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Amazon Home Warranty tailors plans so that you can get the coverage you want within your budget.
- Pros and Cons
You can use your own repair person
Relatively high customer satisfaction scores
Limited coverage – only available in 21 states
Low payout cap
Excluded versus included coverage sometimes seem to contradict each other
Arizona's Attorney General filed a lawsuit against Amazon for fraudulent practices. We are monitoring the situation and will update this review as facts develop.
Amazon Home Warranty – which is not associated with Amazon.com in any way – offers budget home warranties. However, given that the company was founded in 2018, it seems reasonable to conclude that their choice of name was designed to hint at some kind of affiliation. The company offers a choice of three home warranties designed to cover the repair or replacement costs for major home systems, appliances, or both. It also offers the option to purchase add-on coverage for items such as well pumps, sprinkler systems, or even wine refrigerators.
Amazon Home Warranty (AHW for short) only operates in a limited number of state – 21, to be precise. AWH home warranties are relatively inexpensive, but offer limited coverage and have low payout caps. The company has a respectable customer satisfaction score, as measured by the Better Business Bureau, but is also the subject of a lawsuit regarding the legitimacy of these reviews.
According to our research, the most important feature to consumers when choosing a plan is its cost, with 74% of respondents naming this as the most important factor. Other important factors include service fees (63%), speed of response (48%), and pricing information being available online (46%). Our reviews thoroughly consider all these factors, as well as exclusions and payout caps, to help you make an informed decision when choosing a home warranty company.
Overall, we don’t think that AHW is one of the best home warranty companies around at the moment. In this review, we’ll explain why.
AHW offers home warranties in 21 States. These are:
47% of our 538 survey correspondents said that coverage and support was the most important aspect of a home warranty, so make sure a company covers your home state first, before considering other factors. AHW only covers a limited number of states, so checking if you are covered is especially important here.
Amazon Home Warranty offers its customers a choice of three plans:
- Essential Appliances
- Major Systems
- Combo Plan, which combines both of the above
The company’s website makes a number of claims about their plans, some of which are hard to verify. AHW say that they have the largest network of certified technicians in the US, but don’t provide a number for comparison. They also claim they are the “most trusted home warranty provider in America,” which is also difficult to verify.
The company does offer some tangible benefits, though. They provide a 90-day Guarantee on repairs, don't require inspection or maintenance records for the appliances you want to cover, and offer a 30-day money back guarantee on their policies.
Here’s what each plan covers:
|Amazon Home Warranty||Appliance Plan||Combo Plan||System Plan|
|Central AC System||✓||✓|
|Central Heating System||✓||✓|
|Plumbing (including Stoppages)||✓||✓|
|Hot Water Heater||✓||✓|
|Garage Door Openers||✓||✓|
|Refrigerator (with Ice Maker)||✓||✓|
|Freezer (Stand Alone)||✓||✓|
|Instant Hot Water Dispenser||✓|
|Bathroom Exhaust Fan||✓|
|Kitchen Fan/Exhaust Hood||✓|
AHW points out that there are “28 items included in the Combo Plan,” and claims that this is “more than anyone else.” In reality, this is a somewhat dubious claim, because home warranty companies list the appliances and systems they cover in different ways. In fact, the number of appliances and systems covered by AHW’s combo plan is similar to that covered by other companies “complete” plans.
Real Estate Plans
AHW also offers plans for real estate professionals. These do not follow the same three-tier model that AHW uses for its consumer plans. Instead, real estate professionals are encouraged to contact AHW directly for a quote.
AHW doesn’t provide prices for their policies online. Instead, potential customers must provide their location and contact details in order to be given a quote. During our research, we requested quotes from AHW for all three of their plans, across three states. These were Florida, New York, and Texas (normally we ask for a quote for California as well, but AHW don’t cover California). Here are the quotes the company provided for a year’s worth of coverage:
|Essential Appliances||Major Systems|
As we can see, your location doesn’t appear to make any difference to the price of these plans. This would make it easy for AHW to provide these prices on their website, but they do not. This is a mark against the company when it comes to price transparency, a feature valued by home warranty customers.
On the other hand, the pricing of these plans is highly competitive. During our research, we found that the average cost of a home warranty plan in the US was $574. This puts AHW’s Combo Plan at about the average price for a home warranty, and their two more limited plans well below average. Just keep in mind that AHW only allows you to buy these plans on an annual basis, so you can’t use them for just a few months.
There are some other costs involved with this type of policy, though. All home warranty providers charge a service fee, and the industry-wide average service fee is about $82. This is due each time you call out a technician to fix an appliance. AHW’s service fees, just like their annual fees, are below average, at $75 per service call. If you end up needing to call for service frequently, this could save you quite a bit of money.
