Does a Home Warranty Cover Furnace Repairs or Replacement?

When a furnace stops working, especially during colder months, homeowners need quick clarity on what help is available. A common question is whether a home warranty will cover the cost of repairs or, in more serious cases, replace the furnace entirely.

Furnace coverage is often part of broader HVAC home warranty coverage, which may also include air conditioning units, heat pumps, and related components, depending on the plan. This guide explains how home warranty furnace coverage typically works, when repairs are approved, and when replacement may apply.

When Furnace Repairs Are Covered by Home Warranty Companies

A furnace repair home warranty is designed to cover mechanical and electrical breakdowns caused by normal wear and tear, not preventable damage such as those arising from neglect or improper installation.

Repairs are more likely to be approved when:

• The failure happens after the warranty coverage begins
• The issue involves a mechanical or electrical component
• The breakdown is not related to code violations or improper installation
• The furnace has been used under normal household conditions

In these situations, the warranty typically pays for eligible parts and labor, up to the plan’s coverage limits, after the homeowner pays the service request fee.

What matters most is why the furnace failed. A worn component that reaches the end of its lifespan is very different from a failure caused by missed maintenance or installation issues. Understanding that distinction helps homeowners know when a claim is likely to be approved and when coverage may not apply.

When Furnace Replacement Is Covered (and When It Isn’t)

Under a furnace replacement home warranty, replacement is considered only when repair is no longer practical under the service contract. Replacement may be approved when:

• The furnace is deemed non-repairable because the required parts are no longer available
• The cost of repairing major components exceeds the plan’s coverage limit
• Multiple critical components fail at once, making repair impractical

For example, if an older furnace experiences simultaneous failure of the blower motor and control board, and the combined repair cost exceeds the contract cap, the warranty provider may approve replacement instead of repair.

However, replacement is not automatic and comes with important limitations. Many plans apply:

• Coverage caps that limit how much the warranty will pay toward replacement
• Age-based considerations, especially for older furnaces nearing the end of their expected lifespan
• Contract terms that specify replacement value rather than the cost of a brand-new system

In practice, this means a replacement may be offered as a like-for-like unit or as a credit toward a new furnace, rather than full coverage of a premium upgrade. Homeowners are often responsible for paying the difference if the new system replacement costs exceed the covered amount.

Replacement is typically not covered when:

• The furnace failure is linked to a pre-existing condition
• The system failed due to a lack of maintenance or improper installation
• Code upgrades, permits, or ductwork modifications are required
• The furnace was part of a secondary or seasonal heating system

Because replacement decisions depend heavily on contract details, understanding coverage limits and exclusions before filing a claim can help homeowners avoid unexpected costs and delays.

Common Furnace Problems That Trigger Warranty Claims

Many furnace issues start with subtle symptoms but point to larger internal failures. Home warranty claims are most often filed when these problems interfere with heat delivery, system cycling, or overall reliability.

Common furnace problems that frequently lead to warranty claims include:

• The furnace turns on but blows cold air: This often signals a failed blower motor, a faulty ignition system, or a sensor that is no longer regulating heat properly.
• The furnace won’t turn on at all: Electrical control board failure, ignition issues, or a malfunctioning thermostat are common age-related causes.
• Short cycling: When a furnace turns on and off repeatedly, it may indicate a worn limit switch, failing sensor, or airflow-related mechanical issue.
• Inconsistent or uneven heating: Rooms that heat unevenly can point to blower motor wear, thermostat communication problems, or aging internal components.
• Unusual noises such as banging, rattling, or clicking: These sounds often develop as internal parts loosen or motors begin to fail after extended use.
• The blower runs continuously: A blower that will not shut off may be caused by a failing control board or relay rather than a user setting issue.

When these issues are tied to regular use, a home warranty typically covers the diagnosis and repair of eligible components, subject to the plan’s terms and service fee.

Furnace components that are commonly covered include:

• Blower motor and fan assembly, which move heated air through the ductwork
• Ignition system components, such as igniters or pilot assemblies that start the heating cycle
• Control boards and internal electrical controls, which manage furnace operation
• Heat sensors and limit switches, which regulate temperature and ensure safe operation
• Thermostats, when included in the plan and tied directly to furnace function
• Internal mechanical parts, such as relays or valves, that wear down with age

Home warranty furnace coverage generally applies to central heating systems designed to heat the entire home, rather than supplemental or room-specific units.

