Category: HVAC Equipment

Why Some HVAC Systems and Water Heaters Use Flue Pipes and Chimney Liners

HVAC systems that utilize a gas- or oil-fired furnace or boiler are equipped with flue pipes to vent harmful fuel combustion gases out of the property safely as they exit the heating equipment. Gas and oil water heaters are also connected to flue pipes. It’s critical for adjusters to understand how they work and when they can receive evaluation support for claims with these components.

Chimney liners provided added insulation to keep exhaust gases from condensing.

Flue pipes begin at the connection to the boiler or furnace where the combustion gases exit the inducer motor housing. Gas and oil water heaters have a flue pipe connected at the top. The exhaust inside a flue pipe must remain warm while traveling to the exterior of the property so that the gas does not condense into a corrosive liquid and fall back into the system.

Some systems are located close enough to the roof or the wall they penetrate that they do not require chimneys to prevent condensation of the flue gases from occurring. However, flue pipes are often connected to heating equipment installed in the lowest areas of a house or building, such as a basement or crawlspace, but the exhaust is vented out of the top of the property, which can be several stories high. Similarly, some flue pipes are long enough that even indoor temperatures are cool enough to condense the flue gases if not insulated by a chimney.

Flue caps ensure water doesn’t go back down into the chimney or flue pipe.

Chimneys are typically built with chimney liners inside of them for added insulation from cold ambient air temperatures and winds that could otherwise cool the flue pipe and allow the gases to condense. Chimney liners also assist with airflow and ventilation of the rising gases. Flue pipes end where they connect to the chimney liner, which are usually constructed of varying forms of metal or clay and run the entire length of the brick-and-mortar chimney. Chimney liners terminate with a cap on top to prevent water from entering. When settling claims with these items, adjusters should make sure to get thorough evaluations for an accurate cause of loss and scope of damage.

HVACi is an all-in-one HVAC system and Refrigeration claims solution and desktop pricing option for insurance carriers. While HVACi does not inspect the brick-and-mortar structures of chimneys, the expert team does assess HVAC system items connected to them, including the entire flue pipe, chimney liner, and the cap on top. A masonry specialist must be consulted for chimney assessments and price verifications. HVACi also inspects gas and oil water heaters when they are part of the adjuster’s claim assignment. HVACi’s national network of technicians includes some who specialize in chimney liners and some who are equipped with appropriate scope tools that can enter and travel the length of the chimney to inspect the chimney liner. The HVACi team matches each claim with a knowledgeable, vetted technician in the loss location to ensure accurate, comprehensive, and timely assessments.

Contact HVACi or submit a claim to learn more about this specialized service and how HVACi can help adjusters more accurately settle these claims.

 

Less Common Commercial HVAC Systems Adjusters Should Be Familiar With

Most commercial policyholders use package units and split systems; however, other types of HVAC systems are prevalent in claims. Among them are exhaust fans, chillers, and make-up air units. It’s important adjusters know a little about each type of HVAC system – even less common ones – to ensure the most accurate settlement decisions.

Exhaust Fans

According to the CCG IQ 2020 Annual Report, exhaust fans were the third most frequently claimed system type. They are found in commercial kitchens, offices, manufacturing, and warehouse buildings and are used to remove stale air, cooking odors, and excessive moisture or heat. Among their advantages are ventilating a space to provide fresh air, improving air quality for a healthier atmosphere indoors, and removing moisture to prevent mold growth.

Exhaust fans operate by a motor turning either fan blades or a blower wheel, depending on the type, to pull contaminated air out of the building. Belt driven units rely on a belt to connect the fan or blower to the motor. In a direct drive unit, the motor is connected to the fan blades or blower wheel by a shaft or axle, and the blades rotate with the motor.

Downblast exhaust fans, left, are best for applications unrelated to cooking; whereas, upblast exhaust fans trap grease remnants left in the air so they don’t cause damages to equipment or the roof.

Policyholders may use an upblast or downblast exhaust fan, depending on their needs. Upblast exhaust fans are ideal for spaces with commercial kitchens, including restaurants or hotels. Air is blown out of the top, and, more importantly, a sealed compartment protects the motor from the heat, moisture, and contaminants being removed. Additionally, a secondary grease trap captures condensed grease to prevent it from getting onto the roof.

In contrast, downblast exhaust fans should never be used for kitchens or in places where contaminated air has grease. Downblast fans eject the air down toward the fan base and roof, which protects the motor from precipitation but could be a fire hazard if grease accumulated there. Downblast exhaust fans should be used to remove heat, stale air, and odors.

