HVAC – Major Corrosion


We investigated the cause of damage and the repairability of a non-serviceable roof-mounted heating ventilation and air conditioning (HVAC) equipment. The insured suspected the equipment was damaged in a weather-related event, particularly after finding a cover for the HVAC unit on the ground. ILC collaborated with the re-insurer to develop an equipment breakdown policy.


  • At the time of the site visit, we observed a multi-unit commercial building with three independent HVAC units.
  • It was identified and documented damages to the three independent systems including clogged air filters and major corrosion.


  • While the insured believed the inoperable HVAC unit was a result of exposure to rainwater due to a missing service access cover, ILC determined that the extent of severe corrosion damage was a result of continued operation with failed components.
  • After correspondence with the OEM, it was determined the best means of returning the insured to operation quickly and cost-effectively was with a replacement quoted for $7,850.