Extended Labor on Gas Furnace


Old 05-07-14, 08:57 AM
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Extended Labor on Gas Furnace

Trying to judge if this is a good idea.

I bought a new furnace and AC last August. It came with 10 parts and 1 year labor.

Considering an extended labor thing.

Gas supplier offers a program for 10.99 a month for the furnace which covers parts and labor up to 1500 bucks in a rolling 12 month period. They also offer one for an additional 10.99 for the AC. And there are premium versions of both for around 12.99 a month.

The installer wants to sell me 9 years of labor (which would have been standard on a more expensive setup) for 800 bucks.

The one from the gas supplier is a program I can take advantage of later where the one from the hvac co. runs out in August at which time it would be in the 1000 dollar range.

Do you have any similar programs on your HVAC equipment or should I just roll the dice knowing parts are covered and I would have to pay labor in the event of a malfunction?
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Old 05-07-14, 01:02 PM
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If you think your installer will be around for 9 years, the 800 sounds like a lot cheaper insurance than the gas supplier, to me anyway.
Old 05-07-14, 01:16 PM
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I had my furnace replaced early in 2006 and it included a free "tune-up" one year after installation. Since that visit I have not had a service person even look at it let alone replace any parts. I have done some minor service on it myself, nothing that any semi-skilled DIYer could not also do.

I think that most "service" plans are a rip-off and only benefit the person/company selling the plan. Your experience may be different but I seriously doubt that you will need $800 worth of labor in the next ten years unless your furnace is already ten years old and probably not even then. If you are really concerned then open a savings account with your credit union and deposit $11 a month. Withdraw from this account ONLY for furnace maintenance.
Old 05-08-14, 06:01 PM
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I bought a new furnace and AC last August. It came with 10 parts and 1 year labor.
I have seen 5 year old compressors fail, and condenser coils and evaporator coils leak under warranty and the homeowners cost was enough to validate the expense of the extended labor warranty.

Furnaces usually don't require expensive repairs within 10 years in my neck of the woods.

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