When looking to buy a home, most experienced buyers know to ask if the furnace is updated. Why? They are expensive to replace, and no one wants that scenario to happen right after moving day. If something goes wrong, is a furnace covered under homeowners insurance? As with most questions when it comes to insurance policies, the answer is “it depends.” If the furnace breaks due to a covered loss, then you may have coverage. For example, if your house is destroyed by a fire, and that fire also destroys the furnace, it’s likely your policy will cover that specifically. Coverage will be capped at your policy’s limit once the deductible is paid. But, furnaces breaking down due to things like improper installation, mechanical issues, or years of use are not covered by homeowners insurance. Earthquake and flood damages are also usually not covered.