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Your HVAC system might break down during peak summer, or your refrigerator could stop working without warning. These repair costs can drain your savings fast. Home warranties protect you from such expenses, and American Home Shield and Choice Home Warranty lead the market in this space.
Choosing between these providers can be tricky because they structure their plans and pricing differently. American Home Shield leverages its decades of experience to provide detailed coverage plans. Choice Home Warranty stands out with budget-friendly prices and clear policies.
We analyzed both providers’ coverage details and compared their service fees to explore their claims processes. Our research covers everything from simple appliance protection to full home system coverage. This helps you understand what each company’s warranty plans include.
This detailed comparison helps new homeowners and those who want to switch providers. You’ll find essential information about American Home Shield and Choice Home Warranty. We looked at their plans, prices, customer service quality and feedback from actual users to help you decide better.
Company Background and Market Presence
Let’s get into the background and market presence of these two major home warranty providers to see how they stack up.
Years of Experience and Industry Standing
American Home Shield (AHS) pioneered the home warranty industry back in 1971. This 50+ year old company has grown to protect more than 2 million members nationwide. Their track record speaks volumes – they’ve paid out over $4 billion in home warranty claims just in the last seven years.
Choice Home Warranty (CHW) entered the market in 2008. The company has grown by a lot since then and now stands as a major player in the home warranty space.
State Availability and Service Areas
These companies serve slightly different areas:
- American Home Shield operates in 49 states, all but one – Alaska
- Choice Home Warranty serves 48 states, staying out of California and Washington
Financial Stability and Legal History
The financial health and legal standing of these companies tell different stories. American Home Shield holds a B rating with the Better Business Bureau. Their network includes 16,000 independent contractor firms and 60,000 technicians across the country.
Choice Home Warranty’s legal past raises some red flags. The Arizona Attorney General’s Office filed a civil lawsuit against them in 2019. The lawsuit claimed they used misleading advertising and made false promises. This wasn’t their first legal challenge – they settled a similar case with the New Jersey Attorney General in 2015, though they didn’t admit any wrongdoing.
American Home Shield operates under Frontdoor, Inc., a NASDAQ-listed company. This public trading status adds more transparency and accountability to their operations.
Plan Options and Coverage Details
Let’s look at both providers’ plan structures to help you understand their coverage options better.
Basic Plan Comparison
The simple coverage options reveal distinct approaches from both companies. Choice Home Warranty keeps it straightforward with two plans: Basic Plan and Total Plan. Their Basic Plan protects 14 essential systems and appliances. All but one of these appliances get coverage – the refrigerator stays out.
American Home Shield takes a different path with their first-tier plan. Their ShieldSilver plan puts all its focus on home systems. You’ll get protection for 14 major systems like HVAC, electrical, and plumbing.
Premium Plan Features
Premium offerings from these companies show clear differences in coverage depth. Choice Home Warranty’s Total Plan builds on their Basic Plan by adding air conditioning, refrigerator, washer, and dryer.
American Home Shield steps up their game with premium options:
- ShieldGold protects 23 systems and appliances with coverage up to $2,000 per appliance
- ShieldPlatinum stands as their most detailed plan with $4,000 coverage per item plus extras like roof leak repair and free HVAC tune-ups
Add-on Coverage Options
Both providers give you extra coverage choices at different price points. American Home Shield’s add-on pricing stays competitive:
- Pool and spa protection costs $159.96 yearly
- Septic pump coverage runs $30.00 per year
- Well pump protection is $84.96 annually
Choice Home Warranty’s add-on rates cost a bit more. Pool and spa coverage reaches $180.00 per year while well pump protection costs $100.00 annually.
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American Home Shield’s combo plan has several items that you won’t find in Choice Home Warranty’s coverage. These extras include doorbells, smoke detectors, instant hot/cold water dispensers, and central vacuum systems.
Cost Analysis and Value Proposition
Our detailed cost and value analysis shows there are major differences between these two warranty providers. Let’s look at the financial aspects that will help you make an informed decision.
