American Home Shield Review: Home Warranty Not Worth It
Editor's Rating
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'll only pay a set service fee per repair.
American Home Shield's protection plans are a little too good to be true, as poor consumer ratings indicate that the company struggles to provide the service as advertised.
American Home Shield warranty: Our thoughts
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 systems and appliances, like your furnace or refrigerator. Every repair has only a set flat service fee. The only exception to this is a maximum payout per item— for example, $5,000 for your air conditioner.
If a plumber discovers a new problem halfway through a repair and it will take him twice as long as he originally thought, that extra money comes from AHS, not you.
However, American Home Shield often 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.
In some cases, American Home Shield will allow you to take cash instead of repairing or replacing your damaged item. Unfortunately, this usually doesn't work 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 general.
We recommend that you avoid buying a home warranty if you can afford to pay for potential repairs out of pocket due to inconsistent quality of service.
If you're 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 a few extra coverages in its policy. For example, AHS covers rekeying locks, while some other home warranties do not.
American Home Shield home warranty cost comparison
American Home Shield's prices are comparable to those at other home warranty companies. We found that AHS and its competitors charge about $50 per month for a plan that covers your home systems and appliances.
However, American Home Shield's prices vary based on location and home age more than competing companies. If you live in an area with high labor costs, or you have a larger or older home, you may pay more at AHS than at a competing company.
It's worth noting that there are a few coverages in AHS's plans that aren't always covered in competing plans, which could make it a better value for some people. For example, All American Home Shield plans include lock rekeying, while Liberty Home Guard only offers it as an add-on. And neither competitor offered a plan that compares with ShieldPlatinum.
Find Cheap Homeowners Insurance Quotes in Your Area
American Home Shield home insurance rates vs. competitors
Appliances only | Systems only (ShieldSilver) | Systems and appliances (ShieldGold) | Plus roof coverage (ShieldPlatinum) | |
|---|---|---|---|---|
| AHS average | Not available | $46.66 | $66.66 | $96.66 |
| Liberty Home Guard average | $49.99 | $54.99 | $59.99 | Not available |
| Select Home Warranty average | $60.42 | $60.42 | $63.75 | Not available |
AHS service fees
Every time you call American Home Shield to do a repair, you must pay a service fee — it's akin to a home insurance deductible or health insurance visit copay. You choose your service fee when you sign up.
American Home Shield offers service fees of $100 or $125 — if you opt for a lower service fee, you'll pay more per month. AHS's service fees are about in line with those of its competitors.
Company | Service fee |
|---|---|
| American Home Shield | $100–$125 |
| Liberty Home Guard | $125–$200 |
| Select Home Warranty | $75–$125 |
What American Home Shield plans cover
American Home Shield offers three levels of coverage: ShieldSilver, ShieldGold, and ShieldPlatinum.
The cheapest option, ShieldSilver, only covers your home's systems, like your furnace or hot water boiler. ShieldGold coverage extends protection to major appliances like your refrigerator, washing machine or stove. ShieldPlatinum boosts the per-repair limits of your appliance coverage, as well as a few other extras.
Unlike its competitors, American Home Shield doesn't offer a plan that only covers home appliances.
Systems: covered in all plans
- HVAC with ductwork
- Electrical
- Doorbells
- Smoke detectors
-
Ceiling fans
- Plumbing
-
Water heaters
-
Garbage disposals
-
Instant hot/cold water dispensers
-
Central vacuums
-
Rekeying door locks
Appliances: Covered in ShieldGold or ShieldPlatinum plans only
-
Refrigerators
- Ranges/ovens/cooktops
-
Washers and dryers
-
Dishwashers
-
Built-in microwave ovens
-
Trash compactors
-
Free-standing ice makers
-
Garage door openers
- Built-in food center/pantry
Extra coverages for ShieldPlatinum
- Roof leak repairs ($1,000 limit)
- Annual HVAC tune-up
- Unlimited AC refrigerant
- Code violations ($200 limit)
Optional AHS Coverage Add-Ons
- Swimming pool
- Hot tub
- Guest house
- 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.
American Home Shield plan comparison
Silver (systems only) | Gold (systems + appliances) | Platinum (Higher limit, includes roof and code violations) | |
|---|---|---|---|
| Average price per month | $47 | $67 | $97 |
| Heating and Air Conditioning Systems | |||
| Electrical Systems | |||
| Plumbing Systems | |||
| HVAC systems | |||
| Kitchen Appliances | — | ||
| Laundry Appliances | — | ||
| Roof leak repairs | — | — | |
| Code violations and permits | — | — | |
| Annual HVAC tune-up | — | — | |
| Unlimited A/C refrigerant | — | — |
All limits are per system or appliance, not overall.
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:
- Normal wear and tear
- Poor maintenance, rust or corrosion
- Improper installation or previous repair
- 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
- Cosmetic damage
- Manufacturer's defects subject to recalls or under warranty
- Routine maintenance
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 frequent difficulty in contacting AHS throughout the service request process, citing long telephone hold times and technical difficulties on the company's website.
While American Home Shield's customer service department is open 24 hours, many of the contractors they work with are not.
This effectively limits service to regular business hours: if your basement floods at midnight, you may have to pay the bill yourself.
Some customers report 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 make the service difficult to recommend.
AHS home repair insurance vs. homeowners insurance
American Home Shield's home warranty and a standard homeowners insurance policy both protect you from excessive costs when your home is damaged. However, they cover different parts of your home and insure your property for different types of damage.
For example, homeowners 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 homeowners insurance and whether you buy a home warranty are separate decisions that you should make independently of one another.
What Homeowners Insurance and Home Warranties Cover
Items covered | Homeowners Insurance | Home Warranty |
|---|---|---|
| Home Structure | ||
| Systems and appliances | ||
| Other Property |
Damage causes covered | Homeowners Insurance | Home Warranty |
|---|---|---|
| Wear and Tear | ||
| Neglect | ||
| Abuse |
Neither homeowners insurance nor home warranties are required by law in any state, though most mortgage lenders require you to buy home insurance to qualify for a home loan. We recommend homeowners insurance under most circumstances, as it can save you hundreds of thousands of dollars if the worst happens. A home warranty will pay out a few thousand dollars at most.
Methodology
ValuePenguin compared the prices, service and coverage levels of American Home Shield and two major competitors. All home warranty plan rates are averages across three cities: Minneapolis, Tampa and Austin.