HVAC Extended Labor Warranty

[missmollee]

Any thoughts on the value of purchasing a five year extended Labor warranty for my three year old house? Parts warranty is still good for another seven years. Labor warranty is good for two more years. Cost = $1k for five more years on the labor warranty. Thanks. Woodstock John

[retiredguy123]

I wouldn't do it. Paying money for an extended warranty almost never makes sense. Also, consider that, if your system fails, you are locked in to one contractor who may not be available to repair your system immediately. The Villages has numerous HVAC companies who can repair your unit, usually the same day. If your air conditioner stops working in July, you will want it repaired immediately.

[LuvtheVillages]

I don't think extended warranties are ever a good idea. Put your $1000 in a savings account and if you need to pay for labor, you can tap it then.

[Stu from NYC]

Insurance should be for things that would devastate you financially such as death or fire.

[CarlR33]

These insurance companies are not in business to loose money.

[BrianL99]

Any thoughts on the value of purchasing a five year extended Labor warranty for my three year old house? Parts warranty is still good for another seven years. Labor warranty is good for two more years. Cost = $1k for five more years on the labor warranty. Thanks. Woodstock John

Normally I'd say "no way" to extended warranties. I was in the automobile business for many years & we practically invented Extended Warranties and have made a fortune with them.

HVAC is a completely different animal. The "Parts" warranty on HVAC units is of almost no value. Most units come with a 1 year & 4-5 years of "parts". The parts are cheap, labot is the killer with HVAC units. These days, they almost all come from China and they surely don't last like they used to. I have a 40 year old Condenser at my home in MA, that still works perfectly. In Florida? I seem to replace a unit every 4-5 years.

$1000 for a 5 Year Warranty of your HVAC, that's already 3 years old? That's a steal. If it's a real warranty, that actually covers most everything, it's the cheapest peace of mind you can buy. Not only is it great deal, it's even better because your current unit is obsolete, as of January 1, 2025. The required refrigerant is changing on 1/1/25 and legacy units are going to get more expensive to repair.

[MrFlorida]

No, I would not buy an extended contract.

[Babubhat]

It’s the ONLY extended warranty I have ever purchased. The run capacitor will often fail and you’re lucky if they show up for 200 a year. Not to mention refrigerant leaks.

To each his own. Like the Fram commercial, you can pay me now or pay me later. I find the reward to risk ratio reasonable.

[retiredguy123]

Normally I'd say "no way" to extended warranties. I was in the automobile business for many years & we practically invented Extended Warranties and have made a fortune with them.

HVAC is a completely different animal. The "Parts" warranty on HVAC units is of almost no value. Most units come with a 1 year & 4-5 years of "parts". The parts are cheap, labot is the killer with HVAC units. These days, they almost all come from China and they surely don't last like they used to. I have a 40 year old Condenser at my home in MA, that still works perfectly. In Florida? I seem to replace a unit every 4-5 years.

$1000 for a 5 Year Warranty of your HVAC, that's already 3 years old? That's a steal. If it's a real warranty, that actually covers most everything, it's the cheapest peace of mind you can buy. Not only is it great deal, it's even better because your current unit is obsolete, as of January 1, 2025. The required refrigerant is changing on 1/1/25 and legacy units are going to get more expensive to repair.
Not true about the warranty on new HVAC systems in The Villages. Most systems come with a 5-year labor and 10-year parts warranty, which tracks exactly with what the OP said. I assume that the $1,000 extended labor warranty will be paid now, but won't go into effect for 2 more years? If so, the OP is paying 2 years in advance for a labor warranty. Not a good idea.

Suppose the HVAC system fails during a hot day in July? What incentive does the contractor have to expedite a repair for warranty work, when the phone is ringing off the hook with new potential customers? My system failed in July and Munn's repaired it within 4 hours on a Saturday, with no maintenance agreement or extended warranty. Do you really think you will get that type of response from a company who sold you an extended warranty?

