American Home Shield: Reviews, Cost And Features For 2023

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Homeownership is great, but one of the downsides is that you’re now responsible for maintenance when things break. It’s in these instances when home warranties that provide coverage in case of the breakdown of appliances or home systems can be really valuable for homeowners. Today, we’ll look at a home warranty plan from American Home Shield.

American Home Shield Overview

American Home Shield (AHS) is a home warranty company in business since 1971 and headquartered in Memphis, Tennessee. The company is accredited by both the Better Business Bureau (BBB) and Consumer Affairs.

In addition to home warranties services, the company also offers its clients discounts on new appliances and air filters. You can save $50 for each additional home when buying coverage for multiple properties. We’ll get to more information on warranty plans below, but there’s no limit on repair of home systems, which is very unusual.

It has received a best overall ranking in 2021 in its category from Best Company and the Women’s Choice Award as America’s most recommended home warranty service every year since 2014. Moreover, it’s been a top-rated home warranty brand each year since 2015 according to HomeWarrantyReviews.com.

American Home Shield Warranty Plans

AHS offers three distinct coverage options – the ShieldSilver plan, ShieldGold plan and ShieldPlatinum plan. There’s some crossover, but of the three coverage plans, ShieldSilver is the choice for home systems. ShieldGold is the plan for you if you want home appliances covered. ShieldPlatinum has all the features of the other two plans and an increased coverage limit. There are also several items that can be included in your coverage as add-ons.

Following is a chart that covers items provided for under each option:

American Home Shield Pricing

Home warranties provide peace of mind, and assurance comes with a cost. When it comes to pricing, you can think of home warranty plans as being set up similarly to insurance coverage. Depending on the billing structure, you have monthly or annual premiums. There’s also a service fee that functions as the equivalent of a deductible. American Home Shield offers three different deductible levels: $75, $100 and $125.

In much the same way that lower insurance premiums mean a higher deductible and vice versa, this also holds true for home warranty coverage. The other thing that matters is your location, with higher service fees or premiums sometimes being applied based on where you live. The pricing can be pretty standard, but occasionally that comes up.

As an example, let’s look at the monthly premiums for a home in a suburb of Detroit.

American Home Shield Reviews

Let’s run through some reviews from real consumers as well as major warranty review sites.

Pros

Matthew from Franklin, Michigan, has had a couple of repairs done early in his warranty and has had an excellent experience.

“We've had to use AHS services twice already in the first 3 months of having the warranty. Their communication was great, the contractors communicated quickly, and they covered the repairs per the terms of the warranty.”

Gerald from Oshkosh, Wisconsin, likes the service request process.

“Their online claim submission is super-easy, and a contractor is always very prompt, and very good at solving my problem.

Meanwhile, Kanwal from Abilene, Texas, says it has kept money in their pocket.

“Every time which we have needed AHS, they have sent competent and very nice technicians. The insurance has saved us a lot of money and kept us from experiencing the hassle of finding someone trustworthy to complete the job.”

Among the providers looked at by the folks over at This Old House, American Home Shield was rated best overall. They liked the consumer-friendly coverage caps and the fact that maintenance records aren’t required.

U.S. News points out that they cover repairs even in the event of past improper installation or repairs. They also don’t require maintenance records.

Cons

On the downside, it might not be the fastest to get an approved contractor in the event of an emergency, says Valerie of Olathe, Kansas.

“User friendly! Timely, mostly. Although the contractor hasn't gotten our water heater yet and we are day 4 without.”

It’s worth noting that the contract provisions on the website do say that AHS will sometimes allow you to find your own contractor and reimburse you if you contact them first.

While this is often the case with any home warranty company, it’s necessary to carefully read the terms of the contract, as Denise found out.

“The advertisement said they would cover appliance replacement up to $1,000. The amount allowed for the dishwasher was $351 and change.”

This could be because the contract states that the amount they would give you in the event you take a cash option is what they would expect to pay for purchase or repair. According to the contract, that’s substantially less than retail cost. In other words, they would be giving you cash to replace an appliance based on a volume discount that you cannot get as a consumer.

This Old House points out that they don’t have nationwide coverage – sorry Alaska. Meanwhile, U.S. News doesn’t like the fact that repairs are only guaranteed for 30 days.

American Home Shield FAQs

Now that we've gone over the basics, let's cover some frequently asked questions regarding AHS.

What do AHS plans cover and not cover?

As mentioned above, it's really important to read the full contract terms for any home warranty. As an example, a refrigerator is a covered item, but standalone freezers aren't covered under any of the plans. Multimedia centers are also excluded if you have one of those fancy smart refrigerators.

Additionally, plumbing exclusions include stoppages caused by collapsed, damaged or broken drain, vent or sewer lines beyond the main foundation of the home. Doorbells are covered except when part of an intercom. AHS makes a sample contract available so you can see what is and isn’t included in coverage.

How do I buy a home warranty from American Home Shield?

To begin with, you’ll share some basic information regarding where you live and the age of your home as well as whether you rent or own your property. They’ll ask for some contact information to give you a customized quote.

Are homeowners insurance and home warranties the same thing?

Homeowners insurance and home warranties serve two different purposes. Let’s clarify that here.

Basic homeowners insurance covers the structure of your home so that it can be rebuilt or repaired in the event of damage. You can also get contents coverage which protects you in the event that things inside the house including appliances or electrical systems are damaged or stolen.

Homeowners insurance with contents coverage would cover you in the event that an external event caused damage to anything inside your house. For example, if there was an electrical surge during a storm that fried your circuit breaker, homeowners insurance would cover that.

A home warranty is most often used to cover normal wear and tear. If that same circuit breaker gave up the ghost after 20 years of use, you could file a claim with your home warranty provider, but not your homeowners insurance company.

Is there a difference between a manufacturer’s warranty and a home warranty?

There are a couple of differences between a manufacturer’s warranty and a home warranty.

• Manufacturer’s warranties only cover the specific product you bought from them – the Magnetron 2000. A home warranty instead covers all categories of products, so you could have the Magnetron 2000 or any other built-in microwave.
• Manufacturer warranties tend to have time limits. Many home warranty companies, including AHS, don’t care about the age of your appliances.

When does coverage start?

Home warranty companies typically have a short waiting period between the time the policy is purchased and when it goes into effect in order to prevent people from purchasing coverage immediately after something breaks with the expectation of having it repaired. American Home Shield’s waiting period is 30 days.

The Bottom Line: Is American Home Shield Worth It?

American Home Shield is among the top-rated home warranty companies nationwide. One thing that really sets them apart is unlimited coverage of home systems. Additionally, you can really customize monthly premiums based on the service fee you would like to pay. There's also lots of add-on coverage, so your plan can be tailored to your needs.

One good way to think about whether to get a home warranty is knowing the age of your house and whether you’re a saver. It’s generally recommended that you save anywhere between 1% – 3% of the purchase price of your home each year for maintenance. If your house is older, you might expect to save at the higher end of that.

There is also the issue that multiple things could break at once. By paying for a home warranty, you get some assurance that you won’t have to spend a ton of money on a new refrigerator and washer in the same year. Check out this article to see whether a home warranty is a good fit for you.