HVAC Non-Covered Charges (NCC's)

HVAC Non-Covered Charges (NCC's)

Purpose

This article provides guidance on common HVAC code upgrades and installation‑related modifications that may be required during a repair or replacement. It helps agents identify non‑covered items, understand why these charges may apply, and explain coverage limitations to customers.

Notes
You may see labor charges listed as a non-covered cost. This is due to the fact we would not cover the labor to complete the non-covered work.

Electrical Modifications and Code Upgrades

Descrip
tion

A new system may require electrical parts to be updated or upgraded. This can include a new disconnect box, new electrical whip, larger-sized breakers or fuses, updated thermostat, or low-voltage wiring.

Even if the old system was running, the new equipment may have different electrical requirements.

  1. Whip and Disconnect Modifications
  2. Low-Voltage wiring upgrade
  3. Outdoor Thermostats
  4. Breaker Upgrade for an Air handler

Explanation

Sometimes electrical charges can come up during a replacement because the home warranty covers the failed item, but not every cost tied to installing the new equipment.

For example, the new system may require electrical updates like wiring, a breaker, or a disconnect to support a safe and proper installation. Those costs are considered installation-related rather than part of the covered failure itself.

The good news is the warranty is still covering a large part of the replacement expense, which can help save you quite a bit compared to paying the full cost on your own.

Relevant Reply

“I understand how unexpected extra charges can be.

Sometimes a repair or replacement requires electrical updates to safely install the new equipment. Those installation-related costs, like wiring or breaker updates, are not covered under the warranty.

The good news is the warranty is still covering a significant portion of the overall cost.”


Airflow and Ductwork Changes

Description

A new system may also need changes to the duct system to help air move properly through the home. This can include adjusting or replacing the supply and return connections, making the return duct larger, adding a better filter cabinet, and sealing duct leaks

A new system will not perform properly if the airflow is poor.

  • Supply Plenum modifications
  • Return Plenum modifications
  • Mastic Seal
  • Filter Box upgrade
  • Title 24 duct testing

Explanation

In certain situations, airflow or ductwork changes may be necessary to support the new equipment or help the system perform properly. Because these needs can vary based on the home’s setup and installation requirements, they fall outside the scope of home warranty coverage.

The home warranty covers the system itself, including the necessary parts or equipment, as well as standard labor required for the repair or replacement. Work beyond that scope, such as supply or return plenum modifications, duct sealing, filter box upgrades, or required duct testing, is not covered and would be the homeowner’s responsibility. Any costs for this additional work would be paid directly to the service provider.

Relevant Reply

“I understand how unexpected extra charges can be. In some cases, the new system may also need airflow or ductwork changes, so it can be installed properly and work effectively.

Your home warranty does help by covering the failed covered equipment and standard labor.

Work such as modifications, filter box upgrade, duct sealing, or duct testing is considered additional installation-related work. Those costs are not covered under the warranty and would be paid directly to the service provider.

The good news is the warranty is still covering a significant portion of the cost.”


Drain Line and Overflow Protection

Description

A provider may be required to upgrade or modify a drain system that removes condensation from the indoor unit. This can include replacing or correcting the main drain line, fixing the slope of the pipe, adding a secondary drain pan, or installing safety switches that shut the system off if water backs up.

This is especially common when the unit is installed in an attic or above a finished area of the home

  1. Drain Line Modifications
  2. Drain pan upgrade (secondary drain pans)
  3. Condensate drain pump (code upgrade)
  4. Float Switch (Code upgrade)

Explanation

Your home warranty covers the failed covered item and standard labor when there is a mechanical failure due to normal wear and tear. In some cases, though, a repair or replacement also requires drain line or overflow protection updates, so the system can be installed safely and operate properly.

These updates can include things like drain line modifications, a secondary drain pan, float switches, or other overflow safety components. Because those items are related to installation requirements and system protection, rather than the covered mechanical failure itself, they are not covered under the home warranty.

Relevant Reply

I understand how unexpected extra charges can be. Sometimes a repair or replacement also needs drain line or overflow protection updates to make sure the system is installed safely and works the way it should.

Things like drain line changes, a secondary drain pan, or float switches are considered installation-related items instead of part of the actual covered failure, so they are not covered under the warranty.

The good news is the warranty is still covering a significant portion of the cost.”


Refrigerant Line Work

Description

The copper refrigerant lines that connect the indoor and outdoor units may also need attention. Depending on their size, condition, location, and compatibility with the new system, the lines may be required to be replaced.

The existing line set cannot always be reused just because it is already there.

  1. Copper Modifications (extending current line sets with copper fittings)
  2. New Line sets (modifications when current line sets are undersized for the new equipment)
  3. If the line size is out of spec, the system's warranty may be impacted.

Explanation

In some cases, when major repairs or replacements are completed, refrigerant line modifications or upgrades may be required to accommodate newer equipment. This type of work is not addressed under the home warranty, as it can depend on the size, condition, location, and compatibility of the existing line set.

The warranty covers the system itself, including the parts or equipment needed for the repair or replacement, along with standard labor to install that equipment. Any additional work, such as copper modifications, line set replacement, or other installation-related changes, is not covered under the warranty and would be an out-of-pocket expense. The service provider would be paid directly for this additional work.

