Had my HVAC stolen but I have insurance. Advice needed.
Realtor · Snellville, GA · Member since 2016 · 19 posts · 7 votes
Had my HVAC stolen but I have insurance. Advice needed.
Most Popular Reply
Specialist · Strongsville, OH · Member since 2016 · 303 posts · 217 votes
7y@Jordan Dooley couple things:
First - make sure you have the proper type of policy for the risk such as a vacant, builders risk or course of construction policy.
If you have a “landlord “ policy chances are they will deny any claim bc the property should have been on a different policy contract.
Second - read the exclusions on your policy.
Many policies for vacant property exclude theft with the exception that some (builders risk and COC) may cover theft of "building materials" - since the AC was already installed it would be a stretch to call it building materials.
Last - I bet you have ACV coverage for this type of loss which means they will depreciate for the age of the AC before paying out on a claim.
If the cost of the unit is $3000 and it’s 5 to 7+ years old it would be adjusted heavily for age - maybe 50%?
$3000 repair - 50% depreciation = $1500 payout.
$1500 pay out minus your deductible = probably not worth claiming it.
Also - someone mentioned above...your place has a target on it and thieves will be back so you need to extra secure the property and make friends with the neighbors so they hopefully watch out for you.
Good luck!
26 Replies
- Rental Property Investor · Concord, GA · Member since 2015 · 3k+ posts · 3k+ votes7y
Did the theft occur before or after closing?
If the unit was old, I'd probably just pay for the replacement myself. If it was newer, file a claim, that's the point of insurance. If it was a later system and just needs an outside unit, that may be less expensive but if it's an r22 older unit, they'll probably want to change out the whole system and that typically runs 4 to 5 thousand.
Haven't heard about too many ac units being stolen in recent years since they made it harder to market them at the scrap yards.
- Realtor · Snellville, GA · Member since 2016 · 19 posts · 7 votes7y
It happened after closing. And it was older, the house was built in 1950 but idk when the newest one was out in. I’ll ask my partner. Thanks for your help! I’ll reply with what we decide. If it’s over $3k we might file a claim
Originally posted by @John Teachout:Did the theft occur before or after closing?
If the unit was old, I'd probably just pay for the replacement myself. If it was newer, file a claim, that's the point of insurance. If it was a later system and just needs an outside unit, that may be less expensive but if it's an r22 older unit, they'll probably want to change out the whole system and that typically runs 4 to 5 thousand.
Haven't heard about too many ac units being stolen in recent years since they made it harder to market them at the scrap yards.
- Investor · Topeka, KS · Member since 2015 · 1k+ posts · 1k+ votes7y
I agree with @John Teachout also depending on the size of the house you can do a smaller AC unit. I usually spend 1.5k to 1.9k for the compressor (which is what I assume was actually stolen). I assume the A coil was probably not stolen as it is attached to the furnace.
- Specialist · Oxnard, CA · Member since 2018 · 92 posts · 32 votes7y
@Jordan Dooley wow same thing happened to mine after closing as well! Closed on a SFH in Kansas City and a week later bam. PM emails me saying it got stolen, they noticed it gone during a walk through with prospective renters 😂.
I did not file a claim since the price will be under 1k for replacement . Interesting how this is a thing with people stealing these.
- Realtor · Snellville, GA · Member since 2016 · 19 posts · 7 votes7y
Yea my partner was saying it’d be around $1600 so maybe I’m thinking of the wrong part of it wasn’t the whole AC! Thanks
Originally posted by @Jacob Sampson:I agree with @John Teachout also depending on the size of the house you can do a smaller AC unit. I usually spend 1.5k to 1.9k for the compressor (which is what I assume was actually stolen). I assume the A coil was probably not stolen as it is attached to the furnace.
- Realtor · Snellville, GA · Member since 2016 · 19 posts · 7 votes7y
Yes this is crazy haha! Congrats on the closing!
Originally posted by @Luis Vaca:@Jordan Dooley wow same thing happened to mine after closing as well! Closed on a SFH in Kansas City and a week later bam. PM emails me saying it got stolen, they noticed it gone during a walk through with prospective renters 😂.
I did not file a claim since the price will be under 1k for replacement . Interesting how this is a thing with people stealing these.
