First American Home Warranty Review (2021)

First American Home Warranty (FAWH) has been a leader in the home warranty industry for over 35 years, serving more than 590,000 customers. What distinguishes them from other home warranty companies is that First American Home Warranty offers the First Class Upgrade optional coverage, which covers systems and appliances even if they were improperly installed, modified, or maintained.

Below is House Method’s 2021 First American Home Warranty review. We compare the company’s plans and pricing, do a deep dive into the company, show how it stacks up against its competition, and provide reviews from current and previous customers.

First American Home Warranty plans, coverage, and cost

FAHW offers two plans—a Basic Plan and a Premier Plan—at a cost of $38–$48.50 per month. The exact price of your home warranty plan will depend on your location and the type of coverage you choose. They also offer optional coverage for items like your pool, well pump, and central air conditioning, for an additional cost.

Basic Plan: $38.00 per month ($420.00 per year). This plan covers essential home appliances.

Premier Plan: $48.50 per month ($546.00 per year). Under this plan, all major home systems and all items in the Basic Plan are covered.

Optional add-on coverage: FAHW offers optional coverage for six home items. To get pricing for these items, call or request a free quote online.

• Central air conditioning (electric)—Unfortunately, air conditioning is not covered in either plan, so you’ll have to add this on if you want air conditioner coverage. Air conditioner units do not have a coverage cap, however, cost for diagnosis, access, repair or replacement of geothermal or water source heat pump, glycol, heated water, steam or water heater/heating combination unit has a coverage limit of $1,500.
• Additional refrigeration—If you have a second refrigerator, a wet bar refrigerator, or a wine refrigerator, you can add this coverage to your current plan.
• Pool/Spa equipment—The cost to repair or replace pool and spa equipment can range between $600–$2,100. With additional pool warranty coverage, you’ll have protection for your filters, pumps, timers, valves, heating units, pump motors, and more.
• Well pump—All parts of a well pump used for domestic use are covered. Note: FAHW offers customers up to $1,500 for well pump coverage.
• Septic/septic tank pumping—Select covers septic tank pumping and septic systems for an additional $84 each.
• First Class Upgrade—If you choose to opt into this upgrade, you’ll receive coverage for the following items:
  • Fees associated with the use of lifting equipment (i.e. cranes) that are required to service rooftop HVAC
  • Up to $250 per local building permits if needed prior to replacing appliances, home systems, or components
  • Refrigerant recapture, reclaim, and disposal
  • Haul away services (this is when the company pays costs related to the removal of an appliance, system, or component)
  • Appliances and systems that have been insufficiently installed or modified

Note: You also have the option of including pest control services for termites.

With this type of coverage, we recommend FAHW to home buyers whose appliances or systems were included in their real estate transaction since the previous owners may not have installed or maintained an appliance correctly. Additionally, they may have modified these systems and appliances in a way that you’re unaware of—if so, FAHW will still provide coverage of your items unlike some other home warranty providers.

*Note: FAHW charges a $85 service call fee, which is in line with the industry average. You’ll have to pay this fee anytime a contractor comes to your house to diagnose an issue on a covered item.

Price of First American Home Warranty vs. competitors

Details for top systems and appliances

Our team at House Method wanted to understand which major appliances and systems were most important to homeowners. To get this data, we surveyed 1,000 homeowners and asked them which systems and appliances they valued most. From our results, we gathered that the top three systems that are most important to homeowners are the electrical, plumbing, and air conditioning. The top three appliances that hold the most importance are the refrigerator, washer/dryer, and oven/stove/range.

Here’s a closer look at First American Home Warranty’s coverage:

• Refrigerator: All parts and components that fail due to normal wear and tear will be covered under your home warranty. Here are some parts that are not included with refrigerator coverage: insulation, racks, shelves, drawers, handles, lights, ice crushers, and beverage dispensers.
• Oven/stove/range: The only parts of these appliances that aren’t covered include the rotisseries, lights, knobs, dials, racks, door glass, interior lining, magnetic induction cooktops, meat probe assemblies, and clocks. If you want protection for the rotisseries, racks, knobs, dials, and interior lining, you can purchase additional coverage by adding the First Class Upgrade for $9/month.
• Clothes washer and dryer: All parts of your washer and dryer are covered except any plastic mini-tubs, soap dispensers, filter and lint screens, knobs and dials, and venting.
• Electrical: Did you know that an electrical system replacement can cost almost $2,000? With FAHW electrical coverage, you can have peace of mind and know that the following electrical parts and components are covered: plugs, wiring, conduit, junction boxes, telephone wiring, switches and fuses, panels, sub panels, and circuit breakers. Door bells, smoke alarms, and intercoms are not included.
• Plumbing: This is included in FAHW’s Basic and Premier Plans. You’ll get coverage for pressure regulators; circulating hot water pumps; whirlpool bath motors, pumps, and air switch assemblies; permanently installed sump pumps; valves; and much more.
• Air conditioning: FAHW is one of the only home warranty companies that doesn’t provide basic coverage for air conditioning in their plans. Even though it’s available for consumers to add on as optional coverage, we don’t think this is exceptional, seeing as how most homeowners use air conditioning on a daily basis and should have access to this coverage without paying an additional fee.

