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First American Home Warranty Plans, Coverage And Reviews For 2022

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Published on March 23, 2022
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Fixing or replacing any of your major household appliances could be a serious drain on your savings account. If you’re looking for a way to protect your home’s appliances and systems when they need to be repaired or replaced, a home warranty may be the best option for you.

And one of the major providers of this financial safety net is First American Home Warranty.

But is this company reliable, and what does a home warranty with First American Home Warranty cover? What protection doesn't it offer?

Read on to learn more about First American and how this warranty program works.

First American Home Warranty Overview

First American Home Warranty has been working with homeowners since 1984. According to the company, First American works with more than 850 associates who serve more than 590,000 clients.

First American offers two coverage options: the Basic Plan and the Premier Plan. They cover a wide range of appliances and home systems, including dishwashers, garbage disposals, ovens, electrical systems, washers, dryers, plumbing, ductwork, water heaters and many others. If a covered item breaks down, the company's warranties will make a payout to cover all or part of the cost of repairing or replacing that appliance or home system.

Homeowners pay either a monthly or annual fee to receive this coverage. The size of this fee varies depending on your home, coverage level, how often you pay and the length of your contract.

You can expect to pay about $28 a month for the Basic Plan and $42.50 a month for the Premier Plan, which covers more appliances and systems.

You’ll also pay a service fee of $85 each time a contractor comes to your home. This service fee is paid directly to the contractor. If you call someone to repair your home’s water heater, dishwasher or dryer, you’ll have to pay this $85 fee no matter what repair work is needed.

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How Does A Home Warranty Differ From Homeowners Insurance?

While a warranty does provide a financial safety net to homeowners, It’s important to understand the difference between a home warranty and home insurance.

Homeowners insurance covers the costs of rebuilding a home if it’s damaged or destroyed by a natural disaster or unexpected event, like a house fire. also protects assets or valuable items if they are damaged or stolen.

These policies provide liability protection, too. This helps cover any medical or legal bills when people are injured while at your home. Mortgage lenders require homeowners insurance before you can take out a home loan.

Home warranties, on the other hand, provide coverage if a specific appliance or home system needs to be repaired or replaced.

First American Home Warranty Plans

Homeowners can choose from two different First American Home Warranty coverage options – the Basic Plan and the Premier Plan. As the name suggests, the Premier Plan covers a larger number of home systems and appliances.

 

Basic Plan

Premier Plan

Washer-Dryer

Yes

Yes

Refrigerator

Yes

Yes

Dishwasher

Yes

Yes

Oven Range

Yes

Yes

Cooktop

Yes

Yes

Microwave

Yes

Yes

Trash Compactor

Yes

Yes

Garbage Disposal

Yes

Yes

Plumbing

No

Yes

Plumbing Stoppages

No

Yes

Heating

No

Yes

Water Heater

No

Yes

Electrical

No

Yes

Garage Door Opener

No

Yes

Ductwork

No

Yes

Central Vacuum System

No

Yes

Basic Plan

Best For: Homeowners who want to spend less for basic coverage and are more interested in protecting their home appliances, not their home systems.

Pricing: This will vary according to where you live and your home type, but you can expect to pay about $28 a month for the Basic Plan.

Premier Plan

Best For: Homeowners who want to cover as many systems and appliances as possible and don’t mind paying a bit extra each month for this protection.

Pricing: About $42.50 a month, though this price might vary depending on where you live, whether you pay annually or monthly and how large your home is.

First-Class Upgrade

The First-Class Upgrade package is one that real estate agents can offer to their clients. It costs an additional $9 a month and includes the following coverage:

  • Building permits: First American will help cover the costs when homeowners must take out building permits when replacing home appliances or systems.
  • Botched installations: The First-Class Upgrade package provides coverage for botched installations and modifications that were completed before homeowners signed up for their home warranties. Homeowners, though, must have had no prior knowledge of these problems before signing a contract with First American.
  • Refrigerant: The upgrade package helps pay for the costs homeowners incur when they must remove or recapture refrigerant.
  • Removal: Service technicians will take away appliances, systems and components that they replace.
  • Plumbing coverage: The upgrade plan provides coverage for the replacement of faucets, shower heads, shower arms, hose bibbs and toilets up to $600 an occurrence.
  • Heating: First American will cover fees associated with the use of cranes or other lifting equipment required to service roof-top heating units.
  • Garage door openers: The company will cover the cost of replacing hinges, springs and remote transmitters.
  • Ductwork: The upgrade plan will cover the costs of replacing grilles and registers.

