American Residential Warranty Review

American Residential Warranty Offers Home Coverage and Low Fees.

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American Residential Warranty

Investopedia’s Rating
4.7

Our Take

American Residential Warranty is a home warranty company based in Boca Raton, Florida, that serves all 50 states. With six standard plans and the option to customize a plan to your unique needs, American Residential Warranty offers flexibility for most homeowners. Their monthly fees cover the cost of repair or replacement of most major home systems or appliances. 

American Residential Warranty has an A+ rating from the Better Business Bureau and relatively high satisfaction rates from users. We’ve explored American Residential Warranty’s plans, and what they cover so you can decide whether one of their plans is right for you.

  • Pros & Cons
  • specifications
Pros & Cons
Pros
  • Provides optional coverage for electronics

  • Can choose your own service technician

  • Can build a custom plan with additional coverage options

Cons
  • May need additional coverage for duplicate appliances

  • Older appliances may not be covered

specifications
Website
N/A
Year Founded
2009
Average Annual Cost
$554.88
Service Fees
$55 - $75
Response Time
24 - 48 hours
Payout Cap
$2,500 per item
Coverage Area
AK, AL, AR, AS, AZ, CA, CO, CT, DC, DE, FL, GA, GU, HI, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MP, MS, MT, NC, ND, NE, NH, NJ, NM, NV, NY, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UM, UT, VA, VI, VT, WA, WI, WV, WY
Out of Network Technician
Yes. With prior authorization
Pricing Available Online
Yes
Sample Contract Available
Yes
Waiting Period
Yes
Why Trust Us Investopedia collected key data points from several home warranty providers to identify the most important factors to customers. We used this data to review each provider for cost, availability, coverage options, and other features to provide unbiased, comprehensive reviews to ensure our readers make the right decision for their needs. Read our Full Methodology
38 Providers reviewed
35 Criteria considered
875 Data points analyzed
59 Primary data sources used

Company Overview 

American Residential Warranty was founded in 2009 in Boca Raton, Florida. Operating in all 50 states, the company partners with some of the largest companies in the nation, such as AIG, The Amynta Group, Lowe’s, GE Appliances, Asurion, and ADT. 

American Residential Warranty offers four standard plans for most household systems, including kitchens, HVAC, washers and dryers, and electrical systems. They also provide two bundled plans that offer more coverage. Home warranty programs like these can often save homeowners from high repair and replacement costs. 

Compared to other home warranty companies, American Residential Warranty provides solid ratings from the Better Business Bureau and good reviews from clients, although negative reviews have accelerated in the last year. 

States Covered 

American Residential Warranty offers coverage in all 50 states, although services in California, Iowa, Texas, and Virginia are handled through AIG Warranty. 

  • Alabama
  • Alaska
  • Arizona
  • Arkansas
  • California
  • Colorado
  • Connecticut
  • Delaware
  • DC 
  • Florida
  • Georgia
  • Hawaii
  • Idaho
  • Illinois
  • Indiana
  • Iowa
  • Kansas
  • Kentucky
  • Louisiana
  • Maine
  • Maryland
  • Massachusetts
  • Michigan
  • Minnesota
  • Mississippi
  • Missouri
  • Montana
  • Nebraska
  • Nevada
  • New Hampshire
  • New Jersey
  • New Mexico
  • New York
  • North Carolina
  • North Dakota
  • Ohio
  • Oklahoma
  • Oregon
  • Pennsylvania
  • Rhode Island
  • South Carolina
  • South Dakota
  • Tennessee
  • Texas
  • Utah
  • Vermont
  • Virginia
  • Washington
  • West Virginia
  • Wisconsin
  • Wyoming

Available Plans

American Residential Warranty offers four standard home warranty plans as well as two bundled plans. 

  • Heating and Cooling-Covers central heating and air, humidifiers, interior electric systems. 
  • Kitchen Plus-Covers interior electrical system and all major kitchen appliances, including exhaust fans, dishwashers, built-in microwaves, range tops, water heaters, and refrigerators. 
  • Platinum-A combination of the heating and cooling and Kitchen Plus plan. 
  • Platinum Premier-Covers all under the Platinum plan plus plumbing, ductwork, garage door openers, refrigerator ice makers, and ceiling fans. 
  • 3 in 1 Bundle-Covers all in the Platinum Premier plan as well as Deluxe Advantage, which includes A/C refrigerant and coils, refrigerant recapture, plumbing faucets and fixtures, permits, modifications and code violations, toilets and internal mechanisms, improper installation, mismatched systems, and garage door springs/tracks. Washers and dryers are also covered under this plan. The 3 in 1 also includes the Ultimate Electronics Bundle, which covers TVs, computers, gaming systems, routers, printers, and more. 
  • 4 in 1 Bundle-Covers all in the 3 in 1 bundle, as well as sewer and water lines.

