How Much Does A Home Warranty Cost?
Understanding the cost of a home warranty is essential for homeowners looking to protect their major systems and appliances from unexpected breakdowns. A home warranty can provide peace of mind...
Home Warranty
Average Cost: $20 - $90
American Home Shield Warranty stands out with 45 years of experience, offering flexible plans starting at $19.99 per month across all states except Alaska and Hawaii, utilizing a vast network of 17,000 contractors for repairs on home systems and appliances. Their warranty plans cover essential home systems and offer add-ons, providing comprehensive protection and peace of mind for homeowners looking to safeguard their property’s major components.
Whether you are buying a new home or just looking to protect the property you have, you’ve likely considered investing in a home warranty to protect your home’s major appliances and systems such as plumbing, heating and cooling. But with so many options on the market, it can be difficult to know which provider is the right fit for your needs. American Home Shield Warranty is a leader in the field with 45 years in business. Founded in 1971, their flexible plans guarantee coverage starting at $34.99 per month. AHS currently serves more than 2 million customers across the country in every state except for Alaska. Using a network of 17,000 local, licensed contractors, they offer repairs on more than 23 home systems and appliances plus a wealth of add-ons.
American Home Shield
American Home Shield Warranty offers customers three plans to choose from. Each has a number of different appliances and systems it covers. Reading the fine print on what your home warranty covers is key to evaluating whether it will fit your needs.
All three American Home Shield home warranty plans cover 14 different home systems. The 14 home systems are components of three major systems in your home: heating and cooling systems, electrical systems and plumbing systems.
For your heating and cooling (HVAC) system, all three plans will cover:
For your electrical systems, all plans will cover:
And for your plumbing system, all plans will cover:
Below we go over the three options for American Home Shield warranty plans. Keep in mind that while none of the plans include limits in terms of dollar amount for system repairs, the plans do include limits for appliances. Read carefully to determine which plan best suits your needs, based on how much appliance coverage you are looking for.
This American Home Shield warranty plan is considered the most basic of the three options. You can think of this plan as a “beginner’s” home warranty. It covers the major parts of the 14 home systems outlined above. There are no system limits for this plan.
This plan does not include coverage for any appliances, so you will be out of pocket for any appliance repair expenses. However, there are some add-on options that are available, such as an electronics protection plan, roof leak repair plan, and a pool or spa plan.
This plan covers the major parts of 14 home systems plus 9 kitchen and laundry appliances. There are no system limits for this plan, and appliances are covered up to $2,000 each. Covered kitchen appliances:
The same as the American Home ShieldSilver plan, the ShieldGold plan offers optional add-ons including electronics protection, pool and spa, roof leak repair, guest unit coverage, septic pump components, and well pumps.
Coverage that this American Home Shield plan does not offer includes free HVAC tune ups, unlimited refrigerant, and modification coverage for code violations and permits (see the ShieldPlatinum plan if you are interested in this).
This top tier American Home Shield warranty package covers the major parts of 14 home systems, plus the 9 kitchen and laundry appliances included in the ShieldGold level. There are no system limits for this plan, and appliances are covered a bit more, up to $4,000 each. There is a $1,000 roof leak repair limit as well.
Additional premium features included in the ShieldPlatinum warranty plan include:
With any of the three plans, you can also opt to add-on additional coverage for your particular property for an added fee. Those options include:
The cost of a home warranty typically includes a monthly subscription fee plus service fees for each time a technician is called or a claim is filed. AHS home warranty costs also function in this way.
Pricing for your AHS Home Warranty varies depending on the size and location of your home. For example, a 2,000 square foot home in Ohio can get coverage for less than $100 a month at any level. The basic plan, ShieldSilver, is $19.99 to $39.99 a month. ShieldGold is $39.99 to $59.99 per month. The top tier plan, ShieldPlatinum, is $69.99 to $89.99 per month.
| AHS Home Warranty Plan | Monthly Cost | Yearly Cost |
|---|---|---|
| ShieldSilver | $19.99 – $39.99 | $239.88 – $479.88 |
| ShieldGold | $39.99 – $59.99 | $479.88 – $719.88 |
| ShieldPlatinum | $69.99 – $89.99 | $839.88 – $1,079.88 |
Service calls will range in price from $75 to $125 based on the monthly subscription fee outlined in your contract. The above pricing model is based on a $100 service fee. If you select a lower service fee, your monthly premium will increase. If you agree to a $125 service fee, your monthly payment will decrease. Your cost will depend on which option you select based on your needs.
