Hi:

I have first American home warranty. Recently my downstair AC unit was blowing hot air and the contractor thy sent said the unit needed replacement (it is about16 yrs old). First American said they would replace it but will be subject to following exclusions (they said it is excluded per contract):

Indoor coil
$195 disposal of Freon
$95 disposal of evaporative coil
$250 Easy Trap (CODE)

Condenser
$125 condenser pad
$99 Locking CAPS (CODE)
$95 disposal of condenser
$189 Support feet for condenser
$225 condenser electrical modification

I do not know anything about AC. My question is are these part of the AC? Also, do the price look reasonable? Finally what type of questions I need to ask them if I decide to go ahead with them?

Thank you very much.

If I were you I would get an FREE estimate from 3 different local sources about the cost of a new AC/Furnace system, and compare it to what the current contractor is offering. How old is your furnace system?

I wouldn't pay anyone a dime for DISPOSAL or hauling away my old stuff if they were doing any fixing of it. Regardless of needs you should have 3 estimates to compare what they offer and what others offer. In short the extra fees are outrageous!

What are they charging you for the work that's included in their contract? What's the WARRANTY?

Hi Talaniman:

Thanks for your response. The contract has some exclusions but since I am not familiar with the terms, I cannot determine if these are excluded items but my gut feeling tells me they should not be. I am attaching two pages from the contract that has some language about exclusions and limitations. Please do not feel any obligation to read the pages. I wish I were little bit more knowledgeable to figure out if their noted items are really excluded per the contract.

Thanks again for your response.

That's typical of alleged "Warranty" programs. Condenser pad is $50 or less at HD. They charge you to dispose and take to a recycle place and sell it. EZ traps are about $60-75. They don't dispose of the Freon, they clean it, save it and reuse it when needed. It is probably R22.
I have never had a warranty program except to sell a house. Then I didn't care what would be charged.

Google search the items and you will see what they are and the company cost to replace them or perform a service for.

Indoor coil
$195 disposal of Freon... To take a recharge tank back with them?
$95 disposal of evaporative coil... to take a replaced coil away?
$250 Easy Trap (CODE)... to replace a $20/30 dollar part? PART #: EZT626 - TRAP/OVERFLOW COMBO PACK (http://www.hvacpartsource.com/S1_EZT626_TRAP_OVERFLOW_COMBO_PACK_p/s1-ezt626.htm)

Condenser
$125 condenser pad
$99 Locking CAPS (CODE)... NEVER NEEDED ONE!
$95 disposal of condenser... Another unnecessary charge for hauling old parts away.
$189 Support feet for condenser...
$225 condenser electrical modification

As MA0641 said they recycle most stuff anyway. How much is this EXTENDED(?) Warranty. Save your money for repairs as needed.

Thanks guys. I pay about $50/mo for the warranty. So far, I think I am above the breakeven point. They typically fixed the smaller items (with the exception of some questionable time frame, they pretty much replaced my washer and dryer back to back). Aside from money, the reason I carry it at least I don't need to worry about contacting few folks, getting quotes, taking time off for all these etc. And not to mention I have zero idea about all these. What I am confused why these should be excluded if these are considered 'AC component'. Any thoughts?

Thanks again.

Extended warranties create extra revenue streams for the company. If it didn't make money you can bet they wouldn't do it. You pay for peace of mind and convenience. $600 bucks ain't bad on it's face a year, it's those uncovered extras that's a deal breaker. Much like a hundred dollar oil change for your car.