American Residential Warranty Review (2022)

American Residential Warranty (ARW) stands out in the home warranty space for its  competitively-priced suite of customizable plan options, which are available to homeowners in all 50 states and Washington, D.C. Despite its nationwide availability, ARW distributes its coverage through a few smaller insurance underwriters in select states, which has made the service request process complicated for past customers. Read on to learn if American Residential Warranty is the best home warranty company for you.

Our Take on American Residential Warranty

Our in-house research team has analyzed over 60 of the top home warranty companies in the United States, including American Residential Warranty, using an unbiased and actionable editorial process per our methodology. Because ARW’s coverage is administered through a handful of smaller warrantors in select states, we’ve also factored each partner’s financial reputation and customer service accessibility into American Residential Warranty’s cumulative score.

American Residential Warranty Coverage and Plans

American Residential Warranty offers three base plan options: Kitchen Plus, Platinum Premier, and the comprehensive 4-in-1 Bundle. ARW’s most basic coverage level, Kitchen Plus, includes six kitchen appliances, interior electrical systems, and hot water heaters. Platinum Premier includes all items featured in Kitchen Plus and eight other built-in systems. ARW’s comprehensive yet expensive plan option, the 4-in-1 Bundle, wraps all items in Platinum Premier, the Deluxe Advantage package, and an electronics protection plan.

If you’re considering a policy with ARW, we recommend the Platinum Premier plan as it offers adequate coverage at half the price of the 4-in-1 Bundle. You will, however, be sacrificing a few major inclusions as coverage for laundry appliances and sewer lines is only included in the 4-in-1.

American Residential Warranty Plans

Add-on Options from American Residential Warranty

American Residential Warranty has 16 optional coverage add-ons for homeowners to choose from. Add-ons can be a great way for homeowners to fill any gaps in their standard policy without paying for more than what they need through a higher plan level.

When enrolling with ARW, if you find yourself gravitating toward more than two optional add-ons, you’ll save more money per month by opting for the next-most comprehensive policy.

Packages specific to the 4-in-1 Bundle, like Deluxe Advantage and Ultimate Electronics Protection, also unfold into a series of specific add-ons that would be otherwise excluded in Kitchen Plus or Platinum Premier. By default, investing in the most comprehensive plan available drastically reduces your likelihood of a claim denial.

Optional add-ons available for coverage:

• A/C Advantage — includes up to $500 per year for refrigerant and coils
• Plumbing Advantage — includes up to $500 per year for faucets, fixtures, toilets, wax seals, flange, and internal components
• Deluxe Advantage (only available to Platinum Premier policyholders) —
  • A/C refrigerant and coils
  • Refrigerant recapture
  • Plumbing faucets and fixtures
  • Mismatched systems
  • Garage door openers/springs/tracks
  • Permits/modifications/code violations
  • Toilets and internal mechanisms
  • Improper installation
• Ultimate Electronics Protection — covers new and used electronics and devices
  • Flatscreen TVs
  • Laptops/desktops
  • Tablets
  • Hand-held gaming devices and gaming consoles
  • Printers
  • Routers
  • At-home theaters
• Food spoilage — covers up to $250 per year in foods lost to an outage greater than 12 hours for refrigerated items and 24 hours for frozen items
• Well pump — covers up to $1,000 per year for all components and parts
• External water or sewer lines — Covers up to $2,500 per year for stoppages, excavation fees, and restoration fees (reseeding the lawn, repaving driveways, etc.)
• Second refrigerator or freezer
• Second range/oven/cooktop
• Second air conditioning unit 
• Pool and spa — covers all above-ground setups, specifically for heating and pumping systems, gaskets, moros, relays, impellers and check valves
• Clothes washer and dryer (to supplement Kitchen Plus and Platinum Premier plans)
• Built-in ice maker (to supplement Kitchen Plus and Platinum Premier plans)
• Ceiling fans  (to supplement Kitchen Plus and Platinum Premier plans)

Coverage details for top systems and appliances

Air Conditioning

American Residential Warranty only includes central air conditioning in Platinum Premier and the 4-in-1 Bundle, but not in Kitchen Plus. Standard A/C coverage includes up to $1,000 per year for repair or replacement costs related to condensers, thermostats, fuses, motors, fan control, and other mechanical components.

