Your insurance provider will cover damage to your air-conditioning unit if it results from a covered peril, such as a tree falling. However, damage from wear and tear or lack of maintenance usually isn't covered. Homeowners insurance covers damage to your dwelling and belongings, protects you from liability lawsuits, and pays for additional living expenses if your home becomes inhabitable. This coverage includes your home's mechanical systems, including air conditioning units. Standard homeowners insurance typically covers damage to AC units resulting from one of the specific causes listed in your policy.