Saskatchewan man left out in the cold after he says his broken furnace cost him $10K despite having warranty — What you need to know

After Doell could not reach customer service outside of normal business hours to discuss the situation with the manufacturer, he felt he needed to act quickly. Doell found a different furnace that could be installed within a few days but he needed to pay out of pocket — a painful price of nearly $10,000.

For the sake of his family, Doell dipped into his savings account as the temperatures dipped in tandem. But he later found out that he acted on a miscommunication.

‘Didn’t do their due diligence’

CBC reached out to Carrier Enterprise — the parts distributor for Doell’s furnace — and were told that he was communicated a different timeline. The company was under the impression that Doell was aware he could have received the necessary part within a few business days, instead of a few weeks, provided he paid an additional fee.

Doell does not recall any communication of the sort. “Whoever took the call at the parts desk didn’t do their due diligence,” Doell said. “And it cost me $10,000.”

While the service company AquaTemp is now in discussions with Doell to reimburse him for the cost of the new furnace, it has not yet been confirmed that he will receive his money back yet.

How warranty works

Doell’s chilling narrative highlights an important question: how exactly does warranty coverage for expensive HVAC systems work?

The most common type of warranty is manufacturer’s warranty, which is a written promise to repair or replace a damaged product so long as it falls under the terms and conditions of the warranty agreement (2). In some cases, if you try to fix the issue yourself — or hire a non-authorized service company to fix it — warranty on major appliances can be rendered null and void. Moreover, if you do not service the warrantied equipment annually or as per the specifications in the warranty agreement, coverage could be at risk (3).

While warranty programs can provide peace of mind and cost-savings, especially for major appliances and heating systems, they should not be treated as a perfect safety net. As Doell’s story illustrates, though warranty can help cover expensive replacements, it may not be able to service or replace a faulty product in a timely manner.

Furthermore, not knowing the ins-and-outs of your warranty coverage can lead to unexpected bills that you may have assumed were covered in the first place. Never treat a manufacturer's warranty as a catch-all solution.

How to prevent your own warranty scare

Doell found himself in a tough situation: make major financial decisions quickly or wait and face the cold with less-than-ideal equipment. His story is a cautionary tale of knowing the limits of warranty coverage, but not all appliance breakdowns need to get to that point. Here are some tips to help avoid your own warranty scares.

• Get timelines upfront. In some cases, warranty agreements may not specify how long it can take for a replacement to come in. Getting that information from a representative beforehand — and discussing alternatives to a long wait time, if possible — can help prepare you for the worst.
• Know the limits of your coverage. Coverage under warranty agreements isn’t black and white. Under some plans, certain parts may have a different coverage period versus others (4). Do not assume that all plans are clear-cut: Always read the fine print.
• Document annual maintenance. A warranty claim can be denied if the issue stemmed from improper annual maintenance. Make sure to have your major home equipment checked once a year from a certified technician and keep proof of that inspection on hand in case of any future discrepencies.

If you end up having to make an unfair out-of-pocket payment, start by reaching out to a supervisor with the manufacturer and try negotiating a partial repayment. An open, honest conversation driven by respect can go a long way. Should a conversation not move the needle, it may be time to consider making a formal complaint with the manufacturer or even bringing the issue to a provincial or national complaint body (5).

Bottom line

Doell’s experience underscores that warranty can be a boon, but one that doesn’t materialize fast enough. Instead of leaning on warranty as a financial crutch for when expensive repairs rear their heads, start building up an emergency fund to cover unexpected payments. You’ll be happy you created an extra financial cushion when disaster inevitably strikes.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

CBC News (1); ISED Canada (2, 5); Atlas Care (3); York (4)