When a customer purchases a new air conditioning unit, they expect reliable performance. Yet, even the best HVAC systems can hit a snag — and that’s when AC coverage matters most. Unfortunately, most air conditioner warranty coverage is limited at best and non-existent at worst, which can lead to surprise parts and labor repair costs if something goes awry.
Here’s the kicker: HVAC manufacturers typically set aside 2% to 4% of product sales to cover warranty claims. But even with that baked-in protection, both contractors and customers can be left in the lurch if an AC system fails outside its restricted terms. That’s why knowing the difference between a standard warranty and an extended one is so important.
Head to Head: How Standard AC Coverage Stacks Up
For most commercial and home systems, AC coverage starts with what’s included out of the box: a manufacturer’s warranty. While that might sound like sufficient protection, the reality often tells a far different story. Take a look at how manufacturer warranties and extended warranties compare.
Manufacturer Warranties: What They Really Cover
Also known as OEM (Original Equipment Manufacturer) warranties, these policies come included with a new air conditioner and offer coverage for a set period of time. For commercial units, that period is often one year for parts and five years for compressors. This is called a 1-5 warranty. Residential systems, on the other hand, come with a 5-5 warranty (five years for both).
The basis for these different coverages is that residential units tend to experience less exposure than commercial systems over time. Hence, residential HVAC warranties are often longer, with less risk of needing replacement parts throughout the years.
But here’s the catch: both types of OEM warranties only cover parts — not labor. That means if a system breaks down, your customer still foots the bill for technician time, which can add up quickly. They may also face limits based on the model number or restrictions on claim eligibility over time. These constraints can ultimately impact satisfaction for home and business owners.
Extended Warranties: Where Extra Coverage Kicks In
Unlike standard OEM warranties, an extended warranty protects more than just the parts. It adds comprehensive peace of mind for residential and commercial HVAC systems, covering both parts and labor over a longer time frame — even all the way up to 12 years. It’s like an additional layer of protection that builds on the original manufacturer’s warranty.
Customers can buy these plans right after installation, and the flexibility is hard to beat. Whether they want basic air conditioner system protection or a more robust home warranty plan, there are options for every budget. Even better? Contractors can set hourly labor rates between $85 and $300, customizing their service pricing to match their business needs.
In short: extended AC coverage = fewer surprises, lower costs, and more control for both the homeowner and the pro.
Why the Difference Matters for Customers (and Contractors)
Think of an extended AC coverage plan like a homeowner’s insurance policy, but for an air conditioner. It helps protect against the unexpected and locks in expert service from a trusted provider. When tied to a specific model number, these warranties can even transfer to new owners if (and when) the home is sold. That means home warranties don’t just protect HVAC investments — they add resale value, too.
For contractors, the benefits go beyond just customer satisfaction. Offering extended warranties helps ensure customers keep coming back to your business, and fast-tracks service requests to your technicians. With JB Warranties, fast reimbursements (typically under 14 days!) and a reliable network of service providers make it easy to deliver on your promise of quality support.
Why Offer Extended Warranties After System Installs?
Here’s a stat worth knowing: Around 13.3 million U.S. homes will need HVAC system service in the next year. Of those, nearly 40% already have home warranties or a preferred contractor. That’s a lot of potential lost business if you’re not offering air conditioning service plans right after installation. While acquiring a new customer can cost up to $350, offering extended warranties helps lock in future HVAC repairs without that steep investment.
Whether it’s covering refrigerant leaks, part replacements, labor, or all the above, extended warranty plans build long-term trust and loyalty. Customers don’t want to spend thousands on surprise repairs. Likewise, they’d rather not search the web for a reputable service provider after the system you’ve installed taps out on them. Show customers you have their best interests in mind by offering affordable, value-packed AC coverage from day one.
Top Misconceptions HVAC Contractors Hear (and How to Address Them)
Even with all these benefits, customers often hesitate before signing on the dotted line for an extended HVAC warranty. Here’s how to address the most common myths, complete with facts to back you up.
1. “I Already Spent a Lot, I Don’t Need to Spend More Upfront”
Between cooling systems, heating systems, and full replacements, a new HVAC system can cost $5,000 to $12,000. Understandably, customers don’t want to tack on more. But, unfortunately, skipping an extended warranty leaves them majorly vulnerable.
OEM plans don’t include labor, and one major repair could erase any upfront savings. An extended warranty spreads that risk out, so customers’ upfront investments are protected longer. Plus, they can even be purchased up to two years after installation with JB Warranties.
2. “Extended Warranties Don’t Transfer”
Not true. With a reputable provider like JB Warranties, air conditioning systems covered under an extended plan are transferable — at no extra cost. That’s a value boost for customers and a great selling point for future buyers and field technicians alike.
3. “The Claims Process is a Headache”
We get it: some warranty providers make filing a claim harder than the repair itself. At JB Warranties, we do things differently. We guarantee fast online filing, clear documentation, and reimbursements in 15 days or less. That’s how we keep both contractors and customers happy!
4. “There Are Hidden Fees”
This is another myth. JB Warranties allows for multiple repairs under your plan without penalties or surprise charges. There are no added fees for contractors, no transfer costs for homeowners, and no limits on doing right by your customers.
5. “My System Doesn’t Need It”
New systems may meet modern refrigerant standards or use efficient technologies like Variable Refrigerant Flow (VRF), but that doesn’t make them immune to breakdowns. System size, energy efficiency, and even weather conditions can impact performance. Extended warranties help shield customers from those future risks, no matter how advanced the system.
Are Your Customers Fully Protected After Installation? Ask JB Warranties
Whether you’re installing heat pumps, central air conditioning, ductless systems, or a mini split HVAC system, your customers deserve long-term AC coverage that protects their investment. At JB Warranties, we offer extended warranties for all major brands and equipment types designed to support your business and your customers for the long haul.
Ready to build trust, boost loyalty, and bring more value to your installs? Get started with JB Warranties today.
Tommy Cue
Vice President of Strategic Partnerships at JB Warranties
