What is a Home Warranty?

In some situations, a seller will purchase a real estate home warranty plan for the buyer of their home or in some cases, real estate professionals will gift a year of home warranty plan coverage to their clients. However, most homeowners typically purchase their own home warranty plan in order to ensure the systems and appliances they use every day are covered and their budgets are protected from expensive repair costs. 

Home warranty coverage describes the level of protection that your home systems and appliances will receive when you engage in a home warranty agreement. There are different levels of home warranty coverage available, depending on a variety of factors – how many appliances you have, the state of those appliances, and your personal household budget can all play a role in the level of home warranty coverage that you choose. 

Investing in even a basic level of home warranty coverage will help to protect you from costly out-of-pocket expenses when your most-used appliances and home systems inevitably break down. An AHS home warranty is a fantastic safety net that will take the financial strain away from a stressful situation — so whether you budget for an entry-level coverage or a comprehensive plan, every bit helps to protect your home. 

You'll pay a  Service Fee for each different kind of trade Pro (plumber, electrician, etc.) that comes to your home to provide service. The amount, plus sales tax (where applicable), is determined based on the type of plan you select to purchase. 

There are several things to consider when renewing your home warranty: the age of your house, appliances, electrical wiring, and HVAC unit and much more, such as your budget for unexpected breakdowns and repairs. Once your annual contract term is up for renewal, you can easily renew your home warranty and continue to recieve the budget protection and peace of mind that an American Home Shield® home warranty provides. 

An American Home Shield^® Real Estate Home Warranty is a one-year service agreement that covers the repair or replacement of many major home system components and appliances. It is available to sellers (limited listing coverage) and buyers typically via their real estate agent in the context of a real estate transaction only.

We also offer home warranty plans for customers who are not in a real estate transaction. See our Pricing and Plans.

Once you purchase a home warranty plan, there is a 30-day waiting period before your plan is active, which gives you a grace period during which you can add or change coverage.