Category: Winter Losses

Types of Boiler Losses Most Likely To Lead To An Insurance Claim

With snow piling up and outside temperatures below freezing, a policyholder in New York doesn’t want to worry about the boiler not working during the winter months. But then there is a bang, and it smells like soot near the boiler. The insured just lost a method to heat their home, and an adjuster will now receive a claim for a damaged boiler.

Insurance adjusters should be familiar with the causes of most boiler damages – including puffbacks, low water cut off malfunction, surges, theft, and water – to understand why it’s critical to assess the equipment before settling a claim. Many of these damages fall under the category of wear and tear, which isn’t typically covered in an insurance policy and accounted for 44 percent of the boilers in claims HVACi assessed last year.

Boilers Rely on Water To Distribute Heat Evenly

Boilers have a variety of equipment used to heat water or steam that is transferred via pipes and terminals, including radiators and non-electric baseboard registers, to warm a home or business.

Unlike a furnace that delivers heated air through ductwork and vents, boilers are hydronic systems that distribute steam or hot water throughout buildings to provide heat via pipes and terminal units. Water or steam radiators, non-electric baseboard registers, and underfloor tubing hydronics systems are among the terminals used.

Boilers are commonly fueled by natural gas, which burns cleanly and comes from an installed natural gas line, or by oil, which requires a large onsite tank. Propane can also fuel boilers, though it is mainly used in areas where oil is not common or where there is no natural gas service. Another option, though also more rare, are wood-burning boilers. Boilers that run on oil can cost double or triple the price of one that uses natural gas, though a boiler’s efficiency and size can affect equipment and installation totals for either type.

The kind of boiler and the types of terminal units being used can affect which peril is more likely to occur.

This short technical video explains how boilers work and their components.

Puffbacks Occur Following Fuel Buildup – And Poor Maintenance

An insured hearing a bang from the boiler may be an indication a puffback has occurred. Something has caused an oil or gas buildup within the heat exchanger, and the excess fuel produces smoke when it ignites. Puffbacks are more likely to occur in oil-fueled boilers because these types of systems need to be serviced more frequently and excess oil is less likely to dissipate than natural gas.

Triggers for this include: a leak causing fuel to build up in the heat chamber; accumulated gas or oil from manually resetting the system too often when it fails to ignite; an exhaust or flue that is clogged by dirt, dust, fuel residue, rust, or corrosion; a cracked heat exchanger; a clogged or cracked oil fuel nozzle that causes oil to spray unevenly into the burner; or a clogged burner full of dirt, dust, fuel residue, rust, or corrosion that causes a misfire and allows for fuel to build up in the combustion chamber.

Because turning a system back on after a puffback isn’t recommended, HVAC professionals can test a system by checking for fuel leaks, examining the flue for clogs, holding a candle near the heat exchanger while the blower is on to detect a crack, and inspecting the oil nozzle and burner assembly.

Puffbacks can be costly and even dangerous for a policyholder, but they are typically the result of poor maintenance and age-related wear and tear.

Low Water Cutoff Malfunctions Send Wrong Messages to A Boiler

Low water cutoffs can be clogged by Total Dissolved Solids in the supply water, which could cause them to send wrong messages to the boiler and either run without an adequate water supply or shut off unnecessarily.

Water is integral to a properly functioning residential or commercial boiler, and it’s important an adequate supply is available. Low water cutoffs are meant to turn off a boiler if there isn’t enough water to transfer heat to, but they can also malfunction and cause further damages by sending the wrong message.

Low water cutoffs can be electronic or mechanical. Mechanical is the most widely used water-level safety device, but it is also the switch more likely to fail. A properly working mechanical low water cutoff has a float that stays at the surface of the water. When the water level increases, the float valve goes up, and when the water level drops, the float valve lowers with it. When water gets to an unsafe low level, the boiler shuts off.

