Is Furnace Repair Covered by Homeowners Insurance? (A Texas Homeowner’s Guide)

December 15, 2025

TL;DR: The Quick Answer

• Standard Breakdown: No. Most homeowners' insurance policies do not cover furnace repairs due to normal wear and tear, age, or lack of maintenance.

• Covered Accidents: Yes. Insurance typically covers damage caused by "perils" like fire, lightning, falling trees, or sudden water damage (burst pipes).

• Home Warranty vs. Insurance: Don't confuse the two. A home warranty usually covers wear and tear; insurance covers disasters.

• The DFW Exception: If your unit was damaged by a winter storm (like a freeze), coverage is more likely.

 

When Does Homeowners Insurance Cover Furnace Repair?

In the insurance world, coverage depends entirely on how the damage happened. If the damage was sudden and accidental—what insurers call a "covered peril"—you are likely in the clear.

Here are the specific scenarios where your policy usually pays out:

1. Fire and Lightning Strikes

If a fire damages your HVAC unit, or if a lightning strike fries the electrical components of your furnace, standard policies almost always cover the cost of repair or replacement.

2. Falling Objects

Here in North Texas, severe storms can knock tree limbs onto your roof or outdoor units. If a tree falls and crushes your external heat pump or damages the gas line feeding your furnace, this is a covered event.

3. Sudden Water Damage

This is the big one for our McKinney and Frisco neighbors. If a pipe bursts above your furnace and water destroys the control board or blower motor, the resulting damage to the furnace is typically covered (though the repair of the pipe itself might not be).

4. Vandalism or Civil Unrest

While rare, if someone intentionally destroys your HVAC equipment, it is a police matter and an insurance claim.

Airview AC Expert Note: “Insurance adjusters will always ask for maintenance records. If you can’t prove the unit was taken care of, they may argue the damage was due to negligence, not the accident. Keep your receipts!”

 

When Is Furnace Repair NOT Covered?

This is the hard truth: 90% of furnace breakdowns are not covered by insurance. Insurance is designed for catastrophes, not maintenance.

Normal Wear and Tear

Just like your car insurance doesn't pay for an oil change or a new transmission when it hits 150,000 miles, homeowners' insurance does not cover your furnace dying of old age. If your heat exchanger cracks because the unit is 15 years old, that is an out-of-pocket expense.

Lack of Maintenance

Negligence is the number one reason claims are denied. If your furnace overheats and fails because you haven't changed the air filter in two years, the adjuster will deny the claim. This is why enrolling in a Preventive Maintenance Plan is crucial—it builds a paper trail of responsibility that proves you took care of the unit.

Mechanical Breakdown

If a specific part—like a blower motor or ignitor—fails simply because it broke, that is considered a "mechanical breakdown." Standard insurance excludes this. However, if you have a Home Warranty (a separate contract), that would likely cover it.

 

The "Texas Freeze" Factor: Freezing Temperatures

Living in the Dallas-Fort Worth area, we all remember the grid failure. Does insurance cover freeze damage?

Generally, yes, but with a catch. According to the Texas Department of Insurance, if your furnace stops working because ice blocks the intake vent or a pipe bursts and floods the unit, it is likely covered. However, if you left your home unheated during a freeze and the pipes burst because you didn't take precautions, they may deny your claim on the grounds of "negligence."

 

How to File a Claim for HVAC Damage

If you believe your furnace damage is due to a covered peril (storm, fire, water), follow these steps to ensure your claim is approved:

1. Document Everything: Take photos of the damage immediately. If a tree hits the unit, snap a picture before moving the branch.

2. Call Airview AC for a Diagnostic: You need a professional to write a report. As your local furnace repair experts in McKinney, we will inspect the unit and state clearly in writing: "Cause of failure: Lightning st "ike" rather than "Cause of failure: Old age." This wording matters.

3. Review Your Deductible: If the repair costs $800 but your deductible is $1,500, do not file a claim. It's not worth the potential premium hike.

4. Submit the Report: Send our technical report and the photos to your adjuster.

 

Need a Second Opinion or Emergency Repair?

Whether it's an insurance claim or just time for a tune-up, you need a partner who understands the specific heating challenges of North Texas. Don't get left in the cold. You're not sure whether your repair is covered, call us. We can inspect the system, provide the honest documentation you need for your insurance company, or help you explore Financing Options if the claim is denied.

Contact Airview AC Today for 5-star service in McKinney, Frisco, and beyond.