The major systems in your home can be expensive to repair or replace. Getting some help from your home insurance sounds like a good idea. The problem is, it is rarely possible. Your property coverage only protects you from damages you cannot prevent and that are accidental. There are a few instances where it may help with furnace repair. Let's consider a few specific examples.
When Does Your Policy Cover Furnace Repair?
Technically, your home's furnace is a component of your home. Under your insurance, it falls under your dwelling coverage. This is because it is a component built into your home. Yet, the only time your policy covers the damage or replacement of it is if there is evidence of an accident or other unavoidable situation that you did not cause. This can be complex to understand. Here are a few examples.
The Furnace Is Old and Stops Working
This is not uncommon. Your furnace is going to need updating and repairs from time-to-time. By definition, this type of maintenance and upkeep does not fall under the coverage of home insurance. Rather, it is a key component of routine maintenance on your home. The repairs necessary are a type of routine maintenance. Your home insurance will not offer coverage in this case.
The Furnace Suffers Damage Resulting from a Burst Pipe in the Basement
Your furnace is a valuable asset that can suffer damage due to an accident like this. A pipe bursting could be an unavoidable accident. Perhaps it froze due to the cold temperatures in the area. It sprayed the furnace with water, and the technician cannot repair it. In this case, the frozen pipe could be a key factor. It was an accident you could not avoid. The home insurance policy may cover the losses here.
A Fire Tears Through the Home
Fires are very common causes for a home insurance policy to pay for the replacement of a furnace. However, a limitation might arise when the cause of the fire was due to poor maintenance and upkeep on your part.
For example, lightning strikes the home, causing it to burn and damage the furnace in the process. This has coverage. If the furnace catches on fire due to poor maintenance, the policy may not cover your losses.
The good news is you can always contact your home insurance agent to find out. He or she can offer guidance on when you can file a claim.
Also Read: 3 Costly Home Insurance Mistakes Putting You At Risk