#United States #Charlotte, N.C. #Insurance #HVACi #HVAC Claims

Annual Claims Report Insights for HVAC Systems

In 2024, significant trends emerged in HVAC claims that have implications for insurance decisions in 2025. The recent Annual Claims Report from HVACi outlines critical information regarding HVAC and refrigeration systems that affected policyholders nationwide. With numerous claims filed due to environmental challenges such as wind damage, hail, wildfires, and flooding, the report highlights that many causes were misattributed, potentially leading to unjust insurance settlements.

Key Findings

The analysis revealed some eye-opening statistics:

• - 39% of assessed HVAC and refrigeration systems had loss causes that are commonly not covered by insurance.
• - More than 50% of the disclosed causes of loss were reclassified after an objective, detailed assessment.

These findings stress the necessity for accurate determination of loss origins, which not only aids in fair settlements but also reduces unnecessary claims processing costs for insurers.

The team at HVACi compiled data from previous assessments to create a comprehensive report that serves as a critique of existing claims processes. This information can be essential for insurance professionals tasked with making informed decisions on policy renewals and managing claims efficiently.

Implications for Insurance Professionals

According to Damon Stafford, the founder and CEO of HVACi’s parent company, Alpine Intel, providing transparent and comprehensive assessment analyses empowers carriers to make more informed choices. The insights provided in the report are crucial for the policy review process, ensuring accurate settlements rooted in objective data.

The data includes over 100 types of residential and commercial HVAC systems, allowing professionals to make comparative analyses of repair costs against typical claims. It demonstrates how often reported damages, often tied to natural events, were verified as occurring due to other underlying issues. The findings also illustrate the need for HVAC professionals to be vigilant about maintenance to mitigate losses.

Illustrative Statistics

Graphs in the report display the frequency of verified damages from events like hail or wind, emphasizing how these incidents often necessitate varied degrees of repair rather than full replacements. The expectation of uniform replacements can lead to inflated claims costs, burdening the insurance system.

Additionally, the report delves into claims stemming from hurricanes such as Helene, Beryl, and Milton, where the damages were frequently found to be unrelated to HVAC system failures. This calls into question the validity of many claims and highlights the importance of careful consideration in evaluating the sources of damages.

Conclusion

The HVACi 2024 Annual Claims Report is an invaluable resource, freely available to insurance carriers as part of HVACi and Alpine Intel's mission. It equips professionals with the factual background and data-driven insights necessary to refine claims handling processes and promote accurate assessments.

For further details and to access the report, professionals can visit the official websites of HVACi and Alpine Intel, where they offer expert resources and solutions tailored for the insurance industry’s needs. This transparency will not only enhance the claims process but also uphold the integrity of the insurance industry as a whole.