Will Homeowners Insurance Pay For A New Furnace? 
A homeowners insurance policy will pay to replace a furnace if damaged or destroyed by a covered loss . For example , if the furnace is damaged from fire or water damage , it would be replaced . If this question is aimed at replacing a furnace due to breakdown , the homeowners policy is not a home warranty policy . A home warranty policy should be reviewed regarding coverage for the maintenance or replacement of the furnace . In a few States and with select companies , there may be a Home Warranty endorsement available which may be purchased as an addition to the homeowners policy ; however , this is rare . 