[Babubhat]

Priority service is a feature. But some want a written guarantee and a monetary remedy for a potential service delay which could never be quantified. Completely unreasonable.

Thank goodness for the ignore feature.

[retiredguy123]

///
I have never seen a warranty or maintenance contract that guaranteed in writing any specific response time. It is a selling point, but it is also just a verbal promise.

[Altavia]

Normally I'd say "no way" to extended warranties. I was in the automobile business for many years & we practically invented Extended Warranties and have made a fortune with them.

HVAC is a completely different animal. The "Parts" warranty on HVAC units is of almost no value. Most units come with a 1 year & 4-5 years of "parts". The parts are cheap, labot is the killer with HVAC units. These days, they almost all come from China and they surely don't last like they used to. I have a 40 year old Condenser at my home in MA, that still works perfectly. In Florida? I seem to replace a unit every 4-5 years.

$1000 for a 5 Year Warranty of your HVAC, that's already 3 years old? That's a steal. If it's a real warranty, that actually covers most everything, it's the cheapest peace of mind you can buy. Not only is it great deal, it's even better because your current unit is obsolete, as of January 1, 2025. The required refrigerant is changing on 1/1/25 and legacy units are going to get more expensive to repair.

I came to the same conclusion plus factored in the high likelihood cost of service labor will continue to increase.

[Babubhat]

Many contractors are buying an insurance policy and not assuming unlimited costs with respect to the warranty. See attached

Extended Warranty Program for Contractors | HVAC/R Equipment (https://www.trinitywarranty.com/extended-warranty-programs/contractors)

[retiredguy123]

Most HVAC repairs can be completed in less than an hour by a qualified technician. Paying $1,000 for a labor only warranty is just plain nuts.

[DennisfromMinnesota]

I purchased a Home Systems endorsement through my State Farm agent in Mississippi. Cost was about $30 yr. It’s underwritten and serviced through Hartford Steam Boiler Co I think.
In any event, I believe up to $50k coverage, $500 deductible.
A/C condensing unit. (Big box outside) went out. They paid out $4k, less my $500 deductible.
Oh, and after 10 years, limit drops dramatically to $2k I think. Still, I thought a pretty good value.

[ithos]

Remember, with the new refrigerant regulations, most production of R410A units will be outlawed. This means if your compressor fails you may have to replace the inside unit too which may not be covered. R410A refrigerant will be available for many more years.

One option is to purchase a replacement compressor while they are still available. It takes more labor than swapping out the condenser but the overall cost should be about the same. Every other part that fails are relatively inexpensive and can be replaced by the average handyman. (I have personally replaced a compressor in a residential condenser with no problems. Typically in commercial units, failed compressors are replaced especially in package units)
Refrigerant Transition Takes a Big Step in 2025 | ACHR News (https://www.achrnews.com/blogs/17-opinions/post/154781-refrigerant-transition-takes-a-big-step-in-2025)

[retiredguy123]

I purchased a Home Systems endorsement through my State Farm agent in Mississippi. Cost was about $30 yr. It’s underwritten and serviced through Hartford Steam Boiler Co I think.
In any event, I believe up to $50k coverage, $500 deductible.
A/C condensing unit. (Big box outside) went out. They paid out $4k, less my $500 deductible.
Oh, and after 10 years, limit drops dramatically to $2k I think. Still, I thought a pretty good value.
I'm curious. Apparently, these State Farm endorsements are available to purchase in Florida, but for about $100 per year. They have a $500 per repair deductible, and they do not cover "normal wear and tear". A new HVAC system comes with a 5-year parts and labor warranty and your regular homeowner's insurance already covers damage caused by a natural disaster, such as a storm, fire, or power surge. Most minor repairs will usually cost less than $500. So, if your HVAC unit stops working after 5 years and needs to be replaced, how would you convince the insurance company that it was not caused by normal wear and tear? Also, if the 10-year parts warranty is still in effect, does the endorsement cover anything?

