I had a high efficiency G32V Lennox furnace installed about 7 years ago. After the manufacturer's warranty expired with the installing company I did not signup for any yearly HVAC insurance plan. What are people's thoughts re such plans? Of course Enbridge/Direct have such offerings.

If they didn't make money on them they wouldn't be offering the service. That being said, if your furnace dies and it's 40 below you may have a hard time finding someone to help you in a timely fashion.

I currently don't have a plan because i) I've got a new home / new HVAC and ii) I've got a back-up source of heat should the main one go down.

I guess it comes down to what you are comfortable with.

if your furnace dies and it's 40 below you may have a hard time finding someone to help you in a timely fashion.Even if you have a plan, you may have a long wait. AND..you will feel obligated to wait for that company because you have the plan.

But one nice thing about the plan is that is does usually include an annual maintenance visit which can be good as long as you have a knowledgable tech.

I had the plan for a couple of years once my furnace turned about 10. The yearly rates went up so much - doubled in a few years, that I cancelled. As with all extended warranties, it's a way for them to make money and for people to purchase insurance. I prefer to "self insure" leaving the money in the bank and paying for any repairs as they come along.

http://www.digitalhome.ca/forum/showthread.php?t=17872

Also, be very careful what they cover. For example, a simple furnace plan will cover a furnace, but not the AC and not the elecronic air cleaner (ESP) if you have one. Sometimes there are even limits on "complex" furnaces...

I have a gas fireplace in the basement that I can use for backup and I also have a wood fireplace on the main floor.

But one nice thing about the plan is that is does usually include an annual maintenance visit which can be good as long as you have a knowledgable tech.

And thers's the rub. More often than not I have had lazy or not knowledgeable techs that come for the annual cleaning.

But with my furnace fan running 24/7 (I have a good non electronic air cleaner) the cost to replace only the fan would more than pay for the plan.

I'm 100% with 57 on the whole "self-insure" concept. I'm also a huge DIYer, so I'll always take a crack at fixing something myself first. I've easily saved thousands of dollars on service calls.

What are people's thoughts re such plans?

Nope, Nope, Nope. These are extremely overpriced forms of insurance that net these companies a LOT of money.

If you are a good saver then set that money aside every month and you'll be much better off in the future.

I very very seldom buy insurance, but I did buy insurance on my furnace. I have Carrier Infinity furnace that has manufacturer waranty 5 years. I was offered insurance for additional 7 years for about 500$. I dediced that is a good deal. Normally they charge closer to 150$ a year for insurance. I figured DC motor replacement alone is close to 1000$.
So I would say decision to buy or not to buy also depends how much this insurance cost.

I figured DC motor replacement alone is close to 1000$.


That's the part that I think is worth insuring. As I said my fan runs 24/7.

But one nice thing about the plan is that is does usually include an annual maintenance visit.

So do you noninsurers have someone come in to do an annual maintenance visit on your furnace?

The whole thing strikes me as a scam. Furnaces and boilers are pretty reliable and cheap to fix (unless you buy some super high efficiency model). Plus you're locking into a specific service company for a long time.

I don't get my boiler professionally checked. It's easy for a DIY type to check if it's working properly and if something's not right then I call the service tech.

When I bought my current boiler 8 years ago I was given a choice: a regular boiler (80% efficient) that was cheap to fix or a high efficiency boiler (85%) with expensive parts.

I had a "protection plan" which got me two annual cleanings / inspections, component replacement and priority service should things go wrong.

One day this February the furnace just didn't sound right. I had a look myself but didn't see anything amiss so I called for service just to be safe. It turned out that the fire box was cracked (the furnace was 12 years old).

The fire box was not covered by my protection plan but I got lucky and the part had a lifetime warranty from the manufacturer (interesting to note the new one is only guaranteed for a year).

Priority service? Try 7 days with no heat to get a part which was confirmed in stock at a location in Mississauga the very day the technician came to my house. I offered to pick it up myself to expedite things or have it shipped quicker at my expense but was told "Not allowed".

To add insult to injury, each time I called to ask about the parts whereabouts I was told a new furnace could be installed that day if I wanted. :rolleyes:

The whole thing strikes me as a scam. Furnaces and boilers are pretty reliable and cheap to fix (unless you buy some super high efficiency model).

When I bought my current boiler 8 years ago I was given a choice: a regular boiler (80% efficient) that was cheap to fix or a high efficiency boiler (85%) with expensive parts.

I would imagine that "my" high efficiency (94%) Lennox G32V has lots of (expensive) electronics.

I'm an HVAC TECH with Direct Energy. (Let me have it :) )

PS Direct Energy is not Enbridge and Enbridge does not do in home service they are you Gas Utility. Direct Energy is owned by Centrica who purchased the old home services portion of Enbridge..

For every bad story there are 1000 good stories that no one ever heres about.

I work out of Ottawa and we have so very well trained techs. With the ability to service and repair all major brands..

IS the parts protection plan a rip off? I dont feel it is, at 99$ an hour to knock on the door and diagnose a problem plus parts and labour. An issurance plan is a good idea. We deal with prepriatory parts on my major brands meaning the main board on brand XYZ only fits model 123456 and nothing else so you have an inflated cost from the manufacture. So its easy to see a 300-600$ service call on a furnace these days..

FYI Almost all high effeciency furnaces have lifetime heat exchanger warranties.(you pay the labour) This is to the original owner. Second owner gets the remainder of 20 years. Builder model units Beware some only have 10-15year heatexchanger warranty..

