American Home Shield Review: Home Warranty Not Worth It
American Home Shield is poorly rated for its customer service, but it's still among the better home repair insurance companies.
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Editor's Rating
American Home Shield (AHS) offers coverage and prices that are competitive with other home warranty companies, making it as good a choice as any competitor.
However, home warranties in general overpromise and under-deliver, so they're usually not a good idea.
Customers of American Home Shield, like those of many other home warranty companies, frequently complain about denied claims, delayed appointments and shoddy work, so most people are better off saving their money to pay for repairs themselves.
Pros and cons
Pros
Offers roof leak coverage
Option for lock rekeying
Cons
Unreliable customer service
No appliance-only plans
American Home Shield cost vs. competitors
American Home Shield's prices are comparable to those of other home warranty companies. AHS and its competitors all charge about $50 per month for a plan that covers your home systems and appliances.
However, American Home Shield's prices vary based on location and the home's age more than competing companies. If you live in an area where labor is expensive, or you have a larger or older home, you may pay more at AHS than at a competing company.
It's worth noting there are a few coverages in American Home Shield plans that aren't always included in competing plans, which could make it a better value for some people. For example, All American Home Shield plans include lock rekeying, but Liberty Home Guard only offers it as an add-on. And while few competitors offer a plan that covers roof damage, AHS does.
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American Home Shield monthly rates vs. competitors
AHS | Liberty Home Guard | Select Home Warranty | |
|---|---|---|---|
| Appliances only | N/A | $50 | $60 |
| Systems only (ShieldSilver) | $47 | $55 | $60 |
| Systems and appliances (ShieldGold) | $67 | $60 | $64 |
| Plus roof coverage (ShieldPlatinum) | $97 | N/A | N/A |
AHS service fees
Every time you call American Home Shield to do a repair, you must pay a service fee. You choose your service fee when you sign up.
AHS offers service fees of $100 or $125. If you pick the lower service fee, you'll pay more per month. American Home Shield's service fees are about in line with those of its competitors.
Company | Service fee |
|---|---|
| American Home Shield | $100-$125 |
| Liberty Home Guard | $125-$200 |
| Select Home Warranty | $75-$125 |
What American Home Shield plans cover
American Home Shield covers a variety of different appliances and systems in your home, such as your oven, water heater, furnace or refrigerator, depending on the plan you choose.
The company offers three different plans: ShieldSilver, ShieldGold and ShieldPlatinum.
The cheapest option, ShieldSilver, only covers your home's systems, like your furnace or water heater. ShieldGold coverage extends protection to major appliances like your refrigerator, washing machine or stove. ShieldPlatinum raises the limits of your appliance coverage, as well as including a few other extras.
Unlike its competitors, American Home Shield doesn't offer a plan that only covers home appliances.
Systems: Covered in all plans
- HVAC with ductwork
- Electrical
- Doorbells
- Smoke detectors
-
Ceiling fans
- Plumbing
-
Water heaters
-
Garbage disposals
-
Instant hot/cold water dispensers
-
Central vacuums
-
Rekeying door locks
Appliances: Covered in ShieldGold or ShieldPlatinum plans only
-
Refrigerators
- Ranges/ovens/cooktops
-
Washers and dryers
-
Dishwashers
-
Built-in microwave ovens
-
Trash compactors
-
Freestanding ice makers
-
Garage door openers
- Built-in food center/pantry
Extra coverages for ShieldPlatinum
- Roof leak repairs ($1,000 limit)
- Annual HVAC tune-up
- Unlimited AC refrigerant
- Code violations ($250 limit)
Optional AHS coverage add-ons
- Swimming pool
- Hot tub
- Guest house
- Septic pump
- Well pump
Replacement items provided through an AHS warranty are guaranteed to have the same features as your original device, but not the same make, model or color.
For example, a stainless steel Whirlpool refrigerator with a water dispenser will be replaced by another fridge with a water dispenser — but not necessarily stainless steel or a Whirlpool.
American Home Shield plan comparison
Silver (systems only) | Gold (systems + appliances) | Platinum (Higher limit, includes roof and code violations) | |
|---|---|---|---|
| Average price per month | $47 | $67 | $97 |
| Electrical systems | |||
| Plumbing systems | |||
| HVAC systems | |||
| Kitchen appliances | — | ||
| Laundry appliances | — | ||
| Roof leak repairs | — | — | |
| Code violations and permits | — | — | |
| Annual HVAC tune-up | — | — | |
| Unlimited AC refrigerant | — | — |
All limits are per system or appliance, not overall.
Types of damage covered by American Home Shield warranty
American Home Shield covers a specific set of types of damage to your property:
- Normal wear and tear
- Poor maintenance, rust or corrosion
- Improper installation or previous repair
- Unknown preexisting conditions
Any cause of damage or malfunction outside of these categories, or any damage from a specifically excluded cause, will not be paid for.
AHS covers poor maintenance as an acceptable cause of damage. That puts it ahead of many competitors, which exclude damage to appliances because of poor maintenance.
American Home Shield warranty exclusions
American Home Shield warranties will not cover:
- Damage caused by misuse or neglect
- Damage caused by lightning, fire or an earthquake
- Cosmetic damage
- Manufacturer's defects subject to recalls or under warranty
- Routine maintenance
Customer service reviews of American Home Shield
American Home Shield has troublingly negative reviews regarding its customer service. Many consumer complaints describe problems with the contractors that AHS hires, including a lack of expertise and lengthy delays caused by frequent disagreements between the contractor and AHS.
Over the last three years, American Home Shield has received approximately 25,000 complaints through the Better Business Bureau. AHS has received more complaints than the top 10 auto and home insurance companies, combined.
Customers also note frequent difficulty in contacting AHS throughout the service request process, citing long telephone hold times and technical difficulties on the company's website.
While American Home Shield's customer service department is open 24 hours, many of the contractors it works with are not.
This effectively limits service to regular business hours: If your basement floods at midnight, you may have to pay for a plumber yourself.
Some customers report a positive experience with American Home Shield, and a few remarked on getting a brand-new, high-quality appliance for little or no cost. However, the reason for purchasing a home warranty is to reduce uncertainty and provide peace of mind, and the inconsistency of customers' experiences makes the service difficult to recommend.
Home warranty companies often struggle to meet their promises
In general, home warranty programs don't live up to their promises.
The goal of a home warranty service is to provide you with peace of mind and reduce unexpected expenses when a major appliance breaks down. But American Home Shield specifically and the home warranty industry as a whole receive such a high number of complaints that home warranties are generally not worth it.
Over the last three years, American Home Shield by itself has received more complaints through the Better Business Bureau than the 10 biggest home and auto insurance companies combined — a market about 200 times bigger than AHS.
And in 2022, the home warranty industry had more complaints filed about it than almost every other industry in the country. Only online retail, car dealers, cellphone stores and cable TV providers had more.
While some customers report good experiences with a home warranty, there are many complaints from customers describing unsatisfactory experiences.
Common complaints about home warranty companies
- Denied claims: Lots of customers report denied claims, often due to vague, obscure clauses in their contracts.
- Shoddy work: When you make a claim with a home warranty company, it sends out whatever technician it can find to do your work — you usually don't get a choice. So you may get an inexperienced, subpar contractor, with no option to select another.
- Extensive delays: There are numerous reports of customers not receiving service for weeks or months after they file a claim.
Methodology
ValuePenguin compared the prices, service and coverage levels of American Home Shield and two major competitors. All home warranty plan rates are averages across three cities: Minneapolis, Tampa, Fla., and Austin, Texas.
Editorial Note: The content of this article is based on the author's opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.