[djlnc]

I think you have to have your unit serviced annually for that warranty to remain in effect.

[NoMo50]

The "Parts" warranty on HVAC units is of almost no value.

I disagree. Most, if not all, new homes in The Villages come with a 10-year parts and 5-year labor warranty on HVAC systems. We had to make use of that warranty earlier this year when the A/C condenser fan motor shot craps in our 3 year old Carrier unit. Munn's was terrific in coming out the same day, making the repairs under warranty. The tech let me know how fortunate we were that the motor went out under warranty. These new Carrier units use a condenser fan motor that has an ECM built in, and the cost of the "part" alone was $1,018.00! The labor charge to install the motor was $100.00.

[nn0wheremann]

Any thoughts on the value of purchasing a five year extended Labor warranty for my three year old house? Parts warranty is still good for another seven years. Labor warranty is good for two more years. Cost = $1k for five more years on the labor warranty. Thanks. Woodstock John
Unless you are hort of cash and have exhausted your credit, the warranty is a waste of your money.

[Syd2008]

It’s the ONLY extended warranty I have ever purchased. The run capacitor will often fail and you’re lucky if they show up for 200 a year. Not to mention refrigerant leaks.

To each his own. Like the Fram commercial, you can pay me now or pay me later. I find the reward to risk ratio reasonable.

Leaks are very rare, if you have one, repair, recharge and your done. If they just recharge then they’ll be back at some point. Capacitor $20, five screws and done in 15-20 minutes.

[mikempp]

Any thoughts on the value of purchasing a five year extended Labor warranty for my three year old house? Parts warranty is still good for another seven years. Labor warranty is good for two more years. Cost = $1k for five more years on the labor warranty. Thanks. Woodstock John

The ac man I use now put a new condenser in for $400, the part was under warranty. I have rentals in Ohio. I seldom have problems and none have $1000 in labor costs.

[MandoMan]

Any thoughts on the value of purchasing a five year extended Labor warranty for my three year old house? Parts warranty is still good for another seven years. Labor warranty is good for two more years. Cost = $1k for five more years on the labor warranty. Thanks. Woodstock John

I had a new HVAC system installed in May of 2023 for $10,500. A refrigerant leak led to several days without cooling last summer and four days without heat last weekend. Turns out the leak is in the coils. As the unit is still under warranty, I don’t have to pay for a new coils unit (probably $1,000), but the two hours to install it will cost me $500. It was supposed to be installed yesterday, but somehow it blew off the truck yesterday on I-75 and was run over by a semi.

[retiredguy123]

I had a new HVAC system installed in May of 2023 for $10,500. A refrigerant leak led to several days without cooling last summer and four days without heat last weekend. Turns out the leak is in the coils. As the unit is still under warranty, I don’t have to pay for a new coils unit (probably $1,000), but the two hours to install it will cost me $500. It was supposed to be installed yesterday, but somehow it blew off the truck yesterday on I-75 and was run over by a semi.
There must be more to this story. New Carrier systems (and most other major brands) come with a 5-year labor and 10-year parts warranty. So, can I assume that this is not a Carrier system? $10,500 is a lot of money for a system that has a substandard warranty. A large local company, like Munn's, would have been able to get replacement coils in a day or so, or just swap them out from an in-stock unit.

[ithos]

I had a new HVAC system installed in May of 2023 for $10,500. A refrigerant leak led to several days without cooling last summer and four days without heat last weekend. Turns out the leak is in the coils. As the unit is still under warranty, I don’t have to pay for a new coils unit (probably $1,000), but the two hours to install it will cost me $500. It was supposed to be installed yesterday, but somehow it blew off the truck yesterday on I-75 and was run over by a semi.

If you have a leak in the future that is not covered by insurance, you usually don't have to replace the coil. You do have to cut some of the fins out though.
https://www.youtube.com/results?search_query=hvac+coil+leak+repair