Will A Home Warranty Replace A Furnace? You Should Know!


Rima Chatterjee

Key Takeaways


  • A home warranty plan can be your best friend when it comes to furnaces. Most companies provide coverage which may include a full system overhaul or replacement
  • Homeowners’ Insurance covers damage to a property from hazards, like fire, vandalism, or theft. Home Warranty Plans protect when appliances or systems break due to normal wear and tear.
  • HomeWarrantyReviews.com surveyed 80K reviews from homeowners. They found that “Home warranties can save homeowners $300-$1800 annually on repair bills.”
  • When getting a home warranty plan for furnace replacement, do not forget the deductible
Will A Home Warranty Replace A Furnace

Can Home Warranty Plans Cover a Furnace Replacement?


To get an understanding of whether a home warranty plan can be a solution for covering furnace replacement, we need to look at a few things. One of the things you would first need to know is what a home warranty plan is. After that, you would need to know how these plans work and how they are different from homeowners insurance.

What is a Home Warranty Plan?

A home warranty plan can be your best friend when it comes to furnaces. Most companies provide coverage which may include a full system overhaul or replacement. Check the terms and conditions of your plan to be sure.

If it’s time for a furnace replacement, contact your provider right away. They will send an expert to assess the situation and recommend options. After approval, they will arrange a licensed contractor for installation or replacement at your convenience.

Don’t risk it! Get a home warranty plan and stay cozy as a bug in a rug.

How Do Home Warranty Plans Work?

Home warranty plans are service contracts that protect your home appliances and systems, like heating and cooling, plumbing, and electrical. 

When a thing breaks down due to regular wear and tear, you can file a claim with the home warranty company. They will send a contractor to check what’s wrong and repair or replace it if needed. Homeowners pay an annual fee, usually around $300 to $600.

Furnace replacement is sometimes covered by home warranty plans. It depends on the policy. Read the details carefully before buying the plan, to know what is included and what isn’t.

If furnace replacement is in your plan, here’s how to make the claim process smooth:

  1. Maintain your furnace with regular checks and filter replacements. This helps to prevent breakdowns due to a lack of maintenance, which may not be covered.
  2. Document any repairs or issues with your furnace before filing the claim. This info helps to determine if the claim is accepted.

Home warranty plans are like superheroes for your appliances, while homeowners insurance is like a bodyguard for your home.

How are Home Warranty Plans Different from Homeowners Insurance?

Home Warranty Plans are not the same as Homeowners’ Insurance. Homeowners’ Insurance covers damage to a property from hazards, like fire, vandalism, or theft. Home Warranty Plans protect when appliances or systems break due to normal wear and tear.

Here’s the difference between the two:

Home Warranty PlansHomeowners’ Insurance
Repairs and replacement of household systems and appliancesHouse structure protection against physical damage
Fixed terms with annual fees $300-$600Annual premium based on the value of the property
Normal system wear and tearLosses from natural calamities

Home Warranty Plans cover various systems in your house, but not structural damage. You have to buy extra coverage for this. Did you know? The National Home Service Contract Association reported $2.5 billion paid out by their members.

Home Warranty Plans also give heating system coverage – so you can stay warm!

Understanding Heating System Coverage in Home Warranty Plans


To help you understand heating system coverage in home warranty plans with the title, “Will a Home Warranty Replace a Furnace,” I’ll be discussing what heating system coverage is all about, the types of heating systems that are typically covered, and the coverage limits and exclusions involved. Knowing these sub-sections will give you a better idea of what to expect from a home warranty plan when it comes to your heating system.

What is Heating System Coverage?

Home warranty plans offer coverage for appliances and systems around your home, including the heating system. 

  • This coverage includes parts and labor costs for fixing your furnace, boiler, or heat pump
  • It’s important as heating systems can break due to normal wear and tear or unexpected incidents, causing discomfort. 
  • With this protection, you can be sure any repairs will be taken care of.
  • Some plans might include enhanced coverage with extra components like ductwork and thermostats
  • Be sure to check your plan documents to understand what is covered.

As per the National Association of RealtorsĀ®, 68% of home buyers think a home warranty is super important. With heating system coverage being a crucial part of most home warranty plans, it’s no wonder many homeowners choose this added protection. 

From boilers to furnaces, this home warranty has your heating needs taken care of – unless it’s caused by your ex’s frigid heart!

Types of Heating Systems Covered in Warranty

Heating systems are an essential part of any home. If they fail, repairs can be expensive. Home warranty plans provide coverage for various heating systems. Let’s take a look.

