American Residential Warranty review: A comprehensive guide to cost and coverage

ARW Home at a glance

American Residential Warranty scores well in our ranking of the best home warranty companies, standing out for low service fees, competitive plan prices and widespread availability.

Fast facts

What we like

American Residential Warranty offers sweeping protection with a solid selection of plans that cover most of the home systems and appliances you want. It has an above-average service fee, but as per our conversation with a customer service rep at ARW, this includes parts and labor, whereas most competitors include only labor. It also lets you choose your service technicians, a nice perk that often leads to better repair service.

What we don’t like

ARW’s plans are comprehensive, but they’re also expensive. The company’s most comprehensive coverage costs $75 to $85 a month. This is more than competitors like Choice Home Warranty and Select Home Warranty, which have plans that top out at $55 and $64, respectively.

ARW also has a below-average workmanship guarantee of 30 days. Consider that a competitor like AFC Home Warranty offers a lifetime guarantee for workmanship that lasts as long as your plan is active.

ARW Home pros and cons

Two things stand out about American Residential Warranty: Its service fee covers parts and labor, and you can choose your technician when you need a repair. Many home warranty companies don’t let you choose the contractors that work on your home. American Residential Warranty lets you choose who comes out for service, so you can use your favorite electrician or plumber and still benefit from ARW’s coverage.

ARW’s service call fee is not readily available online, and it can slide between $55 and $125 per visit. However, we spoke with ARW and confirmed that this price includes parts and labor, so you could save money over a plan with a low service fee that doesn’t include parts, as those materials can drive up the total out-of-pocket costs.

American Residential Warranty’s all-in coverage limit is $5,000, well below American Home Shield’s $50,000 limit. You’ll also have to notify the company in writing by mail if you want to cancel your coverage. The company charges a $49 cancellation fee if you want to discontinue your coverage within the first year.

Pros

Cons

How much does ARW Home cost?

American Residential Warranty has three different plans to choose from: Appliance Max, Systems Max and Total Max. The monthly cost and service fee for each plan are shown below:

Monthly Cost

The Appliance Max plan covers common household appliances and is the least expensive of ARW’s three plans. The Systems Max plan is more expensive because it covers home systems, such as your electrical and plumbing systems, which can be more costly to repair. The Total Max plan combines coverage from the Appliance Max and Systems Max plans to protect both your home’s systems and appliances.

American Residential Warranty doesn’t list its service call fee, but we called the customer service line to confirm that it can be as low as $55 per visit or as high as $125. So, depending on that fee, the servcie call fee is either well below or above industry average.?For example, American Home Shield charges $100 to $125.

ARW offers extra coverage for your water line, sewer line and household electronics for an additional monthly fee. The water and sewer line coverage ranges from $10.99 to $23.99 per month. The electronics coverage costs $24.99 per month.

Savings and discounts

ARW doesn’t give discounts for annual billing or money-back guarantees, but it does provide a $120 signing discount for new customers. That brings the plan prices down to the following values:

The company’s website doesn’t indicate if this deal is a limited offer.

What services does ARW Home offer?

American Residential Warranty’s services depend on the plan you pick. The Appliance Max plan covers only appliances, the System Max plan protects your home systems and the Total Max plan covers both appliances and systems. All three plans have the same financial caps, limits and waiting periods.

Your coverage goes into effect 30 days after you sign up. This waiting period is a standard industry practice among home warranty companies to prevent customers from abusing its coverage. Even so, some companies offer limited coverage for the first month. AFC Home Club, for example, covers $150 for problems that arise within the first 30 days. ARW does not cover any issues within that waiting period, even if they’re included in your chosen plan.

American Residential Warranty has lower coverage caps than many of its competitors. This table shows how its coverage limits compare to those of some competitors.

The below-average coverage limits indicate ARW might not be the best home warranty provider for you if you have older systems and appliances and if you suspect that they may need major repairs or full replacements in the near future.

American Residential Warranty services

ARW Home add-ons and optional features

American Residential Warranty offers four optional add-on packages: Water line coverage, sewer line coverage, pool coverage and electronics protection.

