Cost Savers and Budgeting Tips

What You Need to Know About HVAC Replacement & Costs

If you’ve found yourself eyeing your increasingly undependable unit and wondering about the average cost to replace HVAC systems lately, keep reading.

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In 2016, American Home Shield received more than 1.2 million service calls related to heating and air conditioning units. Of the heater-related requests, 3 percent resulted in replacement; for the A/C requests, it was a whopping 8 percent. If you’ve found yourself eyeing your increasingly undependable unit and wondering about the average cost to replace heater and air conditioning systems lately, keep reading. Unfortunately, we can’t give you a definite HVAC replacement cost to expect to pay. However, we can give you some insight to help you determine if a replacement is necessary as well as some factors to consider that will determine your final cost.

How Do You Know if You Should Replace Your HVAC System?

It may be obvious: Your unit is nearly ancient, making very unnatural sounds and has required several repairs over the past couple of years. Or maybe it’s not so obvious: Your energy bills are costing more than they usually do this time of year, and you find yourself constantly adjusting the thermostat. Regardless, it sounds like it’s time to say, “Out with the old, in with the new.”

What to Look For When Buying a New HVAC System?

Deciding which unit to purchase can be overwhelming, to say the least. Here are some important considerations:

  1. Start and end with the right professional contractor. Your unit’s efficiency can be determined by its installation, so it’s imperative that you work with a reputable contractor. Interview several candidates and get detailed quotes from each.
  2. Determine the correct unit size. Make sure your contractor performs a load calculation, taking into account the size of your house, climate, roof material, orientation of the unit, number of units, etc.
  3. Don’t ignore the SEER rating. The higher the Seasonal Energy Efficiency Ratio (SEER) rating, the more efficient the unit will be. Although a unit with a higher SEER rating may be more costly, it will end up saving you more money in the long run.
  4. Search for rebates. To offset some of your HVAC replacement costs, see if your state offers rebate incentives.

Factors that Influence Your HVAC Systems Replacement Costs 

In a nutshell, typical replacement and repair costs for cooling units range anywhere from $135 to $3,919. For heating units, that range goes from $120 to $4,000.* So if it looks like you need a full replacement, it’s a pretty sure bet you’ll be spending thousands. Some factors that influence your overall cost include:

  • The type and size of the unit that you need.
  • The type of fuel that is required for the unit.
  • Whether you need additional HVAC repairs, replacements or additions (such as ductwork).
  • How energy efficient the new unit is.

Money Matters: Budgeting for Unexpected Repairs and Expenses 

What to Keep in Mind After the Replacement? 

Nothing says “investment” like a home system that you paid a pretty penny for. Unfortunately, regardless of how much you end up spending on your HVAC replacement, it can still have some hiccups in performance every once in a while. So why not protect your investment — and your budget — from the occasional unexpected costs? Consider ensuring peace of mind with an American Home Shield Home Warranty.

*As reported in “A Study of Homeowners’ Appliance and Home Systems Service Experiences,” a nationwide survey of homeowners conducted in 2014 by Decision Analyst for American Home Shield. Further reproduction is expressly prohibited.

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