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I have a relatively old gas burner that we decided not to upgrade when we built a 2nd story last year (budget). The general contractor said we'd get a few more years out of it but the plumber said it may be only through the summer that has just passed. While the thing seems to still be running fine early this winter, I was wondering if it's a good idea to get a service contract on it - if it even exists - I was told they do. But I called LIPA (power authority) and they mentioned they don't do that themselves. Would a service contract even be beneficial, because if the thing fails (was told they're simplistic by design), I'm wondering what a guy can do other than replace the whole thing for about $5k anyway.
The value of having a "service contract" on older heating plants is MOSTLY to the contractor -- you are locking ONE firm in for service calls. If the cost of PARTS from that firm is higher than other firms you are essentially signing up to be "worked over"...
I would simply budget for a new unit. With a little smart shopping and a firm that is hungry to cut a deal you can often save half off the list price.
I agree, the service contract mainly benefits the contractor. Contractor love them, guaranteed income. My Geothermal system contractor wanted to charge me $200 a year for a service contract where they came out once a year to check the unit and priority service in the event of an emergency. The problem I have with this is a new system shouldn't require maintenance for several years, other then replacing the air filters every 3 months. I say save you money, and call someone if your system fails one cold night, rather than be locked into a service contract.
Most HVAC Service Contracts say we will come out a few times a year, inspect, clean, check, replace filters, etc. They do not say if the system fails/stops operating/need repair/needs parts/needs recharging (AC only), etc. we will repair and/or replace at no charge under the Service Contract.
[quote=rh71;22046022]Would a service contract even be beneficial, because if the thing fails (was told they're simplistic by design), I'm wondering what a guy can do other than replace the whole thing for about $5k anyway.quote]Assuming it's a hot water boiler, most of the parts are generic and can be replaced. If the cast iron core develops a leak, time for a new boiler.
As previously said, the service contract only benefits the providor. Start saving for a new system and shop around to get the best price. It will be cheaper and better to pay for a new system than to hope a service contract will nurse the system along.
Would a service contract even be beneficial, because if the thing fails (was told they're simplistic by design), I'm wondering what a guy can do other than replace the whole thing for about $5k anyway...
Anything can be fixed... that said, it all depends on if parts are available. For the mission critical servers we have at the FAA, we have 4 hour response time, but if they don't have the parts, best they can do and stand around and say yup, it's broke. The same would apply to a HVAC tech, if something fails, emergency service isn't going to help much if they have to wait for the supply store to open to get parts.
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