Extended Parts and Labor Warranty. Opinions? Experiences? Let's hear it!

AirCooledVW

Finally able to set the wheels in motions for the install! Brrrrr!
Burnham SteamMax250 for 2 pipe steam.

Looking for input on extended parts and labor warranties:

This plan will pay to repair and/or replace parts that fail under normal use. See policy for limitations. This plan begins 60 days after application and continues through year 5 (or 10) after installation.

What do you think?
(feel free to argue amongst yourselves so I can appreciate the pros and cons, thanks)

Jamie Hall

Personal opinion -- it's a crap shoot. Just remember that the insurance company is in business to make money, just like a casino, which means that on the whole the company takes in more money on premiums than it pays out on repairs. Individual situations? Some people make out like bandits. Most people, not so much.

pecmsg

WHO's backing the warranty, the installing contractor or a 3rd party AKA insurance company?

Pumpguy

My feeling on buying an extended warranty is this: Those that sell them sell them for one reason only; TO MAKE A PROFIT.

To me, this means based on the seller's analysis, it is more likely that they will receive more in payments than they pay out in claims. Based on this reasoning, I usually forgo buying an extended warranty and buy the best quality goods I can find and afford.

AirCooledVW

pecmsg said:

WHO's backing the warranty, the installing contractor or a 3rd party AKA insurance company?

I Believe it is through a 3rd party. I'm waiting on a call back right now.

Long Beach Ed

The best warranty you can get is hiring a knowledgeable man who will do the job correctly, following manufacturers' directives using quality domestic parts. Or hire an expert to supervise this installation.

Unless you're dealing with a massive amount of imported electronics or questionable quality, money spent on a five or ten year warranty is generally money wasted.

Like pumpguy, I save my warranty money, buy the best quality equipment and use the savings to "self-insure". I advise my customers to do the same. I would never suggest to a customer that he insure himself, at extra cost against my incompetence or faulty work. None of my customers would ever benefit.

BobC

It is a crap shoot, insurance companies make a nice profit and they get them because the collective cost of repair work is less than the collective premiums. I usually don't buy them but I did fork over for a 5 year parts and labor policy for my Mitsubishi minisplit.

The unit ran without a problem for 4-2/3 years but then just became a very expensive fan. It took the original installing company four visits over 5 months to fix it. If I had to pay for that it would have been $10 for parts and well over a grand for labor . Now I think this was because their techs just weren't that good but that money would have come out of me if I didn't have the policy so I only ended up footing about a third of that (the policy cost me $400).

I knew the industry had a problem finding competent help so i thought it a worthwhile risk. You pay's your money and takes your chances.

Bob

AirCooledVW

Thank you for all of your comments. I appreciate your time and your insight.

Initially I was going to go for the full 10 year plan since I've never had a boiler before, and don't know what to expect. Then I was thinking, Hey, Wait a minute! I don't buy an extended warranty for any appliances or electronics! I'm not going to waste my money!

But, I thought I throw out the question here. Everyone seemed to be in agreement, don't waste your money, so that confirmed my decision... but then I caved. I was ready to sign the proposal... and I just couldn't do it without some back up. So I opted for the 5 year plan for a few hundred bucks.

Came here to hand my head and own it, but thanks to @BobC I don't feel like a dope. It really is a relatively small price to pay.

Thanks again y'all.

AirCooledVW

Here's a copy of the extended warranty, if anyone is interested.

Long Beach Ed

You realize that your Burnham boiler comes with a ten-year warranty by Burnham. What your "Extended Warranty" gives you in addition is up to six man-hours to replace it, if it fails in the first five years. Hope you didn't pay too much. But if it makes you sleep better...

pecmsg

Invest in a Qualified contractor to maintain and service the boiler. Better than any warranty. 

gyrfalcon

This is not boiler related but In my opinion, the warranty company always comes out on top.  I used to deal with aftermarket warranty companies in the big truck repair industry.  From a parts and service point of view, it’s not worth the cut on labor and parts. Repair involves A LOT of phone calls, pictures, emails, overly detailed explanations of the three C’s (complaint, cause, correction) , third party inspection-  truck down- in a repair stall - for days  ) after the diagnostic and disassembly was completed (on customers dime until root cause of failure was proven to be warranted) . if not proven, customer, pays entire bill and equipment was down for longer than it should have been .  And.. I am now the bad guy because the high dollar warranty did not pay for the repair. And I was not willing to lie or fabricate stories in order to make a repair. 

At my current place of employment we work on Japanese and German cars and do not participate in any aftermarket warranties. Have a customer has a warranty claim, they can be the ones to submit the paperwork and hopefully get paid back.  We tell our customers when they buy a new car just put some money aside for maintenance and repairs.  

To quote Tom Waits- “ the large, print giveth, and the small print take it away”

BobC

The problem is finding a "Qualified contractor", most hereabouts so not fall into that category. Almost all the qualified men are all retired or have gone to service that great boiler in the hereafter. The few that are left are swamped with work and not taking new customers.

Bob