First American Home Warranty vs. American Home Shield
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Choosing the right home warranty can feel like a big decision, especially when deciding between top providers such as American Home Shield (AHS) and First American Home Warranty (FAHW). While both companies offer solid plans, coverage is geared toward different homeowner needs. We like American Home Shield for homeowners with older systems or appliances because it covers preexisting damage and wear, unlike most other companies. On the other hand, First American Home Warranty is a good fit for anyone with high-end or luxury appliances, covering up to $7,000 in repairs per year for these items.
Our guide compares American Home Shield and First American Home Warranty based on cost, coverage, and customer reviews and shares insights from our firsthand testing to help you decide which is better for you.
Is First American Home Warranty or American Home Shield Better?
American Home Shield offers extensive coverage for systems and appliances, as well as coverage for undetectable preexisting conditions. Preexisting conditions refer to issues or damage that was present before the start of home warranty coverage. Most companies don’t offer this coverage, making AHS a good fit for homeowners with worn or older items that may have been in use for years.
First American Home Warranty is a good choice for homeowners with high-end or luxury items. The company provides higher coverage limits for key appliances, and its affordable add-on pricing makes it ideal for those with multiple appliances or specialty items that need extended coverage.
Both companies provide comprehensive home warranty coverage, so the best choice for you comes down to your specific plan needs. If you have older systems or appliances, American Home Shield may offer a better option because of its unique coverage for preexisting conditions. On the other hand, First American Home Warranty is ideal if you own high-end or luxury items, as it offers higher coverage limits and affordable add-ons for specialty appliances.
We recommend First American Home Warranty if you:
- Need higher coverage caps for luxury appliances
- Have unique coverage needs and want affordable add-ons
- Don’t mind paying more for the best coverage caps
We recommend American Home Shield if you:
- Own older systems and appliances with existing damage
- Want a lower monthly cost
Comparing First American Home Warranty and American Home Shield Side-by-Side
In the table below, we provide an at-a-glance comparison of First American Home Warranty and American Home Shield. We chose a winner in the categories that matter most to homeowners, including coverage, cost, and reviews.
| Category | Winner | Reason |
|---|---|---|
| Coverage | American Home Shield | American Home Shield offers more extensive coverage for systems and covers preexisting conditions, such as rust or corrosion damage. |
| Cost | American Home Shield | American Home Shield offers lower monthly premiums, especially if you choose a $125 service call fee, making it a better option for homeowners on a budget. |
| Customer Reviews | First American Home Warranty | First American Home Warranty stands out for its higher Trustpilot rating and overall reputation among customers. |
| Our Experience | American Home Shield | American Home Shield offers an efficient signup process, variety of payment options, and consistent experience with timely technician arrivals and high-quality repairs. |
First American Home Warranty vs. American Home Shield Coverage
Both American Home Shield and First American Home Warranty offer three plans. AHS offers a system-only and two comprehensive plans covering both systems and appliances. By contrast, FAHW provides three comprehensive plan options. According to our 2024 survey of 1,000 home warranty policyholders nationwide, 72% of respondents prefer comprehensive plans that protect both systems and appliances. As such, we compared the highest-tier plans from each provider: American Home Shield’s ShieldPlatinum plan and First American Home Warranty’s Premium plan.
What Do First American Home Warranty and American Home Shield Cover?
American Home Shield’s ShieldPlatinum plan covers nine appliances and 14 systems, including HVAC, ductwork, plumbing, and electrical. It also includes roof leak protection—something many providers charge extra for. First American’s Premium plan has similar system coverage and includes free roof leak coverage, but goes a step further by offering more appliance benefits, such as coverage for luxury appliances, central vacuum systems, and even window air conditioning (AC) units.
As mentioned, American Home Shield stands out for covering unknown preexisting conditions such as damage from rust or corrosion. First American offers an upgrade called the First American Advantage for additional protection against improper installation and repairs, but it doesn’t fully match AHS’s preexisting condition coverage. Both providers also back repairs with a 30-day workmanship guarantee and will fix any problems with covered repairs for free within that time period.
Overall, both providers offer solid coverage, but American Home Shield tends to focus more heavily on systems, while First American covers a wider variety of appliances.
