Do Insurance Companies Cover Wood Stoves?
Most home insurance companies cover wood stoves and pellet stoves.
However, having either a wood stove or a pellet stove in your home could raise your rates. State Farm increases rates by an average of $38 per year, while other insurance companies may raise your rate by as much as $446 per year.
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Will my home insurance company cover my wood stove?
Most major home insurance companies will cover your home after you install a wood stove or pellet stove or move into a home that already has one. And if anything happens to the stove after it's installed, your insurance company may cover it, too.
Every policy is different, though. Talk with your insurance agent to see if your policy will cover a wood stove.
What are the insurance requirements for wood stoves?
Most insurance companies only cover wood stoves if they meet these requirements:
- Be installed by a professional: A licensed professional must install the wood stove on your property.
- Pass an inspection: Your wood stove may also need to pass an inspection with a licensed inspector. This proves that your wood stove meets local fire codes and safety standards.
- Not be your home's main source of heat: Some insurance companies won't cover your home if your wood stove is the primary heat source. You may need to show you have another source of heat, like a working furnace or boiler, on the property.
Your insurance agent can explain any requirements you'll need to meet to get or keep your coverage.
Will installing a wood stove raise your rates?
Installing a wood stove will usually raise your home insurance premium.
Wood stoves increase the risk of house fires and damage, so insurance companies tend to charge more for homes with wood stoves to offset that risk.
The amount you'll pay will depend on your insurance company. You could also pay more if you rely on your wood stove to heat your home without any other heat source.
That said, your rate shouldn't be too much higher than what you're already paying.
How much does a wood stove increase home insurance rates?
Installing a wood stove increases rates by an average of $278 per year.
If your insurance company raises your rates more than you'd like, switching insurance companies could help you save money.
Will installing a pellet stove raise your insurance rates?
Installing a pellet stove usually raises your home insurance rate.
However, since pellet stoves are less risky than wood stoves, they raise your rates far less. They burn compressed logs and sawdust pellets that burn cleaner than wood, and as a result, are less likely to lead to chimney and house fires.
Frequently asked questions
Is it better to have a wood stove or a pellet stove for your insurance?
Pellet stoves are usually cheaper to insure than wood stoves. However, pellets or compressed logs can cost more than wood, making it could be more expensive to use a pellet stove than a wood stove.
Why do wood stoves cost more to insure?
Wood stoves often cost more to insure because they increase your risk of house fires, which means you're more likely to file a claim for damage with your insurance company.
What happens if I don't tell my insurance company about my wood stove?
If you don't tell your insurance company about your wood stove, it could cancel your coverage if it finds out, not let you renew the following year or deny your claim after a house fire. It's always best to tell your insurance company about your wood stove or pellet stove, ideally as soon as you plan on installing one. The sooner your insurance company knows, the sooner it can tell you about any requirements you need to meet to keep your coverage.
Methodology
To find the average cost of adding a wood stove to your home, ValuePenguin got quotes from the largest insurance companies in Illinois across all ZIP codes in the state.
Quotes are for a 45-year-old married man with no history of home insurance claims and a good credit score. Rates include the following coverage limits:
- Dwelling coverage: $350,000
- Personal liability coverage: $100,000
- Medical payments: $5,000
- Deductible: $1,000
ValuePenguin used Quadrant Information Services to get the quotes. Quadrant gets rates from publicly available insurance company filings. Keep in mind that prices vary based on a number of underlying factors and these rates are for comparative purposes only. Your quotes will likely be different.
Sarah Jones
Writer
Sarah Jones is a Staff Writer focused on helping readers understand complex insurance topics. She joined Value Penguin in 2025 after working for over a decade in marketing, where she specialized in writing for financial services firms, law firms and real estate companies. She's written for leading mortgage lenders, online banks, virtual payment services and insurance companies.
When she isn't writing, she enjoys hiking the mountains of northern New Mexico with her dog and her family and trying every local coffee shop she can find.
How insurance helped Sarah
Sarah became passionate about car insurance after a particularly big sneeze caused her to back her car into a stone wall. In her defense, the wall came out of nowhere.
Expertise
- Car insurance
- Home insurance
- Renters insurance
Education
- BA, English Language and Literature, Smith College
Editorial Note: The content of this article is based on the author's opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.
