home warranty, be aware that some companies can be challenging to deal with or entirely unresponsive, making these service contracts frustratingly more costly than they should be.

As any homeowner will tell you, owning a home is expensive. In the Hockey State, where

severe winds

, heavy snow, and ice storms are annual threats, the costs of homeownership can climb even higher.

That’s why the

home

and

auto insurance

super app

Jerry

has put together this

handy guide

for one of the most common—and contested—forms of economical home security: a home warranty.

Here, we’ll share everything you need to know if you’re in the market for a home warranty in Minnesota or curious about the process.

What is a home warranty?

A home warranty is basically a service contract that usually lasts for one year after purchase. The agreement covers repair and replacement services for essential appliances and home systems such as plumbing, HVAC, ovens, dishwashers, and refrigerators.

By purchasing a home warranty, you’re paying for the ability to repair or replace those appliances or systems at a hugely discounted rate.

Home warranty vs. home insurance

“Hey! Isn’t that why I pay for home insurance?”

Not exactly. Here’s why: home insurance covers your home’s structure and contents against named perils. Your homeowners insurance may cover your dishwasher if it’s damaged in a house fire, for instance, but it won’t help replace the appliance when it eventually breaks down due to aging or wear and tear.

By contrast, a home warranty is solely created to handle the repair and replacement costs of essential appliances and systems in your home. While this sounds well and good, be aware that home warranties do not cover home items that have been purposefully damaged or worn out (owner negligence).

Do I need a home warranty in Minnesota?

Minnesotan homeowners are not required to enroll in-home warranty contracts—and the home warranty system is admittedly imperfect.

Yes, a warranty can provide a financial cushion to cover some home maintenance costs that insurance can’t help with, but in reality, some home warranties are more of a hassle than they’re worth.

Say you just bought a house and don’t have emergency reserves for unexpected costs. A warranty could help cover you until your savings are built back up. But if you’ve got enough money to pay for that warranty upfront—or on a payment plan—you may be better off sparing yourself the monthly installments.

How to choose a Minnesota home warranty

If you’ve decided that a home warranty is the right fit for you, make sure you compare plans from at least three different companies before signing any agreements. You’ll want to look for a plan that strikes the best balance between coverage options, payments (and service fees!), and customer service.

Look over the table below for an in-depth comparison of Minnesota's top five home warranty companies. Before you sign a home warranty agreement, make sure you read through the contract carefully to ensure that you’re getting the coverage you need without surprise terms and conditions.

Company	Monthly payment	Annual premium	Service fee	States not covered	BBB rating	Limits	What it’s best for
Choice Home Warranty	$36-$44	$517-$660	$60-$85	Washington	B	$500-$3,000	Fast response times, basic plan covers both systems and appliances
American Home Shield	$40-$58	$300-891	$75-$125	Alaska	B	$1,000-$6,000	Longest reputation, highest coverage limits, lower chance of service denial
Select Home Warranty	$36-38	$630-$765	$60-$75	Nevada, New Mexico, Washington, Wyoming	B	$500-$2,000	Discounts and response times
Liberty Home Guard	$40-$60	$700-$960	$65-$125	Washington, Wyoming	A	$500-$2,000	Best customer service, tons of coverage add-ons
Cinch	$35-$62	$420-$816	$75-$150	Alaska, Hawaii	B	$1,000-$2,000	180-day workmanship guarantee and tons of free perks

MORE:How to decide if you need home warranty insurance

The pros and cons of home warranties

If you’re

buying a house in Minnesota

, your agent may be pushing you to buy a home warranty as a must-have—or maybe a family friend is telling you that signing a home warranty agreement is a mistake.

Unfortunately, neither take is quite right. Whether a home warranty will benefit you depends on your finances, preferences, and personal circumstances. Let’s look at some of the biggest pros and cons of home warranties.

Pro: A home warranty can take the guesswork out of hiring contractors

Warranty providers only work with select contractors, meaning you won’t have to worry about finding the best repair person for the job.

Pro: No need for an emergency fund

The most practical reason for buying a home warranty is because it can provide some financial security in case of massive repairs. For example, the average cost to replace a home HVAC system may set you back between $5,000 and $10,000.

In some situations, even the $200 to $500 it costs to repair a fridge can cause financial setbacks if you don’t have that money readily available. Those high costs can be reduced using a home warranty—although you’ll still need to pay a service fee.

Con: You won’t deal directly with contractors

The company will be the middleman between you and the contractor. You won’t have direct contact, which leaves room for miscommunication, delayed services, and extra expenses—and you may not get to choose the replacements the contractor uses.

It’s best to skip the home warranty altogether if you want to work directly with the contractors making repairs.

Con: Low coverage limits and high service fees

A home warranty may not provide as much emergency coverage as you think. You may not be able to get the payout you need for more expensive repairs considering that average coverage limits range from $500 to $5,000.

Con: Warranty companies can deny coverage

Remember that gray area we mentioned earlier about companies being able to deny coverage? That comes into play here and is what makes home warranty companies so polemical: they regularly deny claims based on perceived “negligence”—even if you’ve kept up everything the best you can.

Many contracts allow the company to deny coverage if the previous owner didn’t properly care for an appliance or system. No matter how good your warranty terms may sound, actually getting the company to pay for repairs or replacements can be arduous.

MORE:

Homeowners insurance in Minnesota

How to find affordable homeowners insurance in Minnesota

Deciding to buy a home warranty can be a tricky decision—and it certainly isn’t for everyone. That said, homeowners insurance is a must-have for every homeowner—and with help from

Jerry

, saving money and time on your insurance is easier than replying to a text!

Jerry is a

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How much does a home warranty cost in Minnesota?

While the final cost of your home warranty depends on your particular contract and coverage options, you should plan to spend between $300 and $600 a year.

How long is a new home warranty in Minnesota?

Usually, home warranties provide one year of coverage. However, you can find plans that will last longer.

What is the best home warranty company out there?

The best home warranty company for you depends on your needs and budget. Still, American Home Shield is frequently rated as the overall best home warranty company because of its enduring service record and high coverage limits.

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