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...

thanks

"Doug Smith" wrote in message
. ..
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...

thanks

Then buy a Goodman for $2500 and make sure they
give you a 10 year parts & labor warranty. Or spent
$4500 on a Trane and don't worry about needing a
warranty for 15 years.

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.

"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".....

Doug Smith wrote:
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...

thanks

Consider that they way most of them are sold is to list the total time
you will be insured, including the original warrantee that you will already
have from the manufacturer.

Also consider that extended warranties (really add on insurance policies
not warranties) are sold by insurance companies that make lots of money from
them, usually about 40 - 60% of what you pay. You will almost always come
out ahead by putting the money you would spend on it in the bank.

--
Joseph Meehan

Dia duit

"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.

"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.....

"Dr. Hardcrab" wrote in message
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.....

Yes, it is. But if you insure through a third party, it would likely cost
much more and you often get second rate service by the lowest bidder, not
the most competent techs.

"Joseph Meehan" wrote in message
. ..
Doug Smith wrote:
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...

thanks

Consider that they way most of them are sold is to list the total time
you will be insured, including the original warrantee that you will
already have from the manufacturer.

Also consider that extended warranties (really add on insurance
policies not warranties) are sold by insurance companies that make lots of
money from them, usually about 40 - 60% of what you pay. You will almost
always come out ahead by putting the money you would spend on it in the
bank.

--
Joseph Meehan

Dia duit
If I purchased all of the extended warranties I've been offered in the past
20 years or so, the total cost would have been several thousands of dollars-
at least $5- possibly more. In the same time period I have not spent
anywhere near that amount on getting those items repaired. So I'm thousands
of dollars ahead by not buying the warranties. Insure against what you
can't afford to replace- self insure for what you can afford. Insuring
against relatively small losses is just a waste of money. Who can't afford
to pop for even a $1000 furnace repair bill? (In 20 years of home ownership,
I've never had to call for furnace repair).
Lucky? Or are furnaces made pretty well? I live in the snow belt, to they
get a good workout.

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.

--
Joseph Meehan

Dia duit

"Edwin Pawlowski" wrote in message
. ..

"Dr. Hardcrab" wrote in message
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.....

Yes, it is. But if you insure through a third party, it would likely cost
much more and you often get second rate service by the lowest bidder, not
the most competent techs.

Agreed. The extended labor plan is through us...

"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?

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