When you buy a home, even if it isn't brand new, there's a good chance you'll be offered a home warranty as a safety net against costly, unforeseen repairs.

Don't confuse a warranty with homeowners insurance, which covers your home's structure and belongings in a fire, storm, flood, or other accident. Home warranty companies cover normal wear and tear on home systems, including electrical, plumbing, water heater, washer, and kitchen appliances. It may appear to be an excellent form of financial protection, but is it truly the safety net that homeowners expect? Let's see if home warranties are worthwhile.

A First American Home Warranty (FAHW) or American Home Shield (AHS) home warranty can protect you from paying out-of-pocket for broken home systems and appliances. Both providers have years of industry experience and offer reasonably priced coverage for appliances and systems. We will discuss each provider's coverage, cost, and benefits in this review to assist you in your search for the best home warranty on the market.

American Home Shield Home Warranty vs. First American Home Warranty

ShieldSilver, ShieldGold, and ShieldPlatinum are the three plans offered by American Home Shield. ShieldSilver covers 14 major systems, while ShieldGold covers nine appliances and eleven systems. ShieldPlatinum includes limited roof repairs as well as coverage for 23 major systems and appliances. Customers can also pay extra for coverage for things like pools and spas, septic systems, well pumps, home electronics, and guest units.

First American, on the other hand, only offers the Basic Plan and the Premier Plan. The Basic Plan covers the majority of major appliances, whereas the Premier Plan covers appliances as well as major home systems. Pool and spa, septic system, well pump, pre-season HVAC tune-up, and limited code violations are among the company's add-ons.

Each company will have its own exclusions for what is and is not covered. First American doesn't cover solar power equipment, structural repairs, or homes over 5,000 square feet.

First American Home Warranty has a flat service fee, whereas American Home Shield has a range of prices. Customers have the option of deciding how much they want to pay. Both companies provide the same labor warranty, but American Home Shield provides a 90-day parts warranty. The First American website makes no mention of a parts guarantee.

Coverage Comparison

American Home Shield coverage

ShieldPlatinum, ShieldGold, and ShieldSilver are the three plans offered by American Home Shield. ShieldPlatinum and ShieldGold plans include 23 items, while ShieldSilver includes 14 home systems. The ShieldPlatinum plan from AHS is the most comprehensive, with unlimited AC refrigerant, one free pre-season HVAC tune-up, and a $6,000 coverage limit per appliance.

If you require additional coverage, American Home Shield provides five options, including an Electronics Plan, which covers TVs, laptops, tablets, home theater systems, gaming consoles, smart home products, and other items. Here is a complete list of AHS add-ons:

1. Pool and spa electronic plan
2. Pump for a well
3. Pump for septic tanks
4. Visiting unit (under 750 square feet)

First American Home Warranty coverage

First American Home Warranty provides two types of protection. The Basic Plan only covers appliances, whereas the Premier Plan covers appliances as well as eight home systems. Here's an overview of how many items each First American plan includes.

First American also provides additional coverage options, such as air conditioning unit protection and the First Class Upgrade, which pays for fees not typically covered by home warranties, such as junk removal and permit upgrades. Here is a complete list of First American's optional extras:

1. The central air conditioning system.
2. Additional cooling is required.
3. Well pump for pool/spa equipment.
4. Upgrade to First Class.
5. Pumping of septic tanks and system HVAC tune-up.

Price comparison

Both companies provide home warranty plans at industry-competitive prices. American Home Shield plans cost between $40 and $58 per month based on our sample quotes for a single-family home under 5,000 square feet, while First American plans cost between $37 and $50 per month.

Include the cost of the home warranty company's service call fee when comparing prices. A service fee is a one-time payment made to your independent service technician at the time of repairs that serves as a deductible. The service fee for First American is $85, while American Home Shield has three service fees: $75, $100, and $125. A higher service fee will result in a lower monthly premium.

Is HVAC covered by American Home Shield and First American Home Warranty?

The Premier Plan from First American includes ductwork and heating, but air conditioning is available as an add-on package for an additional $9 per month. Ductwork from the heating/cooling unit to the connection at the register or grill is covered by the company. Exclusions include incorrectly sized ductwork, diagnostic testing, grills, and registers. Heating components and parts covered include heat pumps, electric baseboards, and ductwork, including leaks and breaks. Again, read the contract's exclusions carefully to ensure you fully understand your coverage.

HVAC coverage is available through American Home Shield's ShieldSilver, ShieldGold, and ShieldPlatinum plans. It does not cover outside/underground piping, fuel storage tanks, or portable units for heating. Other contract exclusions include testing when replacing heating or cooling equipment. You'll have to pay for it yourself if it's necessary. The air conditioning coverage is comprehensive but excludes the following common items:

1. External piping
2. Pumps for wells
3. Window treatments
4. Towers of water
5. Chillers
6. Components of a chiller
7. Water supply lines
8. Any required testing

Pros and Cons of AHS Home Warranty

Pros:

1. Additional plan customization options.
2. Most states have it.

Cons:

1. There is no discount for paying annually.
2. The service fee could be higher.

Pros and Cons of First American Home Warranty

Pros:

1. Service fee fixed
2. Reduced monthly fee

Cons:

1. There is no roof coverage available.
2. No parts warranty is mentioned.

Finally, we ask: Which Is The Best?

Customers can choose from a variety of plans that can protect systems or a combination of appliances and systems. AHS has a generous system and appliance caps, and customers can choose their service fee.

First American Home Warranty offers two affordable protection plans. The established provider has no heating, cooling, or ductwork caps and 24/7 customer service.

Unlike American Home Shield, FAHW does not offer a protection plan that only covers systems. To protect your home's systems, choose their Premier Plan, which covers appliances and systems, or add-ons. Furthermore, First American does not allow you to select your own technician or service fee.

AHS's monthly premium is higher than First American's, but customers can lower their cost by choosing a higher service fee.