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Personal Finance

American Home Shield Review

Updated Mar 01, 2022   |   4 mins read

Founded in 1971, American Home Shield has grown to one of the leading home warranty providers in the United States. The company is headquartered in Tennessee and currently serves tens of thousands of customers.

Through a home warranty plan with American Home Shield, homeowners can select coverage for a variety of costly issues that may arise within their residences, helping save money over time. A home warranty is meant to help cover out-of-pocket expenses associated with unexpected repairs to home systems and appliances.

American Home Shield offers customers the ability to customize their home warranty plans and there is no home inspection required before signing up. When a repair is needed for a covered system or appliance, help can be dispatched anytime, day or night. This differs from homeowners insurancewhich is meant to provide coverage for damage to the home due to theft, disaster, or other non-repair issues.

A home warranty can be a smart financial tool for homeowners so that the cost of repairs of major systems and appliances does not fall completely on their shoulders.

While American Home Shield offers comprehensive, flexible coverage for home warranty services, homeowners need to review the fine print before selecting a plan for their home repair needs.

American Home Shield Policy Specifics

American Home Shield offers home warranty plans to customers throughout the entire United States. A vast network of more than 11,000 independent contractors and more than 45,000 service technicians make this a possibility as well as a significant benefit for homeowners who select an American Home Shield warranty package.

Each contract varies in price, depending on the specifics of the home, what is covered under the plan, and the region where the home is located. Contracts can be as short as one year and are renewable should the homeowner wish to continue service.

An American Home Shield home warranty gives customers the option to choose between three service call options, for $75, $100, or $125 per service request. This flexibility is beneficial for homeowners who want to save some money on their plan cost each year, as a higher service call cost reduces the price of the warranty package.

The warranty company also offers a $25 Amazon gift card for referrals to friends and family, an additional home discount up to $50, and discounts on appliances and air filters.

American Home Shield Coverage

One of the most notable benefits of American Home Shield warranty packages is the ability to customize their service plans. Homeowners can select from the following three plans:

  • The Home Systems Plan – This covers repairs for air conditioning and ductwork, heating systems, electrical systems, doorbells, smoke detectors, ceiling fans, plumbing, water heaters, garbage disposals, water dispensers, and central vacuums.
  • The Appliances Plan – This plan offers coverage for repairs on major appliances including refrigerators, stoves and ovens, washers and dryers, dishwashers, microwaves (built-in), trash compactors, ice makers, garage door openers, and built-in food centers.
  • The Combo Plan – This warranty package covers both home systems and appliances.

Bottom Line

American Home Shield is the largest and most well-known home warranty company offering flexible warranty package options for homeowners who want peace of mind regarding repairs on appliances or systems in their home.

While the company has a large footprint, homeowners should be sure to read the fine print before selecting a home warranty option with American Home Shield. There are several negative customer reviews online relating to restrictions on what was covered or not covered under a home warranty plan. Additionally, the company has a B rating with the Better Business Bureau, and while accredited with the organization, it has received more than 10,000 customer complaints on the site.

A home warranty does offer financial protection for major home repairs for both appliances and systems, which can be a substantial help for homeowners. However, before opting into a contract with American Home Shield or any other home warranty company, it is essential to know what is covered under a plan, any limitations to repairs, and that the price of the plan is a good fit as it relates to your budget.