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Buying a new furnace- Extended Labour Warranty Worth it?

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  • Jan 12th, 2020 9:20 pm
[OP]
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Apr 4, 2017
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Buying a new furnace- Extended Labour Warranty Worth it?

I'm buying a new furnace and was wondering if I should purchase the 9 year extended labour warranty for about $450 (from 1 year to 10 year labour warranty).

The company I have chosen has been around for 30+ years, so I'm not too worried about them running out of business in the next 10 years.
Last edited by IHavocI on Jan 7th, 2020 12:53 pm, edited 1 time in total.
18 replies
Deal Expert
Mar 23, 2009
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Toronto
I typically haven't had a problem with furnaces in the first 10 years. YMMV.
Jr. Member
Nov 2, 2015
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Oakville
IHavocI wrote: I'm buying a new furnace and was wondering if I should purchase the 9 year extended labour warranty for about $400 from 1 year to 10 year labour warranty).

The company I have chosen has been around for 30+ years, so I'm not too worried about them running out of business in the next 10 years.
It's a bit of a gamble at that point. Realistically you shouldn't see anything serious going wrong with the equipment within the first 10 years. If you need to have a technician out for a clogged drain line or a dirty flame sensor then you'll start wishing you took the labor warranty. If you have maintenance done to the equipment once every 2-3 years things like that are taken care of during the maintenance in which case prevents future failure. You could even do those things yourself if you're handy. It's really up to you if you want peace of mind.
[OP]
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Apr 4, 2017
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JivesHVAC wrote: It's a bit of a gamble at that point. Realistically you shouldn't see anything serious going wrong with the equipment within the first 10 years. If you need to have a technician out for a clogged drain line or a dirty flame sensor then you'll start wishing you took the labor warranty. If you have maintenance done to the equipment once every 2-3 years things like that are taken care of during the maintenance in which case prevents future failure. You could even do those things yourself if you're handy. It's really up to you if you want peace of mind.

Thank you for the thorough response.

I had another question, my house is around 2400 sq ft and was built in 1987. I live in the Greater Toronto Area. Should a 65k BTU unit be good for my home? Or should should I go for the 80k BTU?
Jr. Member
Nov 2, 2015
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Oakville
IHavocI wrote: Thank you for the thorough response.

I had another question, my house is around 2400 sq ft and was built in 1987. I live in the Greater Toronto Area. Should a 65k BTU unit be good for my home? Or should should I go for the 80k BTU?
Are you a detached home? Have there been any major upgrades line windows/insulation etc. Is that square footage without the basement? On paper I would go with the 80k especially if you're going 2 stage. Based on the size and age of the home I'd likely quote the 80
[OP]
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JivesHVAC wrote: Are you a detached home? Have there been any major upgrades line windows/insulation etc. Is that square footage without the basement? On paper I would go with the 80k especially if you're going 2 stage. Based on the size and age of the home I'd likely quote the 80
We upgraded the windows. I'm not sure if the square footage includes the basement. That was the footage given to us when we bought the house.
Deal Addict
Nov 17, 2012
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I had a new mid-efficiency Lennox installed in 2005 and (knocking wood furiously) never had a problem. No annual maintenance, nothing. Just changed the filter monthly.
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Nov 2, 2015
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torontotim wrote: I had a new mid-efficiency Lennox installed in 2005 and (knocking wood furiously) never had a problem. No annual maintenance, nothing. Just changed the filter monthly.
Mid efficiencies are much more forgiving when it comes to breakdowns or problems. The main issues we encounter with high efficiency furnaces is water damage which mids don't have. That can be detrimental to a furnace
Deal Addict
Nov 17, 2012
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JivesHVAC wrote: Mid efficiencies are much more forgiving when it comes to breakdowns or problems. The main issues we encounter with high efficiency furnaces is water damage which mids don't have. That can be detrimental to a furnace
Glad I live in a home that can't have a high-efficiency furnace (110 year old solid brick semi - nowhere to run a vent out for high efficiency furnace or water heater) :)
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Nov 2, 2015
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torontotim wrote: Glad I live in a home that can't have a high-efficiency furnace (110 year old solid brick semi - nowhere to run a vent out for high efficiency furnace or water heater) :)
You are the 1% ;)
Deal Addict
Jun 16, 2009
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What did your preferred contarctor suggested ? There are lot of factors to determine the size.
Does your house has lot of windows and or atrium ? Which direction does it face ? Size of ductwork .....
Since your home was built in 87 and we many factors are unknown, I would stick to 80K ( especially if your existing furnace is 80 K or more and you didnt had short cycle issues )
IHavocI wrote: Thank you for the thorough response.