Supply water has Total Dissolved Solids (TDS), including minerals, dirt, and rust, that build up over time. Too many TDS could cause the mechanical-float low water cutoff to get stuck and prevent it from moving with the water level. If the water level became too low, the boiler wouldn’t automatically shut off.

Foaming water can keep a mechanical float higher than the actual water level. If the water level decreases too low, the foam could inhibit the mechanical float from recognizing the drop and shutting off the boiler.

In both situations, the malfunctioning low water cutoff could allow the boiler to run without water, which is called a dry fire. The heat generated in the boiler’s combustion chamber cannot transfer the heat to the water, and instead, the heat exchanger and boiler tubes overheat. If this happens for too long, the metal walls of the burner, boiler, or heat exchanger can weaken and crack. This could lead to a fire, explosion, or, in most cases, a leak from water escaping via the crack.

Cold temperatures could cause the circulation pipes for the boiler to become frozen, which will keep the system from receiving an adequate water supply. If the low water cutoff malfunctions at the same time, this could also result in dry fire.

On the other hand, a water-logged float could sink to the bottom regardless of the water level. This sends the message that the supply is too low and unnecessarily shuts down the boiler.

Like a puffback, failures of a low water cutoff switch point to a lack of regular maintenance or age-related wear and tear. To prevent any malfunctions, TDS should be removed by regularly flushing the low water cutoff valves. Boiler feedwater should also be chemically treated to prevent scaling and maintain proper pH levels. Low water cutoff equipment is less expensive to purchase, install, and maintain when compared to the catastrophic damage that can occur from dry fire.

Surges Affect A Boiler’s Electrical Components

Lightning and high voltage surges are among the perils that can damage a boiler system’s electrical components, including the thermostat.

High voltage surge is a voltage fluctuation that can lead to overarching electrical damage. Surges affected 10 percent of the boilers HVACi assessed last year because they can impact the boiler’s electrical components.

Thermostats can be digital or use smart technology to make them easier to set to a desired temperature. They signal the burners to ignite to warm the boiler’s heat chamber. Other electronic boiler components can include an electronic low water cutoff or an electronic ignition that doesn’t require a pilot light. Additional components that could malfunction from surges are aquastats, circulating pumps, and some electronic zone control valves.

If a boiler is fully electric it can be at risk for more damages from surge. These do not use any other fuel source to generate steam to heat a facility and are more efficient, according to the U.S. Department of Energy; however, the cost of electricity makes all-electric boilers too expensive.

Similarly to the impacts of surges on consumer electronics, electronic boiler components should be evaluated by a professional following a voltage irregularity and could require replacement.

Water and Freezing Damage Boilers and Property

Boilers have gas valves and burner assemblies that are among the equipment that can be damaged when submerged by water.

As critical as water is to a boiler system, it can also be the cause of major damages.

Elements affected from prolonged water exposure are the electrical components, burner, and the combustion or heat chamber. If the system or components got wet during a loss, the system should be evaluated by an HVAC professional for potential damages or issues related to water damage.

Policyholders sometimes opt for an underfloor hydronics system, which uses pipes between the slab or subfloor and finished flooring to heat a room. Leaks in a pipe may be difficult to detect until major water damage has occurred.

Freezing, another peril that damages boilers, causes pipes, terminal units, or valves to burst and results in water damage. Repairs may be difficult depending on what metal was used in the pipes. Copper is easier to repair, while cast iron may need to be replaced.

Theft Is Rare, But It Does Occur

Only 2 percent of the boilers in claims HVACi assessed had theft and vandalism as the cause of loss, but it can happen. Copper is a popular metal to steal, particularly from HVAC equipment. The theft of copper piping in boilers could damage other components and wires that will need evaluation.

Theft, water, surges, puffbacks, and low water cutoff malfunctions are all damages that need a trained eye to accurately confirm cause of loss and scope of damage. By not doing that, adjusters risk settling for a peril that isn’t covered by a policy or paying for replacements that aren’t necessary.

