Rooftop HVAC systems are prone to hail damage because of their location outdoors; however, adjusters shouldn’t be so quick to settle for unwarranted major repairs or replacements – even if they receive pushback from an insured or public adjuster.
Fill out the form to read about the experience of an adjuster who was handling a claim related to 17 HVAC systems, ranging from package units to exhaust fans, that had an estimated replacement value of more than $110,000. Find out what HVACi advised to return the policyholder to pre-loss condition and how we could uphold that recommendation with data-driven facts when a public adjuster questioned it.
Hail causes billions of dollars in property damages to commercial and residential policyholders each year. Any outdoor equipment could be at risk, and that includes your insured’s HVAC systems. But before you automatically assume hail damages will require settlement for a full replacement, fill out the form to receive your copy of the HVACi hail eBook.
This comprehensive overview includes:
The significance of hail in insurance claims
Components likely to be affected by hail, depending on the system type
Tips to confirm hail is the cause of loss
Repair options that are more likely than requiring a full replacement
Images and diagrams to make this information easy to read and understand
Hail-related claims can come in at any time of the year. Keep this resource on hand to refer to for your next one.
Hail is a common cause of peril for residential HVAC equipment because of the outdoor components that can sustain damage. However, often contractors recommend replacements that may not be the best option to return the policyholder back to pre-loss condition – at a cost that isn’t in line with market value. This case study illustrates how an adjuster sought HVACi’s help in determining if hail had damaged the policyholder’s HVAC system and to what extent. The result was the insurance carrier potentially avoiding thousands of dollars in claims leakage.
Fill out the form to find out what HVACi determined about the scope of damage and the difference in the contractor’s estimate versus our recommended settlement price. You’ll discover what we can do to stop unnecessary claims leakage from happening to you, too.
Think because one HVAC system has hail damage that they all do? That’s a frequent misconception that leads to multiple HVAC systems being listed on a claim regardless if they aren’t all damaged, especially on commercial hail claims. This case study on a commercial hail claim shows what happens when an adjuster assigns HVACi to thoroughly assess each of the systems to provide a full scope of damage and best practice solutions.
Any guesses how many of the systems in this claim weren’t actually damaged and how much potential claims leakage was avoided? Fill out the form to find out because the answer may surprise you.
The HVACi 2020 Annual Report found that nearly half of the commercial HVAC claims included hail-damaged equipment, but more than 80% of the claimed systems could return to pre-loss condition through some sort of repair.
Fill out this form to learn what types of commercial HVAC systems and components are most prone to hail damage and what can be done about it when it occurs.
The National Centers for Environmental Information notes that hailstorms can cause billions of dollars in damages during each severe event. Though the outdoor equipment on commercial and residential HVAC systems is susceptible to being hit with hail and often claimed, there isn’t a guarantee the results will warrant a full replacement.
Fill out the form to check out our Hail Claim Basics Guide that details what to look for in hail-related HVAC damage, what components are frequently damaged, and what repair options exist in lieu of a full replacement.
Hundreds of thousands of insurance claims are filed annually in the United States because of severe hailstorms that can cause billions of dollars’ worth of damage, according to the National Centers for Environmental Information (NCEI).
Texas and Colorado are the leading states for number of claims related to hail, an analysis by the National Insurance Crime Bureau (NICB) shows. Nebraska, Missouri, and Kansas rounded out the Top 5 loss states, according to the study that went from January 1, 2016, to December 31, 2018, and included nearly 3 million hail loss claims.
Each storm comes with a cost. A March 2019 hailstorm in the Dallas metroplex, for example, ravaged homes, vehicles, and businesses, resulting in roughly $1.6 billion in damages, according to the NCEI. Severe storms in June 2018 caused a total of $3.6 billion in damage to Colorado and Texas.
Package units and vent caps are frequently listed in commercial HVAC claims for hail damage.
Commercial properties commonly sustain hail damage, and HVAC systems are among the equipment that’s frequently damaged. We analyzed our 2019 commercial HVAC claims data and found that 46% had hail as a cause of loss. And in 2018, 41% of our commercial HVAC claims were related to hail.
Hailstorms are common, making it important to know how hail impacts commercial HVAC equipment and how to handle these claims.
HVAC Equipment Prone To Hail Damage
Commercial HVAC equipment, including ground and rooftop units, is susceptible to hail damage.
Package units, all-in-one heating and cooling systems that can vary in size, are the most common commercial HVAC system affected by hail because they have several more vulnerable components. Refrigeration units, including walk-in coolers, ice machines, and refrigerated preparation tables, are used at many commercial properties, including grocery stores and restaurants. Because of the condensing units outside, they are also liable to have hail damage. Exhaust systems remove unwanted heat and combustible gas from a home using fans and vents, and the external vent caps are also frequently damaged by hailstones.
