An American Home Shield warranty, a type of home warranty, is a service contract that provides coverage for the repair or replacement of major home systems and appliances, such as the heating, cooling, and plumbing systems, and major kitchen appliances. For example, if a homeowner’s air conditioner breaks down, an American Home Shield warranty could cover the cost of repairing or replacing it.
American Home Shield warranties are important because they can help homeowners save money on unexpected repairs. They can also provide peace of mind, knowing that major home systems and appliances are covered in the event of a breakdown. One key historical development in the home warranty industry was the introduction of the first home warranty program by Sears in 1971.