HVACi is the nation’s leading provider of HVAC and Refrigeration assessments for insurance carriers. Adjusters should submit a claim to receive comprehensive and objective claim handling solutions in a timely manner.

Furnace Claims 101: The Basics of a Residential Furnace

A furnace is an essential part of many homes, and frequently used during the colder winter months. With this increased usage, adjusters can expect to see a parallel increase in furnace claims. Here’s a quick refresher on the basics of furnace systems, their typical components, and common failures to be familiar with.

What Is a Furnace?

The furnace, a type of forced-air system, acts as the primary heating source for a residential structure. Despite their complex appearance, furnaces are relatively simple to operate and understand. While they may have multiple fuel types, each furnace contains similar components designed to ensure that it runs smoothly and safely. Still, it’s crucial that all furnaces are regularly maintained and inspected to confirm that all parts are working properly.

How Does a Furnace Work?                                                   

To operate the furnace, the user sets the desired temperature at the thermostat, which sends a signal to the system to engage. The heat source warms the air (either directly or through the use of a heat exchanger), which then blows through the ductwork and out the supply registers into various rooms of the house. Once the set temperature of the thermostat is satisfied, the furnace automatically shuts off until the temperature falls below its setting again.

Understanding the Main Types of Furnaces

Today, the most common type of furnace in a home is the natural gas furnace, which utilizes gas via a pipe into the home from a municipal line. A natural gas furnace provides quick, powerful heat at an economical price point.

If a home does not have access to natural gas, an oil-burning furnace may be required. Homeowners with oil-burning furnaces must install a storage tank for the fuel and make sure the tank is always adequately filled for their heating needs. However, an oil furnace carries a much smaller risk of carbon monoxide exposure and is often one of the most durable heating systems.

Another fuel source used for home heating is propane. Similar to oil furnaces, propane requires a fuel storage tank. Propane furnaces provide a clean and safe heating option for areas that don’t have natural gas service.

Although less common, electric furnaces use electric heating elements instead of fuel. They tend to be a less efficient choice, but electric furnaces are often an inexpensive purchase, and they’re more compact and able to fit in smaller spaces.

Types of Damage Furnaces Can Experience

Heat Exchanger Failures

The most common furnace failure is a cracked heat exchanger, which often occurs due to the wear and tear of a system over time. The heat exchanger often rusts or corrodes, which turns into cracks and holes throughout the system. Additionally, thermal fatigue, the gradual deterioration and eventual cracking of the metal, is due to the constant heating and cooling process; this eventually leads to the failure of the heat exchanger. These are not sudden or accidental events — they develop over time.

An example of a rusted and cracked heat exchanger

Puffback

Puffbacks are events in which a buildup of unburned fuel ignites and pushes back out of the burner section instead of burning cleanly into the burner area. In a forced-air system, the soot and oily smoke may leak into the supply air, travel through the ductwork, and be dispersed throughout the home.

The most common cause of a puffback is too much fuel in the combustion chamber at the point of ignition. In oil furnaces, this commonly occurs when water is mixed with the fuel. This creates a sludge-like substance that keeps the oil from burning properly, building up fuel within the combustion chamber. This can also occur if ignition is inconsistent or delayed, as it causes a buildup of fuel in the combustion chamber.

Soot damage following a furnace puffback

If the puffback spreads throughout the home, all items and surfaces affected must be thoroughly cleaned, in addition to the entire furnace and ductwork systems. Steel ductwork can often be cleaned, but flexible ductwork will likely need to be replaced. With regular maintenance, the risk of a puffback can be significantly decreased.

High Voltage Surge

High voltage surges can occur any time of year and may cause damage to the myriad of electrical components in the furnace system. The common parts most likely to be affected are transformers, furnace control boards, thermostats, draft inducers, gas valves, and blower motors. Any electrical issues require a certified HVAC technician to properly diagnose the system to determine what caused the loss and what steps can be taken to return the insured to pre-loss condition.

