- Relatively inexpensive.
- 24/7 customer service.
- High appliance coverage limit.
- Policies only cover appliances.
- Not available in all states.
- No discounts.
- Minimal customization options.
First American Home Warranty is an insurance company that offers home warranties to homeowners. The company was officially established in 1984 in Orange County, California. Its headquarters are in Santa Ana, CA.
First American offers home warranties which are home insurance policies that focus on covering the appliances of the home. The company tends to be on the cheaper side in terms of cost due to less coverage than a standard home insurance policy.
First American has expanded well beyond Orange County and is now an option for residents in many states. They also have other insurance services that they offer, which are beyond the scope of this article.
Where does First American offer coverage?
The best that we could determine is that First American Home Warranty offers coverage in 35 of the 50 states. That means there are 15 states where they do not provide home insurance. The states where First American is not available include: Alaska, Connecticut, Delaware, Hawaii, Illinois, Louisiana, Maine, Massachusetts, Minnesota, New Hampshire, New York, North Dakota, Rhode Island, Vermont, Wisconsin.
As we reviewed the company, there were conflicting lists of states where they provide coverage. 35 states was the lowest number we found and 50 was the most. We recommend checking with an insurance agent or reaching out to First American directly to see if they offer coverage in your state.
Coverage offered by First American
First American offers three different coverage options to homeowners. They offer a “Starter plan”, Essential plan” and “Premium plan”. The Starter plan is the most basic of the three plans and they progressively become more comprehensive. First American home warranties are designed to protect the homeowner’s appliances specifically. They don’t cover all that a standard home insurance policy covers such as the structure of the home, other structures, loss of use, personal belongings, personal liability, and more. The home warranty model provides specific protection and may be good for people looking to simply cover appliances.
Starter Plan Coverage Includes:
- Plumbing system
- Electrical and heating
- Dishwasher
- Refrigerator
- Oven
- Stovetop
- Built-in microwave oven
Essential Plan Coverage includes:
- Plumbing
- Electrical and heating
- Dishwasher
- Refrigerator
- Oven
- Stovetop
- Built-in microwave oven
- Washer and dryer
- Water heater
- Air conditioning
- Garage Door opener
Premium Plan Coverage includes:
- Everything covered by the essential plan plus…
- Luxury appliances
- Garbage disposal
- The full garage door system
- Faucets
- Instant hot water dispenser
- Shower head
- Window AC unit
- Other coverages
Additional coverages offered
In addition to the above plans, First American also offers a few optional add-on coverages. These include:
- Increased refrigeration protection
- HVAC tune-up
- Roof leak (limited)
- Pool or spa equipment
- Septic tank/sump pump
- Water softener
- Well pump
They also offer the “First American Advantage Upgrade” that can be combined with the essential and premium plans. The Advantage Upgrade provides coverage for crane expenses, code violations, and removal of appliances.
It is also important to note that First American only offers the above add-ons for 30 days after the homeowner receives the policy. This means homeowners must act fast in order to add those protections to their policy otherwise they will not get the option again.
Other coverages offered
According to our research, it doesn’t look as if First American Home Warranty offers any other coverage to homeowners. The above options are what customers have to choose from. This is a downside to First American and should be considered when homeowners are looking for coverage. Homeowners should also consider the fact that First American policies only cover appliances and not the standard coverages in the normal HO-3 policy. There is much on the property that would not be covered. For some homeowners, covering their appliances may be the far more important route to go down, while some homeowners may need to cover more of their property. Any number of factors can play a part in this decision. It is always best to weigh all the options before making a decision.
Coverage limits
During our research we uncovered that First American sets their coverage limit of appliances at $3,500, which is the highest coverage limit for appliances that can be found from any company. This number can be extended with the Advantage Upgrade. For the price of their policies, First American offers quite a lot of coverage. This is a huge positive for homeowners looking to obtain coverage.
Cost of First American Home Warranty
The cost of a policy with First American is quite competitive. The pricing of their three plans seems to be right around the overall average for a home warranty if you average all of the home warranty policies offered by insurance companies.
First American’s Starter plan is the most basic of the policies and therefore the cheapest. The starter plan is an average of $54 per month ($648 per year), the Essential plan is an average of $64 per month ($768 per year) and their Premium plan is an average of $74 per month ($888 per year). Compared to a standard home insurance policy, any of First American’s home warranties are far cheaper. The average home insurance policy costs almost $1,900 per year. If cost is a major factor in the homeowner’s decision, then First American can be a great option for homeowners.
The additional coverages listed above each only cost a few dollars per month when added on, although the pool/spa equipment coverage will add more like $20/month to the policy. The relatively inexpensive nature of coverage with First American is a positive.
First American, like all other home warranty companies, charges a service fee when a service provider comes to the homeowner’s home. This can be costly with the fee ranging from $75 to $125 per service call. First American does offer a 30-day guarantee meaning that if a service provider is called out to fix something, if that appliance breaks down again within 30 days, than no service fee will be charged to have the service provider come back to the house to fix the appliance again.
Discounts available
As far as we can tell, First American Home Warranty does not offer any discounts to homeowners. This can be a major drawback for some.
Claims experience
The claims process with First American seems to be relatively good but is somewhere slightly above average comparatively speaking. Overall, the reviews have generally been positive although there is a number of negative reviews of the claims process. It seems as though the company does a relatively decent job helping homeowners when a claim arises, but like any insurance company, they tend to drag their feet a bit to get anything done and look for the cheapest route possible.
Customer service
Overall, the customer experience seems to be relatively positive. Most of the reviews are good or excellent, but there is a sizeable number of negative reviews as well. One downside is their website is incredibly confusing and not easy to navigate at all. It was hard to find anything while researching on their site.
Customers typically like the cost of the policies and the service and coverage they get for that cost. Homeowners have expressed some issues with the service they have received when something does go wrong as well as the service fees associated with that. They do have 24/7 customer service and flexible payment options, which customers appreciate. The company has a B rating with the Better Business Bureau, which is good, but it would give much more confidence to see an A rating there. Many insurance companies are rated A with the BBB.
Financial strength
We couldn’t find a specific rating for First American Home Warranty, but what we did find is that First American is good in terms of financial strength but is certainly not great. They seem to have decent credit, but if there were a large number of claims that occurred at once or a major economic downturn, they might have some issues. Under normal circumstances they are ok, but homeowners might be wary if a 2008-type event happens.
Conclusion
First American Home Warranty is a good option for homeowners looking to protect their home at a cheaper price. For homeowners who have many appliances and are far more concerned about the risk of the appliances being damaged than the rest of the property, a home warranty with First American is the option for you. Their financial strength and customer service leaves something to be desired. It would be great to see those be a little better, but overall they are on the positive side. The lack of ability to customize the policy or obtain any sort of discount is a drawback that homeowners should consider. Overall, the company is average to slightly above average when it comes to home insurance protection.