I just stumbled across this site researching another miserable company entirely, but when I saw American Home Shield's ugly, evil, wretched name, I just HAD to tell this story.

I didn't purchase AHS's crappy home warranty. The sellers of my home purchased it as part of the sales agreement. We were first time home buyers, what did we know about home warranties? What could it hurt, we thought? And HA, we sure found out, and have managed to avoid bankruptcy by the hairs on our chinny chin chins.

AHS would, according to the policy we were given upon closing, pay for all repairs for air conditioning, electric, heating, cooktop/stove, dishwasher, disposal, plumbing, compactor, ductwork, and water heater for the period of one calendar year from the date of closing. Sounds good, doesn't it?

They would only charge us the lesser of $50 or the serviceperson's call fee. What a deal, we thought!

We called AHS when we had a giant leak at our kitchen sink. We paid the $50 service fee right upfront. And then, the AHS-sanctioned plumber informed us that faucets weren't covered under the AHS warranty. I looked over the policy, and sure enough, in teeny tiny little miniscule fine print on a page literally covered in fine print, faucets were not covered. Okay, my bad. (I guess I was supposed to pay for a private plumber to diagnose the condition and make sure it was covered under AHS before I actually called AHS. Like, duh.)

We called AHS a for the second time in July of 2002 (with four months left on our warranty) when our central air conditioner gave up the ghost. They sent out a serviceman to diagnose the problem, and he told me the condenser was shot and recommended replacement of the unit, which would run about $2000. No problem, because I was using a magnifying glass to read the AHS policy this time and it said as plain as daylight that air conditioning was fully covered as long as it wasn't a wall/window unit.

The service technician called AHS and gave them the diagnosis. AHS no likey. AHS doesn't want to spend $2000 to repair a legally covered expense when the warranty only cost $450. How can they make money that way? So AHS sent out a different technician who made the exact same diagnosis (and charged us the $50 service fee AGAIN), so AHS agreed the unit needed to be replaced. End of story, right?

Oh, heck no.

After 1 month and no action, I called AHS, sweating like a goat in the August heat with no relief but a little box fan and demanded to know just when the heck they were planning on doing something about my air conditioning. And they tell me they're going to mail a check as soon as it's authorized by some big hoohah. Whatever.

September 2002. No check for the repair. I call again and I'm informed that the check-cutting process takes 60 days from the date the file is opened. I say, it's been 60 days, where's the check? They say, the file wasn't opened until the second technician confirmed the need of replacement of the unit. GAH!

October 2002. The air is feeling a bit nippy with the arrival of fall and I'm making my 2-year-old daughter wear two sweaters so she doesn't get chilled in the cold. No check for the repair. I call yet again. It's been more than 60 days since the file was opened. Winter is coming and I have no heat, people! Where is my @%&$ check?! There was an error in processing the claim, and the check will be cut at the beginning of the next cycle. And when is that, I ask, frustration pouring through the phone line in waves. At the beginning of November. Just ducky!

November 2002. Winter is here early this year (already three snow storms) and I'm freezing. I sleep under three blankets. My daughter sleeps in my bed so we can share body heat. I wear my winter coat around the house. WHERE THE HECK IS MY CHECK!! It's almost finished "processing". I make ugly threats about my lawyer making ugly phone calls and bark at the hapless idiot on the other end of the phone.

December 2002. I'm running the emergency heat at full blast and the house is barely warm. Finally, FIVE MONTHS after I first called these wahoos, I get the repair check on December 13, 2002. It's only for $900.06.

Huh? The new unit is going to cost $2000. Why am I only getting $900.06? And where the heck am I going to find the other $1099.94?!

I call AHS and they inform me that the warranty only covers expenses up to $1500. I say, where is that mentioned in MY paperwork?! And anyway, if $1500 is covered, why am I only getting $900.06? Well, the $1500 is meant to cover TWO air-conditioning units. And I ask in complete incredulity, how many private homes do you know of that need TWO air-conditioning units? Run-around, talk to this supervisor who is out to lunch (for the next six months), write this letter that conveniently gets hijacked to Mars and never reaches AHS, leave this voice mail that gets sucked into the Black Void, and lordy, they're giving me less than half of what the new unit will cost. (That's not even counting installation, folks!)

