American Home Shield Insurance: Review 2023

American Home Shield Insurance
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Home repair insurance, or home warranties, are products that American Home Shield offers to customers. In exchange for a monthly fee, American Home Shield will cover the cost of repairing or replacing items like your refrigerator, stove, and HVAC system. Each service call will only cost you the established rate. Poor reviews from clients suggest that American Home Shield Insurance has trouble delivering the service as stated, making the company’s protection plans seem a bit too good to be true. In this article, we will discuss what American home shield insurance covers and its cost.

What is American Home Shield Insurance?

American Home Shield (AHS) is a prominent home warranty company in the United States. Home warranties are service contracts that cover the repair or replacement of major home systems and appliances. AHS offers various plans, each designed to protect specific items in a home, such as heating and cooling systems, plumbing, electrical components, kitchen appliances, and more.

Homeowners purchase American Home Shield insurance to safeguard themselves from unexpected repair costs. When a covered system or appliance breaks down, the homeowner can contact AHS, and they will arrange for a service technician to assess and repair or replace the item, typically for a service fee. This service fee is much lower than the total cost of repairing or replacing the item without a warranty, providing homeowners with financial relief and peace of mind.

AHS has a network of skilled contractors and technicians, ensuring timely and efficient repairs. While home insurance covers damage from external factors like natural disasters, American Home Shield focuses specifically on the wear and tear of common appliances and systems, which are typically not covered by homeowners’ insurance policies. Homeowners find value in AHS by mitigating unexpected repair expenses and ensuring the smooth functioning of essential home components.

What Does American Home Shield Insurance Cover?

American Home Shield (AHS) offers various home warranty plans that cover a wide range of systems and appliances commonly found in homes. The specific items covered can vary based on the chosen plan, but generally, AHS covers:

  • Heating System: Furnaces and built-in wall units
  • Air conditioning, including ductwork
  • Plumbing System: pipes, water heaters, toilets, and faucets.
  • Electrical System: wiring, main panels, and built-in exhaust, vent, and attic fans.
  • Kitchen Appliances: refrigerators, ovens, ranges, cooktops, dishwashers, built-in microwaves, and garbage disposals
  • Laundry appliances: washers and dryers
  • Garage door openers: mechanical components
  • Ceiling fans: fixed, single-speed fans.
  • Roof Leaks: Limited coverage (in some plans) for certain roof leaks

It’s important to note that coverage can vary based on the plan and any additional optional coverage the homeowner chooses. Additionally, coverage may be subject to certain limitations and exclusions, so homeowners should carefully review the terms and conditions of their specific AHS policy to understand what is covered and what is not.

American Home Shield Insurance Plans and Costs

Shield Silver, Shield Gold, and Shield Platinum are the three tiers of insurance offered by American Home Shield. American Home Shield’s plans are organized in a tiered manner rather than being categorized by appliance coverage or system coverage only like those of some other carriers in our rankings.

You can further tailor your American Home Shield insurance plan and cost by selecting a trade service call fee between $100 and $125; the higher the fee, the cheaper the monthly cost. Coverage for things like electronics and swimming pools can be added on for an additional fee.

#1. ShieldSilver

The ShieldSilver plan, which starts at about $29.99 per month, protects your home’s A/C, heating, electrical, and plumbing systems, fixtures, and appliances.

In this grade of insurance, all parts and labor for heating, ventilation, air conditioning, plumbing, and electrical systems are fully paid for, regardless of cost. Companies may put a limit on coverage of roughly $1,500, leaving homeowners to pay the rest.

#2. ShieldGold

Prices for ShieldGold start at about $49.99 per month and include protection for all of the same devices and limits as ShieldSilver, plus nine more kitchen and laundry appliances.

There is some wiggle room in the process because each piece of equipment is insured for up to $3,000. The restriction of $3,000 is about the same as the limits set by other companies in our ranking.

#3. ShieldPlatinum

The ShieldPlatinum starts at about $69.99 per month and provides the same coverage as the ShieldSilver and ShieldGold plans, as well as a few additional features, such as unlimited A/C refrigerant and roof leak repairs.

In addition, this plan doubles the previous maximum for appliance coverage to $6,000 per appliance.

Maintenance services such as a $100 rekey, a discounted heat or AC tuneup (one is included with ShieldPlatinum), discounted air filters, and discounted AC refrigerant are also available with each AHS plan. Also, there is no extra charge for covering a second air conditioner or similar appliance. Its 30-day warranty on its work is short compared to the warranties offered by some of the other providers on our list.

What Does American Home Shield Insurance Company Not Cover?

