It is a covered loss in most standard homeowners policies, usually adjusted as an equipment malfunction loss rather than a fire, and the distinction matters less than the documentation. The cleanup is duct and surface work, the oily soot has to be removed with methods that do not set it, and the furnace itself needs a heating contractor's repair in the same episode, because a cleaned house behind an unrepaired furnace is a sequel scheduled. Get both scopes in writing and file them together.
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