51% of our survey correspondents said that pricing information was the most important piece of information they need when choosing a home warranty policy, and 70% of survey correspondents said that the monthly or annual cost of a plan was more important to them than service fees. AHW offers inexpensive home warranties, and low service fees.
Amazon Home Warranty also allows you to add optional coverage for a monthly fee. Unusually, they provide pricing information for this on their website. Here’s what each extra item will cost you:
|Pool & Spa||$14.92|
|Additional Central AC||$9.99|
|Additional Central Heating||$9.99|
|Lawn Sprinkler System||$9.99|
|Whole House Humidifier||$8.99|
|Septic Tank Pumping||$6.99|
|Freezer (Stand Alone)||$4.99|
|Limited Roof Leak||$6.00|
|Hot Water Heater (extra)||$9.99|
Types of Damage Covered
AHW provides a sample contract on their website which details the type of damage that their policies cover. The contract we reviewed was standard for industry. AHW policies:
- Provide a commitment to repair certain appliances and systems if they malfunction,
- Cover repair and replacement costs on major home systems and appliances in the event of breakdowns associated with normal wear and tear.
However, buyers should be aware that there are some limitations to what a home warranty plan can cover, and that includes home warranties offered by AHW. Home warranties cover breakdowns that occur due to normal wear and tear. For example, if a fan in your AC unit breaks due to natural use, AHW would likely cover the replacement. However, if that AC was broken from human misuse or a natural event like a tree branch falling on the outdoor air handler, it would not fall under their coverage.
Although Amazon Home Warranty provides coverage for appliances and major home systems, there are a lot of exclusions. This is normal with most warranty plans, but there are some specific exclusions that we found confusing. This could make you think that a repair is covered when it is not.
For example, drain stoppages and clogs are covered items, however, upon further reading, there is a long list of things that may actually cause the stoppages and clogs which are not covered. One of these is a root intrusion– a stoppage or clog resulting from this is likely to be a denied claim. You can review a complete list of coverage and exclusions with an Amazon Home Warranty’s sample contract, and you should read through the plan exclusions carefully to fully understand what might not be covered in a claim.
Home warranty coverage doesn’t usually apply if a system or appliance stops working because of misuse or abuse. It also doesn’t cover malfunctions due to lightning strikes or fire; for protection from these events, you need homeowners insurance.
AHW offers inexpensive home warranty plans, and charges lower service fees than average. The compromise is that their payout caps are lower than average, and are more confusing than most.
The company told us that their payout caps work like this. You can claims a maximum of $1500 on appliances, $2,500 on systems, no cap on water heater, no cap on freon, $500 cap on plumbing and electrical, and some optional coverage options.
These payout caps are well below the leading home warranty companies – some of whom offer $6,000 per item, or $30,000 in aggregate cost for repairs. This means that if you have an expensive repair to pay for, such as on your AC system, you may end up paying the majority of the repair cost even though you have a home warranty. For this reason, we recommend that you thoroughly read through your contract so that you understand your out-of-pocket costs.
Payout caps are important, and consumers recognize this. 27% of our survey correspondents said that getting the maximum payout cap is important to them when choosing a home warranty policy. AHW’s payout caps are below average, and could mean you have a higher out-of-pocket cost if you need to call for frequent repairs.
Claim Response Times
AHW says that once you have made a service call request online, you can typically expect authorization for a major repair within 48 hours. The company uses a network of providers, though you may be able to request your own service provider to get authorization for the claim. Amazon Home Warranty does note that they will attempt to expedite repairs if there is an emergency, but the company also states that they will determine what constitutes an emergency, so this is at their discretion.
Customer Service and Claims
Amazon Home Warranty’s contract states that you must immediately contact them by phone when a problem occurs. They will contact a service provider within 48 hours of a claim being made who will then notify you to schedule an appointment. Appointments are made at a time that is mutually convenient for you and the service provider.
34% of our survey correspondents said that choosing their own technician was important to them when choosing a home warranty policy. AHW allows you to choose your own repair person, but you should make sure that this is covered by your policy before booking the repair.
AHW offers a number of ways for customers to request a technician and make a claim against their policies:
- Online: https://ahwp.com/
- Phone: 888-934-0001
The company offers an online portal where customers can manage their policies. This is likely to be particularly useful for real estate professionals who want to manage multiple policies in the same place.
When it comes to customer satisfaction, AWH is a difficult company to asses. On the one hand, the Better Business Bureau has awarded the company a D+ rating – really quite poor, even for this sector. On the other hand, customer reviews submitted through the BBB appear to tell a different story, with an average rating of 3.73 out of 5 . This latter score would put the company among the best in the industry. Then there is the issue of the ongoing lawsuit, which alleges that AHW have been fabricating reviews.
