Is an HVAC extended warranty worth it?

For most people: No. You'll pay $2,000-4,000 over 5 years in premiums + service fees. Average HVAC repair cost is $300-800. Even with one major failure ($3,000), you'd break even or lose money after coverage caps. Better options: Build $5,000 emergency fund or get equipment breakdown insurance ($25-75/year). Only worth it if you have multiple aging systems AND can't afford repairs.

Do HVAC extended warranties cover heat pumps?

Sometimes, but often excluded or require premium plans. Many HVAC warranties only cover traditional furnace + AC, not dual-purpose heat pumps. Always verify heat pump coverage before buying. If heat pumps aren't covered, equipment breakdown insurance ($25-75/year) is a better alternative that explicitly includes heat pumps.

What's better: HVAC warranty or equipment breakdown insurance?

Equipment breakdown insurance is better for single high-value systems (heat pumps, solar). It costs $25-75/year (vs $400-800), you choose your contractor (vs assigned network), and coverage limits are higher ($25,000+ vs $1,500-3,000). HVAC warranties are better if you need coverage for multiple aging appliances beyond just HVAC.

When should I buy an HVAC extended warranty?

Wait until your manufacturer warranty expires (usually 5-10 years after installation). Don't buy extended warranty for brand new systems - you're paying for coverage you already have. Best time: System is 8-12 years old (past manufacturer warranty but before major failures start). Worst time: System is 15+ years old (warranties often exclude very old equipment or charge higher premiums).

Can I cancel my HVAC warranty if I don't use it?

Yes, most allow cancellation with prorated refund if you haven't filed claims. Typically charged $25-75 cancellation fee. If you've filed claims, you usually can't cancel mid-contract. Better strategy: Don't renew when annual term ends. Read cancellation policy carefully before buying - some companies make it difficult.

Do HVAC warranties cover lack of maintenance?

No. All HVAC warranties require proof of annual professional maintenance. If you skipped maintenance and your system fails, warranty can deny the claim. Keep all service records. Some warranties include annual maintenance in premium (better value). Without maintenance records, expect claim denials - this is the #1 reason warranty companies reject claims.

What's the average payout from an HVAC warranty claim?

According to industry data, average HVAC warranty claim payout is $800-1,200. After deducting your service call fee ($75-125), net benefit is $700-1,100 per claim. If you pay $600/year in premiums, you need at least one claim per year to break even. Studies show 40% of warranty buyers never file a claim, and 30% only file once over 5 years - meaning most people lose money.

HVAC Extended Warranty: Are They Worth It? Best Options (2026)

Quick Answer

HVAC extended warranties cost $400-800/year + $75-125 per service call. They cover repairs after manufacturer warranties expire (typically 5-10 years). Worth it if: You have multiple aging HVAC systems (10+ years), can't afford $3,000-$5,000 emergency repairs, or want convenience of one-call service. NOT worth it if: Equipment is under manufacturer warranty, you have emergency savings, or you can get equipment breakdown insurance ($25-75/year) instead. Most people are better off self-insuring or using equipment breakdown coverage.

HVAC systems are expensive to repair and replace. A new furnace costs $3,000-$7,000. Central AC replacement runs $4,000-$8,000. Heat pumps cost $8,000-$20,000. HVAC extended warranties promise to cover these costs - but do they actually save you money?

This guide breaks down exactly what HVAC extended warranties cover, how much they cost, real claim examples, and whether you're better off self-insuring or using cheaper alternatives.

🛡️

HVAC Equipment Coverage

$300-600/year • Up to $5,000-20,000 coverage

Breakdown coverage, extended warranty, and repair protection.

Get Coverage Options →

What Is an HVAC Extended Warranty?

An HVAC extended warranty (also called a "service contract" or "maintenance plan") is a service agreement that covers repair or replacement of your heating and cooling systems after the manufacturer warranty expires.

