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What Does a 1-Year Home Warranty Cover?
AHS Editorial Team
December 11, 2025
A 1-year home warranty helps protect your budget by covering breakdowns in key home systems and appliances during your first year of homeownership. That way, you can get back to enjoying your home—not stressing about it.
Key takeaways
- A 1-year house warranty helps cover repairs to appliances and systems from normal wear and tear.
- AHS plans include tiered coverage options with add-ons for electronics, pools, roof leak repair, and more.
- Members benefit from efficient service, partner offers, and multiple repair support options, making it easier to protect your home and your budget.
What is the purpose of a 1-year home warranty?
A 1-year home warranty when buying a house is built to help home buyers and sellers protect against the unexpected. During your first year in a new home, it’s normal for systems and appliances to break down due to normal wear and tear, and repairs can get expensive fast. That’s where a warranty helps, especially for new homeowners.
American Home Shield offers home warranty plans that help ease the burden of sudden repair or replacement costs for covered items, giving both buyers and sellers confidence during a real estate transaction.
What’s covered?
What does a 1-year home warranty cover? An AHS home warranty can protect parts of up to 28 systems and appliances. These can include:
Covered systems:
Covered appliances:
Add-on options
- Allstate Electronics Protection Plan (covers TVs, gaming consoles, laptops, and more)
- Septic pumps
- Pool and spa equipment
- Guest units
- Roof leak repair
American Home Shield offers tiered plan options to customize your coverage level. That means no matter whether you're looking for basic protection or a plan that stretches from the back pool to the front porch, there’s an option to fit your needs.
|
Feature / Coverage Area |
Shield Essential™ | ShieldPlus™ | Shield Complete™ |
| Major Systems (HVAC, Electrical, Plumbing) | ✓ | ✓ | ✓ |
| Appliance Coverage | ✕ | ✓ Up to $4,000 per item | ✓ Up to $7,000 per item |
| Roof Leak Repairs | ✕ | ✕ | ✓ Up to $1,000 |
| Code Violations, Permits, Modifications | ✕ | ✕ | ✓ Up to $1,000 |
| AC Refrigerant | Limited | Limited | ✓ Unlimited |
| HVAC Tune-up | Offer Available | Offer Available | ✓ 1 free per term |
| Partner Discounts | ✓ | ✓ | ✓ |
| Rekey & Home Services Offers | ✓ | ✓ | ✓ |
| Video Chat with Repair Experts | ✕ | ✓ | ✓ |
What’s not covered?
It’s important to know what a 1-year home warranty when buying a house doesn’t cover, so you know what to expect.
Unlike homeowners insurance, which can cover items that break down due to natural disasters or fire damage, a home warranty covers items that break down due to normal wear and tear. They each protect your home in different ways, but a home warranty can be especially helpful for the breakdowns that happen most often. Research shows that you’re 25x more likely to use a home warranty than your homeowners insurance in a year.
Another home warranty term you may be familiar with is a home builders warranty. These cover the major structural elements of a new home from physical damage. A structural issue wouldn’t be considered normal wear and tear under your home warranty, and thus wouldn’t be covered.
The following issues are also not covered under an AHS home warranty:
- Cosmetic damage (like scratches or paint chips)
- Breakdowns due to detectable pre-existing conditions or neglect
- Damage due to children, pets, or pests
- Secondary damage to your home (like flooding) that may occur as the result of a system failure
Fine print of home warranties
Home warranties provide valuable protection. But with the strongest protection comes also coverage limits and service fees. Here’s what to know:
- Each item has a maximum coverage amount. For example, the covered item limit for air conditioner repair and replacement is $5,000 in most scenarios.
- Service calls often require a fee. With AHS, you choose your fee when you select your plan.
- Certain conditions, such as improper installation or code violations, may affect eligibility.
Be sure to read your plan agreement carefully to understand what’s included
How does a 1-year home warranty work?
The process of using your AHS home warranty is simple:
1
2
Get assigned a Pro:
A trusted repair Pro will contact you to set up an appointment.
3
Diagnosis and solution:
The Pro will assess the issue and recommend next steps.
4
Repair or replacement:
if covered, AHS will fix the item up to your plan's coverage limit.
Plus, AHS offers a 30-day workmanship guarantee, which means if you have an issue regarding your completed repair or replacement within 30-days of completion, we'll send a Pro back out for free.
Benefits of a 1-year home warranty when buying a house
The process of using your AHS warranty is simple:
For Buyers
No matter how thorough your inspections, buying a home is bound to come with surprises. And once you sign the paperwork and have the keys to your new home in hand, anything that goes wrong is now your problem. A home warranty is here to help safeguard you from surprises. With a plan in place, you're protected from unexpected covered breakdowns that could drain your budget.
For Sellers
A home warranty during the listing period can make your home more appealing to potential buyers, who know that there’s a plan in place if an unexpected covered breakdown happens. Selling a home is stressful enough as it is. Having a home warranty reduces stress if covered repairs are needed before closing.
AHS membership benefits and perks
We’ve explored how helpful a 1-year home warranty can be during the process of buying and selling your home. As you explore your options, know that there’s no home warranty plan better designed for your complete protection and peace of mind. Beyond coverage for your home’s major systems and appliances, you’ll also enjoy:
- Video chat consultations in real-time with Experts via the American Home Shield app with select plans**
- Access to the New HVAC Program, which can bring you serious savings*** when it comes time to replace your cooling system
- Discounts on maintenance services and other exclusive partner offers
Start protecting your budget today with an American Home Shield 1-year comprehensive home warranty, so you can get back to worrying less, and focus on settling into your new home with confidence.
*See the plan agreement for coverage details, including service fees, limitations and exclusions. Coverage limits and charges for non-covered items may apply.
Warranty your way.
Having a plan when things go wrong feels pretty good. Learn more about ours at the link below.
AHS assumes no responsibility, and specifically disclaims all liability, for your use of any and all information contained herein.
Sources:
1 Calculated based on the 2025 AHS claims data compared to insurance claims from Insurance Information Institute.
* Member Benefits: Services offered are an added benefit to AHS members and may be offered by a third party. You will pay the amount shown in conjunction with the offer when you book those services in the AHS app or online via MyAccount. Video chat feature available at no cost and with select plans during normal business hours.
** See the plan agreement for coverage details, including service fees, limitations and exclusions. Coverage limits and charges for non-covered items may apply. Video chat available as a member benefit with select AHS plans. Video chat hours are from 8AM-9PM CST, 7 days/week. Subject to change.
*** Pricing and amount of savings will vary based on location and equipment availability. Not available in all areas.
Frequently Asked Questions
The price of a home warranty depends on a few factors, such as the level of coverage and add-ons you need for your home, the size of your home, and the Service Fee amount you select. At American Home Shield, our Shield Essential plan covers the essentials at an affordable price. See the Plans page for more information.
Yes. Home warranties are especially worth it during your first year of homeownership, when you're still learning your home's quirks. A home warranty brings peace of mind when covered breakdowns occur.
With more than 50 years of experience, flexible plans, and a trusted network of service Pros, AHS delivers when it comes to when it comes to quality and dependability. From our new video chat feature for select plans to our ever-shifting member offers, AHS makes submitting claims and getting your covered items fixed easier and more pain free than ever.
