6 Best Home Warranty Companies in Cambridge, MN

How Does a Home Warranty Work?

A home warranty is a protection policy that assists Cambridge homeowners cut the high costs of household repairs. These plans provide financial coverage to fix or swap out appliances and systems that break down from normal wear and tear.

Homeowners submit a claim and pay a service fee when something breaks. The home warranty company then arranges a contractor to make the repair or replacement. The only time you may pay out-of-pocket is 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 expensive emergency repairs. The coverage is especially helpful for those living in older houses or houses with systems near the end of their life span. However, people with newer homes and modern appliances might not require a home warranty.

What Does a Home Warranty Cover?

Home warranties protect your home systems and appliances. Common covered appliances are refrigerators, garbage disposals, dryers, washers, dishwashers, microwaves, and more. Included systems are typically air conditioning, heating, electrical, and plumbing. Many home warranty companies provide add-on coverage for septic systems, locksmiths, central vacuums, and roof leaks. Cambridge homeowners should know that most home warranty policies have a 30-day waiting period before they will cover the cost of any repairs. Additionally, policies typically only cover repairs and replacements needed due to normal wear and tear. Home warranties don't cover things like natural disasters, pre-existing conditions, cosmetic issues, or improper use of a system or appliance. It's important to keep up with preventative maintenance to help ensure that your next repair or replacement is covered by the policy.

Key Home Warranty Terms to Know

Here are some key home warranty words to know before signing a contract:

• Contract rate: The rate that your home warranty provider has pre-negotiated with its contractors. Normally, this rate is lower than what you'd pay retail.
• 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.
• Trade call fee: An additional fee that some companies charge for appliance-related claims.
• Endorsements: Optional add-on coverage for systems such as pools, well pumps, septic and more. Endorsements typically come with an additional fee.
• Deductible: The amount you pay toward a covered repair before the warranty covers the rest. Some plans have per-claim or yearly deductibles.
• Service fee: The amount you pay our of pocket per claim for access to a contractor and repair coverage.
• Claim approval: The process providers use to determine whether a requested repair or replacement is covered under a home warranty plan.

With these important details in mind, you'll be able to better understand pricing and choose the right home warranty to protect your most essential home systems. During the quoting process, take care to review coverage details with potential providers to help avoid unexpected fees.

Key Factors in Choosing a Home Warranty Company

When you're deciding on a home warranty provider, there are several important things to take into account:

Coverage Options

Home warranty policies vary widely in what they include. Most plans cover AC, plumbing, heating, electrical, and appliances. More robust plans also offer protection for other items such as pools, roof leaks, well pumps, and spas. Look for a company that offers comprehensive coverage choices, including upgraded plans. You want the flexibility to customize coverage to fit your home's specific systems and needs.

Service Fees

With any home warranty claim, you'll pay a repair fee that typically ranges between $60 and $100, which is paid per service call made. The costs from multiple fees can add up. You may decide to look for providers with more affordable fees to maximize your savings on each claim. Some firms also offer disappearing deductibles when customers go a period with no claims filed.

Reputation

A home warranty provider's reputation provides insight into things such as repair timeliness, approval rates, contractor quality, and customer satisfaction. Check review platforms such as TrustPilot, the Better Business Bureau (BBB), or Google Reviews to research providers. Positive ratings and feedback indicate a provider known for great service.

Contractor Network

Home warranty businesses keep networks of local professionals to handle repairs in your area. Reach out to potential providers to find out how many repair professionals they have in Cambridge and get an idea for how quickly your repairs could take place in an emergency situation. Wider networks raise the likelihood of getting qualified contractors to swiftly service your home.

Added Benefits

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

Is a Home Warranty Worth it in Cambridge?

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Benefits of a Home Warranty

Since temperatures in Cambridge can hit the negatives in the winter, the extreme weather can put a lot of strain on your heating system. Purchasing a home warranty can help homeowners save money if one of these systems or appliances breaks down all of a sudden.

A home warranty also can also save you time and energy. Instead of spending hours researching and selecting a contractor to fix your appliance or system, home warranty providers do the hard work for you and send a trusted professional to your door whenever you need them. Additionally, having a home warranty can help make your house more appealing to potential homebuyers if you ever decide to sell later. Many home warranty providers will allow you to transfer your plan to a new owner and give them the same protection you’ve been getting.

Downsides of a Home Warranty

One disadvantage of getting a home warranty is that there are often exclusions. For example, if you already have a manufacturer's warranty on one of your appliances, it may be excluded from the home warranty, so it’s important to read over any contracts you’re considering thoroughly to understand what is included and what isn’t.

Another stipulation is that home warranties usually only cover damage from normal wear and tear. They most likely won’t cover home systems or appliances that need repairs or replacements due to natural disasters, animal infestations, improper maintenance, etc.