In other parts of the country, prices might be lower or higher, depending on the size of your home. You can get a quick quote through the AHS site by providing your address.
When you choose AHS home warranty, there are several ways to save on your plan with a number of discounts.
To determine the best home warranty service for you, it is best to compare multiple companies and plans. Here’s how AHS home warranties stack up against OneGuard and First American.
| American Home Shield | OneGuard | First American | |
|---|---|---|---|
| Monthly subscription fee | $19.99 to $89.99 | $28 to $65 | $42 to $82 |
| Service fee | $75 to $125 | $69 to $100 | $70 to $125 |
| States serviced | All states except Alaska and Hawaii | Arizona, Texas, Nevada | 40 states |
| BBB rating | B | A | B |
| Waiting period | 30 days | 30 days | 30 days |
American Home Shield’s subscription fee is considered average for the home warranty industry. Keep in mind that some companies offer lower rates, for example, OneGuard starts at $25 per month. AHS service fees (per call) are also considered average for the industry. Keep in mind that fees can change based on your location, home size, and plan, so it is best to compare multiple companies to get the best rates.
One big advantage of AHS home warranty is their coverage area. American Home Shield covers 49 states, only excluding Alaska. By comparison, OneGuard only services Texas, Arizona and Nevada. First American only covers 35 states, with the exception of Alaska, Connecticut, Delaware, Hawaii, Illinois, Louisiana, Maine, Massachusetts, Minnesota, New Hampshire, New York, North Dakota, Rhode Island, Vermont, and Wisconsin.
Modernize recommends looking at each brand’s BBB review to ensure customer satisfaction before choosing a company.
There are pros and cons to the American Home Shield warranty plans. One benefit of opting for American Home Shield is that they cover many common problems that other plans do not including:
AHS also offers a 30-day guarantee on its work. That means that if you have a problem with any repair done under your plan, you can file a complaint within 30 days and they will send a contractor back to the property for free.
You can also buy a home warranty from AHS without a home inspection. This means your home is covered no matter the age or condition of your property or the appliances and systems you’re looking to cover.
There are some downsides to coverage through AHS. First, many plans offer longer guarantees on its work, up to 90 days or more. Second, there are several items in your home that AHS won’t cover. For a comprehensive list, you’ll have to check their site and your particular plan, but here’s a quick rundown:
AHS will not cover appliances or systems if you have an active manufacturer warranty in place. They will not cover sites or dwellings that have been converted into businesses.
The following items are not covered:
Finally, AHS has been negatively reviewed by some customers for a lack of communication between AHS, homeowners and contractors.
Once you purchase a home warranty plan with American Home Shield, you can begin filing claims after the 30-day waiting period. You’ll receive a response for your claim within 48 hours. From there, your service fee for a contractor will range from $75 to $125 depending on the service. These fees are not covered in your monthly subscription costs. Once paid, a contractor will take a look at the problem and offer a quote which American Home Shield will review and respond to with your included coverage amount. From there, you can agree to the services and a contractor will service your system or appliance. If you have a problem with the way in which a problem is fixed, you can file a complaint within 30 days and they will send a contractor back to the property for free.
Evaluating a home warranty company begins with a review of its plans and should always include a look at what customers and business authorities are saying about the company.
Customer reviews for American Home Shield are low on the BBB’s site, but with a company servicing more than 2 million customers, complaints arise. Their current customer rating is 2.26 out of 5. More than 25,000 customer complaints were filed in the past three years and more than 10,000 have been resolved in the last 12 months.
Positive reviews applauded the company’s Professionalism, timeliness, expertise, and politeness. Several reviewers had multiple appliances serviced under their warranty and to their satisfaction. Negative reviews highlighted long wait times for repairs, difficulty with customer service, inadequate repairs and rude technicians.
As you decide which home warranty to go with, be sure to ask questions about what is covered, what it costs and perhaps more importantly, what is not covered.
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