HVAC Warranties: Coverage and Cost

What are the types of HVAC warranties?

You might encounter several other types of warranties to protect your heating, ventilation and air conditioning systems. Each type serves a different purpose and has its own set of conditions.

Manufacturers warranty

A manufacturers warranty comes directly from the manufacturer of your HVAC equipment and typically covers defects in materials or workmanship. It usually applies to specific components like the compressor, heat exchanger or other critical parts. These warranties do not cover damages due to improper installation, lack of maintenance or normal wear and tear.

Manufacturers warranties typically cover parts only, not labor. That means you may still have to pay for technician time, service fees or installation costs when repairs are needed, unless you have separate labor coverage or an extended warranty.

Manufacturers warranties generally last from five to 10 years, depending on the part and the brand. For example, Trane offers a five-year warranty covering parts and the compressor for air conditioner and heat pump models. It also covers parts for five years and the heat exchanger for twenty years on furnace models. Carrier, on the other hand, offers a 10-year warranty for both parts and the compressor.

Registering is a good idea. Some HVAC companies offer extended warranties if you register the product within a certain time frame after purchase.

Home warranty

Home warranties often cover HVAC (heating, ventilation and air conditioning) systems. This coverage typically includes repairing or replacing components that fail due to normal wear and tear. Here’s what’s included with HVAC coverage under a home warranty:

• Heating systems, including furnaces, heat pumps and certain types of built-in wall heaters. Coverage generally extends to most mechanical components that affect the heating system's operation.
• Central air conditioning units, as well as ducted and some non-ducted wall air conditioning systems, are usually covered by a home warranty. Similar to heating systems, air conditioner warranty coverage typically includes essential components such as motors, compressors and thermostats.
• Ductwork that’s connected to your HVAC. It can cost $3,500 on average to replace your home’s ductwork, so some home warranties also cover the ductwork associated with HVAC systems, addressing leaks and other issues that affect the air distribution.

Installers warranty

Many HVAC installers offer warranties on their workmanship. The installation company can also call these warranties repair warranties or labor warranties. If the system fails due to improper installation or related issues, the installer will repair it at no additional cost.

The length of an installers warranty can vary, so be sure to check with your installer for details. Remember, this warranty strictly covers issues related to the quality of the installation and does not extend to problems originating from the manufacturing of the equipment itself.

Extended warranty

You can purchase an extended warranty from the manufacturer or a third party. It usually begins after the manufacturers warranty expires and can extend your appliance’s protection for years to come.

The coverage term of an extended warranty varies depending on the provider and the outlined terms of the contract, often adding five to 10 additional years of coverage. Extended warranties usually cover major components and sometimes labor. The price of an extended warranty can vary widely based on the extent of coverage and the HVAC system’s specifics.

Maintenance agreements

HVAC companies and installers offer service contracts to provide ongoing maintenance for your HVAC. While not warranties, they help prevent system failures through regular upkeep, which can indirectly extend the life of your system.

Maintenance agreements typically include inspections, cleaning, tuning and sometimes priority service and repair discounts. HVAC maintenance agreements are usually renewed annually.

Manufacturers warranties vs. home warranties

Both manufacturers warranties and home warranties provide valuable protections but cover different aspects and have distinct terms. If your HVAC system is still under the manufacturers warranty during the warranty period, it's usually best to rely on this coverage for defects or issues related to the equipment's manufacturing.

Once the manufacturers warranty expires, a home warranty can provide broader protection against the costs associated with aging equipment and general wear and tear.

Here's a breakdown of how they compare:

» COMPARE: Best Home Warranties for HVAC

HVAC warranties vs. homeowners insurance

HVAC warranties typically cover defects in the system, specific components, and sometimes wear and tear under home warranties.

In contrast, homeowners insurance covers sudden accidental damage from specific perils. An example would be storm damage that causes a surge, leading to system failure. It’s essential to review your insurance policy for any endorsements or exclusions related to HVAC claims.

• HVAC warranty coverage: Defects, specific parts, potential wear and tear.
• Homeowners insurance coverage: Sudden accidental damage from covered events.

What to look for in an HVAC warranty contract

Before you sign up for an HVAC warranty, review the contract carefully. Not all warranties offer the same protection, and some include hidden restrictions that could leave you paying out of pocket when you need repairs most. Here's what to check:

• Coverage limits and caps: Check whether the warranty caps how much it will pay per repair or per year. Some warranties have separate limits for parts and labor, while others set a maximum payout over the life of the contract.
• Exclusions and limitations: Review which parts or systems are not covered under the warranty. Many contracts exclude preexisting conditions, damage from improper installation or poor maintenance, and certain brands or unit ages.
• Required maintenance: Determine if you need to provide proof of annual tune-ups or other scheduled maintenance. Some warranties require maintenance by licensed technicians and may cancel your coverage if you miss appointments.
• Service fees and hidden costs: Find out what you'll pay out of pocket each time you file a claim. Most warranties charge service call fees or trip charges, and some add diagnostic fees on top. Check if emergency or after-hours service costs extra, and watch for renewal price increases after the first year.
• Claim process and contractor network: Learn whether you can choose your own HVAC contractor or must use providers from the warranty company's network. Ask how long claims take to approve and what happens if a claim is denied. Some warranties also limit how many claims you can file per year.
• Transferability: Check if you can transfer the warranty to a new owner if you sell your home. Transferable warranties can add value during a home sale, though some companies charge a transfer fee. This feature is especially important if you don't plan to stay in your home long-term.
• Contract length and cancellation: Review the initial contract term and find out if you can cancel without penalty if the warranty doesn't meet your needs or if you need to end coverage early.