  1. Furnaces: Home warranties cover gas and electric furnaces used for central heating. Internal components such as filters, fans, and capacitors are included.
  2. Heat pumps: These electric units use refrigerant to heat or cool the home by transferring heat. Air-source and ground-source heat pumps are both covered.
  3. Boilers: Boilers heat water that passes through pipes connected to radiators. Baseboard heaters and hot water radiator units are all included.
  4. Ductless heating: This system uses an outdoor unit that connects to indoor units with small pipes. All necessary elements are covered.
  5. Central Air Conditioning/Heating Systems: Many homes have central HVAC systems with a furnace and A/C. Internal components like thermostat tubes, coils, and compressors in the outdoor condenser are typically included.
  6. Electric wall heaters: These panels generate heat with electricity and become part of wall decorum. Home warranty plans cover these too, with provisions for electrical safety.

Home warranties may offer optional add-on coverage like air filters or increased liability limits for an extra fee. Comprehensive upgrades to protect HVAC equipment long-term are available but may require additional purchasing or higher premiums.

Before modern heating systems, people around the world depended on stoves and open fires. These produced ash and smoke, making chimneys costly to maintain. 

If your home’s heating system breaks down in winter, you’re on your own.

Coverage Limits and Exclusions For Heating System Warranty

Heating systems are important for cozy living. Yet, they need regular maintenance and sometimes repairs. Homeowners buy plans to cover heating systems. Let’s take a look at coverage limits and exclusions.

Coverage LimitsExclusions
$1,000-$3,000Pre-existing conditions
Improper installation or maintenance
Environmental factors (fire, floods, earthquakes)
Upgrades or modifications not covered by the plan

Home warranty plans cover heating system repair or replacement, but some exclusions exist. 

  • For instance, pre-existing conditions before plan sign-up won’t be covered. 
  • Also, improper installation or maintenance won’t be protected. 
  • Plus, environmental factors such as fire, flooding, and earthquakes are insured, not warranted.

HomeWarrantyReviews.com surveyed 80K reviews from homeowners. They found that “Home warranties can save homeowners $300-$1800 annually on repair bills.” 

When getting a home warranty plan for furnace replacement, do not forget the deductible.

Factors to Consider When Choosing a Home Warranty Plan for Furnace Replacement


To choose the right home warranty plan for furnace replacement with the coverage you need, you should evaluate multiple factors of your options in the market. In this section, we will cover the essential factors that will help you simplify your choices, such as the cost of home warranty plans, service fees, and additional costs, coverage plan options available, and the best home warranty companies for heating system coverage.

Cost of Home Warranty Plan for Heating System

Home warranty plans can be a great investment to protect your house’s systems and appliances, such as furnaces. Cost is a major factor to think about when picking a plan.

To give you an idea, we’ve made a table of the average costs of these plans. Remember, they vary based on your area and coverage:

Home Warranty CompanyAnnual PremiumTrade Service Fee
American Home Shield$750 – $900$75 – $125
Choice Home Warranty$450 – $600$60 – $85
Total Home Protection$500 – $630$60 – $75

Cost isn’t everything. Look at the coverage details. Make sure it includes replacing your furnace if needed. Check if there are usage or service limits. Also, research customer reviews and ask people who have used these services. Check the company’s reliability.

Service Fees and Additional Costs for Heating System Warranty

We’ve crafted a table to help you decide between Home Warranty Providers. It includes fees, costs, and conditions.

Home Warranty ProviderService Call FeeAdditional Costs
ABC Home Warranty$75-$125$50-$500
XYZ Home Protection$100-$150$100-$1000
123HomeWarranty$60-$90$300-$1200

Other factors like the type of furnace, age, and location could also affect repair or replacement costs. Not all providers charge for some services. Bankrate.com states that you could save up to $600 each year through Home Warranty Plans. They cover HVAC systems such as furnaces and heating systems.

But alas, Home Warranty Plans don’t come with a side of cozy heating pads and chicken soup!

Coverage Plan Options Available for Heating System Warranty

When selecting a home warranty plan for furnace replacement, it is essential to think of the Coverage Plan Options Available. These can be different depending on the provider. Here are some common ones:

  • Basic Plan: This usually covers only the main parts of your furnace, like the burners and heat exchangers. May also include electrical and mechanical parts.
  • Enhanced Plan: In addition to the basics, it will cover more extensive parts such as blower motors and fans. More flexibility may be available when it comes to repair or replacement choices.
  • Comprehensive Plan: As suggested by the name, this plan offers complete coverage for all significant components of your furnace. This includes the heating unit, ductwork, and other necessary parts.

It’s important to be aware of any particular terms or conditions that could impact your coverage. 

For example, some plans may have more strict limits on when or how often repairs can be done. Additionally, select a reliable provider with a good reputation. Look for customer reviews online or ask people you know who have used similar services.

