Owning a home comes with many joys, as well as many responsibilities to keep it safe and functional for you and your family. Whether you’ve just bought a new home or have lived in your home for many years, it’s important to keep your home and its essential components protected.
Although many homeowners have a homeowners insurance policy to protect against unfortunate events, many more are unaware that they can also further protect their home with a home warranty plan that protects their major appliances and home systems when they break due to normal wear and tear.
In This Article:
- American Home Shield Overview
- American Home Shield Coverage and Plans
- American Home Shield Cost
- Our Verdict on American Home Shield
- Frequently Asked Questions
Today’s Homeowner works with an independent reviews team to create evidence-based research that helps our readers make informed decisions. The reviews are always independent. For transparency, we may be compensated if you purchase through a link.
Overall, we rated American Home Shield as the best overall option for home warranties.
Our Research Goals
Our research team understands the importance of providing consumers with in-depth, unbiased information that they can use to make an informed choice when searching for a top home warranty provider that best fits their needs. We dig deep into several facets of each company’s business practices to bring you in-depth, comprehensive reviews to help take some of the busywork off your shoulders.
However, we always strongly encourage readers to do their own research for their own home situation by requesting quotes from multiple companies, as well as reading customer reviews and sample contracts.
Upon reading our review, you’ll know what types of home warranty plans American Home Shield offers, what they cover and don’t cover, and the costs involved with each plan. We’ll also give you a deeper look into the aspects of American Home Shield that affect the customer experience the most.
American Home Shield Overview
American Home Shield claims to protect purchasers of their home warranty plans against costly and unexpected home repairs, and the company does provide solid coverage of appliances and home systems at rates that are reasonable for the industry. However, when it comes to actually getting your appliances or systems repaired, you may be in for some surprises when it comes to making a claim with American Home Shield.
Any company in any industry will have unhappy customers, and American Home Shield is no different in this respect than other home warranty providers. Often this “unhappiness” is due to customers not being aware of certain specifications in their home warranty contract and expecting more than they actually signed up for. Below are some examples:
“AHS has the sole right to determine, according to the terms of this contract, whether a covered item will be repaired or replaced.”
“AHS is responsible for installing replacement equipment and parts of similar features, capacity and efficiency, but not for matching dimensions, brand or color.”
Although these types of limitations are common in home warranty contracts, you can see how it’s important to read sample contracts to know just what you’ll be getting when expensive repairs are needed.
These specifications don’t mean that an American Home Shield home warranty is useless, but a budget-minded homeowner needs to be aware of all the potential upsides and downsides.
Note: Per the American Home Shield sample contract, the company has the option of giving you cash in lieu of repair or replacement, but this may not cover the full cost. In this case, you may end up spending more than the service fee and getting less than you thought you were paying for.
American Home Shield Coverage and Plans
Choosing American Home Shield for your home warranty means you’ll select one of three plan options, or a build-your-own plan:
|Systems Plan||Appliances Plan||Combo Plan|
|Built-in microwave ovens||✔||✔|
|Garage door openers||✔||✔|
|Free-standing ice makers||✔||✔|
|Built-in food centers||✔||✔|
|Instant hot/cold water dispensers||✔||✔|
The Build Your Own Plan includes up to 21 appliances and systems. These optional add-ons are also available to you, to add to the BYO plan or one of the 3 plans described above:
- Pool and/or in-ground spa equipment
- Well pump
- Septic system plumbing and septic sewage ejector pump
- Extended warranties for electronics
Although American Home Shield provides comparable standard coverage of other top providers, their add-on options are limited compared to others. For instance, many homeowners elect to have a second refrigerator covered or to pay a little extra for roof leak coverage. However, American Home Shield doesn’t offer these options commonly desired by homeowners.
American Home Shield Cost
With most home warranty plans, the two costs to consider are the monthly premium, which you pay each month or on an annual basis, and the service fee, which you pay at the time of repair. Our team got a sample quote directly from American Home Shield for an address in Georgia, zip code 30097, and we received the following details in the tables below.
American Home Shield allows you to alter your monthly premium based on the service fee, which ranges from $75 to $125. In other words, the higher your service fee, the lower your monthly cost.
|Monthly Cost||Service Fee|
|Build Your Own (choose 10 items to cover)||$39.99||$125|
The price quote we received for the optional add-ons are as follows:
|Package||Price Per Month|
|Pool and in-ground spas||$13.33-$20.00|
|Septic pump (first year only)||$2.50|
|Guest unit (<750 square feet)||$13.99|
Our Verdict on American Home Shield
American Home Shield has some great options for homeowners, like their simple Build Your Own Plan option for individual appliances and systems. This company have many years in the industry — almost 50 — plus a solid reputation. The prices are reasonable for comprehensive plans, and we especially like their Appliance Plan. Consequently, we rate this provider as the best overall in the industry.
Below are a few highlights:
- No home inspection necessary
- Choose your own service fee
- 24/7 service requests and customer service
- Coverage available in 49 states
It’s up to you to decide which home warranty provider can offer you what you need in terms of home protection, but our reviews will help make your decision easier.
Frequently Asked Questions
What Is A Home Warranty?
A home warranty is a one-year service contract that covers the repair or replacement of your home’s major appliances and systems. Unlike a manufacturer’s warranty for a specific appliance that expires a year after purchase, a home warranty can be renewed every year for as long as you own your home.
What Are The Benefits of A Home Warranty?
Having a home warranty plan provides two primary benefits:
- Budget Protection: You’re covered when your home’s components need costly repairs, so your emergency fund is safe.
- Convenience: Not only will the cost of repairs be covered by a home warranty, but you’ll also be relieved of the hassle of finding a reputable repair service provider in your area. A home warranty selects a technician for your repairs, so you don’t have to find someone yourself.
These two main advantages of having a home warranty plan lead to peace of mind. Knowing that you and your family are safe from financial risk and your home warranty company will take care of arranging for repairs will help you sleep better at night.
Photo Credit: Adobe Stock, ©Dima_Sidelnikov