What American Home Shield Does

American Home Shield is a home warranty company that sells service contracts covering the repair or replacement of major home systems and appliances when they break down. You pay a monthly or annual fee, and when something covered fails, you call their claims line, describe the problem, and they send a contractor to fix it. You typically pay a service call fee (often $75 to $150 per visit) when the contractor arrives, and American Home Shield pays the rest of the repair bill up to the plan's limit.

The company does not cover damage from lack of maintenance, pre-existing problems known before you bought the plan, or systems that were already broken when coverage started. It also does not cover damage from natural disasters, pest infestations, or code violations. American Home Shield is owned by ServiceMaster Global Holdings and operates in most U.S. states, though coverage and pricing vary by location.

Key Takeaways

  • American Home Shield charges a monthly or annual premium plus a service call fee each time you use the plan, and you choose which contractor they send or can request your own in some cases.
  • Coverage typically includes heating and cooling systems, water heaters, electrical systems, plumbing, and major appliances, but the exact list depends on which plan tier you select.
  • The company will not cover repairs if the system was already broken when your coverage started, was damaged by lack of maintenance, or failed due to a pre-existing condition you did not disclose.
  • You should read the plan documents carefully because coverage limits, exclusions, and service call fees differ between plans and between states.
  • American Home Shield is a private company, not a government program, and the contract is between you and them — your homeowner's insurance does not cover what they do.

What Systems and Appliances Are Usually Covered

American Home Shield offers multiple plan tiers, and coverage changes based on which one you buy. Most plans include the heating system (furnace or heat pump), air conditioning, water heater, electrical system, plumbing (interior pipes and fixtures), and major kitchen appliances like refrigerators, ovens, dishwashers, and washing machines. Some plans add coverage for garage door openers, well pumps, septic systems, or pool and spa equipment, but these cost more.

Each covered item usually has a repair limit — the maximum amount American Home Shield will pay toward that repair in a single visit. If the repair exceeds that limit, you pay the difference. The company also sets an annual maximum, the total amount they will pay across all claims in a year. Once you hit that cap, additional repairs are your responsibility. These limits vary by plan and by state, so you need to check your specific contract to know what you are actually covered for.

The plan does not cover cosmetic damage, minor adjustments, or routine maintenance like cleaning gutters or replacing air filters. It also does not cover systems or appliances you did not disclose as working when you signed up, or anything that was already broken before your coverage began.

How to File a Claim and What to Expect

When something breaks, you call American Home Shield's claims line (the number is on your contract or their website). You describe the problem, provide your account number, and they schedule a service visit. In most cases, American Home Shield chooses the contractor and sends them to your home within a few days, though wait times vary by location and season. When the contractor arrives, you pay the service call fee upfront, and they diagnose and repair the problem.

If the repair is covered and within the plan limits, American Home Shield pays the contractor directly. If the repair exceeds the limit, you pay the overage. If the contractor determines the problem is not covered — for example, because it stems from lack of maintenance — you may owe the full repair bill. Some plans let you request your own contractor instead of using American Home Shield's network, but you usually have to pay the full bill upfront and then submit a claim for reimbursement, which takes longer.

Keep records of all service visits, repair bills, and correspondence with American Home Shield. If you disagree with a claim denial, you can file a complaint with your state's insurance commissioner or the company's customer service department.

Common Exclusions and What They Mean

American Home Shield will not cover repairs if the system or appliance was already broken when your coverage started. This is called a pre-existing condition. The company may ask you to sign a statement saying all covered items were in working order on the start date. If you later claim a repair and they discover the problem existed before, they can deny the claim.

The plan also excludes damage caused by lack of maintenance. If your air conditioner failed because you never replaced the filter, or your plumbing backed up because you never had the lines cleaned, American Home Shield can refuse to pay. Similarly, damage from natural disasters (earthquakes, floods, hurricanes), pest infestations, code violations, or intentional damage is not covered. Repairs needed because of someone's negligence — for example, a water heater that burst because the temperature was set too high — may also be denied.