The table below compares American Home Shield’s ShieldPlatinum plan with First American Home Warranty’s Premium plan coverage.
| Coverage | First American Premium Plan | American Home Shield ShieldPlatinum Plan |
|---|---|---|
| Air conditioning | ✔ | ✔ |
| Built-in jetted tub motor and components | X | ✔ |
| Built-in microwaves | ✔ | ✔ |
| Ceiling/attic/exhaust fans | ✔ | ✔ |
| Central vacuum system | ✔ | X |
| Clothes dryers | ✔ | ✔ |
| Clothes washers | ✔ | ✔ |
| Dishwashers | ✔ | ✔ |
| Ductwork | ✔ | ✔ |
| Electrical systems | ✔ | ✔ |
| Faucets and valves | ✔ | ✔ |
| Garage door openers | ✔ | ✔ |
| Garbage disposals | ✔ | ✔ |
| Heating systems | ✔ | ✔ |
| HVAC tune-ups | ✔ | ✔ |
| Instant hot water dispenser | ✔ | ✔ |
| Luxury appliances | ✔ | X |
| Oven/range/cooktop | ✔ | ✔ |
| Plumbing stoppages | ✔ | ✔ |
| Plumbing systems | ✔ | ✔ |
| Refrigerators | ✔ | ✔ |
| Roof-leak repairs | ✔ | ✔ |
| Toilets | ✔ | ✔ |
| Trash compactors | ✔ | ✔ |
| Water heaters | ✔ | ✔ |
| Window AC unit | ✔ | X |
| Normal wear and tear | ✔ | ✔ |
| Rust, corrosion, or sediment damage | X | ✔ |
| Insufficient maintenance | X | ✔ |
| Improper installation or repair | ✔ | ✔ |
Coverage Limits
Both First American Home Warranty and American Home Shield provide unlimited coverage for water heaters and electrical systems under their highest-tier plans. However, First American offers higher limits for HVAC systems, with coverage ranging from $1,500 to unlimited, while American Home Shield caps its coverage at $5,000 per term. Additionally, First American provides higher coverage limits for most appliances, with limits ranging from $7,000 to unlimited, compared to American Home Shield’s $4,000 cap. In general, First American offers higher coverage limits for key household items.
Coverage Limits Comparison
Below, we outline the coverage limits for the core systems and appliances covered in each provider’s highest-tier plans. This offers a glimpse of what’s covered, but for a complete understanding, we recommend reviewing sample contracts for both companies.
| Item | First American Premium PlanCoverage Limits | American Home ShieldShieldPlatinum Coverage Limits |
|---|---|---|
| Electrical | Unlimited | Unlimited |
| Plumbing | $600–unlimited | $500–unlimited |
| Air conditioning systems | $1,500–unlimited | $1,500–$5,000 |
| Heating systems | $1,500–unlimited | $1,500–$5,000 |
| Refrigerators | $7,000 | $4,000 |
| Ovens | $7,000 | $4,000 |
| Clothes washers | Unlimited | $4,000 |
| Clothes dryers | Unlimited | $4,000 |
| Water heaters | Unlimited | Unlimited |
| Dishwashers | $7,000 | $4,000 |
Add-Ons
First American Home Warranty offers a broader selection of add-ons, with eight options compared to American Home Shield’s six. Home warranty companies typically offer 8–12 add-ons, so AHS comes up a little short comparatively.
FAHW can cover multiple refrigeration units and water softeners with add-ons, both of which don’t appear in American Home Shield’s catalog. However, AHS offers specialized options such as the Electronic Protection Plan and guest units, which FAHW lacks.
Overall, First American Home Warranty offers more add-ons with higher coverage limits, while American Home Shield provides fewer but more specialized options.
| Add-On Coverage | First American Home Warranty Coverage Cap | American Home Shield Coverage Cap |
|---|---|---|
| Additional refrigeration units | $500 | 𝗫 |
| Central air conditioning | $1,500–unlimited | 𝗫 |
| Electronic protection plan | 𝗫 | $5,000 |
| Guest unit | 𝗫 | Unlimited |
| HVAC tune-up | Unlimited | 𝗫 |
| Pool and built-in spa equipment | $2,500 | $3,000 |
| Roof leak repair | $1,000 | $1,000 |
| Septic system/pumping | $500 | $500 |
| Water softener | $500 | 𝗫 |
| Well pump | $1,500 | $1,500 |
The Fine Print
As with any home warranty provider, both First American Home Warranty and American Home Shield have exclusions that limit coverage. Some of the most common exclusions include the following:
- Cosmetic damage: Neither provider covers cosmetic damage that doesn’t affect the functionality of an item, such as superficial scratches or dents.
- Manufacturer or design defects: Both companies exclude items that have manufacturer recalls or inherent design flaws from coverage.
- Natural disasters and external events: Coverage doesn’t extend to damages caused by events such as fires, floods, earthquakes, or other “acts of God” such as storms, lightning, or vandalism.
