Is It a Good Idea To Get an Extended Warranty for HVAC Repair?
- susan4434
- Aug 3, 2021
- 9 min read
There is no doubt; the extended warranty business is everywhere. From small household appliances to cars, consumers get pitched to shell out a few extra dollars to protect their purchases from damage or ruin. Manufacturers, warranty service providers and sales associates make big bucks banking that you will never cash in on the repair or replacement extended warranties offer.
However, extended warranties, service agreements or service contracts have been around a long time because they protect customers from purchasing faulty products from the start or have a dubious track record of repairs to keep them in working condition.
Because HVAC (Heating, Ventilation and Air Conditioning) systems are such a significant purchase for a homeowner, manufacturers, and often the HVAC installers offer warranties on their products and installation services. Like with a car, warranties protecting an HVAC system may be more critical since needed repairs can cost significantly higher than a warranty covering a smaller product.
So, is it a good idea to upgrade the manufacturer’s warranty to an extended warranty covering your HVAC system purchase? This article will break down the things to consider when thinking about purchasing an extended warranty for your HVAC system.
Warranty Basics
Understanding the term length and coverage of a product warranty is essential, but the coverage differs when it applies to a home’s heating and air conditioning system. Understanding how HVAC warranties work is the first step in deciding whether an extended warranty is worth the money.
The first thing to know about HVAC warranties is that the contract covers two different areas; parts and labor. Because the manufacturer is responsible for making the parts, and the HVAC installer is in charge of putting the pieces together in working condition, it makes sense that the warranty offers coverage on two separate things.
Parts Warranty
Most manufacturers offer a basic warranty on their HVAC system to give customers peace of mind to rely on the system components for a long time. The length of coverage on parts can vary from three to ten years. If you do need a part replaced, remember that you will still have to pay the labor costs to install the part. Labor is usually not included in the manufacturer’s warranty.
Besides the length of coverage, it is also essential to understand the type of parts covered.
Some parts of an HVAC system will cost more to repair than others. Check the warranty to see if the contract covers the replacement of the more expensive parts. Additionally, some parts of the system will need to be changed regularly even if the system doesn’t break down.
Since you will have the opportunity to review the warranty before purchasing, it is a good idea to check the parts list with your HVAC installer. The warranty will list the parts and the length of coverage. The HVAC professional will know first-hand which parts are worth spending the money on for extended coverage.
You should also review how long the warranty covers each part. Most manufacturers offer coverage that should cover the expected lifetime of the part.
Some major parts that would be worth an extended warranty if the manufacturer’s warranty does not cover a reasonable amount of time include:
Compressor
Condenser
Heat exchanger
Parts that usually require replacement and would not need an extended warranty include:
Fan motor
Air filters
Thermostat
Labor Warranty
As explained above, a manufacturer usually does not include labor costs on their HVAC warranties. But, a reputable HVAC installer will offer some warranty on the labor for installation or replacement of your heater or air conditioner.
It is not unusual for a system, once installed, to go through a few trouble spots before it is in complete working order, so a labor warranty, even short-term, would cover any of the hiccups that commonly occur after installation.
Look around for a professional HVAC installer who offers a labor warranty. For example, Air Control of Northwest Arkansas supplies a one-year labor warranty on installations, whether it is a new or a replacement unit. Also, try to get some guarantee of service once any repairs are made on the unit.
Some HVAC service providers will offer extended warranties on labor. Be sure to review these contracts before signing to understand and are comfortable with the details. Some of the crucial things to look for when reviewing an extended labor warranty include:
How long is the extended coverage good for?
Who is the contact person or company if you need service?
Who will be working on the system if a repair is needed?
What will happen to the warranty if the HVAC installer you used before goes out of business or changes ownership?
Is the extended warranty automatically renewed or is a service contract required with the extended labor warranty?
How quickly will technicians respond to issues I have with the HVAC system?
Should I Purchase an Extended Warranty?
Suppose you have purchased a new or replacement air conditioner or heater from a reputable manufacturer. In that case, you should have enough protection in the warranty to cover the most common repair costs needed in the first few years of having the system installed. You should also have a labor warranty from a professional HVAC installer.
The major things to consider when thinking about purchasing an extended part or labor warranty include:
Does the manufacturer’s warranty cover a reasonable amount of parts and time?
Do you live in an area with high labor costs?
Is the price of the extended warranty affordable?
Will you be able to maintain the system regularly?
Could you cover the cost of repairs by using tools already have?
1. Does the manufacturer’s warranty cover a reasonable amount of parts and time?
A typical HVAC system should last 15 years or longer if the system is maintained regularly. In addition, most reputable HVAC manufacturers offer warranties that cover most parts for a reasonable amount of time and include the cost with the purchase. In other words, you shouldn’t have to pay additional money upfront for a warranty that comes with the purchase of a new system.
Remember, the manufacturer’s warranty will not cover the labor costs. Please make sure you have contracted an HVAC technician that offers a labor warranty to guarantee their workmanship. The term does not have to be extensive but should cover the time to get through the extreme hot or cold weather months; to ensure your system is working correctly under stress.