Among the predominant causes of loss are hail, wind, and smoke and fire; however, almost a third of the exhaust fan systems were in proper working condition at the time of assessment.

Chillers

Chillers are commonly used in airports, hospitals, hotels, shopping malls, restaurants, temporary structures, and industrial or medical facilities. They transfer heat out of a space using water or a water solution instead of air. Policyholders may have water-cooled or air-cooled chillers; however, the initial process is the same.

Warm water enters the evaporator unit from the primary return coming from the building’s Air Handler Units (AHUs) and its heat is transferred to the refrigerant. The now cooler water is then pumped by a water pump through the primary supply back to the AHU. A blower and the ductwork bring in air from the facility, and the water absorbs its heat. The now cooler air is supplied back to the conditioned space through the ductwork. This process is similar to that of a traditional HVAC split system or package unit. The warmer water then returns to the evaporator to restart the process.

The processes for how water-cooled and air-cooled chillers work are almost identical except for the method used to transfer heat from the refrigerant.

The difference between air-cooled and water-cooled chillers is how the refrigerant transfers out the heat it absorbed from the water. Refrigerant moves from the evaporator to the compressor, which increases the refrigerant’s pressure and temperature, and then it goes to the condenser. In water-cooled chillers, water surrounds the refrigerant pipes to absorb the heat and then is pumped into a cooling tower to release the heat. Meanwhile refrigerant goes through the expansion valve to reduce its pressure and temperature and restart the process. In air-cooled chillers, fans bring outside air through the condenser, which absorbs heat from the refrigerant, and expels it to the ambient air – much the same as the process for traditional split systems and package units.

Despite the complex processes, chillers may be preferred over traditional split systems and package units because water conducts heat 25 times better than air. Each chiller type also has advantages. Water-cooled chillers are better at conducting heat, are more consistent, and are best for medium to large facilities, though they require a stable water supply and a lot more maintenance. Air-cooled chillers, which are better for small to medium facilities, have lower installation costs, less maintenance, and require less space.

Among the perils affecting chillers are corrosion and poor maintenance, which are linked with wear and tear, as well as electrical problems caused by wear and tear or high voltage surges.

Make-Up Air Units

Make-up air units aren’t claimed as often; however, when they are, make-up air units are frequently determined to be non-damaged, making damage assessment essential. As the name implies, make-up air units compensate for air that was removed through process exhaust fans or other mechanical means. While exhaust fans draw air out of a facility to the outside, make-up air units reclaim fresh air from outside to bring it into the building. However, unlike ventilation fans that bring in outside air without changing its temperature, make-up air units can temper air so the heating or cooling system won’t have to work harder or waste energy.

Make-up air units provide tempered fresh air into spaces that have a lot of mechanical ventilation taking air out.

Make-up air units are typically used in industrial or other similar commercial applications, such as restaurants, warehouses, or distribution centers. These are areas where more ventilation is required to improve air quality and protect health. If too much air has been exhausted by mechanical means and isn’t replaced, the space can become depressurized. Having a make-up air unit deliver fresh air can restore the pressure and balance and contribute to the overall Indoor Air Quality, which may be part of a local, state, or federal regulation.

Types of make-up air units include direct gas-fired, indirect gas-fired, and non-gas fired. Direct fired units heat outdoor air directly through combustion of natural gas by an air burner. Indirect gas-fired make-up air units have combustion products discharged through a flue rather than within the supplied air. Non-gas fired options use electric, hot water, or steam heat as an alternative to gas.

Predominant causes of loss for make-up air units are hail, wind, and high voltage surge. Make-up air units are most frequently included on hail claims if they are on the roof. But since they don’t have any coils and have strong metal cases, they typically aren’t damaged by hail. Adjusters should make sure they aren’t settling for non-damaged equipment.

Consider Expert Assessment Before Settling a Claim

Due to the complexity of commercial HVAC systems, carriers can benefit from expert evaluations. HVACi is the nation’s leading provider of HVAC and Refrigeration damage assessment services for insurance carriers. Our team uses its HVAC system knowledge and experience to enable adjusters and insurance personnel to confidently settle claims based on data-driven testing, actionable reports, and prompt cycle times.

Dealing with a claim that has an HVAC system you aren’t familiar with? Submit a claim to receive cause of loss, scope of damage, and repair and replacement recommendations to return your policyholder’s system to pre-loss condition quickly and fairly.

