There should not be any exposed framing in the ceiling or partition walls that are in close proximity to the heating plant – in this case, a furnace. As a safety precaution, exposed overheat floor joists or wall studs that are near the furnace must be covered with Type X fire-code plasterboard.
In some cases, homeowners install wood paneling around the furnace to make the area more attractive. This is a potential fire hazard, especially the portion of the wall around the chimney. If there is wood paneling near the furnace, consider covering it with fire-coated plasterboard. There should be a minimum two-inch clearance between the chimney and any wood framing or paneling. In addition, make sure nothing combustible is stored around the furnace.
Many heating systems have prefabricated chimneys that extend from the furnace room all the way up through the interior portion of the structure, terminating above the roof. If you see this type of chimney, check the joint between the chimney and the ceiling of the furnace room. If there are large openings, they are a potential fire hazard and should be covered with a noncombustible material such as sheet metal. If not properly blocked, the open area around the chimney can act as a flue and should a fire occur in the furnace room, it will draw the flames up to the attic.
During the furnace room inspection, check for asbestos insulation around the furnace and heating pipes. The door to the furnace might be a louvered door, but depending on the local fire code requirements, it may or may not be permitted between the living space and the furnace room. If the code requires that the door be fire rated, check the adequacy of the ventilation as well.