Monthly Premium Comparison
Choice Home Warranty provides more budget-friendly options, with plans starting at $36.00 per month. Their monthly premiums range between $39.00 and $48.00. American Home Shield’s plans cost more and start at $50.00 per month, with premiums between $50.00 and $60.00.
The annual costs for combo plans stack up this way:
- Choice Home Warranty: $600.00 (with $60 service fee)
- American Home Shield: $719.88 (with $75 service fee)
Service Fee Structure
Choice Home Warranty keeps things simple with service fees between $60.00 and $85.00 per service call. American Home Shield’s approach gives customers more options – they can pick from $75.00, $100.00, or $125.00. Your monthly premium with American Home Shield decreases when you choose a higher service fee.
Coverage Limits and Exclusions
American Home Shield stands out with generous coverage caps. Their ShieldGold plan covers up to $2,000 per appliance, while the ShieldPlatinum plan goes up to $4,000 per appliance. They also provide a $5,000 coverage limit for HVAC systems.
Choice Home Warranty takes a simpler approach with a $1,500 coverage cap for most covered items. This limit might be lower, but their straightforward approach makes things clear.
Neither company covers cosmetic damage or problems from misuse. Your location and specific plan choice can affect the available coverage.
Claims Process and Customer Experience
The claims process shows big differences in how these providers handle service requests. Let’s get into what happens when you need your warranty.
Filing a Claim: Step-by-Step Comparison
Both companies make it easy to file claims. American Home Shield lets you request service 24/7 through their online portal (MyAccount) and phone support. Choice Home Warranty works the same way with their online portal and around-the-clock phone help.
Here’s what we found about the original claim process:
- American Home Shield: Submit claim → Pay service fee → Contractor assigned → Diagnosis → Repair/replacement
- Choice Home Warranty: File claim → Service fee payment → Technician assignment → Problem assessment → Solution implementation
Response Times and Service Guarantees
These companies handle response times and guarantees differently. Choice Home Warranty promises to start service with a contractor within four hours after you file a claim, and a technician will reach out within 48 hours. They back their work with a 90-day guarantee for parts and 60-day guarantee for labor.
American Home Shield usually responds within 24 hours and gives you a 30-day workmanship guarantee on repairs. They stand out because they’re flexible – if they can’t find a professional quickly enough, they’ll let you pick your own provider outside their network.
Customer Support Accessibility
Looking at support options, American Home Shield gives you several ways to reach them:
- Warranty Services: 1-888-682-1043
- Customer Support: 1-800-858-1922
Both companies take service requests 24/7. But American Home Shield adds extra convenience with their MyAccount portal where you can:
- Track claims history
- Follow up on past requests
- Monitor current service status
The sort of thing I love about American Home Shield is their huge network of 16,000 independent contractor firms and 60,000 technicians, which boosts their ability to deliver service quickly.
Real Customer Insights
Customer experiences tell us a lot about how these warranty providers actually work. Our analysis shows some fascinating patterns in customer satisfaction and service delivery.
Analysis of Customer Reviews
American Home Shield maintains a B rating from the Better Business Bureau (BBB). Choice Home Warranty also holds a B rating with the BBB, though their customers tend to rate them lower than AHS. The biggest problem Choice Home Warranty faces is a civil lawsuit. The Arizona Attorney General’s Office filed it in 2019 about misleading advertising claims.
Common Complaints and Praises
Customer feedback reveals several patterns that keep coming up. American Home Shield customers often praise:
- Quick service starts and skilled technicians
- Clear updates during repairs
- Freedom to pick service providers
- Complete coverage for major systems
AHS customers love their way of handling parts delays. Many say that even with some waiting time, they still feel good about the service. The company gets steady praise for handling replacements, especially when they need to swap out entire units.
Customer Satisfaction Ratings
American Home Shield holds a strong 4.3 out of 5 rating on Consumer Affairs. This score shows how happy customers are with everything from filing claims to finishing repairs. AHS customers often mention that the company reliably covers everything promised in their policies.
