Dan, your caption says both home buyer and seller. I agree with the rest. I do not think a general homeowners insurance policy will cover normal wear and tear on the heating unit/system or other major systems in the home. They will cover damages from malfunctions or accidents. But, now that you are aware of the problem, you should go ahead and replace the unit, especially if you intend to put htis home on the market.

Let me clarify a bit:
A older heating unit that still functions, may not need to be replaced.
A heating unit not functioning now-you might want to consider replacing, especially if you intend to sell.

I see that some of the comments mentioned getting (American Home Sheild) AHS Warranty or even HMS, which is great. I have a policy myself. But, it is important to note that a home warranty policy does not cover pre-existing conditions. If your unit is older, yet functional and you know it might need to be replaced within the next few years, you might want to seek out a home warranty program. If the unit is malfunctioning now. even if you purchase a policy, your pre-existing condition may not be covered.

The other thing to consider is that the price of a home warranty policy itself varies if
a. It's your investment property and you do not live there.
b. It's a multifamily home and you do live in one of the units.

I hope that helps!
Please visit my profile if you liked to learn more about me.

No Dan, your homeowner's policy will not cover a new furnace or heating system. If the furnace or other sysyems in the home leaked or caused damage, then repairing the damage might be covered, but not the replacement of the item.

You might want to look into a company like American Home Shield - a nationwide company - who offers a home warranty plan. A service call is $95, per each occurance, and any cost for repairs above that is covered by the policy.........if it can't be repaired, replacement might be covered (usually capped at $1500). The plan offers different a la carte coverage options, including appliances and pools.

Hope this helps....
Best wishes
Debbie Rose
Prudential NJ Properties

Hi Dan,

I own several investment units and I have had heating systems fail and if the system fails due to age/wear-and-tear then your insurance policy WILL NOT cover the claim.

Mark Warren
REALTOR

Dan,

You will probably not get any coverage from your homeowners on this. If you own investment properties, you may want to consider some of the Home Warranty companies that sellers sometimes offer as part of the sale of their home. The average policy costs about 400-500 per year depending on coverage, and there is a nominal serivce call fee (about 60) and in some cases if the heat/AC/appliance cannot be repaired, they'll replace it. Some of my clients with rental properties buy these policies and love it.

Here is a link to one of the larger companies (I have nothing to do with them & get no benefit for recommending them). You could probably search & find many companies on the internet who provide warrantys.

http://www.ahswarranty.com/

Hope this helps!

Barbara Smith
Weichert Realtors
NJ/PA Licensed Realtor
cell/text: 609-980-7593
email: BarbSmith321@comcast.net

perhaps if you had a malfunction etc but if old and just worn out likely not. Ask your insurance agent. Good luck. I had warranty replacement of leaking heat exchanger in my Trenton home's oil fired furnace less than 2 years ago and was just told this week that the newer one is cracked also and should be replaced. They are warrantied for about 20 years but if the company is out of business I am out of luck. In future I am likely going gas,high efficiency and top brands only.