6 Best Home Warranty Companies in Bloomington, MN

How Does a Home Warranty Work?

A home warranty is a protection policy that assists Bloomington homeowners in reducing the expenses of appliance and system repairs. The plans offer financial coverage to replace or repair appliances and systems that malfunction due to normal wear and tear. When something breaks down, you submit a claim and pay a service fee. The home warranty company then arranges a contractor to handle the replacement or fix. Homeowners may have out-of-pocket costs only if the cost of the repair or replacement goes over the item's coverage limit. A home warranty gives homeowners reassurance, as it helps avoid high-priced emergency repairs. The coverage is especially helpful for buyers of older houses or houses with fixtures near the end of their life span. However, homeowners with newer homes and working appliances may not require a home warranty.

What Does a Home Warranty Cover?

Home warranties protect your household systems and appliances. Common covered appliances include dryers, garbage disposals, washers, dishwashers, microwaves, refrigerators, and others. Covered systems include electrical, air conditioning, plumbing, and heating. Many home warranty plans offer additional coverage for central vacuums, roof leaks, septic systems, and even locksmiths. Most home warranty plans require Bloomington homeowners to refrain from making claims for 30 days before the plan will cover repairs. Additionally, policies typically only cover repairs and replacements resulting from normal wear and tear. Home warranties don't cover pre-existing conditions, cosmetic issues, natural disasters, or misusing a system or appliance. To make sure your next repair or replacement is covered, keep up with preventative maintenance.

Key Home Warranty Terms to Know

Before signing a home warranty contract, you should understand key terms like:

• Coverage limits: Dollar limits that cap how much the warranty will pay for certain repairs or replacements. Check limits on air conditioning units, roof leaks, appliances, and similar repairs.
• Service fee: The out-of-pocket cost per claim that you pay for contractor access and repair coverage.
• Claim approval: The process providers use to determine whether a requested repair or replacement is covered under a home warranty plan.
• Endorsements: Optional add-on coverage for systems such as pools, well pumps, septic and more. Endorsements typically come with an additional fee.
• Trade call fee: An added fee that you'll sometimes need to pay for appliance-related claims.
• Deductible: How much you pay for a covered repair before your warranty covers the rest. Deductibles can be per-claim or yearly.
• Contract rate: A pre-negotiated rate that your home warranty provider has worked out with contractors. This rate is typically less than what you would pay retail.

Keeping these terms and key points in mind will help you understand home warranty contracts and pricing, so you can pick the right plan and protect your most important home systems. Make sure to discuss coverage details with potential companies when you get a quote to avoid surprise fees.

Key Factors in Choosing a Home Warranty Company

There are several important factors to consider when selecting a home warranty provider:

Coverage Options

Home warranty policies vary widely in what they include. Most plans cover electrical, heating, plumbing, AC, and appliances. More robust plans also extend protection to other items such as well pumps, roof leaks, spas, and pools. Look for companies with an array of coverage options, such as upgraded plans. Flexibility helps you tailor your protection for your needs.

Service Fees

Expect to pay a per-service fee of $60-100 for each home warranty claim. As this charge applies to every separate claim, some homeowners prefer to choose a company with lower service fees to maximize savings on every claim. Some companies also do away with deductibles if a customer goes a period of time without filing any claims.

Reputation

A home warranty company's reputation can offer insight into things such as speed of repairs, approval rates for claims, contractor quality, and customer satisfaction. Look at third-party review sites such as Google Reviews, TrustPilot, or the Better Business Bureau (BBB) to research companies. Good ratings and reviews indicate that a company is known for quality service.

Contractor Network

Home warranty companies use networks of local repair contractors to manage repairs in a given area. Contact potential companies to learn the number of repair technicians they have in Bloomington and get an idea of how fast your repairs could be handled in an emergency. More extensive networks raise the chance of getting qualified contractors to promptly service your home.

Added Benefits

Certain home warranty providers offer perks such as protection for smart home devices, discounts on maintenance, and energy-efficient upgrades. These can offer extra value beyond repair coverage. Added perks can enhance your home and maximize your home warranty.

Is a Home Warranty Worth it in Bloomington?

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Benefits of a Home Warranty

Since temperatures in Bloomington can hit the negatives in the winter, the extreme weather can put a lot of strain on your heating system. Having a home warranty policy can help homeowners save money if one of these systems or appliances stops working unexpectedly.

Not only can a home warranty save you some money on repairs and replacements, it saves you time as well. Instead of vetting technicians on your own, home warranty companies do the work for you and send a contractor from their network right to your door when you need them. Another added benefit of having home warranty coverage is that it can raise your home’s real estate value. If you ever decide to sell your home, you may be able to transfer your home warranty plan to the new homebuyer depending on the provider you have your home warranty with.

Downsides of a Home Warranty

There are also some drawbacks to getting a home warranty plan, such as the coverage exclusions. For example, home warranties may not cover home systems or appliances that already have a manufacturer's warranty.

Another downside is that home warranties may exclude some repairs, such as those due to natural disasters. For example, if your house floods, the impacted systems and appliances probably won’t be covered by the home warranty.