6 Best Home Warranty Companies in Mankato, MN

How Does a Home Warranty Work?

A home warranty is a protection plan that helps Mankato homeowners reduce the expenses of appliance and system repairs. The plans provide 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 exceeds the item's coverage limit. A home warranty gives homeowners peace of mind, as it helps avoid expensive emergency repairs. The coverage is especially helpful for owners of 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 cover your home systems and appliances. Common appliances covered include garbage disposals, dryers, dishwashers, refrigerators, washers, microwaves, and more. Covered systems are usually heating, electrical, plumbing, and air conditioning. Many home warranty companies provide add-on coverage for septic systems, roof leaks, central vacuums, and locksmiths. Mankato homeowners should know that most home warranty plans impose a 30-day waiting period before repairs are covered. What's more, most policies only cover the cost of repairs and replacements resulting from normal wear and tear. Home warranties don't include pre-existing conditions, natural disasters, cosmetic issues, or improperly using a system or appliance. Remember to keep up with preventative maintenance to help make sure your next repair or replacement is covered.

Key Home Warranty Terms to Know

Here are some key home warranty terms to understand 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.
• Service fee: The out-of-pocket cost you pay per claim for access to a contractor and repair coverage.
• Trade call fee: An added fee that you'll sometimes need to pay for appliance-related claims.
• Claim approval: The process by which your provider determines whether a requested repair or replacement is covered under your warranty.
• Deductible: How much you pay for a covered repair before your warranty covers the rest. Deductibles can be per-claim or yearly.
• Coverage limits: How much money your warranty provider will pay for specific repairs or replacements. Check limits on repairs for things like appliances, roof leaks, and air conditioning units.
• Endorsements: Optional add-on coverage for systems such as septic, pools, well pumps and more. Endorsements typically come with an additional fee.

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. 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 factors to consider when selecting a home warranty provider:

Coverage Options

Home warranties vary widely in terms of included coverage. Basic plans typically include AC, heating, plumbing, electrical, and appliances, while more comprehensive options may also cover roof leaks, pools, spas, and well pumps. Look for companies with a diverse range of coverage options, including upgraded plans. This allows you to customize your plan to your home's needs.

Service Fees

You'll pay a service fee, typically $60–100, for each claim filed with your home warranty provider. These fees to accumulate quickly with each claim, so you may seek out companies advertising more affordable fees to optimize savings on each repair claim. Certain providers may waive deductibles after a customer goes a period of time with no claims filed.

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 the Better Business Bureau (BBB), Google Reviews, or TrustPilot to research providers. Positive ratings and reviews indicate that a company is known for top-tier service.

Contractor Network

Home warranty companies have networks of professionals that they use to tackle covered repairs. Bigger networks raise the probability of getting skilled contractors to your home promptly. Reach out to possible providers to learn how many repair professionals they have in Mankato to understand how long repairs could take in an urgent situation.

Added Benefits

Home warranty providers sometimes include bonuses such as energy efficiency upgrades, maintenance discounts, and coverage for smart home devices. These extras can add value beyond basic repair coverage. Added perks help maximize the usefulness of the home warranty.

Is a Home Warranty Worth it in Mankato?

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Benefits of a Home Warranty

Mankato’s frigid winters can put a strain on a home’s HVAC system. Whether it’s summer or winter, a home warranty is designed to cover your home’s appliances and systems in the event they need to be repaired or replaced. For example, if your air conditioner fails in the middle of July, a home warranty can cover the necessary repairs, saving you from spending unexpected money out of pocket.

Not only does a home warranty give you some financial relief, but it also saves you time. If an appliance breaks, the last thing you want to do is find a repair person and schedule a repair. A home warranty deals with this process by sending trusted professionals to your door when you need them most. Additionally, having a home warranty can help make your house more attractive 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 protection you’ve been benefiting from.

Downsides of a Home Warranty

One disadvantage of signing up for a home warranty is that there are generally exclusions. For example, if you already have a manufacturer's warranty on one of your appliances, it may not be included in the home warranty, so it’s important to read through any contracts you’re considering thoroughly to understand what is included and what isn’t.

Another consideration 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, improper maintenance, animal infestations, etc.