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Jesus Sanchez Garcia is a senior writer for USA TODAY Homefront. His expertise focuses on home warranties, with over 50 hours spent reviewing provider sample contracts to understand their benefits. He also regularly performs consumer research, such as surveys and customer interviews with an eye on incorporating data into his writing. Jesus has a bachelor’s in business administration from California State University, Stanislaus, and is still located within California’s vibrant Central Valley. When he is not researching or writing, he enjoys supporting his favorite sports teams, spending time with loved ones and chasing new adventures outdoors.
American Home Shield (AHS) is one of the best home warranty companies for your home’s essential appliances and systems — specifically for major systems. It has generous coverage caps per item, which can greatly reduce expensive repair or replacement costs.
We rate it as the best provider for per-item payouts. However, it’s pricier than most companies, which may deter more budget-conscious shoppers. In this review, we analyze American Home Shield’s pricing structure, coverage plans, add-on options, customer service and sample contracts.
Jesus Sanchez Garcia is a USA TODAY Homefront senior writer specializing in home warranty reviews. He has spent more than two years researching the field, including analyzing customer reviews and collecting insights from industry experts.
We rated American Home Shield 4.4 out of 5 stars based on our review standards. We researched and rated its coverage plans, payout limits, add-on variety, pricing, customer service, workmanship guarantee and cancellation policy.
AHS scored highly in some areas, including its coverage limits and plans. However, it lost points for its higher-than-average prices.
American Home Shield provides coverage that many home warranty providers typically exclude. For instance, AHS covers mismatched HVAC systems plus rust, corrosion or sediment damage for all covered items.
American Home Shield allows you to choose a $100 or $125 service call fee. This flexible service fee structure lets you customize your plan premium.
AHS also has generous coverage limits. I read its sample contract and discovered it provides an unlimited coverage limit for all major systems except air conditioning, heating and ductwork. AHS still provides an above-average $5,000 coverage limit for HVAC systems per claim. It also has a high $25,000 aggregate coverage limit per policy term.
Another feature we like is American Home Shield’s online claims portal. We interviewed one of our team members who owns an AHS plan and has filed a claim using the portal. He said it was intuitive and took less than 3 minutes to complete.
AHS covers a long list of items in each of its standard plans. However, due to this comprehensive coverage, AHS offers just six optional add-ons — significantly fewer than other home warranty companies.
AHS also charges hefty premiums for its comprehensive coverage plans. Our national average calculation for AHS’ monthly premiums indicates you could pay as much as $96 per month for a coverage plan. Depending on the size of your home and where you live, you might pay even more.
Lastly, AHS doesn’t offer an appliance-only coverage plan. You must purchase the pricier ShieldGold or ShieldPlatinum plans if you need home appliance coverage.
American Home Shield offers comprehensive coverage in its standard plans and a customizable service call fee. Other top-ranking home warranty companies, such as Liberty Home Guard and Cinch Home Services, provide better add-on varieties and coverage perks.
The table below shows how AHS stacks up against other popular home warranty companies in our rating system:
Before buying a home warranty, consider a company’s plan costs and coverage limits. The chart below compares the monthly premium ranges and coverage caps offered by providers we’ve reviewed.
We performed in-depth research to understand the factors most relevant to homeowners in the market for a home warranty. Our findings show that prospective home warranty buyers highly consider coverage options when choosing a provider. That’s why “coverage plans and extra features” is the most heavily weighted rating category in our home warranty review standards.
AHS scored 4.5 out of 5 stars in this category, largely due to its coverage for situations many providers typically exclude, such as rust, corrosion and sediment damage. AHS will also pay to repair or replace a home system or appliance with an undetectable preexisting condition — an existing issue you couldn’t identify visually or through routine maintenance before signing up for a plan.
The graphic below shows how AHS stacks up against the “coverage options and extra features” rating average of 15 home warranty companies we’ve reviewed.
American Home Shield offers three home warranty coverage plans:
ShieldSilver
ShieldGold
Shield Platinum
The ShieldSilver plan covers 16 major home systems, including air conditioning, ductwork, plumbing systems and water heaters.
The ShieldGold plan covers the same 16 home systems as ShieldSilver plus 10 essential home appliances, such as built-in microwaves, clothes washers and refrigerators.
