American Home Shield Warranty Reviews | What Does the Warranty Cover?

Intro: American Home Shield Warranty Reviews

In a recent article published by The Atlantic, author Neal Gabler revealed a startling statistic about the modern American household from a Federal Reserve Board survey: “the Fed asked respondents how they would pay for a $400 emergency.

The answer: 47 percent of respondents said that either they would cover the expense by borrowing or selling something, or they would not be able to come up with the $400 at all.”

Many people seeking American Home Shield warranty reviews fall into this 47 percent.

A home warranty guards against unexpected home expenses. A home warranty can make all the difference if a home owner has little or no reserves to pay for these critical repairs themselves.

Let’s look at just what American Home Shield is by examining:

What is an American Home Shield warranty?
What does an American Home Shield warranty cover?
What costs are involved?
Who is in need of an American Home Shield warranty?
What can be learned from American Home warranty reviews?

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What Is an American Home Shield Warranty?

American Home Shield is a business that provides a home warranty to home owners. A home shield warranty is a one-year service agreement designed to cover the cost of repairing or replacing home systems (e.g. air conditioning) or appliances (e.g. refrigerator). The value in purchasing an American Home Shield warranty is the peace of mind in knowing that you won’t be left without heat in the winter if something goes wrong. An American Home Shield warranty works by using the following:

A network of over 10,000 pre-screened repair professionals
Around the clock service support for customers
Four decades of industry experience
Customized coverage plans for different customers

Image Source: American Home Shield

These services can be of great value. Consider this from U.S. News & World Report, which explains that “on average, homeowners will spend between 1 to 4 percent of a home’s value annually on maintenance and repairs, which tend to increase as the house ages.”

The U.S. Census Bureau reports that the median cost of a U.S. home in April of 2016 was $321,000. This could mean annual maintenance costs anywhere from $3,210 to $12,840. An American Home Shield warranty can drive these costs down significantly through smaller monthly payments.

What Does American Home Shield Cover?

Different home owners have different needs. Therefore, a customer can choose from one of three package options. In most cases, you will want to select the option that covers the specific list of appliances and systems in your home. It is helpful to understand which aspects of your home are more prone to failure than others.

Image Source: American Home Shield

The above table illustrates the differing costs behind each plan. The specific costs for your plan will vary slightly from the figures shown above. This difference is due to what repair professionals charge in different areas of the country. American Home Shield will use your zip code to determine pricing online.

You can choose from the following:

An appliance plan
A systems plan
A combination plan (most comprehensive)
A customized plan

When you need a repair or replacement for an appliance or system, your American Home Shield warranty will handle the entre job without any additional cost from you. The agreement is simple:

You pay no additional cost above the monthly fee for the repair or replacement.
The contract is not subject to the specific make or model of the unit addressed.

Examples of items covered in each plan are as follows:

Appliance Plan

Dishwasher
Dryer
Refrigerator
Microwave
Trash compactor
Oven
Garage door opener
Independent ice machine

Systems Plan

Plumbing
Ceiling fan
Smoke detector
Door bell
Garbage disposal
Water heater
Electrical

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What Costs Are Involved? American Home Shield Reviews

The monthly American Shield Home warranty cost depends entirely on the plan you choose. Though costs differ by location, the average customer can expect to pay anywhere from $31 to $65 per month for coverage.

The least expensive American Shield Home warranty plan is the appliances plan as these repairs and replacements are less expensive. A systems plan will be the most costly given the higher level of skill needed to repair an air conditioning system or complex electrical work.

Something to Watch for…

Image Source: Pixabay.com

When you first review the American Shield Home warranty prices for different plans, you may overlook an additional critical cost.

Although you may select a systems plan for $41 per month, there will be an extra fee to pay in the event that you actually require service.

American Home Shield offers the option to select one of the following “trade service fees”:

$75
$100
$125

This is the amount you will pay when the contractor arrives at your home to perform a repair or replacement. As a result, a systems plan package, for example, may cost you up to $160.99 ($35.99 + $125.00) in a given month when a repair/replacement is needed. Note that the monthly cost of coverage for all the plans will decrease when you select a higher trade service fee.

