The 13 SEER/7.7 HSPF Mandate:

Questions and Answers for Realtors

1. What is 13 SEER/7.7 HSPF all about?
SEER stands for Seasonal Energy Efficiency Ratio. The U.S. Department of Energy is mandating that manufacturers build only 13 SEER (or 7.7 HSPF for heat pumps) or higher equipment to save energy; 13 SEER/7.7 HSPF systems are significantly more expensive but save electricity and are more efficient compared to systems with lower ratings.

2. Why learn about 13 SEER/ 7.7 HSPF?
It is important for Realtors to be able to educate their clients and to take steps to protect their clients against potential modification expenses. Because home warranties cover the replacement of air conditioning and heating systems, this mandate will affect the cost of HVAC replacements under the home warranty.

3. When does 13 SEER/7.7 HSPF go into effect?
These changes go into effect January 23, 2006. However, this change affects any home that will have a home warranty in place after January 23, 2006.

4. How do we know if a current system is rated below 13 SEER?
The vast majority of existing homes have systems that are rated below 13 SEER/7.7 HSPF. Most units will denote the rating on the top or the side of the external unit.

5. How will BHWC handle the added cost of 13 SEER?
BHWC will repair existing units whenever possible and replace with 10 to 12 SEER rated systems while supplies are still available. When it is necessary to replace with 13 SEER, BHWC will pay to replace the malfunctioning component with a 13 SEER component, and any covered component needed to ensure compatibility. This includes sheet metal for plenums and air handlers, the installation of thermostatic valves, and the replacement of evaporative coils and refrigerant lines.

6. What 13 SEER modification costs won’t be covered under the air conditioning coverage?
The cost of new stands, roof jacks, pads, structural modifications, and the cost of relocating part or all of a system.

7. When would additional non-covered modifications be necessary?
The higher efficiency systems are physically larger and heavier, and may require costly modifications that are necessary to fit the new equipment into the existing space. It may be necessary to relocate the equipment, including gas lines, electrical lines, line sets, coils, valves, transitions, plenum, pads, stands and more.

8. How can I protect my clients against the expense of costly modifications?
BHWC will cover 13 SEER modifications up to $500 under the Maximum Upgrade Option, or up to $1,000 under the Relocation/Modifications Option. With both, coverage is available up to $1,500.

9. What if my client doesn’t want to pay for either new option?
If your client doesn’t want to provide either option, have him sign the waiver and keep a copy in your file.