The ShieldPlatinum plan includes all the items in the ShieldSilver and ShieldGold plans plus discounted HVAC tune-ups, code violation reimbursement and roof-leak repair coverage.
The tables below show American Home Shield’s coverage options for each plan:
American Home Shield provides six additional coverage options — five if you purchase the ShieldPlatinum plan. While add-ons are not its strength, American Home Shield offers unique options, such as electronics protection and guest unit coverage.
Below is the full list of add-ons American Home Shield offers:
American Home Shield's sample contract lists notable coverage exclusions, clearly outlining excluded items and damages in bolded and underlined sections. For instance, AHS doesn’t cover construction costs, items used for commercial purposes, items shared in a multifamily home, cosmetic damage, item misuse or tampering. Many other home warranty companies we’ve reviewed have similar exclusions. Below is a screenshot of the section detailing general limitations and exclusions in American Home Shield’s sample contract.
For additional information, review American Home Shield’s sample contract directory. The directory includes a dropdown menu that allows you to access your state's specific sample contract.
We also considered the coverage caps, or limits, of each home warranty provider we rated. A company’s coverage limits determine how much it’ll pay per repair or replacement for a covered item. American Home Shield earned top marks in this category.
Our research found that most companies pay between $500 and $2,000 per repair or replacement. Upon reviewing American Home Shield’s sample contract, we found that it exceeds this range for both major appliances and systems. With higher coverage limits, AHS is more likely to pay the entire repair or replacement for a broken item than a company with lower limits.
American Home Shield’s sample contract lists additional factors that influence your coverage plan. Here is an overview of each:
The graphic below highlights American Home Shield’s coverage limits rating.
Price is a major factor when shopping for a home warranty — the point of owning a home warranty plan is to reduce the financial burden of an unexpected appliance or system breakdown. Selecting the plan that meets your coverage needs and budget takes some digging.
In this rating category, AHS scored slightly higher than the category average of 4.2 out of 5 stars. It is not the most affordable provider we’ve reviewed due to its comprehensive coverage limits and standard options. Liberty Home Guard is a great choice if you’re looking for more affordable coverage and don’t mind having lower coverage limits.
However, if you own an older HVAC system or other aging systems and appliances, AHS is worth considering, even if you pay a premium for it.
The graphic below shows American Home Shield’s price rating.
While American Home Shield provides an affordable basic and mid-tier plan, its comprehensive policy is much more expensive. When I used American Home Shield’s online quote tool to pull pricing information, I found that its ShieldPlatinum plan costs nearly twice as much as the ShieldGold plan. Since ShieldPlatinum only adds coverage for a few extra items and increases appliance limits, you may not find value in paying extra for those features, especially if you don’t need appliance coverage.
I also found that American Home Shield only offers monthly premiums; there is no option to purchase an annual policy online. You can pair a $100 or $125 service call fee with each plan.
I requested a fresh quote for a 2,230-square-foot, single-family home in California to retrieve the monthly pricing information below, which shows how your chosen service call fee will affect your monthly premium for each plan. Your pricing will vary based on your home’s size, location and coverage needs.
Create a simple checklist of which home appliances and major systems you need your home warranty plan to protect. If it’s only a few items, you can save money by opting for the entry-level ShieldSilver plan over a more comprehensive but pricier plan.
Through our review of hundreds of customer reviews on third-party review sites such as the Better Business Bureau (BBB), Google Reviews and Trustpilot, we found that most customers want a trustworthy provider that will do what they promise.
In this category, AHS scored a 3.7 out of 5, which is the same rating average of all 15 home warranty companies we’ve reviewed. American Home Shield’s average customer rating based on its BBB, Google Reviews and Trustpilot scores is 2.9 out of 5 stars, which is less than stellar.
Upon further digging, however, we found many complaints stem from coverage exclusions listed in American Home Shield’s service contract. This is why we stress reading the sample contract before signing up.
The graphic below displays American Home Shield’s reputation rating compared to other providers we reviewed.
According to our 2023 home warranty survey of 1,000 homeowners, nearly 15% of respondents considered a company’s reputation the most important feature when shopping for a home warranty.
