The EPA banned R-22 (Freon) production and import in 2020. Six years later, the phaseout continues to affect homeowners with older HVAC systems — and how home warranties handle refrigerant claims matters more than most consumers realize.
R-22 (chlorodifluoromethane, brand name Freon) was the dominant residential HVAC refrigerant for decades. The Clean Air Act required its phaseout because it depletes the ozone layer.
Timeline:
The supply of recycled R-22 is finite and declining. The price has gone from roughly $10-$15/lb in the early 2010s to $50-$150/lb today, with wide variation depending on supply at any given time.
Any central air conditioning unit manufactured before approximately 2010 uses R-22. If your system is 15+ years old, it almost certainly uses R-22.
A refrigerant leak on an R-22 system triggers a choice:
This is where it gets complicated.
American Home Shield (AHS): Covers refrigerant including R-22. This is their most significant differentiation for consumers with older systems. AHS is the only major national warranty that explicitly covers refrigerant including the more expensive R-22.
Most other companies: Exclude refrigerant entirely or limit coverage to a small sub-cap ($50-$300 maximum). This is in the exclusions section and easy to miss.
Why this matters: If your 16-year-old AC has a refrigerant leak and needs 5 lbs of R-22 at $100/lb, that’s $500 in refrigerant alone. Most warranties won’t pay a dollar of it.
With older R-22 systems, a refrigerant leak often triggers the replacement vs. recharge decision.
Recharge with R-22: $150-$1,500 depending on how much refrigerant was lost. Buys time, but if the system leaks again, you pay again.
Replace with R-410A: $6,000-$14,000 depending on market. The system uses modern refrigerant; the problem is solved long-term. And modern R-410A systems are more efficient.
Many HVAC technicians will recommend replacement for systems over 15 years old with a refrigerant leak — the economics and the remaining life of the system favor replacement. If your warranty has a $5,000 HVAC cap and replacement costs $10,000, you pay $5,000 out of pocket.
The refrigerant transition doesn’t end with R-22. The EPA is now phasing down R-410A under the AIM Act (American Innovation and Manufacturing Act), pushing the industry toward lower-global-warming-potential refrigerants like R-32 and R-454B.
New HVAC equipment is transitioning to these next-generation refrigerants. This creates another long-term transition cost cycle for homeowners — and another reason to watch how home warranties handle refrigerant coverage as the industry evolves.
If you have an older R-22 system:
If you’re replacing your R-22 system:
New equipment will be R-410A or next-generation refrigerant
Verify your new warranty covers the new equipment
After replacement, refrigerant coverage matters less (new equipment is less likely to leak in the first few years)