I agree, while I would not rip out a properly functioning furnace to upgrade for efficiency it is a very good idea to go high efficient when your current furnace has gone Kaput.
Since you have to shell out bucks and your homewarranty is picking up part of the tab it would be silly not to go as high effiecient as possible. If heating costs only go up half of what they are projected your new furnace will pay for itself in just a year or two, after that the savings are all yours. Spend time researching different units and the different contractors in your area.
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