HVAC contractor working on an outdoor compressor. Cost increases to labor and HVAC equipment are having a trickle-down effect on insurance carriers. (Photo: Shutterstock)

It's difficult to find many goods or services that haven't been impacted by inflation. Those effects have trickled down to the HVAC industry, and have extended to manufacturers, contractors, policyholders and insurance carriers.

HVAC manufacturers have reported several reasons for price hikes. Among them are the change in costs in other industries, including for raw materials, and fuel and transportation needs. Insurance professionals may find themselves paying higher settlements to account for the increased labor and equipment costs for both individual components and full HVAC systems. Another consequence is additional claims leakage if the cause of loss and scope of damage aren't verified before the claim is settled.

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
NOT FOR REPRINT

© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Coverage & Policy Issues
Investigative & Forensics
Personal Lines
Loss Control