- Noncovered areas: Items outside the home or those used for commercial purposes rather than residential use are excluded.
- Out-of-network service contractors: Both companies use preapproved service contractors for repairs, though homeowners can choose their own repair technician if local options are unavailable. However, prior authorization from the company is required, and failure to obtain this approval can lead to delays or claim denials.
Some policies vary between the two providers, which we’ve highlighted below.
Aggregate Claims Limit
An aggregate claims limit refers to the maximum amount a home warranty provider will pay for claims over a specific period, typically one year. For American Home Shield, this limit is set at $50,000 per a 12-month contract period. Once the $50,000 limit is reached, the company will not reimburse you for any additional claims until your plan renews.
First American Home Warranty doesn’t have an annual cap on claims payouts, so you don’t have to worry about going over your limit if you have multiple expensive repairs in a year.
Second Opinions for Denied Claims
If a claim is denied, both companies offer the option of a second opinion. The company will dispatch a second contractor at its expense, but it won’t reimburse costs if you use an unapproved technician. First American allows 14 days to request another opinion and will cover the repair if the technician disagrees with the denied claim. However, if the second technician agrees with the company’s initial assessment, you’ll have to pay another service fee.
American Home Shield’s policy is similar, though it only gives you seven days to request a second opinion. If the second opinion is in your favor, AHS will refund your service fee and approve the repair. AHS also reserves the right to request a second opinion at its own expense if needed.
In either case, getting a second opinion is a helpful option if you feel your claim was unfairly denied.
Item Exclusions by Plan
Unlike American Home Shield, First American’s exclusions vary based on the specific plan you choose. For example, the screenshot below shows that coverage for heating systems in the FAHW contract varies depending on whether you have a Starter, Essential, or Premium plan.
By contrast, American Home Shield applies the same exclusions across all its plan levels, so, for example, you would get the same heating coverage regardless of which plan you choose.
Cost Comparison
We requested quotes from both companies for a 1,798-square-foot single-family home in Cleveland, Ohio. Below, we compare the costs of home warranty plans offered by American Home Shield and First American Home Warranty.
Plan Cost
While both providers offer similar coverage, American Home Shield generally has cheaper base plans. Both companies have varying premiums—the amount you pay per month—and service call fees, or the amount you pay each time a technician visits your home for a repair. The providers also allow you to choose between a $100 or $125 service call fee. Picking the $100 option raises your monthly premium, while choosing the $125 fee lowers it.
Compare each provider’s monthly costs in the table below.
First American Home Warranty Monthly Plan Cost by Service Call Fee
| Starter Plan | Essential Plan | Premium Plan | |
|---|---|---|---|
| $100 service call fee | $57 | $72 | $92 |
| $125 service call fee | $52 | $67 | $87 |
American Home Shield Monthly Plan Cost by Service Call Fee
| ShieldSilver | ShieldGold | ShieldPlatinum | |
|---|---|---|---|
| $100 service call fee | $39.99 | $59.99 | $89.99 |
| $125 service call fee | $29.99 | $49.99 | $79.99 |
Add-On Costs
While AHS has cheaper base plans than First American Home Warranty, it charges more for add-on fees. First American Home Warranty charges between $2.08 and $20.83 per month depending on the add-on, while American Home Shield’s range is between $5 and $24 for similar coverage.
For example, if you add roof leak repair coverage, First American Home Warranty would cost an extra $8.33 per month, or $99.96 per year, while American Home Shield would charge an additional $10 per month, totaling $120 per year. Over the course of a year, this results in a savings of $20.04 with First American Home Warranty.
Compare each company’s add-on fees for various items in the tables below.
First American Home Warranty Add-On Costs
| Add-On | Monthly Cost |
|---|---|
| Additional refrigeration (up to three appliances) | $4.17 |
| Central air conditioning (Standard Plan only) | $8.33 |
| HVAC tune-up | $2.08 |
| Pool and spa equipment (up to two pools or spas) | $20.83 |
| Roof leak repair | $8.33 |
| Septic system | $7.08 |
| Water softener | $7.08 |
| Well pump | $7.08 |
American Home Shield Add-On Costs
| Add-On | Monthly Cost |
|---|---|
| Electronic protection plan | $14 |
| Guest unit | $15.99 |
| Pool and built-in spa equipment | $24 |
| Roof leak repair | $10 |
| Septic pump | $5 |
| Well pump | $8 |
Discounts
Both American Home Shield and First American Home Warranty offer discounts to help make coverage more affordable.