Water and sewer line coverage

ARW will cover your water and sewer lines for additional monthly fees. You can add just water line protection, sewer protection or both. ARW divides coverage into the following packages:

Pool coverage

Swimming pool coverage protects your working and accessible components located above ground. It includes all parts of your heating and pumping equipment, gaskets, pumps, motors, relays, impellers and valves. The coverage costs an additional $13.99 per month.

Electronics plan

This optional add-on coverage protects your household electronics from power surges, everyday wear and tear and manufacturing defects for an additional $24.99 monthly. It covers the following electronics:

It comes with protection for workmanship defects, physical damage from drops and bangs, mechanical failure, electrical failure, power surge protection and laptop battery replacement.

What does ARW Home not cover?

American Residential Warranty’s plans don’t cover the following items:

The list above is not exhaustive and may vary by contract. Read your agreement carefully before you sign it to ensure it covers everything you want.

ARW Home customer experience

American Residential Warranty responds to claims quickly, typically within 48 hours. You can submit a claim through the company’s website by filling out a simple form or contacting the company by phone. New customers can also sign up via telephone or the online service request form and payment processing platform.

ARW has a reputation for providing good customer service. The company maintains an A- rating from the Better Business Bureau (BBB) and has an average Trustpilot rating of 3.8 stars out of 5. The company scores higher than many of its competitors for customer satisfaction. For example, Choice Home Warranty and Select Home Warranty have BBB customer ratings of 1.04 and 1.29, respectively, but ARW scores 2.2.

Some reviews mention that reimbursements are sometimes lower than the customer expected, which isn’t surprising since reimbursement depends on many factors related to the specific claim filed.

Here are two American Residential Warranty reviews from current customers:

The fine print: Terms and conditions you should know

Your contract will detail what is and is not covered by your plan and describe in detail what exclusions apply. It will also state your coverage limits per item, which you should review carefully so there are no surprises if you run into major repairs or replacements.

Specifically, you should be aware of the 30-day waiting period that prevents ARW from having to pay out for service or replacements within 30 days of signing up for the policy. You might also be subject to a $49 termination fee if you cancel your contract before it expires. Finally, you’re responsible for routine maintenance on your covered items and could be denied coverage if you fail to perform and document that maintenance.

ARW’s terms and conditions include some notable perks, including the opportunity to shop for discounted appliances through the company’s partners if you need a replacement. The company also offers up to $250 coverage for food spoilage during blackouts, which provides some peace of mind during outages.

You can read a sample contract on ARW’s website, but remember that it’s only an example. Your contract’s terms may differ.

ARW Home vs. competitors

American Residential Warranty is our second-highest-rated home warranty company, ranking only behind Select Home Warranty. It’s the best choice if you expect to make frequent claims. Though its service fee is higher than Select’s, which ranges from $75 to $100, it includes both parts and labor, which could save you money over time.

ARW also scores highly in plan variety, service-call pricing, and customer service but loses points due to higher plan costs and a less-than-desirable cancellation policy. ARW’s most expensive plan costs $84.99 per month. This is more expensive than Select’s premium plan, which costs $63 per month, but less than American Home Shield’s top offering, which comes in at $140.

American Residential Warranty competitor comparison

Methodology

The CNN Underscored team scored more than 20 home warranty companies using 16 hand-picked metrics to devise an overall quality score. Our analysis of each company’s plans and coverage determines more than 25% of its overall score. An additional 20% comes from pricing, including monthly rates and service call fees.

Our analysis also included an attempt to quantify more nebulous aspects of each company, such as the quality of its customer service and reputation among existing customers. We pored over ARW home warranty reviews from the BBB and Google reviews, giving higher scores to companies with fewer negative reviews. Customer satisfaction makes up 10% of our overall score.

Finally, we included an analysis of each company’s guarantees and cancellation policies. We gave companies with forgiving money-back guarantees a boost and penalized companies with less-than-ideal cancellation policies.

FAQs