Is an American Home Shield Warranty Worth It? My Detailed Review
Hi there! As a homeowner and a bit of a home improvement enthusiast, I‘ve had my fair share of experience with things breaking down around the house. And let me tell you, those repair bills can add up quick! So when I first heard about home warranties from a friend, I was intrigued.
I did a ton of research on the different companies and plans out there, and I ended up choosing American Home Shield for my home. I‘ve had their warranty for about two years now, so I wanted to share my full review of the company and help you decide if it‘s worth it for you too.
What is a Home Warranty?
First, let‘s cover the basics. A home warranty is basically an insurance policy that helps cover the cost of repairing or replacing major home systems and appliances when they break down due to normal wear and tear. Things like your air conditioner, refrigerator, plumbing system, etc.
You pay a monthly or annual premium for the warranty, and then if something breaks, you call the warranty company and they send a contractor out to diagnose and fix the problem. You pay a service call fee (usually around $75-$125), and the warranty covers the rest of the repair cost.
The idea is that with a warranty, you‘re protected against sudden, expensive repair bills. Instead of having to shell out $5,000 unexpectedly to replace your AC unit, you just pay your service fee and your monthly premium.
Why I Chose American Home Shield
So that‘s the gist of how home warranties work. But why did I choose American Home Shield specifically? Well, a few reasons:
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They‘re one of the oldest and largest home warranty companies out there. They‘ve been in business for over 50 years and cover 1.8 million homes across the country. So they have a proven track record.
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They have some of the most comprehensive coverage options available. Their top-tier plan covers 21 home systems and appliances, which was more than most other companies I looked at.
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They‘ve won a bunch of awards for their service, including "Best in Service" from HomeWarrantyReviews.com four years in a row.
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I liked that they let you customize your coverage with add-ons like pools, spas, well pumps, etc. So you can get just the right protection for your specific home.
My Experience with American Home Shield
Alright, so those are some of the reasons I chose AHS on paper. But how has it actually worked out? Well, so far, I‘ve been pretty happy with my experience.
I‘ve had to call them for service a few times over the past couple years. Once for my oven that wasn‘t heating up, once for a clogged shower drain, and another time for my garage door opener that was acting finicky.
Each time, the process has been pretty smooth. I just went online to my AHS account and requested service. They assigned me a contractor from their network within a day or so, and the contractor came out and did the work. I paid my service fee, and that was it.
The oven repair was actually quite involved – they ended up having to replace the control board and a couple other components. It would have easily cost me $500 out of pocket without the warranty. But with AHS, it was just my $100 service fee.
So in that case, the warranty definitely paid for itself. The other repairs were smaller, but still would have cost me a couple hundred bucks each on my own. So I‘ve definitely saved money overall compared to what I‘ve paid for my annual premiums.
Digging into the Details: American Home Shield Plans, Cost, and Coverage
Of course, everyone‘s home and situation is a little different. So let‘s take a closer look at the specifics of what American Home Shield offers, so you can decide if it might be a good fit for you.
Available Plans
AHS offers three main coverage plans:
| Plan Name | Price | Details |
|---|---|---|
| ShieldSilver | $34.99 – $49.99/month | Covers 14 major home systems including AC, heating, electrical, plumbing |
| ShieldGold | $44.99 – $59.99/month | Covers everything in ShieldSilver plus 9 major appliances like refrigerator, oven, dishwasher, washer/dryer |
| ShieldPlatinum | $64.99 – $79.99/month | Covers everything in ShieldGold plus roofs, code upgrades, and more |
As you can see, the plans range from basic systems-only coverage to comprehensive protection for almost all the major mechanical parts of your home.
AHS also offers some optional add-ons that you can tack onto any plan for an extra cost:
- Electronics protection for things like your TV, computer, smart home devices
- Pools and in-ground spas
- Well pumps
- Septic systems
- Guest units (like a mother-in-law suite or casita)
So you can really customize your coverage to your specific property.
In terms of pricing, AHS is definitely on the higher end compared to some budget home warranty companies out there. But they also offer more comprehensive coverage than most.
Based on national averages from HomeAdvisor, the typical annual cost of an AHS warranty is about $660 – which comes out to around $55/month. So compared to the average repair costs for major appliances and systems, it can still be a good deal:
- Average refrigerator repair cost: $200-$400
- Average dishwasher repair cost: $100-$200
- Average washing machine repair cost: $120-$500
- Average heating/cooling system repair cost: $160-$2,500
Of course, you may not need repairs every single year. But over the lifespan of your home systems and appliances, you‘re almost guaranteed to have a breakdown or two. And that‘s where the warranty can really pay off.
What‘s Covered Under an AHS Warranty?
Let‘s talk a bit more about what‘s actually covered under an American Home Shield warranty. Obviously this will depend on the specific plan you choose, but in general, their warranties cover:
- Mechanical breakdowns due to normal wear and tear
- Items that are properly maintained (they don‘t cover pre-existing conditions or neglect)
- Older appliances and systems, regardless of age
- Undetectable pre-existing conditions
- Improper installations, repairs, or modifications (with the ShieldPlatinum plan)
So if your 10-year-old dishwasher suddenly stops draining properly, or your HVAC system‘s compressor fails, or your water heater starts leaking – you‘re covered.
However, there are some limits and exclusions to be aware of:
- There are maximum coverage limits for each appliance/system – between $500-$3,000 in most cases. If the repair cost exceeds that, you‘d be responsible for the difference.
