Is American Home Shield a Ripoff? An Honest Review

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  • Post last modified:January 15, 2024
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American Home Shield is a home warranty company that promises to cover the cost of repairing or replacing covered appliances and systems in a home.

While the idea of having a home warranty can be appealing to homeowners, many are left wondering whether American Home Shield is a ripoff or a legitimate company.

A quick search online reveals a mix of positive and negative reviews of American Home Shield. On the one hand, the company has an A+ rating with the Better Business Bureau and has been accredited since 1997.

On the other hand, the BBB has received over 26,000 complaints about American Home Shield in the last three years alone, with many customers citing issues such as denied claims, poor customer service, and difficulty canceling their contracts.

Given this mixed feedback, it’s important for homeowners to do their due diligence before signing up for a home warranty with American Home Shield or any other company. While the company may be a good fit for some, others may be better off looking into alternative options.

American Home Shield Contract Details

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When considering a home warranty plan, it is important to carefully review the contract details. American Home Shield offers three main coverage options: ShieldSilver, ShieldGold, and ShieldPlatinum. Each plan offers varying levels of coverage for home systems and appliances.

Customers also have the option to add on coverage for items such as pools and guest units. The cost of the plan varies depending on the level of coverage and any add-ons selected.

It is important to note that American Home Shield operates on a service contract basis. This means that customers are required to pay a service fee each time a repair or replacement is needed. The service fee ranges from $75 to $125 depending on the plan selected.

If a customer decides to cancel their policy, there may be a cancellation fee depending on the terms of their contract. It is important to review the cancellation policy carefully before signing up for a plan.

Overall, American Home Shield offers a variety of coverage options for home systems and appliances. However, it is important for customers to carefully review the contract details and understand the terms of their policy before making a commitment.

Coverage and Limitations

American Home Shield offers coverage for a wide range of home systems and appliances. This includes home systems such as electrical, plumbing, HVAC, well pumps, and septic pumps, as well as appliances such as refrigerators, water heaters, furnaces, and electronics.

The company also offers coverage for laundry and air conditioning systems.

While American Home Shield’s coverage is comprehensive, it is important to note that there are some limitations to the coverage. For example, coverage limits may apply to certain items, and there may be exclusions for certain types of damage or wear and tear.

It is important to carefully review the terms and conditions of the policy to fully understand what is covered and what is not.

In addition, American Home Shield may require pre-approval for certain repairs or replacements. This means that the homeowner must contact the company before having any work done and may need to wait for approval before proceeding.

The company also has a service fee, which is the amount the homeowner must pay for each service call. The fee may vary depending on the plan and the specific service needed.

Overall, American Home Shield’s coverage is comprehensive and can provide peace of mind for homeowners. However, it is important to carefully review the terms and conditions of the policy to fully understand the coverage and limitations.

Cost and Pricing

When it comes to home warranties, cost is always a major concern. As per Market Watch, American Home Shield offers three different plans: ShieldSilver, ShieldGold, and ShieldPlatinum, with an average monthly rate of $59.99.

The monthly premium varies depending on the plan chosen and the state where the homeowner resides.

In addition to the monthly premium, American Home Shield charges a service fee for each service call, which ranges from $75 to $125.

This fee is paid directly to the technician who comes to perform the repair or replacement. The service fee is fixed and does not change, regardless of the cost of the repair.

It is important to note that American Home Shield’s plans have out-of-pocket costs that vary depending on the plan and the type of repair or replacement needed. The out-of-pocket costs can range from a few dollars to several hundred dollars, and are clearly outlined in the contract.

Overall, American Home Shield’s pricing is competitive with other home warranty companies in the industry. However, it is important for homeowners to carefully review the contract and understand the costs associated with each plan before signing up.

Process of Filing Claims

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American Home Shield provides a simple and straightforward claims process. Customers can file a claim via their online portal or by calling their 24/7 claims phone line.

Once the claim is filed, American Home Shield will send a service technician to diagnose the issue within 48 hours of receiving it.

To file a claim, customers need to provide their contract number, a description of the problem, and a preferred time for the service call. Customers can also track the status of their claim online or through the mobile app.

When a service technician arrives, they will diagnose the issue and determine if it is covered by the customer’s plan. If it is covered, the technician will repair or replace the item. If it is not covered, the customer will be responsible for the cost of the repair or replacement.

It is important to note that American Home Shield charges a service fee for each service request. The fee varies depending on the customer’s plan and the type of service requested. Customers should check their contract for more information on service fees.

Overall, American Home Shield’s claims process is efficient and customer-friendly. Customers can file a claim easily and track its progress online. The service technicians are knowledgeable and professional, and the company’s coverage is comprehensive.

Quality of Service and Repairs

One of the most important aspects of a home warranty is the quality of service and repairs provided by the company. American Home Shield has received mixed reviews in this regard.

Some customers have reported positive experiences with the company’s service providers, praising their professionalism and expertise. Others, however, have reported negative experiences with contractors who were unresponsive, unprofessional, or provided poor quality work.

American Home Shield offers a workmanship guarantee for repairs and replacements, which can provide peace of mind for customers who are concerned about the quality of the work. However, some customers have reported difficulty in getting the company to honor this guarantee.

Overall, it appears that the quality of service and repairs provided by American Home Shield is inconsistent.

While some customers have had positive experiences, others have had negative experiences with unresponsive or unprofessional contractors. Customers should carefully research the company’s service providers and read reviews before making a decision to purchase a home warranty.

Customer Reviews and Complaints

American Home Shield has received mixed reviews from customers, with some praising their services and others expressing dissatisfaction.

