Best Home Warranty For Furnaces

Our 3 picks for home warranties for furnaces

• Best overall: Old Republic Home Protection
• Best for variety of plans: American Home Shield
• Best for customer service and claims handling: Regency Total Warranty

Home warranties for furnace coverage: a guide

In today's market, finding the best home warranty for your furnace can be a daunting task. With so many providers offering different levels of coverage, it’s important to understand what each plan includes and how it works. This guide will help you find the best warranty for your needs.

How to choose a furnace warranty

Choosing a home warranty can feel overwhelming. You want a policy that will cover you when something breaks, not one that leads to more frustration.

1. Consider the coverage you need

When shopping for a furnace warranty, consider comprehensive coverage for other electrical systems and home appliances. List the home systems and appliances likely to need repair soon and those that are new and may remain reliable for a few years.

Also consider the furnace’s age, as some plans won’t cover older units. If you think it may need replacement soon, look for coverage that includes removal of the old unit.

Home warranties are typically one-year contracts, so focus on plans that cover your older systems rather than those still under the manufacturer's warranty.

Pro tip

If you don’t need appliances coverage at all, look for a “systems only” plan. This will be cheaper while still covering your furnace.

» RELATED: Questions to ask a home warranty company

2. Compare coverage and cost

As you review plans, you’ll likely focus on the monthly or annual price. However, also consider the service fee and the cost of any optional add-on coverage.

• Service Fee: This is the charge you pay when a contractor visits your home.
• Optional add-on coverage: You may be able to add coverage for items not automatically included in your plan, like roof leak repair.

3. Read reviews

Customer reviews can tell you a lot about what it’s like to work with a company before you sign up. Look for reviews that praise the customer service and have an easy claims process.

Look for consistency across many reviews. All home warranty companies will have mishaps. But if there is a recurring theme that filing a claim is difficult, then that’s something to watch out for. Pay attention to how the company handles complaints.

What to know about home warranty contracts

To choose the best policy for your furnace, you’ll need to understand how coverage and exclusions work. Here is what to pay attention to in the fine print of your service contract.

• Maintenance records: To be eligible for coverage, you may be asked to provide proof that you have done proper maintenance on the unit. For example, American Home Shield does not require maintenance records, while Regency Total Warranty does.
• Previous repairs: Determine if the policy will cover systems and appliances that other companies have previously serviced. Not all do. If your furnace has been repaired before, verify that the home warranty will cover it.
• Policy limits: Each company has its own policy limits, so you’ll want to compare policies and ensure you are comfortable with that amount.
• Depreciation: It’s important to understand how depreciation works. If your system needs replacement, the warranty covers up to the depreciated value or the policy limits, whichever is lower. For example, if you have a $5,000 system expected to last 10 years but it needs replacement after five years, the warranty may only cover $2,500 for a new system.

Cancellation and renewal policies

Before signing up, ensure you understand how to cancel and what steps are required to renew. If the policy renews automatically, track both the renewal and cancellation dates to avoid unwanted renewals.

If the policy doesn’t renew automatically, track when you need to sign up again. Hopefully, you will be happy with your choice, but if not, know how and when to cancel.

» TIPS: How to read a home warranty contract

Home warranty coverage for furnaces

Home warranty furnace coverage helps pay for repairs or replacements when your heating system breaks down from normal wear and tear. Many plans include both the furnace and ductwork, with limits on how much the company will pay per year.

Home warranties typically cover only wear and tear, not damage to the unit.

What a home warranty plan covers varies by provider. For example, with Old Republic, ductwork is a covered item, but diagnostic testing to find leaks is not.

Replacement coverage limits also vary. For example, First American doesn’t cap HVAC coverage, whereas Regency Total Warranty has a $5,000 limit per system per year.

A home warranty doesn’t cover damage that was caused by outside forces, such as fire and severe weather. That’s what homeowners insurance is for. Having a home warranty and insurance provides two layers of protection — you’re covered for both everyday breakdowns and larger, unexpected disasters.

» RELATED: How much does it cost to get a new furnace?

Pros and cons of home warranty furnace coverage

Home warranty can be worth it if you want the peace of mind knowing you won’t have to pay out of pocket for unexpected home repairs. Plans also add convenience and potential cost savings when buying or selling a house.

However, a home warranty isn’t right for everyone. You should probably skip getting one if you’re moving into a brand-new house with new systems.

How much is a home warranty with furnace coverage?

You can expect to spend about $45 per month for a warranty plan that covers your furnace. In general, home warranty costs depend on the type of coverage: appliances, systems or both.

The best plan for you may not be the cheapest. It’s best to consider your needs and find a plan that fits before comparing prices.

Methodology

To find the best warranty coverage for furnaces, we researched 49 home warranty companies and scored them on measurable criteria grouped into two main categories:

1. Customer satisfaction metrics

We conducted sentence-by-sentence sentiment analysis of thousands of verified customer reviews to measure satisfaction with:

• Service technicians
• Customer service
• Claims handling
• Punctuality
• Coverage
• Price
• Refunds and payouts

2. Key home warranty company features

Companies earned higher scores for offering:

• Multiple plans covering furnaces
• Higher payout limits

The ConsumerAffairs Research Team takes a data-driven approach guided by expert editors. Each company received a score of 0 to 10 for every metric, with 10 awarded to the top performer in each category. Metrics are weighted differently for each award calculation.

The company with the highest score in each category's weighted formula received the “Our pick for” designation. When a single company scored highest across multiple categories, the company with the second-highest score was named the winner.