Will Home Insurance Cover Furnace Failure?

Did you know that furnace failures are some of the most common home insurance claims in cold-weather climates? If you are a homeowner, then you might be wondering whether your insurance policy will cover you for the cost of replacing or repairing your furnace (or components of it) should it fail.

As a homeowner, you are expected to look after your property – including all its systems and components – and maintain it to avoid unexpected issues. You might imagine this would include your furnace as well. But if something happened, would your furnace be covered?

In this blog post, as a part of a continued series about what Ontario home insurance will and won’t cover, we get into whether home insurance will cover furnace failure, under what circumstances it might, and what might be excluded from coverage. If you have further questions following this blog post, don’t hesitate to reach out to an Excalibur Defender to discuss the details of your policy.

What could cause a furnace to fail?

Several things could cause a furnace to fail or become damaged. Here is a list of some of the most common reasons, in no particular order:

• Age: This is one of the most common reasons why a furnace might break down. Most furnaces today are built to last 15-20 years, around which point they may start not to work as efficiently or cause issues. Furnaces should be replaced at the end of their lifetime.
• Lack of maintenance: All furnaces need regular maintenance and cleaning to be kept running efficiently. Failing to replace air filters or clean them can result in your furnace needing to work harder than it ought to, which can result in a break down.
• Electrical issues: Faulty wiring or blown fuses can cause your furnace to malfunction or stop working altogether.
• Wear and tear: Over time, and perhaps more consistently due to lack of maintenance, parts of your furnace may begin to wear or become damaged. The belts and bearings can take the hardest hit due to wear and tear.
• Environmental factors: Extreme weather, like ice or snow, can block intakes or cause damage to your furnace and exhaust vents, which may result in a system failure.

Now, will home insurance actually cover furnace failure? Let’s get into the meat of this topic.

When will home insurance cover furnace failure?

All this begs the question: will home insurance cover furnace failure? Under many circumstances, yes. Homeowners insurance covers the cost to replace a furnace or the cost to repair a furnace so long as the cause of the damage is covered. Your home insurance policy may also cover the cost to repair other parts of your HVAC unit, including its condensers, boilers, and air handlers.

The dwelling portion of your homeowners insurance policy offers coverage for built-in systems and appliances, such as your boilers, electrical panelling, plumbing, and, of course, your furnace. Should any component of your HVAC system be damaged or cracked by a covered peril, your homeowners insurance should come into play to help cover the costs of replacement or repairs.

When won’t home insurance cover furnace failure?

A standard homeowners insurance policy will not offer coverage for any damages or breakdowns caused by lack of maintenance or due to simple wear and tear. The Financial Consumer Agency of Canada states that the definition of any insurance agreement is that your insurer will cover you so long as the cause of the damage or loss was as a result of an unexpected event.

Bottom line: if your furnace was broken as a result of an insurable peril or damage, like a falling tree, heavy snowfall, a residential fire, or if damages resulted from a specific thing that was covered, like accidental tearing, bulging, cracking, or burning, then yes, your home insurance will cover your furnace. If the cause of the issue can be traced back to your lack of maintenance or a pre-existing issue, then you will likely not be covered for the cost to repair or replace your furnace.

To note also, your tenant insurance in Ontario will likely not cover furnace failure, as the responsibility of systems unique to the unit falls to the landlord. Your landlord may have a policy to cover damages to your unit’s furnace or furnace failure.

How do you prevent furnace failure?

Hiring a regular inspector or HVAC technician to take a look at your furnace and do its “routine” checkup is always a good idea. You should include a furnace inspection in your regular fall home maintenance. Regular, professional heating inspections can help catch any issues before they worsen and keep your HVAC system in good health. This can also keep your energy bills in check.

Another way to prevent furnace failure is to change your furnace filters when they start to appear clogged. Replace them regularly – they can often be the culprit of furnace failure since a furnace will need to work much harder to push air through them when they are dirty or clogged.

Clear all intake and exhaust pipes of obstructions. These are probably the most important component of your furnace. A blockage can cause your furnace to break down and may even allow carbon monoxide to enter your home and accumulate. Check your exhaust and intake pipes to avoid issues.

When you’re doing your regular vacuuming, make sure to include the vents and registers. This will help air to flow through your home easier and prevent your furnace from having to work harder than it needs to. Moreover, ensure your registers and vents are not covered by furniture to ensure adequate airflow.

And, when in doubt, or if you suspect your furnace is having issues, hire a professional!

As always, Excalibur Insurance is here to help out with any advice, any information, or any insight you may need! We’re happy to go over your home insurance policy with you and discuss what you may need to ensure your property, its contents, and your liability are adequately insured. Give us a call or get an insurance quote with us to start.