HVAC and Home Warranty

By Amy Desgrange, CCAR Affiliate Committee

A home is one of the biggest investments a person will make in their lifetime. In Texas, our air conditioners are the largest, most expensive, most used and abused appliance in our home.

The home warranty industry is facing a huge challenge this year due to the federal mandate changing the mechanical make up of HVAC systems as we currently know it. R-22, commonly referred to as Freon, has been the industry standard for air conditioning units for more than four decades. However, R-22 is an ozone depleting substance and as such is being completely phased out by Jan. 1, 2020.

Beginning Jan. 1, 2010, the EPA requires the use of R-410A refrigerant in air conditioning systems. Under this mandate, any failed air conditioning condenser or evaporative coil that uses R-22 refrigerant must be replaced with equipment that uses R-410A refrigerant; and the remaining system components must be made compatible with the R-410A refrigerant.

This means the new industry standard refrigerant will be R-410A, commonly referred to Puron. Puron is a registered trademark name of R-410A created by Carrier in 1994 and introduced to the market in 1996. Puron is a non-ozone depleting refrigerant that is a combination of two components: R-32 and R-125. This blend has a higher vapor pressure than R-22 which makes R-410A much more energy efficient. When homeowners switch from an R-22 to R-410A 13 SEER minimum system, they should see instant savings in their energy bills.

Equipment that is designed for R-22 should not be running with R-410A refrigerant because of the difference in the vapor pressure and the type of oil needed to run the system. R-22 utilizes a mineral oil while Puron utilizes synthetic oil. All A/C systems use oil that circulates throughout the inside of the system to keep all of the parts well lubricated and running smoothly. What is the significance? When you replace one, you have to replace the other.

It is very important for homeowners to read their warranty brochure and understand what is and is not covered, especially when it comes to the HVAC system. Thousands of DFW homeowners will face A/C replacement this summer and agents should know what's happening in the warranty industry that could impact their clients expectations if not set correctly.

Most warranty companies include R410-A equipment upgrade coverage for failed Freon units that need to be replaced. However, not all warranty plans provide coverage for the modifications required to upgrade A/C systems to R-410A refrigerant. Any non-failed working components of the system that need to be modified in order to get the new R410-A equipment operating are the responsibility of the home owner. Some warranty companies offer a buyer's only option that provides money towards the modification expenses. Again, read the contract because not all warranty companies are handling Freon to Puron conversions the same way.