Optional Coverage

Optional coverage allows you to purchase additional coverage for items that are not included in your regular plan for an additional monthly cost.

Covered Items  Heating and Cooling  Kitchen Plus  Platinum Platinum Premier
Central Air  Conditioning 
Washer and Dryer
*Available at an additional cost
✓* ✓* ✓* ✓*
Central Heating 
Humidifier 
Interior Electrical System 
Refrigerator 
Range/Oven
Dishwasher
Built-in Microwave
Garbage Disposal 
Kitchen Exhaust Fan 
Water Heater
Plumbing system 
Plumbing stoppages
Ductwork 
Garage Door Opener
Refrigerator Ice Maker 
Ceiling Fans

Real Estate Plans 

American Residential Warranty also markets their plans to realtors and sellers. While they don’t list realtor-specific plans, they do market the benefits of selling a home that comes with a home warranty in place. 

Plan Pricing 

American Residential Warranty offers competitive pricing for the coverage offered. They offer both monthly plans, as well as annual plans, and offer free cancellation. Prices start at $34.99 per month for the Kitchen Plus plan and go up from there. In addition to the monthly fee for each plan, service call fees range from $55-$75 per visit, which is very affordable as compared to other plans. 

We compared pricing plans in four states–Florida, New York, California, and Texas–and prices were identical across the board. 

  • $419.88 annually for Kitchen Plus 
  • $479.88 for Heating and Cooling
  • $599.88 for Platinum
  • $719.88 for Platinum Premier

The overall average plan cost for American Residential Home Warranty is $554.88, which is below the average cost of the 25 companies for which we collected data.

Bundled plans such as the 3 in 1 or the 4 in 1 plan were considerably more expensive. While the 3 in 1 and 4 in 1 plan both include the Deluxe Advantage plan and the Home Electronics plan, only the Home Electronics plan has a listed price of $24.99 per month. 

Optional Add-ons

American Residential Warranty offers add-ons that expand coverage outside of the established plans. 

Add-ons include: 

  • Well pumps
  • Pools and spas
  • Food spoilage
  • Plumbing advantage
  • Washers and dryers
  • Additional range tops or ovens
  • Additional refrigerators
  • A/C advantage
  • External water or sewer lines
  • Water heater
  • Ceiling fans
  • Built-in microwave
  • Plumbing system 
  • Icemaker

Types of Damage Covered

Like most home warranties, American Residential Warranty covers mechanical failure due to normal wear and tear. They promise a repair or replacement in these situations, but homeowners should be aware that the condition of their appliances can affect coverage. For example, appliances that are more than ten years old are only covered for repairs up to $300. 

Plan Exclusions 

American Residential Warranty excludes damage from misuse or abuse. For example, a garbage disposal that is broken because of glass or bones would not be covered. Their plans also only cover single-family residential homes. If the home is being used as a daycare, church, or other commercial gathering space, damages are not covered. 

Additionally, American Residential Warranty typically doesn’t cover broken springs, doorknobs, or handles, unless specifically stated. For example, fixtures are included in some plumbing coverage, but only if noted. 

Read your contract carefully. In some cases, fixtures like knobs or faucets are covered, but only if you purchase a higher level of plan. Don’t be caught unaware. 

Payout Caps and Limitations 

As with most home warranty companies, there are limits to what American Residential will payout. Generally, there is a pay cap of $2500 per system, per year. Depending on the item or system, it may be much lower. Please read your contract carefully when it comes to payout caps. As mentioned above, older appliances are limited by their age, as it pertains to repairs. 

Payout caps vary depending on the system or appliance. It is important to note that the age of your appliance or system will determine the payout cap. As an example, if a system or appliance is over 10 years old, the limited payout amount is only $300. This amount does increase by $50 for each full year the customer has been in the program, however, for up to a maximum amount of $500. The payout cap for overall repairs and/or replacements is $5,000 per 12-month period.

Claim Response Time 

American Residential Warranty offers average claim response times with an average of 36 hours after a claim for a visit from a repair person. One factor that speeds up repair times is the ability to use your own repair contractor, with pre-approval from the company.