Overall, these competing factors make it difficult to assess just how customer-focused AHW is, and the quality of the service it is delivering. When coupled with the fact that the company doesn’t offer free cancellation, and that homeowners must sign up for a year, this makes AHW difficult to recommend as a reliable choice of home warranty provider.
Amazon Home Warranty vs. The Competition
Let’s compare the service offered by AHW with that provided by American Home Shield Warranty. American Home Shield, having been founded in 1971 and with more than 9,000 BBB reviews to their name, are well established in the industry.
Here’s how the two companies compare:
|American Home Shield||Amazon Home Warranty|
|Average Cost of Plan||$579.88||$512.33|
|# of Plans Available||Three||Three|
|Customer Satisfaction, BBB score (and number of reviews)||2.42 / 5
|3.73 / 5
|Service Fee (average)||$100||$75|
|States covered||49 (excludes AK)||21|
As we can see from this table, the price of AHW is lower than American Home Shield, and indeed is lower than many of its other competitors, when it comes to both annual cost and service fees.
On the other hand, AHW policies are more limited than many of those offered by their competitors. Then cover a little less than half the country, and have lower payout caps than most other plans. And though the headline customer satisfaction ratings for AHW are impressive, we have concerns about how well they reflect the reality of working with the company.
Amazon Home Warranties are a little less expensive than the average home warranty plan, and have low service fees. That could make them a good choice for homeowners on a tight budget. On the other hand, these policies come with some limitations and concerns. They are only available in 21 states, and have low payout caps. If you need to call for service frequently, this could push up the cost of these policies.
When it comes to customer satisfaction, AHW is a hard company to asses. On the one hand, the Better Business Bureau has awarded the company a D+ rating – really quite poor, even for this sector. On the other hand, customer reviews submitted through the BBB appear to tell a different story, with an average rating of 3.73 out of 5 . This latter score would put the company among the best in the industry.
Overall, we don’t think that AHW is among the best home warranty companies around at the moment.
Amazon Home Warranty FAQs
How Much Does An Amazon Home Warranty Cost?
In our research, we found that the average cost of an Amazon Home Warranty was $512, about $50 less expensive than the industry-wide average of $574.
What Do AHW Plans Cover?
AHW plans cover most major appliances, home systems or a combination of both. You can choose various levels of coverage for your appliances, or a systems package which covers AC and plumbing.
What Does Amazon Home Warranty Not Cover?
AHW policies, like those of other home warranty companies, do not cover damages resulting from misuse or from natural events. Damages caused by natural events may still be covered by your homeowners insurance policy.
How Much Is Amazon Home Warranty’s Service Fee?
Amazon Home Warranty charges below-average service fees of $75 per call-out. They also allow you to use your own repair person – just make sure you get approval for this before booking a repair.
Can You Cancel An Amazon Home Warranty Policy For Free?
Yes. AHW told us that policy holders can cancel their policy for free at any time.
How Do You File A Claim With Amazon Home Warranty?
AHW offers a number of ways for customers to request a technician and make a claim against their policies:
- Online: https://ahwp.com/
- Phone: 888-934-0001
What Is The Response Time For Claims With Amazon Home Warranty?
Amazon Home Warranty say that their response time to claims is 48 hours. This is about average for a home warranty company. If you have an emergency situation, they may be able to expedite the process.
Are There Customer Service Complaints Against Amazon Home Warranty?
AHW does have a number of complaints. The Better Business Bureau has awarded the company a D+ rating – really quite poor, even for this sector. On the other hand, customer reviews submitted through the BBB appear to tell a different story, with an average rating of 3.73 out of 5
There are several aspects to consider when evaluating a home warranty company and its coverages. To assist in your decision process, our methodology for reviewing home warranties includes a quantified scoring system that evaluates four major categories - total plan cost, coverage and support, customizability and transparency. Within those four major evaluation categories we look at 18 core features that include annual plan fees and service fees, claim response times, payout caps, states available, contract length range, customizable coverages, ability to use own repair person, free cancelation, plan pricing, plan exclusions and other plan provisions available online. We assign fractional score values ranging from 0.00 to 1.00 point for each feature and then weight those feature values according to subject matter expert advice and consumer survey importance ranking. We also compare features for each company to industry average values determined from our data collection for the top 25 home warranty providers. Third-party ratings and customer satisfaction scores are factored in to help assess a home warranty company’s overall quality, suitability and value.
State of Arizona Attoryney General." Attorney General Mark Brnovich Sues Home Warranty Company for Misleading Arizona Customers."
AHW. (n.d.). Ahwp.com.