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What To Know About Your Furnace And How It Affects Your Home Insurance

The Canadian climate requires homeowners to have adequate home heating systems especially in the winter months. It is not a matter of choice but rather, a matter of importance and necessity. 

And since some 55% of Canadian homeowners rely on furnaces to heat their homes, it is crucial to know whether your home insurance rates may be affected if your furnace stops working. 

Insurance For Your Home Furnace

Many people may wonder whether their insurance company will cover the replacement cost of their furnace if it stops working. Unfortunately, the answer is no. Home insurance companies will replace your furnace only in the case of an insurable event such as: flooding, fire, or burglary. Home insurance is not a maintenance plan where you can replace an old furnace just because it is not working. Rather, home insurance is there to cover you in an emergency.

When Is A Broken Furnace Considered An Emergency?

The following situations may be considered an emergency by your insurance company with regards to your furnace not working:

  • Water leak: if your furnace is leaking water, the damage may affect your flooring, walls or your home’s foundation. Clean up the spill with a mop or a wet vac as soon as possible. Water damage is costly, and this can affect your home insurance premiums in the event that you make a claim.  

  • Gas leak: if you smell an odour like sulphur or rotting eggs, your furnace is most likely leaking natural gas. In this situation, evacuate everyone from your home and call 911 immediately. Also, notify your gas company of the problem. 

  • Furnace not working or blowing cold air: you may experience significant damage to your home (i.e. frozen and burst pipes) if your furnace is blowing cold air or stops working all together, especially in the winter months. If this happens to you, notify your furnace technician as soon as possible in order to prevent further damage to your home.     

What To Do If Your Furnace Stops Working?

There are a few things that you can do to remedy a faulty furnace. These include:

  • Check the air filter: most air filters should be replaced every 3-4 months in order to provide a good flow of hot air throughout your home. If you do this, you may prevent your furnace from shutting down due to the air filter being clogged. 

  • Check your circuit breakers: it is important for you to make sure that the HVAC switches on your circuit breaker are turned to “ON.” Also, make sure that the “ON” switch is engaged on the furnace itself. 

  • Check the thermostat: a furnace that is not working may be caused by a power loss which resets your furnace’s programming settings. If you have determined that the “ON” positions on your furnace and circuit breakers are set, but your furnace still has no power, contact an electrician. 

  • Check the drain: your HVAC system needs to drain water to work properly. Make sure that there are no kinks or blockages in the hose that drains water from your HVAC system. If using a wet vac won’t solve this problem, call an HVAC technician.

Clearly, a functioning furnace that is in good working order can save you money in the long run by preventing damage to your home. If you make a claim for the damages, your home insurance premiums will go up, so it is prudent to keep an eye on how your furnace is working. Also, by replacing your air filter, your furnace will run smoothly and this can lower your utility bills, saving you even more money.  

If you would like to know more information about insuring your home and saving on costs with regards to your furnace, please contact us today and we will be glad to answer your questions.