First American Home Warranty Review (2022)

Since 1984, First American Home Warranty (FAHW) has served as a leader in the home warranty industry, distributing more than 8.9 million home warranties during its time in business. House Method’s in-house research team nominated FAHW as the best home warranty company for appliance insurance on the market, specifically for its generous $3,500 per-item annual coverage allowance on all included appliances for just $38 per month. 

To help you determine whether First American Home Warranty is the right provider for you, we dug through the fine print of FAHW’s service contract and summarized the most important bits to know in this review.

For a free quote from First American Home Warranty, call 833-204-7164 or get a quote online.

Our Take on First American Home Warranty

After evaluating 60+ home warranty companies across the U.S., we scored First American Home Warranty with 4.2 out of 5 stars. To assign this rating, we closely evaluated the overall quality of FAHW’s standard home protection plans, as well as its financial strength, cost-to-coverage ratio, and commitment to customer service, among other benchmarks, as disclosed in our methodology. 

First American Home Warranty Coverage and Plans

First American Home Warranty carries two base plans: the Basic Plan and the Premier Plan. The Basic Plan is an appliance-only option offering tier-one coverage for repairing or replacing 12 home appliances. For roughly $10 more per month, the Premier Plan provides comprehensive protection against everyday wear and tear for a mix of 20 major systems and appliances

FAHW offers adequate coverage for most home types and homeowner budgets. Still, we especially recommend this provider to anyone who recently purchased a home with any chattels or fixtures.

Hand-me-down appliances and systems can come with many unknowns — previous owners may not have maintained, installed, or used the item correctly, even if it passes inspection. Unlike many competing providers, FAHW will cover items of any age with unknown pre-existing conditions or signs of visible rust, corrosion, and sediment.  

First American Home Warranty Plans

Add-on Options from First American Home Warranty

First American Home Warranty has a total of six optional coverage riders available for homeowners wanting to extend their coverage beyond a base plan. It’s still important to understand how standard inclusions vary between providers to ensure you aren’t paying extra for something that would be automatically covered in your primary policy elsewhere.

Option add-ons available for coverage:

• Central Air Conditioning — Unfortunately, air conditioning is not covered in either of First American Home Warranty’s base plans, so you’ll have to purchase elective add-on coverage for A/C protection. This rider is capped at an annual limit of $1,500 and covers the unit’s refrigeration system, internal parts, evaporative coolers, and built-in electric wall units.
• Additional Refrigeration — If you have a second refrigerator, wet bar/wine cooler, freestanding freezer, or freestanding ice maker, this add-on will cover up to $1,000 in related maintenance expenses. 
• Pool/Spa Equipment — With additional pool warranty coverage, you’ll be protected from the cost to repair failures with your filters, pumps, pump motors, timers, valves, heating units, etc.
• Well Pump — All parts of a well pump used for domestic purposes are covered within a $1,500 limit. The add-on only includes coverage for one well pump per home. 
• Septic System/Septic Tank Pumping — FAHW’s septic system coverage is capped at $500 per tank system per year. This section of the Premier Plan covers the main septic tank line plus jet/aerobic/sewage ejector pumps. Septic pumping is limited to one time per contract period (once a year). 
• First Class Upgrade — For $100 more per month, policyholders can purchase this deluxe add-on which features coverage for: 
  • Fees associated with the use of lifting equipment (i.e., cranes) that are required to service rooftop HVAC systems and units 
  • Up to $250 per local building permit if needed before 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 old appliance, system, or component)
  • Appliances and systems that have been improperly installed or modified

• First Class Plus Upgrade — An additional coverage item exclusively available to home buyers which boosts their allowance for code violations and also covers glycol and oil furnaces.

• Plumbing Plus Upgrade — Also only available to homebuyers, this plan rider includes coverage for pipe breaks beyond the home’s foundation, hot water heater expansion tanks, ground-level cleanout installation, and plumbing stoppages due to roof infiltration.

Coverage Details for Top Systems and Appliances

Air Conditioning

FAHW is one of the only home warranty companies that doesn’t provide basic coverage for air conditioning systems in its plans. Instead, coverage for A/C units and related components is only available to policyholders as an optional add-on. We deducted points from our star rating of FAHW for this exclusion in particular. Seeing as most homeowners use air conditioning daily, we don’t believe customers should have to pay an additional fee to access proper coverage. 

Heating Systems

Coverage for household heating systems is only included in FAHW’s Premier Plan. Policyholders who opt for this plan level will be covered for up to $1,500 per year in heating-related repairs and replacements. 

