Is it time for a new furnace and water heater?

A furnace or water heater breakdown poses significant risks for your home … and your home insurance coverage.

A malfunctioning furnace has the potential to overheat or ignite nearby combustible materials, with the result being a fire. A broken furnace can also increase the likelihood of carbon monoxide poisoning in your home. Carbon monoxide is a colourless, odorless gas that is extremely dangerous, and poisoning can result in hospitalization or even fatalities. A furnace that is not working properly may even lead to frozen and burst pipes in the winter.

A burst or leaking water heater can cause extensive damage to walls, floors, ceilings, and personal belongings, requiring costly repairs or replacements. If not caught quickly enough, there is the risk of mold, which further damages your property and also poses health risks to occupants, potentially leading to respiratory issues and allergies. Additionally, water leakage around electrical components near the water heater can lead to short circuits, electrical fires, or electrocution risks for occupants. The damage may even render your home uninhabitable until repairs are completed.

How to determine the age of your furnace and water heater

To find out how old your furnace and water heater are, check their manufacturer’s labels for installation date information. On furnaces it is typically found at the top left, top right, bottom centre, or on the backside of one of the panels. On water heaters it’s usually found on the side. If the installation dates aren’t legible, you can try contacting the manufacturer with the serial numbers.

Water heaters typically last eight to 12 years, with sediment buildup accelerating wear and tear, and furnaces generally last from 15 to 20 years with regular maintenance.

Signs your furnace may be failing

1. Chilly drafts

An obvious sign that your furnace isn’t working properly is a home that just won’t warm up. The most common culprit behind a furnace blowing cold air is a malfunctioning motor, or there may be issues with the pilot light or heat exchanger.

1. Unusual racket

While some noise occurring when your furnace is running is normal, excessive noise is another warning sign, possibly due to loose mechanical components. Squealing, popping, or booming sounds during operation signal potential problems that require professional attention. Ignoring such noises, especially if they stop abruptly, could lead to an emergency situation.

1. Frequent maintenance calls

A well-maintained furnace should last up to two decades with regular care and maintenance. You can expect a few repairs to be required, but if you are calling the furnace repairperson often it may be time to assess whether frequent repairs remain cost-effective. In some cases, ongoing repair costs may exceed the expense of a new furnace.

1. Health complications

Efficient furnaces play a vital role in filtering out airborne contaminants and help ensure good indoor air quality. Inadequate ventilation or a cracked heat exchanger can result in harmful gases accumulating, including carbon monoxide, which poses serious health risks. Symptoms such as headaches, watery eyes, allergies, respiratory problems, or persistent coughing, may indicate a failing furnace. Make sure to check your carbon monoxide detector biannually.

1. Escalating energy costs

Older furnaces often become less efficient over time. As a result, they may consume more energy while struggling to maintain desired temperatures.

An inefficient furnace leads to increased fuel consumption, which is often reflected in higher utility bills. Dirty filters obstruct airflow, so don’t forget to change your furnace filters when recommended by the manufacturer.

1. Water leaks

Water leaks from a furnace are less immediately hazardous than gas leaks, but still indicate serious underlying issues. A visible pool of water near the furnace suggests potential problems, such as a clogged condensate line.

Signs your water heater is about to go

1. Unusual noises

Strange noises, such as popping, banging, or rumbling, could signify the impending failure of your water heater. These sounds often stem from sediment accumulating at the tank’s bottom, which can lead to overheating and the eventual malfunction of the unit.

1. Inconsistent water temperature

It’s a sign of trouble is your water doesn’t warm up even after running it for a while.

1. Decreased water pressure

Diminished pressure from hot water faucets could be because of sediment buildup in your water heater. Over time, sediment accumulation within the tank can result in various performance issues.

1. Discoloured or rusty water

Yellowish, discolored, or rusty-looking water may mean the failure of an anode rod. Responsible for protecting the tank’s interior from corrosion, a failing anode rod may lead to rusting of the tank itself.

5. Leakage

Leakage from your water heater necessitates immediate attention. Any leakage means a major malfunction. Act quickly to prevent extensive damage to your property.

6. Increased energy consumption

Minerals in water settle and solidify over time, which slows heat transfer and lessens your water heater’s overall efficiency.

7. Unpleasant odours

Strange odours from your water are often due to bacterial growth in the tank, which is why regular draining and maintenance are essential.

The significance of your furnace and water heater for your home insurance

Insurance companies take into consideration the age of both your furnace and water heater when evaluating insurance risks. Aging water heaters are at a higher risk of leaks leading to potential flooding, while older furnaces pose risks of fire, leaks, explosions, and carbon monoxide poisoning. Providing accurate age information about these appliances to your insurance broker ensures that the coverage we at Lane’s find for you will adequately address your potential risks and liabilities. It’s essential to avoid misrepresentation or fraud when disclosing this information, as dishonesty could result in denied claims, policy cancellation, or legal repercussions.

At Lane’s Insurance of Calgary, our experienced insurance brokers will help you find the home insurance coverage that best meets your needs through providing a valuable combination of perfectly tailored coverage, quality services, and fair pricing. Contact us at:

• Our Calgary office
• Our Edmonton office
• Our Banff office
• Serving the rest of Alberta