- Specialist · Owings Mills, MD · Member since 2017 · 485 posts · 415 votes7y
@Jordan Dooley
Your excitement may turn into more financial pain.
. Rehab properties that a targeted are usually hit again and again during rehab. (copper pipe/electrical/appliances/doors/windows) So expext and plan for more.
. You can buy reconditioned ac units
. You need to call your agent and review your policy.
. Consider DWALT SITElock - Investor · Topeka, KS · Member since 2015 · 1k+ posts · 1k+ votes7y
Yep. Get a couple of quotes from a heating and AC company. You need good data to make good decisions.
- Rental Property Investor · Concord, GA · Member since 2015 · 3k+ posts · 3k+ votes7y
Was this a heat pump or a gas furnace with straight AC? Heat pumps are more expensive if it's just the outside unit that needs replacement.
I've had to replace the HVAC systems in more than half of our properties within the first year or two of ownership. From now on, we'll just budget for that in our offers if the units are older.
- Lender · Wildwood Crest, NJ · Member since 2017 · 317 posts · 56 votes7y
@Jordan Dooley that is terrible I hope you recover your property. This is the world we live in today you have to lock everything up.
- Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes7y
Am I the only one who has never heard of a central AC unit getting stolen out of someones yard?
- Contractor · Jacksonville, FL · Member since 2017 · 1k+ posts · 2k+ votes7y
@Michael Noto
Happens ALL THE TIME here in the south. We install steel cages around them. Huge black market for stolen AC's...its mostly other investors buying the stolen ones for their properties...vicious cycle...
- Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes7y
@Mark Fries Very interesting.
- Contractor · Jacksonville, FL · Member since 2017 · 1k+ posts · 2k+ votes7y
@Michael Noto
Ya...its nutz...and it affects even A and B class properties...
In the new subdivisions they are building, the builders hire security guards to drive around and patrol the new homes under construction to protect from theft...appliances, cabinets, water heaters, AC's, light fixtures....they steal it all....
- Investor · Independence, MO · Member since 2015 · 26 posts · 8 votes7y
You should buy an ac cage guard:
Property Armor X90MS Mini Split Security Cage https://www.amazon.com/dp/B07D4PPH56/ref=cm_sw_r_cp_api_i_QkgnDbJFBJHV7
- Realtor · Snellville, GA · Member since 2016 · 19 posts · 7 votes7y
Seems so
Originally posted by @Michael Noto:Am I the only one who has never heard of a central AC unit getting stolen out of someones yard?
- 7yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Luis Vaca:
@Jordan Dooley wow same thing happened to mine after closing as well! Closed on a SFH in Kansas City and a week later bam. PM emails me saying it got stolen, they noticed it gone during a walk through with prospective renters 😂.
I did not file a claim since the price will be under 1k for replacement . Interesting how this is a thing with people stealing these.
YUP its a non contact sport out in C class rental areas and some B class .. one thing to tip U off when your looking at rentals drive up and down the streets and take note to how many condensers have cages around them.. then you will know that if you don't cage yours good chance its stolen and will get stolen many times over the years.. is such a bad problem that there are LOJACKS just for condenser units..
when its bad is when they cut the little 1 foot of copper out of the system and now you have to replace the entire system..
If I was going back into this type of landlording business I would try to retro fit as many of the condensers to the Roof as possible.
- Lender · Charlotte, NC · Member since 2016 · 372 posts · 172 votes7y
Cages work as Tom suggested. I have used several types....the best I found were from an individual who made them out of cast iron.
- Specialist · Strongsville, OH · Member since 2016 · 303 posts · 217 votes7y
@Jordan Dooley couple things:
First - make sure you have the proper type of policy for the risk such as a vacant, builders risk or course of construction policy.
If you have a “landlord “ policy chances are they will deny any claim bc the property should have been on a different policy contract.
Second - read the exclusions on your policy.
Many policies for vacant property exclude theft with the exception that some (builders risk and COC) may cover theft of "building materials" - since the AC was already installed it would be a stretch to call it building materials.
Last - I bet you have ACV coverage for this type of loss which means they will depreciate for the age of the AC before paying out on a claim.
If the cost of the unit is $3000 and it’s 5 to 7+ years old it would be adjusted heavily for age - maybe 50%?
$3000 repair - 50% depreciation = $1500 payout.
