"Joseph Meehan" wrote in message
.. .
Dr. Hardcrab wrote:
"Dan Espen" wrote in message
...
"Dr. Hardcrab" writes:

"Dan Espen" wrote in message
...
Doug Smith writes:

How usefull are the 10-year extended warranties for new furnaces,
such as
for Trane, Carrier, Lennox, etc. My gut instinct is that I don't
want to
spend $4500 on a new furnace that is likely to break down in
under 10 years...

It may help if you realize that that warranty is nothing more than
insurance.

My own rule is never insure what I can afford to loose.

I can't afford to loose my home so I insure it.
I can afford to replace the furnace so I would never insure it.
Your average loss on a furnace is a few hundred dollars, not the
total cost.

Try replacing a heat exchanger (or even a blower motor!) for "a few
hundred
dollars".....

Well, if you can't affort the 1K, 2K, whatever it is, insure it.

Be prepared to pay more in insurance than your _likely_ loss,
the odds are against you.

I see your point. Like extended warranties on cars or appliances: Not
really worth the money, but makes the "insurance companies" rich...

I was thinking more along the lines of the way we do warranties:

2 years labor, 5 years parts, and then whatever the manufacturer
offers (10 years on compressor, limited lifetime on heat exchanger,
etc.). We offer "extended labor" policies (for the remainder of the 5
years) for $100. If you look at the mnimum cost on a service call,
that's a bargain.....

It's only a bargain if you win by having your system fail. Most people
will not have their system fail.

Well, look at it this way:

You have an OIL furnace and it cuts off on the coldest night of the winter.
Let's say you just got a delivery of fuel earlier in the day. It stirred up
trash in the tank and clogged up the nozzle on the burner. Parts are all
covered, but after year number 2, the service call is not. So, do you pay
that extended labor or do you pay for a "night service call" at twice the
price?