Is Your Furnace Covered Under a Home Warranty?

A home warranty is a service contract designed to help homeowners manage the costs of repairing or replacing major home systems and appliances when they break down due to normal wear and tear. It differs from homeowner’s insurance, which covers damage from unexpected events like fires or storms. A home warranty provides financial protection against the unpredictable expenses of appliance and system failures.

Understanding Furnace Coverage

Furnaces are a primary home system often included in standard home warranty plans. Coverage applies when the furnace experiences a mechanical failure due to normal operational use, rather than external damage or neglect. Most policies cover essential components such as the heat exchanger, blower motor, gas valve, igniter, and the thermostat.

Coverage extends to mechanical malfunctions that impede the furnace’s ability to function. For instance, if the blower motor seizes due to age or regular use, the warranty would cover its repair or replacement. However, cosmetic damage or issues that arise from a lack of routine maintenance are generally excluded, as these are considered preventable problems. The precise scope of furnace coverage can differ considerably between home warranty providers and the specific policy tier selected.

Homeowners must review their individual policy documents. These documents detail the specific terms, conditions, and covered components related to their furnace.

Common Coverage Limitations and Exclusions

Despite furnaces commonly being covered, home warranty policies frequently include specific limitations and exclusions. One significant exclusion is pre-existing conditions, meaning any furnace issues that existed or were evident before the warranty coverage began are not covered. Providers often require the system to be in good working order at the policy’s start.

Another common exclusion involves issues stemming from a lack of routine maintenance. If a furnace breaks down because filters were not regularly changed, or annual tune-ups were neglected, the warranty provider may deny the claim. Many policies stipulate that the homeowner must perform preventative maintenance as recommended by the manufacturer to keep the coverage valid.

Problems arising from improper installation or previous repairs not performed by qualified professionals are also excluded. Additionally, some policies impose age limits on covered furnaces, potentially excluding very old units, for example, those exceeding 10 to 15 years in age.

While major components are usually covered, minor parts like air filters, vents, or ductwork are often excluded. Damage resulting from external factors, such as power surges, is also commonly not covered by the home warranty, as these incidents might fall under homeowner’s insurance. Home warranties generally do not cover secondary damage, such as water damage from a leaking humidifier attached to the furnace caused by a malfunction.

Home warranty policies also include monetary caps on how much the company will pay for a single repair or replacement. These caps can range from several hundred to a few thousand dollars, and if the repair cost exceeds this limit, the homeowner is responsible for the difference. Costs associated with obtaining permits or upgrading the system to meet current building codes during a replacement are also commonly excluded.

Making a Home Warranty Claim for Your Furnace

Initiating a home warranty claim for your furnace requires gathering specific information before contacting the warranty company. You should have your policy number readily available, along with details about your furnace (manufacturer, model number, age) and a clear description of the issue. Having relevant maintenance records accessible can be beneficial, as some warranty providers may request proof of routine upkeep.

Initiate the claim process by calling a dedicated claims line or submitting a request through the provider’s online portal. The warranty company will review your submission and, if approved, dispatch a local, authorized service technician to your home.

At the service visit, homeowners pay a service fee, often called a trade service call fee or deductible, directly to the technician. This fee commonly ranges from $75 to $125. The technician will diagnose the furnace problem and contact the warranty company for authorization to proceed with either a repair or replacement, based on the policy’s terms and findings.

The technician will perform the necessary repair if authorized. If the furnace is deemed irreparable or too costly to repair, a replacement may be approved under the policy’s terms. The replacement will typically be of a similar type and efficiency, not necessarily an upgrade.