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.
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An American Home Shield (AHS) plan adds a layer of financial protection for your home’s essential appliances and systems. It’s a solid home warranty provider that covers repairs up to $5,000 per claim, compared to the industry standard, which typically ranges from $1,500 to $3,000 per claim.
AHS is considered the founding company and among one of the best home warranty providers in the industry. It has served homeowners since 1971, offering comprehensive home warranty plans with flexible monthly payments in every state except Alaska and Hawaii.
In this review, we analyze American Home Shield’s pricing structure, coverage plans, add-on options, customer service and sample contracts. Our findings earned AHS a spot on our list of the best home warranty companies.
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 2-10 Home Buyers Warranty and Liberty Home Guard, provide better add-on variety and coverage perks.
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. I requested a fresh quote for a 2,230-square-foot, single-family home in California to retrieve the monthly pricing information below. Your pricing will vary based on your home’s size, location and coverage needs.
American Home Shield offers three home warranty coverage plans:
American Home Shield’s sample contract lists additional factors that influence your coverage plan. Here is an overview of each:
The table below shows American Home Shield’s coverage options per 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.
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.
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.
Below are the primary sections of American Home Shield’s sample contract:
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:
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 Best Company and Trustpilot.
To understand customers’ experiences with American Home Shield, I read more than 100 customer reviews across the aforementioned sites. Some reviews, such as this one from Susie, highlight the prompt and friendly service from American Home Shield’s service providers.
Our team member who has an American Home Shield plan and has filed a claim using its online claims portal also experienced a quick response from AHS and a professional repair done within the same visit.
However, I read several negative reviews in which customers disliked AHS’ lack of communication and coverage consistency, such as this Trustpilot review from Rita.
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.
We research and rate home warranty providers to help you choose the one that’s right for your budget and your home. The best home warranty companies offer many coverage choices, high coverage limits, competitive pricing, good reviews, solid service and extra features.
We rate companies based on our in-depth methodology. We score companies out of 100 on factors related to their coverage options, coverage limits, pricing, reputation, customer service and extra features. We then divide their final score by 20 to obtain the 5-star rating we feature in our reviews.
BBB ratings are accurate as of February 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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