Does homeowners insurance cover furnace? A furnace is an essential part of a home since it provides heat and comfort, especially during cold seasons. However, furnaces can break down due to mechanical failure, age, or even unexpected damage.
When this happens, most homeowners wonder if their insurance policy will cover the repair or replacement costs. While Homeowners insurance is designed to protect against unexpected damage to a home’s structure and essential systems, its coverage can be complex and varies based on the cause of the damage.
What’s more, insurance may cover damages caused by sudden and accidental perils, such as fires, storms, or vandalism, but it often excludes coverage for normal wear and tear or mechanical breakdowns.
When Does Homeowners Insurance Cover Furnace Repairs or Replacement?
This insurance model typically covers furnace damage under certain circumstances. The key factor in determining coverage is the actual cause of the damage.
Insurance policies usually provide coverage if the furnace is damaged due to a covered peril. Here are some instances where that happens:
- If your furnace is damaged due to vandalism or is stolen, your policy may provide compensation for repairs or replacement.
- If lightning strikes your home and damages the furnace, or if a powerful storm causes structural damage affecting the furnace, insurance may help cover the costs
- If a pipe bursts due to freezing temperatures and floods the furnace, homeowners insurance may cover the repair or replacement costs.
- If a fire destroys your furnace, the replacement cost is generally covered under your dwelling or personal property coverage.
When Homeowners Insurance Does Not Cover Furnace Issues
While this insurance offers coverage for certain unexpected damages, it does not typically cover routine maintenance or breakdowns caused by age and wear and tear. Here are some common exclusions:
- Furnaces naturally wear out over time. If the breakdown is due to aging components, homeowners insurance will not provide coverage.
- If your furnace stops working due to internal component failure or wear over time, this is considered a maintenance issue and is not covered.
- If the furnace breaks down due to poor maintenance, such as failure to change air filters or ignoring minor issues, insurance will not cover the repair.
- If the furnace fails due to incorrect installation or a manufacturer defect, homeowners insurance will not cover the issue. However, the manufacturer’s warranty might offer protection.
These are the exclusions to this coverage policy where it does not offer coverage for furnace defects.
Alternative Coverage Options
Since homeowners insurance does not cover every furnace issue, here are some alternative coverage options available to ensure protection:
- Home Warranty: A home warranty plan can help cover repair or replacement costs for furnaces and other home systems that fail due to age or wear and tear.
- Extended Manufacturer Warranties: Some furnace manufacturers offer extended warranties that cover parts and labor beyond the standard warranty period.
- HVAC Service Plans: Many HVAC companies offer service plans that provide regular maintenance and discounted repair costs.
Steps To Take When Filing An Insurance Claim For A Furnace
If your furnace has been damaged due to a covered peril, follow these steps to file an insurance claim:
- Firstly, you must document the damage by taking photos and videos of the damaged furnace and the surrounding area.
- Notify your insurance company as soon as possible and provide details about the damage.
- Check your policy to confirm whether the damage is covered and understand any deductible that may apply.
- Your insurer may send an adjuster to assess the damage and determine coverage eligibility.
- Get quotes from licensed HVAC professionals for repair or replacement costs.
- Also, you can stay in touch with your insurer to track the status of your claim and ensure timely processing.
Frequently Asked Questions
Will Homeowners Insurance Cover A Furnace Replacement?
Homeowners insurance will only cover furnace replacement if the damage was caused by a covered peril, such as a fire or storm. However, it does not cover replacement due to age or normal wear and tear.
Should I Get A Home Warranty For My Furnace?
A home warranty can be beneficial if you want coverage for furnace repairs or replacements due to age-related failures. Also, it provides protection beyond what homeowners insurance offers.
Does Homeowners Insurance Cover Furnace Leaks?
If a furnace leak is caused by a sudden and accidental event, such as a burst pipe, insurance may cover the repairs. However, leaks due to neglect or wear and tear are not covered.