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Home Furnace and Plumbing protection plans

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  • Mar 5th, 2021 1:24 am
[OP]
Newbie
Apr 14, 2007
71 posts
9 upvotes

Home Furnace and Plumbing protection plans

Hello,

Has anyone here used the the Home Furnace protection plan and/or Plumbing protection plans from Enercare or Reliance? A friend recommend signing up for these plans as currently enercare has a BOGO plan. I know that RFD in general don't like these HWT rental companies for HWT rentals but I wanted to hear if they are any good for these Furnace or Plumbing protection plans. These plans cost around $20 per month.
13 replies
Deal Addict
Jun 16, 2009
2585 posts
966 upvotes
Woodbridge
It totally depends upon the individual situation. Insurance is never "one size fits all". Do you have very old equipment that breaks down often? If yes then it may be well worth it.
In most cases, the insurer comes ahead of the game financially by providing "peace of mind".
If you don't use insurance for 4 years, it will be 1000$ gone in drain. You can put this money aside for rainy days/emergency repairs.
Without knowing the age, condition, and type of your equipment, it's difficult to give you better advice.

sallusworld wrote: Hello,

Has anyone here used the the Home Furnace protection plan and/or Plumbing protection plans from Enercare or Reliance? A friend recommend signing up for these plans as currently enercare has a BOGO plan. I know that RFD in general don't like these HWT rental companies for HWT rentals but I wanted to hear if they are any good for these Furnace or Plumbing protection plans. These plans cost around $20 per month.
HVAC Professional. Committed to customer, not brand.
Central Air Condition Group Buy-2021
Deal Addict
Jun 12, 2008
1184 posts
651 upvotes
Ripley
This is the exact same type of rip off. What is the value to you for a protection plan?

Does your “friend” get a referral credit? Cause I would get a new friend.

Learn some basic home maintenance off of YouTube for free.

I am so tired of people giving these crooks money.
Deal Expert
User avatar
Feb 11, 2007
16051 posts
17340 upvotes
Oakville
sallusworld wrote: Hello,

Has anyone here used the the Home Furnace protection plan and/or Plumbing protection plans from Enercare or Reliance? A friend recommend signing up for these plans as currently enercare has a BOGO plan. I know that RFD in general don't like these HWT rental companies for HWT rentals but I wanted to hear if they are any good for these Furnace or Plumbing protection plans. These plans cost around $20 per month.
Home protection plans are basically all bad deals at best, and scams at worst.
Deal Addict
Feb 10, 2006
2360 posts
361 upvotes
Kitchener
newlyborn wrote: It totally depends upon the individual situation. Insurance is never "one size fits all". Do you have very old equipment that breaks down often? If yes then it may be well worth it.
In most cases, the insurer comes ahead of the game financially by providing "peace of mind".
If you don't use insurance for 4 years, it will be 1000$ gone in drain. You can put this money aside for rainy days/emergency repairs.
Without knowing the age, condition, and type of your equipment, it's difficult to give you better advice.
+1
Deal Addict
Feb 10, 2006
2360 posts
361 upvotes
Kitchener
woof wrote: You should have read this thread:

Enercare and other plans
What does that thread show? That the OP has an old furnace, it wasn't working and called for service. The tech diagnosed the heat exchanger failed provided a quote for the repair or replace and let the customer decide.

If the heat exchanger is shot, and if he can afford it the unit should be replaced. How much money would you put in to an 18year old car when the engine is shot?
Deal Addict
Jan 28, 2014
3447 posts
668 upvotes
Toronto
We have the protection plans but do not EVER use the plumbing plan. I did ask about removing the plumbing plan based on the last 2 so-called plumbers who were here (we had to finally get in "real" plumbers) but it would have cost us more to drop the plumbing plan so we have just kept it but will not use it.

Other heating, air conditioning companies that have their own service people do farm out their plumbing plans to the same people that Enercare does. Also the service techs for the air conditioning and furnace repairs/service do work for Enercare - but the people who install the piping etc. and the furnaces do not - they are contracted out by Enercare. I should point out that at least last fall the service people worked directly for Enercare but that could change too.

