HVAC Non-Covered Charges (NCC's)
Purpose
Initial Inquiry
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Common Customer Statement
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“I
received an email saying that my replacement was approved, but there would be
additional charges that I would be responsible for paying. Can you explain this
to me. I thought the warranty covered everything.”
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Relevant Response
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“I
do see we have approved the replacement of your <Item>. While the
warranty does cover the system itself, including parts or equipment needed
for the repair or replacement, along with standard labor to install that
equipment, work such as modifications and permits is considered additional
installation-related work and not covered under the warranty. Those costs are determined by your state and service provider requirements and are paid directly to the service provider. Feel free to reach out to the service provider for an additional breakdown and explanation of these costs or to discuss payment options.”
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Electrical Modifications and Code Upgrades
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Description |
A new system may require electrical parts to be updated or upgraded. This can include a new disconnect box, new electrical whip, larger-sized breakers or fuses, updated thermostat, or low-voltage wiring. Even if the old system was running, the new equipment may have different electrical requirements.
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Explanation |
Sometimes electrical charges can come up during a replacement because the home warranty covers the failed item, but not every cost tied to installing the new equipment. For example, the new system may require electrical updates like wiring, a breaker, or a disconnect to support a safe and proper installation. Those costs are considered installation-related rather than part of the covered failure itself. The good news is the warranty is still covering a large part of the replacement expense, which can help save you quite a bit compared to paying the full cost on your own. |
Airflow and Ductwork Changes
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Description |
A new system may also need changes to the duct system to help air move properly through the home. This can include adjusting or replacing the supply and return connections, making the return duct larger, adding a better filter cabinet, and sealing duct leaks A new system will not
perform properly if the airflow is poor.
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Explanation |
In certain situations, airflow or ductwork changes may be necessary to support the new equipment or help the system perform properly. Because these needs can vary based on the home’s setup and installation requirements, they fall outside the scope of home warranty coverage.
The home warranty covers the system itself, including the necessary parts or equipment, as well as standard labor required for the repair or replacement. Work beyond that scope, such as supply or return plenum modifications, duct sealing, filter box upgrades, or required duct testing, is not covered and would be the homeowner’s responsibility. Any costs for this additional work would be paid directly to the service provider. |
Drain Line and Overflow Protection
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Description |
A provider may be required to upgrade or modify a drain system that removes condensation from the indoor unit. This can include replacing or correcting the main drain line, fixing the slope of the pipe, adding a secondary drain pan, or installing safety switches that shut the system off if water backs up.
This is especially
common when the unit is installed in an attic or above a finished area of the
home
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Explanation |
Your home warranty covers the failed covered item and standard labor when there is a mechanical failure due to normal wear and tear. In some cases, though, a repair or replacement also requires drain line or overflow protection updates, so the system can be installed safely and operate properly. These updates can include things like drain line modifications, a secondary drain pan, float switches, or other overflow safety components. Because those items are related to installation requirements and system protection, rather than the covered mechanical failure itself, they are not covered under the home warranty. |
Refrigerant Line Work
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Description |
The copper refrigerant lines that connect the indoor and outdoor units may also need attention. Depending on their size, condition, location, and compatibility with the new system, the lines may be required to be replaced.
The existing line set cannot always be reused just because it
is already there.
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Explanation |
In some cases, when major repairs or replacements are completed, refrigerant line modifications or upgrades may be required to accommodate newer equipment. This type of work is not addressed under the home warranty, as it can depend on the size, condition, location, and compatibility of the existing line set.
The warranty covers the system itself, including the parts or
equipment needed for the repair or replacement, along with standard labor to
install that equipment. Any additional work, such as copper modifications, line
set replacement, or other installation-related changes, is not covered under the
warranty and would be an out-of-pocket expense. The service provider would be
paid directly for this additional work. Your warranty will cover the failed covered equipment
and standard installation labor only. |
Platform, Pad, or Pump Ups
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Description |
The provider may need to update the area where the equipment sits. Outside, this can include replacing the pad,
stand, or supports under the condenser and making
sure the unit is level and secure. Inside, the coil or air handler may need a
new platform, hanging kit, or other adjustments so it can be installed safely
and serviced properly.
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Explanation |
Sometimes, when equipment is being repaired or replaced, the area supporting that equipment also needs to be updated so the new system can be installed safely and correctly. Outside, that may mean replacing or modifying the pad, stand, or supports under the unit. Inside, it could mean adding or adjusting a platform, hanging kit, or other support for the air handler or coil.
Your home warranty covers the failed covered equipment and standard labor for the repair or replacement. However, items such as pad modifications, air handler platforms, pump-ups, or hurricane straps are considered installation-related or code-related updates, so they are not covered under the warranty. |
Permit Fees
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Description |
Some full system replacements may need a permit from the city or
county before the work can be done. Permit fees are charges set
by the local area and are usually not part of the actual equipment or labor
cost. These fees help cover the review and inspection of the
installation to make sure the new system meets local code requirements. The amount can vary depending on where the home is located, and
in some cases, an inspection may be required after the installation is finished. |
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Explanation |
Sometimes, when a major repair or replacement is completed, a permit may be required by the city, county, or local municipality before the work can be performed. Permit requirements can vary based on where the home is located and the type of work being done.
Your home warranty covers the failed covered equipment and standard labor for the repair or replacement. However, permit fees are considered a local requirement tied to completing the installation, so they are not covered under the warranty and would be an out-of-pocket expense. |
Disposal/Reclaim
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Description |
The provider may also need to remove the old equipment and
handle the disposal of materials from the repair or replacement. In some cases,
refrigerant must be properly recovered and reclaimed per the EPA, and old
equipment or debris must be hauled away and disposed of according to local
requirements.
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Explanation |
Sometimes, when equipment is replaced, the old unit or materials must be removed and properly disposed of. Disposal requirements can vary depending on the type of equipment being removed and local handling requirements.
Your home warranty covers the failed covered equipment and standard labor for the repair or replacement. However, disposal or haul-away charges related to removing old equipment or materials are not covered under the warranty and would be an out-of-pocket expense. |
Code Upgrades
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Description |
The service provider may be required to make updates to bring the installation up to current code or safety requirements. These are items that may not have been required when the original system was installed, but are now needed for the new installation to be completed properly and meet local requirements.
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Explanation |
Sometimes, when a repair or replacement is completed, additional updates are needed to meet current building, safety, or installation code requirements. These updates can vary based on local regulations and the specific setup of the home.
Your home warranty covers the failed covered equipment and standard labor for the repair or replacement. However, any additional work or materials needed to meet current code requirements are not covered under the warranty and would be an out-of-pocket expense. |
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