First American Home Warranty Discounts
Here’s a breakdown of the available discounts for First American Home Warranty:
- Military: FAHW offers a $25 discount for active and former U.S. Armed Forces members when buying or selling a home.
- Multiproperty: You can save up to $48 per year if you have home warranty plans for 2–4 properties, or $60 annually for five or more properties.
- Refer a friend: You can earn a $50 Amazon gift card each time you refer a friend, and your friend will get one, too.
American Home Shield Discounts
Below is a breakdown of American Home Shield’s available discounts:
- American Association of Retired Persons (AARP): AHS offers a 25% discount for AARP members, which customers can stack with other valid offers.
- Military: Active and veteran military personnel get $35 off, plus the option to combine the discount with other promotions.
- Multiple properties: You can get $50 off when signing up for plans for multiple properties.
- Refer a friend: For each successful referral, you can receive a $25 Amazon gift card, and your friend can also receive a $25 gift card.
Both companies also offer seasonal discounts during major holidays throughout the year. For example, when we pulled sample quotes for this article, American Home Shield was offering a Black Friday savings of 50% off its ShieldSilver and ShieldGold plans, while First American was running a Thanksgiving sale with $200 off its Essential and Premium plans.
Our Experience With First American Home Warranty vs. American Home Shield
To understand what it’s really like to interact with each company, members of our team bought home warranty plans from American Home Shield and First American Home Warranty and filed claims. Here’s how the companies stack up based on our real-world experiences.
Signing Up
Both First American Home Warranty and American Home Shield offer a smooth and easy online sign-up process, making it simple to get quotes and enroll. We used each provider’s online tools to compare plans and adjust service call fees to see the impact on overall costs.
First American Home Warranty’s sign-up process is straightforward, requiring just four steps. After choosing your plan, and service call fee, you can select your add-ons. Next, you’ll enter your contact and payment details. One downside is the company limits payment options to credit cards only.
American Home Shield also has a simple four-step process but offers more payment flexibility. Similar to FAHW, you select your plan, service call fee, and then your add-ons. AHS offers more payment options than FAHW, including credit cards, PayPal, and bank accounts.
While both companies make it easy to sign up, American Home Shield stands out for its broader range of payment options.
Claims Process
Our testers had generally positive experiences with both companies when filing claims. However, the providers differed in regards to efficiency, flexibility, and customer service. AHS processed claims quickly and had responsive customer support, while FAHW’s online portal made it easy to file a claim, but had occasional inconsistencies in service.
American Home Shield
Our American Home Shield tester found the claims process was quick and efficient. For his most recent repair, he filed a claim for a pipe leak through AHS’s online platform. The process was seamless, with immediate confirmation via email and text, followed by a call from a local contractor within five minutes.
An appointment was scheduled for the next day, and the contractor arrived early, completing the repair in under two hours while also addressing a mold issue caused by the leak. American Home Shield covered all repair costs, with our tester only responsible for the service call fee.
Our tester has been consistently satisfied with American Home Shield. He had several service requests, each resolved to his satisfaction. Technicians arrived promptly, typically within a day. The only exception was a previous HVAC claim, which required a follow-up after the initial repair didn’t fully address the issue. American Home Shield sent a technician the following day to resolve the problem.
First American Home Warranty
Our First American Home Warranty tester found that the claims process was efficient. He said the online portal was easy to navigate, and he received almost immediate confirmation for a recent garage door opener claim, along with a text containing the assigned technician’s contact information. Within an hour, the contractor called to schedule an appointment for the following Monday, as the claim had been filed on a Friday.
On the day of the appointment, the contractor arrived on time, completed the work in 20 minutes, and explained the cause of the breakdown and the repairs made. Like our American Home Shield tester, our First American Home Warranty tester only paid the service call fee.
While claims with First American Home Warranty were generally processed quickly—responses within an hour and appointments scheduled within three days—our tester experienced a few challenges. For example, the tester was once assigned a plumbing contractor who had poor online reviews. However, after raising concerns, First American promptly reassigned a new technician to handle the situation. Despite these setbacks, the overall response time and willingness to address issues were appreciated by our tester.
What Homeowners Say
Both First American Home Warranty and American Home Shield have mixed reviews from customers online. First American Home Warranty has a relatively strong presence on Trustpilot, with 4.1 out of 5 stars based on nearly 15,600 reviews at the time of this writing. However, it has a B rating from the Better Business Bureau (BBB), with a lower customer average of 1.8 out of 5 stars based on 1,800 reviews. This suggests that while some customers seem pleased with the service, the company has a significant number of complaints.
