Home repair warranties. what can you tell me.

[bclover]

Hello all,
9 years ago I replaced my a/c and heating unit. Got a brand new carrier system which has been great.
I also annually got the "maintenance package" offered by the company.

I've watch the price of the thing escalate from 350 bucks a year up to 1120.00 for this year. Not only that, every year they knock off a little bit more. for example up until this year I use to get a tune up twice a year all inclusive, this years contract says I will only get the tune up once a year and evidently my filters are "special order" filters so I'll get a 90 charge for the filter.



I'm considering dropping the service plan but my concern is that the unit is getting up there in age (Not sure how long a/c heating units should last) and of course that's when things start to break.

any advice

 

[Walt34]

Last I heard the average life of a central A/C unit was 10-12 years so yours is getting "up there" hence the increasing charges. You're about three hours east of me so that number is probably about the same.

Keeping the service plan is now a crapshoot. Depends on how lucky you think you'll be.

 

[REWahoo]

My advice is to avoid those "maintenance agreements" entirely. I've never found them to be anything but a profit center for the company selling them. Far better to save the $ to pay for any repairs and help fund a new system when it inevitably needs replacing.

 

[njhowie]

It's essentially an insurance policy and the seller is acting as an insurance company. So, there are a couple of components which come into play as they set the price they offer you. First, is going to be their claims experience most recently. If an insurance company is experiencing higher claims, they are going to need to raise premiums as they need to be able to guarantee claims paying ability to all purchasers. Second, what is the repair/replacement cost? Obviously with inflation running high, new units will be costing more. Additionally, labor rates are also going up. So, whether a failed unit can be repaired or needs to be completely replaced, each will cost more than in the past.

Is it worth it? Only you can decide. How much would a new unit cost today? How much would you pay for a service call + labor + repair if necessary?

If it were me - I'd drop the policy, and set aside the $1100/year going forward for when it eventually needs to be repaired or replaced.

 

[freedomatlast]

That has to be very profitable easy money for the HVAC company.

 

[RobbieB]

I don't buy home warranties, car warranties or extended "anything" warranties.

If anything I buy doesn't give good service I'll never buy another of that brand. Otherwise replace it or repair it on my dime.

 

[aja8888]

I don't prepay for repairs or maintenance, if needed. And with most home heating and A/C systems, general maintenance is pretty simple (filters, make sure condensate drain lines stay open, etc).

 

[MC Rider]

this years contract says I will only get the tune up once a year and evidently my filters are "special order" filters so I'll get a 90 charge for the filter.


I suspect the only thing "special" is the upcharge. Search and see how much your filter costs, then see how hard is it to replace. I'd bet the answer is, not very. Cleaning the condensor coils, get the hose, you don't need to pay anything but your water bill.

 

[RobbieB]

Yeah.

Go read your filter size off the filter and google it. I buy 6 packs of 20" x 25" x 4" filters free shipping for $15 bucks each.

 

[SecondCor521]

My AC system is 18 years old and working just fine.

It did have the startup capacitor go bad once. I didn't understand about those and I had three young kids in my house, so I paid about $350 to have that replaced (maybe an $8 capacitor).

I replace my furnace filter every 90 days (kids have allergies), and it's less than $50 per filter for a MERV 11 4x16x25. I get them from a local filter store and replace them myself. Takes all of 3 minutes.

I think a new AC system would run about $8K to $10K for my house, so annualized that's about $500 a year. I'd never pay the prices quoted by the OP for an insurance policy of that type.

 

[jollystomper]

I did get a "maintenance agreement" for my heat pump. Ours is 9 years old. The cost has been $200/year. For that I get a spring/fall cleaning/tuneup (it takes about 2 hours) and a discount on service calls and services (Less than what it was for its first 5 years but still pretty good), including normal charge during their overtime periods (like an emergency call on a Sunday). When we had compressor issues in 2018, post-warranty, it saved us about $400. When we had our air ducts and vents cleaned last year it saved us $200. For for the price I pay and the services it is worth it.

I buy my own filters (20x24x1), in April a 6 pack cost $39 (I noticed it is now up to $44, darn that inflation). That will carry me for a year. No need for them to change it, but if the maintenance day falls close enough to the date for the filter change, they will offer to change it for no extra charge.

At $1120 a year I would rather put that towards a future a/c and heating unit.

 

[Sunset]

OP - You are getting hosed if that warranty only covers the A/C and furnace.

I don't have any warranties for my home as I can fix most things myself or will put up with something broke while I find a low cost way to get it fixed.

For my rental I pay $400 /yr for an A/C and furnace warranty.. I largely consider it a waste , but the tenants are far away and if the a/C or furnace does not work they need it fixed. A service call is $150 so the $400 does take care of that and my stress. They don't even call me, I just see the report.
It has also been used on the call that the service guy said the coil was shot, so replacement was free on that $1,200 -> $1,600 job But the slimy guy after saying the coil replacement would be free, said if I didn't want to wait I could get $1,000 off a new A/C. I told him to go ahead and use the warranty !
Later I looked and they offered a Spring Sale to everyone of $1,000 off

My A/C here in Chicago has lasted 20 yrs with a $12 capacitor replacement. The furnace is also 20 yrs, but I replaced the motor ~8 years ago.

