6 Best Home Warranty Companies in Cottage Grove, MN

How Does a Home Warranty Work?

A home warranty is a protection plan that helps Cottage Grove homeowners reduce the costs of appliance and system repairs. The plans offer coverage to fix or replace appliances and systems that stop working due to normal wear and tear.

When something breaks down, you file a claim and pay a service fee. The home warranty provider then finds a contractor to handle the repair or replacement. Homeowners may have out-of-pocket costs only if the repair or replacement goes over the item's coverage limit. A home warranty policy gives homeowners peace of mind since it can help avoid expensive emergency repairs. They can be especially helpful for buyers of older homes or homes with appliances near the end of their life span. However, newer homes with appliances and fixtures in good condition may not need a home warranty.

What Does a Home Warranty Cover?

Home warranties safeguard your home systems and appliances. Common covered appliances include dishwashers, microwaves, washers, dryers, garbage disposals, refrigerators, and others. Covered systems include plumbing, heating, air conditioning, and electrical. Many home warranties offer additional add-on coverage options for central vacuums, locksmiths, septic systems, and even roof leaks. Most home warranty plans require Cottage Grove homeowners to wait 30 days before they can use the policy to pay for repairs. Moreover, policies usually only cover repairs and replacements resulting from normal wear and tear. Home warranties don't cover pre-existing conditions, cosmetic issues, natural disasters, or misuse of a system or appliance. To help ensure your next repair or replacement is covered, keep up with preventative maintenance.

Key Home Warranty Terms to Know

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

• Claim approval: The process by which your provider determines whether a requested repair or replacement is covered under your warranty.
• Trade call fee: An additional fee that some companies charge for appliance-related claims.
• Contract rate: The pre-negotiated rate a home warranty company has with its contractors. This rate is usually less than typical retail costs.
• Endorsements: Optional add-ons that expand coverage for additional systems like septic, pools, well pumps, and more. Endorsements typically cost an additional fee.
• 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.
• Deductible: The amount you're responsible for before your warranty covers the remainder of the cost. Deductibles apply to covered repairs and may be on a per-claim or yearly basis.
• Service fee: The out-of-pocket cost you pay per claim for access to a contractor and repair coverage.

Keeping these terms and key points in mind will help you understand pricing and pick a home warranty designed to protect your most important home systems. Be sure to discuss coverage details with potential providers when getting a quote, so you can avoid surprise fees.

Key Factors in Choosing a Home Warranty Company

There are several important considerations when choosing a home warranty provider:

Coverage Options

Home warranties have significant variation in what they include. Basic plans typically cover electrical, plumbing, heating, AC, and appliances, while more comprehensive plans may also cover pools, spas, well pumps, and roof leaks. Look for companies with varied coverage options, including upgraded plans. This helps you tailor protection to your home's needs.

Service Fees

You'll pay a standard service fee of around $60 to $100 for each claim filed with your home warranty provider. This fee is charged per request and can quickly add up, so you may look for companies advertising more affordable fees to optimize savings on each repair claim. Certain companies may waive deductibles when a homeowner submits no claims in a defined period.

Reputation

A home warranty company's reputation gives insight into things such as timeliness of repairs, contractor quality, claim approval rates, and overall customer satisfaction. Use third-party review sites such as the Better Business Bureau (BBB), Google Reviews, or TrustPilot to research companies. Positive ratings and reviews indicate a provider known for stellar service.

Contractor Network

Home warranty companies maintain networks of contractors to handle covered repairs. Wider networks improve the likelihood of getting qualified technicians to service your home ASAP. Contact potential providers to find out how many contractors they have in Cottage Grove to get a sense of how quickly your repairs could happen in an emergency.

Added Benefits

Some home warranty providers include perks such as energy efficiency upgrades, smart home device coverage, and reduced maintenance fees. These can offer extra value beyond just repair coverage. Extra bonuses help you enhance your home and get the most from your home warranty.

Is a Home Warranty Worth it in Cottage Grove?

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Benefits of a Home Warranty

Temperatures in Cottage Grove can drop to the negatives in the winter, which means your heating system is likely to get a decent amount of use. As a homeowner in Cottage Grove, one of the benefits of having a home warranty is knowing that these home systems and major appliances can be covered in the event they have to be repaired or replaced.

Not to mention, having a home warranty can save you time by eliminating the need to research repair people — most companies will send a trusted professional right to your door to carry out the necessary repair or replacement. Additionally, though home warranty companies vary, some providers will allow you to transfer your warranty if you sell your home. This can make your property more attractive to potential homebuyers and maybe even help your home sell faster.

Downsides of a Home Warranty

One drawback of buying a home warranty is that there are usually exclusions. For instance, 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 through any contracts you’re considering carefully to understand what is included and what isn’t.

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