How to Choose the Best Home Warranty Plan for Your Home

Whether you're a recent homeowner or have lived in your house for a long time, home warranty coverage can be a valuable resource. It can provide budget protection and peace of mind when covered household appliances and systems break and need repair or replacement. But what exactly is a home warranty, and how does it work? Read on to explore the many benefits home warranties offer and learn how to choose the best home warranty plan for you, your home, and your lifestyle.

What Is a Home Warranty?

A home warranty is a renewable 12-month contract that covers your home's essential appliances and systems. When they break due to normal wear and tear, a home warranty can help pay for repairs and even replacements, when necessary. In this way, it’s different from homeowners insurance, which mainly covers catastrophic events like natural disasters (floods, storms, fires), theft, and major structural events like trees falling on your house.

Think of it like this: Homeowners insurance covers major events that might happen. Home warranties cover breakdowns that inevitably will happen. Because appliances and systems have limited lifespans, a home warranty can be a financial safety net when they fail.

Learn why you need a home warranty plus homeowners insurance for your home protection plan.

How Does Home Warranty Coverage Work?

A First American home warranty plan provides comprehensive protection for your home’s major appliances and systems. That means when a covered item unexpectedly breaks from wear and tear, your out-of-pocket repair cost can be significantly reduced. And if it can’t be repaired, we’ll replace it.*

Here’s how our service process works: Simply submit a service request through your First American Home Warranty online account or via phone. After we receive your home warranty claim, we’ll assign a prescreened service provider from our network to schedule an appointment to diagnose the issue at your home.

The technician will repair the broken item if possible; otherwise, we’ll replace it.* Our convenient repair/replacement solution can save you the time and effort of finding a contractor on your own, making it a smart way to get your home running smoothly again.

Comparing Home Warranty Plans

While all home warranties from First American offer protection for your home's appliances and systems, it’s important to carefully compare home warranty coverage levels to ensure you’re getting the right protection for your home.

Our home warranty plans for current homeowners include the Starter Plan, Essential Plan, and Premium Plan:

• The Starter plan is a solid choice for homeowners on a budget who want to safeguard their savings against unforeseen expenses.
• If you're an established homeowner who has experienced first-hand how much homeownership can cost, the Essential Plan offers more robust coverage for a slight increase in cost.
• The Premium plan offers superior protection with the most comprehensive coverage we offer.

Starter Plan

Starting at $33/month*

Our Starter Plan is our most basic (and most affordable) protection plan for current homeowners, covering many of your most-used systems and appliances, including:

• Plumbing system
• Electrical and heating system
• Dishwasher and refrigerator
• Oven/range/cooktop
• Built-in microwave oven
• Ductwork, and more

Essential Plan

Starting at $48/month*

Ideal for established homeowners, our Essential Plan extends coverage to include:

• Everything in the Starter Plan
• Clothes washer and dryer
• Water heater
• Air conditioning or mini-split systems
• Garage door opener and exhaust fans
• Trash compactors, and more

Premium Plan

Starting at $78/month*

Our Premium Plan is our most comprehensive coverage, providing expanded coverage including:

• Everything in the Starter and Essential Plans
• Luxury appliances
• Central vacuum system
• Faucets
• Instant hot water dispenser, and more

Learn more about what’s covered by a home warranty and get a free quote.

How to Select Your Best Home Warranty Plan

When you start to compare home warranty plans, selecting the right one involves weighing several important factors. Along with coverage, consider the home warranty’s cost, the age of your home’s appliances and systems, coverage limits, and available coverage options and upgrades.

If you're buying or selling a home, read more about our home warranties for buyers and sellers.

Home Warranty Cost

How much does a typical home warranty cost? The price depends on the provider, plan, and level of coverage. On average, basic home warranty coverage costs around $55 per month. First American Home Warranty offers plans ranging from $33 to $78 per month. Viewed alongside the cost of repairing or replacing a dishwasher, HVAC system, or similar household item, the value becomes clear quickly. Over time, even a few major repairs can outweigh the home warranty cost.

Appliance Age

When your appliances and systems are old, adding home warranty coverage to your home protection plan is an especially smart move. At First American Home Warranty, we cover eligible appliances and systems of all ages, so no matter how old yours are, rest assured that if they’re in working order at the start of your contract, we’ll cover them. Our plans allow homeowners to protect the household items they rely on every day — without worrying that age will limit their coverage.

HVAC Requirements

HVAC repairs can be expensive, and a replacement can cost thousands of dollars. A home warranty helps offset those costs, making it easier to maintain comfort in your home year-round. The best home warranty plan for you depends in part on your home’s HVAC setup:

• Starter Plan: Best for homes without central AC or a mini-split ductless system
• Essential Plan: Includes coverage for central AC and mini-split systems
• Premium Plan: Includes central AC and mini-split systems, plus additional coverage for registers, grills, filters, and window AC units

Expand Your Coverage with Popular Add-Ons

Our add-on coverage allows you to tailor your home warranty to your home’s unique features. If you have specialty systems, high-end appliances, or additional equipment that’s not included in the home warranty plan you choose, adding coverage options and upgrades helps ensure those features can be protected. This flexibility makes it easy to align your coverage with your home’s specific needs.

