As a real estate professional, you know how to help your clients find their dream home, so make sure you and your clients know how to find the best home warranty.
When shopping for a home warranty, here are the important questions to ask and answers that show you how well First American coverage measures up.
1. What are the dollar limits on covered systems and appliances?
We have some of the most generous limits on covered home systems and appliances in the industry. Dollar limits may vary based on your area. For homes involved in a real estate transaction, see sample contract for limit details in your area.
2. Do you cover HVAC refrigerant? If so, are there dollar limits?
Yes, we cover the full cost of HVAC refrigerant replacement. While some home warranties only cover part of the cost of refrigerant, we have no limits on the cost or amount of refrigerant a covered system needs. With the addition of our First Class Upgrade option, we also cover the costs for recapture, recovery, and disposal of refrigerant. Learn more about our Big HVAC coverage.
3. Are unknown or pre-existing conditions covered?
For a First American home warranty purchased as part of a real estate transaction, we will cover pre-existing conditions if at the start of coverage the problem was unknown or could not have been reasonably observed by looking at or operating the system or appliance.
4. Are there limits on the number of times you can request service?
No, there are no limits on the number of times you can request service to repair or replace broken home systems or appliances with a First American home warranty. Many of our customers request service multiple times each year and save hundreds to thousands of dollars in repair and replacement bills.
5. Do you have limits on the number of each item or system? For example, multiple HVAC systems, ovens, or water heaters?
For many systems and appliances, such as air conditioners, water heaters, ovens, dishwashers, washers, dryers and more, we cover all of the items installed in your home. For other items, coverage is for a single unit. For example, kitchen refrigerator coverage is for a single unit; however, you can include coverage to protect up to four additional refrigerator (or freezer) units.
6. How are obsolete parts handled?
If we can’t repair a covered system or appliance, we’ll replace it with a brand new unit with similar functionality.*
An exception to this is icemakers, ice crushers, and beverage dispensers, which we will only repair or replace when parts are available.
7. Does home warranty coverage start immediately, or is there a waiting period?
There is no waiting period for home warranties purchased as part of a real estate transaction. For homebuyers, home warranty coverage beings as soon as the home closes. For home sellers, listing coverage begins as soon as the home warranty is ordered.
8. What is the service or trade call fee?
The amount of your service call fee depends upon the home warranty plan you have selected. For homes involved in a real estate transaction, see sample contract for service fee details in your area.
9. Is coverage renewable?
Yes, and the majority of our customers do renew.
10. What upgrade options are available?
You have a number of upgrades and options to choose from, depending on where you live, and if the home warranty is purchased as part of a real estate transaction. See sample coverage for a complete list of available coverage options for real estate home warranty plans in your area.
11. Are systems and appliances covered regardless of age?
Yes, we’ll cover systems and appliances of any age, provided they are in good working order at the start of coverage.
12. What is the cancellation policy?
Unless allowed by state law, home warranty contracts are for a single year and are not cancelable other than by mutual agreement of the contract holder and First American. See sample coverage for a cancellation policy for real estate home warranty plans in your state.
13. Is there a local sales representative who can help you and your clients have the best home warranty experience?
Yes, we have local representatives across the country. Our reps work closely with real estate professionals to ensure homebuyers and sellers have the best home warranty experience.
Make sure the company you choose is a member of the National Home Service Contract Association. They represent the premier and most respected providers of home service contracts and are the information, education, regulation, and legislation resource for the home warranty industry.
*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.