Your warranty will cover the failed covered equipment and standard installation labor only.

Relevant Reply

“I understand how unexpected extra charges can be. In some cases, when major repairs or replacements are completed, refrigerant line updates may be needed to support the new equipment.

The warranty covers the system itself, including the parts or equipment needed for the repair or replacement, along with standard labor to install that equipment.

Any additional modifications or a new line set would not be covered under the warranty and would be considered an out-of-pocket expense. The service provider would be paid directly for that additional work.

The good news is the warranty is still covering a significant portion of the cost.”


Platform, Pad, or Pump Ups

Description

The provider may need to update the area where the equipment sits. Outside, this can include replacing the pad, stand, or supports under the condenser and making sure the unit is level and secure. Inside, the coil or air handler may need a new platform, hanging kit, or other adjustments so it can be installed safely and serviced properly.

  1. Pad Modification
  2. Platform for the air handler
  3. Pump Ups (Code Upgrade)
  4. Hurricane Straps (code Upgrade)

Explanation

Sometimes, when equipment is being repaired or replaced, the area supporting that equipment also needs to be updated so the new system can be installed safely and correctly. Outside, that may mean replacing or modifying the pad, stand, or supports under the unit. Inside, it could mean adding or adjusting a platform, hanging kit, or other support for the air handler or coil.

Your home warranty covers the failed covered equipment and standard labor for the repair or replacement. However, items such as pad modifications, air handler platforms, pump-ups, or hurricane straps are considered installation-related or code-related updates, so they are not covered under the warranty.

Relevant Reply

“I understand how unexpected extra charges can be. In some cases, new equipment may need the area around it to be updated so it can be installed safely, supported properly, and meet current requirements.

Costs for things like pad modifications, a platform for the air handler, pump-ups, or hurricane straps are considered additional installation-related or code-related work.

Those items would not be covered under the warranty and would be paid directly to the service provider.

The good news is the warranty is still covering a significant portion of the cost.”


Permit Fees

Description

Some full system replacements may need a permit from the city or county before the work can be done.  Permit fees are charges set by the local area and are usually not part of the actual equipment or labor cost. 

These fees help cover the review and inspection of the installation to make sure the new system meets local code requirements. The amount can vary depending on where the home is located, and in some cases, an inspection may be required after the installation is finished.

Explanation

Sometimes, when a major repair or replacement is completed, a permit may be required by the city, county, or local municipality before the work can be performed. Permit requirements can vary based on where the home is located and the type of work being done.

Your home warranty covers the failed covered equipment and standard labor for the repair or replacement. However, permit fees are considered a local requirement tied to completing the installation, so they are not covered under the warranty and would be an out-of-pocket expense.

Relevant Reply

“I understand how unexpected extra charges can be. In some cases, local rules require a permit before certain repair or replacement work can be completed.

Requirements can vary depending on the area and the job being done.

Permit fees are considered a local requirement rather than part of the covered mechanical failure, so they are not covered under the warranty and would be paid separately.”

The good news is the warranty is still covering a significant portion of the cost.”


Disposal/Reclaim

Description

The provider may also need to remove the old equipment and handle the disposal of materials from the repair or replacement. In some cases, refrigerant must be properly recovered and reclaimed per the EPA, and old equipment or debris must be hauled away and disposed of according to local requirements. 

  1. Haul away old equipment
  2. Disposal fees
  3. Refrigerant recovery/reclaim
  4. Debris removal
  5. Removal of old pads, platforms, or related materials.

Explanation

Sometimes, when equipment is replaced, the old unit or materials must be removed and properly disposed of. Disposal requirements can vary depending on the type of equipment being removed and local handling requirements.

Your home warranty covers the failed covered equipment and standard labor for the repair or replacement. However, disposal or haul-away charges related to removing old equipment or materials are not covered under the warranty and would be an out-of-pocket expense.

Relevant Reply

I understand how unexpected extra charges can be. When equipment is replaced, the old unit or materials sometimes must be removed and disposed of properly. Those costs are considered additional services not covered under the warranty.

The good news is the warranty is still covering a significant portion of the cost.”  


Code Upgrades

Description

The service provider may be required to make updates to bring the installation up to current code or safety requirements. These are items that may not have been required when the original system was installed, but are now needed for the new installation to be completed properly and meet local requirements.

  1. Electrical upgrades
  2. Secondary drain pan
  3. Float switch/overflow protection
  4. Hurricane straps
  5. Equipment disconnects
  6. Other code-required safety or installation updates

Explanation

Sometimes, when a repair or replacement is completed, additional updates are needed to meet current building, safety, or installation code requirements. These updates can vary based on local regulations and the specific setup of the home.

Your home warranty covers the failed covered equipment and standard labor for the repair or replacement. However, any additional work or materials needed to meet current code requirements are not covered under the warranty and would be an out-of-pocket expense.

Relevant Reply

“I understand how unexpected extra charges can be. In some cases, once repair or replacement work begins, updates may be required to meet current code or safety standards, even if those items were not part of the original failure.

Costs tied to code-related updates are considered separate from the covered mechanical failure, so they are not covered under the warranty.

The good news is the warranty is still covering a significant portion of the cost.”

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