$1500 pay out minus your deductible = probably not worth claiming it.
Also - someone mentioned above...your place has a target on it and thieves will be back so you need to extra secure the property and make friends with the neighbors so they hopefully watch out for you.
Good luck!
- Investor · Hamlet, NC · Member since 2017 · 35 posts · 6 votes7y
@Jordan Dooley
This seems like dejavu. My very first rental property I had the same thing happen. My property manager had just rented the home out. New tenant pulled up in yard and a truck flew out from behind the house with unit on theback. He literally chased them down the road. Lol. But they got away.
Definately aggravating. Just paid cash for new unit. About 1800 for me.
- Real Estate Broker · Chicago, IL · Member since 2015 · 1k+ posts · 2k+ votes7y
Originally posted by @Michael Norris:
@Jordan Dooley couple things:
First - make sure you have the proper type of policy for the risk such as a vacant, builders risk or course of construction policy.
If you have a “landlord “ policy chances are they will deny any claim bc the property should have been on a different policy contract.
Second - read the exclusions on your policy.
Many policies for vacant property exclude theft with the exception that some (builders risk and COC) may cover theft of "building materials" - since the AC was already installed it would be a stretch to call it building materials.
Last - I bet you have ACV coverage for this type of loss which means they will depreciate for the age of the AC before paying out on a claim.
If the cost of the unit is $3000 and it’s 5 to 7+ years old it would be adjusted heavily for age - maybe 50%?
$3000 repair - 50% depreciation = $1500 payout.
$1500 pay out minus your deductible = probably not worth claiming it.
Also - someone mentioned above...your place has a target on it and thieves will be back so you need to extra secure the property and make friends with the neighbors so they hopefully watch out for you.
Good luck!
Yup I was just about to post about ACV vs RC - that nice low ACV premium isn't so cheap when you actually have to use the policy and file a claim. Same thing w/ these 1% of building value deductibles w/o riders that lower the deductible for specific losses (like wind/hail).
- Realtor · Snellville, GA · Member since 2016 · 19 posts · 7 votes7y
Can you elaborate a little please?
Originally posted by @Matthew Olszak:Originally posted by @Michael Norris:
@Jordan Dooley couple things:
First - make sure you have the proper type of policy for the risk such as a vacant, builders risk or course of construction policy.
If you have a “landlord “ policy chances are they will deny any claim bc the property should have been on a different policy contract.
Second - read the exclusions on your policy.
Many policies for vacant property exclude theft with the exception that some (builders risk and COC) may cover theft of "building materials" - since the AC was already installed it would be a stretch to call it building materials.
Last - I bet you have ACV coverage for this type of loss which means they will depreciate for the age of the AC before paying out on a claim.
If the cost of the unit is $3000 and it’s 5 to 7+ years old it would be adjusted heavily for age - maybe 50%?
$3000 repair - 50% depreciation = $1500 payout.
$1500 pay out minus your deductible = probably not worth claiming it.
Also - someone mentioned above...your place has a target on it and thieves will be back so you need to extra secure the property and make friends with the neighbors so they hopefully watch out for you.
Good luck!
Yup I was just about to post about ACV vs RC - that nice low ACV premium gets isn't so cheap when you actually have to use the policy and file a claim. Same thing w/ these 1% of building value deductibles w/o riders that lower the deductible for specific losses (like wind/hail).
- Real Estate Broker · Chicago, IL · Member since 2015 · 1k+ posts · 2k+ votes7y
Originally posted by @Jordan Dooley:
Can you elaborate a little please?
Originally posted by @Matthew Olszak:Originally posted by @Michael Norris:
@Jordan Dooley couple things:
First - make sure you have the proper type of policy for the risk such as a vacant, builders risk or course of construction policy.
If you have a “landlord “ policy chances are they will deny any claim bc the property should have been on a different policy contract.
Second - read the exclusions on your policy.
Many policies for vacant property exclude theft with the exception that some (builders risk and COC) may cover theft of "building materials" - since the AC was already installed it would be a stretch to call it building materials.
Last - I bet you have ACV coverage for this type of loss which means they will depreciate for the age of the AC before paying out on a claim.
If the cost of the unit is $3000 and it’s 5 to 7+ years old it would be adjusted heavily for age - maybe 50%?
