Homeowner Information

This page contains valuable information every homeowner should know about topics we receive a lot of inquiries about.

The $79 Tune Up

The typical ad for a preseason “tune-up” promises to make your furnace and air conditioner run more efficiently and last longer for a price for something to the tune of $79. It is too good to be true, literally. These Technicians are pressured to recommend additional work that will not be covered by the advertised price. That pressure isn’t implicit. It’s systematic. They will be in hot water if they return with a $79 invoice. No company can survive sending a trained technician out to your home for $79.

So, how can heating and air conditioning repair companies afford to do this? Well, most likely one of two ways, with one being much more common than the other. One option is they are truly just trying to cover their costs and hope to get service work and equipment replacements from maintenance customers. The other option, and unfortunately, we firmly believe is the more common of the two, is many HVAC companies do not perform a true tune-up. What they really do is dress up what you can see, but mainly they are fishing for broken parts they can replace, often at an extremely inflated price. They are convinced that since they were the cheapest price you could find for maintenance, you’re not going to question their repair prices. And I would say most often they are correct in this assumption.

So, if you are wondering if you should go with that lower price I offer you this; you get what you pay for and if you know and trust your HVAC contractor and can see the value of the work they are performing don’t be afraid to pay a little more for the peace of mind that knowing the job is done right will bring.

Used Equipment

We get a lot of requests from unsuspecting Homeowners and cash strapped Real Estate investors looking for used equipment. They feel they are being smart and resourceful. We can go back and forth all day about why it is not such a bad idea, so I will be brief here. At the end of the day, you are not gaining anything. The problem is that the installation process does not change as it takes the same amount of energy and effort to install this used equipment. You will be saving a few dollars, but you will lose the 10-year warranty with no options for any labor warranty. And worse, if the equipment does not work, you lose your money. It is a huge gamble and there are a few success stories and many more disaster stories with used equipment. With new equipment, it is our problem if it does not work, and we will replace it free of charge. Why? Because you have a Warranty!

Home Warranty Companies

Many of the complaints we hear are related to a homeowner’s high expectations and misunderstanding of what the home warranty covers and does not cover. When purchasing a home warranty, special attention needs to be given to the fine print of the contract.

Home warranty companies are not on your side. They are not an appliance replacement company nor are they in the HVAC replacement business. It is a business model designed to collect money, your money. Think for a minute, you have been paying $95 a month for six months and your system fails. You are not getting a new system valued at $16000. You will be offered a $500 buyout and sent on your way! Remember, the home warranty company is a for profit company that will try and do the “least expensive” repair.

Lack of Maintenance and Pre-existing conditions will lead to a rapid denial. Warranty companies love to deny claims on lack of maintenance. They know you have not had that AC of Furnace inspected or cleaned and they are going to ask for pictures. We know that too. The only time most homeowners think about the AC is when it is not working.

Be prepared for Customer No Service! Be prepared for 1 hour plus hold times just to talk with rude customer service reps who will tell you anything to get you off the phone.

Low Level Inexperienced Service Providers. Often, we hear from customers that were told the parts are unavailable. This is false because the low-level service provider does not have a relationship with the manufacturer or enough knowledge of the equipment, and most have no clue of what they are doing. Most are comfortable with cutting corners which compromise your safety. What do you expect for $55?

Filing an Insurance Claim

Some homeowners will try the route of using the homeowner’s insurance policy to avoid expensive repairs. From my experience of working with insurance companies, this route is hit or miss. To be honest, it’s mostly miss. Even if you do manage to get a few dollars (minus your $1000 deductible) your premiums will increase. Keep filing nuisance claims and you will be dropped.

Home insurance covers AC units and heat pumps to the same extent the rest of your home is covered. Damage caused by fires, falling trees, theft and vandalism are all covered in standard homeowners’ policies. Damage from lightning strikes and flooding are hit or miss and usually very hard to prove.

