What is Home Warranty?
In simplest terms, a home warranty is a service contract that provides coverage for normal wear and tear of major household components, such as appliances, HVAC systems, plumbing, electrical wiring, etc, over a given period. These contracts protect you from high repair or replacement costs in the event of a sudden appliance breakdown or home system failure.
The home warranty industry has grown in leaps and bounds through the years, but there’s one provider that claims to have pioneered it in the United States — American Home Shield®.
In this home warranty provider review, we’ll look closely at their services, including warranty plans and pricing to help you decide if an AHS home warranty is right for you.
American Home Shield at a Glance
American Home Shield is a leading name in home warranty. The company was founded in 1971 in response to the dire need among homeowners seeking protection from the financial obligations and inconveniences of household breakdowns. To that end, they provide coverage against home appliance and system breakdowns due to normal wear and tear or improper maintenance.
American Home Shield is based in Memphis, Tennessee, and currently offers comprehensive home warranty plans across the United States, except in Alaska, New York City, and certain zip codes in Hawaii.
With over 2,000 employees and a wide professional network comprising over 17,000 local, licensed, and pre-screened home service professionals, American Home Shield is one of the largest home warranty providers in the country. Over the last 10 years, the company has paid out $3 billion in home warranty claims.
How it Works
The home warranty process is straightforward. You purchase coverage for selected home systems and appliances. You get to choose the coverage level based on what best suits your home for the year.
When any of these covered systems breaks down, you call American Home Shield to take care of it. They’ll send a licensed contractor to come take a look and provide the necessary repairs.
The best part of this is that all of this work is done with very little cost to you. All you are responsible for, in most cases, is your deductible. The rest of the repair cost including parts and labor, is covered by American Home Shield as part of your coverage.
There are times when the item is beyond repair and it’s just better to replace it. In such cases, American Home Shield’s repair or replacement policy comes in handy. The company covers the full cost of replacing the item.
As a policyholder, it’s easy to put in an American home shield service request as there’s only one number to call when things go wrong or you can simply log in to your account and do it online. There are also exclusive member perks, such as discounts on new home appliances, scheduled HVAC system tune-ups, and professional tech installations.
American Home Shield Warranty Plans
American Home Shield services three home warranty plans that cover the repair or replacement costs of 23 major home systems and appliances. These are:
- ShieldSilverTM
- ShieldGoldTM
- ShieldPlatinumTM
ShieldSilverTM is your basic AHS Home Warranty plan. It provides coverage for up to 14 major systems, including air conditioning, plumbing, heating, and electrical systems. Even at this level, American Home Shield does not cap coverage for covered components of major home systems such as HVAC and plumbing.
The ShieldGoldTM plan provides coverage for all 14 home systems and appliances in the ShieldSilverTM plan, plus 9 everyday laundry and kitchen appliances. There’s a dollar limit of $3,000 coverage for each appliance in this plan.
The AHS ShieldPlatinumTM plan provides coverage for all 23 home systems and appliances in the ShieldGold planTM. There are a few added benefits too — pre-season HVAC tune-ups, roof leak coverage, roof leak repairs, unlimited refrigerant for your air conditioner, and more. Under this plan, appliances are covered up to $6,000 for repairs or replacements.
Shop our plans.
Find a plan that’s right for you. We’re super flexible.
ShieldSilver™
- Heating and Air Conditioning Systems
- Electrical Systems
- Plumbing Systems
- Discounted Home Maintenance Services**
- Up to $5,000 for Heating and Air Conditioning Systems
ShieldGold™
- Heating and Air Conditioning Systems
- Electrical Systems
- Plumbing Systems
- Discounted Home Maintenance Services**
- Up to $5,000 for Heating and Air Conditioning Systems
- Kitchen Appliances
- Laundry Appliances
- Up to $2,000 per appliance for repair or replacement
ShieldPlatinum™
- Heating and Air Conditioning Systems
- Electrical Systems
- Plumbing Systems
- Discounted Home Maintenance Services**
- Up to $5,000 for Heating and Air Conditioning Systems
- Kitchen Appliances
- Laundry Appliances
- Up to $4,000 per appliance for repair or replacement
- Roof leak repairs (up to $1,000)
- Up to $250 in coverage for code violations and permits
- FREE HVAC Tune-up**
- Unlimited A/C refrigerant
- Coverage for code violations and permits
AHS Home Warranty plans cover appliances and systems regardless of age or pre-existing undetected conditions. You’re not required to provide maintenance records for coverage to kick in. The costs of removing old systems and appliances are also covered.
The company also offers a workmanship guarantee for repairs. However, this is limited to within 30 days of service.
How Much Does American Home Shield Cost?
The ShieldSilver™ plan starts at $39.99/month; the ShieldGold™ at $49.99/ month; and the ShieldPlatinum™ at $69.99/month. You can purchase add-on covers for your pool, guest unit, and septic and well pumps.
Members can also further customize their plan and pricing by choosing from three trade service call fees — out-of-pocket expenses for professional home services — at $75, $100, or $125. This can help them adjust the monthly costs to better suit their needs.
Overall, prices for American Home Shield Warranty home plans are slightly on the high side compared to other providers’ plans. However, their higher limits and wider coverage tend to balance things out.
What Does American Home Shield Not Cover?
American Home Shield warranty plans do not cover the following:
- Fire sprinkler systems
- Chimneys, flues, venting, and exhaust lines
- Solar power systems and components
- Stand-alone freezers
- Routine maintenance or system and appliance upgrades
This is not an exhaustive list. Check out the AHS Home Warranty guide to learn more.
American Home Shield Real Estate Home Warranty Plans
These plans are designed to protect the interests of both buyers and sellers in a real estate transaction.
