I have discovered how aggrieved homeowners can turn the tables on home warranty companies and beat them at their own game. Please share this with everyone you know.

I’m an attorney and after having a problem with my home warranty company, American Home Shield, I decided to investigate whether other homeowners had experienced the same or a similar problem. What I found were web sites devoted to consumer complaints on which numerous homeowners had recounted incidents of fraud, deception, and rip-offs by their home warranty company. I also found a blog written by a former American Home Shield employee and another written by a former plumber for a home warranty company. Both recounted situations that would not pass the “smell test” in a court of law.

I also investigated lawsuits that had been filed against American Home Shield in Georgia, which is where I live. I found about 15 cases. The majority of cases had been filed in small claims court. As I reviewed the cases, I discovered that none of the cases had been litigated. In every instance, the case had been settled to the Plaintiff’s satisfaction although the details of each settlement were not part of the case file. With the knowledge that all cases had been settled to the homeowners’ satisfaction, I realized that American Home Shield would settle with an aggrieved homeowner before allowing a case to go to trial. My conclusion is that the only thing aggrieved homeowners need to do to beat home warranty companies at their own game is to file suit. The last thing American Home Shield wants to do is litigate a homeowner’s claim and the reasons are obvious to me.

The most obvious reason American Home Shield would not want to litigate a claim is that in most instances, the cost to American Home Shield to settle a claim would be less than the cost to litigate. The average amount of a claim in the cases I found was $3,800.00. Two were for less than $1,000.00 and only one was for more than $10,000.00. I’m sure far more than the 15 homeowners who have filed lawsuits in Georgia have had their claims denied. American Home Shield wins when a claim is denied and the homeowner does not sue, which is exactly what American Home Shield is counting on homeowners not doing.

Another reason American Home Shield does not want to litigate is because the company does not want to have to defend its craftily drafted contract or its questionable business practices, which is exactly what it would have to do if a case went to trial. American Home Shield also does not want such information to become public knowledge, which is also likely to happen. Additionally, a judge or a jury would also be hard pressed to return a verdict favorable to a company that engages in questionable business practices.

The final reason American Home Shield does not want to litigate is because a lawsuit actually places American Home Shield in a precarious situation. American Home Shield would have a difficult time defending any claim by a homeowner because the company has no first hand knowledge about the claim; it would need the testimony of the service contractor who, for its own reasons, may be less than eager to testify. The only knowledge American Home Shield has is what the company has been told by the service contractor. And any testimony from American Home Shield about what it was told by the service contractor is hearsay and not admissible in court.

To defend a claim, American Home Shield would need to subpoena the service contractor who actually made the diagnosis to testify about the claim. If the homeowner has done his/her homework, he/she would subpoena witnesses who could dispute the witnesses for American Home Shield. The homeowner should subpoena one or more service companies who had been called either for a second opinion or to make the actual repairs to dispute the testimony of the American Home Shield service contractor. The homeowner might also consider locating one or more other aggrieved homeowners to testify about their problem with American Home Shield. Another good witnesses for the homeowner to subpoena would be a former service contractor for the home warranty company or a former employee of a service contractor.

Since American Home Shield has at least three significant reasons why it does not want to litigate, the best and easiest way an aggrieved homeowner can beat American Home Shield at their own game (and most likely any other home warranty company) is to file suit. The one thing for an aggrieved homeowner to keep in mind is that if he/she does not sue, the home warranty company will win. But if he/she sues, the homeowner will most likely win. And that is how an aggrieved homeowner can beat American Home Shield at their own game.

My advice to aggrieved homeowners is not to stress over a denied claim, the denial of a situation as an emergency, repeated “band-aid repairs,” or a delay in authorization or in the repair of an item. I would also advise a homeowner not to waste time arguing with American Home Shield but to set a reasonable deadline for the appropriate action. Upon expiration of the deadline without receiving satisfaction from American Home Shield, the homeowner should then proceed as if they did not have a home warranty and then sue American Home Shield for reimbursement. The homeowner should also remember to document every action or inaction by both himself/herself and American Home Shield. Although the disadvantage to the homeowner is initially having to pay for the repairs, the advantage is that the homeowner can choose the service contractor and the brands and quality of products. I won’t guarantee all aggrieved homeowners will prevail every time but I have good reason to believe most aggrieved homeowners will prevail the majority of time.

