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Logo of J.A. Bertsch Heating and Cooling. J.A. Bertsch Heating and Cooling offers HVAC or electrical services near Coeur d'Alene, CDA, Post Falls, Hayden, Rathdrum, Sandpoint, Spirit Lake, St Maries, Athol, Blanchard, Dalton Gardens, Worley, Plummer, and Harrison, ID. Services include thermostat, furnace, heat pump, boiler, fireplace, air conditioner, and water heater installation, maintenance, or repair.
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How to Decide Whether to Repair or Replace

If your HVAC system isn’t keeping your home comfortable—or keeps breaking down—you may be wondering whether it’s time to repair it or replace it entirely. One common guideline to help with that decision is the $5,000 rule. In this post, we’ll explain what the $5,000 rule for HVAC means, how to use it, and when it makes sense to replace your system instead of spending money on more repairs.

At J.A. Bertsch Heating and Cooling, we help homeowners in Coeur d’Alene, Post Falls, Hayden, Rathdrum, Sandpoint, and Spirit Lake make smart, cost-effective decisions about their comfort systems.

What Is the $5,000 Rule for HVAC?

The $5,000 rule is a simple calculation to help you decide between repairing or replacing your heating and cooling system. Here’s how it works:

  • Multiply the age of your HVAC unit by the estimated repair cost.

  • If the number is more than $5,000, replacement is typically the better choice.

For example, if your system is 12 years old and the repair will cost $500, that adds up to $6,000—meaning replacement may be more cost-effective in the long run.

Key Factors to Consider

While the $5,000 rule is a useful starting point, it’s not the only factor to consider when deciding whether to repair or replace your HVAC system.

1. System Age

Most HVAC systems last 10–15 years. If yours is within or past that range, it’s more likely to have frequent issues or declining efficiency.

2. Energy Efficiency

Older systems usually aren’t as efficient as newer models. Replacing your AC or furnace could lower your utility bills and improve your home’s comfort.

3. Repair History

If you’ve needed multiple repairs in the past few years, those costs can add up. Even small repairs over time might justify a full replacement.

4. Comfort and Air Quality

New HVAC systems offer better airflow, quieter performance, and more consistent indoor temperatures. If you’ve noticed hot or cold spots in your home, it might be time for an upgrade.

Repair or Replace? We Can Help

Deciding whether to repair or replace an HVAC system isn’t always clear-cut. Our experienced team at J.A. Bertsch Heating and Cooling can inspect your current setup and walk you through your best options. We offer professional AC repair and air conditioning installation services, helping you stay cool during Idaho summers.

If your furnace is the issue, our team also provides furnace repair and furnace installation services.

We proudly serve St Maries, Athol, Blanchard, Dalton Gardens, Worley, and Plummer.

Not sure whether to repair or replace your HVAC system? Contact J.A. Bertsch Heating and Cooling for expert advice and a no-pressure consultation.

FAQs

What is the 5000 dollar rule for HVAC?

The $5,000 rule is a guideline to help homeowners decide whether to repair or replace their HVAC system. You multiply the age of your unit by the cost of the needed repair. If that number exceeds $5,000, replacing your HVAC system is often more cost-effective. This rule is especially useful when evaluating older units with frequent AC or furnace issues.

Can I deduct the cost of a new HVAC system?

In some cases, yes. Installing a new energy-efficient HVAC system may qualify for federal tax credits or local rebates. Look into the Energy Efficient Home Improvement Credit or similar programs. Always consult with a tax professional to determine eligibility based on your situation and system type.

How much is a new HVAC unit for a 1500 sq ft house?

The cost of a new HVAC system for a 1,500-square-foot home typically ranges from $5,000 to $12,000, depending on the efficiency rating, ductwork needs, and the brand of the unit. This estimate includes both heating and cooling. High-efficiency systems may cost more upfront but offer long-term savings on energy bills.

What is the new HVAC mandate?

As of 2023, the Department of Energy updated its HVAC efficiency standards. These new HVAC mandates require higher SEER2 ratings for air conditioners and heat pumps. The goal is to improve energy efficiency across the board. If your current system doesn’t meet these standards, it may be time to consider upgrading.

Will insurance pay for a new HVAC system?

Homeowners insurance typically does not cover HVAC replacements due to wear and tear or age. However, if the system is damaged by a covered event—like a fire, storm, or falling tree—your policy may help with replacement costs. It’s best to review your specific coverage or speak with your insurance provider.

Need help deciding whether to repair or replace your HVAC system? J.A. Bertsch Heating and Cooling is here to help with expert advice, professional inspections, and trusted HVAC services throughout North Idaho.