Frequently Asked Questions About Home Warranties

Article Provided by,
Bill Hurlbett, Sr. Account Representative
American Home Shield

What is a home warranty?
A home warranty is a service contract that covers the repair or replacement of many of the most frequently occurring breakdowns of home systems and appliances.

Why do your clients need a home warranty?
For sellers, it can help their home sell faster. Home warranties offer added value to listings by increasing buyer confidence, helping the home stand-out from the rest. For buyers, home warranties help protect their new investment and help them avoid high repair and replacement costs on covered items.
What is a Trade Service Call Fee?
A Trade Service Call Fee is a small expense to the customer which is due each time a contractor comes to the home to diagnose a problem. The amount of your Trade Service Call Fee can be found on the back of the application. Additionally, the service fee amount may vary depending upon the number of trade service technicians requested for service.
Is everything in my home covered by the AHS Home Warranty?
No. While not everything is covered, we do offer coverage for many of the most frequently occurring breakdowns of home system components and appliances. Please review sample contract for specific covered items, terms and conditions, limitations and exclusions.
What if I have an appliance that just can’t be fixed?
If AHS determines your covered system component or appliance can’t be repaired by a service contractor, it will be replaced.
What out-of-pocket expenses will I have?
For each service request, you will pay a Trade Service Call Fee to each contractor of a different trade (plumber, electrician, etc.) who visits your home to diagnose a problem or perform service. There may be additional costs associated with the repair or replacement of covered items. Details will be included in your contract.
I'm selling my home. Why would I want a Home Warranty?
A Home Warranty helps give buyers additional confidence in the real estate transaction—they’ll know that Warranty Company stands behind the covered systems or appliances in the house. An added benefit is that it can also protect your home while it’s on the market which can help you avoid investing more money into a home you’re trying to sell.
My home systems and appliances are old. Does that matter?
No. The age of a home or its system components and appliances are not important. The covered items must be in good working condition and properly maintained at the time coverage is purchased.
Can a Home Warranty help resolve issues found on a Home Inspection?
Yes, many times a home warranty can help with issues found in a home inspection. If a covered system or appliance is found to be malfunctioning due to normal wear and tear a covered item may have coverage subject to terms and conditions of contract.
Is it important to ask for a home warranty when purchase a home?
Yes, especially in today’s economy. Many homes are in foreclosure or bank owned. A Home Warranty would be an excellent tool to provide budget protection for new home buyers.