Homeowners who sign up for Kitchen Plus can still secure air conditioning coverage by purchasing the A/C advantage add-on. The add-on only offers up to $500 per year coverage for refrigerant and cooler.

Heating Systems

Like air conditioning, coverage for heating systems is only offered in Platinum Premier and the 4-in-1 Bundle. ARW will cover up to $1,000 per year in repair or replacement costs for gas, electric, and oil systems. Covered parts and components include gas valves, main burners, pilot burners, igniters, and more.

Plumbing Systems & Stoppages

Though Platinum Premier does offer coverage for plumbing systems and stoppages, fixtures are only covered in the 4-in-1 Bundle or with the purchase of the Plumbing Advantage add-on.

Aside from fixtures, ARW will cover all interior plumbing parts, including angle stops, risers, waste vents, p-traps, and interior hose bibs. Any plumbing issues beyond or below the perimeter of the home’s foundation are not eligible for coverage. For stoppages, ARW will cover clearings of mainline drain, sewer, and lateral drain stoppages up to 100 feet from a pre-existing access point. All plumbing issues and stoppages are covered for up to $500 in related repair or replacement costs per year.

Washer and Dryer

Coverage for clothes washers and dryers is only available as a standard item in the 4-in-1 Bundle. Customers who purchase Kitchen Plus or Platinum Premier and are looking for laundry appliance protection will need to purchase it as a coverage rider at sign-up. Most mechanical components are covered for both appliances. ARW won’t cover extraneous functional features like removable mini-tubs or buckets, filter screens, knobs, and dials, etc.

Electrical Systems

Interior electrical system coverage is included across all three base plans. No matter what policy level you select, you’ll be covered for up to $500 per year in maintenance costs for all interior AC wiring, including receptacles, fuses, switches, and single or two pole breakers. Light fixtures are not included in this coverage clause.

Refrigerator

Refrigerator protection is available in all three base plans, though at different degrees. While Kitchen Plus does offer refrigerator coverage, built-in ice makers are only covered starting at the Platinum Premier level. ARW will pay out up to $500 per year in repairs or replacements of nearly all mechanical components of your primary kitchen refrigerator. Coverage for secondary refrigerators and food spoilage are available as optional add-ons.

Not Covered by American Residential Warranty

Despite having a pretty exhaustive list of standard inclusions, American Residential Warranty doesn’t cover everything. Per ARW’s sample contract, specific coverage exclusions include costs related to:

• Unknown or known pre-existing conditions
• Routine maintenance such as coil cleaning, drain clearing, filter changing, etc.
• Damage caused by poor routine maintenance, improper installation, or intentional misuse
• Damage caused by natural disasters or any other scenarios that overlap with the scope of home insurance coverage
• Secondary damage as a result of a covered item failure (i.e., wood rot caused by a leaky kitchen faucet)
• Removal or remediation of mold, mildew, rot, or fungus

American Residential Warranty Costs

Though ARW’s policy premiums start fairly low at $39.99 per month, its coverage gets expensive quickly across its two more comprehensive options. Monthly rates increase by $25 between Kitchen Plus and Platinum Premier and $65 between Platinum Premier and the 4-in-1 Bundle. Should you ever decide to sell your home, ARW charges a $39 fee to transfer your coverage to the next homeowner.

Monthly Premiums

Given that the cost of a home warranty in the U.S. typically ranges between $35-$55 per month, ARW’s pricing sits slightly above the industry average. Still, as its most comprehensive policy option, the 4-in-1 Bundle offers far more inclusive coverage than competing home protection plans.