Below is a sampling of items you can add to your plan to ensure your home is properly protected:

• Well pump
• Water softener
• Pool and spa equipment
• Additional refrigeration
• Septic system
• HVAC preseason tune-ups (one in spring and one in fall)
• Limited roof leaks (included in the Premium Plan, optional in the Starter and Essential Plans)
• Luxury appliance coverage (included in the Premium Plan)

More Coverage = More Benefits

Our Starter Plan covers many basic systems and appliances that homeowners use every day to keep their households running smoothly. If your home has upgraded appliances and/or high-end systems, the broader coverage in the Essential or Premium Plans may be a better fit for you. Below are several benefits worth considering when trying to decide how much coverage you want:

Higher Limits

It’s always smart to check coverage limits when comparing home warranty plans. Depending on what type of protection is most important to you, the coverage limits could be the deciding factor in the plan you choose. For example:

• Premium Plan appliance coverage: Offers higher coverage limits for luxury appliances. This can be beneficial for newer high-end or smart appliances, since parts or replacements typically come with heftier price tags.
• Premium Plan refrigerant coverage: Covers all costs related to refrigerant recharging for covered units and failures — the highest level of protection we offer.
• Starter Plan and Essential Plan refrigerant coverage: Covers up to $20 per pound for refrigerant recharging, and you pay any additional cost up to a maximum of $250 per covered unit and failure.

It's easy to get a quick home warranty quote and compare plans, coverage, benefits, and limits.

Read about what's not covered by a home warranty.

More Items Covered

The Essential and Premium Plans ramp up to our highest level of coverage by including many additional home systems and appliances. These two expanded coverage levels can be especially helpful for homeowners who want protection for more of the household items they rely on every day. By covering more components throughout your home, these plans offer a greater level of financial protection and peace of mind.

See what a home warranty plan covers in your area.

Increased Budget Protection

While top-level plans come with moderate price increases, higher limits and more extensive coverage can help offset that cost when covered appliances and systems unexpectedly break. Over time, the added protection can provide greater value and reduced out-of-pocket expenses when repairs or replacements are needed.

Learn More: Explore coverage from First American Home Warranty.

How to Get the Most Out of Your Home Warranty

Adding upgrades and options is a smart way to fine-tune your coverage for more complete budget protection. Another way to save on household costs is by taking advantage of the exclusive member benefits that come with every First American home warranty plan. You can get up to 40% off new brand-name appliances, plus savings on home improvement services, HVAC air filters, refrigerator water filters, and more.

Finally, don't hesitate to file claims when needed. Remember, you can use your First American home warranty whenever a covered system or appliance breaks. And there’s no limit to the number of claims you can make, no matter which plan you choose. Request service online or via phone 24/7, rain or shine, for dependable support when you need it.

Find out how to file home warranty claims and learn about the claims process.

FAQs About Choosing the Best Home Warranty Plan

What does a home warranty actually cover?

Home warranty coverage typically includes essential appliances and systems you use every day to help your household run smoothly. Optional add-on coverage and upgrades are also available to provide extra protection for your home’s unique features, such as a well pump, water softener, pool/spa equipment, luxury appliances, and more.

What’s not covered in a home warranty?

Generally, home warranties don’t cover items that are covered by homeowners insurance, such as vandalism, catastrophic damage or loss, or damage caused by fires, floods, and other natural disasters. Because home warranty coverage can vary by plan, it’s important to compare plans and review the inclusion/exclusion details of the plan you are considering.

Will a home warranty cover my older appliances?

Yes! As long as your older appliances and systems are in working condition at the start of your home warranty contract, First American will cover them, regardless of age.

What is the average cost of a home warranty plan?

Home warranty costs vary by plan, provider, and the level of coverage you have. On average, home warranties cost around $55 per month. First American Home Warranty offers plans ranging from about $33 to $78 per month. Often, the cost of a home warranty is offset by what you might otherwise spend on repairs or replacements without coverage.

Will a home warranty cover pre-existing conditions?

Some home warranty real estate plans that are purchased as part of a transaction can protect you from unknown pre-existing conditions — if, at the time your coverage begins, the defect is not known or could not have been reasonably observed by looking at or operating the system or appliance.

Do home warranty plans have coverage caps or dollar limits?

First American home warranty plans do not have a cap or dollar limit for the total amount we’ll cover per contract term. In other words, you can use your plan as much as needed throughout the year without having to worry about hitting an annual limit. Some individual appliances and systems do have dollar limits, however. Review your sample contract for details about limits and coverage for specific items.

 

---

*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.

†Monthly plans include a $2 handling fee per payment, which does not apply if you pay annually. Pricing varies by location. Please review the sample contract for specific coverage, limitations, terms, and service fee amount.