For aggrieved homeowners whose claims were denied at sometime in the past, you may still be able to sue for reimbursement. To make that determination, the homeowner needs to research the statute of limitation for suing on a contract in their state. In any event, a homeowner should be safe filing suit for a claim that was denied during the past twelve (12) months.

Within the next six months, instead of reading homeowner’s stories about being scammed and ripped off by their home warranty company, I want to read stories about how homeowners turned the tables and beat their home warranty company at their own game.

If anyone has any questions, I can be contacted at LegalCohen@***.com.

Good luck.

Product or Service Mentioned: American Home Shield Warranty.

Location: Reston, Virginia

Do You Have Something To Say ?
Write a review


You will be automatically registered on our site. Username and password will be sent to you via email.
Post Comment

American Home Shield is a garbage company do not believe their customers, hires unqualified contractors or vendors, all are not license they are only technicians with no experienced, do not I mean do not take out this home warranty. Going to sue them when I get all of my note's together and expose them on my local news channel.


Thank you--


on my way to the court house now


we need to get a class action against american home shield now




I have had them out to my house 4 times and paid $75 for every visit and problems still not solved. Waited on the phone for two ours and they answered and hung up.

Called again and waited two more hours and couldn't understand the persons english. Now waiting for AC and plumber again and probably get charged again another $75.

I am beginning to think this is just a way of getting money for visits and not doing repairs or come up with a different story each time. Buyers beware of this company.


I'm very thankful for this accounting of American Home Shield because they are crooks and seem to believe that if the amount is not that much you will let it go. I'm determined to hold American Home Shield Accountable and have them inform Bank of America whose card they erroneously used without my permission that they will remove those charges from my CLOSED Bank of America Credit Card.

I have A+ credit and I want to keep it that way but not by paying fraudulent charges by American Home Shield.

Thank you for your post! Disgruntled Ruby


My AC broke American home shield have refereed me to contractor that cost me $1000.46 plus $100. deductible liar .

as they advertise that they would cover the system accept Freon. Ask to send registration for my compressor never received


But just know... do not tell anyone your gonna do it yourself because the EPA and states have codes that require anyone that handles the old stuff with a Section 8 refrigerant cert.

They have anonymous complain reporting for any you suspect of doing any kind of work with refrigerant not being qualified. Not making that up... read it for yourself on the EPAs site. Research goes a long way.

If it's not the old stuff R-22 I think your good. But look it up...


Orrrrr... you can do what I did.

Been dealing with a crooked AHS contractor who released all my freon into the air (ALWAYS RECORD ANYTHING OUT OF THE ORDINARY REGARDLESS HOW CONFIDENT YOU ARE IT WILL BE TAKEN CARE OF), invented a problem that would require freon purging anyway causing me to have to pay for the freon he let out - out of pocket. A second company came out and confirmed the first company was full of crap and documented it and gave me a copy of the report (ALWAY GET A COPY OF THE 2ND OPINION REPORT AT ALL COST). For half a month I have been given the cold shoulder by AHS in essence forcing me to deal with the crook contractor as if he represents or works for them who was of course exploiting their *** poor customer support and inability to speak to anyone at Corporate. So...

after a month of the run around, cold should being toyed with by the contractor... I pulled out the big guns. I filed a complaint against the contractor with the EPA, and I filed a complaint against American Homeshield with the Federal Trade Commission "YESTERDAY AFTERNOON". And guess what?

Mysteriously I got a call from a bigwig from AHS who listened to me repeat the problem for the last time. They completly agreed they are 100% responsible and are dispatching a new contractor to have my system up and running in a couple of days. Have the office new contractor scheduling text to prove it. You all know the dont call anyone back...

coincidence? I think not... one of those 2 federal agencies lit a fire under their *** Not discounting the lawsuit route because I was gearing up to do that because of the lawsuit post... but I would definitely try to use the resources the government provides us already for consumer protection.

Maybe they didn't call, but kinda funny I get a call within 24hrs after filing a complaint the day before; when I've been pulling my hair out for almost a month with absolutely no results. P.S.

Oh very important... God's favor is mission critical so highly recommend a prayer prior too...


Freon RipOFF. Why can I buy home Freon 410 on the Internet for about $9-$10 a pound, (AHS covers $10 a pound for each pound), but the contractor charges about $70 per pound.

Dang - we all know that they are paying less than $10 per pound for it!!!!!! We homeowners are getting ripped-off and no-one either is doing nothing or can't do anything to STOP this.


