6 Best Home Warranty Companies in Detroit Lakes, MN

How Does a Home Warranty Work?

A home warranty is a protection plan that assists Detroit Lakes homeowners cut the expenses of appliance and system repairs. The plans provide financial coverage to fix or replace appliances and systems that break down due to normal wear and tear.

When something breaks down, you file a claim and pay a service fee. The home warranty company then finds a contractor to handle the fix or replacement. Homeowners may have out-of-pocket costs only if the repair or replacement exceeds the item's coverage limit. A home warranty gives security for homeowners by helping them prevent expensive emergency repairs. They're particularly valuable for those who own older homes or ones with aging systems. More modern builds with functional appliances probably don’t require a home warranty.

What Does a Home Warranty Cover?

Home warranties help protect both your home systems and appliances. Common appliances covered under a home warranty include refrigerators, dryers, dishwashers, washers, microwaves, garbage disposals, and more. Covered systems include electrical, air conditioning, plumbing, and heating. Many home warranties offer additional add-on coverage options for central vacuums, septic systems, locksmiths, and even roof leaks. It's important for Detroit Lakes homeowners to know that most home warranty policies have a 30-day waiting period before they can be used to cover repairs. Additionally, most policies only cover repairs and replacements needed due to normal wear and tear. Home warranties don't cover things like pre-existing conditions, cosmetic issues, natural disasters, or misuse of a system or appliance. Make sure to keep up with preventative maintenance to help ensure that your next repair or replacement is covered by your policy.

Key Home Warranty Terms to Know

There are multiple home warranty terms to understand before signing an agreement, including:

• Endorsements: Optional add-ons that expand coverage for additional systems like well pumps, septic, pools, and more. Endorsements typically cost an additional fee.
• Trade call fee: An additional fee that's sometimes required to appliance-related claims.
• 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 out-of-pocket cost you pay per claim for access to a contractor and repair coverage.
• Coverage limits: The maximum dollar amount that your warranty provider will pay for certain repairs or replacements. Check your contract's limits on repairs for things like appliances, roof leaks, and air conditioning units.
• 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.
• Claim approval: The process by which your provider determines whether a requested repair or replacement is covered under your warranty.

Keeping these key details in mind will help you understand pricing and pick a home warranty designed to protect your most important home systems. Make sure to discuss coverage details with potential providers when you get a quote to avoid surprise fees.

Key Factors in Choosing a Home Warranty Company

When selecting a home warranty provider, there are several important factors to consider:

Coverage Options

Home warranty plans can have major differences in covered items. Most plans cover electrical, plumbing, heating, AC, and appliances. More inclusive options also offer protection for other items such as well pumps, roof leaks, spas, and pools. Look for providers with varied coverage options, including upgraded plans. This allows you to customize your plan to your home's needs.

Service Fees

Homeowners should anticipate paying a $60–100 service fee when filing home warranty claims. These per-claim costs can add up, so some homeowners prefer using companies with more affordable per-claim fees to maximize savings. Some providers also offer disappearing deductibles after periods where a customer files no claims.

Reputation

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

Contractor Network

Home warranty companies use networks of local repair professionals to manage repairs in a given area. Contact potential businesses to learn the number of repair technicians they have in Detroit Lakes and get an idea of how quickly your repairs could be handled in an emergency. Bigger networks raise the likelihood of getting qualified contractors to swiftly service your home.

Added Benefits

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

Is a Home Warranty Worth it in Detroit Lakes?

---

Benefits of a Home Warranty

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

On top of saving you money on out-of-pocket expenses, a home warranty can provide you peace of mind and save you the hassle of trying to find a qualified technician to visit your home. Home warranties usually come with a network of pre-vetted contractors who can handle any repair issues you may have. A home warranty can also provide value in other ways. For instance, some plans can be transferred to another owner when you sell your home.

Downsides of a Home Warranty

Home warranties also have some downsides. Although it can give you less to worry about since the home warranty sends out a service technician who handles the repair for you, some may not like this, and they would rather select a contractor themselves. If that’s important to you, some home warranty providers let you choose a contractor.

Another thing to take into consideration is that some providers don’t cover pre-existing damage and may require an inspection before coverage begins. Ask the home warranty company for clarification about these things if you need more information or if this is an issue for you.