20 Questions to Ask When Choosing a Home Warranty

No homeowner wants to deal with unexpected breakdowns to their home’s systems or appliances, even less so when you’re in the process of buying or selling your home! But don’t worry; home warranty coverage can help protect your home and budget when these problems crop up. But how do you know which home warranty plan is right for you? First American is here to answer your home warranty questions. Read more for helpful answers and to learn about the value a home warranty can offer you.

1. Are home warranties a worthwhile investment?

If peace of mind and financial security are important to you, home warranty coverage is a valuable investment. A First American home warranty helps ensure that when an unexpected breakdown happens, your home's covered systems and appliances are protected.

• If you’re a homeowner, home warranty coverage protects your budget from costly breakdowns to many crucial home systems and appliances you rely on every day. So, when a covered item like your refrigerator goes out before a big family gathering, you’ve got a simple solution.

• If you’re buying a home, especially as a first-timer, a warranty helps you minimize risk, maximize budget protection, and prevent buyer’s remorse. These are vital financial benefits of coverage if you don't have much room in your budget to cover an unexpected furnace repair as winter weather arrives.

• If you’re selling, you can purchase coverage during the listing period to keep your home protected during showings and the sale. This protects your budget and can help keep the sale on track if the dishwasher suddenly leaks during an open house. Warranty coverage can also help buyers feel more confident to make their best offer on your home.

Repairing or replacing home appliances can cost you hundreds or even thousands of dollars. Home warranty protection can help you manage these expenses when covered appliances or systems break down. If financial protection and peace of mind are important to you, home warranty coverage is a valuable investment.

2. Does home warranty coverage start immediately, or is there a waiting period?

For current homeowners choosing home warranty coverage, there is a 30-day waiting period before you can request service.

For those selling a home, coverage starts immediately and lasts for up to a 180-day listing period.

For home buyers, coverage begins as soon as the sale is complete.

3. Are unknown or pre-existing conditions covered?

First American typically will not repair or replace an item that was broken before home warranty coverage started.

For home buyers and sellers, we cover conditions that were unknown or could not have been reasonably observed before coverage began.

We will cover systems and appliances of any age, provided they are in good working order at the start of coverage. As you are thinking about home warranty questions, consider asking about coverage for your older appliances. Problems often occur as items age, but with a home warranty from First American, age is not a factor.

4. What are the dollar limits on covered systems and appliances?

First American has some of the most generous limits for repairing and replacing covered home systems and appliances. Consider this example: repair and replacement limits for a kitchen refrigerator can range from $3,500 to $7,000, depending on the plan you choose. If you are a new home buyer, you can purchase additional coverage for your appliances that doubles the base plan limits.

Higher coverage limits are important when you consider the complexity and cost of today’s appliances and systems. Repairing or replacing many items you rely on daily can be expensive, so be sure to ask about dollar limits in your home warranty questions. Dollar limits may also vary depending on the type of plan you buy and your location, so be sure to check when you are doing your research.

5. Do you have limits on the number of each appliance or system I can cover?

First American can cover multiple units for many home systems and appliances, such as air conditioners, water heaters, ovens, dishwashers, washers, and dryers. For other items, such as refrigerators, home warranty coverage is for a single unit. Some plans also offer optional coverage that can cover additional refrigeration in a home.

6. What upgrade options are available?

When purchasing a home warranty, question whether upgrades and add-ons are available. Our plans offer different levels of coverage, upgrades, and options. Start your quote today to see a complete list of available coverage options for home warranty plans.

You can also check out our Add-on Coverage page. From pools and spas to well pumps and septic systems, you’ll find details on coverage options you may want to include with your home warranty plan.

7. Do you cover HVAC refrigerant? If so, are there dollar limits?

All our home warranty plans cover HVAC refrigerant replacement.

Some plans cover all refrigerant costs, while other plans have limits on the coverage amounts for refrigerant. If you’re a homeowner, be sure to ask about including HVAC Tune-up coverage, which covers two preseason tune-ups (in fall and spring) of your system.

Learn more about our HVAC coverage.

8. What is the process for filing a claim?

We make the service process as easy as 1-2-3:

1. Discover a covered item that has stopped working.
2. Sign into your account or call 800.992.3400 and make a service request 24/7.
3. We’ll assign a prescreened technician who will contact you to schedule a visit. When the technician arrives, they diagnose and confirm the repair is covered and then repair the problem. (And if we can’t repair it, we replace it.*)

Don’t hesitate to contact us about your covered appliance or home system issues – we’ve got your back.