Since I was running my emergency heat 24/7 so my toddler wouldn't freeze the next time she wet her diaper, our heating bill was outlandish. $300 for the month of November, $330 for the month of December, $290 for January (I turned the heat down to 60 despite the fact that the average daily temperature was 17 outside in order to trim the monster heating bills), $250 for February, $200 for March. Our heating bills, based on the previous winter, should have been $400 for all five of those months and was built into our budget.

Instead, we ended up having to pay $1370, over TRIPLE what it should have cost. We ended up having to use the check we got from AHS to pay for the heating bills that AHS's failure to fix our heat pump/air conditioning unit as warrantied caused us. Even that $900.06 left us short, and we got behind on the credit cards, who started getting surly and raising interest rates and tacking on penalties we could ill afford, and in December of 2003, we found ourselves mired in debt that was only worsened by the giant heating bills for the winter of 2003/2004 (since we had to pay interest and penalties on the credit cards and didn't have ten cents to get a new heat pump).

By Spring 2004 the situation became desperate as all the accrued bills started making us late on the mortgage payments. It's taken us two very, VERY long hard years since then (and an absolute horror of declaring bankruptcy that helped us to sell practically everything we own of value) to get our financial health back. We couldn't even afford a lawyer to sue these miserable idiots.

Thank you, AHS. I have fed a family of three on $30 a week for two years. (We eat lots of pasta and hamburger and I only eat one meal a day.) I wear underwear with 2-inch holes in them because I can't afford to go to Wal-mart and spend $1.00 on new ones. My shoes have a giant crack across the sole that lets rainwater leak in, but I can't spare the $7.00 to get a new pair at KMart. I'm driving a sixteen year old car that makes threatening noises at me everytime I pull it out of the driveway, but I dare not go into debt to get a new car. (Like I'd even qualify with my shredded credit!)

Thanks so much for your outright corruption. You've cost my husband and I our credit ratings (which were STELLAR until I called you guys). I've been frozen for six months and dying of heat exhaustion for the other six for three years. I had to sell my wedding ring to pay the electric bill last winter.

It was only $1000 to you. To me? It was my life.

Nana

Lancaster, Pennsylvania
U.S.A.

Click here to read other Rip Off Reports on American Home Shield

Click Here to read other Ripoff Reports on American Home Shield

10 Updates & Rebuttals

Becky

Austin,
Texas,
U.S.A.

Home Warranties as an aid to a maintenance plan

#2Consumer Suggestion

Fri, April 14, 2006

I had my refrigerator replaced by AHS and was overall satisfied although it took longer than I would have liked - 3 weeks including having to re-order the fridge because the first one came with a dented door. I was offered an option to either have the unit replaced or receive a check. The replacement was a much nicer model than I could find to get with a check, so I chose replacement. If I had it to do over, I think I'd have gone with the check so I could get a unit delivered faster. It was a real hassle storing food all that time and keeping it in a cooler meant it didn't last as long, so I probably lost as much in groceries as I saved in getting a replacement unit. There are plenty of companies who will give delayed payment terms or no or low interest. I don't think the company's service is as good as they claim, but it could still be worth it if you think of them as part of a maintenance plan. I'd suggest having some money or a credit card handy to pay for items if they give you an option to receive a check. Then again, it may be better to simply put the monthly fee a bit extra in a savings account set aside for maintenance.

Lori

Kalkaska,
Michigan,
U.S.A.

Nick, Thank You....

#3Consumer Comment

Fri, April 07, 2006

I don't feel so bad now. Living in Northern Michigan my heat bills exceed $1600 for the winter months (Dec-March). This doesn't include the 15 face cord of wood that we purchase to supplement, nor the $250 elec bill that we get. And all of this to keep the house at a toasty 65 degrees! There have been many people in this area that have had to turn down their heat to 55 degrees, and the heating bill STILL exceeded $500-$600 this winter (major topic of conversation in the local rag). Add to the heating bill the snow plow that needed repairs, the refrigerator and washer that had to be replaced.... No complaints, just Murphy's Law! LOL I have to concede that my main problem with this report is that the poster seems to have put herself, and her family in the position that they were in because she wasn't prepared for the reality's of home ownership. Figuring that her out of pocket cost was $1000, spread out over a few months, it seems ludicrous to be without a primary heat source for three years. Even if she couldn't afford that heat source, there are many agencies out there that are willing to help in these situations (in our area, we have a local housing commission that gives 0% interest loans over a 5 year period to assist in fixing/replacing/upgrading furnaces, roofs, wells, etc). I've referred many families to these programs over the past several years in an effort to relieve their financial stress and get them back on their feet. There are additional programs available at no cost (often a second choice for those that want to be self sufficient) to assist those that need help. Since there are often situations where families are on the financial down hill, these programs assist them in getting back on their feet so that they don't fall behind on everything because of a major event. I have often had to explain that you can't allow pride to be the catalyst that blocks you from seeking help, as a little help NOW could avoid a much bigger need for assistance later. OK, I'm done with my little rant. Could you send a little sunshine out our way to help melt the snow?? *wink*