There are a few heating/air conditioning companies that do have their own installation and service techs. We will be using them next go around - hopefully they will still be operating as per now. At the moment we do have an excellent (and honest) Enercare service tech who has been coming to the house for several years. I am always grateful when he calls and I hear his voice. I do ask for him but you never know these days.
Deal Fanatic
Mar 21, 2002
6413 posts
1078 upvotes
Double_J wrote: What does that thread show? That the OP has an old furnace, it wasn't working and called for service. The tech diagnosed the heat exchanger failed provided a quote for the repair or replace and let the customer decide.

If the heat exchanger is shot, and if he can afford it the unit should be replaced. How much money would you put in to an 18year old car when the engine is shot?
The point you missed is that they have a maintenance plan with Enercare which they have been paying for but the heat exchanger, probably the most important and most expensive part in any furnace was not covered by Enercare. What do they cover for what you pay them? Nothing important apparently.

Since you brought up a comparison to an 18 year old car I would ask if you had an extended warranty on that car that you were paying for and the engine went would you be happy if the warranty company told you, sorry, but engines aren't covered?????
Deal Expert
User avatar
Feb 8, 2014
19782 posts
7253 upvotes
Socially Distanced
newlyborn wrote: It totally depends upon the individual situation. Insurance is never "one size fits all". Do you have very old equipment that breaks down often? If yes then it may be well worth it.
In most cases, the insurer comes ahead of the game financially by providing "peace of mind".
If you don't use insurance for 4 years, it will be 1000$ gone in drain. You can put this money aside for rainy days/emergency repairs.
Without knowing the age, condition, and type of your equipment, it's difficult to give you better advice.

This.

Also OP if you are worried about cost create your own "plan". Put $20/m from your chequing account (preferably as soon as you get your paycheck) into a high interest savings account and when you need repairs someday draw from this self funded plan. By the time you are ready for replacement you will have a nice down payment of even a paid for new appliance.
Use this new savings account only for your furnace and plumbing.
Seed it with some cash that you avoid paying until that many months have passed at first just in case your equipment is about to die this year.
In fact in Rand McNally they wear hats on their feet and hamburders eat people
Deal Addict
Feb 10, 2006
2360 posts
361 upvotes
Kitchener
woof wrote: The point you missed is that they have a maintenance plan with Enercare which they have been paying for but the heat exchanger, probably the most important and most expensive part in any furnace was not covered by Enercare. What do they cover for what you pay them? Nothing important apparently.

Since you brought up a comparison to an 18 year old car I would ask if you had an extended warranty on that car that you were paying for and the engine went would you be happy if the warranty company told you, sorry, but engines aren't covered?????
I wouldn't expect $20 a month to cover everything possible. As previously mentioned (by a technician) there are many other parts that can fail, and are expensive. From there website here are the parts covered.

Furnaces The following is a complete list of the furnace parts covered in your Plan: Blower/Blower Components Condensate Pumps Door Switch Electric Ignition System Fan Control Fan Motor Flame Spreader Fuel or Air Flappers Furnace Low Voltage Circuit Fuse Gas Appliance Regulator Gas Burner and Orifices Gas Control Valve Heating Circuit Transformer Boilers Hot Surface Igniter Ignition Runner Bar Pilot Burner Pilot Tubing Pressure Relief Valve Pulley and Belt Relay Roll Out Switch Summer/Winter Switch Thermocouple/Generator Vent System Pressure Switch/Tubing Ventor or Motor Assembly

As for the car comparison and extended coverage... I would be upset if they told me something was covered in writing and they didn't do it. I wouldn't be upset if my extended coverage guaranteed against rust and the engine failed. I think it's important for people to understand what's actually covered and not blame others for not knowing.
Deal Expert
User avatar
Feb 8, 2014
19782 posts
7253 upvotes
Socially Distanced
Double_J wrote: I wouldn't expect $20 a month to cover everything possible. As previously mentioned (by a technician) there are many other parts that can fail, and are expensive. From there website here are the parts covered.

