Why Insurers Value Modern HVAC Systems in Commercial Buildings

Many people know that they can get discounts on their car insurance and home insurance when they use upgrades. But did you know that this also applies to businesses? If you are looking for ways that you can save money on your business insurance, the first thing you should consider is HVAC system upgrades.

In particular, commercial HVAC system replacement can have a significant impact. Insurance companies love it when your HVAC system is working well and taken care of. We’ll show you why this is below.

The Connection Between HVAC Systems and Insurance Risk

Did you know your HVAC technology may be costing you money on your insurance? Not many people know this, but it’s true. Older systems pose a higher risk, while the newer ones are more efficient and can reduce your chances of problems. That’s why having a company like Fusion Repair upgrade your system is a good idea.

Below, we’re going to show you how the right HVAC technology can reduce your insurance costs.

How Modern HVAC Systems Reduce Insurance Claims

It may be hard to believe. But having a new HVAC system put into your business may save you a lot of money on your business insurance. If you haven’t upgraded your system in a while, you may be in danger of a host of problems. Below are the benefits of having a newer system put in.

Lower Risk of Fire

The newer systems often have features such as safety enhancements and surge protection. There will be lower risks of electrical fires. They’re also more reliable and less likely to break down, which can also cause fires.

Reduced Risk of Water Damage

A big problem with water damage is the risk of damage to your structure and mold. But the newer systems have humidity control, which can reduce claims from water damage.

Smart Monitoring

Many modern systems have smart alarms and sensors. These detect when a leak happens and alert the business owner. When it’s caught fast, the damage is minimized and can be fixed fast.

Just imagine everything that you may lose when there’s a fire or a flood. Not only do you lose all of the equipment in your business, but you may have to shut down your business while the repairs are done. So, you lose money that way. Then you have to worry about the higher premiums from your insurance. It’s much easier to simply upgrade your system than take the chance.

Financial Incentives for Upgrading HVAC Systems

If you know where to look, you’ll find that there are many financial incentives for the business owners who upgrade their HVAC systems.

IRA Tax Credits: When you upgrade to more energy-efficient appliances, such as an HVAC system, you may qualify for these credits. Some things the credits can be used on are:

• Air conditioners
• Furnaces
• Heat pumps

Section 25C: This is a credit that allows a homeowner to claim 30 percent of the price of certain improvements that are energy efficient. This has an annual limit.

Specific Equipment Tax Credits:

• Heat pumps: Up to $2,000
• Air Conditioners & Furnaces – Potentially $600 available for the qualified furnaces/air conditioners.

Steps to Leverage HVAC Upgrades for Insurance Benefits

So, how can you leverage your HVAC upgrades? Here are some simple ways that you can show your insurance company that you’re serious about your business.

• Maintenance: You don’t want to ignore regular maintenance. This means changing filters, having regular tune-ups, and sealing the ducts.  This won’t stop all problems, but it can help reduce repairs.
• Upgrade Inefficient Equipment: New equipment is more efficient than the older equipment. So, consider a new thermostat or look into the air conditioners and heaters with Energy Star on them. You may find your premiums are lower.
• Ask Your Provider – Many companies offer discounts of their own. Check out your company’s website to see what they offer.
• Keep Receipts – Anytime you do an upgrade on your HVAC system, keep your receipts so that you can show your insurance company what you have done.

Taking the time to take these steps can make a big difference in your business. Not only can it make your business much safer and more efficient, but it can save you money on your bills and on your insurance premiums.

In Conclusion

Upgrading your HVAC system will not just help you save money on your power bills, but it will also help you protect your business from potential problems. Additionally, it can help you save money on your insurance bills. If you haven’t had a commercial HVAC system replacement to upgrade your equipment in a while, it’s time to consider it and join one of the popular  HVAC trends to save money.  You will be happy that you did when you see the results.