$3000 repair - 50% depreciation = $1500 payout.
$1500 pay out minus your deductible = probably not worth claiming it.
Also - someone mentioned above...your place has a target on it and thieves will be back so you need to extra secure the property and make friends with the neighbors so they hopefully watch out for you.
Good luck!
Yup I was just about to post about ACV vs RC - that nice low ACV premium gets isn't so cheap when you actually have to use the policy and file a claim. Same thing w/ these 1% of building value deductibles w/o riders that lower the deductible for specific losses (like wind/hail).
First you need to look for your vacancy clause. IE your policy may state that the property cannot be vacant for more than 30 days or coverage won't apply. Or on the flip side, a builder's policy might only apply if the building is vacant and under construction. Assuming that coverage will apply, check to see if there are any special provisions or riders that deal with theft and read through those exclusions (there should be). Sometimes there will be a separate deductible for those items or different terms/coverage. It should also define what is covered under the theft coverage.
If this is a covered loss with no separate terms, you'll then need to check to if your policy is Actual Cash Value or Replacement Cost. ACV takes the replacement cost and subtracts depreciation. IE If your AC has a usable life of say 10 years, and they determine it was 5 years old, you'll only get 5/10ths (50%) of the value of their determined cost of replacement. If you chose not to replace it and just keep the cash after you get paid, your insurance won't cover any future claims related to that. With replacement cost coverage, they'll give you a check for the ACV, then once you replace it, give you a check for the depreciated value as well. As such, policies that pay ACV are cheaper because the insurance company expects to pay much less for their risk as they only have to pay the depreciated value of the loss.
- Realtor · Snellville, GA · Member since 2016 · 19 posts · 7 votes7y
Wow, thank you so much Matthew. Very informative and I appreciate that. I’ll see where we stand with our insurance and make a move accordingly. If it’s only $2k we may just pay out of pocket
Originally posted by @Matthew Olszak:Originally posted by @Jordan Dooley:
Can you elaborate a little please?
Originally posted by @Matthew Olszak:Originally posted by @Michael Norris:
@Jordan Dooley couple things:
First - make sure you have the proper type of policy for the risk such as a vacant, builders risk or course of construction policy.
If you have a “landlord “ policy chances are they will deny any claim bc the property should have been on a different policy contract.
Second - read the exclusions on your policy.
Many policies for vacant property exclude theft with the exception that some (builders risk and COC) may cover theft of "building materials" - since the AC was already installed it would be a stretch to call it building materials.
Last - I bet you have ACV coverage for this type of loss which means they will depreciate for the age of the AC before paying out on a claim.
If the cost of the unit is $3000 and it’s 5 to 7+ years old it would be adjusted heavily for age - maybe 50%?
$3000 repair - 50% depreciation = $1500 payout.
$1500 pay out minus your deductible = probably not worth claiming it.
Also - someone mentioned above...your place has a target on it and thieves will be back so you need to extra secure the property and make friends with the neighbors so they hopefully watch out for you.
Good luck!
Yup I was just about to post about ACV vs RC - that nice low ACV premium gets isn't so cheap when you actually have to use the policy and file a claim. Same thing w/ these 1% of building value deductibles w/o riders that lower the deductible for specific losses (like wind/hail).
First you need to look for your vacancy clause. IE your policy may state that the property cannot be vacant for more than 30 days or coverage won't apply. Or on the flip side, a builder's policy might only apply if the building is vacant and under construction. Assuming that coverage will apply, check to see if there are any special provisions or riders that deal with theft and read through those exclusions (there should be). Sometimes there will be a separate deductible for those items or different terms/coverage. It should also define what is covered under the theft coverage.
If this is a covered loss with no separate terms, you'll then need to check to if your policy is Actual Cash Value or Replacement Cost. ACV takes the replacement cost and subtracts depreciation. IE If your AC has a usable life of say 10 years, and they determine it was 5 years old, you'll only get 5/10ths (50%) of the value of their determined cost of replacement. If you chose not to replace it and just keep the cash after you get paid, your insurance won't cover any future claims related to that. With replacement cost coverage, they'll give you a check for the ACV, then once you replace it, give you a check for the depreciated value as well. As such, policies that pay ACV are cheaper because the insurance company expects to pay much less for their risk as they only have to pay the depreciated value of the loss.
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