- They don‘t cover cosmetic damage, routine maintenance (like AC tune-ups), or anything related to hazardous materials like asbestos, lead, gas leaks, etc.
- Certain specific parts may not be covered for each appliance – for example, refrigerator shelving, ice makers, etc.
- You can‘t use the warranty for upgrades – only for repairing/replacing with similar equipment
But in general, the level of coverage you get with an AHS warranty is quite expansive compared to many other companies. Their ShieldPlatinum plan in particular is one of the most robust in the industry.
American Home Shield vs. Other Top Warranty Companies
Speaking of other companies, let‘s see how American Home Shield stacks up to a few of their biggest competitors: Choice Home Warranty, Select Home Warranty, and First American Home Warranty.
| Company | # of Plans | Monthly Cost | Service Fee | # Reviews | Rating | BBB Grade |
|---|---|---|---|---|---|---|
| American Home Shield | 3 | $40 – $58 | $75 – $125 | 12,000+ | 4.3 / 5 | B |
| Choice Home Warranty | 2 | $36 – $44 | $60 – $85 | 33,000+ | 4.0 / 5 | B- |
| Select Home Warranty | 3 | $36 – $42 | $60 | 3,600+ | 4.2 / 5 | B |
| First American Home Warranty | 2 | $28 – $50 | $75 | 1,300+ | 4.1 / 5 | B |
As you can see, AHS plans are a bit pricier than the others on average, but they also have a much longer track record in the industry (over 50 years compared to 10-12 years for the others).
AHS and Choice seem to be the two heavyweights in terms of customer base – both have tens of thousands of reviews. Choice has slightly lower rates and service fees, but mixed customer reviews. AHS reviews are a notch more positive on average.
Select and First American are lesser known, but offer budget-friendly plans that might work well for someone who wants basic coverage. Though their ratings and review counts are lower.
Overall though, AHS seems to offer the most robust coverage options and solid customer service reputation. If comprehensive protection is your main priority, they‘re a great choice. If budget is a bigger factor, Choice or Select might be worth considering.
American Home Shield Customer Reviews
To give you a better sense of what actual AHS customers think, I‘ve gathered some representative reviews from Consumer Affairs, where the company has a 4.3 / 5 overall rating:
"AHS has been lifesavers for us. We have a protection plan that covers just about everything in our home. With appliances and household items not being built as well as they used to be, our plan has been used quite frequently. The contractors AHS sends out have all been very professional, knowledgeable and quick to respond. Thank goodness for AHS!" – Sandi of Phoenix, AZ
"I‘ve had AHS for years, and they‘ve always been very reliable. Whenever I‘ve had an issue, I just submit a claim online and usually have someone out to fix it within a day or two. I like that they find and schedule the contractors for me, so I don‘t have to worry about vetting people myself. The repair people have always been professional and courteous." – David of Houston, TX
"We had our hot water heater go out and our washing machine broke down in the same month and AHS took care of both within a matter of days. We had to have the water heater replaced and washing machine replaced. We paid our deductible, and AHS covered the rest. Great company that provides great service!" – Jennifer of Tampa, FL
Of course, no company is perfect. There are certainly some negative reviews and complaints out there too. The most common issues seem to be frustrations with claims denials, lower quality contractors, or delays in service.
For example:
"My AC stopped working in the middle of summer. I called AHS and they said it would be 2 weeks before someone could come to diagnose the issue. When the contractor finally came out, they said the part needed was on backorder and would take another 2 weeks to arrive. Altogether, it took over a month to get it fixed. I was very disappointed in the timeline given how much I pay for the warranty." – Joseph of Las Vegas, NV
But overall, the vast majority of customers seem generally happy with their AHS warranty. And many of the negative reviews appear to be outlier situations rather than the norm.
Is a Home Warranty Right for You?
At the end of the day, a home warranty is a bit like insurance. You‘re essentially paying a monthly premium for protection and peace of mind in case something goes wrong.
And like any insurance policy, there‘s always the chance you could go years without needing to use it. According to AHS, about 65% of their customers place at least one service request per year. So you may not use it every single year.
But when something does break (and trust me, it almost inevitably will), it can make a huge difference. Personally, my AHS warranty has saved me about $1,200 in repair costs over the two years I‘ve had it. That‘s well worth the $800 or so I‘ve paid in premiums over that time period.
But of course, everyone‘s situation is unique. If you have a brand new home with all new appliances, you might not need a warranty right away (plus you‘ll likely have manufacturer‘s warranties for a while).
And if you‘re a DIY-savvy homeowner who doesn‘t mind tackling repairs yourself, you could potentially save money by forgoing a warranty and just paying out of pocket for the occasional breakdown.
But for most homeowners, especially those in older homes or with expensive systems and appliances they can‘t afford to suddenly replace, a home warranty can offer invaluable protection and peace of mind.
So is American Home Shield worth it? In my experience, absolutely. It‘s saved me money, time, and stress. But to decide if it‘s right for you, consider:
- The age and condition of your major home appliances and systems
- Your tolerance for unexpected, big ticket home repair costs
- Your DIY repair abilities and preferences
- Your overall home maintenance and emergency fund budget
If you like the idea of having repair cost protection and a reliable service partner just a phone call away, American Home Shield is definitely worth considering. With their long track record, range of plans, and positive customer ratings, they‘re one of the best in the business.
Hopefully this review has given you some helpful info to mull over as you‘re deciding! Let me know in the comments if you have an AHS warranty and how it‘s worked out for you. And if you‘re ready to get a personalized quote, just head to their website to get started.