Like most home warranty providers, ARW allows its customers to pay either monthly or annually. Opting to pay for one year of coverage up front instead of on a month-to-month basis can save you:

• $85 on Kitchen Plus
• $180 on Platinum Premier
• $135 on the 4-in-1 Bundle

Add-on Costs

American Residential Warranty’s add-ons vary widely in price, with some as low as $9.99 per month and others as high as $70. All service requests made under an optional coverage rider will still be subject to a service fee, except for ARW’s food spoilage add-on.

Service Fees

American Residential Warranty charges a fixed trade service fee of $55, which falls well below the home warranty industry average of $75-$150. Once your coverage benefits are active, you’ll be required to pay this $55 out-of-pocket payment each time you request service for a new issue. A service call fee is essentially a deductible that goes toward labor costs and any extraneous travel expenses incurred by your technician on their way out to your home.

Coverage Limits

Standard HVAC inclusions and any items in the Deluxe Advantage are covered under a $1,000 annual coverage limit. For HVAC units over the age of ten, payouts are capped at $600 for your first year of coverage. This maximum increases by increments of $50 for each year you renew with ARW until the limit hits $1,000.

All other appliances and home systems covered by ARW are protected under a $500 annual per-item limit. Items over the age of ten are limited to a $300 payout maximum, which will increase up to $500 year over year. Though ARW doesn’t stipulate the number of claims you can file, it has an aggregate payout cap of $5,000 per year.

Cancellation Policy

ARW offers a 30-day money-back guarantee, however, cancellations are possible through a written notice to be mailed to American Residential Warranty headquarters in Boca Raton, Florida. Upon receiving your notice, ARW will cancel your policy at the end of the current month of coverage. Any cancellations initiated after your first 30 days of coverage have passed are entitled to a pro rate refund.

Availability

Though ARW does offer nationwide home warranty coverage, it has a partnership model in place in select states, which has at times made connecting to the right customer service representative complicated for past customers. Homeowners in CA, VA, IA, and TX are directly serviced through AIG Warranty and Asurion, not American Residential Warranty.

If you live in any of these affected states and would rather be able to work one-on-one with your home warranty provider, check out some other alternative companies below:

• Best home warranty companies in California
• Best home warranty companies in Texas
• Best home warranty companies in Virginia
• Best home warranty companies in Iowa

American Residential Warranty Reviews

Backed by an A+ rating from the Better Business Bureau (BBB) and 3.9 out of 5 stars on Google Reviews from approximately 852 customers, American Residential Warranty has a generally positive track record across online customer feedback platforms. Despite its mostly high ratings, we’ve featured some recent ARW testimonials below.

Customer Reviews

We read through 40+ reviews posted by current ARW policyholders within the past two years on popular online review platforms like the Better Business Bureau (BBB), Google Reviews, and TrustPilot, and pulled excerpts that we felt accurately highlighted both the positive and negative sides of the customer experience.

Here are a few of the public reviews from ARW customers that stood out to us:

“This is the best thing ever for new homeowners. Our garage door spring snapped 2 months after purchasing our home. We called ARW and 2 days later someone came out to replace the spring. The only thing we paid was our deductible. We opened our pool and had to get an electrician to come out to rewire our pool pump and just days later an electrician came out and all we paid was our deductible.” – Irene R., 08/30/2021

“American Residential Warranty has beat my expectations by a long shot; I was working with another warranty company that charges $100 per month/$100 per call. ARW charges me $70 and only $50 per call. The other company took 3 weeks to find a contractor to fix my furnace; my 2 calls to ARW have been handled within 3 days, with a reputable true “appliance” repair firm, whom I’ve also been pleased with. As soon as my warranty program on my other house is over the one-year contract, I’m changing it to ARW, too. Strongly recommend!” – Nicolette D., 5/29/2021

“Overall my experience is good. I do have concerns that the electricians and plumbers recommended for service are not licensed to work in the town. It would be nice if ARW would have a list of the licensed professionals. I had to pay out of pocket and wait for reimbursement.” – Cynthia A., 01/23/2021

Final Thoughts

American Residential Warranty sets itself apart from other leading home warranty service providers in ways that may or may not be right for you. With nationwide coverage, you won’t have to worry about finding a new home protection plan should you ever decide to sell your home and move out of state. Still, because of ARW’s partnership model, homeowners in TX, CA, IA, and VA will have to file claims through an affiliate insurance agency, which has made customer service needs harder to resolve for past policyholders.