Furnaces The following is a complete list of the furnace parts covered in your Plan: Blower/Blower Components Condensate Pumps Door Switch Electric Ignition System Fan Control Fan Motor Flame Spreader Fuel or Air Flappers Furnace Low Voltage Circuit Fuse Gas Appliance Regulator Gas Burner and Orifices Gas Control Valve Heating Circuit Transformer Boilers Hot Surface Igniter Ignition Runner Bar Pilot Burner Pilot Tubing Pressure Relief Valve Pulley and Belt Relay Roll Out Switch Summer/Winter Switch Thermocouple/Generator Vent System Pressure Switch/Tubing Ventor or Motor Assembly

As for the car comparison and extended coverage... I would be upset if they told me something was covered in writing and they didn't do it. I wouldn't be upset if my extended coverage guaranteed against rust and the engine failed. I think it's important for people to understand what's actually covered and not blame others for not knowing.
Lets say a furnace lasts 20 years. Some less, some more. That is $4800 $20/m (and no interest). This will pay for repairs during its lifetime.
Plumbing does not need repair that often, i would guess i spend maybe $100/year averaged out over the last few decades (being generous).

The point of insurance is that it pays for losses plus a profit margin for the insurer (and dividends for investors). In the case of car and house insurance it pays for losses larger then one individual will typically experience (car accidents involving death or disability or house burning down happen but not to everyone). This pooling the risk (plus profits plus dividends).
For furnace and plumbing i would self insure becasue you will come out ahead. For house and car unless you have six figures to spare you should get actual insurance (and for car its required by law).
The only wrinkle for the furnace/plumbing is that an emergency might happen relativity soon before the account is built up. But in the end you would still end up ahead because repairs cost less than the premiums over equipment life. And if you can DIY simple repairs (like igniter or flame sensor) then you pocket the labour costs.

Oh and the insurance rates will typically go up with inflation an so should your self insurance savings account contributions.
In fact in Rand McNally they wear hats on their feet and hamburders eat people
Deal Addict
Feb 10, 2006
2360 posts
361 upvotes
Kitchener
Quentin5 wrote: Lets say a furnace lasts 20 years. Some less, some more. That is $4800 $20/m (and no interest). This will pay for repairs during its lifetime.
Plumbing does not need repair that often, i would guess i spend maybe $100/year averaged out over the last few decades (being generous).

The point of insurance is that it pays for losses plus a profit margin for the insurer (and dividends for investors). In the case of car and house insurance it pays for losses larger then one individual will typically experience (car accidents involving death or disability or house burning down happen but not to everyone). This pooling the risk (plus profits plus dividends).
For furnace and plumbing i would self insure becasue you will come out ahead. For house and car unless you have six figures to spare you should get actual insurance (and for car its required by law).
The only wrinkle for the furnace/plumbing is that an emergency might happen relativity soon before the account is built up. But in the end you would still end up ahead because repairs cost less than the premiums over equipment life. And if you can DIY simple repairs (like igniter or flame sensor) then you pocket the labour costs.

Oh and the insurance rates will typically go up with inflation an so should your self insurance savings account contributions.
Your example of 20 years x 12 months times amount per month assumes you are starting the plan at day one. Personally I would recommend it above 10yrs or so.

But, I don't think there is any doubt that the company providing the insurance comes out ahead as an aggregate. If it didn't they would not be in business. I believe their is a time and place for the insurance plans.

My point of replying to above was to simply understand why he was so against the concept. Turns out he believes it should provide 100% coverage. If that was the case people could keep a furnace going till it rusts to nothing. Or perhaps the insurer should pay to replace it at that time too???
Newbie
Feb 24, 2021
7 posts
1 upvote
Thank you so much for the information. Even I was searching for the details, and the information was helpful. Now I can make a decision appropriately.

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