Deteriorating Insulation
The inside of your Fan coil unit is lined with insulation that serves the purpose of being a thermal break and help absorb sound during operation. 99% of factory units are lined with some type of fiberglass material that has a special coating on the air stream side. This coating is there to prevent any fibers from entering the air stream which would carry them into the air in your suite. This coating breaks down over time and is easily damaged if improper servicing and/or repairs are performed. While fiberglass has been seen in a negative light most of the studies this is based on have been debunked (in 2001 the IARC moved the classification of these fiberglass fibers from “possibly carcinogenic” (Group 2B) to “not classifiable as to its carcinogenicity to humans” (Group 3). This does not mean it is harmless. Any foreign substance entering our lungs is not healthy. Glass fibers in the air cause irritation and can trigger more sever reactions in some.
Other issues are once the coating has been damaged, pieces of the now lose insulation break off and fall into the fancoil. This can lead to backed up drains (Flooding), retention of moisture (Mold growth) and build up on coil (Air flow).