In order to answer the question, “Are furnace extended warranties worth it?”, you’ll need to consider a number of factors such as the cost of the warranty, the age and make of the furnace, and the type of coverage the warranty provides. Ideal Heating & Air Conditioning will answer some important questions to help you decide what’s best for you and your family.
- Should I get a warranty for a furnace?
- What are some reasons not to buy an extended warranty?
- How do I know if I can trust the company I am buying a furnace extended warranty from?
- What do extended furnace warranties cover?
- How much is an extended furnace warranty really worth?
- What does Reddit have to say about extended furnace warranties?
Click on the links above to learn more. Or, contact an HVAC specialist at Ideal Heating & Air Conditioning.
Consider the following questions to see if an extended warranty is worth it for your furnace. (Image Source: Andrea Piacquadio)
Is an Extended Furnace Warranty Worth it?
Whether an extended furnace warranty is worth it depends on several factors, the cost of the warranty, the reliability of the furnace, and the level of coverage provided.
If you live in a region with heavy furnace use, such as Ontario, Canada, or if you’re concerned about costly repairs, an extended warranty may offer peace of mind. However, for newer systems from reputable brands, the chances of needing significant repairs may be low, making the warranty less cost-effective. Carefully reviewing the terms of the extended warranty and comparing it to potential repair costs can help you decide if it’s worth the investment.
Keep reading so we can help you answer the question: Are furnace extended warranties worth it?
1. Should I Get a Warranty For a Furnace?
Make sure to read the fine print so you know what your warranty covers. (Image Source: cottonbro studio)
2. What are some reasons not to buy an extended warranty?
Here are some common reasons not to buy an extended warranty for a product, including furnaces:
High Cost vs. Actual Use
- Extended warranties can be expensive, and in many cases, you might never use them. Statistically, many products, especially high-quality ones, don’t require enough repairs to justify the cost of the warranty.
Limited Coverage
- Some extended warranties have fine print that limits what is covered. For example, they might not cover certain types of damage or repairs, such as labour or maintenance. If the warranty doesn’t cover the most common issues, it may not be worth the cost.
Existing Manufacturer’s Warranty
- Most products already come with a manufacturer’s warranty, which covers many repairs for a certain period (usually 1-2 years for parts and limited coverage for labour). You may not need an extended warranty until that initial period expires.
Low Failure Rate for New Products
- Modern furnaces and other appliances tend to have high reliability and low failure rates within the first few years of use. If the product is well-built, it’s likely that you won’t experience a major breakdown during the warranty period.
Maintenance vs. Repair
- Some extended warranties only cover repairs, not routine maintenance, which is crucial for keeping your furnace or appliance in good working condition. If you need to pay separately for annual servicing, the extended warranty may not be as beneficial.
Self-Insurance
- Instead of paying for an extended warranty, some people choose to self-insure by setting aside money for future repairs. This way, if something goes wrong, you have funds available, and if nothing breaks, you’ve saved the cost of the warranty.
Exclusions and Loopholes
- Extended warranties sometimes include exclusions, like wear and tear or specific parts that commonly fail. Understanding these limitations can make the extended warranty less attractive, especially if common failures aren’t covered.
Conclusion:
For many people, the peace of mind that comes with an extended warranty isn’t worth the extra cost, especially if the product is reliable, the manufacturer offers a good initial warranty, or the coverage is limited in scope. It’s important to weigh the cost of the warranty against the likelihood of needing expensive repairs.
Read Google Reviews before buying a warranty to see if the company is trustworthy. (Image Source: Jessica Lewis 🦋 thepaintedsquare)
3. How do I know if I can trust the company I am buying a furnace extended warranty from?
To determine if you can trust the company from which you’re buying an extended furnace warranty, consider the following steps:
Research the Company’s Reputation
- Check Online Reviews: Look for reviews on sites like Google, Better Business Bureau (BBB), or Trustpilot. Pay attention to feedback regarding the company’s service quality, customer support, and warranty fulfillment. Did you know that Ideal Heating & Air Conditioning has a 5-star rating on Google Reviews? Click here to read their amazing reviews!
- BBB Accreditation: A company accredited by the Better Business Bureau typically adheres to standards of transparency and ethical business practices. Check the BBB’s rating and see if there are any unresolved complaints.
- Social Media and Forums: Visit home improvement forums, Reddit, or other platforms where customers share experiences about warranties and furnace providers.
Examine the Warranty Terms
- Read the Fine Print: Carefully review what the warranty covers and any exclusions. Trustworthy companies provide clear, transparent documentation on what’s included (parts, labour, annual maintenance, etc.).
- Length of Coverage: If a warranty has unusually short or long terms, it could be a red flag. Look for a standard coverage period of around 5-10 years, depending on the furnace.
Verify Licensing and Certifications
- Check Licensing: In Ontario, heating, ventilation, and air conditioning (HVAC) companies should be licensed under the Technical Standards and Safety Authority (TSSA). Make sure the company selling the extended warranty is certified.
