Most dealers offer extended warranties on top of the manufacturer’s warranty and their own labor warranty. Periods of five and 10 years are common. Should you buy?
Probably. If the extended warranty is priced competitively, and it’s backed by the equipment manufacturer or Equigard, it would make sense to buy it—especially on a furnace. As furnaces are becoming very complex and many of the components are made in developing nations to keep the price down, repairs are becoming more common and more expensive. If you plan to stay in your home for 10 years or longer, you most often will recoup the investment.
Do read the fine print, however, as these warranties only cover breakdown of the equipment. Maintenance and problems not related to an equipment failure are not covered.