Insururance=everyone hates paying for it but are sure glad they had it when they need to make a claim.

One thing to remember. A furnace in Canada is a nessasity. Its not a luxury like a Computer or IPOD or LCD or PLAMA or lawnmower or swimming pool. All common nice things to have that many will DIY repair. Thats fine. But your 5000-6000$ heating system is not an item you can just descide to fix on your own at -30C when it breaks down. ISsues such as understanding how they work, having proper diagnostic tools, having access to parts whole salers mean you risk freezing your family over a 120-150$ insurance plan that you will enevitably spend twice or three times that amount once u factor in your personal time and price of parts at retail prices will cost you..... LEnnox doesnt take returns on main circuit boards if figuer out you where wrong when u get it home.

There is also the safty issues to consider with DIY furnace repairs. 120volts circuits, natural gas, carbon monoxided....

I said my bit. I fix em insured or not i dont really care. Well actually i prefure a plan customer because no matter what the bill total is i never have the awkward feeling you get when its time to ask for payment.

Feel free to pick my brain on heating issues or your direct energy plans.

OK, I've owned houses with furnaces for over 50 house-years (including rental properties). Had I been purchasing insurance that whole time, I would have spent roughly $10,000+ Net present value on insurance. I've spent much less than $1000 on repairs during that time.

Insurance may be a good thing for people who can't keep money in the bank to cover a repair, however, if you can keep money in the bank, then insurance is only a good deal for the insurer - after all, they're the ones making the money - if they weren't making money, they would not offer insurance - no one is in business to lose money and warranties are always great money makers for the insurers.

Over your lifetime, extended warranties on the vast majority of items cost more than repairs do - they have to. Granted, when you look only at 1 or 2 years, you may have to fork out some money for repairs, however, when you look at 50+ years you will fork out less paying for your repairs than on insurance.

Insurance is only "necessary" on items like cars and houses, where the vast majority of people would not be able to pay for a catastrophic loss. Even on those, I have increased my deductables to very high levels - thousands of dollars - because I save hundreds of dollars each year and after 50+ years, I'll be able to pay a deductable or two many times over.

ISsues such as understanding how they work, having proper diagnostic tools, having access to parts whole salers mean you risk freezing your family over a 120-150$ insurance plan that you will enevitably spend twice or three times that amount once u factor in your personal time and price of parts at retail prices will cost you..... LEnnox doesnt take returns on main circuit boards if figuer out you where wrong when u get it home.

Feel free to pick my brain on heating issues or your direct energy plans.

Thinking out loud but if one is to purchase a service plan would it not be best to go with the authorized retailer of ones furnace rather than a company such as Direct Energy which may not have expertise on a particular brand...say a Lennox?

Depends, your assuming the local lennox "dealer" is authorized or has good techs. Im not suggesting they dont, but with any major brand almost anyone can become a dealer. So make sure you dealing with the main dealer in you city. Many companies specilize in installing for builders and have no intrest in doing service. But more imortantly i have the backup with me with a tech desk and material center to help get parts quickly, we even use currioer service to get our parts out quickly, we have contacts with any major brand and our exclusive wholesaler takes care of getting us what we need. Our training and tech departmetn make sure we get current bullitens and recalls when they come out, its there job to make sure im informed.

Case in point there are a few componies in Ottawa that sell there furnaces and tell the customer to sign up on direct energy insurance plan. They simply dont want the service work.

57: your not what i would call the average home owner. 50homes is not typical so but like u said u got away with 1000$ over 50 years perhaps you simply moved out before major repairs where needed. I agree in a perfect world we would all have savings for repairs and 3 months salery sitting in another account for just in case stuff. Reality is the insurnace plans are needed and wanted. Again not to compare furnace insurance to extended tv warranties. Simply not comparing apples to apples when your tv goes out your unhappy, when your furnace goes out you cold and loosing time from work.

...when your furnace goes out you cold and loosing time from work.Whether you have insurance or not...

perhaps you simply moved out before major repairs where needed
Further elaboration on my 50 house-years - I've lived in my current home for 17 years, with a 97% efficiency furnace. My previous home, I owned for 24 years with two 80% efficient furnaces. I also owned several additional rental properties over the years, so actually I've got roughly 75 furnace years experience - I had forgotten that my previous house in Calgary had two furnaces.

I agree in a perfect world we would all have savings for repairs and 3 months salery sitting in another account for just in case stuff.
We both agree that people who can handle their finances - have money in the bank, do not require furnace insurance. The people who cannot handle their finances, are destined to continue to be that way since they spend extra for insurance, probably don't pay off credit cards, etc.

Reality is the insurnace plans are needed and wanted
Judging by the number of "Money Mart" (http://www.moneymart.ca/default.asp) places, a lot of then are "needed and wanted" too. That doesn't mean that using them is a good idea.

as one who repairs furnaces both have there merits. but to me just do a maintance plan. as reported you may have a 93 per cent furnace but if it isnt cleaned and a efficiency test done on it. you can through that money out the door. I have been to peoples houses that have a 6000 dollar furnace with with filters so clogged i tore apart the filter to get it out. all equipment should be looked at least once before the heating season starts. and a efficiency test should be done and a copy given to the homeowner. the tech will probably spot a problem before you will. techs are like any one. everyone complains about us untill they need us.