One of the most common questions circulating online is, “Are home warranties a scam?” While some skepticism stems from misunderstandings about coverage, others point to real incidents of home warranty scams that tarnish the industry’s reputation.
We gathered some of the more common myths about home warranties, especially from people who think home warranties are scams, and set the facts straight:
10 common myths about home warranties
1. 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.
2. 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.
3. 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.
American Home Shield Pros are the best of the best, and regular performance surveys ensure that they consistently provide a high level of customer service and technical expertise. That’s why we’ve been named the home warranty company with the Best Technicians in 2024 by ConsumerAffairs awards. We pride ourselves on a high level of technical excellence, and our 30-day workmanship guarantee ensures that if your problem is not fixed, or the same problem starts again within 30 days, we will send a Pro back out for free to repair the issue.
4. Myth: Home warranties cover all systems and appliances
Most home warranties offer a finite level of coverage. Our Silver, Gold, and Platinum plans, for example, all offer different levels. A quick synopsis:
Our Silver plan covers:
- HVAC systems
- Electrical Systems
- Plumbing Systems
This plan also comes with member benefits and up to $5,000 for HVAC systems.
Our Gold plan covers:
- Everything covered in the silver plan
- Kitchen Appliances
- Laundry Appliances
Like the Silver plan, our Gold plan comes with member benefits and up to $5,000 for HVAC systems—but it also includes up to $2,000 per appliance for repair or replacement.
Our Platinum plan covers everything listed in the Gold plan, including member benefits and up to $5,000 for HVAC systems. In addition, our Platinum plan offers:
- Up to $4,000 Per Appliance for Repair or Replacement
- Up to $250 in Correction of Code Violations, Permits, and Modifications
- Up to $1,000 for Roof Repair Leaks
- One FREE HVAC Tune-up*
- Unlimited AC Refrigerant
5. 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.
At American Home Shield®, we believe in keeping things straightforward—no surprises, no guesswork. Our agreements clearly outline what’s covered, under what circumstances, and even any limitations, so you’re never left in the dark. From your HVAC system to your interior plumbing lines, we make it 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.
