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A non-functioning heating system in a home can pose significant risks, particularly in colder climates where temperatures can drop drastically. The main concern is the potential for frozen pipes, which can lead to significant plumbing issues, including leaks and costly repairs when the pipes burst. Additionally, if the home is not adequately heated, it can create unsafe living conditions for the occupants, as exposure to extreme cold can result in health issues such as hypothermia.

While increased energy bills might occur if a system is working inefficiently, the more pressing issue in the context of a non-functional heating system is the physical safety of the home’s occupants. Higher carbon monoxide levels would typically be a concern with malfunctioning combustion appliances, but a heating system that is completely non-operational isn't directly related to carbon monoxide exposure. Damage to the electrical system may occur under certain circumstances, but it isn’t the primary risk associated with the failure of the heating system. Thus, the most valid concern remains the risk of frozen pipes and unsafe living conditions without adequate heating.