Dr. Hardcrab wrote:
"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?
You may want to check to see if that insurance plan covers that night
call.
In any case it does not change one thing. The insurance company is
making big money from these policies. That means people on average are
paying far more for the insurance than they would pay without it.
If you could not afford the loss of the cost of that service call
(assuming it was really covered) then you should insure it. For most people
that un-affordable cost is the cost of replacing their home or paying out
for a large liability case in a traffic accident. Most people may find the
cost of a night service call inconvenient but doable. (Frankly I would go on
my standby alternatives and have someone come the next day)
--
Joseph Meehan
Dia duit
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