American Home Shield: Choosing a Plan Tier, the Service Fee and Coverage Limits

American Home Shield sells home warranties: service contracts that pay toward repairing or replacing covered home systems and appliances when they break down through normal wear. It is one of the oldest and largest home warranty companies in the US.

An American Home Shield plan is not home insurance. It does not cover fire, storms or theft. Whether it saves money depends on the tier, the service fee you choose, the age of your appliances and the contract's fine print.

The American Home Shield plan tiers

American Home Shield has sold three main tiers, though names and contents can change and vary by state.

ShieldSilver covers major systems: parts of heating, air conditioning, plumbing and electrical.

ShieldGold adds kitchen and laundry appliances, such as the refrigerator, oven, dishwasher, washer and dryer.

ShieldPlatinum adds extras on top of Gold, which have included items such as roof leak repair and an HVAC tune-up.

Optional add-ons can cover things such as pools and spas, well pumps or a second fridge. Only pay for American Home Shield add-ons that match equipment you actually own.

The service fee and the plan price

You pay American Home Shield in two ways: the plan price, monthly or annually, and a service fee each time a technician is sent out.

American Home Shield has let customers choose their service fee level when buying. A higher service fee lowers the plan price, and a lower fee raises it.

If your appliances are older and you expect several claims a year, a lower service fee usually works out cheaper overall. If everything is newer and you expect few claims, a higher fee with a lower plan price can make sense.

Work out a rough year before choosing: the plan price plus the service fee multiplied by the visits you expect.

Coverage limits and exclusions

This is the part of an American Home Shield contract to read before buying.

Coverage caps limit how much the plan pays per item or per claim. A replacement air conditioner can cost more than the cap, leaving you to pay the difference.

Exclusions commonly include pre-existing problems, damage from lack of maintenance, and costs such as code upgrades, permits and removing old equipment. Some plans cover part of these costs.

Waiting period: new contracts typically have a period after purchase, often around 30 days, before claims are accepted. Check your own contract.

American Home Shield publishes sample contracts by state. Read the one for yours before paying.

How an American Home Shield claim works

You request service online or by phone. American Home Shield assigns a contractor from its network, who diagnoses the fault. The company then decides whether to repair or replace under the contract terms.

You generally cannot choose your own contractor. If you have a trusted local technician, weigh that before buying.

Keep maintenance records, such as furnace servicing and filter changes. They help if a claim is questioned on maintenance grounds.

Who an American Home Shield plan suits

A plan can suit buyers of an older home with ageing appliances, or anyone who prefers predictable repair costs to a large surprise bill.

It suits less well if your systems are new and still under the manufacturer's warranty, or if you would rather set the same money aside yourself.

Home sellers sometimes buy an American Home Shield plan for the buyer as part of a sale. If you are buying a home, ask whether one is included.

This is a financial decision about your own home, so compare the contract with your budget and savings rather than relying on any general rule.

Before you sign with American Home Shield

List the systems and appliances in your home, their ages and any known faults. Match that list against the American Home Shield contract for your state, item by item.

Ask how the plan handles items it cannot repair: a replacement, a cash payment in place of replacement, or a limit on either. The answer shapes the value of an American Home Shield plan more than the monthly price.

Check how renewal pricing works. The first-year price is not always what American Home Shield charges in year two, so ask before relying on it in your budget.

Where the American Home Shield savings are

SAVE250 is the largest dollar saving on an American Home Shield plan. Check which tiers and payment options it applies to before choosing it.

The 30% code is worth more than $250 only if your first-year plan costs more than about $833. Price your chosen tier and service fee, then compare both.

The 20PERMONTH code's name suggests $20 off each month, which suits monthly payers. Confirm how many months the discount runs.

American Home Shield codes are generally for new customers and one per contract. Check the discounted price on the final quote screen before paying.

Common questions

Is American Home Shield the same as home insurance?

No. Home insurance covers sudden damage such as fire or storms. An American Home Shield plan covers breakdowns from normal wear.

Can I cancel an American Home Shield plan?

Generally yes, with terms that vary by state. Refunds and any cancellation fee are set out in your contract.

Will American Home Shield replace an old appliance?

It can, if the item is covered and cannot be repaired economically, up to the plan's coverage limit. Pre-existing faults are usually excluded.