2-10 HBW | $5,000 | Available nationally |
| Landmark | $5,000 | ~11 Western states |
| OneGuard | Varies | Plan-dependent, AZ/TX/NV only |
| First American | $3,500 | National |
| HWA | $3,000 | Arizona AG enforcement history |
| Choice | $3,000 | Arizona 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 |
Most plans cover:
Pre-existing conditions. Most common denial reason. A compressor showing signs of wear before your policy started may be denied. This is the most common complaint about home warranty HVAC claims.
Maintenance failure. Missing or dirty filters. Lack of annual maintenance record. “Improper use.” Companies interpret this broadly.
Refrigerant. Freon/refrigerant recharge is excluded on many plans or subject to a separate sub-cap. AHS specifically includes refrigerant recharge - a meaningful differentiator.
Ductwork. Many plans limit or exclude ductwork repairs. Check your contract.
Rust and corrosion. Most companies exclude rust and corrosion. AHS specifically covers it - important in coastal states (FL, SC, NC, VA, TX Gulf Coast) where salt air accelerates corrosion.
Outdoor units. Some plans have specific exclusions for outdoor condensing units damaged by weather events.
Code upgrades. When an HVAC replacement triggers code-required upgrades (new refrigerant type, new permits, new breaker panel 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.
Phoenix example - central AC failure, 3-ton unit:
Same failure with Cinch:
AFC example (high-cost market like NYC, $14,000 replacement):
Note on AFC: AFC’s “no cap” pays per their reimbursement schedule, not 100% of any contractor’s rate. In very high-labor-cost markets, the schedule may not cover premium contractor rates.
AFC’s model is different: You call a licensed contractor of your choice, get diagnosis, submit report to AFC for approval, AFC authorizes reimbursement.
Get the denial in writing with the specific contract exclusion cited. Request the technician’s diagnostic report. Appeal in writing. File a complaint with your state AG or insurance commissioner if you believe the denial is unjustified.
If the denial cites “pre-existing condition” on a unit you’ve been using without issues for years since purchase, that’s worth pushing back on.