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Home Warranty

Frequently Asked Questions

  1. Home Warranty
  2. Home Warranty vs Homeowner Insurance
Woman holding laundry basket while son plays video game
Woman holding laundry basket while son plays video game

Home Warranty vs. Homeowners Insurance

Doesn't homeowners insurance cover breakdowns? Not necessarily. Homeowners insurance covers what might happen to your home, like damage from flooding or storms. Home warranties cover what will inevitably happen to your home, like system and appliance breakdowns due to normal wear and tear.

Home warranty plans cover what WILL happen

  • Broken A/C
  • Clogged pipes
  • Leaky water heater
  • Overflowing toilet


Homeowners insurance covers what MIGHT happen

  • Theft
  • Fire damage
  • Storm damage
  • Floods
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This is coverage you’ll use

You’re 25 times* more likely to use a home warranty than your homeowners insurance. Why? Because unlike insurance, we cover the things you use every day and can’t do without. To learn more, visit our Home Warranty vs Home Insurance blog post.

More About AHS Coverage

*Calculated based on the 2022 AHS claims data compared to insurance claims from Insurance Information Institute.

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couple speaking to repair pro

Complete protection for your home

Home warranty + Homeowners Insurance

Let’s face it: life happens. Many homeowners prefer to supplement their homeowners insurance by also purchasing an American Home Shield home warranty plan to fully protect their homes and wallets.

Thinking about coverage?

Sounds like a plan. Find the warranty that fits you best.


Frequently Asked Questions

Homeowners insurance covers things that might happen like theft, fire and storm damage, and flooding. Home warranty plans cover things that will inevitably happen like heating and AC, electrical, plumbing, and kitchen and laundry appliance breakdowns. A home warranty is a great way to protect your budget and have peace of mind.
  • The interior of your home 
  • The exterior of your home 
  • Personal property in case of theft, loss, or damage 
  • General liability that can arise when a person is injured while on your property

Generally, a home warranty plan offers coverage for the parts and components of your kitchen appliances, washer and dryer, and major home systems such as your heating and AC, electrical and plumbing systems. Coverage also includes repairing or replacing covered items, subject to the limitations and exclusions in your plan agreement.

Home warranties typically have a 12-month plan agreement term and can be purchased for a low monthly cost. A home warranty is purely elective, but it’s a smart purchase. Homeowners insurance is typically mandatory in order to obtain a mortgage loan and is renewed annually.

Home warranty coverage can potentially save you hundreds or even thousands of dollars, and it helps you avoid the headache of finding a trusted service Pro to make the repairs.
For American Home Shield members, a home warranty includes coverage of major components of up to 23 important appliances and home systems, home maintenance services like discounted seasonal HVAC tune-ups, and optional add-ons to customize your coverage.
All FAQs
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Don't worry. Be warranty.

Have a plan for your home when things don't go according to plan

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