What's Typically Covered

• Central air conditioning systems
• Furnaces (gas, electric, oil)
• Boilers
• Thermostats and controls
• Ductwork (sometimes)
• Repair parts and labor
• Emergency service calls

Usually NOT Covered

• Heat pumps (often excluded or extra cost)
• Pre-existing conditions
• Lack of maintenance (missed annual service)
• Modifications or DIY repairs
• Improper installation
• Ductless mini-splits (sometimes)
• Zoning systems (often extra)

HVAC Extended Warranty Costs

Cost Type	Typical Range	Notes
Annual Premium	$400 - $800	Basic coverage for single HVAC system
Service Call Fee	$75 - $125	Per visit (every time technician comes out)
Coverage Cap	$1,500 - $3,000	Maximum payout per item/year
5-Year Total Cost	$2,000 - $4,000	Not including service call fees

Reality check: If you make 2-3 service calls per year, you'll pay $600 (premium) + $225 (3 × $75 service fees) = $825/year. Over 5 years: $4,125 in premiums and fees alone, before any actual repairs.

HVAC Extended Warranty vs Equipment Breakdown Coverage

Feature	HVAC Extended Warranty	Equipment Breakdown Coverage
Annual Cost	$400 - $800	$25 - $75
Per-Claim Fee	$75 - $125 per visit	Insurance deductible (once per claim)
Choose Contractor?	No - must use warranty network	Yes - any licensed contractor
What's Covered	Breakdowns and wear/tear	Sudden mechanical/electrical failures
Covers Heat Pumps?	Often excluded	Yes, included
Coverage Limits	$1,500 - $3,000 per item	$25,000 - $100,000+
Best For	Multiple aging appliances + HVAC	High-value single systems

For most people, equipment breakdown coverage is better:

• 10-15x cheaper: $50/year vs $600/year
• Choose your contractor: Use your trusted HVAC company
• Higher limits: Covers full replacement cost
• No service fees: Just your insurance deductible

Learn more: Complete equipment breakdown coverage guide

When HVAC Extended Warranties ARE Worth It

1. You Have Multiple Aging Systems

Scenario: 12-year-old furnace, 15-year-old central AC, 10-year-old water heater, 8-year-old appliances.

Why it makes sense: Multiple systems likely to fail soon. Home warranty covering everything = $600/year might save you if 2-3 items break annually.

2. You Can't Afford $3,000-$5,000 Emergency Repairs

If your furnace dies in winter and you don't have savings for replacement, a warranty provides peace of mind for predictable monthly costs.

3. You Value Convenience Over Cost

One-call service (warranty handles everything) vs. finding contractors yourself. Some people prefer this even if it costs more.

When to Skip HVAC Extended Warranties

○

Your HVAC is under manufacturer warranty (5-10 years)

Don't pay for extended warranty until manufacturer warranty expires.

○

You have emergency savings ($5,000-10,000+)

Self-insurance is cheaper. Put $600/year in savings instead of warranty premiums.

○

Your system is brand new (less than 5 years)

Statistical failure rate is very low. Save your money.

○

You want to choose your own contractors

Warranties force you to use their network. Consider equipment breakdown coverage instead.

Calculate: Warranty vs Self-Insurance

See if an HVAC extended warranty saves you money based on your system age and repair history.

Best HVAC Extended Warranty Companies

If you decide a warranty makes sense, here are the most reputable companies:

American Home Shield

Cost: $500-800/year + $100 service fee
Coverage: HVAC, appliances, plumbing, electrical
Pros: Largest network, 24/7 support
Cons: High service fees, claim disputes common

Choice Home Warranty

Cost: $400-700/year + $75 service fee
Coverage: HVAC, appliances, systems
Pros: Lower cost, faster claims
Cons: Smaller contractor network

Cinch Home Services

Cost: $450-750/year + $75 service fee
Coverage: Unlimited service calls
Pros: No caps on claims, good customer service
Cons: Not available in all states

Better Alternatives to HVAC Extended Warranties

For most homeowners, equipment breakdown insurance ($25-75/year) or self-insurance (emergency fund) are better financial decisions than HVAC extended warranties. Lower costs, more flexibility, and often better coverage.

Learn About Equipment Breakdown Coverage

Continue Reading

Insurance

Home Warranty vs Homeowners Insurance

Sources & Methodology:

Warranty costs from American Home Shield, Choice Home Warranty, Cinch (December 2024)
Coverage data from warranty company policy documents and terms of service
Consumer claim data from warranty company annual reports and industry surveys
Equipment breakdown coverage comparison from insurance industry data
HVAC repair costs from contractor surveys and industry averages

HVAC Extended Warranty: Worth It or Waste of Money?