While American Home Shield (AHS) covers a wide range of home systems and appliances, there are several items and situations that are typically not covered by their standard home warranty plans. These exclusions can vary slightly based on the specific terms of the policy, but generally, AHS does not cover:

  • Pre-existing Conditions: Any issues that were present before the start of the warranty period
  • Improper Installation or Maintenance: Problems caused by incorrect installation, modifications, or lack of proper maintenance
  • Cosmetic Defects: Non-functional issues that do not affect the item’s core functionality or prevent it from operating as intended.
  • Natural disasters or other extraordinary occurrences like fires, floods, or earthquakes are considered acts of God.
  • Pest Damage: Damage caused by pests, including termites, rodents, or insects.
  • Outdoor Fixtures: Items located outside the main structure of the home, such as sprinkler systems, well pumps, and septic systems (unless covered by additional optional coverage).
  • Certain Parts: Some specific parts or components of covered systems or appliances might not be included in the warranty.
  • Commercial-Grade Appliances: Appliances designed for commercial use rather than residential use.

American Home Shield State Availability

Except for Alaska, all other states have access to American Home Shield. Be cautious to read the fine print of your policy before signing anything, as the specifics may differ from state to state.

Fine Print

Even though they’ve had some negative reviews on the internet, American Home Shield is a complete home insurance company. Claim denials for goods not included in American Home Shield’s policies account for the vast majority of the company’s unfavorable ratings. Read the contract thoroughly before filing a claim to avoid these kinds of problems.

The company routinely refutes claims involving the presence of mold, mildew, lead paint, asbestos, or the requirement to remove or repair pest-caused damage. American Home Shield, on the other hand, has information to help you keep pests out of your house on its website. Many homeowners who are shopping for house warranty protection choose this organization because of its exceptional customer service and quick responses to service requests.

Plan Pricing

With three plans to choose from, American Home Shield is guaranteed to have one that works within your financial constraints. The ShieldSilver plan’s starting price of $19.99 per month provides coverage for 14 different critical home systems. Appliance coverage is included with ShieldGold for an additional $39.99 per month. The premium ShieldPlatinum plan includes roof leak protection and covers more appliances for the same $69.99 monthly price.

In addition to the regular premium, you’ll have to pay a service fee every time a technician needs to visit your home. The cost will be $75, $100, or $125, depending on the tier of service you select when you buy your plan.

American Home Shield PlanCost per Month

Payout Limitations

Certain types of insurance coverage have maximum payment limits. As an illustration, the maximum amount that may be spent on repairs or replacements for a single appliance under the middle-tier ShieldGold plan is $3,000. For the top-tier Shield Platinum plan, you get a $6,000 cap per appliance. Additional restrictions on claim reimbursement are as follows for American Home Shield home insurance programs:

Item CoveredShieldsilver LimitShieldgold Limit Shieldplatinum Limit
Major systemsNo Limit (14 systems included)No Limit (23 systems included)No Limit (23 systems included)
AppliancesN/A$3,000 per appliance$6,000 per appliance
Roof leakN/AN/A$1,500 per year
AC refrigerant$10/lb covered$10/lb coveredUnlimited
Code violations, permits and modificationsN/AN/A$1,000 per year

What Are the Benefits of the American Home Shield?

American Home Shield (AHS) offers several benefits to homeowners who invest in their home warranty plans:

  • Financial Protection. AHS provides financial protection against unexpected repair or replacement costs for major home systems and appliances, helping homeowners manage their budgets effectively.
  • Convenience. AHS has a network of pre-screened and qualified service technicians, saving homeowners the hassle of finding a reliable repair professional. AHS handles service requests promptly, ensuring timely repairs or replacements.
  • Predictable Costs. Homeowners pay a fixed annual premium and a service fee for covered repairs, providing predictable costs for budgeting purposes. This can be especially beneficial in managing household expenses.
  • Peace of Mind. A home warranty from AHS provides peace of mind, knowing that essential home systems and appliances are protected. Homeowners can have confidence that unexpected breakdowns won’t lead to significant financial stress.
  • Expertise and Quality Service. AHS works with skilled technicians who have expertise in repairing various home systems and appliances. This ensures quality service and reliable repairs.
  • Preservation of Home Value. Well-maintained systems and appliances can contribute to preserving the overall value of a home. AHS encourages regular maintenance and timely repairs, which can be advantageous when selling the property.
  • Customizable Plans. AHS offers a variety of plans and optional coverage, allowing homeowners to choose a plan that fits their specific needs and budget. This customization ensures that homeowners pay for the coverage they require.
  • Emergency Service Available. AHS offers 24/7 customer service and support, allowing homeowners to request service at any time, especially in emergency situations, ensuring a quick response to critical issues.

In addition, these benefits collectively provide homeowners with the confidence and convenience to manage unexpected home repairs efficiently and cost-effectively.

What Type of Insurance Is American Home Shield?

American Home Shield (AHS) provides home warranty service contracts rather than traditional insurance policies. Unlike homeowners insurance, which covers damages to a home’s structure and personal belongings due to events like fire, theft, or natural disasters, AHS offers home warranties that cover the repair or replacement of major home systems and appliances due to normal wear and tear. 

