diff --git a/homeassistant/components/waterfurnace.py b/homeassistant/components/waterfurnace.py
index 346bdcdfb97..a587285e0ba 100644
--- a/homeassistant/components/waterfurnace.py
+++ b/homeassistant/components/waterfurnace.py
@@ -18,7 +18,7 @@ from homeassistant.core import callback
 from homeassistant.helpers import config_validation as cv
 from homeassistant.helpers import discovery
 
-REQUIREMENTS = ["waterfurnace==0.3.0"]
+REQUIREMENTS = ["waterfurnace==0.4.0"]
 
 _LOGGER = logging.getLogger(__name__)
 
@@ -83,6 +83,8 @@ class WaterFurnaceData(threading.Thread):
 
     def run(self):
         """Thread run loop."""
+        import waterfurnace.waterfurnace as wf
+
         @callback
         def register():
             """Connect to hass for shutdown."""
@@ -110,8 +112,11 @@ class WaterFurnaceData(threading.Thread):
             try:
                 self.data = self.client.read()
 
-            except ConnectionError:
-                # attempt to log back in if there was a session expiration.
+            except wf.WFException:
+                # WFExceptions are things the WF library understands
+                # that pretty much can all be solved by logging in and
+                # back out again.
+                _LOGGER.exception("Failed to read data, attempting to recover")
                 try:
                     self.client.login()
                 except Exception:  # pylint: disable=broad-except
@@ -127,10 +132,6 @@ class WaterFurnaceData(threading.Thread):
                         "Lost our connection to websocket, trying again")
                     time.sleep(SCAN_INTERVAL.seconds)
 
-            except Exception:  # pylint: disable=broad-except
-                _LOGGER.exception("Error updating waterfurnace data.")
-                time.sleep(SCAN_INTERVAL.seconds)
-
             else:
                 self.hass.helpers.dispatcher.dispatcher_send(UPDATE_TOPIC)
                 time.sleep(SCAN_INTERVAL.seconds)
diff --git a/requirements_all.txt b/requirements_all.txt
index cd718810f44..85ca4e89bd5 100644
--- a/requirements_all.txt
+++ b/requirements_all.txt
@@ -1223,7 +1223,7 @@ waqiasync==1.0.0
 warrant==0.6.1
 
 # homeassistant.components.waterfurnace
-waterfurnace==0.3.0
+waterfurnace==0.4.0
 
 # homeassistant.components.media_player.gpmdp
 websocket-client==0.37.0