Understanding Your Heat Pump Warranty: Coverage & Exclusions
Manufacturer vs labor warranties, what voids coverage, and how to protect your investment for 15-20 years.
The Warranty Surprise
Your heat pump breaks down after 3 years. You call the installer expecting warranty coverage. They say:
"The compressor is covered by the manufacturer for 10 years, but labor is only covered for 1 year. That'll be $1,200 for the service call."
You're shocked. You thought you were covered.
This happens to thousands of homeowners every year because warranty terms are confusing and often buried in fine print. Most people don't understand the difference between equipment warranty and labor warranty—until something fails.
This guide breaks down heat pump warranties so you know exactly what's covered, what's not, and how to protect yourself.
Two Types of Warranties: Equipment vs Labor
Equipment Warranty (Manufacturer)
What it covers: The heat pump itself—compressor, coils, refrigerant, electrical components.
Who provides it: The manufacturer (Lennox, Carrier, Trane, etc.)
Typical coverage:
- Compressor: 5-10 years (most important part)
- Parts: 1-5 years (coils, fans, electrical)
- Refrigerant: Lifetime (usually)
What it doesn't cover: Labor to replace the part. If your compressor fails after 5 years, the manufacturer replaces it for free, but you pay $1,500-$2,500 for the technician to install it.
Labor Warranty (Installer)
What it covers: The installer's workmanship—installation, commissioning, repairs due to installation errors.
Who provides it: The installer (local HVAC company)
Typical coverage:
- Standard: 1-2 years
- Good: 3-5 years
- Excellent: 5-10 years
What it covers: If the installer made a mistake (wrong refrigerant charge, poor ductwork, bad commissioning), they fix it for free during the warranty period.
What it doesn't cover: Manufacturer defects or normal wear and tear.
Typical Warranty Scenarios
| Scenario | Equipment Warranty Covers? | Labor Warranty Covers? | Your Cost |
|---|---|---|---|
| Compressor fails (Year 3) | ✓ Yes (if within 5-10 yr coverage) | ✗ No (labor not covered) | $1,500–$2,500 (labor only) |
| Refrigerant leak (Year 2) | ✓ Yes (part replaced) | ✗ No (unless installer error) | $800–$1,500 (labor + refrigerant) |
| Poor commissioning (Year 1) | ✗ No | ✓ Yes (installer fixes for free) | $0 (covered by labor warranty) |
| Ductwork issue (Year 1) | ✗ No | ✓ Yes (if installer caused it) | $0 (covered by labor warranty) |
| Normal wear (Year 15) | ✗ No (warranty expired) | ✗ No (warranty expired) | Full replacement cost ($8,000–$15,000) |
What Voids Your Warranty
1. Unlicensed Installation — If an unlicensed contractor installs it, warranty is void
2. DIY Maintenance Mistakes — Improper filter changes, wrong refrigerant added, etc.
3. Lack of Maintenance — If you don't service it annually, warranty may be voided
4. Improper Refrigerant Charge — Over/undercharging voids warranty
5. Electrical Issues — Wrong voltage, improper wiring voids coverage
6. Flood/Water Damage — Usually not covered
7. Unauthorized Repairs — Using non-certified technicians voids coverage
8. Moving the Unit — Transferring to a new home may void warranty
Extended Warranties: Are They Worth It?
What they are: Optional coverage beyond manufacturer/installer warranties, typically 5-10 years.
Typical cost: $500-$1,500 (one-time) or $50-$150/year
What they cover: Parts and sometimes labor for repairs due to manufacturer defects.
Are they worth it?
Scenario A: You buy extended warranty ($1,000)
Year 7: Compressor fails. Extended warranty covers $2,000 repair. You save $1,000.
Net benefit: +$1,000
Scenario B: You skip extended warranty
Year 7: Compressor fails. You pay $2,000 out of pocket.
Net cost: -$2,000
Scenario C: You skip extended warranty, nothing fails
Year 15: System dies of old age. You replace it ($12,000).
You saved $1,000 by skipping extended warranty.
Net benefit: +$1,000
My recommendation: Extended warranties are worth considering if:
- You plan to stay in the home 10+ years
- You're risk-averse and want predictable costs
- The extended warranty is reasonably priced ($500-$800)
Skip extended warranties if:
- You're getting a 5+ year labor warranty from the installer
- You have emergency savings for repairs
- The extended warranty is expensive ($1,500+)
How to Protect Your Warranty
Questions to Ask Your Installer
Before signing the contract:
- "What's the equipment warranty? (Compressor vs parts)"
- "What's the labor warranty? How long?"
- "What's not covered?"
- "Do I need annual maintenance to keep warranty valid?"
- "What happens if I move?"
- "Do you offer extended warranty? What's the cost?"
- "Who handles warranty claims? You or the manufacturer?"
- "What's your emergency service availability?"
Real-World Warranty Scenarios
Sarah gets a heat pump installed with 1-year labor warranty. Year 2, the system isn't heating properly. Turns out the refrigerant charge was wrong during installation. Repair cost: $1,500. Labor warranty expired, so she pays full price.
Lesson: Get at least 3-5 year labor warranty. The extra $500-$1,000 upfront saves you thousands later.
John skips annual maintenance to save money. Year 5, the compressor fails. He calls the manufacturer for warranty coverage. They deny the claim because maintenance records show no annual service.
Lesson: Annual maintenance is required. Budget $150-$300/year to keep warranty valid.
Maria pays $800 for a 10-year extended warranty. Year 8, a coil fails (not covered by standard warranty). Extended warranty covers $2,500 repair. She breaks even after one claim.
Lesson: Extended warranties can pay for themselves with one major repair.
Key Takeaways
- Two warranties, two purposes: Equipment (manufacturer) + Labor (installer)
- Labor warranty matters most: Equipment warranty doesn't cover labor costs
- Longer labor warranties are worth paying for: 5 years vs 1 year = peace of mind
- Annual maintenance is required: Skip it and you void warranty
- Extended warranties can make sense: If reasonably priced and you're staying long-term
- Get everything in writing: Don't rely on verbal promises
Next Steps
- Ask your installer for warranty details in writing
- Clarify equipment vs labor coverage
- Decide if extended warranty makes sense for your situation
- Schedule annual maintenance to keep warranty valid
- Keep all service records and receipts
Questions about warranty coverage? Get matched with certified installers who offer transparent warranty terms and stand behind their work.