Optional Add-Ons

If you want a home appliance or system covered that isn't included in First American Home's Basic or Premier plans, you can purchase optional coverage. The add-ons available to customers are:

  • Additional refrigeration (up to 4 units): $4 per month
  • Central air conditioning: $9 per month
  • Pool and spa equipment: $15 per month
  • Well pump: $7 per month

Common Coverage Exclusions

Any home system or appliance not listed in your warranty contract is excluded from coverage. If you purchase First American Home Warranty's Basic Plan and your water heater or garage door opener breaks down, these items would not be covered.

First American also lists some of the more common expenses that are excluded from their coverage:

  • Code upgrades: If you need to update home systems that no longer meet your municipality's codes, your warranty won't cover the costs of bringing these systems up to code.
  • Structural modifications: First American's warranties don't cover structural modifications. If you need to pay for a new roof, replace your home's electrical system or repair its sagging foundation, your warranty won't pay out.
  • Secondary damage: Warranties also don't cover the costs of mitigating secondary damage after a home is hit by fires, floods or other disasters. Secondary damage after a flood might include mold that develops because an area of the home was not dried out properly. A flood might also cause the wood in a home to rot. First American's home warranties won't cover the cost of repairing this secondary damage.
  • Cosmetic changes: First American Home Warranty plans don’t cover cosmetic changes, or changes you want to make based on how your appliances look rather than how they’re functioning.

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Why We Like First American Home Warranty

What makes a warranty from First American Home Warranty a good choice? Here are a few reasons.

No Home Inspection Required

You won’t have to pay for a home inspection before signing a contract with First American Home Warranty. This is a benefit because home inspections aren’t free and can cost about $450 depending on the size and location of your home. Companies that require a home inspection might turn down your request for coverage if they find too many problems with your residence.

Unlimited Service Requests

With First American Home Warranty, you can call plumbers, electricians and other technicians to your home as often as you’d like. There is no limit set on the number of service calls you can make. The number of service calls also won’t cause your monthly fee to rise or fall.

Optional Building Permit Coverage

As part of First American's First-Class Upgrade plan, the company will help pay for the cost of building permits that are required when homeowners need to replace appliances, systems or components. First American will pay up to $250 to cover the costs of these local building permits.

24/7 Claims Service

You can call First American at any time of day, any day of the week, for service calls. The company staffs its call center 24 hours a day, 7 days a week. This doesn’t mean that a service technician will come to your house at 2:00 a.m. You can put in a service call, but many technicians only take on service calls during regular business hours.

First American Home Warranty Reviews

How do you know if First American Home Warranty is right for you? It helps to research reviews from other websites across the internet. Here’s a look at a few sites, their reviews of First American Home Warranty and the pros and cons.

U.S. News & World Report

U.S. News & World Report gives First American Home Warranty a ranking of four out of five stars.

Pros

  • Low monthly fee.
  • Fixed service fee.

Cons

  • Not much flexibility. First American offers just two coverage plans.
  • Coverage is not available in all states.
  • No coverage for roofs.

Home Warranty Reviews

Home Warranty Reviews gives First American Home Warranty a ranking of three out of five stars.

Pros

  • Unlimited service calls.
  • Plans can be cheap, starting at $28 a month.
  • You don't need a home inspection before getting a warranty.

Cons

  • Homeowners must pay to add on different systems and appliances not covered in the company's two plans.
  • Coverage limits aren't high enough for some repairs.

BestCompany.com

BestCompany gives First American a ranking of 3.9 stars out of five.

Pros

  • 24/7 claims service.
  • Plans that cover many systems and appliances.
  • First American has been in business for many years.

Cons

  • Coverage for air conditioning units is an add-on that costs extra.
  • Some clients complain of bad customer service, delayed service time and hidden coverage fees.

First American Home Warranty FAQs

Here are some frequently asked questions regarding First American Home Warranty.

For which states does First American Home Warranty offer coverage?

First American Home Warranty offers coverage in most states. The only states that the company does not operate in are Alaska, Connecticut, Delaware, Hawaii, Illinois, Louisiana, Maine, Minnesota, New Hampshire, New York, North Dakota, Rhode Island, Vermont and Wisconsin.

Are there any age limits on systems and appliances that the First American will cover?

No. First American Home Warranty will cover all appliances and systems regardless of their age as long as they are in working condition before homeowners sign their contracts.

Is there a waiting period before I can request service?

New customers typically must wait 30 days after signing a contract before they make their first service request.

The Bottom Line

If you’re worried about covering the cost of replacing or repairing your home’s appliances or systems, a home warranty might be a smart move. Just be aware that these warranties don’t come cheap and will cost you a monthly or annual fee. Be sure to read the fine print to learn what is and isn’t covered.

Before making a decision on any home warranty company, compare top home warranty companies to find the home warranty that’s right for you.

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Andrew Dehan

Andrew Dehan is a professional writer who writes about real estate and homeownership. He is also a published poet, musician and nature-lover. He lives in metro Detroit with his wife, daughter and dogs.