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Amazon Home Warranty Review

By Diane Fogle MONEY RESEARCH COLLECTIVE

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When the systems and large appliances in your home malfunction or wear out, a home warranty can help cover the cost of repairs or replacement. But home warranties aren’t actually warranties – and they’re not insurance either. They’re service contracts that offer you financial assistance when your home systems and appliances need to be repaired or replaced.

Having only been around for four years, Amazon Home Warranty is a relatively new addition to the home warranty market. This article will explore Amazon Home Warranty’s offerings, limitations, costs and reviews so you can decide if AHW has the right home warranty coverage for your home.

 

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Amazon Home Warranty overview

The first thing you may be wondering is whether Amazon Home Warranty is owned by Amazon. This isn’t the case. Amazon Home Warranty, now more commonly known as AHW Home Warranty, was started in 2018 and is completely separate from the famous e-commerce company.

AHW maintains a robust network of over 40,000 Amazon Home Warranty contractors across 45 states. It offers three plans and the ability to select optional add-ons no matter which plan you choose.

Pros
  • Offers three different plans
  • Requires no inspection or maintenance records for covered appliances
  • Available 24/7 for claims, online or by phone
  • Get one month free + $75 off
Cons
  • Accused of violating the Arizona Consumer Fraud Act
  • Does not cover pre-existing problems
  • Must provide personal information to receive a quote, even though the rates are consistent
  • Confusing exclusions, causing a high rate of claim denial

Despite the company’s many options and wide network, Amazon Home Warranty’s consumer reviews are mixed. Many complain about the company’s customer service, claim denial and long wait times for service calls.

What it offers

Amazon Home Warranty offers three plans: a System plan, an Appliance plan and a Combo plan. You can also add on optional coverages, such as for an additional dishwasher or a pool.

Amazon Home’s Appliance warranty covers eight of the most common large appliances, such as fridges and stoves. The System warranty covers eight major systems, including central heating and plumbing. The Combo plan offers coverage for all the items in both the system and appliance plans and also includes seven additional items.

Like most home warranties, these plans only cover damage from normal wear and tear. AHW offers coverage for items without an inspection and doesn’t require maintenance records.

When you request a repair, AHW can take your call or online message 24 hours a day, seven days a week, but that doesn’t mean a service technician will be available immediately. They will get back to you within 48 hours and put you in contact with a technician in their network.

What it doesn’t offer

Amazon Home Warranty’s plans offer coverage that’s similar to what other home warranty plans provide, but there are nuances to Amazon Home Warranty coverage that may be confusing. When considering AHW, double-check the “Not Covered” section under each item to see if the Amazon Home Warranty’s services are right for your situation and that the coverage limits are acceptable.

AHW plans do not cover most pre-existing problems, both known and unknown. This is a huge drawback in comparison to other home warranty contracts. Not covering pre-existing problems is standard in the home warranty industry, but such limitations are often limited to known problems or items that function normally at the start of coverage.

Because AHW states that they don’t cover “unknown” pre-existing problems, it’s up to Amazon Home Warranty’s claims department to decide if the issue was pre-existing or not. This determination and consumers’ frustration with its ambiguity came up in many reviews and BBB complaints.

Amazon Home Warranty doesn’t offer coverage for damage caused by lack of maintenance or owner modifications. These are standard limitations that are found in most home warranty plans. Additionally, AHW does not offer coverage for cosmetic damage or rust.

Amazon Home Warranty’s protection plans

Amazon Home Warranty’s costs come in well under the industry average. Even their service fees are lower than average, costing $75 each time a technician comes out, compared to the industry average of $82. If you expect that you’ll need a technician often, these service fee considerations could be a factor in your choice of home warranty.

Below is a breakdown of Amazon Home Warranty plans.

Appliance plan

The Appliance plan is the cheapest one AHW offers at $349 per year. It covers most major appliances, including:

  • Dishwasher
  • Trash compactor
  • Oven/range/stove/cooktop
  • Refrigerator with ice maker
  • Standalone freezer
  • Microwave ovens
  • Clothes washer
  • Clothes dryer

System plan

The System plan is $429 per year and covers most major home systems, including:

  • Central A/C system (two units)
  • Central heating system
  • Plumbing (including stoppages)
  • Electrical system
  • Hot water heater
  • Ductwork
  • Jetted bathtub
  • Garage door openers

Combo plan

Both the System plan and the Appliance plan come in well under the home warranty industry average costs. The Combo plan’s price is much closer to the industry average at $579 per year. It includes coverage for all items in the System and Appliance plans, plus the following additional items:

  • Instant hot water dispenser
  • Garbage disposal
  • Kitchen fan/exhaust hood
  • Attic fan
  • Ceiling fan
  • Bathroom exhaust fan
  • Doorbell

Optional add-on items

AHW offers 23 add-on coverages that you can add to any of the plans. Each item comes with its own pricing. These include:

  • Pool and spa
  • Additional central A/C
  • Additional central heating
  • Central vac
  • Lawn sprinkler system
  • Well pump
  • Septic system
  • Wine refrigerator
  • Whole house humidifier
  • Septic tank pumping
  • Freezer (standalone)
  • Additional fridge
  • Sump pump
  • Water softener
  • Limited roof leak
  • Water heater
  • Ice-maker
  • Extra oven
  • Additional washer/dryer
  • Additional dishwasher
  • Additional microwave
  • Duplex
  • Pool heater

 

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What Amazon Home Warranty reviews are saying

AHW home warranty reviews are mixed, but mostly poor. Amazon Home Warranty’s BBB rating is an F, largely because Amazon Home Warranty’s complaints number in the thousands. Considering that the company has only been in business for four years, this is considerable. More than 350 complaints came in the last 12 months alone.