Homeowners purchase AHS service contracts to protect themselves from unexpected repair costs for items like heating and cooling systems, plumbing, electrical components, and household appliances. When a covered item breaks down, homeowners can file a service request, and AHS arranges for a service technician to assess and repair or replace the item, usually for a service fee. These warranties provide homeowners with financial security and peace of mind against the high costs of repairing or replacing essential home systems and appliances.

How Long Do I Have to Have Home Shield Before I Can Use It?

The waiting period before you can use your American Home Shield (AHS) warranty insurance typically varies based on your specific plan and the terms outlined in your contract. In many cases, there is a standard waiting period of 30 days from the date of purchase before you can request service for covered items. However, it’s essential to review the terms and conditions of your individual policy, as waiting periods can vary between plans and may be subject to change. Always refer to your contract or contact AHS directly to confirm the waiting period associated with your specific plan.

Is It Hard to Cancel American Home Shield?

The process of canceling American Home Shield (AHS) can vary based on individual circumstances and the terms outlined in your contract. Generally, it’s not inherently difficult to cancel your AHS service, but there are important considerations.

Typically, you can cancel your AHS insurance by contacting their customer service department and following their specific cancellation procedures. However, it’s crucial to review your contract terms before attempting to cancel, as there might be specific conditions or penalties associated with early termination. Some contracts may have a minimum term or require payment of the remaining contract balance if you cancel before the term is completed.

To ensure a smooth cancellation process, it’s advisable to read your contract thoroughly, understand the terms, and contact AHS customer service for guidance. Being aware of any potential fees or penalties beforehand can help you make an informed decision about canceling your AHS insurance.

Does Homeshield Cover Mold?

No, American Home Shield (AHS) typically does not cover mold damage as a standard part of their home insurance plans. Most home warranty plans, including AHS’s, exclude mold cleanup and damage.

Mold issues often stem from various factors such as water leaks, poor ventilation, or high humidity, and they require specialized remediation processes. Homeowners concerned about mold damage should consider looking into separate mold insurance or discussing mold-related coverage options with their homeowners’ insurance provider. It’s important to carefully review the terms and conditions of any insurance policy or home warranty plan to understand what is covered and what is not, especially regarding issues related to mold.

Does American Home Shield Cover HVAC?

In most cases, yes, American Home Shield (AHS) home warranty plans do include coverage for HVAC (Heating, Ventilation, and Air Conditioning) systems. Protection for HVAC equipment like furnaces, air conditioners, exhaust fans, and ductwork is typically included in their standard policies.

However, the specifics of insurance and restrictions may change depending on the policy you select. The AHS contract’s fine print or a phone call will tell you how much your HVAC system is covered. AHS will send a technician to your home to evaluate your HVAC system and make any necessary repairs or replacements.

American Home Shield Reviews: What Are Customers Saying?

In our study of 1,000 homeowners who have a home warranty, American Home Shield was the most popular supplier, with 23% of respondents having insurance with this company.

Furthermore, 95% of respondents stated they were either “satisfied” or “very satisfied” with the claims procedure provided by their home warranty provider, and 76% percent indicated they were either “somewhat likely” or “very likely” to renew their plan.

So, how do actual American Home Shield customers feel about the company in question? To get a sense of what American Home Shield policyholders are saying about the company, we combed through hundreds of evaluations on review sites like the Better Business Bureau and Trustpilot.

Many satisfied clients commented that the service providers who attended to their demands were polite and up-to-date People who had faulty appliances were grateful that they were fixed or replaced swiftly.

Customer feedback was mixed from those who bought the product. Although some clients appreciated their policies’ security and safety, others complained about costly monthly premiums and slow speeds.

Unhappy AHS policyholders often cited slow responses from customer care agents or poor work by AHS-recommended vendors as the root causes of their frustration. Some clients complained that the deductibles and co-pays were too costly in relation to the monthly premiums.

Is Home Shield Worth It?: Bottom Line

With more than 50 years of expertise, American Home Shield is a leading company in the home insurance market. Getting an American Home Shield home warranty might give you peace of mind in the case of a home breakdown.

Most maintenance and renovations are paid for under American Home Shield home insurance. Like any home protection plan, however, there is always the potential that you’ll have to pay for any unexpected repairs or replacement costs out of pocket.

You can get a free estimate from AHS online and compare your alternatives for insurance before making a final decision.

American Home Shield Insurance FAQs

Does American Home Shield cover water damage?

American Home Shield does not cover repairs or replacements when the malfunction is due to water damage. Depending on the type of damage, this may be covered by your homeowners’ insurance.

Does American Home Shield cover high end appliances?

Unlike other companies, American Home Shield (AHS) will pay for any and all repairs made to your expensive appliances.

Does American Home Shield cover damage from trees?

American Home Shield’s policy specifically excludes coverage for damages caused by natural disasters. This means that your house warranty will not pay to repair your air conditioner if a tree falls on it. Instead, it could be covered by your home insurance.

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