 Visible surge damage to a furnace’s control board

Smoke and Fire

Residential fires often lead to catastrophic damage, including smoke and residual water damage (see below). Depending on whether the smoke-related damage is from dry smoke, smoke from a protein in a kitchen fire, or oily smoke due to puffback, the type of destruction and the repair options differ. As mentioned, if the smoke enters the furnace system and ducts, everything must be cleaned properly.

Water

Water damage can corrode a system’s internal components, such as the burners, but it’s more likely to cause an issue with the furnace’s electrical components. All water-loss scenarios require a determination of how much water was present, how long the unit was wet, what type of water was involved, and the unit’s overall condition prior to the loss.

In a better-case scenario, the furnace can be dried and cleaned, and only the affected electrical components need to be replaced. In order to make that determination, however, a qualified HVAC technician should be consulted for a final diagnostic report. (Pictured: Corrosion on the furnace’s burners following water damage)

 

HVACi Takes the Guesswork Out of Furnace Claims

Furnaces are the core component of a home’s central heating system, and therefore need to be carefully maintained and inspected on a regular basis. In the case of a loss, a trained technician is often required to evaluate the furnace and ductwork before a claim can be settled.

HVACi’s qualified technicians possess the right training and tools to investigate and identify a furnace system’s current or potential future failures. Based on our technician’s findings and forensics-backed best practices, we provide a report that outlines recommended next steps and a cost estimate. Submit your furnace claim today to settle quickly and accurately.

Boiler Claims 101: The Basics of a Residential Boiler

Each winter, homeowners are reminded of the importance of their boiler systems, particularly if a system isn’t working as it should. As boiler claims begin to appear on adjusters’ desks in the colder season, it’s important to understand the basics of these systems and how they work.

What Is a Boiler?

Boilers are hydronic heating systems, meaning they use water to transfer heat. This type of system has many benefits, one of which is maintaining more consistent temperatures. Boilers are also typically more efficient than forced-air systems and require no ducts. This in turn keeps dust, allergens, and mold from being transmitted into the home’s air via the ductwork.

The boiler sends heated water to the terminal units (radiators in this example). The water transfers heat to the air and then returns to the boiler, where the cycle is repeated.

Understanding the Differences Between Natural Gas and Oil Boilers

Two main types of fuel are used in residential boilers: natural gas and oil. Natural gas burns cleanly and has been cheaper than oil in recent years. Gas is supplied from the utility company through service lines into the home. To identify if a boiler is using natural gas, look for a gas supply line with a shut-off valve near the boiler. (Pictured: A residential gas boiler)

Oil boilers, on the other hand, require a large onsite tank that stores anywhere from 200 to 1,000 gallons. Oil is often used in areas where natural gas is not available.

Delivering Heat Through Different Types of Terminals

To provide heat to a conditioned space, a hydronic system heats water and distributes it through the sealed pipes and into the terminals throughout the property. Three main types of terminals are commonly found in residential properties.

Radiators, one of the most frequently claimed types, are relatively large and typically made from steel, aluminum, or cast iron. More modern radiators use water to provide heat, but about 10% of systems in older homes still have steam radiators. In a steam heating system, the boiler heats the water until it becomes steam. The steam then travels through the radiators to transfer heat before condensing back into water and returning to the boiler for reuse. (Pictured above: A residential radiator)

Another common boiler terminal is a baseboard register. Important note: Some electric baseboards are not connected to any type of central heating system; you can identify these by their individual thermostatic controls. It’s crucial to understand the difference between the two, since electric convection baseboards encounter completely different issues than hydronic. While electric baseboards operate exclusively off of electricity, hydronic heaters produce radiant heat by pushing water up from the boiler and through the baseboards’ uniquely fin-shaped pipes for an even warmth. (Pictured: Inside of a baseboard register)

An underfloor hydronics system is another type of boiler terminal, although less common than radiators or baseboard registers. Here, water is brought up from the boiler and delivered through the individual pipes located on top of the slab or subfloor. The pipes are covered by the finished flooring and produce an even, radiant heat that rises from the floor. The biggest disadvantage to this type of hydronic system is the ability to easily diagnose a pipe leak.