American Home Shield has a solid B rating from the Better Business Bureau (BBB). That said, AHS has mixed customer reviews across multiple third-party customer review sites, such as BBB and Trustpilot. Some reviews, such as this one from David, highlight prompt service from American Home Shield’s service providers. He reported that AHS sends a service provider as soon as the next day after filing a claim.
However, there were multiple negative reviews from customers who disliked AHS’ delayed communication, such as this Trustpilot review from Helen.
Besides reading customer reviews, ask your friends, family and neighbors about their experiences with home warranties. Your local real estate agent can also recommend reputable providers.
Customer service is the final rating category in our review standards. We considered AHS’ service request response time, workmanship guarantee and cancellation policy. AHS scored slightly higher than average compared to other providers in this category.
A home warranty company’s customer service largely depends on how it deals with claims. According to our survey, 94% of the 271 respondents who owned an AHS plan reported that the company approved their claim. This gives us confidence in recommending AHS as a reputable provider.
The graphic below displays American Home Shields's customer service rating.
To maximize your American Home Shield plan, we suggest understanding how home warranties work before purchasing one. Below is an overview of the best way to use your AHS plan.
We recommend reading American Home Shield’s sample contract as part of your research. While secret shopping, I found that AHS provides a sample contract directory based on your state. Ensure you select the correct sample contract, as it may contain state-specific clauses.
AHS has a 24/7 claims hotline and an online portal for filing service requests. Before filing a claim, I recommend reading American Home Shield’s contract again. Knowing what it covers and excludes can reduce the likelihood of a claim denial.
Once AHS approves your claim, a representative will schedule an appointment with an in-network service provider within 24 business hours. According to AHS’ sample contract, you’ll likely have a delayed response from AHS if you file a claim outside normal business hours.
AHS has a 30-day initial coverage waiting period. Section 14 of American Home Shield’s sample contract details the plan agreement length and the plan's effective date. Paragraph A of Section 14 states: “Please note that coverage under your plan does not begin until the expiration of the initial coverage waiting period stated in your plan summary.”
In addition, AHS provides information on policy cancellations in Section 15 of its sample contract. It offers a 30-day free cancellation period during which you’ll receive a full refund if you cancel your plan. If you cancel after the free cancellation period, AHS refunds a prorated portion of your total payment minus an administrative fee.
If you have a contractual dispute with American Home Shield, you can take several steps to increase your chances of a resolution:
While AHS stands out for its major systems coverage and generous coverage caps, you should compare home warranty companies to ensure you select the one that's best for your specific needs.
All things considered, Liberty Home Guard (LHG) is our top pick for a home warranty provider. LHG edges out AHS as one of the best home appliance insurance companies for its coverage of washers and dryers, something AHS only does in its midtier and comprehensive plans. AHS edges out LHG as our top pick for the best sewer line home warranty since it pays more per septic system claim.
2-10 is the cheapest home warranty company, with a $45 average monthly premium, compared to AHS’ average monthly premium of $72. However, AHS offers coverage for AC and heaters in its lowest-priced plan, making it one of the best home warranty companies for HVAC.
American Home Shield is one of the few providers we reviewed that places unlimited coverage caps on major heating and electrical systems. In addition, it covers several damages and conditions other providers typically exclude, making it a great choice for those who own older appliances and systems. However, its expensive ShieldPlatinum plan is hard to justify compared to its ShieldGold plan.
Below, we outline who we recommend AHS for and who we don’t.
We research and rate home warranty providers to help you choose the right one for your budget and home. Our research includes gathering customer insights via consumer surveys, interviewing industry experts, secret shopping all of the companies we review and analyzing customer reviews from third-party review sites such as Trustpilot and BBB.
We compare home warranty providers across the following five categories:
Read our full home warranty company methodology for more information.
BBB ratings are accurate as of June 2024.
Editorial note: The name “Homefront” refers to the alliance between USA TODAY and Home Solutions that publishes review, comparison, and informational articles designed to help USA TODAY readers make smarter purchasing and investment decisions about their home. Under the alliance, Homefront provides and publishes research and articles about home service and home improvement topics.
Homefront has an affiliate disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Homefront editorial staff alone (see About Homefront). Homefront adheres to strict editorial integrity standards. The information is believed to be accurate as of the publish date, but always check the provider’s website for the most current information.
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