The BBB isn’t the only site with poor reviews for Amazon Home Warranty. Ratings by customers and contractors across the internet — from Google to Yelp to TrustPilot — do not look good for AHW. Many of these reviews mention unsubstantiated claim denials or a lack of available technicians. Even when their claims were approved, many customers noted that AHW didn’t cover the entire cost of the repair or replacement.

AHW claims to have a large network of technicians and to value customer service, but there is a large group of customers and technicians that would disagree.

Amazon Home Warranty’s legal issues

In 2021, the Attorney General’s Office in Arizona filed a case against Amazon Home Warranty and its officers for violating Arizona’s Consumer Fraud Act. They claimed that AHW mislead consumers by posting fake five-star reviews and falsely claiming that to have been in business for over 10 years. AHW also allegedly misled consumers about the identity of the owner of Amazon Home Warranty, since the owner is affiliated with another home warranty business that was unsuccessful.

In November 2021, Amazon Home Warranty settled with Arizona. AHW was ordered to pay $105,000 back to 1,300 consumers in Arizona. The company also paid $35,000 in civil penalties and $10,000 in attorneys’ fees. AHW and the owners had to agree to injunctive relief as well.

The case does not mention where the false positive reviews were posted. This makes it especially hard to trust any reviews before the Attorney General’s Office in Arizona took action against Amazon Home Warranty.

Amazon Home Warranty FAQ

Here are some common answers to common questions asked about AHW.

How does cancellation work?

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AHW has a 30-day guarantee for all three of its plans. If you change your mind and cancel within the first 30 days, AHW will give you a full refund.

After 30 days, Amazon Home Warranty will issue a prorated refund if you decide to cancel. There is a $30 cancellation fee as well.

How much does an Amazon Home Warranty cost?

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The cost for Amazon Home Warranty depends on the plan you choose and how many times you need a technician to come out. The appliance plan is $349 for one year of coverage, the system plan is $429 and the combo plan is $579.

AHW charges a $75 service fee for each time a technician comes out. That means you must pay an additional $75 if the technician needs to come back another day or if AHW needs to call out another technician. Additionally, if you cancel the appointment while the technician is on the way to your home, or if you're not present when the technician arrives, you will still be charged the full service fee.

How does Amazon Home Warranty compare to other warranty companies?

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Unlike most other home warranty companies, Amazon Home Warranty offers separate Appliance and System plans. Most home warranty companies only offer comprehensive plans. Each of AHW's individual plans costs less than the industry average, but they also cover less. That may be perfect for some particular situations. For example, if you have a lot of new appliances in a very old home, the System plan might be a good way for you to save money by covering only what you need.

Compared to other companies, Amazon Home Warranty's Combo plan offers standard coverage at a standard price. At the same time, AHW has lower customer satisfaction, a shorter history in business, and more litigation issues than other home warranty companies. The lower price won't make a difference if your claim is denied.

What are Amazon Home Warranty's exclusions and limitations?

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Amazon Home Warranty's coverage officially starts 30 days after the contract is signed.

AHW has more exclusions than other home warranty companies. You can look at the sample contract on Amazon Home Warranty's site. Be sure to read it carefully if you are considering Amazon Home Warranty's coverage. Being familiar with the exclusions will help you get the best possible coverage.

Additionally, AHW only offers $1,500 to cover damage or replacement necessary if a contracted technician damages the item through negligence. This amount may cover damages to a smaller item such as a microwave, but not for a more expensive item like an HVAC system.

How we evaluated AHW

We considered several factors in reviewing Amazon Home Warranty. We looked into user reviews and ratings on multiple platforms. Additionally, we researched the details of the company’s legal issues and the commentary about it. The extreme ratio of negative to positive reviews for AHW is worrisome. With so many other home warranty options available, you may not want to take the risk of losing your money with Amazon Home Warranty.

We also considered cost. While AHW’s Appliance and System plans are comparatively inexpensive and may suit the needs of particular situations, Amazon Home Warranty’s Combo plan is similar to the basic plan of many other home warranty companies in terms of cost and items covered. Admittedly, AHW’s service fee is cheaper than the industry average, but the service itself isn’t well-rated and customers may end up paying the fee multiple times to address a single malfunction.

Amazon Home Warranty summary

Amazon Home Warranty offers some unique features, like being able to split up the cost of covering your home’s appliances and systems. However, with AHW’s short history, confusing exclusions and legal troubles, we don’t recommend choosing this company as your home warranty provider. Many other home warranty companies offer plans that cover the same items with similar or cheaper service fees and no legal issues.

To find home warranty companies with better reputations for excellent customer service and coverage, check out our list of the best home warranties of 2022.

Diane Fogle

Diane Fogle is the owner and sole freelance writer at The Little Green Bird. She received her Masters of Library and Information Science from the University of Denver. The research skills gained through that program, combined with a love of learning and intellectual freedom, have led her to a passion for helping businesses communicate with their customers. She lives in Colorado where she hikes with her husband, two young daughters, and an old greyhound.