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Why Do You Have A Home Warranty?

Updated: Dec 6, 2023

DISCLAIMER: Blue Ridge Heating and Air is not contractually affiliated with any Home Warranty provider, and has no opinions, complaints, or endorsements of any particular warranty provider.


If you are like most people, you are interested in warranty information because you have one or more HVAC system replacements looming, and you want some cost protection/assistance with that from a home warranty. You are probably wondering if a home warranty will cover an old HVAC system.

Why Do You Have A Home Warranty?

You may also be seeking some "peace-of-mind" that a large, unexpected HVAC expense will not blind-side you. If you're like most homeowners, we don't save up for heat pumps and furnaces. I have some thoughts on this strategy.


My home warranty experience as a homeowner.

When I bought the house I currently live in, it came with a seller-funded home warranty with a well-known national Home Warranty company. The two HVAC systems in this house were original equipment from the construction of the house, roughly 15 years old. This was long before I was working in the HVAC industry. Knowing that these systems were likely near or beyond the end of their useful lives, I renewed the warranty for each of the next five years. Then in the sixth year, the warranty company tripled my renewal price. I did not renew. My conclusion is that the home warranty company decided that my HVAC systems were too much of a liability so they "fired me" as a customer.


Many people wonder, "Is HVAC covered under home warranty?" The answer here is a definite yes, but in my case, it was the reason I stopped using this company.


My observations from the HVAC industry.

Now that I am in the heating and air business, I see a lot of discussion on social media about home warranties. I have also interacted with a number of customers who are struggling to get their HVAC system whole with their home warranty provider.

This assessment certainly doesn't apply to every warranty company, and I have seen more than one customer testimonial of a positive experience with their home warranty. However, the prevailing theme is that they pay a monthly fee for the warranty, pay a "deductible" for a service call when their system needs repair, and a band-aid repair is applied by the warranty company. In many cases, a technician may even tell the homeowner that the system should be replaced, but the warranty company is only going to cover the repair option. If you are wondering how to get home warranty to replace furnace or an AC system, it may be pretty difficult.


In 2018, the Office of the Attorney General for the District of Columbia issued a Consumer Alert regarding home warranties. Linked is a fact sheet published by their office.


Will A Home Warranty Cover Old HVAC

As I mentioned above, even if a home warranty is supposed to cover old HVAC, that doesn't necessarily mean it will. Usually, these companies are going to push towards the cheapest option, and it may become more of a hassle than a relief to have.


Let's look at the cash flow, home comfort, energy usage, and peace-of-mind

  • Home Warranty Cost: Average Cost of the Home Warranty: ~$50-$70 per month - assume $60

  • Average Cost of an HVAC annual maintenance plan: ~$13-$40 per month (Blue Ridge Heating and Air price is $16.58 per month for 2 maintenances per year) - assume $20

  • Energy Cost: If you are operating an older 10 SEER system, you could realize 25-40% energy savings depending on the efficiency of the replacement system you could install. Let's assume 25% savings are possible So if you're paying $150 per month for energy (electricity/gas) to heat and cool your home, you could save $37 per month in energy cost.

  • Deductible for service: most plans will require a deductible, commonly $75 per claim.

  • Caps: if you are approved for a system replacement, the replacement benefit typically has a cap on the dollar amount covered.

The math:

  • Monthly spend: $70 (warranty) + $20 (HVAC maintenance plan) + $37 (potential energy savings) = $117 per month

  • So, you may be spending about $127 per month to:

    • hopefully protect yourself and family from a large financial liability

    • hopefully keep your home comfortable with your old, "always seems to be running" heat pump, air conditioner, or furnace

    • hopefully give you peace-of-mind

An alternative to consider that offers true "peace-of-mind" and maximum home comfort with a new system for approximately the same $130 monthly investment (depending on the size and type of system) that will actually deliver on financial protection, reliable home comfort, and true peace-of-mind. Furthermore, a new system may qualify for utility rebates and the 2022 IRA Tax Credit, which will return money back to your household.


If you are interested in a heat pump, AC, or furnace replacement in upstate SC or western NC, look no further. Blue Ridge Heating and Air can come out and help you decide if you are in need of a repair, or a replacement for your HVAC system.


FAQs:

How do I know if my HVAC is under warranty?

When you install your HVAC system, the installer should let you know about the warranty. Check the papers and documents you received, and check with your HVAC contractor.


What is the typical lifespan of an HVAC system?

The typical lifespan of an HVAC system is 15-20 years with regular maintenance and service. Without regular maintenance, your system won't make it to 15.

What will void an HVAC warranty?

If you don't schedule regular maintenance with a professional, it could void your HVAC warranty. Most warranties require maintenance at least once a year. The Blue Ridge Comfort Maintenance Plan will help keep your system running in factory fresh condition and efficiency, and will keep your factory warranty in tact.


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