American Home Shield also has a B rating from the BBB, but its average score is slightly higher at 1.9 out of 5 stars based on over 9,700 reviews. On Trustpilot, American Home Shield fares somewhat worse than First American, with a rating of 3.4 out of 5 stars based on almost 7,700 reviews.
First American Home Warranty Reviews
Common themes we saw in First American reviews included praise for its affordable plans, quick claims approvals, and user-friendly online portal that simplifies filing and tracking claims. However, some reviewers mentioned having to pay unexpected out-of-pocket costs for repairs, dealing with limited contractor availability in rural areas, and experiencing inconsistent customer service communication. In addition, feedback about contractors’ professionalism and quality is mixed, with some homeowners having positive experiences and others reporting subpar service.
Below are positive and negative reviews for First American Home Warranty:
“We have comfort in knowing that our home is protected against major repair work. [An air conditioning] replaced when required, and no questions asked. However, we live in Rocky Mount, North Carolina, and the closest contractor was in Raleigh, [which is] 60 miles away. Our service could have been completed much quicker if there was a contractor in Rocky Mount available.” —Iris T. via Trustpilot, November 2024
“I have been a [First American Home Warranty] customer for many years. I had a problem with my water softener, which reduced the water pressure in the entire house. The water softener is 10-plus years old. I opened the case last week and they sent a contractor. The contractor showed up and started his inspection. Five minutes into the conversation with the contractor, I noticed that he did not know the basics of water softener… two days later, FAHW closed the case by even denying the coverage. I canceled my contract with them and [am] now putting this review out to inform people of the poor quality of service they offer.” —Behzad A. via Trustpilot, November 2024
American Home Shield Reviews
Many homeowners appreciated American Home Shield’s efficient claims process, often receiving contractor assignments quickly, sometimes within minutes. Customers also liked the company’s knowledgeable contractors. However, we noted some complaints about unprofessional contractors or poor work, as well as occasional delays in scheduling repairs. Some customers also reported frustration with claims being denied due to exclusions or fine print in contracts, which caught them off guard when filing a claim.
Below are sample reviews for American Home Shield:
“American Home Shield was very responsive to our needs and got right on it. No complicated paperwork. An authorized technician came within a reasonable time. He communicated with AHS, obtained equipment, and replaced our hot water heater. American Home Shield made it an easy process for us.” —Kathy T. via Trustpilot, November 2024
“I did not realize American Home Shield used contractors who do not follow local laws regarding local permits. We needed a new water heater. AHS sent out a plumbing company that did not get a permit. When I spoke to the local township, they told me all plumbers know it is required and the plumbers are responsible for obtaining the permit. American Home Shield will not stand up for us. In fact, they will not talk to me about it. It turns out the water heater was installed not up to code. We now have to pay another company $ 500 to correct things. Very poor customer service!” —Philip S. via Trustpilot, November 2024
How We Evaluated Home Warranty Providers
We use a detailed rating methodology to score each home warranty company we review. We conduct research by speaking with company representatives, requesting quotes, analyzing sample contracts, and running focus groups and homeowner surveys.
We use this information to score each provider in six categories that we think are most important when choosing a home warranty. We rate each provider across 23 factors within those categories. Each factor is assigned a point value based on its importance, totaling 100 points. We convert the final scores to a 5-star rating.
Here’s a breakdown of our weighted factors:
- Coverage (35%): This category looks at how comprehensive each provider’s coverage is, including whether it covers unique items. Companies that cover the most items and have higher annual limits receive the highest scores. We dock points from providers that impose long waiting periods or have depreciation policies that decrease your payouts for aging items.
- Cost (20%): We look at average monthly prices and service call fees. We give the most points to companies that offer pricing at or below the industry average and don’t impose any surcharges or extra fees.
- Trustworthiness (15%): To gauge reputation and reliability, we reviewed customer ratings across sites like the Better Business Bureau (BBB) and Trustpilot, as well as companies’ responses to complaints. We also checked for National Home Service Contract Association (NHSCA) membership. Providers with the highest ratings and longest workmanship guarantees received higher scores. We deducted points for any ongoing legal issues.
- Plan transparency (10%): We read terms, policies, and disclosures in provided contracts and on each company’s website. Providers with transparent contract details and policies receive more points.
- Customer support (10%): Companies with multiple claims filing options, fast response times, and accessible customer support score well in this category.
- Flexibility (10%): We award more points to providers offering more plan options, larger add-on catalogs, the ability to choose your own technician, and customer-friendly cancellation policies.
To share feedback or ask a question about this article, send a note to our team at reviews@thisoldhousereviews.com.