Home Warranties & HVAC in Texas | What's Actually Covered

Why excluded: Companies often consider this a "consumable" or blame it on poor installation

Your cost impact: Common denial—can cost $200-600 out of pocket

Why excluded: Most policies explicitly exclude ducts as "non-mechanical"

Your cost impact: Duct leaks cause 20-30% efficiency loss but aren't covered

Why excluded: Any issue that existed before policy started

Your cost impact: Inspectors look for signs of prior issues

Why excluded: Original installer at fault, not equipment failure

Your cost impact: Common for homes 2-10 years old

Why excluded: Bringing system to current code is "improvement" not repair

Your cost impact: Can add $500-2,000 to replacement cost

Why excluded: Refrigerant phased out in 2020; companies exclude obsolete systems

Your cost impact: Most R-22 systems are 12+ years old

Why excluded: Dirty filter, neglected maintenance voids coverage

Your cost impact: Inspectors check filter condition and service records

Why excluded: Damage caused by AC leak to floors, ceilings excluded

Your cost impact: Need homeowner's insurance for water damage

Why excluded: Regulatory costs considered homeowner responsibility

Your cost impact: $100-300 in most Texas municipalities

Why excluded: Often not covered or limited to small amount

Your cost impact: $50-150 typical disposal cost

For most Texas homeowners, home warranties for HVAC are not cost-effective. Annual premiums of $400-700 plus $75-150 service fees, combined with common exclusions (refrigerant, ductwork, code upgrades) and low replacement caps ($1,500-3,000), often result in paying more than direct repairs would cost. The math works better if you have an older system (10+ years) with high failure probability, or if the seller is paying for warranty. For newer systems or homeowners with emergency funds, paying a quality HVAC contractor directly typically provides better value and faster service.

Common exclusions include: refrigerant leaks and recharge (often the most needed repair), ductwork repairs, pre-existing conditions, improper installation issues, code upgrades required by law, R-22 refrigerant systems, maintenance-related failures, permits and inspection fees, and equipment disposal. Additionally, replacement caps of $1,500-3,000 mean you'll pay most of any major replacement cost yourself. Always read the exclusions section of your policy carefully before purchasing.

The most common denial reasons are: pre-existing conditions (claiming problem existed before coverage), lack of maintenance (dirty filter or no service records), improper installation (blaming original installer), not a covered component, replacement cap exceeded, and unauthorized repair (you called your own contractor). To minimize denials: document your system condition when policy starts, keep all maintenance records, change filters regularly and save receipts, and always call the warranty company first before arranging repairs.

Expect 24-72 hours for initial contractor dispatch during mild weather. During Texas summer (June-August), wait times of 3-5 days are common as warranty contractors are overwhelmed. If parts need to be ordered, add another 3-7 days. Total resolution can take 1-2 weeks or longer. Compare this to calling a local HVAC company directly, which typically provides same-day or next-day service. For emergency situations with vulnerable household members, this delay can be dangerous.

Generally no. Most home warranty contracts require using their network contractors. If you call your own contractor without authorization, the claim will likely be denied. However, most policies allow you to request reimbursement for emergency repairs if: you attempted to reach the warranty company first, the situation was truly urgent (vulnerable person without AC in extreme heat), you documented the emergency, and the repair was reasonable. Success rate for reimbursement claims varies widely.

Most home warranties cap HVAC payouts at $1,500-3,000, though some premium policies go up to $5,000. Given that a full AC replacement in Texas costs $6,000-12,000 and a furnace replacement costs $3,000-6,000, the cap covers only a fraction of major replacements. Additionally, code upgrades ($500-2,000), permits ($100-300), and disposal ($50-150) are typically excluded and add to your out-of-pocket cost. Read your policy's dollar limits carefully.

Usually no, and this is one of the most frustrating exclusions. Refrigerant issues are among the most common AC problems, especially in Texas heat. Most warranties either exclude refrigerant entirely or cover only minimal amounts. The reasoning varies: some classify it as a 'consumable,' others claim leaks indicate prior damage. If your system needs refrigerant, expect to pay $200-600 out of pocket for leak repair and recharge, even with an active warranty.

For a new home with new HVAC, a home warranty is generally unnecessary. New equipment comes with manufacturer warranties (typically 5-10 years on parts, 1 year on labor) that provide better coverage than home warranties. New homes also have builder warranties. Your money is better spent on a maintenance agreement with a local HVAC company ($150-300/year) which prevents problems and builds a relationship for when service is needed. Start building an emergency fund instead.

You have limited options: 1) Document all communication attempts with timestamps, 2) Escalate to a supervisor and request emergency authorization, 3) If someone vulnerable is in the home (elderly, infant, medical condition), document the safety concern in writing, 4) In true emergencies, you may need to call a contractor directly and seek reimbursement—success varies. Consider the liability of waiting vs. paying out of pocket. Some homeowners file complaints with the Texas Department of Insurance for unreasonable delays.

Yes, and it's a common denial reason. Warranty companies send technicians who inspect the system before approving repairs. Signs they look for: extremely dirty filter, dirty coils indicating years without cleaning, no evidence of professional maintenance, and obvious neglect like vegetation growing into the outdoor unit. To protect yourself: change filters monthly and save receipts, schedule annual maintenance and keep records, and document your system's condition with photos when the policy starts.

Some premium policies offer better HVAC coverage with higher caps ($5,000+), refrigerant coverage, and fewer exclusions, but premiums are correspondingly higher ($800-1,200/year). Even the best policies still have limitations around pre-existing conditions, code upgrades, and contractor choice. For most homeowners, the premium difference would be better allocated to an emergency fund. If you do shop for warranty, look specifically at: HVAC cap amount, refrigerant coverage, code upgrade policy, and contractor network reviews in your area.

Steps to appeal: 1) Request the denial in writing with specific policy language cited, 2) Review your policy to verify the exclusion applies, 3) Gather supporting documentation (maintenance records, inspection reports, photos), 4) Call back and request supervisor review, 5) Submit a formal written appeal with documentation, 6) File a complaint with the Texas Department of Insurance if you believe the denial is unjustified. Success rates vary—pre-existing condition denials are hardest to overturn; maintenance-related denials have better appeal success with proper documentation.