FAHW’s heating coverage includes:

• Radiators
• Heat pump and heat pump refrigerant recharging
• Baseboard convectors
• Gas, electrical, and oil furnaces
• Thermostats (including base)
• Gas valves to furnace
• Hydronic circulating pumps

Plumbing Systems & Stoppages

Protection against interior leaks, pipe breaks, clogs, etc. is included in both the Basic and Premier Plan levels. FAHW will cover up to $500 per year in plumbing expenses for select scenarios, including:

• Toilet tanks, bowls, and related components/mechanisms
• Pipe leaks or breaks of water, gas, drain, vent, or sewer lines (excludes damage due to freezing)
• Valves — gate, angle stop, riser, diverter, tub, and shower valves
• Permanently installed sump pumps (for ground water only)
• Jetted bathtub motors, pumps, and air switch assemblies
• Circulating hot water pumps
• Pressure regulators

Repairs or replacements for fixtures, showerheads, faucets, and shower arms are not included.

For stoppages, FAHW will cover the clearing of clogs in toilets, sinks, and shower/tub drains. Clearing of sewer and mainline stoppages is also included, but only for backups within 125 feet of an existing ground-level cleanout. First American’s plumbing system coverage doesn’t extend to stoppages due to foreign object obstruction, root infiltration, collapsed exterior lines, or location/excavation fees. 

Washer and Dryer

All parts of your washing machine and clothes dryer are covered by FAHW under an annual coverage limit of up to $3,500 per item, except for:

• Plastic mini-tubs
• Soap dispensers
• Filter and lint screens
• Knobs and dials
• Venting

Electrical Systems

FAHW offers industry-standard coverage for interior electrical items, including:

• Circuit breakers
• Junction boxes
• Wiring 
• Conduit
• Panels and sub-panels
• Plugs, switches, fuses, and outlets
• Telephone wiring

For any electrical issue behind unobstructed walls, FAHW authorizes its contractors to create a necessary access point in the wall, only returning the opening to a rough finish. Any further restoration for aesthetic purposes is not covered.

Refrigerator

Nearly all parts and components of your refrigerator that fail due to normal wear and tear are eligible for up to $1,000 in coverage per year through FAHW. This coverage applies to both freestanding and built-in kitchen refrigerator/freezer units.

Fridge features that won’t be covered by FAHW include:

• Racks, shelves, drawers, handles, and tracks
• Insulation
• Ice crushers and beverage dispensers
• Refrigerators beyond the main kitchen area
• Refrigerant recapture and disposal

Not Covered by First American Home Warranty 

Like any other home warranty service provider, First American Home Warranty won’t cover everything. Specific exclusions as stated in its sample policy include:

• Known or detected pre-existing conditions
• Damage due to natural disasters or any case that overlaps with homeowners insurance coverage
• Cosmetic or factory defects
• Failures caused by poor routine maintenance, neglect, or improper use
• Secondary damage (i.e., wood rot caused by a pipe break under the kitchen sink)
• Services involve toxic or hazardous materials (asbestos, mold, mildew, etc.)
• Routine tune-ups

First American Home Warranty Costs

With plans starting as low as $1 per day, First American Home Warranty offers some of the most affordable coverage options industry-wide. Given that the Basic Plan and Premier Plans differ in price by a little over $10, we strongly recommend that homeowners go ahead and invest in maximum protection from the get-go. 

Monthly Premiums

Given that the national average monthly premium for a home warranty ranges between $33-$58 per month, the price of FAHW’s most comprehensive plan falls at the lower end of that cost spectrum. 

Most home warranty companies, including FAHW, offer a slightly discounted rate to customers who opt to pay annually rather than monthly. FAHW policyholders who pay on an annual basis will save $36 per year on the Basic Plan or the Premier Plan.

Add-On Costs

Service Fees

First American Home Warranty charges a fixed service fee of $75 each time you request service for a new issue. A service call fee is an out-of-pocket payment that’s used to compensate the technician sent out to your home for labor costs and any travel expenses they may have incurred. Most deductibles range between $60-$125 across the home warranty market, so FAHW’s service fee is about the industry average. 

Coverage Limits

A coverage limit is the dollar amount a home warranty company will contribute toward an approved repair or replacement cost. Any balance exceeding a provider’s specified coverage cap will be left to the policyholder to pay. 

Here are First American Home Warranty’s coverage limits, pulled directly from its sample contract:

Cancellation Policy

First American Home Warranty’s cancellation policies differ from state to state, with unique clauses affecting Montana and Wyoming residents. According to FAHW’s sample policy, homeowners in every applicable state will be charged a $50 cancellation fee if the contract is terminated after the first 30 days of coverage. Cancellations within the first 30 days warrant a full refund.  

For Wyoming residents, the same cancellation window and fee apply. However, WY customers are also entitled to 10% interest for each month their refund is not credited back by 

FAHW. Wyoming customers cannot cancel their contract and receive a refund if they are not the original contract purchaser.  

In Montana, if FAHW opts to void the contract for justified reasons, customers will not be charged a cancellation fee and will receive a full refund for unpaid premiums.

