Air conditioning EV

I just bought a condo and am wondering whether or not to get a home warranty for it. Basically for $300/ year I can get any of my appliances repaired or replaced for $45. The big thing this comes into play for is if the AC unit goes out, since it costs several thousand for a new one. I tend to avoid insurance in most things since it’s usually –EV and I generally have a fair amount of cash readily available. However, I think it might be worth it in this instance since the unit was built in 1980 and still has the original AC unit. Thing is, I have no idea what the general life expectancy is of such a unit. Also, this is in Vegas where AC is obviously a bit thing in the summer.

[vexvelour]

$300/yr to know that if anything goes wrong it will be taken care of is cheap peace of mind. Go for it, and that A/C unit should have/will crap out soon.

[Maulik]

tell me how often you'll spend 4k on fixing broken appliances and then we can answer your question.

[cdxx]

pay it, then run it around the clock until it dies. get it replaced, cancel the insurance.

[Guyon]

I love scamming insurance scams. If you think it will crap out within the next handful of years, then go for it and cancel it. Also, what other major appliances or equipment can you get your hands on that will fail within the next year? Consider garage sales, etc. You could possibly score a cheap hot tub in this manner. What about solar paneling? Of course, cancel it after you cash out!

Keep in mind that most of this post is just scheming & speculation. But seriously, if you know that the geriatric AC is at the end of its pitiful existance, splurge briefly on the insurance.

Wow, I hadn’t even thought about doing this. OOT rocks!

[TimM]

Better read the fine print. Companies will put all kinds of limitations and technicalities and hoops you have to jump through before they will honor a claim. If it breaks and can't be repaired maybe you will wait for months without an A/C before you get a new one. But most likely, if it does break, it will just be a fairly cheap repair bill for them, realtive to what you are paying.

[cdxx]

here's my experience with insurance claims.

my gf and i get woken up at 5AM by the sound of a waterfall. after a short panic, we discover that a plastic water pipe came out of its junction elbow (f'ing previous owners). the amount of water indicates that it's been going on for maybe 5 mins.

i shut off the water main, sweep the water out into the door. she calls the plumber. he replaces the supply line. $100. she calls the insurance. someone comes next day, inspects the ruined drywall, drop ceiling, the dryer that was standing right under the waterfall. the dryer works. he writes up $1500 worth of damage including $500 for a new dryer, out of which $500 is the deductible. we tell him that the dryer works. he says that it's more expensive to get a repairman to come out, check it out, professionally dry it off, and he's just going to add it to the total thing. plumber bill is not included in that btw.

the A/C maybe different, as it is more expensive, but if it's from the 80s, and repairs are more than $1g, i am pretty sure they will simply replace it.

edit : oh yeah, the insurance check came a week after the inspection.

[Blarg]

45 bucks isn't much for the feeling of security alone.

One thing to note, if you wind up replacing the AC, a modern unit you get will doubtless be far more energy efficient, so you will save on power bills, possibly pretty significantly. It is also fairly likely to be more powerful unless you buy at the bottom of the barrel.

I'd probably do this. Going without a major appliance when you really want or need it is not nice, nor is suddenly having to shell out a whopping load of cash at the drop of a dime, or do the all the scouting for a replacement yourself.

In the meantime, get yourself some URL's on new AC's so you can see what getting a new one might entail, including features you think are worth paying a premium for. That way if you do it yourself, you will be ready to go quickly, and if the company wants to give you a junk replacement, you might be able to work out a deal where you get something better even if you have to pay a little more or wait a little longer. Better than being stuck for the next 20 years with something you find lacking.