 

[ncbill]

I had to keep a $250/year maintenance contract for the 10 years of parts & labor warranty I had on my system purchased in 2009.

Dropped it as soon as my warranty expired.

Furnace filters are not that expensive.

Cleaned the gas furnace's flame sensor last year when it wouldn't stay lit (most common reason).

Rubbed gently with steel wool to remove over a decade's worth of carbon buildup, then rinsed with rubbing alcohol.

 

[lauradrops]

My advice is to avoid those "maintenance agreements" entirely. I've never found them to be anything but a profit center for the company selling them. Far better to save the $ to pay for any repairs and help fund a new system when it inevitably needs replacing.

Agree with this 100%!!!

 

[HF63]

Check Supplyhouse.com for the filter size that you need.

 

[isisdave]

I have a deal with my AC contractor for the commercial heat pump, which is on the roof of our building. For $195 a year they come and clean it and change the filters, but also test everything. That gave me about two years' warning that the compressor was on its way out. But the best part is that it gets me put at the top of the list for repairs. The last time something went wrong it was "the soonest we can come is (12 days out).. oh wait, you're on the Silver Maintenance Plan, we'll send someone today even if it's after hours."

No discount though, I don't think. How could you even tell?

 

[Ian S]

I'm the odd man out here but when we bought our home three years ago it came with a home warranty. The two heat pumps were ancient but passed inspection. We moved in May, first heat pump died in June, second a few weeks later. Both outside units had to be replaced so we got good use out of the warranty.

After the first year, we decided to renew the home warranty since the house was built in 1991. During that year, the old garage door opener had a gear shaft break so the warranty covered the cost of replacing the entire opener. Love the new one with its connection to the internet! What's next? I don't know but our appliance ages range from 5 to about 20 years in age. When it came time to renew the home warranty, they offered a discount that brought the cost down to $600 for the year. So I guess it's OMY for the home warranty! Just had a scare with the ice maker in the fridge but still seems to be working. Fingers crossed but the part alone is $200.

We'll reevaluate the home warranty next year but so far, we've done not too badly.

 

[Badger]

Just a thought about filter replacement... We have a heat pump in our Florida beach home that runs most of the year. We also have 3 indoor cats and tile and hardwood floors. In years past the filters would need replacing at least every 4-6 months due to lots of trapped dust and cat hair. Since we have used portable air purifiers for a few years now the heat pump filters look almost new after 6 months. Yes, we keep the pre-filters on the purifiers clean but the advantages are there is very little dust in the house, the house stays cleaner, less allergy reactions to pollen, and the pre-filters are much easier to keep clean.

Cheers!

 

[Music Lover]

Hello all,
9 years ago I replaced my a/c and heating unit. Got a brand new carrier system which has been great.
I also annually got the "maintenance package" offered by the company.

I've watch the price of the thing escalate from 350 bucks a year up to 1120.00 for this year. Not only that, every year they knock off a little bit more. for example up until this year I use to get a tune up twice a year all inclusive, this years contract says I will only get the tune up once a year and evidently my filters are "special order" filters so I'll get a 90 charge for the filter.



I'm considering dropping the service plan but my concern is that the unit is getting up there in age (Not sure how long a/c heating units should last) and of course that's when things start to break.

any advice

I don't think furnaces required a tune up, just like today's cars no longer need a tune up. A circuit board controls everything and nothing has to be adjusted like in decades past.

My furnace is 15 years old and all I've ever done is change the filters. I also hose down the AC compressor once a year to clean the fins. It's the same unit that was here when I moved in 25 years ago.

 

[jazz4cash]

Dump the maintenance plan. A pre-season tune-up costs $90-120 in my area, so thats $180-$240 for the year. Filters are generally cheap to buy online or anywhere and I’d suggest changing every 90 days. We use a home warranty that costs $300/yr with $75 deductible bur I’m pretty sure they are gonna dump us cause we file too many claims. Call your local utility to see if they have any partner deals. We just got a free inspection/ tune-up, filter change. It’s mostly an inspection but they did clean the condenser coil and said our 22 yr old builder grade unit is “ok”.

Edit: Can the young lad help Mom change those filters?

 

[Midpack]

My advice is to avoid those "maintenance agreements" entirely. I've never found them to be anything but a profit center for the company selling them. Far better to save the $ to pay for any repairs and help fund a new system when it inevitably needs replacing.

+1. Maintenance agreements on any product are (outrageously) profitable for the providers, why else would they offer them so actively? The policyholders that benefit are the exceptions, it’s a losing proposition for most. Risk pooling can make a lot of sense where 6-7 figure liabilities are possible (e.g. home, auto/medical). But not when it’s a product that you should be able to afford to buy outright, like HVAC, appliances, consumer electronics, etc. that you KNOW will have to be replaced periodically - this should be in your budget IMO. It’s a cost you WILL pay one way or another (maintenance agreements won’t save you money in the long run), and how much is predictable, the only unknown is exactly when…though you should have some idea the frequency. Easy enough to find online for anything these days.

 

[pb4uski]

+1. When I was working I had a client that wrote home warranties and vehicle extended warranties and they were obscenely profitable.