After a furnace failure, the question is: will homeowners insurance cover a replacement? The answer depends on the cause of the failure and your policy. Here’s what you need to know.
What Is Typically Covered: Standard homeowners insurance covers sudden and accidental damage from covered perils. If your furnace is damaged by fire, lightning, or a falling tree, your policy likely covers replacement—minus your deductible. Some policies cover power surge damage with an endorsement.
What Is Typically NOT Covered:
- Wear and tear: A furnace that fails due to age or lack of maintenance is your responsibility.
- Mechanical breakdown: A blower motor failing from normal use is not covered unless you have a home warranty.
- Flooding: Furnace damage from rising water requires flood insurance.
- Neglect: Damage caused by ignoring known issues may be denied.
How to File a Claim: Document the damage with photos. Contact your insurer promptly. Obtain a replacement estimate from a licensed contractor—see how to choose a licensed contractor. Mitigate further damage but don’t start permanent repairs before the adjuster inspects.
The Role of Maintenance: Insurers may deny claims if they find the unit was neglected. Regular maintenance protects your coverage—see what to expect during replacement. For typical costs, see furnace replacement cost. And for the timeline, see how long it takes.