HomeAdvisor discovered that replacing a furnace can cost from $2,500 to $7,500, depending on the size and efficiency level of the unit.

Secure your heat source, consider these top home warranty companies for heating system coverage.

Best Home Warranty Companies for Heating System Coverage

If you’re in the market for a home warranty plan that covers your heating system, there are several factors to consider. Let’s look at the best home warranty companies for heating system coverage.

  1. American Home Shield offers $3,000 per covered item and their plan price can range from $59.99 to $79.99 per month.
  2. Choice Home Warranty offers no coverage limitations and their plan price is between $40 and $50 per month, plus a $60 trade service fee.
  3. Select Home Warranty has coverage limits of $2,000 per covered item.

If budget and coverage limits are a priority, American Home Shield is a great option. But if you’re looking for basic coverage with no extra fees, Choice Home Warranty might be your best bet. Be sure to read the fine print before making a final decision.

Having a reliable home warranty plan in place for your heating system gives you peace of mind. Take some time to compare these options and pick the one that works best for you. In the end, being prepared for unexpected repairs is worth it!

Steps to Follow for Replacing a Furnace Under Home Warranty Plan


To get your furnace replaced under your home warranty plan, follow these steps with ease. First, contact your warranty provider. After that, your heating system will be examined by a service technician to determine the issue and whether it falls within your coverage plan. Next, get approval for the coverage and replacement from the warranty company. Finally, your furnace will be replaced by a contractor provided by the warranty company.

Contacting the Furnace Warranty Provider

When it comes to replacing your furnace under a home warranty plan, the first step is to contact the provider. Do this quickly, as a delay can affect your claim. Find their phone number or website and follow their instructions. Have your policy info on hand.

The provider will send a tech to assess the issue and give any info needed about the problem. After the tech determines the furnace needs replacing, they will guide you. Keep detailed notes of all communication between you and the provider. Stick to any timelines or deadlines they suggest.

Contacting your warranty provider is key. Communicate effectively and follow instructions. You’ll get efficient service and support.

Examination of the Furnace by the Service Technician

The inspection of your furnace by a service technician is key when replacing it under a home warranty. They’ll check the heat exchanger, ignition system, and burners. This helps decide if you need repairs or replacement. They may also look for cracks or leaks. 

If repairable, they’ll provide a quote so you can make a decision. If it needs replacing, they’ll give you options for a new one.

Trust the tech’s expertise and judgment. And follow other essential steps to replace your furnace such as maintaining it regularly and investing in energy-saving models

That way, you’ll have a cozy home and save cash!

Getting Approval for Coverage and Replacement of Furnace

When you need to replace a furnace under a home warranty plan, there are specific steps to take. Contact your warranty provider immediately and note the contract terms. Remember these four points:

  • Give the details of your existing furnace
  • Pay any required fees
  • Schedule an approved technician
  • Sign any contracts and agreements

Time is of the essence – provide information quickly! Research different policies and read the fine print.

Sally’s story serves as an important reminder. One winter, her furnace failed and she contacted the warranty provider. Despite the frustration, Sally was able to get her furnace replaced entirely under the policy terms.

Be aware of the challenges that come with replacing a furnace under a warranty plan. Knowing the right steps can make all the difference in ensuring successful coverage and repair.

Replacement of Furnace by the Contractor

If your home warranty plan’s furnace needs replacing, contacting a contractor is a must!

  • They’ll inspect your current furnace and install the new one that meets your household’s specs. 
  • Give them all the details of the furnace’s make, model, age, and issue so the replacement process goes quickly.
  • When you consult with the contractor, you’ll need to decide on different furnace choices with different AFUE ratings. The higher rating, the better the energy efficiency. 
  • The contractor can aid you in picking the right choice according to your budget and installation criteria.
  • Check the terms of your home warranty plan before booking the service. 
  • There may be limits on coverage amounts or extra costs based on the type of furnace you install.

Remember, a great home warranty plan is like a great furnace dependable, efficient, and won’t leave you out in the cold!

Conclusion:


Choosing the right home warranty is key. Don’t just pick the cheapest one – read the fine print and make sure it covers your needs. Find a company with a good record and stellar support. Also, check what each plan includes. Some just include basic repairs, while others provide complete coverage for all home systems and appliances. American Home Shield is an example of a reliable provider. They offer different options that can fit any homeowner. When selecting a home warranty, factor in your individual needs. Look into providers’ reputations and policies. That way, you’ll make a wise choice that brings peace of mind.

About the author

Debarghya Roy: A heating systems author, Passionate about energy efficiency and sustainability, Sharing insights and empowering readers through informative blog articles.