Questions to ask a warranty provider

When you're comparing HVAC warranties, asking the right questions can reveal important details that aren't always clear in the contract. Here are key questions to ask before you sign up:

• What's the most I could receive for a single major repair, like a compressor replacement?
• Can you give me specific examples of what wouldn't be covered under this warranty?
• Will you cancel my coverage if I skip one maintenance visit?
• What will I pay out of pocket each time I file a claim?
• What percentage of claims are approved on the first submission?
• What's your cancellation policy, and will I get a prorated refund?

HVAC warranty costs

Most manufacturers warranties are built into the cost of the item, but for the other types of warranties, here’s what you can expect when it comes to costs:

• Home warranty: $450 to $600 per year
• HVAC maintenance agreement: $150 to $300 per year
• Extended warranty: Companies provide individual quotes, but the average is $25 to $50 per month or $300 to $600 per year
• Installers warranty: $100 to $300 per year

Pros and cons of HVAC warranties

The pros and cons of an HVAC warranty depend on which one you have, though some problems and benefits are universal.

How to register your HVAC warranty

Registering your HVAC warranty protects your investment and ensures you can access coverage when needed. Follow these steps to complete the process:

1. Gather required documents. You'll need your purchase receipt, installation invoice, model and serial numbers from your unit, and proof of professional installation.
2. Register within the deadline. Most manufacturers require registration within 60 to 90 days of installation. Missing this window could reduce your coverage from 10 years to just five years on parts.
3. Complete the online form. Visit the manufacturer's website and fill out the warranty registration form. Double-check that all model and serial numbers match your equipment exactly.
4. Save your confirmation. Print or save the registration confirmation email. Store it with your other warranty documents, installation paperwork and maintenance records in a safe place you can easily access when filing claims.

How to file an HVAC warranty claim

When your HVAC system breaks down, it’s best to file a warranty claim right away. The process may vary depending on whether you have a manufacturers warranty, home warranty or extended warranty, but it typically follows the same pattern.

Start by reviewing your warranty contract to confirm the problem is covered and note any required procedures. Contact your warranty provider as soon as possible. Most companies have 24/7 phone lines or online claim portals for faster service.

Here’s how to file a claim, step by step:

1. Gather your documentation. Have your warranty contract, proof of purchase, installation records, maintenance history and photos or videos of the problem ready before you call.
2. Call a technician. For manufacturer warranties, contact an authorized HVAC contractor from the approved network. For home warranties, the company will assign a technician. Keep records of all service appointments and repair attempts.
3. Submit your claim. Provide all required documentation to your warranty provider. Many companies allow online submissions, which can speed up approval. Note your claim number and follow-up date.
4. Track the timeline. Most warranty companies process claims within three to five business days. If repairs require preapproval, factor in extra time for the warranty company to review the technician's report.

What to do if your claim is denied

If your HVAC warranty claim gets denied, don't give up right away. Many denials result from incomplete documentation or misunderstandings about coverage, and you may be able to appeal the decision. Follow these steps:

1. Request a detailed explanation. Ask the warranty company to provide the specific reason for denial in writing, including which contract clause or exclusion applies. This helps you understand if the denial is valid or if there's room to challenge it.
2. Review your contract carefully. Compare the denial reason against your warranty terms. Look for any language that might support your claim or contradict the company's interpretation.
3. Gather additional evidence. If the denial cites lack of maintenance, collect service records proving regular upkeep. If it claims preexisting damage, get a second opinion from another licensed technician documenting when the problem started.
4. File a formal appeal. Submit a written appeal with supporting documentation within the timeframe specified in your contract, usually 30 to 60 days. Be specific about why you believe the claim should be covered.
5. Escalate if needed. If the appeal is denied, contact your state's insurance commissioner or consumer protection office. You can also consider filing a complaint with the Better Business Bureau or pursuing small claims court for valid claims that were wrongly denied.

HVAC warranty limitations and exclusions

No matter the type of warranty, all HVAC warranty contracts have exclusions and limitations, as well as a list of things that will void the warranty. Here are a few common exclusions:

• Damage that isn’t from normal wear and tear or from manufacturing defects
• Corrosion
• Chemical damage
• Acts of nature
• Service calls for maintenance
• Refrigerant recharge from leaks
• Cosmetic damage

Actions that can void the warranty include:

• Skipping annual tune-ups or improper maintenance
• DIY repairs
• Repairs by an unauthorized technician
• Using the item in a way that isn’t the intended use
• Buying the item secondhand (some warranties don’t transfer from one owner to another)

» LEARN: Does a Home Warranty Cover HVAC Repair?

How do I know if my HVAC is under warranty?

Don’t know if your HVAC has a warranty? Here are some ways to find out:

• Check your home warranty contract.
• Review past service records for your HVAC and contact the technician to ask about coverage details on previous repairs.
• Use the manufacturer’s warranty lookup tool. Most major HVAC brands offer an online lookup page where you can enter your unit’s model and serial number to check if coverage is active and when it expires.
• Call your installer for installation warranty information or check the contract.

After confirming your warranty, save or request documentation that confirms your coverage. This may include:

• Warranty status or verification page showing start and end dates
• Covered components or parts list
• Registration confirmation (if applicable)
• Claim instructions or authorized service provider details

FAQ

Bottom line

The types of HVAC warranties can significantly influence your budget for repairs. Manufacturer warranties typically cover defects in materials or workmanship and generally last five to 10 years at no additional cost, focusing mainly on critical components like compressors or heat exchangers.

On the other hand, home warranties, which you must purchase, cover the broader functionality of the HVAC system, including parts and labor for repairs due to normal wear and tear. Both types of warranties have their place in a comprehensive home care strategy. Adding a maintenance contract can also save you time when it comes to taking care of your unit.