What Insurance Companies Look At
When it comes to insuring your home, insurance companies don’t just look at your roof and location—they closely examine your HVAC and plumbing systems, too. Why? Because poorly maintained systems increase the risk of costly claims, from burst pipes to AC failures during extreme weather. In fact, water damage alone accounts for 29% of all homeowner insurance claims in the U.S., making plumbing one of the biggest red flags for insurers.
In Florida, where storms, humidity, and high temperatures put added stress on home systems, insurers are tightening their requirements. Many companies now have strict guidelines regarding HVAC system age, plumbing materials, and water heater condition—factors that can determine whether your home gets insured or denied coverage altogether.
The good news? Preventive maintenance and strategic upgrades can increase your home’s insurability, lower your premiums, and even help you qualify for discounts. Here’s how insurance companies evaluate these critical systems and what you can do to protect your home—and your budget.
1. HVAC System Age and Maintenance: A Key Factor for Insurability
Did you know that insurers are more likely to offer coverage—or better rates—if your HVAC system is newer and well-maintained? The National Association of Insurance Commissioners (NAIC) reports that regular home maintenance, including HVAC servicing, can reduce the likelihood of major claims by up to 30%. But what exactly are insurers looking for?
System Age: HVAC systems typically have a lifespan of 12 to 15 years, 20 years maximum if you’re lucky and have done regular maintenance. Once systems surpass this age, they present a higher risk of failure, which insurers view as a liability. Homes with HVAC systems older than 15 years may face higher premiums or even difficulty getting insured. Some insurers even require documentation proving that older systems have been adequately serviced.
Maintenance: Insurers appreciate homes that have regular HVAC maintenance, including filter changes and annual checkups. Proper maintenance ensures your system runs efficiently, reducing the risk of costly breakdowns, which in turn lowers the overall risk to the insurer.
2. Plumbing Pipes Matter: Insurers Care About Material and Condition
Water damage claims are one of the most common types of homeowner insurance claims in the U.S., making plumbing a major concern for insurers. According to the Insurance Information Institute (III), water damage accounts for 29% of all claims—making it essential that your plumbing is up to par.
Pipe Materials: Certain materials, like polybutylene pipes, used in homes from the 1970s to the 1990s, are considered high-risk by insurers. These pipes are prone to breaking and leaking, leading to potential water damage. Homes with polybutylene may be harder to insure and may face higher premiums. On the other hand, plumbing systems with more durable materials like copper or PEX are seen as less risky.
System Age and Condition: Insurers may be reluctant to cover homes with outdated plumbing systems that include galvanized steel or lead pipes. If your plumbing system is older or prone to leaks, insurers might require upgrades before issuing a policy.
3. Water Heating Systems: Age Is a Red Flag
If your water heater is over 10 years old, insurers may flag it as a potential risk. Water heaters tend to wear out over time, which increases the risk of leaks or failures. Insurers are more likely to approve policies for homes with newer, well-maintained water heaters that are less likely to cause water damage.
4. Storm-Resistant Features: Key for Homes in Hurricane-Prone Areas
In Central Florida, where hurricanes are a significant concern, insurance companies prefer homes with storm-resistant systems. Having reinforced plumbing connections or HVAC systems designed to withstand high winds can lower your risk profile and potentially reduce your premiums. Many insurers look for homes with:
Hurricane-resistant windows and roofing to prevent storm damage.
Flood-resistant plumbing and water shut-off systems that help reduce potential flooding during heavy rains or hurricanes.
5. Implementing Preventive Measures: The Power of Leak Detection and Shutoff Systems
Innovations like automatic leak detection systems and water shutoff valves are becoming increasingly popular with insurers. These systems can prevent catastrophic water damage, which is why some insurers offer discounts for homes equipped with them. In fact, homes with leak detection systems have been shown to reduce claims by up to 50%, according to studies from the American Insurance Association (AIA).
Protect Your Home and Save on Insurance Premiums
Maintaining your HVAC and plumbing systems isn’t just about comfort—it’s about protecting your home from the risks that insurers care most about. By keeping your systems updated and well-maintained, you can reduce your home’s risk.
Ready to make your home more insurable?
Contact ServiceOne Air Conditioning and Plumbing today for an expert inspection and a detailed maintenance plan that will keep your home running smoothly—and ensure your insurance policy stays in great shape.