You May Also Read: American Home Shield: Guide to Home Warranty Protection
Service delivery numbers tell an interesting story. For instance, AHS customers consistently say good things about their technicians’ quality and professionalism. Customers appreciate how well the company communicates and solves problems, even if parts take time to arrive or repairs need extra days.
Comparison Table
| Feature | American Home Shield | Choice Home Warranty |
|---|---|---|
| Company Background | ||
| Years in Business | Since 1971 (50+ years) | Since 2008 |
| State Coverage | All but one state (Alaska) | 48 states (excludes CA and WA) |
| BBB Rating | B | B |
| Plans & Coverage | ||
| Entry Level Plan | ShieldSilver (14 major systems) | Basic Plan (14 systems & appliances) |
| Premium Plan | ShieldGold & ShieldPlatinum | Total Plan |
| Maximum Coverage per Appliance | Up to $4,000 (Platinum) | $1,500 |
| Costs | ||
| Monthly Premium Range | $50.00 – $60.00 | $39.00 – $48.00 |
| Service Fee Options | $75, $100, or $125 | $60 – $85 |
| Yearly Combo Plan Cost | $719.88 | $600.00 |
| Service Features | ||
| Contractor Network Size | 16,000 firms, 60,000 technicians | Not specified |
| Work Quality Guarantee | 30 days | 90 days parts, 60 days labor |
| Service Response Time | Within 24 hours | Within 48 hours |
| Additional Features | ||
| Customer Portal | Yes (MyAccount) | Yes |
| Claims Submission | 24/7 online and phone | 24/7 online and phone |
| External Contractor Option | Yes, if contractor unavailable | Not mentioned |
FAQs
What are the main differences between American Home Shield and Choice Home Warranty?
American Home Shield offers higher coverage limits (up to $4,000 per appliance) and a larger network of technicians, while Choice Home Warranty typically has lower monthly premiums and a longer workmanship guarantee.
How do the costs compare between these two home warranty providers?
American Home Shield’s monthly premiums range from $50 to $60, with service fees between $75 and $125. Choice Home Warranty’s premiums are generally lower, ranging from $39 to $48 per month, with service fees between $60 and $85.
Which company offers better coverage options?
American Home Shield provides more comprehensive coverage, especially in their premium plans. They cover items like doorbells and smoke detectors that Choice Home Warranty doesn’t include. However, Choice Home Warranty offers solid basic coverage at competitive rates.
How do the claims processes compare between the two companies?
Both companies offer 24/7 claim filing options. American Home Shield typically responds within 24 hours and allows customers to choose their own technician if they can’t secure one quickly. Choice Home Warranty promises to initiate service within four hours of claim filing.
Are there any significant customer satisfaction differences between the two providers?
American Home Shield maintains a strong 4.3 out of 5 rating on Consumer Affairs, with customers praising their reliability and communication. Choice Home Warranty has faced some legal challenges, but some customers appreciate their straightforward coverage terms and competitive pricing.
Conclusion
American Home Shield and Choice Home Warranty each excel at meeting different homeowner needs. American Home Shield delivers higher coverage limits up to $4,000 per appliance with their Platinum plan and maintains a network of 60,000 technicians. Customers can adjust their monthly premiums against out-of-pocket costs through a flexible service fee structure.
Choice Home Warranty works well for cost-conscious homeowners with monthly premiums that start at $39. Their coverage terms are straightforward. The company’s workmanship guarantee runs longer – 90 days for parts and 60 days for labor. However, coverage limits stop at $1,500 per item.
American Home Shield’s 50-year history and large contractor network make them a reliable choice for many homeowners. Choice Home Warranty provides good simple coverage at competitive rates, though they’re newer to the market and have faced some legal issues.
Your specific needs should guide your decision. American Home Shield fits homeowners who want complete coverage with higher limits and service fee options. Choice Home Warranty suits those who need simple protection at lower monthly rates. Both companies provide solid home warranty protection. However, American Home Shield edges ahead with their experience, coverage options, and service network.
Nadeem Akhtar
