Hi! Today we would be giving you a review of the American home shield warranty, with all its services.
What is American Home Shield Warranty
American Home Shield sells home warranties, also sometimes called “home repair insurance.” In exchange for a monthly fee, American Home Shield will pay to repair or replace any home appliance or system covered by your policy, like your refrigerator, stove, or your home’s HVAC system. You are only responsible for paying a set service fee per repair.
American Home Shield Warranty
In theory, home warranties like the ones offered by American Home Shield are compelling products. In exchange for a monthly fee, the provider covers all the costs of repairing or replacing major home appliances. Every repair has only a set flat service fee. The only exception to this is a maximum payout of $3,000 per appliance replaced or repaired.
However, American Home Shield struggles to live up to its promises. The company works with independent contractors who are assigned to service requests without customer input. Poor user reviews suggest that these contractors offer subpar service.
In cases where appliances are replaced, AHS guarantees the same features but not necessarily the same brand or quality. This may leave you with replacement appliances that are cheaper than what you originally had.
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In some cases, American Home Shield will allow you to take cash instead of repairing or replacing your damaged item. Unfortunately, this seldom works out in your favor. AHS pays you the amount it would have spent on a replacement, which can end up being much less than the retail cost.
To be fair to AHS, these kinds of complaints are common among home warranty companies in generals.
We recommend that you avoid buying a home warranty if you can afford to pay for potential repairs out of pocket.
If you are set on purchasing a home warranty or receive one as a free incentive when buying a home, American Home Shield is as good an option as any. Compared to rivals, AHS offers competitive rates and has fewer ambiguous exceptions in its policy. For example, AHS covers damage due to neglect or disrepair, which many other home warranties do not.
What American Home Shield Plans Cover?
Home warranties from American Home Shield only cover the items that you specify when you sign up. AHS separates these items into two categories: systems and appliances. You can choose to protect only your home’s systems or appliances, select a “combo plan” that includes both, or create a custom plan that corresponds to the items you own.
Systems: No dollar coverage limit
- HVAC with ductwork
- Smoke detectors
- Ceiling fans
- Water heaters
- Garbage disposals
- Instant hot/cold water dispensers
- Central vacuums
- Rekeying door locks
Appliances: Covered for repair or replacement up to $3,000 per item
- Washers and dryers
- Built-in microwave ovens
- Trash compactors
- Free-standing ice makers
- Garage door openers
- Built-in food centers
Optional AHS Coverage Add-Ons
- Swimming pool
- Hot tub
- Septic pump
- Well pump
Note that replacement items provided through an AHS warranty are guaranteed to have the same features as your original device, but not the same make, model, or color.
For example, a stainless steel Whirlpool refrigerator with a water dispenser will be replaced by another fridge with a water dispenser but not necessarily stainless steel or Whirlpool branding.
Types of Damage Covered by American Home Shield Warranty
American Home Shield covers a specific set of types of damage to your property. Any cause of damage or malfunction outside of these categories, or any damage from a specifically excluded cause, will not be paid for.
Covered damage causes include:
- Firstly, Normal wear and tear
- Also, Poor maintenance, rust, or corrosion
- Improper installation or previous repair
- Lastly, Unknown pre-existing conditions
The fact that AHS covers poor maintenance and neglect as acceptable causes of damage is notable. Most home warranty companies exclude damage to appliances due to neglect or poor maintenance.
American Home Shield Warranty Exclusions
American Home Shield warranties will not cover damage that’s caused by:
- Misuse or neglect
- Lightning, fire, or earthquake
- Manufacturer’s defects
The warranty also doesn’t pay for cosmetic damage, items still under a manufacturer’s warranty, or routine maintenance.
American Home Shield home warranty cost comparison
To understand how the cost of American Home Shield stacks up against its competitors, we collected sample prices from AHS, Sears, and TotalProtect. We found that American Home Shield’s monthly rates were competitive with other home warranty companies who offered similar plans.
Customer service reviews of American Home Shield
American Home Shield has troublingly negative reviews regarding its customer service. Many consumer complaints describe problems with the contractors that AHS hires, including lack of expertise and lengthy delays caused by frequent disagreements between the contractor and AHS.
Users also note the frequent difficulty in contacting AHS throughout the service request process, citing long telephone hold times and technical difficulties on the company’s website.
Some customers reported a positive experience with American Home Shield, and a few remarked on getting a brand-new high-quality appliance for little or no cost. However, the reason for purchasing a home warranty is to reduce uncertainty and provide peace of mind, and the inconsistency of customers’ experiences makes the service difficult to recommend.
AHS Home Repair Insurance vs. Homeowners Insurance
American Home Shield’s home warranty and a standard homeowner’s insurance policy both protect you from excessive costs when your home is damaged. However, they cover different parts of your home and ensure your property for different types of damage. For example, homeowner’s insurance covers a leaky roof while an AHS warranty does not.
As such, a home warranty is not a replacement for homeowners insurance (and vice versa). Whether you buy homeowner’s insurance and whether you buy a home warranty are separate decisions that you should make independently of one another.
Neither homeowner’s insurance nor home warranties are legally required in any state, though most mortgage lenders require you to buy home insurance to qualify for a loan. We recommend homeowners insurance under most circumstances, as it can save you hundreds of thousands of dollars if the worst happens; meanwhile, a home warranty will pay out a few thousand dollars at most.