home warrenty and furnace

[bag13msu]

I have a question. When we bought our house, we got a  home warranty as part of the sale. We had an issue with  the AC and the warranty company set a contractor out,  who turned out to live down the street.  Our furnace is 36 years old (60% efficiency) and we worked with him to get a new  one approved. We have to pay out of pocket expense for ductwork, modifications for the gas, electrical  and PVC work that needs to be done.  We have 2 options an 80% efficiency with an out of pocket of 650 or a 92 % for 1550.  Before we called we got a qoute to replace the furnace and it was 3k+ for the furnace that was 95%.  We  taking that the 92% would be the best route?

[atarianna]

I don't know anything about furnaces, but in my mind 92% efficiency would be an easy choice since the difference is price will likely be made up by your utility cost savings over time.

Also, if your quote was $3k before, I am surprised the home warranty doesn't cover a higher percentage. I believe they have a max coverage amount but thought for sure it would cover more than 1/2 the cost.

[tealblue]

I would also go with the $1550 option. Check with your utility company to see if they have any rebate programs for going to an efficient furnace. It might give you a few hundred dollars which would make this a no brainer!

[hopenotlost]

Definitely the 92%. You may get a rebate from your gas company for upgrading to a higher efficiency furnace.

Also, I used to work for a home warranty company, and I just wanted to let you know to read the contract you received well. A lot of homeowners were upset when they called in saying their furnace wasn't working, only to find out that the ducts needed cleaning and the warranty didn't cover for that (since that falls under maintenance, which isn't covered).

[ellipses84]

I'd go with the higher efficiency one if you can afford it. We were in the same situation and our home warranty would only pay for the most basic model and of course had exclusions for ductwork, etc. It's still nice to have a good chunk of it paid for and our gas and electric bill went WAY down afterwards.

[dexteroni]

I would go with the 92%; it will make a noticeable difference in your heating bills and will pay for the difference in a couple years. if you plan to stay in this house for some time, it will save you money in the long run, and if you don't, a high efficiency furnace will be a good selling point.

And definitely see if there's still a tax credit this year. The 80% furnace isn't likely to quality, but the 92% might.