For buyers, a comprehensive warranty coverage helps provide cover against issues that may have been missed during inspection. On the other hand, home warranties provide sellers with a competitive edge in the market, helping their listings stand out better. Plus they help simplify closing concerns since there’s already a plan in place to address potential issues post-sale.
American Home Shield offers three real estate home warranty plans — ShieldEssential, ShieldPlus, and ShieldComplete. They cover a wide range of home systems and appliances, including roof leak repairs, heating & cooling systems, kitchen and laundry appliances, plumbing, and electrical systems. There are also add-on covers for home electronics, pools and inground spas, wet bar refrigerators, wall and septic pumps, and guest units.
What are People Saying About American Home Shield?
Features and benefits statements are great and all, but if they’re not backed by stellar customer experience, then it’s all moot. For the purposes of this American Home Shield review, we’ve scoured the web for the most recent user feedback and ratings.
The reviews team at This Old House rates American Home Shield 4.7/5, naming them the best home warranty provider as of January 2023. Coverage caps, flexible service fees, and nationwide availability contributed to the company’s rating. The biggest drawbacks include higher monthly premiums and the meager 30-day guarantee for completed repairs.
As of December 2022, U.S. News contributor Taylor Sansano rated the company 3.9/5, naming it the third overall best home warranty company of 2023. The standout feature is its above-average roofing coverage, as well as the fact that maintenance records are not required to process claims. Service non-availability in Alaska, no appliance-only plan, and slightly more expensive monthly premiums were the crux of the negative reviews.
Lauren Murphy at Forbes rates American Home Shield a solid 4.7/5 as of October 2022. Nationwide availability, competitive pricing, and extensive scope of coverage were the main reasons behind the rating. The biggest issues raised were about denied claims and poor customer service, which understandably are impossible to ignore. As a policyholder, the last thing you want to hear is that your claim has been denied over some misunderstanding with the fine print.
Over at Investopedia, Homeownership expert Kate Hornsby rates American Home Shield 4.3/5 also as of October 2021. This review was based on the analysis of 38 home warranty providers, 59 primary data sources, 35 criteria considered, and 875 data points.
Lastly, Amanda Lutz at Architectural Digest gave the company 4.3/5 stars as of September 2022. Available plans, price range, industry reputation, customer support, plan coverage, and additional features were the main criteria considered in arriving at this score.
Other Consumer Ratings Across the Web
American Home Shield features a testimonials page on its website. Customer reviews here have been largely positive with the majority of them awarding 5-star ratings.
Users also left their reviews of the company on Consumer Affairs, rating it 4.3/5 as of January 2023.
And finally, on the other end of the scale, we have a 1/5-star rating from Matt Timmons at ValuePenguin also in January 2023. The main issue highlighted was American Home Shield’s subpar customer service. Generally, it would seem there is a disconnect between what the company promises and what it actually delivers. Customer service suffers as a result while the complaints continue to pile up.
Our Rating
Overall, we rate American Home Shield 4.4/5 stars. This is based on its industry reputation, comprehensive home warranty coverage, nationwide availability, generous coverage caps, and the ability to choose your own service fee.
However, we cannot overlook the many American Home Shield complaints from disgruntled customers, especially with regard to denied claims. That’s why the company dropped points in our book.
American Home Shield Home Warranty Pros & Cons
Pros
- Coverage for up to 23 home systems and appliances
- No dollar limit for repairs or replacements of major home systems, including HVAC, plumbing, and electrical systems
- Coverage caps of up to $6,000 to repair or replace appliances
- Comprehensive coverage even for older appliances, improper installations, unknown preexisting conditions, and improper maintenance
- Wide network of local, licensed contractors
- Exclusive member perks, including discounts on home services and seasonal home system maintenance
Cons
- Several customer complaints about denied claims across online review sites
- Slightly higher premiums compared to other home warranty providers
- Customers are required to use only contractors approved by American Home Shield
- No appliance coverage at the ShieldSilver™ level
American Home Shield vs. Competitors
If you’re still undecided as to whether American Home Shield is right for you, it can help to see how it compares to other home warranty providers. This way, you get to better understand your options.
| Provider | Monthly Premiums | Industry Experience | Coverage Inclusions | States Covered | BBB Rating |
|---|---|---|---|---|---|
| American Home Shield | $39.99 -$69.99 | 50 Years | Up to 23 home systems & appliances + add-on covers | 49 | B |
| Liberty Home Guard | $45–$55 | 3+ Years | Up to 15 major home systems & appliances + over 40 add-on home services | 46 | A- |
| Select Home Warranty | $41–$47 | 9+ Years | Up to 17 home systems & appliances | 48 | B- |
| Choice Home Warranty | $46 to $55 | 13+ Years | Up to 18 home systems & appliances + add-ons | 48 | C |
FAQs
Q. How long does a home warranty last?
American Home Shield’s standard contract term is one year with the option to renew upon expiration.
Q. When is my coverage effective?
Coverage begins 30 days after purchasing an AHS home warranty plan. For home sellers, coverage begins immediately upon purchase.
Q. How do I estimate home repair costs?
American Home Shield will provide free estimates for home system and appliance repair costs. You can also use the AHS Savings Calculator to get a better idea of the typical costs to repair or replace general household items.
Q. How do I make an American Home Shield service request?
Members can request service anytime by calling 1-888-691-2854 or online through their accounts.
Q. Where can I find a sample contract for American Home Shield’s Home Warranty?
You can review AHS Sample Contracts here.
Q. is American Home Shield a ripoff?
Not to our knowledge, and certainly not to the knowledge of thousands of satisfied users across the United States.
Q. What is American Home Shield’s BBB rating?
American Home Shield is rated B by the Better Business Bureau.