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Personal Finance > Insurance

Insurance

American Residential Warranty Review

By Nicole Valentine MONEY RESEARCH COLLECTIVE

November 21, 2022

Many homeowners believe that their homeowners insurance will cover anything that goes wrong in their house. But homeowners insurance doesn’t cover the cost of repairing or replacing home systems and appliances that break down. Major appliances and home systems can cost hundreds or even thousands of dollars to repair or replace. The best home warranties cover these costs so you don’t need to worry about unexpected mechanical breakdowns wreaking havoc on your budget.

American Residential Warranty is a top-rated home warranty company. This guide will give you all of the information you need to decide if their coverage is right for you. It will answer some of the most common questions about American Residential Warranty plans, such as how much American Residential Warranty costs, what American Residential Warranty covers and how much the American Residential Warranty service fee is. It will also help you understand the pros and cons of obtaining coverage under American Residential Warranty.

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American Residential Warranty overview

Lower service fees than most
Available in all 50 states
Homeowners can use their own contractors
Excellent consumer ratings

Claims must be filed by phone
Lower coverage caps for appliance repair/replacement

American Residential Warranty offers home warranty coverage on major home systems and appliances, which are not otherwise covered under homeowners insurance. Under the warranty, items that break down due to normal wear and tear can be replaced or repaired as needed. There are four plans to choose from, each offering coverage of different combinations of home items. When deciding whether these plans offer the coverage that best fits your needs, consider these questions:

What is the best pricing available for American Residential Warranty and what will my monthly cost be?
How much is the service fee for American Residential Warranty?
What are American Residential Warranty’s services?
What are the total coverage limits and coverage caps for individual items?

When deciding whether you’d benefit from a home warranty plan, consider how comfortable you are making household repairs yourself. If you’re not very adept at fixing appliances or just don’t have the time to undertake home repairs yourself, a home warranty may be a great solution for you.

Also take into consideration the age of your appliances and whether they are covered by a manufacturer’s warranty. If your appliances are mostly new and in good condition, it might not be worthwhile to invest in a home warranty.

American Residential Warranty coverage

Curious about American Residential Warranty coverage? Here’s a deep dive to help you make an informed decision.

What it offers

American Residential Warranty offers repair or replacement coverage on most major appliances and home systems, regardless of their age. Plans offer coverage on electronics, kitchen appliances, heating and cooling systems, plumbing and sewer systems, and more. It also covers damage whether it’s caused by external wear or a breakdown of internal mechanisms.

The following coverage limits apply:

The total coverage limit for any 12-month period is $5,000.
For central air conditioning systems, including heat pumps and central home heating systems that are under 10 years old, the 12-month liability limit is $1,000. This includes access, diagnosis, repair or replacement and installation.
For central air conditioning and home heating systems over 10 years old, the 12-month liability limit is $600. This amount increases by $50 for each full year you have coverage, up to a $1,000 limit.
For items covered under the Deluxe Advantage package, the yearly limit is $1,000.
For all other repairs and replacements, the yearly limit is $500 including access, diagnosis, repair or replacement and installation.
No repair or replacement cost will exceed the original cost of the item.

What it doesn’t offer

There is no coverage offered for appliances and systems that have pre-existing problems. This is a standard home warranty company exclusion.

All covered items should be in good working order when your coverage begins. American Residential Warranty plans do not cover routine maintenance, commercial appliances, disconnecting appliances or hauling away and disposing of covered products. Each covered appliance and home system has its own set of exclusions as well, which can be found by reading your warranty agreement.

American Residential Warranty does not offer coverage on electronic or computerized home systems such as energy, lighting, security and entertainment systems. Additionally, there is no coverage for item accessories such as knobs, buttons, handles and drawers. Damage due to weather, vandalism, pests, pets, misuse and abuse are also not covered under any American Residential Warranty packages.

American Residential Warranty plan coverage types

What does the American Residential Warranty cover and how much does an American Residential Warranty plan cost? The price you will pay for American Residential Warranty coverage, as well as the coverage you receive, will depend on the plan you select.

American Residential Warranty offers four different coverage plans: Ultimate Electronics Protection, Kitchen Plus, Platinum Premier and the 4-in-1 Bundle.

You may also purchase additional optional coverage for your pool or spa. Pool and spa coverage applies to repairs or replacement of above-ground components for heating and pumping systems, as well as gaskets, the primary circulator pump, motor, relays and impellers, back flush valves and check valves.

For $24.99 per month, the Ultimate Electronics Protection package covers computers, tablets, TVs, printers and gaming consoles.

Kitchen Plus

At $39.99 per month, the Kitchen Plus plan covers the following:

Interior electrical system including interior AC wiring, receptacles, switches, fuses, and single and two-pole breakers
Refrigerator
Range/oven/cooktop
Dishwasher
Built-in microwave
Garbage disposal
Kitchen exhaust fan
Gas, electric or tankless water heater
Up to $250 in food lost due to a prolonged refrigerator or freezer breakdown

Platinum Premier

The Platinum Premier plan costs $64.99 per month. It covers everything included in the Kitchen Plus plan, plus the following:

Central air conditioning
Central home heating
Humidifier
Plumbing system
Plumbing stoppages
Ductwork
Garage door openers
Ceiling fans

4-in-1 Bundle

The 4-in-1 Bundle offers the most comprehensive coverage at $129.99 per month. In addition to everything covered in the Platinum Premier plan, the 4-in-1 covers:

Washers and dryers
Water and sewer lines, including repairs, unblocking the lines, excavation costs, reseeding the grass and repaving the driveway

The 4-in-1 bundle also offers the Deluxe Advantage Package, which covers:

A/C refrigerant and coils
Refrigerant recapture
Plumbing faucets and fixtures
Permits/modifications/code violations
Toilets and internal mechanisms
Improper installation
Mismatched systems
Garage door springs and track

Are there any exclusions?