9. Are there limits on the number of times you can request service?

No. With a First American home warranty, there are no limits on the number of times you can request service for covered systems or appliances. Many of our customers make service requests multiple times during the year, which can save them hundreds to thousands of dollars in repair and replacement bills. So, if you’re wondering, “How can I get the most out of my home warranty?” one way you can is because of our no-limit service request policy. You can get help with the repair and replacement of covered items as often as you need it.

10. What is the service call fee?

The service call fee is what you pay each time you place a new service request. When you purchase one of our homeowners’ plans, you can choose the amount of your service call fee.

For home buyers and sellers taking place in a real estate transaction, there is a set service fee that varies by area. Get a free quote to view our plans and service fees for real estate.

11. What are the deductibles for covered repairs?

When it comes to questions to ask home warranty companies, many people inquire about deductibles. Home warranties do not have deductible costs. With your home warranty coverage, you pay only the service call fee on each new request. You can choose the service fee amount you prefer with many of the plans you purchase. Contact us or get a quote to learn more.

12. Are there any hidden fees?

Home warranty contracts do not have hidden fees. However, not everything is covered by a home warranty. You might pay out-of-pocket costs sometimes, depending upon the repair needed. For example, if your HVAC system needs to be replaced and your home needs structural modifications to complete the installation, you may be responsible for the modification costs.

You can also add upgraded coverage to your home warranty to offset possible out-of-pocket expenses, such as modifications and permit costs. When you compare your home warranty cost to what you would pay for repair and replacement costs without a home warranty, you can quickly see how your plan can provide real budget protection and savings.

13. How are obsolete parts handled?

If we cannot repair a covered system or appliance, we will replace it with a new unit with similar functionality.*

Exceptions are icemakers, ice crushers, and beverage dispensers, where we will only repair or replace covered items when parts are available. For example, if an icemaker breaks and parts or a replacement are no longer available, we won’t replace the whole refrigerator.

14. How long does home warranty coverage last?

Our home warranty contracts typically last one year and protect your home’s appliances and systems (not to mention your budget) during the contract term.

15. How easy is it to cancel the policy?

Our home warranty contract includes a 30-day review period. You can cancel up to the 30th day from the Contract Effective Date for a full refund if you haven’t made any claims.

Typically, unless allowed by state law, home warranties are not cancelable after the review period other than by mutual agreement of the contract holder and First American.

16. Is home warranty coverage renewable?

Yes, a First American home warranty can typically be renewed at the end of each one-year term, and many of our customers do renew.

Renewal of coverage year to year is also at the option of First American.

17. What is the company's reputation?

First American is an industry-leading provider of home warranties for home buyers, sellers, and homeowners across the nation. Our company has nearly 40 years of experience providing our customers with quality protection for their home appliances and systems. We have the backing and financial strength you can count on when covered items you rely on break down unexpectedly.

18. What is the customer satisfaction rating?

Our customers give First American Home Warranty high marks. On Trustpilot, verified reviewers rate us with 4 stars out of 5, and Trustpilot has become a reliable source for consumers who want to learn how customers feel about the service provided to them by companies like First American.

19. Is there a sales rep who can help?

If you’re a current homeowner and have more questions to ask when buying a home warranty, we have helpful reps who can answer your home warranty questions. Call us at 888.875.0533 and we’ll be happy to talk through your questions.

For home buyers, sellers, and real estate agents, we have local representatives across the country. Our reps work closely with real estate professionals in their regions to ensure home buyers and sellers have the best possible home warranty experience.

20. How can I contact First American?

Whether you’ve got more questions to ask when buying a home warranty or you’re ready to purchase a plan, contact us. We’re here to help protect your home's systems and appliances and your budget, so get a quote today.

FAQs for Buying a Home Warranty

What are three things to look for when considering a warranty?

A good home warranty will:

• Cover appliances and systems regardless of age or make/model.
• Replace your covered items if they cannot be repaired.*
• Be a complement to your homeowners insurance to give you complete home and budget protection.

Is there a home warranty association?

Yes. It’s a good idea to check if the company you are considering is a National Home Service Contract Association member. They represent the most respected providers of home service contracts and provide information, education, regulation, and legislation resources for the home warranty industry.

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*If we can’t repair an item, we will replace it. Please read your contract for specific coverage and limitations. In some instances, Homeowner and First American may agree to payment of cash in lieu of repair or replacement. Payment will be made based on First American’s negotiated rates with its suppliers, which may be less than retail. Please review the sample contract for specific coverage, terms, and limitations.