Now that we have answered the question “does homeowners insurance cover furnaces,” it’s time to look at extra coverage. If your homeowners policy doesn’t cover furnace replacement, you could look at purchasing equipment breakdown coverage. Please note, this coverage does not reimburse homeowners for furnaces replaced due to wear and tear. It is the homeowner’s responsibility to perform routine maintenance and upkeep.
However, appliances, electronics, and equipment that is damaged or destroyed by a power surge, electrical breakdown, etc. could be protected by this extra coverage. Whole home warranties are expensive, and it is often cheaper to buy new appliances after an incident versus paying the deductible and service call. So, consider purchasing specific coverage for specific items, if only for peace of mind. Equipment breakdown insurance will likely offer coverage with limits way beyond the ones listed in your homeowner’s policy.