I had another question, my house is around 2400 sq ft and was built in 1987. I live in the Greater Toronto Area. Should a 65k BTU unit be good for my home? Or should should I go for the 80k BTU?
HVAC Professional. Committed to customer, not brand.
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Mar 13, 2004
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What brand furnace are you looking at?
When I bought mine recently it came with 10 year Parts warranty and I bought extra to have 10 year labor warranty from the Manufacture. This way if the company goes out of business I'm covered as i can contact any company to come and repair that works with Goodman.
0_o
<_<
>_>
[OP]
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Apr 4, 2017
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All 3 companies recommended the 80k, and my current model is an 80k.

Thank you for the responses.
Member
Oct 19, 2009
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IHavocI wrote: I'm buying a new furnace and was wondering if I should purchase the 9 year extended labour warranty for about $450 (from 1 year to 10 year labour warranty).

The company I have chosen has been around for 30+ years, so I'm not too worried about them running out of business in the next 10 years.
I am trying to make up my mind about the same thing. When my furnace recently stopped, I learned how high the service rates had become. $180/hr after regular business hours!

I'm asking questions before I commit to buying. For example, your $450 might only get you service during business hours. You might have to commit to an annual checkup at extra cost. You might have to pay a diagnostic visit fee before your warranty kicks in. Some contractors/companies keep the money, others sell you an insurance policy with a 3rd party (good if your contractor goes out of business).

As there are commitments on both sides, I tend to think of these agreements as contracts. Get it in writing and read the conditions before buying. Hopefully the HVAC guys on the forum will provide some information.
Deal Expert
Mar 23, 2009
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IHavocI wrote: All 3 companies recommended the 80k, and my current model is an 80k.
I'm curious, did anyone do a formal load calculation?

I am not a HVAC person, but FWIW, let me tell you a bit about my setup, and furnace sizes. My house is big, and built in two parts, with two separate furnaces. GTA weather.

For the older part of the house it's moderate leaky, according to the assessment I had. It's 1800 square feet plus roughly 800 square feet in the basement, and cathedral ceilings on the second floor. Lots of windows. After a formal HVAC load calculation and some adjustments to the ducting I went from a 100000 BTU single-stage 80% efficiency furnace (so 80000 BTU max output) to a 70000 variable speed high efficiency furnace (so 66000 BTU max output), and it actually works much, much better than before. Parts of the basement are still a bit of a struggle at times because the ducting isn't ideal for it, but it's still better in the basement than it was before, and heating elsewhere in the house is more consistent too. Also, I don't think I ever hear the furnace come on actually, since it's always running at very low capacity.

On the other side of the house it's not as leaky (built later), ~2000 square feet albeit with about 300 square feet of a converted garage after the fact, so ducting to it is not very good. Cathedral ceilings on second floor. Lots of windows. There is no basement but it has around 400 square feet of heated crawl space, 4 feet high. So let's just call it effectively around 2000 square feet total. It's running a 2-stage variable speed high efficiency 60000 BTU furnace (so 58000 BTU max output) and it's always toasty warm, again with the furnace usually running at low capacity.

I know nothing about your house (and truthfully very little about HVAC stuff either), but I'm wondering if they actually did a load calculation to get that 80000 BTU number, or if they just guesstimated.

In the first part of my house, it has a 3 ton AC and works well. In the second part of the house it didn't come with an AC. The HVAC guy installed a 3.5 ton (without doing the calc) but unfortunately that's too big, as it slightly short cycles and humidity tends to be higher than I'd like in the summer. In the first part of the house with the properly sized AC, humidity runs at around 45-50%. In the second part of the house, with the big AC, humidity runs at round 55-60%, at the same temp setting.

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