Condenser coils are among the HVAC system components prone to hail damage.
Commonly damaged components of a commercial HVAC system include:
Condenser coils: The most prominent HVAC component to sustain hail damage is the aluminum fin-covered condenser coils. Hail can easily bend or dent them. Dents in HVAC condenser fins can range up to twice the size of hailstones. When the fins are damaged, they are more at risk of pressing against each other or against the copper coil and blocking the system’s air flow. If it gets bad enough, this could make the HVAC system work harder, increase its running time, produce inadequate cooling, and shorten the equipment lifespan.
Fans Blades: The fan assemblies in condensing and package units and the blades can also be dented or damaged by hail. Fan blades that are dented or broken in half could cause an imbalance that may damage the system over time because it can wear out bearings or destroy a motor by overworking it.
Vent Caps: Vent caps keep moisture, debris, and other items from getting into the system where air is being pushed out. Hail can harm the components made of softer metals. Dents are the most common damage, and they won’t necessarily disrupt functionality. However, safety concerns can arise in severe hail events if the vent cap was crushed to the point that air can’t escape, and carbon monoxide builds up. Metal vents are prone to corrosion and damage from moisture, wind, and hail.
Hail Damaged The System, Now What?
To prevent hail damage, policyholders can install hail guards, which protect condenser coils from hailstones. However, since many systems don’t have those, the results are dented, bent, or torn condenser coils.
The fortunate part is that hail damage doesn’t guarantee a replacement is needed. Whether it’s a rooftop unit or a system on the ground, most of the losses can be repaired.
Repair options exist before settling for a full-system replacement.
The methods for returning a system to pre-loss condition range from a simple repair all the way to a full-system replacement.
Comb the Condenser Coil — If the traditional tube and fin coil are dented or deformed, use a fin comb to straighten them to proper position through this simple, inexpensive repair option.
Replace the Condenser Coil — If fins are torn or are Micro-Channel or Spine Fin and cannot be combed, the next step is to purchase a new condenser coil.
Replace the Condensing Unit — If condenser coil is unavailable, a new condensing unit can be purchased.
Replace the System — The rarest solution is to replace a full system after a hailstorm, though it may be necessary if it is an all-in-one system or if the condensing unit replacement would cause a SEER mismatch with the indoor equipment.
Other hail-damaged components may not require any action to be taken. A dented cabinet on a package unit or a dented vent cap can remain as-is if functionality isn’t impeded. On the other hand, individual elements that are damaged to the point of causing other system malfunctions, such as damaged fan blades and crushed vent caps, likely must be replaced.
Hail can disrupt businesses across the country, leading to costly damages and insurance claims. It’s important for adjusters to know what to look for and how to handle them.
If you have a hail claim that includes a commercial or residential HVAC system, we can help. Contact HVACi to submit a new claim.
Impact damage to HVAC systems can come from a number of sources, but two very common perils are hail and wind damage. Because these damages are so prevalent, you want to be prepared to handle these claims with as much knowledge as possible.
Thankfully, you don’t need to cram a textbook’s worth of information into your head in order to manage these claims effectively. We at HVACi have already done the heavy studying, and our experts have put together a webinar on hail and wind HVAC claims for insurance adjusters that describes:
How HVAC systems work;
What components are likely to be damaged by wind or hail;
How this type of damage can affect the efficiency of an HVAC system
How frequently these damages can be replaced; and
Federal regulations that affect the repairs and replacements.
Take advantage of our knowledge and learn more about how wind and hail damages can affect HVAC systems and how you can handle these claims. Watch our Hail and Wind HVAC Claims Webinar recording by filling out the form provided.
IMPORTANT: Previously recorded webinars do not qualify for continuing education credit.
The following HVACi article on “Corrosion and Hail-Damaged HVAC Coil Repairs” originally appeared in Property Casualty 360.
Wind and hail losses are the most frequently claimed homeowner’s insurance peril, causing approximately $1 billion in damages each year (III). HVAC systems, particularly condensing units and package units, have a high risk of hail damage. These systems, which sit outside either on the ground or the roof, contain a condenser coil constructed of copper tubing covered in a layer of malleable aluminum fins that facilitate heat transfer from the refrigerant to the surrounding air. When hail (or any other foreign object) strikes the coil, these fins can be bent and flattened, eventually reducing the ability for the coil to transfer heat efficiently.
To return the unit to pre-loss condition, the coil should be restored to its original state before the hail occurred. The most common repair option for this kind of damage is to straighten the coil fins using a fin-combing tool (provided that the fins were not torn as a result of the damage). However, if the aluminum fins are in a corroded state, they may be too brittle to be properly straightened.
