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About Home HVAC Extended Warranty
Do not underestimate importance of Extended Warranty when getting a new furnace or an air conditioner installation. New high efficient home HVAC equipment comes with many more parts to break down than an furnace or an air conditioner.
Ideally, if you are staying in the house, try to get 10 years parts and labour warranties for all of your home HVAC.
Ideally, if you are staying in the house, try to get 10 years parts and labour warranties for all of your home HVAC.
Hardware Warranty
Whether it is a furnace or an air conditioner, the hardware warranty usually has two parts in it:
♦ The main element, like heat exchanger or compressor. It usually gets the longest warranty.You have to draw the line somewhere. You can discount warranty beyond 15-20 years. In that period of time you will move to another place, or equipment will become so obsolete that you would want to replace it anyway.
♦ The rest of the hardware is called parts. Manufacturers offer anywhere between 1 and 10 years parts warranty. If manufacturer's warranty
is not sufficient, you can get Extended Warranty.
Have a clear understanding of who underwrites Extended Warranty: manufacturer, contractor or third party. More on underwriters below.
♦ The main element, like heat exchanger or compressor. It usually gets the longest warranty.You have to draw the line somewhere. You can discount warranty beyond 15-20 years. In that period of time you will move to another place, or equipment will become so obsolete that you would want to replace it anyway.
♦ The rest of the hardware is called parts. Manufacturers offer anywhere between 1 and 10 years parts warranty. If manufacturer's warranty
is not sufficient, you can get Extended Warranty.
Have a clear understanding of who underwrites Extended Warranty: manufacturer, contractor or third party. More on underwriters below.
Labour Warranty
Labour part of the Warranty is very important as labour charges by contractors can easily exceed parts cost.
Manufacturers usually do not offer free Labour Warranty. The installing contractor is the one who provides for you labour warranty. Most of the time it is one year warranty. If you are getting Extended Labour Warranty, again have a clear understanding of who underwrites Extended Warranty: manufacturer, contractor or third party. More on underwriters below.
Manufacturers usually do not offer free Labour Warranty. The installing contractor is the one who provides for you labour warranty. Most of the time it is one year warranty. If you are getting Extended Labour Warranty, again have a clear understanding of who underwrites Extended Warranty: manufacturer, contractor or third party. More on underwriters below.
Underwriter
This is the most crucial part in getting Extended Warranty. Make sure that you clearly understand who pays the repair bill should the need be.
♦ Manufacturer.
This is by far the best extended warranty money can buy. The manufacturer issues a certificate of prepaid extended warranty on your name. You are free to choose the installing contractor as you service
♦ Manufacturer.
This is by far the best extended warranty money can buy. The manufacturer issues a certificate of prepaid extended warranty on your name. You are free to choose the installing contractor as you service
needs. You are free to choose ANY contractor.
In this case the replacement part and payment for the labour are guaranteed and come from the same source - the manufacturer. Local authorized dealers for the manufacturer know how to handle this warranty.
Even if your installing dealer is out of business, you should not have difficulties finding another dealer willing to get your business.
Manufaturers' extended warranty is an asset for both customers and service contractors.
♦ Third party insurers.
They all have their own procedures. The service contractor need to get authorization before starting the job. You may need to get the second opinion while your system is broken. Paperwork maybe unfamiliar to the contractor, and it takes months to get money back. You may have problem finding a service contractor especially in busy times of the year.
Customers may still consider third party extended warranty as having some value, but it hardly applies to service contractors.
♦ Installing Dealer
Well, in theory this type of extended warranty could be just as good as the Factory warranty.
This is how it should work. You prepay your installer 10 years of extended labour warranty.
Then start hoping that:
1. The installing company does not use up your money right away. Instead he puts them on escrow or trust account and uses money only to pay itself for the cost of warranty repairs.
2. The installing contractor does not go out of business before your warranty expires.
In this case the replacement part and payment for the labour are guaranteed and come from the same source - the manufacturer. Local authorized dealers for the manufacturer know how to handle this warranty.
Even if your installing dealer is out of business, you should not have difficulties finding another dealer willing to get your business.
Manufaturers' extended warranty is an asset for both customers and service contractors.
♦ Third party insurers.
They all have their own procedures. The service contractor need to get authorization before starting the job. You may need to get the second opinion while your system is broken. Paperwork maybe unfamiliar to the contractor, and it takes months to get money back. You may have problem finding a service contractor especially in busy times of the year.
Customers may still consider third party extended warranty as having some value, but it hardly applies to service contractors.
♦ Installing Dealer
Well, in theory this type of extended warranty could be just as good as the Factory warranty.
This is how it should work. You prepay your installer 10 years of extended labour warranty.
Then start hoping that:
1. The installing company does not use up your money right away. Instead he puts them on escrow or trust account and uses money only to pay itself for the cost of warranty repairs.
2. The installing contractor does not go out of business before your warranty expires.
♦ A sample of American Standard Extended Warranty Agreement snapshot
♦ FYI American Standard Extended Warranty site page
♦ A sample of Goodman Extended Warranty Agreement snapshot
♦ Goodman Extended Warranty site page
3. If the installing company does go out of business, it passes enough money to another equally honest contractor to cover your future repairs.
4. The repair trust account will never run out of money no matter what.
5. The installing company will NEVER use fine print against you. For example a clause about yearly mandatory check up at a price over $100 per visit. If you do not call them every year for a regular checkup, would they honour warranty for you?
If you do not feel comfortable about at least one point, you best bet is Factory supported warranty.
4. The repair trust account will never run out of money no matter what.
5. The installing company will NEVER use fine print against you. For example a clause about yearly mandatory check up at a price over $100 per visit. If you do not call them every year for a regular checkup, would they honour warranty for you?
If you do not feel comfortable about at least one point, you best bet is Factory supported warranty.
Conclusion
1. Properly arranged Extended Warranty supposed to be a separate product from your furnace or air conditioner.
2. You are the owner of the Warranty, not the installing contractor even if he bought the Warranty for you. The installing contractor does not have to be your servicing contractor.
3. Your interests are served best by Extended Factory Warranties purchased from the manufacturer.
2. You are the owner of the Warranty, not the installing contractor even if he bought the Warranty for you. The installing contractor does not have to be your servicing contractor.
3. Your interests are served best by Extended Factory Warranties purchased from the manufacturer.
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