Does insurance cover a new furnace?

Author: Bernadette Pagac  |  Last update: Saturday, October 11, 2025

Your furnace (and your HVAC system in general) falls under the Dwelling Coverage (Coverage A) of your base insurance policy. That means it's covered for what the industry terms 'open perils.

Does homeowners insurance pay for a new furnace?

A standard policy typically won't cover the cost to replace your furnace if there was a mechanical problem, but you may be able to add an equipment breakdown endorsement for an additional cost that may provide coverage.

What is the estimated cost of a new furnace?

You'll be looking at a different cost depending on the location of the furnace, the size of your home, and the type of furnace. But the average cost per unit can range anywhere from $2,672 - $6,575. The national average is $4,820 - $9,350 for a full furnace installation.

Which two are not usually covered by homeowners insurance?

More than likely, your policy doesn't cover flooding or earthquakes. That makes sense since not all areas of the country are prone to earthquakes or flooding. If you need coverage, you'll need to purchase a policy for whichever you need. Earthquake insurance and flooding insurance are two different policies.

Will insurance pay for a new HVAC system?

Homeowners insurance covers HVAC systems when the damage is due to a covered peril or disaster. A standard homeowners insurance policy won't cover an HVAC unit if the damage is due to general wear and tear, owner neglect or old age.

12 Reasons INSURANCE Will REPLACE Your HVAC for FREE!

How much should I expect to pay for a new HVAC system?

The cost of replacing an HVAC system typically ranges from $6,224 to $11,434. This HVAC replacement cost depends on your home's size, the system type, and installation requirements. The estimate includes both a central air conditioning unit and a gas furnace, along with standard labor costs.

How long does a furnace last?

The Average Furnace Lifespan

A well-maintained furnace can last at least 15 to 20 years, but completing annual maintenance and being diligent with repairs can extend its life even longer.

What not to say to home insurance?

Avoid Misleading Phrases: Be cautious with your words. Phrases like “I think” or “It might have been” can introduce doubt and ambiguity into your claim. Instead, stick to clear, confident statements that are supported by your evidence and records.

What is the most common damage to your home that insurance does not cover?

Poor maintenance or neglect

In other words, basic maintenance and wear and tear are typically not covered by homeowners insurance.

Is a burst water heater covered by insurance?

Yes, most standard home insurance policies cover damages caused by sudden and unexpected water damage. This can include a burst pipe, ruptured water heater, or other plumbing malfunctions. Please note, most homeowners policies exclude damage to your home if the water damage is due to a home maintenance issue.

What should I pay for a new furnace?

First, know if you have a gas, electric or oil furnace. Electric furnace installation tends to be the least expensive, ranging between $3,000 and $7,000, according to HomeAdvisor. Installing a natural gas furnace falls in the range of $3,800 to $10,000, and an oil furnace ranges $6,750 to $10,0000.

What time of year is cheapest to replace furnace?

For people taking a proactive approach, doing a furnace replacement during the “shoulder seasons” of spring and autumn may offer lower prices, shorter lead times, and a better selection of products and service appointment availability.

Can I replace just my furnace?

Replacing furnaces without replacing air conditioners is possible, but it is not the most efficient choice. Remember that a professional HVAC contractor, like John Owens Services, can help you through the process of deciding what the best route to take is with your HVAC system.

Can I claim a new furnace on my taxes?

The IRS offers several ways for taxpayers to cut their tax bills through investing in certain energy-efficient appliances and home improvements. This can include upgrades like energy-efficient water heaters, furnaces, air conditioners, and similar investments. To claim the credits, you'll need IRS Form 5695.

What is the age of the furnace for home insurance?

Why Insurance Companies Care About Your Furnace Age. Most carriers consider a furnace's age during their policy evaluation process, with some having specific age limits. For example, a furnace over 30 years old might require proof of annual maintenance to qualify for coverage.

Does State Farm homeowners insurance cover furnaces?

Does homeowners insurance cover a furnace? A furnace isn't covered for normal wear and tear or replacement. This is considered to be part of your typical home maintenance. However, you may contact your local State Farm® agent for information on Home Systems Protection.

Does homeowners insurance cover furnace repair?

Your furnace (and your HVAC system in general) falls under the Dwelling Coverage (Coverage A) of your base insurance policy. That means it's covered for what the industry terms 'open perils.

What is the number one claim on home insurance?

1. Wind and Hail Damage. The most common home insurance claims filed yearly are those involving wind and hail.

What are the negatives of making a house insurance claim?

Filing a home insurance claim might make the most sense when the loss estimate is more than your deductible. Any claim, even a minor one, might lead to an increase in your home insurance premium. Having frequent or repeat claims could cause a property insurer to nonrenew your policy or view you as high-risk.

How to scare a home insurance adjuster?

How To Scare An Insurance Adjuster
  1. Step One: Understand the Roles and Goals of an Insurance Adjuster. ...
  2. Step Two: Know How Insurance Adjusters May Try to Minimize Compensation. ...
  3. Step Three: Take Your Time to Review a Settlement Offer. ...
  4. Step Four: Reject a Lowball Offer in Writing.

What voids homeowners insurance?

Common exclusions in even the most comprehensive homeowners policies include: earth movement, such as earthquakes; sinkholes or landslides that damage your home; water damage, such as floods or sewer back-ups that leak through a pipe or seep through the foundation causing damage to your home; damage resulting from ...

What not to say to claim adjuster?

Some key phrases to avoid saying to an insurance adjuster include:
  • “I'm sorry.”
  • “It was all/partly my fault.”
  • “I did not see the other person/driver.”

What is the cost of a new furnace?

How much does a new furnace cost? New furnace cost can vary significantly. Gas furnaces costs can range from as little as $3,800 for a basic unit with installation to more than $10,000 to $12,000 for a high-efficiency model with professional installation.

How do you know if your furnace is dying?

Signs your furnace is going out include inconsistent heating, strange noises, frequent short cycling, a yellow burner flame, and higher heating bills. If it's over 15-20 years old or requires frequent repairs, it may be time for a replacement.

How long does it take a professional to replace a furnace?

4-8 hours. Furnace installation in a residential home usually takes 4-8 hours, depending on the complexity of the job. Additional time may need to be added to account for ductwork, electrical, or gas line modifications to properly match the new equipment.

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