Nick

Hollywood,
California,
U.S.A.

Cheap electricity!

#4Consumer Suggestion

Fri, April 07, 2006

OP said: Our heating bills, based on the previous winter, should have been $400 for all five of those months and was built into our budget. How do you figure your heating bill is $80.00 a month in the dead of winter? I don't even get snow, and my heating bill is never under $125 in my small house during "winter" months. Second, I loathe AHS. However, the recent poster is correct - they don't send you a check, they do the repair themselves. Usually with cheap, aftermarket or discounted "fair replacement" parts, but parts nonetheless. I've paid $50.00 to get my dishwasher serviced, only to be told that I need to turn my hot-water heater higher get my dishes clean. I felt like an idiot, but it worked. That's life. It is interesting, tho, that you didn't originally want an AHS program. Imagine your life without it, having cracked shoes, one meal a day and having to pay full cost instead of the $900 you received?

Lori

Kalkaska,
Michigan,
U.S.A.

I don't get it....

#5Consumer Comment

Fri, April 07, 2006

You said in your original complaint that the central air unit needed to be replaced. How does this affect the furnace? I have central air in our home, and if it goes down, we won't be able to cool the house, but it doesn't affect the furnace. In addition, you said that you called for service in July. When the run around began with AHS, it would seem to me that you would have been looking for other alternatives to repair/replace the furnace in anticipation of winter. I understand that most of us couldn't afford such a costly repair coming out of our pockets all at once, however, there are many places that offer credit terms for furnaces and air conditioning units (often they even include the incentive of no payments for so many months, or reduced interest for so many months etc). In the alternative, putting $200 per month into a savings account for the possibility of AHS dragging this out would have given you the greater majority of the money needed to effect this repair. I think my problem with this is that in putting $200 in the bank for back up during the months of Aug, Sept, Oct, Nov, and Dec would have given you the amount that you needed (paying off the balance when you received the AHS check on 12-13), and the money would have been put to better use than paying the large heat bills. A line of credit for the repair with no payments and or interest for several months would have given you the additional advantage of not having to make payments nearly so large, and could have been spaced out over several months. At this point, you would have had your heat source AND could have gone after AHS to honor their policy. In hindsight, a little bit of planning would have saved you a lot of money, frustration and heartache. Three years is a loooooong time to go without a heat source in your home, not to mention the expense that came with it. I'm not defending AHS (or any other home warranty program for that matter....I've been in the same boat), but you can't lay the blame for your situation 100% at their feet. When you own a home, you accept the reality that things are going to break down that need repairs. Most homeowners don't have someone to fall back on to pay for the repair cost. I own a home, AND have 8 children still living at home. I understand the reality of a budget. I hope that now you've recovered from the financial stress of the past couple of years, you move forward better prepared to handle the possible pitfalls of homeownership.

Gerry

Richmond,
Virginia,
U.S.A.

$1000.00?

#6Consumer Comment

Fri, April 07, 2006

You couldnt get a loan for $1000.00 bucks,with great credit? Sounds like your in a house you cant afford. You better hope nothing else major happens.

David

Sellersburg,
Indiana,
U.S.A.

I call BS

#7Consumer Comment

Thu, April 06, 2006

I have owned 4 different homes over the years, and had AHS warranties on 3 of them... the last one was a different company (Can't remember the name off hand), but NEVER has AHS had to "Mail a check" before any repairs were started... They provide the info to the repair company that they send out, they look at the problem, send their estimate in, and get a purchase order for the amount and do the work... You never see the money that changes hands... They have replaced A/C, a refrigerator, a stove, repaired several plumbing problems and a garbage disposal... If you read your warranty info, they even state that they pay the repair facility direct... Now, they also have several levels of warranty service you can purchase... from only covering a few things in the house, up through "bumper to bumper" coverage... so that could explain the not covering faucets... However, even with the bottom line warranty service you still would never be sent a check and have to pay for the repair yourself...

