American Home Shield, the largest home warranty provider in the US, employs terms heavily weighted in the company's favor. Extensive coverage exclusions, mandatory arbitration, and vague pre-existing condition language give AHS broad discretion to deny claims while limiting consumer remedies.
The exclusions list spans multiple pages and covers common failure scenarios. Items failing due to "lack of maintenance," "improper installation," or "manufacturer defects" are excluded—categories that can apply to almost any repair situation.
All disputes must go through binding arbitration, with AHS selecting the arbitration provider. Class action rights are waived. This eliminates your ability to sue or join others in legal action against the company.
Items with "pre-existing conditions" are not covered, but the definition is broad and determined by AHS's contractors. Since most home systems show some wear, this provides grounds to deny virtually any claim.
AHS assigns contractors and you cannot choose your own without forfeiting coverage. Their contractors are paid flat rates, incentivizing quick fixes over proper repairs. Going outside the network voids claims.
Many items have per-item or per-claim limits that may not cover actual repair costs. Air conditioning systems, for example, may have caps that cover only a fraction of replacement costs.
AHS can modify terms at any time with notice. Continued use of the service constitutes acceptance of new terms, even if modifications reduce coverage mid-contract.
Claims can be filed online or by phone at any time, providing convenience when home systems fail unexpectedly.
Large contractor network provides service availability across all 50 states, reducing wait times for service calls.