An underfloor radiant heat system

Common Types of Boiler Losses

Boilers can encounter significant (and costly) issues, particularly during the winter months. It’s critical for adjusters to work closely with a trained technician to diagnose and repair all issues that may occur with a hydronic system, as the slightest oversight can create dangerous situations.

Freeze Damage

During the winter months, freezing temperatures can burst pipes and valves on all types of boilers. This can occur in a single zone or throughout a home’s system, and the resulting water damage can be catastrophic if it’s not handled quickly. Additionally, the scope of damage may vary significantly. While copper piping can be easy to repair, cast iron is not, and cracked radiators will need to be fully replaced. (Pictured: A cracked radiator caused by freezing conditions)

 

 

 

Puffback

Puffback can occur when a boiler doesn’t properly ignite and allows gas or oil vapors to build up within the combustion chamber. When it does eventually ignite, the excess fuel can cause anything from a small amount of smoke to a mess of smoke and soot, which is then released into the area surrounding the boiler. In rare cases, smoke and soot can also travel up the piping along with the heat that continues to circulate throughout the home.

Low Water Cutoff Failure

A common boiler issue is a failure in the low water cutoff switch, which can occur due to either a lack of regular maintenance or age-related wear and tear. The cutoff switch ensures that the boiler does not heat up without an adequate amount of water. If the boiler runs without enough water, it could crack the heat exchanger or the combustion chamber.

While these low water cutoff devices come in both electrical and mechanical varieties, the mechanical switch is more likely to fail prematurely. One common reason for this failure is that the float mechanism sometimes becomes waterlogged, which then sends a false negative indicating that there’s not enough water in the system. This in turn automatically shuts off the system.

Another frequent issue with the mechanical switch is the buildup of Totally Dissolved Solids (TDSs), or mineral deposits that can prevent the float mechanism from freely moving up and down with the corresponding water levels. TDSs can also cause the water to foam, creating a false-positive effect that prevents the float from indicating when it’s time to shut off the valve due to low water levels. This can lead to dry fires, which can come at a greater cost to repair than replacing the boiler. (Pictured: A Mechanical Low Water Cutoff that has a buildup of TDSs and created a false-positive that lead to a dry fire)

High Voltage Surge

Another regular failure with hydronic systems is high voltage surge, since boilers are composed of a significant number of electronic components. You always need a licensed technician with the proper testing equipment to diagnose and fix any high voltage surge damage to a system.

Copper Theft

A significant portion of a hydronic system uses valuable copper piping, so unfortunately theft is common. Depending on how the thieves have removed the boiler and piping, it may be costly for a licensed plumber to replace the stolen pipes. In any situations where exposed wires or other dangerous hazards may be present, adjusters should not touch anything until a licensed technician has surveyed the site. (Pictured: Copper piping cut from a boiler system)

Water Damage

Water damage can be disastrous to a boiler; it’s therefore critical that a full evaluation is performed when a boiler is exposed to water for any period of time. Following a water loss, the boiler’s electrical components, the burner, and even the combustion or heat chamber can have a myriad of damages.

HVACi Takes the Guesswork Out of Claims

Boilers are a crucial part of any home, and they’re made up of many parts that need to be regularly maintained and inspected. In the event of a claim, it’s essential that a trained technician evaluates the entire system and situation prior to any settlement discussions.

The HVACi team has the expert skills to fully investigate and diagnose a boiler’s exact failure to give insurance professionals a detailed report that provides recommendations for repairs and replacements and cost estimates. Submit your boiler assignment to settle your claim quickly and accurately.