There are some exclusions to coverage under American Residential Warranty. According to a sample contract, the following exclusions apply:

Items that are not in good working order on the effective date of the contract
Items that break during the first 30 days of coverage
Appliances or systems outside the main confines of the home, except exterior air conditioner, pool and spa equipment and sewer lines
Commercial-grade appliances
Items not properly maintained
Items in a shared common area
Appliances or systems that are located in a historically registered property or a property used wholly or in part for business purposes
Items in an unoccupied residence

There are specific exclusions for water and sewer line repairs, including:

Damage caused by negligence or misuse
Damage caused by weather, pets, vandalism or any cause other than normal use
Lines that run under a body of water
Manufacturer recalls or defects
Any repairs related to environmental contamination
External water and sewer lines

This is not an exhaustive list of exclusions. See your plan’s terms and conditions to learn more.

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American Residential Warranty customer reviews

Although they are subject to abuse and manipulation, customer reviews can give some indication of how trustworthy a company is and what level of service it truly provides. Customers have consistently given American Residential Home Warranty positive reviews.

With over 800 reviews on Birdeye, American Residential Warranty has an average 4.8-star rating out of five. It received a five-star rating from Top Consumer Reviews and earned an A+ rating from the Better Business Bureau.

American Residential Warranty FAQ

Are there any cancellation fees?

There are no cancellation fees for any American Residential Warranty plans. All plans auto-renew unless cancellation is requested in writing. The American Residential Warranty cost may be paid monthly, quarterly or annually. Monthly plans will cancel at the end of the month during which cancellation is requested. For canceled quarterly or annual plans, you will receive a pro-rata refund for the remainder of the warranty term recalculated at the higher monthly rate minus any claims that have been paid.

If you move while your American Residential Warranty is active, you can transfer the warranty plan to the new homeowner for a one-time fee of $39. The plan cannot be transferred to a new residence.

How does the claims process work?

If you experience the breakdown of a home system or appliance that is covered under your warranty plan, contact American Residential Warranty as soon as you discover the issue. No work that is performed without prior notification to the warranty company will be reimbursed. You can file a claim and request service by calling the toll-free number on your service plan. Representatives are available to take your call at any time, day or night.

Service for emergency issues will be initiated within 24 hours whenever possible. For non-emergency issues, you can expect service to be initiated within 48 hours. A qualified service technician will come to your home to diagnose the problem and determine whether it requires repair or replacement.

There is a service fee that must be paid as a deductible before the technician can provide service, regardless of the plan you have. At only $55, this service fee is more affordable than the industry average. Refer to your Declaration of Coverage for more details about your service fee.

If a contractor cannot be provided to you by American Residential Warranty, you can have one approved from out-of-network provided that the contractor is properly licensed and insured. Once the problem is diagnosed by a technician and is deemed covered under your contract, the repairs or replacement will be completed and American Residential Warranty will cover the cost up to the applicable coverage limit.

Any repair that is performed by an approved technician is guaranteed for 30 days. If the repair fails during this time, it will be fixed without an additional service fee.

Are there limits on replacements?

Yes, there are limits on replacements. When a replacement is necessary, American Residential Warranty will replace the item with one that is similar in features, capacity and efficiency, but the replacement may not be the same brand or color or have the same dimensions. Additionally, extra features that do not contribute to the appliance's primary use, such as an internet connection or a television built into a refrigerator, will not be replaced.

In rare cases in which repair or replacement is not possible due to the unavailability of parts or equipment obsolescence, American Residential Warranty may offer you a cash settlement for the amount that would have been paid to repair or replace the item. But be aware that this amount may not be sufficient to purchase a replacement.

Our home warranty company evaluation criteria

When reviewing home warranties, some of the criteria we use to evaluate the provider are:

Reputation and customer reviews
Company’s history
Availability by state
Better Business Bureau rating
Pricing and service fees
Coverage limits
Selection of plans available
Ease of canceling plans
Speed of processing claims
The length of time repairs are guaranteed

American Residential Warranty summary

While many consumers report negative experiences with home warranty plans, American Residential Warranty is very highly rated and consistently receives positive reviews from its many satisfied customers. As with any home warranty, it is important to determine if the coverage the company offers is a good fit. Carefully review the warranty’s pricing and coverage limits as well as coverage exceptions to ensure it matches your needs.

Is American Residential Warranty worth it? That depends on your particular situation. American Residential Warranty is one of the more reputable and trustworthy home warranty companies. As such, if you decide that you’d benefit from having a home warranty plan, it’s a company well worth considering.

Nicole Valentine