Does a Wood Burning Stove Affect Insurance Premiums?

Over the past 40 years, I have used wood burning stoves to heat my home (several homes, several wood burners) and have researched this as we moved or changed insurance carriers. This is what I have found.

Does a wood burning stove affect insurance premiums? Yes, it can and will typically run from 0% to5% depending on the company. Fortunately, there are several steps you can take to reduce the amount of increase along with reducing the risk to your home.

The range is based on several factors. Most importantly the insurance carrier, your home style, your location, and the answers a list of questions they generally will ask. I have highlighted most of these questions in the remainder of the article.

Why do Insurance Companies Care?

Wood burning stoves, while being a great source of inexpensive heat, can be a cause of fires in homes. Since wood stoves are a possible fire hazard, insurance companies tend to take a closer look at a home with a solid fuel burning heat source.

The second most common cause for home fires (15%) according to an NFPA report from 2012-2016 was home heating equipment. This includes gas and propane furnaces, space heaters (which are a more dangerous device) and solid burning fuel (wood and pellet burning) devices.

The main cause of home heating fires was due to improperly cleaned chimneys.

By the way, the leading cause of home fires was and still is cooking accidents.

Here is what Insurance Providers are Looking for.

  • Has your wood burning stove been installed by a professional? I found that most insurance companies ask this question but do not require proof of installation.
  • Is your stove installed on a stone or brick base? This is just physics as the stove will get hot, and sparks and coals will be expelled from the open door onto the floor in front.
  • Do you have a heat resistant surface on the wall behind the wood burning stove? Again physics due to the heat generated by a stove.
  • Is the stove the correct distance from walls, floor, and ceiling?

First Steps

I am assuming you have already looked at wood burning stoves and have a pretty good idea of the type and size you would like to install.

Your next step should be to call your existing insurance provider. Insurance providers will typically ask the questions listed above. They may also inquire specifically regarding the wood stove or pellet burner you have or intend to install. Most will want to do a worksheet before they provide information or any amount they intend to adjust the premium.

How to Work With Your Insurance Provider and Reduce your Premium

An insurance agent wants your business. They will not want to scare you away with intimidating questions and reams of paperwork. They should, on the other hand, give you a straight answer. An agent should not mislead you into a false sense of security with their willingness to provide coverage for an appliance that generally, will make a home more expensive to insure.

Arm yourself with the facts. Know the brand and model of the stove you intend to install. Have the type and rating of the chimney that will be installed.

Chimneys

Since chimneys are the primary location of fires in solid fuel burning homes, I want to spend a few moments on chimney types. There are three types of chimneys used for wood burning stoves and fireplaces. They are:

  • Masonry
  • Triple Wall
  • Double Wall

Masonry or brick and mortar are what you will typically think of when you think “chimney”. They look great and work well but require the most maintenance and attention.

A masonry chimney needs to be cleaned and inspected regularly. The flue liner can crack and leak under stress of extreme heat or if water (freezing and thawing) damages it. I recommend a professional cleaning and inspection annually at a minimum.

A triple wall chimney by name sounds like the best type of chimney since it has 3 walls. They do work well but do not provide as much protection from heat as the double wall chimney. The triple wall chimney uses the air space in the middle as the insulation from the heat going up the chimney.

The best type of chimney for wood burning stoves is the double wall chimney. There are two walls of stainless steel and high-temperature insulation in between. Typically a double wall chimney has the highest heat rating, up to 2400 degrees F.

The high-temperature insulation will not only protect the walls of a home on the outside of the chimney but will also provide insulation to the inner wall of the chimney from the cold outside air. This helps to prevent creosote from building up on the inner wall of the chimney.

Creosote

Creosote buildup is what makes wood burning stoves a fire hazard and insurance adjusters shudder. There are several causes for creosote buildup:

  1. Wood that is not dry enough. Wood should be cured and dry before burning. Moisture in the wood will reduce stove heat and cause particles to build up in the stove and in the chimney.
  2. Reduced air flow into the wood burner. Wood burners are efficient due to the low amount of air drawn out the home to feed the fire. At the same time, this can cause creosote to build in the chimney as cooler air (or not hot as it should be air) is rising and leaving the chimney.
  3. The inside of the chimney is too cold. This also causes less air to rise and exit the chimney causing particles to build on the inside of the chimney.

Safety is Always First

A local wood stove sales and installation company should sell and install a complete system from the floor and wall protection to the chimney cap. This will assure your safe burning in any situation from a cool fall day to a driving winter storm.

A wood burning stove (or Solid Fuel Burning Device as described by the NFPA or National Fire Protection Association) can be installed by a handy homeowner. If this is your intention, then I would recommend extensive research on the type of stove, location in the home, and especially the type and placement of the chimney.

These items are discussed thoroughly in the 2019 NFPA 211 Standard. A local wood stove sales and installation company should be well acquainted with this standard.

A free copy of the NFPA 211 standard is available to be viewed by anyone. You can purchase the standard for a small fee. Older versions of the standard are available for immediate download.

Some Additional Steps for Safety

To keep your home safe from a fire that could escape the firebox or chimney, I would recommend the following precautions: Keep the firebox clean. Empty the ashes on a regular basis and use the proper safety equipment: heavy gloves (I recommend welders gloves), safety glasses, and a steel fire bucket.

Clean the chimney regularly. I recommend monthly when burning 24 hours a day 7 days a week as a primary heat source.

Inspect the stove and chimney for any irregularities. A steel stove and chimney that reach high temperatures and then cool off can change (expand and contract) and should be evaluated for any unexpected issues.

Monitor your wood burning stove temperature. A high-temperature device of some kind is a must. For the past 40 years, every wood stove I have ever seen has had a small magnetic thermometer placed on its front to know the current temperature. Today you can monitor your stove from your smartphone with This New Device.

Related Questions

So if my insurance premium may be higher, is a wood burning stove still worth it? Taking all things into consideration; the cost of the stove, cost of the wood, insurance increase, and the cost of conventional heat (gas, propane, electric, etc.), typically the answer is yes.

Everyone needs to do their own homework on this, and I will have several comprehensive articles in the near future covering each type of conventional heat source vs. types of wood stoves. Each variable including the cost of gas, propane, and your source of wood will affect the outcome.

You may also wonder how a wood burning stove affects the environment. Manufacturers of today’s wood burning stoves are required to build the stove to meet EPA standards, so they are not only efficient but are safe on the environment.

A final consideration is the type of heat that you like to have in your home. The heat from a wood burning stove is like no other and not only warms a home with a long lasting heat, but the fire through the glass doors is pleasant to watch.

Why do you think Netflix, Amazon Prime and several of the other streaming services have added a fireplace channel to their lineup! Everyone loves to watch a controlled fire burn!