First American offers somewhat clearer coverage terms than competitors but still contains significant limitations. Contractor assignment restrictions and per-item repair caps can leave homeowners paying substantial out-of-pocket costs despite having coverage.
First American assigns all contractors and does not allow you to use your own repair service. Using an outside contractor, even in emergencies, voids coverage for that repair.
Many covered items have dollar limits that may not cover full replacement costs. HVAC caps often fall thousands of dollars short of actual replacement, leaving significant homeowner responsibility.
When repairs require bringing systems up to current building codes, the additional cost is not covered. This can add thousands to HVAC, electrical, or plumbing repairs.
Costs to access covered items (cutting drywall, moving obstacles) and modifications needed to install replacements are not covered. These "access fees" can exceed repair costs.
Disputes must go through binding arbitration with class action waivers. However, First American's arbitration clause is somewhat more balanced than competitors.
Coverage terms are more clearly written than competitors, making it easier to understand what is and isn't covered before purchasing.
Long-standing relationships with contractors often result in faster service response times compared to newer warranty providers.
Unlike some competitors requiring annual commitments, First American offers month-to-month payment options after initial term.