American Home Shield At a Glance
Unlike homeowners insurance, home warranties do not cover damage from so-called acts of God, like house fires and natural disasters. Instead, home warranties offer coverage for essential home items and systems to lower a homeowner’s financial burden when the item eventually fails and requires costly repairs or a full replacement.
American Home Shield is a reputable home warranty company that has been accredited by the Better Business Bureau (BBB) since 1997 and currently holds a B rating.
With 1,600 employees, it’s one of the largest home warranty companies in the industry. And it partners with over 17,000 local, licensed contractors to assist customers with claims in 49 states (they don’t offer service in Alaska).
Available Plans
American Home Shield offers three comprehensive plans: ShieldSilver, ShieldGold and ShieldPlatinum. Whichever one you purchase, you’ll get coverage for some of your home’s most essential items.
The ShieldSilver plan covers 14 major systems, including toilets and ductwork. The ShieldGold and ShieldPlatinum plans build beyond that to form two very comprehensive home warranty plans. They cover almost all of the same items, with only one exception, but the ShieldGold plan has a lower appliance coverage limit than ShieldPlatinum has.
Other Benefits
American Home Shield also offers a handful of add-ons that you can tack onto any of their base home warranty plans. This list of add-ons is not as comprehensive as those of other home warranty companies, but the company’s extensive base plans partially make up for that.
The optional add-ons are:
- Electronics extended warranty
- Well pump
- Guest unit
- Septic pump
- Pool and spa
While roof leaks are covered with the ShieldPlatinum plan, they aren’t included in ShieldSilver or ShieldGold plans. But roof leak repair is an optional add-on for both of these plans.
The company also offers air filter discounts starting at $5.25 each as well as discounted heat or AC tune-ups for $75. ShieldPlatinum customers get one heat or AC tune-up included.
Fine Print
The company has received numerous negative online reviews, mostly for denied claims. But looking deeper into these reviews, we gathered that most of them are in response to claim denials for items that aren’t covered by American Home Shield’s plans. You can avoid these issues by carefully reading the contract each time you go to make a claim.
Some common claims that American Home Shield denies involve mold, mildew, lead paint and asbestos. The company will not provide repair or replacement services when such hazardous materials or substances are present.
It also does not cover pest removal or pest damage, though it does provide pest prevention resources on its website.
Plan Pricing
Prices of American Home Shield plans are in line with industry averages. Costs will differ based on which plan you choose and how many add-ons you opt for.
American Home Shield’s ShieldSilver plan covers 14 essential systems, including heating and cooling systems and will cost you $49.99 per month.
The ShieldGold and ShieldPlatinum plans are more expensive, $59.99 per month and $74.99 per month respectively, but they cover more items that keep your home running smoothly. The size of your home won’t significantly change these numbers.
Customers will also pay a $75 to $125 service fee each time they call a contractor to visit their home and repair, replace or inspect their damaged item. The company allows customers to choose the amount of their service fee. Those who choose higher service fees can lower their monthly plan cost and vice versa.
Payout Limitations
Home warranty providers always have payout limits per coverage item. American Home Shield follows suit, but it does not limit the number of repairs done during your contract term. Each of American Home Shield’s plans do have different dollar amount caps.
How American Home Shield Stacks Up
Is American Home Shield The Right Home Warranty Company for You?
American Home Shield has some of the most comprehensive home warranty plans in the industry. It’s a great option for homeowners interested in getting a wide variety of coverage at an affordable price. American Home Shield has been in service since 1971 and it’s one of the most reputable providers, so many homeowners find comfort in purchasing their plan from it.
However, some customers have complained of long delays when it comes to repairs, long customer service phone call wait times and claim denials. Long hold times are common in the industry, and claim denials may be due to exceptions and limitations American Home Shield details in its contracts. Be sure to read reviews and understand what you’re getting into before deciding on American Home Shield.
Methodology
Why We Picked It:
- Decades of experience
- Plan pricing ranges from $50 to $75 per month
- Add on coverage options available
Brief methods explanation:
To determine this ranking, the Forbes Advisor editorial team analyzed data on dozens of companies, with each product’s rating determined by evaluating a variety of metrics, including:
- Pricing and discounts (30%)
- Customer reviews (20%)
- Response time (15%)
- Option to pick own technician (5%)
- Nationwide availability (15%)
- What’s included in coverage (15%)
Featured Partners
1
AFC Home Club
Service Fees
$75 to $125
Response Time
Excellent
Number of States
48
2
First Premier Home Warranty
Service Fee
$45-$75
Response Time
Very Good
Number of States
45
3
Liberty Home Guard
Service Fees
$60
Response Time
Very good
# of States
45
4
Choice Home Warranty
Service Fee
$75 - $85
Response Time
Very Good
Number of States
48
Frequently Asked Questions (FAQs)
Will American Home Shield replace my AC unit?
Yes, American Home Shield will replace your AC unit if it’s beyond repair. The company will replace it with the same model as your previous one.
Can you cancel American Home Shield at any time?
Yes, you can cancel your contract at any time. If you cancel within the first 30 days of coverage, the company will give you a pro-rated refund of your contract fees for the rest of the contract term. But it will keep an administrative fee of up to one month’s payment as well as any service or claims costs incurred during your term.
Are Home warranties worth It?
Some homeowners prefer to have a plan with a home warranty provider, while others prefer to pay for repairs out of pocket. Both have their pros and cons. Home warranties are worth it because they offer peace of mind knowing you won’t incur tremendous costs if your home system breaks down the road.
