6 Best Home Warranty Companies in Orono, MN

How Does a Home Warranty Work?

A home warranty is a protection policy that helps cut costs for Orono homeowners needing appliance and system repairs. These plans provide financial coverage to fix or swap out appliances and systems that stop working due to 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 fix 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 provides peace of mind for homeowners by helping them avoid expensive emergency fixes. They're particularly valuable for those who own older homes or ones with outdated systems. More modern builds with functional appliances probably don’t require a home warranty.

What Does a Home Warranty Cover?

Home warranties protect your home's systems and appliances. Typical covered appliances include refrigerators, washers, microwaves, garbage disposals, dryers, dishwashers, and others. Protected systems include electrical, heating, plumbing, and air conditioning. Various home warranty plans offer extra coverage for roof leaks, septic systems, central vacuums, and even locksmiths. Orono homeowners should know that most home warranty plans begin with a 30-day waiting period before repairs are covered. Additionally, most policies only address repairs and replacements due to normal wear and tear. Home warranties don't include pre-existing conditions, cosmetic issues, natural disasters, or misuse of a system or appliance. You must keep up with preventative maintenance to help ensure your next repair or replacement is covered.

Key Home Warranty Terms to Know

Home warranties use several terms that you'll want to learn before signing a contract, such as:

• 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 amount you pay our of pocket per claim for access to a contractor and repair coverage.
• Endorsements: Additional coverage for systems like well pumps, septic, and pools, which usually comes with a fee for each add-on.
• Claim approval: The process by which your provider determines whether a requested repair or replacement is covered under your warranty.
• 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.
• 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 roof leaks, appliances, and air conditioning units.

With these important considerations in mind, you'll be able to understand pricing and choose a home warranty customized to protecting your most essential home systems. During the quoting process, 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 warranties have significant variation in what they include. Basic policies typically provide protection for plumbing, AC, heating, electrical, and appliances, while more comprehensive options may also cover roof leaks, pools, well pumps, and spas. Look for companies with an array of coverage options, such as upgraded plans. Flexibility helps you tailor your protection for your 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 provider's reputation provides insights into factors such as claim approval rates, repair speed, contractor expertise, and customer satisfaction. Look at review sites like TrustPilot, the Better Business Bureau (BBB), or Google Reviews to learn more about providers. Good ratings and feedback suggest a company known for providing quality service.

Contractor Network

Home warranty companies have networks of professionals to handle covered repairs. Bigger networks increase the probability of getting qualified technicians to swiftly service your home. Reach out to potential providers and ask how many contractors they have in Orono to get a sense of how quickly your repairs could be handled in an emergency.

Added Benefits

Home warranty companies might include perks such as coverage for smart home devices, maintenance discounts, and energy efficiency upgrades. These add value beyond just repair coverage. Additional perks help maximize the usefulness of the home warranty.

Is a Home Warranty Worth it in Orono?

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Benefits of a Home Warranty

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

Along with saving you money on out-of-pocket expenses, a home warranty can offer you peace of mind and save you the pain of trying to find a qualified contractor to visit your home. Home warranties usually come with a network of pre-vetted technicians who can handle any repair issues you may experience. Another benefit of having a home warranty is if you want to sell your home, some providers let you transfer your home warranty plan to the new owners. This can make your home more attractive to potential homebuyers and may help your house sell faster.

Downsides of a Home Warranty

There are also some downsides to getting a home warranty policy, like the coverage exclusions. For example, home warranties may not cover home systems or appliances that are already covered by a manufacturer's warranty.

Another potential pain point of home warranties is that they don’t cover items that have been improperly maintained. This can lead to your repair requests being denied, so it’s important to carefully follow the manufacturer’s guidelines for maintenance of your home systems and appliances.