HVAC Home Warranty Coverage Limits: Why They Matter

When shopping for a home warranty, you’ll frequently come across the term “coverage limit” (also called “coverage cap” or ”dollar limit”). If you’ve never heard of home warranty coverage limits before, you’re not alone. They’re part of every home warranty contract and often the most misunderstood.

Understanding how these limits apply to heating, ventilation, and air conditioning (HVAC) systems is especially important since HVAC repairs can be costly, and replacements even more so. Your plan’s coverage limits affect how much you may have to pay when your heater or air conditioner needs service, making them an important consideration when choosing a home warranty plan.

Home Warranty Coverage Limits for HVAC

Familiarizing yourself with your home warranty plan’s HVAC coverage limits (or a plan you’re considering purchasing) can help you avoid financial surprises when your system breaks down and needs service. To better understand how they work, it helps to start with the basics:

Simply put, a coverage limit is the maximum dollar amount a home warranty company will pay towards certain covered expenses during your contract period (typically a year).

Many home warranty companies place a dollar limit, or cap, on how much they'll pay for air conditioning and heating repairs. If the cost exceeds those limits, you’re responsible for paying the difference. For example, imagine your home’s furnace breaks, and fixing it costs $3,500. If your home warranty plan has a $3,000 total dollar limit for HVAC coverage, then the home warranty company will pay $3,000 (the coverage cap), and you’ll be expected to pay the remaining $500.

And does a home warranty cover HVAC replacements? At First American Home Warranty, if we can’t repair your covered HVAC system, we’ll replace it.* That can be significant when you consider that replacing a heating or air conditioning system can cost around $7,500 to $12,000 or more, depending on where you live and the system you want.†

In fact, while no home warranty covers everything, First American Home Warranty offers some of the industry's most comprehensive HVAC coverage, with no total dollar limit on conventional heating and air conditioning systems. That means you don’t have to worry about reaching an overall dollar cap when a covered repair or replacement to these systems is needed.

Our HVAC Coverage

With our no-total-dollar-limit home warranty coverage for conventional heating and air conditioning systems, you can feel confident submitting as many covered service claims as needed. And because there’s no overall plan limit, one costly covered breakdown won’t “use up” your coverage when other eligible home appliances and systems unexpectedly break throughout the year. Plus, you can easily renew your home warranty coverage annually to help protect your budget, maintain your home’s comfort, and keep your household running smoothly.

Rest assured that our HVAC home warranties cover eligible breakdowns caused by normal wear and tear for heating and cooling systems and components, including furnaces, heat pumps, central air conditioning units, ductless mini-splits, and more. When your covered heater or air conditioner malfunctions, you can count on your First American home warranty to help get it working again.

Learn more about the many HVAC items covered by a home warranty.

Coverage Limits for Certain HVAC Items

While First American home warranty plans have no total dollar limit on conventional heating and air conditioning systems, a small group of individual items related to your HVAC system does have their own coverage limits, and they include:

To understand the difference between individual coverage limits vs. total coverage limits, say your air conditioner needs two covered repairs: one to fix a part located under concrete and another to repair the compressor. Your First American home warranty contract states that it will pay up to $500 to fix the part located in or under concrete. That’s considered an individual coverage limit because the $500 cap only applies to that specific part. The compressor, on the other hand, has no individual coverage limit and instead falls under your overall HVAC coverage.

In this scenario, with a First American home warranty plan, you’d be responsible for paying any amount above the $500 cap to repair the part located under concrete. However, because our plans have no total dollar limit on conventional air conditioning systems, the cost of the compressor repair would be covered, subject to the terms and conditions of your home warranty contract.

Home Warranty Refrigerant Coverage Limits

Most home warranty companies have separate coverage limits for refrigerant, usually with a per-pound dollar limit, because refrigerant is measured, purchased, and added by the pound.

Depending on how much refrigerant your system requires and the plan you have, your home warranty can help reduce or even eliminate what you pay for covered refrigerant. For example, if your system needs refrigerant, the maximum out-of-pocket cost you’d pay for refrigerant under our Standard and Essential plans is $250, even if your system needed $1,000 worth of refrigerant. Our Premium plan would cover all costs.

Learn more about our Standard, Essential, and Premium home warranty plans for homeowners.

HVAC Coverage for Home Buyers and Sellers

Buying a home soon? View our home warranty plans for buyers, which have no total dollar limit on conventional heating and air conditioning systems.  A buyer’s home warranty can help protect your budget from covered appliance and system breakdowns as you settle into your new home, offering financial peace of mind and simplifying homeownership.

Thinking of selling your home? Special home warranty coverage for home sellers (also called a seller’s real estate home warranty) offers budget protection for covered breakdowns during the listing period. If covered household items unexpectedly fail while your home is on the market, seller’s coverage can help you manage repair and replacement costs. 

Your real estate agent can order you seller’s coverage when you list your home, and you can add HVAC coverage as a separate add-on option. Be sure to read your home warranty contract details carefully. Unlike our home warranty plans for homeowners, our home warranty plans for buyers and our seller’s home warranty coverage have a total HVAC dollar limit of $1,500 and a $1,000 dollar limit on ductwork.

Don’t Limit Your Home Protection

HVAC home warranty limits are one of the most important considerations when choosing a home warranty plan, but they’re not the only one. Home warranty plans can cover a wide range of household items, including dishwashers, ovens, ranges, cooktops, refrigerators, washers and dryers, plumbing and electrical systems, and more.

Understanding your home warranty plan's dollar limits can help you set realistic expectations and ensure you're better prepared financially when an unexpected breakdown occurs.

Learn more about our comprehensive coverage and benefits, and get a free quote.

HVAC Coverage Limits Frequently Asked Questions

What are HVAC home warranty limits?

A home warranty coverage limit for HVAC is the maximum dollar amount a home warranty company will pay towards certain covered expenses during your contract period (typically a year). Many home warranty companies cap, or limit, the dollar amount they'll pay for heating and air conditioning repairs. If the cost exceeds those limits, you’re responsible for paying the difference.

Does a home warranty cover HVAC replacement?

HVAC coverage varies by home warranty company and by plan. First American Home Warranty’s no-total-dollar-limit home warranty coverage for conventional heating and air conditioning systems provides robust financial protection for covered repairs and replacements.

How do home warranty coverage limits for HVAC work?

HVAC home warranty limits determine how much a home warranty company will pay for covered heating and cooling expenses, subject to the terms and conditions of your home warranty plan. Limits may apply to specific HVAC items or overall coverage. If a repair exceeds the applicable limit, you pay the difference.

Does a home warranty cover refrigerant?

It depends on the home warranty company and the plan. Most home warranty companies have separate coverage limits for refrigerant, usually with a per-pound dollar limit. All First American plans include refrigerant coverage, but the amount of coverage varies by plan.

*In some instances, Homeowner and First American may agree to payment of cash in lieu of repair or replacement. Payment will be made based on First American’s negotiated rates with its suppliers, which may be less than retail. Please review the sample contract for specific coverage, terms and limitations.

† Cost data is from research and project costs reported by HomeGuide members. Items listed may be optional or not available on some home warranty plans; please review the sample contract for specific coverage, terms and limitations.