Are Home Warranties a Waste of Money 2

Are Home Warranties a Waste of Money? One Clause Made Us Look Twice

A closer look at First American’s sample contract, and what it means for homeowners who want help with an unexpected repair bill.

2026 Ways for Homeowners to Save

Edition: Home Warranties

By Tommy Barnes ◦

Published on September 21, 2026 at 12:10 pm

“Lack of maintenance”….We didn’t expect to find those words in a home warranty contract’s description of what it covers. But First American’s sample contract explicitly includes malfunctions caused by lack of maintenance, rust, corrosion and sediment buildup.

There are conditions, including a requirement to keep up routine maintenance. Still, that sentence gave us a concrete reason to take a closer look.

The Clause That Caught Our Attention

Here’s the wording in the sample contract:

✅ “This contract provides coverage for systems and appliances which malfunction due to lack of maintenance, rust or corrosion, or chemical or sedimentary build-up.”

Those are specific causes of a breakdown, spelled out in the agreement.

For a homeowner worried that the cause of a failure will leave them paying the repair bill alone, that wording gives you something concrete to evaluate.

There are conditions. This sample excludes pre-existing problems and requires items to be in good, safe working order when coverage starts. It also requires routine maintenance, so the clause isn’t permission to stop caring for your equipment.

The reason to consider First American is right there in the contract. Your next step is to check that the plan offered for your home includes the protection you want.

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Start With the Things You’d Hate to Pay to Replace

Think about the appliances and systems you depend on every day. The refrigerator holding this week’s groceries. The washer halfway through a load. The water heater you expect to work tomorrow morning.

The sample contract shows how coverage can be selected around those needs:

Each category has its own exclusions and, in some cases, dollar limits. These are the sample’s plan names and groupings, so use your current quote and contract to confirm what’s included.

Make a short list of the items you most want protected. That gives you a practical way to choose coverage and compare the price.

You Have Somewhere to Turn When a Covered Item Breaks

Under the sample’s service process, you report the problem to First American. Once coverage is confirmed, the company dispatches the request to a qualified contractor, who contacts you to arrange an appointment.

First American determines whether a covered item will be repaired or replaced, subject to the agreement’s terms and limits.

That gives you a starting point when something goes wrong: a company to contact and a process for getting the covered problem addressed.

You still pay a service call fee. And you need approval before arranging work yourself; the sample says unauthorized services won’t be reimbursed.

What You’d Still Pay Matters, Too

A useful quote should help you understand the full commitment. Look at the plan price, the service call fee, and the costs the contract leaves with you.

The sample makes several boundaries clear:

An existing breakdown is excluded. The equipment must be working when coverage begins.
Coverage has limits. Some repairs carry dollar caps, and certain parts and expenses are excluded.
Replacement doesn’t mean your choice of brand. The sample specifies similar features, efficiency and capacity, without promising a matching brand, size or color.
Damage beyond the covered item can remain your responsibility. The sample excludes consequential losses, including food spoilage and additional living expenses.

Knowing those details up front helps you decide whether the protection fits your home and your budget.

Get the Numbers Before the Next Breakdown

If you’d prefer to keep money set aside for repairs and handle them yourself, that’s an option to compare.

If you want help with covered repair or replacement costs, First American gives you a concrete reason to take the next step: the sample expressly addresses the kinds of failure causes that can make coverage valuable.

Get a quote for your home. Check the coverage for the appliances and systems you care about most, then compare the price and service fee with what you’re comfortable paying yourself.

Do that while everything is still working. This sample excludes pre-existing conditions, so waiting until an appliance fails would leave that breakdown outside its coverage.