Editorial analysis. The figures on this page are rough estimates compiled for context, not audited data, and we have not tied them to a primary source. Treat them as directional and confirm current prices and caps with each company.
Most major home warranty companies set their standard HVAC caps years ago - and haven't adjusted for inflation. Meanwhile, HVAC replacement costs have increased 20–35% since 2020 in most U.S. markets. The same cap covers less every year.
The Math - Phoenix, AZ Example
| Scenario | 2020 | 2026 |
|---|---|---|
| HVAC replacement cost | $7,000–$10,000 | $9,000–$15,000 |
| $3,000 cap covers | 30–43% of cost | 20–33% of cost |
| $5,000 cap covers | 50–71% of cost | 33–56% of cost |
| Out-of-pocket (with $3k cap) | $4,000–$7,000 | $6,000–$12,000 |
In absolute dollars, the gap between what the cap covers and actual replacement cost has widened by $2,000–$5,000+ since 2020 in high-cost markets. You're taking on more risk every year your cap stays the same.
Companies That Have (and Haven't) Adjusted
| Company | HVAC Cap | Context | Adequate? |
|---|---|---|---|
| AFC Home Club | No fixed cap | Reimbursement schedule tracks actual costs | |
| 2-10 HBW | $5,000/unit | Meaningful (if incomplete) coverage in most markets | |
| AHS | $5,000 | Plan options with higher caps in some markets | |
| Old Republic | $5,000 | Competitive at quality tier | |
| Cinch | $1,500 combined | Covers <20% of typical replacement in major markets | |
| Choice Home Warranty | $3,000 combined | Marginal before inflation; worse now |
What Consumers Should Do
Check your cap against current replacement costs - not 2020 prices
If you've had a home warranty for 3+ years with a fixed cap, the real-terms coverage has declined. What you thought was 'HVAC coverage' covers a smaller percentage of actual replacement costs.
At renewal, evaluate whether the cap is still adequate
If the answer is no: switch to a higher-cap company or add a separate savings fund to cover the expected gap.
For new buyers: ask specifically about cap history
Has this cap been the same for 5 years? Have they adjusted it for cost inflation? A company that hasn't adjusted caps in a rising-cost environment is offering declining real-terms coverage.
The Industry Response
A few companies have begun offering "enhanced" or "premium" HVAC coverage add-ons with higher caps. This is a market response to the inflation problem - they know the standard caps are increasingly inadequate.
Watch for "enhanced HVAC coverage" add-ons - they may be worth evaluating if the base cap isn't adequate for your market. Calculate whether the add-on cost is justified by your actual replacement exposure.