Contracts last for one year and can be canceled within the first 30 days of initiating coverage. If you choose to cancel after the first 30 days, you will be issued a pro-rated refund. Service can be requested at any time using a toll-free phone number.

You may be able to save using the “appliance discount” offered by the American Home Shield warranty coverage. These are exclusive discounts on brand name appliances. In essence, you would be paying less for a new refrigerator through American Home Shield than you would if you were simply purchasing it on your own. In some cases, the savings may offset the cost of the American Home Shield warranty plan.

Who Is In Need of An American Home Shield Warranty?

Those who are on a tight budget or perhaps retired and living on a fixed income may benefit from an American Home Shield warranty coverage option. The value is not just seen in the peace of mind offered by knowing you can handle a costly, unexpected repair. Those with a busy schedule or those who are well into retirement and unable to tackle physically demanding home repairs themselves may want to closely consider coverage.

The added value comes from the vetting American Home Shield performs on all of their service providers. This means that you do not need to spend time researching the skill level, honesty, and dependability of the professional who will be handling the task. This means the job will be completed correctly, without the common dissatisfactions that come from traditional claims on more ordinary insurance policies.

This is an important aspect of the package given the findings in a J.D. Power 2016 U.S. Property Claims Satisfaction Study about home insurance, which reveals, “According to the study, satisfaction has declined by 5 points to 846 from 2015. The largest changes are in the service interaction factor (- 8 points), driven by declines in both the local agent (-8) and claims professional (-28) sub factors.” The verdict: insurance claims leave homeowners increasingly disappointed.

What Can Be Learned from American Home Shield Warranty Reviews?

If the numbers discussed above provide an outline for American Home Shield, the reviews most certainly provide the color. American Shield Home warranty reviews can be telling when they are culled from both internal sources (reviews posted on the American Home Shield warranty reviews page) and those that are external (found on non-affiliated sites).

Internal Reviews

Not surprisingly, the reviews hosted on the site are overwhelmingly positive with customers reporting, “Excellent company. We have done business with them about 25 years at 3 different homes. Always prompt service. Easy to contact if any questions.” Another customer reports, “Our American Home Shield is worth every penny. Owning a home can be expensive when unexpected repairs are needed. It’s also very nice that I don’t have to spend time researching the best service for the best price when getting repairs.”

Video testimonies as well as industry professionals attest to the value of the service and its professionalism.

But What Does The Better Business Bureau Have To Report?

The BBB offers only a grade of “B.” This is based on 6,323 formal complaints filed against the company in the last 3 years. The major source of these complaints arise from “Problems with Product/Service.” Make sure you understand exactly what your package will cover before purchasing. This category of the American Home Shield warranty reviews on the BBB site account for 70% of the total complaints.

Consumer Affairs Verdict

The picture here is much brighter. 13,011 American Home Shield reviews yielded 3,887 ratings with a nearly unanimous endorsement of the company. One customer wrote,

“American Home Shield provides excellent service. The contractor was right on time, found the problem (our AC was out and we needed that problem solved!), and quickly resolved it with parts he had on-hand. (No waiting for the dreaded ‘parts to come in’.) He arrived in a company vehicle, in uniform, and did an excellent job. I would recommend AHS to every homeowner.”

Another customer illustrates the speed of services when she writes, “I completed my service request online. Within 48 hours someone called to schedule an appointment. The guy came, very professional, completed the work.” Clearly people are pleased.

Other External Reviews

The organization Home Warranty Reviews rates American Home Shield as a 2016 “top Rated” company.

The independent editorial review organization Consumer Advocate reports an average of five stars for American Home Shield warranty reviews. This is based on 91 reviews.

Conclusion

In total, the American Shield Home warranty reviews demonstrate a company that is responsive, value-added, and affordable overall. Take a careful look at what your home maintenance spending has been over the past 12 months to determine if engaging in 12 months of coverage at a hypothetical cost of $42.99 per month (plus your “trade service fee” if help is actually needed) is worthwhile.

For many, a one-year contract with one service call at a $100 trade service fee would total approximately $615 for the year ($42.99 x 12)+($100). If you expect one year of home repairs and appliance replacements to be less than this figure consider funding repairs yourself.

But if thoughts of “what if?” keep you up at night, take a closer look at American Home Shield warranties and the peace of mind (and value!) they might be able to offer you.

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