mariya

this is coastal location? it appears you have 5 ton HP.

I assume you are speaking about a third party warranty company. they have a dubious reputation in the industry and in your case probably just want to replace the outdoor condenser usually with a low end mdl.

you need a matching system that includes both outside condenser and inside air handler. replacing a new condenser paired with an old inside air handler would be a poor decision.

I would ask the warranty company for a settlement and then you make the decision.

these are my minimum specs for a new HP system. both outside and inside units should be replaced to have a properly matched system.

15 SEER, 12.5+ EER, 9 HSPF
best matching VS air handler
full BTUs in both cooling and heating for your rated size
R-410a refrigerant(same as Puron)
scroll compressor preferred
electronic demand defrost preferred
thermostat with "dehumidify on demand" feature
staged backup heat strips
new and correctly sized refrigerant lineset

you want a thorough inspection of your ductwork system. size, overall condition, supply and return lines, insulation qualities, leak test, etc.

any hot/cold spot issues in your home should be addressed.

I would only use authorized dealers for the various brands that provide quotes. see mfg websites.

I would look at Trane/AmStd,Rheem/Rudd,Carrier/Bryant.

I would not purchase a new HP system that did not have electronic demand defrost.

IMO

Thankyou for the feedback , its very helpfull. I have decided to replace both the inside and outside units , Can you explain to me what is SEER and is there a big difference between 13 SEER and 15 SEER .Thanks,Mariya

SEER is a measure of efficiency. The higher the number the better.

IMHO, the 'sweet spot', that is, the point where the cost you pay is worth the efficiency you get, is around 15. That is, the difference in price between 13 and 15 is made up quicker in lower bills than the price difference between 15 and 18+.

Thankyou for your responses .
I decided to go for a 15 SEER Trane model, Iam waiting to get the quote on it ..