Owning a home comes with a lot of responsibility. To protect their assets, many homeowners choose to invest in a home warranty. They want to know they won’t be facing high repair bills if something goes wrong. However, the homeowner must know what the warranty does and does not cover. For example, will the warranty cover a furnace in the home? Why is it important to have this information?
The Average Furnace Lifespan
Furnaces last approximately 15 to 20 years if their owners properly maintain them. When the owner carries out regular maintenance, such as replacing filters as needed and regularly inspecting the pilot light, the furnace may last longer. However, the unit also needs regular inspections carried out by qualified professionals, as they are trained to catch small problems before they become major issues. Other factors also impact the lifespan of a furnace, including system usage, temperature ranges, and the climate of the home.
The Need for Repairs
However, even with regular maintenance, a furnace may break down. This is where a home warranty that covers furnaces is of great help. This type of warranty typically covers gas, oil, and electric furnaces and all components. With the help of this warranty, you have someone who will complete the repairs in a timely manner without doing significant damage to your budget.
Understanding Home Warranties
A home warranty is not the same as homeowner’s insurance. Home warranties cover the cost of repairs to major household systems and appliances. If the system or appliance cannot be repaired, the warranty company pays to have it replaced, up to the amount listed in the policy.
Homeowner’s insurance covers damage to the home and its systems or appliances only in certain situations. For example, if there is a fire, the homeowner’s insurance policy pays out. The same holds if the home or its contents are damaged or stolen by a vandal or burglar. A home warranty, on the other hand, covers damage caused by normal wear and tear.
The Cost of a Home Warranty
One reason many people may hesitate to purchase a home warranty is they are worried about the cost. The average cost of one of these plans is $75 a month or $900 a year, although coverage and prices vary by provider and plan. When comparing policies, ask about service call fees, cancellation fees, coverage limitations, and more to ensure you select the right policy, one that will cover the furnace and other major household systems.
Do Most Home Warranties Cover Furnaces?
Most home warranties will cover furnaces. However, they may not cover the ductwork and other components connected to the furnace. It is crucial that you read the paperwork that comes with the policy to understand all exclusions. One of the biggest complaints with these warranties is certain items are not covered. However, this information can be found in the policy documents, so it falls on the buyer to know what they are purchasing.
Filing a Claim
When a furnace needs repair, the homeowner must file a claim with the warranty company. If the furnace is covered under the selected plan, the warranty provider sends a technician to the home. They diagnose the problem and determine whether a repair will suffice or if the unit must be replaced. You pay a service call fee and any fees above the policy limit.
Nevertheless, the warranty won’t cover all problems with a furnace. If the unit has not been properly maintained, you will bear the full cost of the repair or replacement. Any damage caused by a natural disaster also won’t be covered by the home warranty. Portable heating units and fireplaces also aren’t included in the warranty. Read the policy documents so you are aware of your coverage and any exclusions. Homeowners who do so find a home warranty that covers furnaces is of great benefit to them.