Furnace-related items that are usually not covered include:

Home warranties are designed to repair functional breakdowns, not to modernize or correct structural or compliance-related issues. As a result, furnace coverage usually does not extend to items that fall outside the core operation of the heating system.

Common exclusions include:

• Space heaters or room-specific units
• System upgrades or modifications, such as ductwork changes or capacity expansions
• Code-related work, including permits or updates required to meet current building standards
• Add-on systems, like zoning controls, humidifiers, or smart-home integrations
• Cosmetic or non-functional issues, such as surface rust, dents, or appearance-related wear

For example, if a furnace control board fails due to age, that repair may be covered. But if replacing it triggers a requirement to update surrounding electrical components to the current code, the warranty typically covers the failed part only, while upgrade-related costs fall to the homeowner.

How Home Warranty Furnace Claims Work

In most cases, filing a furnace claim follows these steps:

• Claim filing: First, the homeowner initiates a service call by filing a claim online or by phone, describing the issue and when it started. A service fee is paid at this time, which covers the technician’s visit and initial diagnosis.
• Diagnosis: Next, the service provider dispatches a licensed HVAC technician to inspect the furnace. The technician identifies the failed component and determines whether the issue resulted from normal wear and tear or from a condition excluded under the contract.
• Repair or replacement: If the repair is eligible, the warranty covers approved parts and labor up to the plan’s coverage limits. Repairs are prioritized, and replacement is considered only if the furnace cannot be economically repaired under the contract terms.
• Coverage cap: If replacement is approved, the warranty applies the covered amount toward a replacement unit. Any costs beyond the coverage limit, including upgrades, permits, or code-related work, are typically the homeowner’s responsibility.

This process removes the need to source multiple contractors or negotiate repair pricing during an already stressful situation, allowing homeowners to focus on restoring heat safely and efficiently.

Tips for Maximizing Your Furnace Coverage

Homeowners can improve claim outcomes and reduce delays by taking a few proactive steps.

• Keep up with routine maintenance: Replace filters regularly, keep vents clear, and schedule periodic inspections. This helps confirm that a failure resulted from normal wear and tear rather than neglect. Also, keeping basic maintenance records can help support claims when coverage eligibility is reviewed.
• File a claim as soon as symptoms appear: Noises, short cycling, or inconsistent heating often worsen over time. Reporting issues early helps prevent secondary damage and establishes a clear failure timeline.
• Review your service contract before filing: Understand coverage limits, service fees, and excluded items to avoid surprises during the claim process.
• Document noticeable changes in performance: Note when the problem started, how the furnace is behaving, and whether the issue is getting worse. This helps technicians diagnose the problem more efficiently.
• Ensure the plan covers your heating system: Older furnaces or more complex HVAC system setups may require broader coverage or higher caps to minimize out-of-pocket costs.

FAQs About Furnace Warranty Coverage

Does a home warranty cover a furnace that stops working?

Yes, a heating system home warranty typically covers furnace repairs when the breakdown is caused by normal wear and tear and occurs after coverage begins. The failure must involve a covered mechanical or electrical component.

Will a home warranty replace my entire furnace?

Possibly. Replacement is usually considered only when the furnace cannot be repaired or when repair costs exceed the plan’s coverage limit. Replacement is subject to contract terms, coverage caps, and age-related considerations.

Is there an age limit for furnace coverage?

Some home warranty plans apply age or condition requirements. Older furnaces may still be eligible for repairs, but replacement coverage may be limited depending on the system’s age and contract terms.

What isn’t covered for furnaces under a home warranty?

Common exclusions include pre-existing conditions, lack of maintenance, improper installation, code upgrades, cosmetic issues, and non-essential add-on systems like zoning controls or humidifiers.

How much does it cost to use a home warranty for furnace service?

Homeowners typically pay a flat service fee to initiate a furnace claim. Once a technician diagnoses the issue, approved repairs are covered up to the plan’s limits, with homeowners responsible only for any costs that exceed coverage or fall outside the contract.

Explore Furnace Coverage That Fits Your Home

Furnace breakdowns rarely happen at a convenient time. Understanding how home warranty furnace coverage works before a system fails gives homeowners peace of mind—helping them avoid rushed decisions, unexpected costs, and service delays during peak heating season.

If you’re comparing options, explore ARW Home's Platinum and Platinum Premier plans that include coverage for heating systems and HVAC repairs, along with major home systems and appliances.