What is a replacement credit?

A replacement credit is based on the proposed cost of the replacement equipment/appliance through an approved contractor when a malfunction is not repairable or when the repair cost exceeds the cost of the replacement. The replacement credit includes the cost of delivery, installation and associated fees related to the new equipment/appliance (Terms may apply). If the homeowner elects to purchase new equipment or an appliance that exceeds the replacement credit, the homeowner will be responsible for the difference.