Does Homeowners Insurance Cover Furnace Replacement?


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ByMark Fitzpatrick
Edited byJonathan Ramos
ByMark Fitzpatrick
Edited byJonathan Ramos

Updated: May 22, 2024

Advertising & Editorial Disclosure

Your furnace is one of the essential built-in appliances that homeowners insurance covers. If, for instance, a fire or storm causes damage to your furnace, your insurance will pay to repair or replace it under your dwelling coverage. However, home insurance typically does not cover damage resulting from normal wear and tear or lack of maintenance. Thus, regular inspections and upkeep are essential to ensure that your furnace remains in good condition and to prevent issues that insurance won't cover.

Key Takeaways

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Standard home insurance policies cover built-in appliances like your furnace.

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Home insurance only repairs or replaces furnaces if they get damaged by a covered peril, like a hailstorm, a fire or theft.

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Home insurance will not cover the damages if your furnace breaks down due to a lack of maintenance or a flood.

Is a Furnace Covered Under Homeowners Insurance?

Homeowners insurance typically covers furnace replacement or repairs if the damage is caused by a covered peril specified in your policy. For instance, common examples of covered perils include fires, severe storms or vandalism.

When a furnace is damaged by a covered peril, homeowners insurance typically covers the cost under the dwelling coverage of the policy. Dwelling coverage is responsible for damages or destruction to the structure of your home, including its foundation, roof, walls and any built-in appliances.

When Is a Broken Furnace 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.

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    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.

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    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.

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    Intentional Damage

    Any damage caused deliberately by the homeowner is excluded from coverage.

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    Utility Failure

    Damage resulting from external utility issues, such as electrical surges or gas leaks outside of the home, might not be covered.

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    Manufacturer's Defect

    If your furnace breaks down due to a manufacturing defect, the responsibility usually falls to the manufacturer, not the insurance.

How Do You File a Homeowners Insurance Claim if Your Furnace Is Broken?

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

Understand the specifics of your homeowners insurance policy. Check what is covered under your plan, especially concerning 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.

Tips for Maintaining Your Furnace

Maintaining your furnace is crucial for ensuring its longevity and efficiency. Here are some key tips to help 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.

Frequently Asked Questions

Your home's furnace is a vital built-in appliance typically covered by homeowners insurance. It's crucial to understand how to maintain your furnace to prevent damage and be familiar with the process for filing a claim in case it's damaged by a covered peril. To help you navigate concerns about furnaces and boilers in home insurance, MoneyGeek addressed some frequently asked questions.

Does home insurance cover furnace replacement?
Is a boiler covered under home insurance?

About Mark Fitzpatrick


Mark Fitzpatrick headshot

Mark Fitzpatrick has analyzed the property and casualty insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. Currently, he leads P&C insurance content production at MoneyGeek. Fitzpatrick has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.