2. Do you live in an area with high labor costs?
It is good to consider labor costs in your area when thinking about purchasing an extended labor warranty. If you live in a place where the cost of repairing anything is expensive, first consider purchasing a higher quality system, so you are less likely to run into repairs. Next, look for an extended labor warranty that covers a significant amount of time. Consider that if you properly maintain and regularly service your system, you may not need any repairs for some time.
Again, look for a company that will be there for the long term. Since most HVAC systems last for more than ten years, there is no guarantee the HVAC installer you used at installation will be around for servicing the unit when you need it. So, be sure to ask who the installer will be if the HVAC professional goes out of business or sells to another company.
3. Is the price of the extended warranty affordable?
Look at the price of the extended warranty. Don’t buy a warranty that costs more than 20 percent of the cost of your air conditioner. Be sure to understand the terms of payment. Small, incremental payment installations can add up to more than the warranty is worth.
Also, look for warranties where the repair cost is already taken care of before the installation or the installer takes care of the payment from the warranty service provider. You do not want to be the person tracking down reimbursement after you paid for your repairs.
Beware of sales associates or HVAC technicians that push too hard to sell an extended warranty. A strong sales push may mean that the system you are considering purchasing is not good to begin with. It could also signal that the sales associates get paid for selling extended warranties. They also are aware that most people will not use enough of the warranty to cover the purchase cost.
4. Will you be able to maintain the system regularly?
Are you a DIYer who does a good job keeping your home in good shape? If so, your HVAC system may stay in good condition longer, and you may not need significant repairs before it is time to replace it.
Regularly maintaining, cleaning and inspecting your HVAC system is key. Change air filters regularly, clean the outside condenser unit when needed and schedule a yearly check-up by a qualified HVAC technician to keep your HVAC system running properly for a long time. For more information on maintaining your HVAC system, see our blog post: hvac maintenance checklist.
Keeping up with maintenance will reduce the need for repairs and the need to pay for an extended warranty.
5. Could you cover the cost of repairs by using tools you already have?
It is common practice that warranties do not cover damage caused by storms, fires, or “acts of god.” However, your homeowner’s insurance policy or particular natural disaster insurance such as flood or earthquake will.
There is also a chance that your credit card may offer extended coverage on certain purchases.
Tips for Keeping up With a Warranty
Whether you have purchased an extended warranty for your HVAC system or not, it makes sure you have a handle on where your warranty is and how to use it if you ever run into an unexpected and sudden repair situation.
Here are a few tips on how to make sure you are ready to use your warranty when you need it:
1. Register your information on time.
When moving into a new home, most homeowners do not have the time to correctly fill out and file all of the warranties for the HVAC system and other newly installed items in the home. But, if a warranty does not get registered with the manufacturer, the warranty does not go into effect.
Thankfully, most builders or HVAC installers will complete the registration for you. So, whether you are contracting the building yourself, you have a builder or you purchased the home from another person, find out what company was in charge of the installation.
Contact the HVAC installer to make sure they completed and filed out the warranty with the manufacturer. If you are not the original owner, inquire about the maintenance completed on the system before buying the home and how much coverage remains on the warranty.
2. Hire a professional technician for installation and repairs.
Make sure you know if the warranty stipulates who you can hire to complete any repair work. For example, manufacturers may not approve of a service not conducted by an approved HVAC company. The HVAC technician will also tell you whether or not the replacement parts they are using are approved and covered as part of the warranty.
Before calling the HVAC service provider, make sure it is an issue you cannot fix yourself. Reducing repair costs is the goal, so make sure it is an issue you need professional help with before calling a technician. To learn more about some common problems with air conditioners, see our article: air conditioner not cooling
3. Maintain your HVAC system with scheduled professional maintenance and provide proof of maintenance performed.
Some warranties and extended warranties may require yearly inspections and cleaning services of your HVAC system. They may also require proof of who conducted any repair or maintenance before they approve of repair work.
Yearly and regular maintenance will prevent most needed repairs, and you may avoid having to purchase an additional warranty all together if you keep up with maintaining the system.
Summary
You may not need an extended warranty for an HVAC system if you have purchased a high-quality HVAC system, it was installed by a professional HVAC technician and you keep up with maintaining the system. An HVAC system that is regularly maintained may need occasional repairs, but not significant repairs before it is ready for replacement.
However, if you decide to purchase an extended warranty, know that warranties for HVAC systems come in two types; one for parts and another for labor. A manufacturer’s warranty will cover parts, and the HVAC installers or repair technicians offer warranties for the labor costs.
Most warranties that come with purchasing an HVAC system from the manufacturer will cover any parts needed for a significant amount of time. However, if you are worried about labor costs, you may want to speak with a local provider to discuss the labor warranties they offer.
Be cautious of anyone selling warranties that you may not need or warranties that are too expensive. Warranties are a profitable business for most companies, but no one should feel pressured to buy something they do not need. In the end, most warranties will cover parts of an HVAC lifespan of about 10 to 15 years. After that time, it might be cheaper to purchase a new, upgraded system.
For more information on warranties, contact Air Control. Air Control of Northwest Arkansas supplies a one-year labor warranty on installations, whether it is a new or a replacement unit. Air Control also provides a 30-day warranty on labor and parts for any service calls.
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