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Is a Home Warranty Really Necessary?

This quick two-minute read sheds some light on the benefits of having one

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There are many joys to owning your home – from hosting holiday gatherings to backyard pool parties. But homeownership also comes with unexpected disruptions. Your fridge suddenly goes on the fritz, or water pipes start leaking out of the blue. Get answers to these commonly asked questions to learn how you can protect your monthly budget from costly home maintenance expenses. 

Q: Let’s start with the basics. What exactly is a home warranty? 

A. A warranty for your home is an annual, renewable service contract. It not only helps with costs, but also provides expert service to troubleshoot, repair, and replace the parts of many critical home systems – like heating, cooling, and plumbing – as well as major appliances. A good home warranty plan provides peace of mind. It allows you to sleep when your fridge starts making strange noises at night and helps you keep your cool when the A/C stops working in the summer. When household items break down because of normal wear and tear, as they inevitably do, a home warranty plan steps in to keep your home running smoothly. 

Q: I already have home insurance. Why do I need a home warranty plan? 

A. A home warranty plan covers the stuff home insurance doesn’t – appliances and household systems that stop working because of everyday wear and tear. That means your budget won’t melt down when your freezer does. And you won’t be throwing money down the drain when your plumbing gets clogged. In fact, homeowners are 28 times more likely to use a home warranty plan than their home insurance1. American Home Shield offers flexible plans that fit your home, your needs, and your budget to keep your home protected and up and running. 

Q: Sure, my sister got a home warranty plan for her new city loft, but I’ve lived in my colonial for decades. What home service plan would cover my creaky old appliances? 

A. American Home Shield will. They founded the home service plan industry more than 50 years ago to empower every homeowner to feel confident and in control of their home. An American Home Shield® home warranty helps cover the cost when parts of your home systems and appliances wear out – like your air conditioner, dishwasher, or plumbing – regardless of age. No maintenance records or inspections are required. Whether you live in an urban high-rise or a converted farmhouse in the country, as a homeowner, you expect the unexpected. American Home Shield helps minimize these disruptions with plans that cover parts of up to 23 home appliances and systems. 

Q: Surprise me. What is something I don’t know about a home warranty? 

A. Okay, how about this? If American Home Shield can’t repair a covered item, they’ll replace it, subject to the limitations and exclusions of your contract. And they’ll haul away the old item at no charge. You simply pay your monthly plan cost, plus a Service Fee ($100-$125) at the time of the repair. They also cover multiple items – like that second fridge in the basement or your two AC units – without added costs. Plus, an American Home Shield service plan goes beyond a traditional home warranty. Exclusive member perks include special pricing on home maintenance services, new appliances, and various home services, from tech installation and setup to preseason HVAC tune-ups and more. 

As a homeowner, you can’t put a price on the peace of mind that comes from knowing you’re prepared for and protected from the high cost of inevitable household breakdowns. An American Home Shield home warranty offers that serenity with a flexible plan that fits your budget and your needs. What’s more, as an AARP member, your exclusive member benefit means you save $136* off any American Home Shield home warranty plan. Get help with covered repair costs. Enjoy a simple service request process. And have access to a network of thousands of contractors.    

Protect your budget. Get a free home warranty quote from American Home Shield.  

1Calculated based on AHS claims data compared to insurance claims from Insurance Information Institute. 

Terms apply.  


See the plan contract for coverage details, including service fees, limitations, and exclusions. Charges for non-covered items may apply. 

New Jersey residents: The product being offered is a service contract and is separate and distinct from any product or service warranty which may be provided by the home builder or manufacturer. 

*Service fees, limitations, and exclusions apply. Available to new American Home Shield members only; discount cannot be applied to previous purchases. Discount not valid in Arkansas, New York City, or Hawaii. Not valid in conjunction with a real estate transaction or renewal. Discount only available for single-family homes under 5,000 sq. ft. (includes condos and townhouses). AARP member benefits are provided by third parties, not by AARP or its affiliates. Providers pay royalty fees to AARP for the use of its intellectual property. These fees are used for the general purposes of AARP. Some provider offers are subject to change and may have restrictions. Please contact the provider, American Home Shield, directly for details. 

AARP and its affiliates are not insurers. Certain AARP Member Benefits are provided by third parties, not by AARP or its affiliates. Providers pay royalty fees to AARP for the use of its intellectual property. These fees are used for the general purposes of AARP. Some provider offers are subject to change and may have restrictions. Please contact the provider directly for details.