HVAC Investigators (HVACi) has released its 2025 Annual Claims Report, saying half of the HVAC and refrigeration equipment included in 2025 claims could be repaired and another 20% was functioning properly at the time of assessment. The report analyzes data and risks property and casualty insurance carriers faced when handling claims involving HVAC and refrigeration systems.
According to HVACi, the equipment assessed in 2025 represented total exposure of more than $1.25 billion. The company said the report is intended to help carriers understand how HVAC and refrigeration equipment could affect their processes, claim resolutions and policyholder experiences in 2026 and beyond.
The report highlights differences between reported and actual causes of loss, changes in parts and labor costs, and repair-versus-replace patterns. HVACi said hail and lightning were the most reported causes of loss, but those reports were often inaccurate, and systems with verified damage from those perils typically did not require full system replacement.
HVACi also reported that nearly half of all reported perils were recategorized after its assessments, while almost 40% of evaluated HVAC equipment had a cause of loss not typically covered by insurance policies. The report includes residential, multi-system large-loss and commercial insurance claims data.
A section on the 2025 California wildfires includes data on average claimed amounts, commonly reported system types, and repairability, with HVACi saying 75% of claimed equipment could be returned to pre-loss condition through repair. “In 2025, HVAC and refrigeration equipment assessed by HVACi represented a total exposure of more than $1.25 billion,” said Paul Whitmore, executive vice president of specialty assessments at Alpine Intel. “Each claim carries the risk of indemnity leakage if resolutions are based on inaccurate causes of loss or unnecessary replacements. These conditions are not isolated. Our teams encounter them daily across the country.”
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