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.

 

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