Homeowners insurance covers furnace replacement only in specific situations. If your furnace is damaged or destroyed by a covered peril — like fire, lightning or a burst pipe — your policy's dwelling coverage helps pay for repairs or replacement. However, insurance won't cover breakdowns due to wear and tear, poor maintenance or age.
Does Homeowners Insurance Cover Furnace Replacement?
Updated: June 6, 2025
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Key Takeaways
Standard home insurance policies cover built-in appliances like your furnace.
Home insurance only repairs or replaces furnaces if they get damaged by a covered peril, like a hailstorm, a fire or theft.
Home insurance will not cover the damages if your furnace breaks down due to a lack of maintenance or a flood.
Is Furnace Replacement Covered by Homeowners Insurance?
When Does Homeowners Insurance Cover Furnace Replacement?
Furnace replacement is typically covered under the dwelling coverage portion of your homeowners insurance when it’s damaged by a sudden, unexpected event. Common covered perils include:
- Fire or smoke damage
- Water damage from a burst pipe or accidental overflow
- Lightning or hail
- Explosions
- Falling objects
- Theft or vandalism
For example, if your furnace is destroyed in a house fire or severely damaged by water after a frozen pipe bursts, your insurer would likely cover the cost to replace it.
When Is Furnace Replacement Not Covered by Homeowners Insurance?
Homeowners insurance will usually not cover a furnace that has been damaged due to a lack of maintenance or normal wear and tear. These are causes and circumstances that are deemed the responsibility of the homeowner.
By understanding what isn’t covered, you can maintain the upkeep of your furnace and ensure you’re only filing legitimate claims.
Normal Wear or Tear
Damage due to the furnace's age or general use is not covered. Over time, parts naturally degrade and need replacement, which is considered the homeowner's responsibility.
Lack of Maintenance
If the furnace breaks down due to poor or lack of maintenance, the insurance will not cover the costs. Regular servicing is crucial to keep it in working condition.
Intentional Damage
Any damage caused deliberately by the homeowner is excluded from coverage.
Utility Failure
Damage from external utility issues, such as electrical surges or gas leaks outside your home, typically isn't covered.
Manufacturer's Defect
If your furnace breaks down due to a manufacturing defect, the responsibility usually falls to the manufacturer, not the insurance.
FURNACE REPAIRS VS. REPLACEMENT: WHAT’S COVERED?
Depending on the type and extent of damage, your policy might cover either repair or replacement. If the furnace can be fixed affordably after a covered peril, your insurer may approve a repair claim. However, if the furnace is beyond repair, they may approve a replacement — up to your dwelling coverage limits.
How to File a Furnace Replacement Claim
Filing a homeowners insurance claim for a broken furnace involves documenting the damage and contacting your insurer. Remember that each insurance company may have specific procedures, so it's essential to communicate clearly and follow its guidance throughout the claim process. Typically, here are the steps in filing a claim for a broken furnace:
- 1
Document the Damage
Before touching anything, take photos or videos of the damaged furnace. This visual evidence is crucial for your insurance claim.
- 2
Review Your Policy
Check what your homeowners insurance policy covers, especially for HVAC systems.
- 3
Contact Your Insurance Company
Inform your insurance provider about the broken furnace as soon as possible. Fill out the claim forms that they will send you with accurate and detailed information about the furnace damage.
- 4
Schedule an Inspection
Your insurance provider may send an adjuster to inspect the damage and assess repair or replacement costs.
- 5
Gather Repair Estimates
Obtain quotes from licensed professionals for repairing or replacing the furnace. These estimates will be used in the claim evaluation.
- 6
Review Settlement Offer
Once the claim is processed, review the settlement offer carefully. Ensure it covers the necessary costs before accepting.
- 7
Complete the Repairs
After the claim is settled, proceed with the repair or replacement of your furnace as agreed in the claim.
Maintenance Tips to Prevent Furnace Claim Denials
Regular furnace maintenance ensures longevity and efficiency. Here's how to keep your furnace in top condition:
- Change Filters Regularly: Replace or clean the furnace filter every three months or more frequently if you have pets or a dusty environment. This keeps the airflow unobstructed and reduces strain on the furnace.
- Have Professional Inspections: Get a qualified technician to inspect and service your furnace once a year. This can identify issues before they become significant problems.
- Keep the Area Clear: Make sure the area around your furnace is clear of debris, dust and flammable materials. This reduces fire risks and improves efficiency.
- Check the Thermostat: Regularly test and calibrate your thermostat to ensure it's functioning correctly and efficiently controlling your furnace.
- Inspect Venting Systems: Check the furnace's venting system for blockages, leaks or corrosion. Proper venting is crucial for safety and performance.
- Monitor for Odd Noises or Smells: Observe any strange noises or odors coming from the furnace.
- Educate Yourself on Your Furnace: Understand how your furnace works, its model and specific maintenance needs. This knowledge is valuable for troubleshooting and discussing issues with professionals.
With regular upkeep, you can extend the life of your furnace and avoid unexpected breakdowns that your insurance might not cover.
Home Insurance Coverage for Heating System Replacement: Bottom Line
Homeowners insurance covers furnace replacement only when a covered peril causes the damage, not for age, neglect or gradual breakdowns. To avoid costly surprises, keep your furnace well-maintained and understand your policy limits. For broader protection, explore additional coverage options and compare quotes from multiple home insurance providers.
Broken Furnace Under Homeowners Insurance Coverage: FAQ
Your home's furnace is a vital built-in appliance typically covered by homeowners insurance. Understanding furnace maintenance and the claim filing process helps you protect your investment and handle covered damage. We answered common questions about furnace coverage.
Does homeowners insurance cover a furnace damaged by a power surge?
Not usually. Power surge damage is often excluded unless caused by lightning. You may need equipment breakdown or surge protection coverage.
Will insurance cover furnace replacement due to age?
No. Age-related breakdowns are considered normal wear and tear and are not covered.
Is water damage from a leaking furnace covered?
Water damage may be covered if it's sudden and accidental, but the cost to repair or replace the furnace itself likely isn't.
Can I add extra coverage for my furnace?
Yes. Consider a home warranty or equipment breakdown coverage to protect your furnace against mechanical issues not covered by standard insurance.
Homeowners Insurance Coverage for Furnace Replacement: Our Review Methodology
MoneyGeek analyzed quotes from multiple insurance providers across the U.S. using an average homeowner profile. We considered different locations and companies to provide reliable cost estimates and demonstrate why comparing rates matters.
Homeowner Profile
For our analysis, we created a sample homeowner profile with the following characteristics:
- Good credit score (769–792)
- Home constructed in 2000
- Wood-frame construction
- Composite shingle roof
Homeowners Insurance Coverage Details
Unless otherwise specified, we used the following coverage limits to collect quotes for our comparison:
- $250,000 in dwelling coverage
- $125,000 in personal property coverage
- $200,000 in personal liability coverage
- $1,000 deductible
We also compiled data for policies with broader coverage to determine the best companies for insuring expensive homes, upping limits to $1 million in dwelling coverage, $500,000 in personal property coverage and $1 million in liability coverage.
HVAC Insurance for Homeowners: Related Articles
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.