Nana

Lancaster,
Pennsylvania,
U.S.A.

If I had the money to repair it myself...

#8Consumer Comment

Thu, April 06, 2006

If I had the money to repair it out of my own pocket, believe me, I sure would have done it! By the time AHS got that pitiful check to me, all my extra funds were taken up by the enormous heating bills caused by AHS's failure to honor its warranty. If I could have come up with even the other $1100 to buy the unit myself, I would have done so. I had no savings because we used if for the down payment on the home. And did you just accuse me of child endangerment? I guess you missed the part where I had the emergency heat cranked all the way up for the sake of my child. Nothing means more to me than the safety of my child!!! It is very wrong of you to suggest that. You'll notice I mentioned that I eat one meal a day. Why? So I can give my child what she needs. That's what good parents do, make sacrifices. Your other suggestion was why didn't I get a loan to pay for the new unit. Well, after the five-month run-around AHS gave me, I was in trouble with the bills and wouldn't have been able to secure a loan. And I wouldn't have qualified for a home equity loan since, as a homeowner for less than a year, I didn't even have any equity in the house yet. I've had to make do with emergency heat and space heaters for three years thanks to those idiots. Well, now that I've finally solved all of those problems, I can save up for the unit you so callously stated I should have run out and bought. (Yes, because everybody has a couple of thousand dollars just sitting around the house, right?!) This winter, my home will be heated properly, all due to my OWN efforts. All of that is beside the freaking point, anyway. If AHS had not been dishonest and slimy, the heating/cooling unit would have been replaced (LONG before December!!!), I would never have racked up those enormous heating bills, and I'd have an intact credit rating today. Instead, AHS chose to jerk me around just like they jerked around everyone else who has complained here. I mean, five months to cut a simple check, and even then it doesn't come close to covering what the warranty was supposed to cover. I'm not trying to play the victim here, since I survived the whole process, I'm just trying to prevent someone else from making the same mistakes. You're trying to get a claim honored from AHS? GET A LAWYER BEFORE YOU EVEN CALL THEM!!! It's better to pay the lawyer $150 an hour and get your claim honored instantly! (And you'll save on all those repeat $50 service fees, too.)

Dave

Jacksonville,
Florida,
U.S.A.

You destroyed your own credit rating

#9Consumer Comment

Thu, April 06, 2006

I agree that AHS is horrible, and I am not saying anything otherwise. However, you should've repaired the unit yourselves and then fought with AHS. If you had stellar credit, you would've had no problem getting a small loan or credit card to pay for the repairs. But instead, you put your health and your CHILD at risk by not doing anything. What's wrong with you? You had me until you said you had such great credit scores... that doesn't wash. IF you were doing so well, you could've repaired that unit at your expense and took AHS to court, which is what so many other people on this site do.

Sheila

Graham,
North Carolina,
U.S.A.

All the Same

#10Consumer Comment

Thu, April 06, 2006

It seems like most home warranty companies are all the same. I bought my house and it had a home warranty (not AHS). The heater breaks and I call the company. They will send someone right away. Three hours later - no serviceman. I call back and am told we have no contracted servicepeople in your area we are still tryng to find someone for you. Well after about another 6 hours a guy shows up and gets the heater running (it is a rough patch job but at least it works). Home warranty company told me to pay the $75 deductible to the serviceman. I do and fortunately am smart enough to get a receipt. He tells the company I never paid. I must have faxed that receipt to the warranty company at least 20 times over the course of 4 months before they agreed to go after him and not me. The heater kept breaking (really needed a new one) and I was spending so much on the deductibles that I eventually got wise and got a service contract with a local dealer. I was able to save up enough money and finally got the new heater. Anything else that broke it was the same story - no contracted dealer in your area. You will just have to wait until we find someone willing to accept our low fees. They eventually find someone and he will stick a few bandaids in place instead of the major surgery the problem requires. A few days later it breaks again and I am out another $75. What a rip.

Sheila

Graham,
North Carolina,
U.S.A.