Is American Home Shield Warranty Reliable?

With more than 50 years of experience and two million customers, an American Home Shield warranty sounds like peace of mind for many homeowners. Homeowners rely on home warranty companies to safeguard against expensive repairs and home issues. While there are many satisfied customers who enjoy the comfort of knowing they have some protection against the high costs of home repair, American Home Shield reviews tell us not everyone is satisfied with the company or its offerings.

Hundreds of consumers have left complaints about issues with American Home Shield customer service and problems with the repair services the company facilitates. With a nationwide network of contractors and an advertised long history of helping homeowners, we sought to know how reliable this company is. We turned to American Home Shield reviews to find out.

Number of American Home Shield reviews - 4.6K

American Home Shield rating* – 1.4 ⭐

Claimed losses - $2.3M

Successful calls – 9% /4.6K

Resolved issues - 38

Key Insights

• Before buying a home warranty, remember it is not the same as homeowner’s insurance. It covers a set amount for repairs and replacements.
• American Home Shield covers repairs to household items like air conditioning, heating, appliances, plumbing, and pools and spas.
• Waits for repairs can be long based on the availability of AHS warranty contractors in a local area.

American Home Shield Warranty Reviews: Is It Worth the Investment?

There are currently more than 4,500 American Home Shield reviews on PissedConsumer.com giving the company a composite rating of 1.4 out of a possible 5 stars. 94% of the reviews left on the site are negative and only 19% of customers would likely recommend the company to a friend. More than 4,600 calls to the company have been made through PissedConsumer and only 9% of those phone calls have resulted in resolved issues. 

One frustrated PissedConsumer.com user left a review explaining his interactions with the company. According to his American Home Shield review, Benjamin S. had a plumbing issue in his home. After multiple attempts, he was able to reach American Home Shield customer service and was told to hire his own plumber and he would be reimbursed for the trouble.

 “We did as instructed and the plumber came out and said we had a bad valve on our water heater. They contacted AHS and instead of AHS allowing them to do the work AHS contacted Hays County plumbing,” explained Benjamin.

In his American Home Shield complaint, Benjamin noted that the company required the new plumbing company, Hays County plumbing, to come and inspect the same thing the original company had inspected. While the new plumbing company was in his home, Benjamin noted in his online review that the plumber also inspected a second water heater in the home that had no issues.

According to Benjamin, “A day later I notice water coming out of the closet from our 2nd water heater where the plumber was and found a small flood.” He attempted to call the American Home Shield customer service number but did not reach anyone who could help. Instead, he turned to social media accounts and left a video review on PissedConsumer “after multiple calls and sitting on hold for hours on end.”

So, what are American Home Shield pros and cons based on consumer reviews?

AHS pros

Customers do have some positive things to say about AHS customer service. For example, customers said they have found the following to be positive aspects of the company:

• Some repairs are done well
• Quick service
• Polite
• Setting up the original appointment goes well.

AHS cons

The top complaints center around service by contractors and issues with American Home Shield customer service. The full list of American Home Shield cons described on PissedConsumer includes:

• A lack of customer service
• Shady or suspicious contractor companies
• Terrible communication
• Unreliable employees
• The representatives are hard to understand
• Slow service and no solutions to issues
• Difficult to deal with.

What Does American Home Shield Cover?

According to the American Home Shield website, the company covers up to 23 home items, including parts of the systems and appliances you rely on daily.

There are various categories of coverage and there are also different plans available through the company that are customized to each homeowner. American Home Shield does not require customers to submit home inspection records prior to purchasing one of its home warranty plans.

A California homeowner ran into issues along these lines when a separate winterization inspection turned up a gas furnace that a previous owner had improperly installed. The reviewer stated that 

I had purchased a MobleHome that was refurbished, AHS assured me all the appliances would have coverage.

However, when the homeowner requested a replacement through his AHS policy, the company refused and claimed they only covered improper installations “if they had installed the furnace.” When the homeowner asked to cancel, the company wanted to charge a cancellation fee, which made the reviewer frustrated and looking for help from “the California Insurance Commissioner about this shade business practice.”

AHS Warranty: Do They Offer Replacement Options?

Customers buy American Home Shield plans to have protection in their home when something breaks or needs repairs. According to the AHS website, the company handles an “approved repair or replacement” by paying to dismantle and remove defective equipment. Later in the online contract, the company specifics that American Home Shield first repairs itemsbut if they “cannot repair” the company “will prove you with a replacement up to the Covered Item Limit.”

At least one customer feels the company takes this policy to extremes. In their AHS review, a customer explained that the home warranty provider had serviced a refrigerator 5 times and continued

I am currently sitting on week 3 with a disassembled running fridge with a large fan blowing on it to keep it from over heating.

However, AHS stated that “no replacement necessary.” 

According to his American Home Shield reviews, another customer, Benjamin S. knew how the AHS warranty was supposed to work. After spending a month trying the American Home Shield phone number, he was frustrated. He had left messages online on social media and finally was contacted through Facebook about his American Home Shield complaints.

At this point, it had been almost a month since Benjamin’s original online review, and he did not have a solution. Additionally, he was being asked to pay a $75 service fee his American Home Shield warranty was supposed to reimburse.  

