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Is the country’s largest provider of home warranties the best choice for you?
Updated March 7, 2023
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Wouldn’t it be great if you could make it so nothing in your house ever broke and nothing ever needed repairs? Like you had some sort of, we don’t know, shield to protect you against the seeming inevitability of Murphy’s law?
If American Home Shield has anything to say about it, you do.
American Home Shield’s Logo
One of the largest home warranty companies in the nation, American Home Shield has been protecting homeowners from the unplanned costs of major system repair and replacement for over 50 years. With 1.8 million customers in 49 states, it’s easy to assume it’s one of the best in the business.
But is that assumption correct?
That’s what we’re going to investigate today. We’ll talk about American Home Shield’s protections, its costs, and its online reputation. We’ll also discuss what you can expect if you choose to protect your home through the company, and what to watch out for. Before we get into the details and nuances, let’s touch on a few pros and cons.
Now that you have a taste for what American Home Shield has to offer, let’s talk about who can and can’t use the company’s warranties.
Right off the bat, we have a pretty big checkmark in the Pros column. American Home Shield is available in every state except Alaska. Sorry, Alaskans.
Why is that worth mentioning? A lot of other home warranty companies are available only in select states. When we reviewed First American Home Warranty, for example, we found some pretty great protections, but the company excluded almost half the country.
A lot of people confuse home warranties with homeowners insurance, but they are two different things with two different functions. The simplest way to understand it is that homeowners insurance covers major damage to your home, such as fires and natural disasters. Home warranties, on the other hand, protect your home’s appliances and systems from breakdown.
American Home Shield offers three levels of protection. Let’s unpack them in handy-dandy chart form.
| American Home Shield Protection Plan | Shield Silver | Shield Gold | Shield Platinum |
|---|---|---|---|
| Air conditioner | Yes | Yes | Yes |
| Heating units | Yes | Yes | Yes |
| Ductwork | Yes | Yes | Yes |
| Exhaust fans | Yes | Yes | Yes |
| Breaker and fuse panel box | Yes | Yes | Yes |
| Doorbells | Yes | Yes | Yes |
| Interior electrical lines | Yes | Yes | Yes |
| Ceiling fans | Yes | Yes | Yes |
| Garage door openers | Yes | Yes | Yes |
| Water heaters | Yes | Yes | Yes |
| Interior plumbing | Yes | Yes | Yes |
| Toilets | Yes | Yes | Yes |
| Faucets | Yes | Yes | Yes |
| Whirlpool tub motor and components | Yes | Yes | Yes |
| Refrigerators | No | Yes | Yes |
| Ranges | No | Yes | Yes |
| Cook tops | No | Yes | Yes |
| Ovens | No | Yes | Yes |
| Dishwashers | No | Yes | Yes |
| Built-in microwaves | No | Yes | Yes |
| Garbage disposals | No | Yes | Yes |
| Instant hot/cold water dispensers | No | Yes | Yes |
| Washers | No | Yes | Yes |
| Dryers | No | Yes | Yes |
| Minor roof leaks | Add-on | Add-on | Yes |
| Appliances limit | Not covered | $3,000 per | $6,000 per |
| Code violations | Not covered | Not covered | $1,000 per year |
One key difference between the Silver and Gold plans is that the former excludes common kitchen appliances, washers, and dryers, while the midtier plan covers them. The highest-level Platinum tier protects pretty much everything and doubles the limits American Home Shield places on appliance replacement. If you have a refrigerator that talks to you, this may be the plan for you.
“But wait,” you might be saying. “How much do these plans cost?” Don’t worry. We have a whole section on that coming up. But first let’s talk about what sets American Home Shield apart from its competition.
During our research, we found a few items that make American Home Shield a little different from other home warranty providers. For starters, it covers older appliances and systems. Some warranty providers won’t cover certain products or systems if they are too old, but that’s not so with American Home Shield. We can’t say they won’t scratch their heads if your home is heated by whale oil, but you’ll be covered as long as it’s within reason.
Pro Tip: Make absolutely sure you understand what is and isn’t covered by your policy. Go into excruciating detail with your sales representative if necessary. Give them all the details, and make sure you’re satisfied with their answers. If not, you may be the one holding the bag if something breaks down.
