I had my AC assessed by a contractor sent through my home warranty, and they said the condenser and coil need replacing. The warranty agreed and approved a new unit, but my system is 28 years old, and the furnace is not up to code (there's even a fire hazard recall on it). The contractor quoted me $2100 for AC installation and $4700 for the furnace installation, but a week later, they complained about the warranty purchasing a Lennox AC unit that they're not willing to match with a cheaper furnace. They went radio silent after I approved a different furnace brand. After a month with no updates, my warranty offered me either a $3100 cashout or a transfer to a new contractor. I'm hesitant about the new contractor since they have a lot of bad reviews and their license is suspended for non-compliance. Should I take the cashout instead?
3 Answers
I vote cashout! Home warranty companies often default to the cheapest contractors since they can't afford better ones. You've already done well to get anything from a 28-year-old system. Cash out and consider putting some of your own money toward a new system from a reputable HVAC company instead.
Yeah, it sounds like a good plan to take the cash. Since the warranty covers repairs or contributes towards replacement, it doesn't really matter who does it. Plus, if you're only getting that cash amount anyway, it's probably worth it to shop around first for some quotes. The prices you've been quoted seem low for what you'd expect to pay.
Honestly, if you plan on using that home warranty, just be prepared to hound them regularly. They make it tough to actually claim benefits, hoping most people will give up. It's a bit of a frustrating game. If you take the cashout, you'll likely be in a better position than relying on them.
Exactly! Just check the fine print; they often just commit to wholesale prices, which can mess with what you think you're getting.