Of all the assessments we performed for insurance companies claiming lightning damage, less than 2% were found to be damaged by lightning and 98% were classified as wear and tear (meaning it is old). Claim denied! As for a water loss event, which involves an indoor unit (furnace or air handler) that was damaged by water from a broken water pipe in the basement or crawl space, these claims are very hard for an insurance company to deny.

Where do homeowners get the idea to call the insurance company? Usually from an unscrupulous contractor or another misinformed homeowner! In the last decade or so, Insurance companies have gotten hip to this and are now sending out highly experienced State Licensed Contractors to verify your claim. The sad part is that most of the time what is usually wrong with a system can be fixed for far less than the $1000 deductible. We have conducted insurance assessments and found that a $450 repair replacing a small common part was all that was wrong. However, the homeowner was quoted for a new system at $16,000. The claim will be denied, and you will suffer a hit on your claims history resulting in increased premiums. If your AC unit sustains harm from a covered event, consider whether filing a claim will cost more in the long run. (Think about that $1000 deductible) Most of the time, it’s just a minor issue.

System Warranties

There are only 2 types of HVAC system warranties. Standard equipment warranties provided by the manufacturer (offered by all manufacturers), and extended labor warranties that can be purchased from the manufacturer (a very valuable investment) or provided by the contractor (Beware).

Equipment Warranties

Equipment warranties are offered by all manufacturers to cover malfunctions or failures related to a specific component. In other words, if your system quits because the manufacturer had a bad day at the plant – and it has been less than 5 years (10 years if the equipment was REGISTERED) – The manufacturer will provide a new part. You will still have to pay a contractor for labor if you have no labor warranty! Typical manufacturers’ warranties do not cover labor costs. However, it is common practice for an installation contractor to cover all service costs (parts and labor) for one year after the installation of a new unit.

Labor Warranties

Labor warranties are provided in 2 ways, both by the installing contractor. They can be purchased by the contractor through the manufacturer (highly recommended) and you are required to purchase an annual maintenance agreement for verification of annual maintenance. The other way is the warranty being backed by the word and promise of the installation contractor's word (a means for caution). If the company is no longer in business, you will have no warranty. The cost of a 10-year labor warranty is around $1500 upfront. The labor cost with materials to replace a failed compressor is around $2000 and around $1500 for a coil. Without s labor warranty, you will be responsible for labor costs for each failed component over the course of 10 years!

Warranties are important because in case of a system breakdown, there will not be an out-of-pocket expense to you. With all that said, even a perfect installation cannot guarantee against component failure. It will be in your best interest to purchase a labor warranty backed by the manufacturer, not on the installing contractor’s word.

Leasing Your Home Comfort System

This program targets cash strapped customers with challenged credit. The no credit check, $0 upfront costs, deferred payments, and lifetime service make this a very, very tempting alternative. Before you get stuck I the muck for the nest 10 years, you must know the hidden pitfalls this HVAC business model that will turn into a 10-year financial burden.

No Service Provider Options

Once the paperwork is signed, you are required to use the installing contractor for the term of the lease. If you were to lose confidence in your service provider, you would have no options.

Lack of Ownership, Lack of Insurance Coverage

You are leasing the HVAC equipment which means you do not own the system. This can raise issues with your insurance company as they can deny coverage due to your lack of ownership of the equipment. However, when signing the agreement, you accepted responsibility for any damage, which means you can be held liable.

Long Term Payments, No Principal Balance Reduction

In a normal financing contract, the payments end after a certain period. In a lease, monthly payments continue indefinitely without reducing the principal balance. Even after paying monthly for the lease for 10 years, you will never get to own the unit. Some leases have a hidden Buyout Clause at the end of the lease that you must pay, and it is not based on the age of the equipment. The cost will be near or at the cost of a new system! The only way out is to sign a new lease for another 10 years!

When you factor in the total costs of all your payments plus the buyout at the end of your lease, you’ll be shocked that you’ve paid $25,000 to $30,000 for a $12,000 unit. Before signing a lease, you should inquire as to what other options are available to you.