HVAC Extended Labor Warranty
 

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 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.

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.

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

These insurance companies are not in business to loose money.

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 Not only is it great deal, it's even better because your current unit is obsolete, as of January 1, 2025.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.

No, I would not buy an extended contract.

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.

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?

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.

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.

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

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

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.

Home Systems endorsement
 

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.