If Something Goes Wrong With Your Furnace, It Could Cause Quite a Bit of Damage Without Furnace Coverage. So Ask Yourself This Question: “Does My Standard Homeowners Insurance Policy Include Furnace Coverage?”
The answer is: In some cases it MIGHT or COULD be covered. However, that’s a pretty big “MAYBE.” There are insurance companies that make new homeowners policies competitive by including coverage for the breakdown of larger equipment in the home, but this is not always the case. Sometimes this coverage is tacked on as an “extra” if you thought to ask about it. The best bet is, don’t expect furnace coverage to be included.
We invite you to let us review your specific policy with you first to make sure it covers furnace replacement. If it does, there are a few common scenarios when it would typically be covered.
Any standard homeowners insurance policy might include furnace coverage in the following situations:
- The furnace needs to be replaced due to explosion. Explosion is a covered peril under standard homeowners policies.
- The furnace was destroyed due to a covered natural disaster.
- Natural disasters commonly covered by homeowners insurance include:
- Windstorms
- Hail
- Fires
- Blizzards
- Natural disasters typically NOT covered by homeowners insurance include:
- Floods
- Earthquakes
- Mudslides
Keep in mind your coverage will vary depending the specifics of your policy. If you are missing furnace coverage including replacement or any other component you need under your homeowners policy, call us to schedule a review of you policy and we can make suggestions for add ons or additional policies if you need them.
You should also be familiar with scenarios where a standard homeowners insurance policy will definitely NOT provide coverage for furnace replacement.
Standard homeowners policies will NOT cover furnace replacement in the following scenarios:
- The furnace needs to be replaced due to your misuse of it.
- The furnace needs to be replaced due to improper installation.
- The furnace needs to be replaced due to failure to keep up with routine maintenance. General wear and tear is not covered under standard homeowners policies.
- The furnace needs to be replaced due to damage from a natural disaster that’s not covered.
There’s nothing you can do to avoid general wear and tear, but you can make sure routine maintenance is done so if there’s need for a repair, it can be done less expensively than having to replace the furnace out of pocket due to lack of maintenance. If you have concerns about your furnace or damage it may cause you may want to consider purchasing an additional policy known as umbrella insurance which can fund the balance of the damage above what your standard homeowners policy covers.
One option for you if your policy doesn’t cover your furnace would be to purchase equipment breakdown coverage. This kind of policy will provide coverage of appliances and machinery that breaks down due to a number of different problems, and would probably offer coverage limits beyond what’s included in your homeowners policy. However, no policy will provide reimbursement for a furnace that needs to be replaced due to routine wear and tear. Homeowners are responsible for routine maintenance and upkeep of the appliances in the home. You definitely want to keep your furnace in proper working condition to you can prevent a situation in which you aren’t covered by any form of insurance.
Should you service your furnace every year?
With any appliance with lots of moving parts, an annual inspection is probably a good idea. However, depending on your location and the amount of use, it may not be necessary to have it done every year.
The degree of use your furnace gets and the weather conditions important factors to consider. In system’s where the blowers operate with the A/C system to cool the house during the summer, it might be good to have a dual service schedule set up— one in the springtime for the A/C and another in the fall for the furnace.
The Liveoak Agency is here to provide extensive insurance selections for your home and property. Call us for a policy review of your insurance today!