Also, while most home warranty companies assign pre-screened, licensed service technicians from their internal contractor network, ARW customers are encouraged to hire their own contractor. While this gives policyholders more control over who performs covered work on their home appliances and systems, it also makes the coverage process less hands-off and negates ARW’s liability to cover faulty work after the home repair or replacement is complete.

ARW’s most comprehensive policy is more expensive than similar home warranty plans on the market, so we recommend this provider to seasoned homeowners who understand their home’s coverage objectives. American Home Shield is a comparable home warranty company with cost-effective yet comprehensive coverage and almost 40 more years of industry experience than ARW.

To get a quote from American Home Shield, fill out this online form or call 888-365-2839.

Compare American Residential Warranty to Other Home Warranty Companies

*Note: The cost of premiums will vary on plan, location, and service fee selected.

Company information

• Company name: American Residential Warranty (ARW)
• Company type: Limited Liability Company (LLC)
• CEO: Josh Brauser
• Founding date: 2/5/2009
• Years in business: 13
• Phone number: 855-997-3793
• Address: 901 W Yamato Rd Ste 100E Boca Raton, FL 33431-4409
• State availability: All 50 states and Washington D.C.
• Service fee: $55
• BBB rating: A+
• BBB accreditation: Not accredited
• Number of BBB complaints closed within last 3 years: 79 complaints

House Method Home Warranty Ranking Methodology

At House Method, transparency and trust are our most important values for the reader. That’s why we took the time to create an objective rating system and score each home warranty provider according to our methodology.

We’ve done the homework for you and have researched over 50 home warranty companies so you can have the information you need to make the best choice for your home. Additionally, transparency and trust are our most important values for the reader.

That’s why we took the time to create an objective rating system and score each home warranty provider according to our methodology. Our team spent hours on the phone speaking to representatives from each home warranty company to get information right from the source. We also dug into the fine print on each company’s service agreement to make sure no detail was left out.

To make the most of our research, we developed a formula to objectively determine the best home warranty companies based on the following criteria:

• Plans: Do they provide a variety of plan options? We looked at the number of plans each company offered and the flexibility of adjusting the plan.
• Prices: How reasonable are the monthly fees and service fees in comparison to the industry average? We compared the costs of each company to competitors.
• Coverage: How many items are covered in each plan? We looked at the number of items each company covers. We dig into all service contracts available to get all the details.
• Customer service: How is the customer experience when calling the providers? Based on our phone calls, we were able to judge each company’s customer service.
• Trust: What do customers rate the company? We looked into what customers are saying about their experience with the company.
• Nationwide availability: How many states does the company cover? We found the number of states covered by each company.
• Unique perks: Does the company offer discounts or cover special items? We looked for perks offered by each company that sets them apart from the competition.

How do we keep our data up to date?

We want to make sure we’re providing you, the consumer, with the most current data available for every home warranty company we’ve researched and rated. That takes significant effort but we feel that’s vital to providing you thorough and trustworthy reviews.

With that in mind, we have dedicated staff members who regularly update our database of home warranty research.

For those that want to come home to a house that is comfortable and functioning, a home warranty makes a lot of sense. For the price that a home warranty is offered, you will quickly learn that it is indeed a good value. At an average of around $40 per month, your policy will cost you just under $500 per year.

If you have ever had an appliance or a home system that needs repair, you probably understand quite well that you will quickly reach that $500 mark to get your home back up and running. Take your time to carefully consider your home warranty options, check around for discounts and then give yourself the peace of mind that you deserve.

For more details, check out our affiliate disclosure and rating methodology.