Factors That Influence Whether to Repair or Replace An HVAC System

To replace or not to replace? That is the question. For an adjuster, this query about whether a full HVAC system replacement is necessary shouldn’t be as daunting or as vague as Hamlet debating life or death. There are definitive answers for how to best resolve your policyholders’ claims. You just need all the necessary information to determine accurate claim settlements in a timely manner.

On average, less than half of the HVAC systems that HVACi assessed needed a full-system replacement. Cause of loss and scope of damage are two critical factors in determining whether a repair or a replacement is required to return an HVAC system to pre-loss condition. Here are some considerations that also play a part.

Age of an HVAC System

The age and how well a policyholder maintains an HVAC system could impact whether the equipment requires a replacement.

The age of equipment may have a supporting role in whether a repair or replacement HVAC system is necessary. For example, residential HVAC systems typically have a median lifespan of 15 years, according the ASHRAE. How well the policyholder has maintained an HVAC system increases its lifespan, but a failure to do so could affect the cause of damage and its extent.

When considering the claim, adjusters should evaluate the age and condition. The problem may be common for systems of that age and type, which could point more to age-related wear and tear in lieu of a different peril. In this case, the policy will determine if any action – repairs or replacements – is covered based on the cause of loss.

It’s critical to determine how damage was sustained before settling for a repair or a replacement.

Cost of Repairs Versus A Replacement

In this claim HVACi assessed, a bent HVAC system gas line directed the flame into the burner compartment causing multiple components to be charred and melted. While repairs could have been possible, the cost would meet or exceed that of a replacement.

Cost takes centerstage only when the price for repairs exceeds that of a full replacement. The average expense to repair a residential HVAC system is roughly $1,700; however, replacement costs are nearly $7,500. Adjusters should consider if the HVAC system can be returned to pre-loss condition with a minor or a major repair instead of an unnecessary replacement.

There are times when the damage a system sustains requires repairs that are more than a replacement would cost. This could occur if multiple major components are damaged or labor costs are too high. A scenario where this might be the case is a fire occurring in an HVAC component that also causes soot and smoke to spread through the system’s ductwork and can’t be cleaned.

To compare replacement and repair pricing most accurately, it’s important adjusters first verify market costs for labor and equipment. Location, system type, and the individual contractor may all be impacting the claimed amount. Adjusters should base decisions – and settlements – on manufacturer equipment availability and true market costs.

HVAC SEER Rating or Refrigerant Compatibility

The DOE updated its required SEER rating standards, which may make equipment from prior to 2023 a mismatch to components made with today’s requirements.

A policyholder’s wants take backstage to what the policy covers. Some insureds may prefer to replace their damaged system with a more efficient one. But this typically doesn’t align with a policy and the goal of only making Like Kind and Quality changes that return a policyholder to pre-loss condition.

However, replacements or more major repairs may be recommended if new equipment could lead to an efficiency rating mismatch. Split systems consist of indoor equipment, including the air handler or furnace, and the outdoor equipment, including the condensing unit. Each are designed with efficiency ratings that work together. If a condensing unit is paired with an air handler that isn’t compatible, it may not operate at all.

Another area of concern is if components don’t use the same type of refrigerant. It is inaccurate that the 2020 R-22 production phaseout means systems that use it must be replaced instead of repaired. However, if a policyholder’s original system runs on R-22 and new equipment, such as a new condensing unit, uses R-410A refrigerant, additional components and processes would be needed to flush out the old refrigerant and use R-410A going forward.

Adjusters should ensure policyholders are advised to obtain the necessary equipment that is a match in efficiency and refrigerant to what they already have so as to not cause further problems to their HVAC system.

HVACi Experts Provide Accurate Resolutions

As you can see, whether a repair or replacement is the most applicable solution to return your policyholder’s equipment to pre-loss condition is specific to the individual claim. It requires a thorough evaluation to consider all the factors.

Take the guesswork out of the equation by submitting an assignment to the experts at HVACi, who provide comprehensive solutions for claims involving HVAC and Refrigeration equipment. Our team delivers detailed, actionable reports that convey cause of loss, scope of damage, and recommended repair or replacement options based on thorough equipment evaluations. Plus, we provide component recommendations that match what the insured already has along with availability and market pricing.

Adjusters should make decisions based on all the necessary information. Don’t let your policyholder’s claim turn into a tragedy by making an inaccurate claims settlement.