Does Homeowners Insurance Cover Furnace Replacement?

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.

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.

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.

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:

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.

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.