The Better Business Bureau (BBB) has received numerous complaints about American Home Shield regarding issues such as poor customer service, long wait times for repairs, and denied claims.

One customer reported that they had to wait over a month for a repair, while another reported that their claim was denied due to a pre-existing condition.

On Trustpilot, American Home Shield has a rating of 2.2 stars out of 5 based on customer reviews. Many customers have reported issues with customer service representatives, with some stating that they were unhelpful and unresponsive.

One customer reported that they had to call multiple times to get a resolution to their issue, while another reported that they were given the runaround when trying to cancel their service.

Despite the negative reviews, American Home Shield also has many satisfied customers who have praised their services.

According to ConsumerAffairs, American Home Shield has an overall rating of 4.7 out of 5 based on customer reviews. Customers have praised the company for their comprehensive coverage and prompt service.

In conclusion, while American Home Shield has received both positive and negative reviews from customers, it is important to consider all feedback and make an informed decision about whether their services are right for your needs.

Is American Shield a Rip-off or Worth the Investment?

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American Home Shield is a home warranty company that offers various coverage plans to protect homeowners from unexpected expenses due to appliance and system breakdowns.

While some customers have reported negative experiences, it is important to evaluate the company’s services to determine if it is a rip-off or worth the investment.

Worth the Investment

For homeowners who want peace of mind and do not want to worry about the high cost of repairs or replacements, American Home Shield can be a worthwhile investment.

The company offers a variety of plans that cover different appliances and systems, allowing customers to choose the coverage that best fits their needs and budget. With a home warranty plan, homeowners can avoid the financial burden of unexpected repairs and replacements, which can be expensive.

Not a Rip-off

While some customers have reported negative experiences with American Home Shield, it is important to note that not all customers have had the same experience.

The company has been in business for over 50 years and has a large customer base. American Home Shield has also received positive reviews and ratings from reputable sources such as This Old House.

Expensive

One potential downside of American Home Shield is that their plans can be expensive. Customers will need to pay a monthly fee, which can vary depending on the plan and the level of coverage.

Additionally, customers will need to pay a service fee each time they request a repair or replacement. These fees can add up over time and may not be worth the investment for some homeowners.

Overall, American Home Shield can be a worthwhile investment for homeowners who want to protect themselves from unexpected expenses due to appliance and system breakdowns.

While some customers have reported negative experiences, it is important to evaluate the company’s services and determine if they are worth the investment.

Customers should carefully review the plans and fees before signing up for a home warranty plan to determine if it is the best option for their needs and budget.

Legal Aspects

American Home Shield has been the subject of numerous legal actions and complaints filed against the company. The Better Business Bureau (BBB) has received over 26,000 complaints about American Home Shield in the past three years alone.

These complaints primarily stem from denied claims, unsatisfactory repairs, and unfair practices.

Despite the high volume of complaints, there are relatively few lawsuits against American Home Shield.

This may be due in part to the company’s use of forced arbitration clauses in its contracts, which prevent customers from suing the company in court. Instead, disputes must be resolved through private arbitration, which can be costly and time-consuming.

Some states have taken action against American Home Shield. In 2019, the state of Washington fined the company $1.9 million for violating the state’s consumer protection laws.

The state alleged that American Home Shield had engaged in deceptive marketing practices and had failed to honor its warranty commitments.

In addition to legal action by states, there have been several class-action lawsuits filed against American Home Shield. These lawsuits allege that the company engaged in unfair and deceptive practices, including denying valid claims and charging excessive fees.

It is important for consumers to carefully review their contracts with American Home Shield and understand their rights and options in the event of a dispute.

Customers who believe they have been treated unfairly by the company may wish to file a complaint with their state’s attorney general or consumer protection agency.

American Shield Better Business Bureau Ratings

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When it comes to assessing the credibility of a company, the Better Business Bureau (BBB) is a reliable source. The BBB evaluates companies based on various factors such as customer complaints, transparency, and ethical business practices.

American Home Shield has been accredited by the BBB since 1997 and holds an A+ rating, which is the highest rating possible.

This rating signifies that the company has a good track record of addressing customer complaints, providing transparent information, and adhering to ethical business practices.

However, it is important to note that American Home Shield has received numerous complaints from customers over the years. As of November 2023, the company has 26,000 complaints filed against it with the BBB. These complaints range from issues with service quality to delays in claim processing.

Despite the high number of complaints, it is worth noting that American Home Shield has resolved most of them to the satisfaction of the customers. In fact, the BBB reports that the company has resolved 91% of the complaints filed against it.

Overall, while American Home Shield has a high BBB rating, it is important for customers to do their due diligence before signing up for any of the company’s plans. This includes reading the terms and conditions carefully, understanding the coverage limitations, and researching customer reviews.

Final Verdict

After conducting thorough research and analysis, it is clear that American Home Shield is a polarizing company. While some customers have had positive experiences with the company’s home warranty plans, others have had negative experiences, ranging from poor customer service to denied claims.

One major issue with American Home Shield is its service call fees, which can range from $75 to $125 per visit.

These fees can quickly add up, especially if multiple visits are required for a single repair. Additionally, some customers have reported that the company’s contractors are slow to respond and often do not fix the problem correctly the first time.

On the other hand, American Home Shield does offer a wide range of coverage options, including plans for appliances, systems, and a combination of both. The company also has a large network of contractors and technicians, which can be helpful in finding someone to perform repairs quickly.

Ultimately, whether or not American Home Shield is a ripoff will depend on individual experiences and expectations.

Customers who prioritize comprehensive coverage and are willing to pay service call fees may find the company’s plans to be a good value. However, those who have had negative experiences with the company may want to consider alternative home warranty providers.