A recent study revealed that insurers overpaid on claims submitted for damaged HVAC units by 65% in the first half of 2011. The study, conducted by HVAC Investigators, revealed that overpayment was a result of property/casualty insurers that paid for replacements of entire HVAC systems, when only minor, less expensive repairs were required.

"Our research found that the average claim submitted to insurance companies was the result of a homeowner being told by an HVAC company that their unit was in need of a full replacement, when in actuality, a minor repair would bring the system back to pre-loss condition," stated Damon Stafford of HVAC Investigators. "It becomes a self-fulfilling prophecy ... homeowners experience an issue, contact a local HVAC contractor, and in turn unknowingly file a fraudulent claim. That's in essence how the game has worked for the past 30 years."

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