Availability

Here are some alternative providers to choose from if you’re located in any of the following states that First American Home Warranty doesn’t serve: 

• Alaska
• Connecticut
• Delaware
• Hawaii
• Illinois
• Louisiana
• Maine
• Massachusetts
• Minnesota
• New Hampshire
• New Jersey
• New York
• North Dakota
• Rhode Island
• Vermont
• Wisconsin

First American Home Warranty Reviews

The best way to predict your future experience with any home warranty company is by gaining insight from current or past policyholders through verified customer reviews. But, because consumers statistically are more likely to write an online review when wanting to vocalize a negative experience rather than a positive one, always take customer testimonials with a grain of salt. 

Customer Reviews

We dug through 70+ reviews posted by FAHW policyholders just this year 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 BBB reviews from FAHW customers that stood out to us:

“A little over a year ago, we purchased a beautiful, 35-year-old home. At that age, things wear out. First American has been true to [its] word, repairing or replacing the needed items listed in our agreement. In February, both central heating units upstairs and downstairs failed and thus were replaced. In late April, an A/C condensing unit failed and was also replaced. Our cost was minimal. First American saved us thousands of dollars. I would highly recommend First American to anyone buying an older home. The policy is worth every penny!” – Tim L., 05/10/2022

“I filed a claim on my pool/spa heater, and First American sent out a contractor. The contractor said it was a faulty part, and he replaced the part but it did not fix the problem. I filed another service request. The next contractor said it [needed] a different part and he had to order it. I never heard back and the problem is still not fixed. I called First American to ask what the status is and was told that the claim was closed as resolved.  They said because it had been two months I had to open another claim and pay another $85. I explained that I was waiting for the contractor to let me know when they would be back out but they didn’t care.” – Trimonisha S., 06/11/2022 

“You better know what your problem is before you request a service. I put in a request for garbage disposal as the issue in a house I recently bought. The contractor came out and told us it was not the garbage disposal but a “stoppage” and to “run hot water through our sink regularly”. That was it. Didn’t fix our problem and then the contractor filed this with nothing about a stoppage and instead only talked about our reverse osmosis not being covered… I paid 85 dollars for them to tell me it wasn’t the garbage disposal and that I need to do the whole process again but this time submit a request for a stoppage. I’d rather pay full price for a real contractor to fix it than deal with this again.” – Brittany W., 04/27/2022

Final Thoughts

First American Home Warranty (FAHW) is one of the more experienced home warranty providers in the industry, with over 38 years in business and a B-rating from the Better Business Bureau (BBB). Though it’s not quite as old as American Home Shield, FAHW still holds seniority over younger competitors like Choice Home Warranty. With more time on the market, FAHW is more receptive to the unique coverage and budget needs of different homeowners, reflected in its comprehensive yet cost-effective base plans.

Despite having pretty robust coverage, keep in mind that FAHW doesn’t include basic coverage for air conditioning in its standard plans. If you live in a warmer state like California or Texas, where A/C is a must, you’ll have to tack on optional coverage at an additional cost. First American Home Warranty currently only offers service in 35 states and Washington, D.C.

Based on our key takeaways, First American Home Warranty is an ideal plan option for home buyers and sellers as it offers unique real estate add-ons and upgrades designed specifically for homes on the market. And, with high coverage limits on all laundry and kitchen appliances plus guaranteed coverage on items of any age and bonus haul-away services, FAHW could be incredibly valuable to homeowners who recently purchased an older home or any fixer-upper. 

To find out how a policy from First American Home Warranty might look for your home, generate a free custom quote by filling out this online form or by calling 833-204-7164. 

Compare First American Home Warranty to Other Home Warranty Companies

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

First American Home Warranty vs. Liberty Home Guard

• Both offer appliance-only options, but FAHW’s costs $32 less per month than LHG’s
• Both charge a $75 service fee
• FAHW has been in business for 38 years, whereas LHG only has four years of industry experience
• LHG doesn’t offer a 30-day money-back guarantee whereas FAHW does

First American Home Warranty vs. American Home Shield

• AHS offers a systems-only plan, but not an appliance-only plan
• FAHW charges a fixed service fee of $75 whereas AHS has a customizable fee of $75-$125
• AHS doesn’t offer coverage in Alaska but has overall broader state availability than FAHW. FAHW does cover homes in Alaska, yet doesn’t operate in 15 other states.
• Both cover appliances and systems of any age and for damage due to unknown pre-existing conditions

Company Information

• Company name: First American Home Warranty Corp.
• Company type: Public
• CEO: Matthew Wendl
• Founding date: 2/8/1984
• Years in business: 38 years
• Telephone:  833-204-7164
• Address: P.O. Box 7248 
• State availability: 35 states
• Service fee: $75
• BBB rating: B
• BBB accreditation: 
• Number of BBB complaints closed within last 3 years: 4,452

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.