American Home Shield Review: Is it Worth it?

A thermostat hovering at 90º Fahrenheit or a dryer full of soggy clothes that won't start can be a homeowner’s worst nightmare. An unexpected appliance repair bill can really take a bite out of your budget—and the worst part is not knowing how big of a bite it will be.

Signing up with a home warranty company like American Home Shield (AHS) for reassurance that system and appliance repairs will be covered with a flat monthly rate can be a good solution to unexpected breakdowns. We researched the company to find out just what it offers.

While plan costs aren't advertised on the American Home Shield website, we snagged some quotes to give you an idea of what you might pay. You can expect to pay around $30 to $90 per month, depending on the options you pick.

When getting a quote online, first, you choose which service fee you want ($100 or $125), which determines the highness of your monthly fee. The higher the service fee, the lower your monthly fee. Then you pick the plan you want.

Here's a detailed look at what you get with each plan:

ShieldSilver plan

• Air conditioners
• Heating systems
• Ductwork
• Built-in exhaust fans
• Main breaker and fuse panel box
• Doorbells
• Interior electrical lines and components
• Ceiling fans
• Garage door openers
• Water heaters
• Interior plumbing lines
• Toilets
• Faucets and valves
• Built-in jetted tub motors, pumps, and air switch assemblies

SheildGold

• Refrigerators
• Ranges/cooktops
• Ovens
• Dishwashers
• Built-in microwaves
• Garbage disposals
• Installed instant hot/cold water dispensers
• Dryers
• Washers
• Air conditioners
• Heating systems
• Ductwork, built-in exhaust fans
• Main breaker and fuse panel box
• Doorbells
• Interior electrical lines and components
• Ceiling fans
• Garage door openers
• Water heaters
• Interior plumbing lines
• Toilets
• Faucets and valves
• Built-in jetted tub motors, pumps, and air switch assemblies

SheildPlatinum

• Refrigerators
• Ranges/cooktops
• Ovens
• Dishwashers
• Built-in microwaves
• Garbage disposals
• Installed instant hot/cold water dispensers
• Dryers
• Washers
• Air conditioners
• Heating systems
• Ductwork, built-in exhaust fans
• Main breaker and fuse panel box
• Doorbells
• Interior electrical lines & components
• Ceiling fans
• Garage door openers
• Water heaters
• Interior plumbing lines
• Toilets
• Faucets and valves
• Built-in jetted tub motors, pumps, and air switch assemblies
• Roof leak repair

From there, you can add extras to your policy. Here's a list of add-ons and how much they'll cost you per month.

• Pool & built-in spa equipment: $20.99
• Guest houses and rental units up to 750 sq ft: $20.99
• Septic pump: $4.99
• Well pump: $9.99
• Home electronics protection plan: $14
• Roof coverage: $9.99 (this is offered if you don't get the ShieldPlatinum plan)

You also get some additional perks for free when you sign up for an AHS plan:

• Rekey service (price of service fee)
• HVAC tune-ups: $100/unit with the lower tier plans or one free tune-up included with Platinum
  
• Air filter discounts: 10% off and free shipping

Not only does American Home Shield have the lowest monthly cost of the competitors on this list, but it also offers something unique. In addition to appliance and systems coverage, you can also get electronics coverage.

American Home Shield has a variety of home warranty options to choose from based on homeowners’ needs. The flexible pricing helps you feel in control of your service plan, but coverage restrictions can be frustrating if you haven’t read the fine print.

Things like pre-approved service contractors, service fees, and annual dollar caps are important to understand before signing on the dotted line.

One of the main issues American Home Shield customers have with their warranties is finding out that a repair is not covered under their service plan.

Here are a few other contract items to watch out for:

• The contract only covers home that are under 10,000 square feet.
• Many of the covered items have coverage caps. That means the company will only pay for repairs or replacements that don't cost more than the cap stated in the contract. For example, roof repairs are capped at $1,000, and the appliance caps are $2,000 with ShieldGold and $4,000 with ShieldPlatinum.
• Your contract doesn't cover commercial-use appliances or systems.
• If the repair technician can't get to your item, it won't be repaired or replaced.
• You’re not getting a warranty on an entire system or appliance—you’re just getting a warranty on certain components of that system or appliance.

In short, it would be wise to read through a sample AHS contract carefully to understand fully what you’re buying with a warranty.

You can cancel American Home Shield, but you may not get all of your money back. It depends on when you cancel. 

If you cancel your plan within the first 30 days, you'll get a refund of your fees, minus any costs for services or claims. If you cancel after 30 days, you'll get a prorated refund for the remainder of the term, minus a fee (up to one month's payment, where allowed) and any service or claim costs.

AHS’s warranty service plans cover most things found in your home systems, and you don’t have to worry about getting a home inspection or providing maintenance records. Also, unlike most warranty companies, AHS covers preexisting conditions.

When you’re trying to decide which AHS service plan makes sense for your home (and your budget) there are a few important factors to consider.

Every AHS plan gives you the option to choose your service fee, but you don’t get that choice for nothin’—a lower service fee will cost you more in your monthly premium. Think of the service fee like an insurance deductible: the lower your service fee, the higher your monthly payment, and vice versa.

When you sign your AHS contract, you’ll have 30 days until your warranty goes into effect. Your first payment will be processed at the end of that waiting period. One month isn’t too long to wait, especially if you’re moving into a new house where you’re likely to discover little problems over time.

First, what’s the difference between homeowners insurance and a home warranty?

Simply put, homeowners insurance handles all the accidental damages that can happen to the structure of your home—like wind damage, fire, or flooding.

A warranty company, on the other hand, offers home warranties to cover unexpected breakdowns of your home’s systems and appliances due to normal wear and tear. Warranties may cover things like your plumbing, air conditioner, or built-in microwave oven.

Unlike homeowners insurance—which is usually mandatory—home warranties are more like a service contract for appliances or systems that will end up aging or breaking down eventually.

For example, if your toddler uses your dishwasher door as a trampoline and breaks it, a typical home warranty will not cover it. But if your dishwasher door won’t close correctly because the seal has come loose over time, your repair may be covered under a home warranty.

Let’s say your air conditioning goes out. Once your plan goes into effect, you can call or go online anytime to request service for it. Within 24 hours of your call, AHS will contact an approved local contractor who will then call you to schedule an appointment.

Once the contractor checks out the problem, they will contact AHS with the results of their inspection, and AHS will determine whether or not your warranty covers repair or replacement. If it is covered, the contractor will fix the problem at no additional cost to you.

If you’re worried about the budget crunch of a sudden appliance or system breakdown, an American Home Shield home warranty is a good choice. Just be sure to get familiar with the home warranty policies and fine print so you don’t end up with an unexpected repair bill that isn’t covered and a monthly premium that you can’t get back.

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