American Home Shield is also pretty loose about what it defines as “properly maintained.” Some home warranty providers may exclude your appliances or systems from coverage if you haven’t kept meticulous records of how often they were serviced and what exactly was done to them.
The company is also happy to help properly repair or replace an appliance or system that was improperly fixed beforehand. That can be a lifesaver if, for instance, your home’s previous owner fancied themselves an electrician and forgot to ground all the light fixtures.
That all sounds pretty good, but now we have to talk about the elephant in the room: price.
The cost of your American Home Shield Warranty will depend on four factors:
| Plan | Price |
|---|---|
| Shield Silver | $29.99 to $44.99 |
| Shield Gold | $39.99 to $54.99 |
| Shield Platinum | $59.99 to $74.99 |
We should also mention that, as with most home warranties, American Home Shield includes an a la carte menu once you’ve selected your plan. Some of the coverages and costs include:
| Additional coverage | Additional costs* |
|---|---|
| Roof leak repair | $10 per month |
| Electronics protection plan | $14 per month |
| Pool or spa | $24 per month |
| Guest unit | $20.99 per month |
| Septic pump | $5 per month |
| Well pump | $8 per month |
*These were the costs for a Shield Gold plan for a modest, single-family home in Atlanta.
One thing we didn’t particularly like is that there’s no opportunity to save by purchasing your warranty for a year. When we reviewed Choice Home Warranty, for example, we found you’d save about $80 if you paid annually. That’s something to consider if you plan to shop around, which we highly recommend.
Before we move off dollars and cents, there’s one last thing to mention: service-call fees. American Home Shield allows customers to select how much they’ll pay when a technician has to come out to diagnose an issue: $75, $100, or $125. It may seem counterintuitive, but we recommend selecting the highest amount. If you select the lowest amount, your monthly cost will go up. Assuming you don’t need a repair person to come to your property every two weeks, it’ll take you no time to burn through the savings in a higher monthly cost.
There are lots of ways to save when you go with a home warranty from First American. The first is by keeping your service fee at $125. Why? Let’s do some quick math.
American Home Shield’s website is informative and easy to use
We’ve received online quotes for quite a few home warranties in our day, and American Home Shield’s process is one of the easiest. Its website is excellent, and it offers a ton of valuable resources for potential customers. Even if you’ve never heard of home warranties before, you’ll feel like an expert after spending 20 minutes with American Home Shield’s online resources.
Pro Tip: We certainly recommended clicking around on American Home Shield’s site for a while before you buy. The educational resources it provides are extremely valuable and will help you make the best decision for protecting your property and belongings.
If this is checking all the boxes for you, that’s great, but we need to talk about one final element that may influence whether you go with American Home Shield: What do other customers think about it?
This is where we pump the brakes. American Home Shield looks really good on the surface, but when you start investigating what people say about it, you may raise an eyebrow. Or two.
Some of the complaints are pretty egregious, and a lot of them center on the same theme: Customer service gives people the runaround.
But it’s not all bad. Here’s an example of someone’s good experience with American Home Shield. This one is from Joy K.:
My hot water heater broke. No hot water. I notified AHS and they assigned my case within an hour. They called the next morning. There was a wait, but I understood. They came out and got the hot water back on… I am glad I have American Home Shield to call when I have a problem, and I am very glad they have [great contractors working with them].
American Home Shield has 2.24 out of five stars on the Better Business Bureau website (not stellar), and the BBB gave the company a B rating. It has been accredited since 1997, and there are over 11,000 reviews to pull from when you’re making your decision. Keep in mind, though, that it’s really difficult to parse the truth in these testimonials.
In our estimation, yes. Despite the troubling online reviews, we think American Home Shield delivers great coverage for reasonable prices. We always recommend having a total understanding of what will and won’t be covered before you call out the service crews, but you’ll be in great shape if you can get your arms around that before you sign on the dotted line.
While your lender requires you to carry homeowners insurance, there is no such requirement for home warranties. Purchasing one is completely up to the homeowner’s discretion.
First American Home Warranty has been in business for over 35 years and has a great reputation in the industry. Its protections are comprehensive and relatively affordable.
First American’s basic coverage is pretty standard in terms of costs, but if you add on coverage or opt for the Premium service package, it can get a little expensive.
If you purchase a warranty from First American today, your coverage will start in 30 days.
First American is one of the few home warranty companies that include minor roof repairs in certain coverage packages.
