What First American Home Warranty Is

First American Home Warranty is a service contract sold by First American Home Warranty Company that covers repair or replacement of major home systems and appliances when they break down. You pay a yearly premium, and when a covered item fails, you call the company, pay a service call fee (usually $75 to $125), and a contractor from their network comes to fix or replace it.

The company does not insure your home against damage — that is what homeowners insurance does. Instead, it functions like a maintenance membership: you pay upfront for the right to call for repairs at a lower cost than hiring a contractor on your own. First American operates in most U.S. states and sells plans through real estate agents, directly to homeowners, and sometimes as part of a home sale agreement.

Key Takeaways

  • First American Home Warranty charges an annual premium (typically $400 to $700) plus a service call fee each time you use it, with coverage limits that vary by plan.
  • The company covers major systems like HVAC, plumbing, electrical, and appliances, but excludes pre-existing damage, maintenance issues, and items already broken when coverage starts.
  • You choose a plan tier (basic, standard, or premium) that determines which systems and appliances are included and what the annual coverage limit is.
  • Repairs are handled by First American's contractor network, not by your own chosen professional, and you cannot file a claim for work already completed.
  • Coverage begins after a waiting period (usually 30 days for most items, longer for some systems) and does not cover damage from lack of maintenance or pre-existing conditions.

How the Plans Are Structured

First American offers three main plan levels: Basic, Standard, and Premium. Each tier includes different systems and appliances, and each has an annual maximum payout (the total the company will spend on your behalf in one year). The Basic plan typically covers essential systems like HVAC and water heater but may exclude appliances. Standard adds kitchen and laundry appliances. Premium is the broadest and may include items like pool equipment or septic systems, depending on your state.

When you purchase a plan, you also choose your service call fee — the amount you pay out of pocket each time you make a claim. A higher service call fee ($100 to $125) usually means a lower annual premium. A lower service call fee ($50 to $75) means you pay more upfront. The annual maximum payout ranges from around $5,000 to $10,000 depending on the plan, meaning once the company has paid that amount in claims during a calendar year, coverage stops until the next year begins.

Plans sold through real estate transactions (often called "seller-paid" plans) are typically shorter in duration — sometimes 12 months — while plans you purchase directly can often be renewed year to year. Read your contract carefully to see whether your plan auto-renews or requires you to purchase a new one each year.

What Is and Is Not Covered

First American covers the repair or replacement of major home systems and appliances that fail due to normal wear and tear. This includes HVAC systems, water heaters, plumbing lines, electrical systems, refrigerators, ovens, dishwashers, washing machines, dryers, and garbage disposals. If a covered item stops working, the company will pay for a contractor to fix it or, if repair is not economical, replace it with a comparable new unit.

The company does not cover items that were already broken or damaged before your coverage started (called pre-existing conditions). It also excludes damage caused by lack of maintenance — for example, if your air conditioner fails because you never changed the filter, that claim may be denied. Damage from natural disasters, pest infestations, code violations, and items that require permits to replace are typically excluded. Cosmetic damage (dents, scratches) and upgrades are not covered.

Some systems have longer waiting periods than others. HVAC and water heaters often have a 30-day waiting period before you can file a claim. Septic systems, pools, and other specialty items may have 90-day or longer waiting periods. Check your contract for the exact waiting period that applies to each system you want covered.

How to File a Claim

When a covered system or appliance breaks down, call First American's customer service line (the number is on your contract and membership card). Describe the problem and provide your policy number. The company will schedule a contractor from its network to visit your home, usually within a few business days, though emergency calls may be prioritized.

The contractor will diagnose the problem and determine whether it is covered under your plan. If it is, you pay your service call fee on the spot, and the contractor performs the repair or arranges replacement. If the company denies the claim, you will be notified in writing with the reason. You cannot file a claim for work already completed by another contractor — claims must be filed before the repair is done.

Keep your contract and membership card in an straightforward-to-find place. When you call, have your policy number ready and be prepared to describe what is not working. The company will not cover emergency calls made outside business hours unless you have purchased an emergency rider, so check your plan details.

Waiting Periods and Exclusions You Should Know

Most plans include a 30-day waiting period from the start date before you can file any claims. This means if you purchase coverage on January 1st, you cannot file a claim until January 31st at the earliest. Some systems have longer waiting periods — 90 days or more — so read your contract to see which items have extended waiting periods in your plan.

Pre-existing conditions are never covered. If a system was already damaged or malfunctioning before your coverage started, First American will deny any claim related to that damage. The company may ask for proof that the item was working when coverage began, so if you have a home inspection report or photos from before you purchased the plan, keep those on file.

Maintenance-related failures are excluded. If your furnace breaks because you did not have it serviced annually, or your plumbing backs up because you did not have the line cleaned, the claim may be denied. First American expects you to perform routine maintenance — the warranty covers failures that happen despite proper care, not failures caused by neglect.

Cost and Renewal

Annual premiums for First American Home Warranty typically range from $400 to $700, depending on the plan tier, your location, and the service call fee you choose. Some plans sold through real estate agents may be lower or included in the sale price. The service call fee — what you pay each time you make a claim — usually ranges from $50 to $125.

When your plan year ends, you will receive a renewal notice. If you want to continue coverage, you can renew for another year, usually at the same or slightly higher premium. If you do not renew, coverage ends on the date specified in your contract. Some plans auto-renew unless you cancel, so check your contract to see whether you need to take action to renew or to stop coverage.

Cancellation is usually possible within a certain window (often 30 days) for a full or partial refund of your premium. After that window closes, you may still cancel but will forfeit the unused portion of your premium. Read your contract for the exact cancellation terms and any refund policy.

When First American Home Warranty Makes Sense

A home warranty is most useful if you own an older home with systems that are nearing the end of their lifespan, or if you want predictable repair costs and do not want to maintain a large emergency fund for home repairs. It can also be valuable if you are buying a home and want protection during the first year while you learn which systems need attention.

A home warranty is less useful if your home is very new and systems are still under manufacturer warranty, or if you have the cash reserves to pay for major repairs out of pocket. It is also less useful if you prefer to hire your own contractor — First American uses its own network, so you cannot choose who does the work. Compare the cost of the annual premium plus service call fees against what you might spend on repairs in a typical year for your home's age and condition.

Frequently Asked Questions

Can I choose my own contractor, or does First American send someone?

First American sends a contractor from its network. You cannot choose the contractor or use your own. If you are unhappy with the work, contact First American to request a different contractor or a second opinion. You cannot file a claim for work done by someone outside the network.

What happens if First American denies my claim?

The company will send you a written explanation of why the claim was denied — usually because the item is not covered under your plan, the damage is pre-existing, or the failure is due to lack of maintenance. You can request a review of the denial or contact your state's insurance commissioner if you believe the denial is unfair.

Does the warranty cover items I already know are broken?

No. Pre-existing conditions are excluded from all plans. If an appliance or system was already damaged or not working when your coverage started, First American will not cover repairs or replacement. Note the condition of major systems before you purchase a plan so you have documentation of what was working.

Can I transfer my plan if I sell my home?

This depends on your contract. Some plans are transferable to the new owner for a fee; others end when you sell. Check your contract or call First American to ask whether your specific plan can be transferred and what the process is.

What is the difference between a home warranty and homeowners insurance?

Homeowners insurance covers damage to your home from events like fire, theft, or weather. A home warranty covers repair or replacement of systems and appliances that fail from normal wear and tear. You typically need both: insurance protects against sudden damage, and a warranty covers breakdowns of aging systems.