Coverage length

Home warranty coverage starts 30 days after you sign your contract and lasts for a standard 12 months with the option to renew at the end of the year (unless you’re a seller who has enrolled in basic coverage for your home while it’s listed). Sellers’ listing coverage lasts 180 days or until the close of sale or listing cancellation, whichever comes first.

As far as cancellation goes, the policy differs from state to state. The company’s customer service team encourages you to request a quote, apply for coverage, and then thoroughly read your service agreement before signing.

Coverage limits

Coverage limits to the Basic Plan include home systems and appliances that are malfunctioning due to improper maintenance or installation. To get coverage for these items, you’ll have to choose the First Class Upgrade. Unlike other home warranties, First American will cover malfunctioning items due to an unknown defect.

The sample contract reads, “[First American] will repair or replace a system or appliance (excluding roofs and ductwork) that was improperly installed, modified or repaired, or was not properly matched in size or efficiency at any time prior to or during the term of this contract.”

First American Home Warranty is not available in Alaska, Connecticut, Delaware, Hawaii, Illinois, Louisiana, Maine, Massachusetts, Minnesota, New Hampshire, New Jersey, New York, North Dakota, Rhode Island, Vermont, or Wisconsin.

Our take

First American Home Warranty is definitely one of the more experienced home warranty providers in the industry, having been in business for over 35 years. Though it’s not as old as American Home Shield, FAHW still has years of experience over companies like Select Home Warranty and The Home Service Club.

Regarding coverage, they do have comprehensive coverage, however, it doesn’t include basic coverage for air conditioning. If you want AC coverage, you’ll have to tack on optional coverage at an additional cost. Another drawback is that they only cover 35 U.S. states, meaning 30% of the U.S. isn’t covered. While this may not sound like a lot, the top home warranty companies cover anywhere between 40–50 states.

Finally, FAHW doesn’t have the best reputation regarding customer service in the past. Prior to 2019, it appeared that the company was so-so at responding to service requests and providing quick and efficient coverage for necessary repairs and replacements according to customer reviews. Since then, FAHW has upped their customer service satisfaction and even claimed a Best Customer Service Award in 2020. FAHW was also in Fortune’s 100 top companies to work for in 2019.

While the company provides great HVAC coverage and seemingly improved customer service, we believe there are other home warranty companies out there that give you better coverage at a more affordable cost.

What others are saying

As a consumer, you probably don’t have the time to sit around and sift through the hundreds of reviews left by customers. That’s where we come in. At House Method, we go through user complaints, feedback, and ratings of each home warranty company and compile that information in a chart that’s easy for you to read.

Below, we’ve included First American Home Warranty ratings compared to the industry average.

First American Home Warranty reviews

Although many FAHW reviews on the Better Business Bureau (BBB) site are negative, it’s important to remember these complaints have been accruing for 35 years. The BBB even raised First American’s score to a B because the home warranty company made a significant effort to address and resolve customer complaints over the years.

Here are a few FAHW reviews submitted to the BBB from customers:

Jainy M. on August 8, 2021, said:

First American Home Warranty does everything possible to close your claim. For us, it was getting 3 different air conditioner repair companies to look at and make the proper repairs. We didn’t give up the first time and were insistent, but First American didn’t give up on us until we were satisfied.

Verlee T. on August 4, 2021, said:

We have used First American Home Warranty for many years, with coverage for 4 different homes we have owned. We have never had issues with the contractors they have sent, nor with the work done. We have had to come out-of-pocket a few times, because California codes were changed and the water heater was not up-to-date, etc.. But we find the contractors get the work done in a timely manner, and always accurate and complete.

Ji H. on July 21, 2021, said:

I have a leak in my basement, I called First American and the contractor they sent came 3 times but couldn’t fix the problem. It has been 2 weeks that I can’t use my shower! Totally sucks! I guess they just lost another customer.

Todd C. on July 20, 2021, said:

Pleasantly surprised at how simple it was to get my water heater repaired. The contractor wasn’t the most efficient but the process as it relates to First American was just fine. The policy premium has proven to be well worth what I paid.

Final thoughts

House Method gives First American Home Warranty 3.3 out of 5 stars. It’s been in the business long enough to know what customers want and need, and the company’s customer service has made evident strides to show it cares. From our review of the company, we deem them the best for HVAC coverage. 

FAHW is a good choice for you if…

• you own an older home.
• you’re unsure whether your systems and appliances have been properly installed or modified.
• you’re a real estate professional who’s interested in free marketing materials.

FAHW might not be your first choice if…

• you have brand new appliances that are already protected under a manufacturer’s warranty.

Compare First American to the competition

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. Our team spent hours on the phone speaking to representatives from each home warranty company to get information right from the source.

Our rating system involves a weighted, 100-point scale that scores home warranty companies on plans offered, coverage, state availability, cost, trustworthiness, customer service, and unique benefits.

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

Company information

• Company name: First American Home Warranty Corp
• Company type: Public
• Ticker symbol: FAF
• CEO: Kristin Swan, Principal
• Founding date: 2/8/1984
• Years in business: 35 years
• Telephone: 833-204-7164
• Address: P.O. Box 7248
• State/province: Santa Rosa, CA
• Postal code: 95407
• State availability: 35 states
• Service fee: $85
• BBB rating: B
• Number of BBB complaints closed within last 3 years: 3,140