When the company came back with a solution, Benjamin was told that his American Home Shield warranty would make a replacement on his water heater if he “would have to pay an additional $479 to bring the space up to code.” When Benjamin called back with additional complaints about what he felt was unnecessary spending, they told that he could “have the water heater installed myself but they would only pay $441 toward the cost.”

This is in line with the information provided on the company’s website about American Home Shield repairs and policies. According to the sample contract provided online in the AHS FAQ section, the company states that they do “not cover the costs associated with any permits, tests, the correction of existing code violations, or inspections that may be necessary to complete the approved repair.” 

How to Contact American Home Shield Customer Service

Benjamin S.  had called the American Home Shield phone number countless times, emailed with representatives, and communicated through social media accounts.

Like many customers leaving American Home Shield reviews, Benjamin has been a loyal customer for years. He even praised the company by saying that “The customer service used to be top-notch.” But like many others leaving reviews about AHS, Benjamin feels like the company’s approach to customer service is frustrating at times.  

Customers have several options to reach American Home Shield Customer Service:

• Call its phone number 1-888-682-1043.
• Email American Home Shield by sending messages to mediacenter@ahs.com
• Contact or request service by using the online American Home Shield online request form. 
• Contact the company through social media including Facebook, YouTube, Instagram, and X (formerly Twitter).

Some consumers are satisfied with AHS customer service. One of the reviewers described the customer support team as “folks are doing the best they can to help you. It is really 24/7, and the wait time is 1 second.”

However, despite the many channels customers have to contact customer service, issues remain. 

One warranty holder in review #5155172 shared their experience with dealing the company when they had a problem with a water heater:

They have the worst customer service. Each time I called I was told something different, they do not have Supervisors available. No Email address.

Another customer, Benjamin S., had called the American Home Shield phone number countless times, emailed with representatives, and communicated through social media accounts.

Like many customers leaving American Home Shield reviews, Benjamin has been a loyal customer for years. He even praised the company by saying that “The customer service used to be top-notch.” But like many others leaving reviews about AHS, Benjamin feels like the company’s approach to customer service is frustrating at times.

How to Cancel AHS Warranty

The instructions for canceling an AHS warranty are outlined online on the company’s FAQ page. To cancel an American Home Shield Warranty customers should call 833-706-2865 and speak directly with a customer service agent.

If you are moving, you also have the option to call and transfer the plan to the new homeowner by calling 833-706-2866. 

According to the AHS FAQ, if you “cancel your plan agreement after 30 days, you’ll receive a prorated refund…minus an administrative fee of up to one month’s payment.” 

Many of the American Home Shield reviews explain the frustration with the cancellation process and associated fee. For example, one customer noted that they canceled their home warranty “on January 12, 2024” and were told “my policy was canceled on 1/31/24 and no further charges would be incurred.” Despite this, they

…incurred a monthly charge on the card on file. When I spoke with the company, they stated that the fee was an "administrative fee"...the company charged after Jan 31, 2024, and won't reverse the charge. 

The customer feels that “this is a fraudulent charge.”

Tips for Buying a Home Warranty

Customers buy a home warranty for peace of mind. They want to know that they will have help paying for expensive repairs when – not if – they occur. But home warranties might not be bringing customers the confidence and savings they wanted. That’s not to say a home warranty isn’t worth it. If you’re going to pay for a home warranty, just be sure you know what you’re getting into. 

Here is what you should know before buying a home warranty that might help.

You’re not fully covered

A home warranty isn’t the same as a homeowner’s insurance. With insurance, your policy will pay the full price of a repair less the deductible. A home warranty, on the other hand, only pays a set amount toward a repair or replacement. You may wind up paying the bulk of the replacement price for expensive repairs.

You don’t get choices about companies

When you work through a home warranty company, you don’t get much choice in repair companies. You contact the warranty company and they send a company of their own choosing to resolve the issue. There is no opportunity to vet the company or get multiple bids for an issue. You’re stuck with whomever the company sends your way.

Each call costs you money

Every call you make to your home warranty costs you a service fee. If the service fee is $75, you’re paying that amount even if the service person can’t fix the issue you’re having. You’ll also pay $75 regardless of how much it might cost to repair the issue you’re having. The service fee is in addition to the monthly or annual price of the home warranty you’ve purchased.

You may not get full replacement value

If you do wind up needing to replace an item rather than repair it, home warranty companies may not give you the total replacement value. Instead, they may give you the depreciated value of the item, which will not cover the full cost of a replacement, so you will have to pay the rest of the cost out of pocket. 

Understanding American Home Shield

The idea behind a home warranty company like American Home Shield is to pay for insurance that protects homeowners from more expensive home repairs. While the idea is sound and may work well for some homeowners, others struggle to find solutions when they call or deal with contractors sent by the company. 

While many customers find the help they need, others get frustrated and wonder how to cancel AHS warranty coverage they can’t use as expected. Have your own American Home Shield story or question? Why not leave a review and join our online community? 

*The company ratings on the PissedConsumer website are calculated using a mathematical algorithm that evaluates the information in the company’s profile. The algorithm parameters are: users’ rating, the number of resolved issues, the number of company responses and more. The PissedConsumer algorithm is also subject to change in the future.