If you're installing a new AC system or repairing an older one, many companies offer an extended AC service contract or maintenance agreement. These contracts can be a blessing, but they can also be a waste of money. By understanding more about what these contracts are and what they offer, you can make an informed and wise choice.
Service contracts are agreements between you and an HVAC service provider wherein you pay a set fee to guarantee the company's ongoing services for your AC system.
With the most basic contracts, the service includes a checkup and tune-up emphasizing your heating system at the start of the winter and air conditioning system before summer. You can also find contracts that include parts and service for problems found during those checkups, and some will even include emergency service.
They sometimes also include priority treatment, which can save you time and discomfort when your heater fails in the freezing cold or your air conditioner blows out in the heat of summer The more services the contract includes, the more you will pay.
If you purchase a service contract, you will be more likely to get an annual tune-up for your AC system. This will improve your energy efficiency, as the technician will be able to change dirty filters and spot other problems that are impacting your efficiency, helping your system to work more affordably overall.
Hiring a qualified technician to inspect your system a few times per year means you can identify issues while they are still small and easy to fix, rather than waiting until they damage your system or become expensive.
The main reason homeowners do not purchase an AC service contract is the cost. They can cost between $150 and $500 per year, depending on the amount of services offered. If the system is new and still under a manufacturer's warranty, the cost may not be worthwhile. Any major repairs should be covered under the manufacturer's warranty. However, some manufacturers require routine maintenance as a term of the warranty.
The contract may cost more than the service or repair it offers. Keep in mind that you will be paying the fee every year regardless of whether you have a repair done. If you go five years without needing a major repair, but are paying $250 a year for the contract, you may be paying far more than it's worth.
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