Customer Service and Claims Process 

American Residential Warranty offers around-the-clock support for their customers, with phones answered 24/7. Claims can be made by phone, and members are provided two separate call numbers–one for their state and one for the Ultimate Electronics Protection program if they carry it. 

After calling, the company will initiate a service visit within 48 hours. Emergency calls are attended to within 24 hours. Emergency calls are considered anything involving systems that affect the safe habitation of the home, such as a broken air conditioner during a period of extreme heat or central heating during extreme cold. 

As mentioned above once you have called and filed a claim, you can usually expect service within two business days. Unlike some home warranty companies, American Residential Warranty allows you to use your own service provider as long as you receive the authority to do so before a repair attempt is made.

Customer Satisfaction 

American Residential Warranty rates an A+ with the Better Business Bureau and a TrustScore of 4.0 with Trustpilot. Seventy-one percent of customer reviews on Trustpilot rated American Residential Warranty as ‘Excellent’. However, the most recent reviews routinely rated the company with one star, most often citing a lack of response and poor customer service.  

Similarly, reviews on the Better Business Bureau started trending toward one star in mid-2021. However, of the 276 people who submitted reviews the average rating was 3.62, which is well above average despite the recent trend. To their credit, American Residential Warranty has responded to each of the negative reviews with offers to correct issues. 

American Residential Warranty Vs. Cinch Home Warranty

We compared plans from American Residential Warranty and Cinch Home Warranty. Both offer comparable pricing and service available in more than 75 percent of the U.S. Cinch was established in 1979 and holds a B rating with the BBB. 

Here’s how the two companies compare:

  American Residential Warranty Cinch Home Warranty
Average Cost of Plan  $554.88 $567.49
Number of Plans Available 4 3
Customer satisfaction, BBB Score (and number of reviews) 3.62/5, A+ BBB
245 reviews 
1.14/5, B rating for BBB
1,215 reviews
Service Fee $55-$75 $100-$150
States Covered  All 50 states  All states but AK, IO, HI, MA

As you can see, despite a decline in customer satisfaction in recent months, American Residential still maintains higher customer service marks and significantly lower service fees than Cinch Home Warranty.

Verdict

American Residential Warranty offers a variety of plans and the flexibility to cover a variety of needs. With average pricing and above-average customer satisfaction scores, ARW is a solid bet for your home warranty needs. 

With coverage in all 50 states, options for a home electronics coverage plan, and some of the lowest service visit fees in the industry, ARW offers coverage that many home warranty companies skip. American Residential Warranty’s 24/7 support and fast response time also place it in the top tier of home warranty companies.

Frequently Asked Questions

How much does an American Residential Warranty plan cost?

American Residential Warranty plans start at $34.99 per month for the Kitchen Plus plan. More comprehensive coverage is available across its four standard plans and two bundles. Additional add-ons are also available.

What is the response time after filing a claim?

For a standard claim, response time for a service visit is 48 hours but according to survey results, the average time for response is 36 hours. Emergency call responses are faster, with a 24 hour turnaround time.

What does the plan not cover?

Your home warranty plan doesn’t cover breakage due to misuse, neglect, or extreme circumstances such as storm damage or burglary.

While American Residential Warranty covers breakdowns for appliances and major home systems, there are quite a lot of exclusions, and they do not cover many smaller issues such as broken springs, doorknobs, or handles. This is normal for most warranty plans, but you should read your policy closely to ensure there are no hidden surprises if you need to make a claim.

How do consumers file a claim?

American Residential Warranty requires customers to call for service, and they are available 24/7 to receive your calls. They do not provide a way for you to make a claim online, however. Also, unlike some companies, you are required to pay the trade service fee prior to the scheduling for service. Customers may use a credit or debit card to do this. 

Methodology

There are several aspects to consider when evaluating a home warranty company and its coverages. To assist in your decision process, our methodology for reviewing home warranties includes a quantified scoring system that evaluates four major categories - total plan cost, coverage and support, customizability and transparency. Within those four major evaluation categories we look at 18 core features that include annual plan fees and service fees, claim response times, payout caps, states available, contract length range, customizable coverages, ability to use own repair person, free cancelation, plan pricing, plan exclusions and other plan provisions available online. We assign fractional score values ranging from 0.00 to 1.00 points for each feature and then weight those feature values according to subject matter expert advice and consumer survey importance ranking.  We also compare features for each company to industry average values determined from our data collection for the top 25 home warranty providers. Third-party ratings and customer satisfaction scores are factored in to help assess a home warranty company’s overall quality, suitability and value.