Blog Is Your Home Furnace Covered Under Insurance?

Jan 25, 2022

Don’t be left out in the cold – what you need to know about insurance and your furnace

female with green blanket beside thermostat

Will you be covered if your furnace breaks down or needs repair? Or will you be left out in the cold?

According to Statistics Canada, furnaces are the most common type of heating system used by Canadian households – around 57% of people use them.

Whether you are staying warm by the fireplace or keeping it simple with a furnace to heat your home, here’s what you need to know about your home insurance and furnace.

Does insurance over furnace replacement?

It is doubtful that your provider will cover replacement or repairs for your furnace. If your house experiences any water damage, issues from electrical systems, or home theft, and the furnace is damaged you will likely be protected from paying for the replacement. As long as the peril is included in your policy, you’ll be covered. However, age and neglect of the equipment will not be included.

Will insurance cover maintenance or repairs to my home furnace?

They will likely not approve a home insurance claim related to maintenance or repairs to your furnace, even if they are caused by wear and tear or pests. Some companies offer equipment breakdown coverage, or you can get an extended warranty from the company you rent or buy your equipment from.

Furnace insurance vs warranty

It’s rare to find furnace insurance, but you will likely get a warranty for it. If you see furnace coverage, it is likely a maintenance contract from the company you are renting the furnace from. Generally, they charge you $15-$20 to maintain the equipment you rent for $30-$40 each month. Over time, you will likely spend more on this warranty than buying a new unit.

For example, after 15 years you could pay around $9,000 for the warranty. A new furnace will cost approximately $5,000. You can either overpay someone else or keep an emergency fund for home repairs.

What is a forced air furnace?

white thermostat on wall

The majority of homes in Canada have a forced-air furnace. These units use electricity or gas to heat the air. A fan will blow the heated air through a series of ducts throughout the house.

What to do when your furnace stops working

Try a few of these tricks to fix the problem before you jump to the conclusion of your furnace is completely broken.

  • Check the air filter : One of the most common (and easy to fix) issues is changing the air filter. They should be replaced every 3-4 months and can be bought at any home supply store.
  • Check the drain : Your HVAC system needs proper drainage – check for any kinks, clogs, or issues where the water is not draining. If it is not draining automatically, it can prevent the furnace from coming on.
  • Circuit breakers : Take a look at your circuit breaker and ensure it is turned on.
  • Thermostat : Check and reset your thermostat to ensure it is in the right setting and receiving power.
  • Look at the pilot light : The furnace will not turn on if the pilot light is out. If you notice this, call a professional.

When to upgrade your furnace

There is a fine line between knowing when to call a technician or investing in a new unit. Depending on the age and issue, you may be better off upgrading.

  • Increased heating bills : Have you noticed a consistent increase in your heating bills? It could be a sign that the furnace is running less efficiently.
  • You hear weird noises : Banging, popping, rattling, or squealing noises can be a sign of issues.
  • Inconsistent temperatures in your home : If you notice drastic changes in temperatures throughout your house, consider getting a maintenance specialist in to confirm the problem or get the inside vents of your heating system cleaned.
  • It’s more than 15 years old : The older it gets, the more problems and expensive repairs will arise.

Furnace Insurance FAQs

Nope – unless it is damaged by a covered peril in your home insurance.

On average, a furnace can last 15 to 30 years, but only with proper maintenance and diligence with repairs. Be sure to follow the product manual and scheduled maintenance timeline.

A new furnace can cost anywhere between $3,000 and $10,000 to replace in Ontario. This cost includes removing the old unit and installing the new one and the furnace unit.

A new furnace can cost anywhere between $3,000 and $10,000 to replace in Ontario. This cost includes removing the old unit and installing the new one and the furnace unit.

A final word on furnaces and insurance

Keep your furnace in top shape by performing yearly fall home maintenance – this will allow you to find any concerns before the temperatures drop. This can even help you save money on repairs since you won’t be in a rush to get them done.