- Manufacturer’s Certification: If the warranty is from a third party, check if they are authorized by the furnace manufacturer to sell warranties.
Ask for References
- Request references from customers who have purchased the warranty and have used the repair service. A reputable company will provide testimonials and examples of satisfied customers.
Service Support and Availability
- Customer Service: Evaluate how easy it is to reach the company for support. Call them with questions before purchasing the warranty to see how responsive and helpful they are.
- Service Provider Network: Ask whether the company uses certified HVAC technicians for repairs and maintenance. Reliable companies typically partner with certified professionals who are knowledgeable about your furnace model.
Check for Red Flags
- Aggressive Sales Tactics: Be wary of companies that pressure you into buying the extended warranty immediately or offer limited-time deals that seem too good to be true.
- Unclear Claims Process: If the company has a complicated or opaque claims process, it may be difficult to get repairs covered when needed.
Ask for Recommendations
- Talk to HVAC Technicians: If you’re working with an HVAC contractor, ask them for recommendations about trusted companies offering extended warranties. They can provide insights into which companies offer reliable service.
By following these steps, you can feel more confident in choosing a company that provides a trustworthy furnace extended warranty.
Don’t forget that your warranty coverage may not include the labor costs of repairs. (Image Source: Juan Pablo Serrano)
4. What do extended furnace warranties cover?
An extended furnace warranty may be beneficial for people living in cold climates like Ontario. (Image Source: Jill Wellington)
5. How much is an extended furnace warranty really worth?
The value of an extended furnace warranty depends on several factors, such as the cost of the warranty, the likelihood of needing repairs, and the coverage provided. While many people pay for a warranty simply for the peace of mind it provides, here’s a breakdown of the factors that influence how much an extended warranty is truly worth:
Cost of the Warranty
- Extended furnace warranties can cost anywhere from $250 to $2,000 CAD depending on the warranty length, type, and coverage provided (parts, labour, annual maintenance, etc.).
- Higher-end systems and more comprehensive warranties tend to be more expensive.
Potential Repair Costs Without a Warranty
- Furnace repair costs: For common repairs, expect costs ranging from $200 to $1,500 CAD, with more expensive repairs like heat exchangers possibly exceeding $2,500 CAD.
- Without an extended warranty, you would have to cover these costs out of pocket. A warranty helps you avoid large, unexpected expenses.
Age and Quality of the Furnace
- Newer Furnaces: If you’re purchasing a new or high-quality furnace with a strong manufacturer’s warranty (often 5-10 years on parts), the need for repairs in the first few years might be low. This can reduce the immediate value of an extended warranty.
- Older Furnaces: If you’re extending coverage on an older furnace (over 10 years old), you’re more likely to need repairs, making an extended warranty more valuable.
Likelihood of Use
- If you live in a cold climate like Ontario, where furnaces run frequently in winter, the chance of wear and tear increases, potentially making an extended warranty more useful.
- However, furnaces are designed to be durable, and many homeowners might not experience significant issues during the warranty period. In this case, the cost of the warranty may exceed the cost of any repairs needed.
Maintenance and Annual Service Inclusions
- Some extended warranties include annual maintenance, which can add value by helping to prevent costly breakdowns. However, these services are sometimes offered separately by HVAC companies at lower prices.
Conclusion:
An extended furnace warranty can be worth the cost if you value peace of mind, have an older system, or want to protect yourself from expensive repairs. However, if your furnace is new and reliable, and you’re comfortable with the potential for small repair costs, the warranty may not be necessary.
Weigh the cost of the warranty against the likelihood of future repairs to determine if it’s a good investment for you. Also, keep in mind that it’s a good idea to consult local HVAC companies and warranty providers within Ontario or Canada for specific Canadian pricing.
Sources: HomeGuide, Consumer Reports
Get feedback about furnaces and extended warranties from real people on Reddit. (Image Source: Brett Jordan)
6. What does reddit have to say about extended furnace warranties?
Reddit discussions on extended furnace warranties often reflect a mix of skepticism and practicality. Many users point out that while extended warranties can provide peace of mind, the value largely depends on the following factors:
- Reliability of the furnace brand
- Cost of potential repairs
- How long you plan to stay in your home
Some Redditors express that extended warranties are overhyped and often marketed aggressively by salespeople, but real-world usage might not justify the cost unless you expect frequent repairs. Common complaints include slow response times from warranty providers and limited coverage that doesn’t include labor costs.
In contrast, some homeowners appreciate having coverage beyond the manufacturer’s warranty, especially if their furnace is a key component of an older HVAC system.
Overall, the consensus tends to lean towards doing a cost-benefit analysis: if the extended warranty price rivals the cost of a major repair (like a blower motor), it might be worth considering. Redditors recommend assessing your furnace’s track record, considering the likelihood of needing repairs, and reading the fine print of the warranty to decide if it’s a good investment.
The trustworthy and knowledgeable staff at Ideal Heating & Air Conditioning can help you determine if an extended warranty for your furnace is a good idea. They can help you decide what sort of coverage is good for you and help you compare costs. Contact Ideal today for peace of mind.