Furnace Breakdown Protection - Recommended?

[Nir]

Hi Everyone,

I received a letter from a reputable home rental services company offering a furnace breakdown protection for $12+tax/month.
I own the furnace there, it is not rental. Furnace is old. Is it a good idea to protect ourselves this way?

I do not think furnace protection is as common as water tank. not sure why though(?)

Thanks,
Neil

 

[brentdavies]

Read the fine print on the contract very carefully. What voids the protection coverage? Not changing filters every month?

We operate over 500 properties with independent heating systems, and if the systems are maintained, the number that breakdown and cause any type of damage is next to nil.

Our biggest winter problem is tenants leaving windows open in buildings with hot water heating systems and causing the pipes to freeze.

A furnace failure that causes the pipes to freeze is covered by insurance. Not the repair to the furnace however.

This is like buying extended coverage on your television. 99% of people who buy this never use it.

 

[Nir]

Thanks Brent!

 

[housingrental]

I agree with Brent`s post.
To add as general philosophy though:
Never insure when you can afford to self insure
Insurance is a for profit business
Lower priced items especially often have high margins