Some items are straightforward not covered under any plan: roofs, foundations, septic systems (unless you buy a rider), pools, hot tubs, and items you installed yourself without a permit. Check your contract's exclusions section to see the full list for your specific plan.

Cost: Premiums, Service Fees, and Plan Limits

American Home Shield's monthly premium typically ranges from $15 to $60 depending on your location, the plan tier, and what systems you include, but these figures vary. You also pay a service call fee each time you use the plan — usually $75 to $150 per visit. Some plans charge different service fees for different types of repairs (for example, $100 for appliances, $150 for systems).

In addition to the service fee, American Home Shield sets repair limits and annual maximums. A repair limit might be $1,500 per visit for a water heater, meaning if the repair costs $2,000, you pay $500 out of pocket. An annual maximum might be $5,000, meaning once the company has paid $5,000 across all your claims in a year, you pay for any additional repairs yourself. These numbers differ by plan and state.

Before you buy, calculate whether the plan makes financial sense for you. If your home is new and systems are under manufacturer warranty, or if you have money set aside for repairs, a warranty may not be worth the cost. If your home is older and you want predictable repair costs, it may be. Compare the premium, service fees, and limits against the typical cost of repairs in your area.

How American Home Shield Differs From Homeowner's Insurance

Homeowner's insurance covers sudden, accidental damage to your home — a fire, a tree falling on the roof, a burst pipe from freezing. It does not cover repairs to systems and appliances that straightforward wear out and stop working. American Home Shield does the opposite: it covers repairs to systems and appliances that fail from normal wear and tear, but not damage from accidents or disasters.

The two work together but are separate contracts with different companies. Your homeowner's insurance will not pay for a water heater that rusted out after 15 years. American Home Shield will (if you have the right plan and it is not a pre-existing condition). But if a tree falls and damages your roof, homeowner's insurance covers it and American Home Shield does not. You need both types of coverage to be fully protected.

Questions to Ask Before Buying

Before you sign up for American Home Shield, get answers to these questions in writing: What is the exact list of covered systems and appliances under the plan you are considering? What are the repair limits and annual maximum? What is the service call fee, and does it vary by type of repair? How long is the waiting period before coverage starts (some plans have a 30-day wait)? Can you use your own contractor, or must you use theirs? What happens if you disagree with a claim denial?

Also ask whether the plan covers items you already know are aging or problematic. If your water heater is 12 years old and you are worried it will fail soon, American Home Shield will likely deny a claim if it breaks within the first 30 to 60 days, because they will assume it was a pre-existing condition. Read the contract's fine print, especially the exclusions and limitations sections, before you commit.

Frequently Asked Questions

Can I cancel American Home Shield if I change my mind?

Yes. Most plans have a cancellation period (often 30 days) during which you can cancel for a full refund. After that, you can cancel anytime, but you typically forfeit any unused premium. Check your contract for the exact cancellation terms and any early termination fees.

What if the contractor American Home Shield sends does poor work?

Contact American Home Shield's customer service and describe the problem. You can request a different contractor or, in some cases, have the repair redone. If you are not satisfied, you can file a complaint with your state's insurance commissioner. Keep all documentation of the poor work.

Does American Home Shield cover items I buy after I sign up?

No. Coverage applies only to systems and appliances that existed and were in working order when your plan started. If you install a new dishwasher after signing up, it is not covered unless you specifically add it to your plan and pay an additional fee.

What if my home is in an area American Home Shield does not serve?

American Home Shield operates in most states, but not all. Check their website or call their customer service line to confirm they serve your zip code. If they do not, you can look at other home warranty companies that operate in your area.

Is American Home Shield worth it for a new home?

Probably not in the first few years. New homes come with manufacturer warranties on appliances and builder warranties on systems, which typically last one to ten years. A home warranty makes more financial sense once those warranties expire and your systems are older, usually after five to ten years of ownership.