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5 Data-Driven HVAC Trends Adjusters Should Know

HVACi experts annually evaluate tens of thousands of HVAC and Refrigeration systems included in claims. Each assessment results in a comprehensive report with cause of loss verification and repair and replacement recommendations. At the end of each year, the team analyzes the data from all the assessments to give carriers insight into what to look for while handling these types of claims.


Below are 5 HVAC and Refrigeration claims trends uncovered during this analysis. 

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Actual causes of loss are typically different than what was reported

Policyholders often report a cause of loss without the ability to verify it. It’s critical adjusters get an expert to determine why a failure occurred, and, more importantly, if damage is present. By not taking the time to confirm cause of loss, adjusters risk settling claims that include failures from a non-covered peril or equipment that was non-damaged.


56% of reported perils were recategorized following HVACi’s independent assessment


44% of systems included in 2021 claims had an assessment result of a typically non-covered peril

HVAC systems are a risk for claims leakage

The difference between the average claimed amount and the average recommended settlement amount for individual residential and commercial claims was thousands of dollars.

Residential Claim Accuracy: $5,074
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Commercial Claim Accuracy: $33,739
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Too much claims leakage could be a sign of inefficient processes or not having the right information when settling claims. This could lead to a negative customer experience, particularly if policyholders’ premiums increase to make up for it. 


Split systems are the most frequently used HVAC system type

Nearly 80% of the assessed residential HVAC systems were split systems. More than 35% of assessed commercial HVAC equipment were split systems, surpassed only by package units that accounted for 39% of equipment included in claims.


HVAC systems are more likely to be repaired than replaced

Policyholders often seek a settlement that will cover the cost of full HVAC system replacements. More often, equipment can be returned to pre-loss condition with a minor to moderate repair.


HVACi assessed HVAC systems included in claims and provided the following recommendations for how the equipment could return to pre-loss condition.





15-20 years

For the past few years, the average age of residential systems included in claims has been either 15 or 16 years. 



15-20 years 

For the past few years, the average age of residential systems included in claims has been either 15 or 16 years. 


There’s a lot more that should be considered when evaluating HVAC systems

Several other details may impact where a claim is likely to come from and the perils that may impact policyholders’ HVAC and Refrigeration equipment.


Roll over the icons below to learn more!


Texas had the most claims followed by Louisiana in 2021
Refrigerant Type
The use of R-22 is becoming less popular following the ban on virgin R-22
Time of Year
Different months have greater risks for certain perils
Extreme Weather Events

Hurricanes, winter storms, tornadoes, wildfires, and other extreme weather cause multiple large loss claims


Data Drives Insight 

For Individual Claims and Books of Business

Data and innovative processes improve the efficiency and accuracy of the claims process. Adjusters who submit claims to HVACi know an HVAC and Refrigeration expert will complete testing based on engineering best practices to verify cause of loss and scope of damage in a short amount of time. The HVACi team also provides repair and replacement recommendations and market value pricing to ensure adjusters have what they need to settle claims.