Hail damaged condenser coils can often be straightened using a fin combing tool
Corrosion of the coil
Although aluminum is ideal for outdoor applications, like any metal exposed to the elements, a condenser coil is susceptible to long-term corrosion. As corrosion begins to deteriorate the composition of the condenser coil, it weakens its integrity, making the fins difficult to straighten through traditional methods. Certain conditions accelerate the corrosion of an outdoor coil, and may include the following:
Proximity to Saltwater
When saltwater comes in contact with the metals of a condenser coil, corrosion will be accelerated and pitting will likely occur. This air-borne saltwater can be carried by spray, mist, rain or fog, and can impact systems located more than 5 miles from the coast. Once the coil has begun to corrode (which can happen very quickly in a harsh coastal environment) the coil’s ability to be easily combed will be impeded.
The harsh coastal environment caused the severe corrosion of this condenser coil
Industrial and Urban Areas
During the combustion of coal and fuel oils, sulfur and nitrogen oxides are released. These atmospheric emissions are frequently found in both industrial and urban environments. The particles of these oxides are highly corrosive when they combine with oxygen, water, or high humidity conditions, which can lead to corrosion of the metals exposed to these harsh environments. The common placement of HVAC equipment near these emission sites further exacerbates the issue.
Galvanic (or bi-metal) corrosion occurs when dissimilar metals come in contact with one another and an electrolyte (such as water). When this condition exists (which it frequently does, due to common coil construction and their outdoor placement), corrosion will be accelerated in the “less noble” of the two metals. Because the aluminum fins in the condenser coil are less noble than the copper tubing contained within, and the coil is frequently wet, electrons freely flow away from the aluminum to the copper, causing the aluminum to degrade over time.
A hail damaged condenser coil that required replacement because the corroded fins were too brittle to straighten
Sprinkler Systems
Water that has a low pH value, low alkalinity, or contains total dissolved solids such as inorganic salts, can accelerate condenser coil corrosion. When untreated water (most often, well water) is used in lawn sprinkler systems, its effect on exposed metal surfaces could be problematic. Condenser coils that are in the path of sprinkler systems using untreated water are subject to the potential of accelerated corrosion.
Although this system sustained minor hail damage, it was in the path of a sprinkler system, which corroded the coils and rendered them too brittle to be straightened
Cleaning Agents
Many condenser coil cleaning agents contain sodium hydroxide and are highly caustic. If these agents are not thoroughly rinsed (with neutral pH water) after cleaning the coil, they can deteriorate the aluminum fins quickly. Certain household cleaners, such as bleach, vinegar, and hydrochloric acid are corrosive to aluminum and should not be used. Moreover, some cleaning agents which may be suitable for aluminum may not be advised for copper, thus, both metals must be taken into consideration when choosing the appropriate agent.
Corrosion Prevention
Protective coatings may prevent or slow coil corrosion in high-risk areas. For this reason, condenser coil coatings have become a popular choice for HVAC equipment manufacturers and maintenance organizations. Coatings can be applied by the manufacturer during production or by a service technician after the system has been installed.
The coil coating that is applied in the factory is dipped and baked on, so that the application is even and covers the entire coil. If the coating is applied in the field, the coating is likely to be less evenly applied and therefore, less effective. If the field-based coating is too thick, the coil’s fins may be difficult to straighten after hail damage. And because the entire coil may not be coated, corrosion can still occur. Finally, if the coil is not properly cleaned before the coating is applied (or if it is coated after corrosion has already begun), the full benefit of corrosion prevention will not be realized.
Conclusion
While aluminum is ideal for HVAC condenser coil construction, due to its natural corrosion prevention characteristics, no metal is completely immune from corrosion. Insurance professionals would be wise to understand the factors that contribute to coil corrosion, and the steps that can be taken to mitigate its impact on HVAC claim settlement options.
High winds typically accompany a variety of severe weather conditions, including tornadoes, hurricanes, and thunderstorms. Regardless of the storm type, high winds can be the catalyst of catastrophic damage to roofs, siding, fences, and HVAC systems. With high enough wind speeds, condensing units can be blown over or flying objects and debris can damage the coil. Similar to hail damage, wind damaged HVAC systems can often be repaired to restore the insured’s system to pre-loss condition, making this an important peril for adjusters to understand, particularly as wind risks increase during tornado and hurricane seasons. Our HVAC Wind Damage Adjuster Guide reviews the most common wind risks to HVAC systems, how these losses can be repaired, and a breakdown of how wind claims are recategorized after HVACi’s onsite inspection.
Hail damaged condenser coils can often be straightened using a fin combing tool
The harsh coastal environment caused the severe corrosion of this condenser coil
A hail damaged condenser coil that required replacement because the corroded fins were too brittle to straighten