Ri$k Happens: When even the AC can’t handle the heat

Aug. 07, 2022 - By Angela Cady, AIC - Loss Analyst, ARA Insurance

A rental store employee discovered one morning that the electricity was out. The air inside the building was muggy and hot. After a quick inspection of the property, he discovered what appeared to be fire damage to their air conditioning unit. A nearby wall of their building sustained minimal damage as well. Thankfully, the fire had not spread. A fire inspector determined a short had caused the fire which melted the wiring.

The rental store turned in a claim to their insurance carrier for the ruined air conditioning unit and the damage to their building. The loss will be handled according to their policy language.

Extreme temperatures can strain air conditioning units. Many parts of the nation are experiencing intense heat waves, which does not help. Not every occurrence can be foreseen or prevented but lessen your risk for issues by ensuring your air conditioning unit(s) are properly maintained and inspected by a certified HVAC technician. Also, make sure the area around them is clear of any flammable material.

This item, provided by ARA Insurance, Overland Park, Kan., contains safety tips and is intended to help readers better understand and manage risk. For more safety and risk management information, customers of ARA Insurance can log on to ReSource. Access is free, so if you haven’t signed up yet, contact your agent or call 800-821-6580.