Home Warranty Myths

Myth: Home warranties are a scam
Home warranties themselves are not scams. A home warranty is a legitimate and affordable way to protect your most important home systems and appliances, such as your HVAC, electrical systems, plumbing, kitchen appliances, and laundry appliances. When a covered system or appliance fails, a home warranty can help cover the cost of repairs or replacements. Some plans even offer perks like free annual maintenance.
However, scams posing as home warranty offers do exist. For example, a common home warranty scam involves letters being mailed to your house claiming to be from your mortgage company, warning you about an “expiring warranty” that doesn’t actually exist. To avoid falling for these schemes:
Ask for references or testimonials from real clients who can speak to their experience.
Look for clear terms in the contract and avoid offers that seem too good to be true.
Verify the sender of any unexpected letters or calls by contacting your mortgage provider directly.
With a little research, you can confidently distinguish between reliable home warranty providers and potential home warranty scams.
Myth: Your home warranty provider will dispute your claim—no matter what
This is false. At American Home Shield®, we’re focused on protecting your home systems, appliances, and the comfort of you and your family. We’ve paid out more than $4 billion in home warranty claims over the last 7 years, and that number continues to grow as we help homeowners like you.
As long as your issue is covered under the details of your warranty plan agreement, we’ll send an American Home Shield-approved and -trusted Pro to your home to evaluate whether a repair or replacement is right for you.
Myth: Your home warranty will insist on using low-quality parts and bad contractors
Your home warranty keeps your home systems and appliances running smoothly all year long—and that starts with hiring knowledgable and reputable home service pros.
Look for a high level of technical excellence, and workmanship guarantees ensuring that if your problem is not fixed, or the same problem starts again, a pro will be sent back out for free to repair the issue.
Myth: Home warranties cover all systems and appliances
Most home warranties offer a finite level of coverage. Look for plans that offer possible coverage for:
HVAC systems
Electrical Systems
Plumbing Systems
Kitchen Appliances
Laundry Appliances
Look for coverage for repair or replacement with realistic cost allowance.
Myth: Home warranties don’t actually cover anything
Concerns about inadequate coverage often lead homeowners to ask, “Are home warranties a scam?” The truth is, home warranties cover many of your home’s most essential systems and appliances. But coverage plans can feel overwhelming at first glance, and there’s nothing worse than not getting the coverage you expected. That’s why taking the time to carefully read and understand your contract is key to knowing exactly what’s covered and how to get the most out of your home warranty.
From your HVAC system to your interior plumbing lines, make sure it is clear exactly how you’re protected.
Take a moment to assess your home’s unique needs. Struggling with a finicky garbage disposal or mindful of your aging clothes washer? When you choose a plan that fits your home and lifestyle, you maximize your coverage’s value.
Breakdowns are inevitable. Big repair bills don't have to be.
Learn how a home warranty helps cover unexpected system and appliance failures.
Myth: Home insurance and home warranties are the same thing
People often confuse home insurance and home warranties, but these two products are actually quite different. 
Here are the biggest differences:
Home Insurance: This covers your home and belongings from fires, storms, theft, and vandalism. 
Home Warranty: This covers the repair or replacement of major systems or appliances because of normal wear and tear, no matter their age.
Because of these differences, a home warranty is generally much more affordable than home insurance. You are also 25 times more likely to use your home warranty than your homeowner’s insurance.
Covered by Homeowners Insurance:
Fire, wind, and hail damage
Theft of personal property
Liability protection
Additional living expenses (ALE)
Covered by a Home Warranty:
HVAC system, plumbing and electrical systems
Major appliance (fridge, oven, washer, etc)
Appliance and system failures due to normal wear
Expert advice and services for repairs
Myth: I already have home insurance, so a home warranty won’t benefit me
Even if you already have home insurance, a home warranty can fill critical gaps in coverage. Home insurance is designed to protect your home and belongings from unexpected events like fires, storms, or theft. However, it doesn’t cover the repair or replacement of appliances or systems that fail due to everyday use.
A home warranty complements your home insurance by stepping in when essential systems like your HVAC, plumbing, or electrical break down from normal wear and tear—costs that could otherwise come straight out of your pocket. Together, they provide a more comprehensive safety net for your home.
Myth: Filing a claim is difficult
Filing a claim should be as easy as requesting a service online.
Simply select the covered item that needs service, detail the issues and symptoms you’re experiencing, and pay your service fee. 
Myth: Home warranties are expensive
Most home warranties actually cost somewhere between $500 and $1,000 per year for homeowners (and sometimes even less)! 
Depending on your plan type, you may also pay a flat service fee when a technician comes to your home to fix a problem—but you’ll generally save money by never needing to pay the full cost for the replacement of an appliance or home system.
Myth: A home warranty only covers new systems and appliances
Make sure your home warranty covers repairs and replacements regardless of the age of your system. That can make a home warranty especially enticing if you have an old refrigerator or water heater; if you’re worried about a replacement, a home warranty can help offset those costs!
Not all warranties are created equal
Are home warranties a scam? No, but the truth is that not all providers offer the same level of coverage, transparency, and customer care. Choosing the right home warranty can make a world of difference in how well your home is protected—and how stress-free your experience will be when something goes wrong.