Most consumers have heard of the term Maintenance Agreement in relation to service on equipment, but few understand the important difference between a Maintenance Agreement and a Service Contract. Below are the definitions, BUYER BEWARE...
Maintenance agreements are usually one sided in favor of the companies that offers them. Telephone solicitors or a printed advertisement may offer a (foot in the door) low price maintenance service under the guise of getting you ready for spring or to help you with your high electric bills. When the technician arrives they all try to sell the easy to change part like a contactor and clean the coil for say $260.00. They will then agree to make the repairs for free if you will sign a maintenance agreement for three years at the cost of only $599.00. Any contractor can offer a Maintenance Agreement to a consumer. They are not regulated, they are not legally transferrable therefore they do not hold value. They are basically an invitation to a contractor to come into your home and upsell parts and labor you may or may not even need.
A Service Warranty Agreement or Contract is an agreement to provide repair coverage for a homeowner's air conditioning system and major appliances. This includes the major parts to keep your equipment running, all the labor and service call fees. As a homeowner, you pay one low annual fee up front. To guarantee a Service Warranty Agreement the State or Florida requires that a $100,000 cash deposit with the State of Florida, 25% of all monies collected are to be deposited into a special escrow account for the duration of the contract and quarterly financial reports must be submitted to the Department of Insurance Regulation. A FAST of Florida Service Warranty Agreement includes all of the following benefits...