Nobody sells freon for what they pay for it. It is called a BUSINESS!

If you can buy it online, why don’t you do it and install it yourself???? What you want is for AHS to cover all your costs, and they clearly don’t. The contractor does the work for free, and selling YOU freon is the only way they make money. If you don’t pay for the freon and AHS doesn’t pay for the labor OR the freon—how in the heck are they supposed to make money????

I know you don’t care, but if there were no AHS contractors willing to come out and look at your unit—then your claim would never get processed. Businesses can’t survive without money coming from someone—and that someone is YOU


If the contractor is working for free other than what they might make on parts, they must be pretty desperate for work. If they are desperate for work it's because no reputable contractor would hire them probably because they are unqualified.

No wonder there are so many unhappy AHS customers. The tech that came to may house added R422b without reclaiming the R22. You are not supposed to mix refrigerants. He also tried to backseat the service valves, which are not designed to be backseated.

He said he couldn't find a leak and 4 months later it had leaked so much that it was no longer cooling.

The policy is worthless because it doesn't save you any money if you need service and you receive unqualified and slow service. If my medical insurance worked that way I'd be dead!


I just made a post about an alternative route to get something done through the EPA and FTC... In response to your post.

In doing my research yesterday, I ran into a regulation that stated new laws have been passed where warranty providers have to still honor their warranties even if you choose not to go with their parts provided and you choose your own. I believe it was on the FTC's site.

I dont remember where it was at... but it might apply to your situation.


After you get your HVAC license and open your own business, you can sell the refrigerant for whatever you want to. If you don’t want to make any money at all, just sign up to become a contractor with AHS, and then give the customers the refrigerant for free is you want.

Or let them buy their own online and install it for them, and be prepared to take responsibility for whatever goes wrong. But you don’t want to OVERCHARGE the customer, heaven forbid! By the way, AHS won’t let you work for them if you charge them any money at all, so you’ll be doing all the work pro bono. Even if you do everything PRO BONO, the customers will hate your guts because you work for AHS and you can’t get out there fast enough to suit them.

Just go ahead and buy all your customers a new HVAC system and install it for free. I doubt you’ll be able to afford to hire any help, so you will be out really late at night doing free service work, and you’ll need to buy lots and lots of refrigerant, because it will be FREE to your customers, so they will be using a LOT of it. Oh, and your liability insurance, commercial auto insurance, trade licenses, EPA license, city and county business licenses will need to be paid before you even GIVE your stuff away. AHS will cut you off the minute you are one day late on an insurance payment or license.

But you go ahead and give it a try. See if you can make a living OR make your AHS customers happy, by giving away your parts, labor and refrigerant.

Let me know how that works out, ok? Best of luck to you.


AHS does not send out licensed contractors to do the work on HVAC systems. I know this first hand by contacting the County and checking. These individuals must be fined and put in jail, and if your one too, then ditto!


There are numerous licenses involved: state trade license, city business license, EPA license, etc. the county doesn’t matter


It sounds like you may "work" for AHS. Why?

If you are a truly trained and qualified contractor that takes care of their customers there is plenty of work available. What you have said just reinforces what most here have been saying - AHS is a rip-off for everyone involved both as customers and contractors.


Yes, as a contractor, there are plenty of opportunities in the home warranty market, that don’t require advertising. In fact, advertising is counter-productive for a contractor who services warranties.

The bad reputation that goes hand-in-hand with warranty work negates any marketing attempts. The contractors usually take the heat and the brunt of the anger, so advertising is a waste of effort. The good news for warranty service providers is that there are a never-ending supply if customers who are unwilling to hire their own reliable service people, because this large segment of customers don’t want to pay what it costs for good service. Without contractors willing to service a high volume home warranty customers, there would be no demand for the policies, which we all agree are quite worthless.

For their contractors, the benefit is a steady stream of opportunities to upsell items which are non-covered, like refrigerant. High volume, low dollar, pain in the ace customers are better than no customers at all, or broke customers who can’t purchase anything.

It’s a dirty game, which will continue indefinitely, until the customers stop buying these plans. AHS and the rest cover just enough to keep people hopeful.


Mr. Cohen, what will take for you to initiate a nation wide class action law suit against AHS this year ( 2019 ) ?

American Home Shield Reviews

  1. 1523 reviews
  2. 419 reviews
  3. 82 reviews
  4. 22 reviews
  5. 23 reviews
American Home Shield reviews