Two service contracts that look alike in the advertising and diverge entirely in the paragraph that pays out.
These two contracts are not priced apart so much as capped apart, and the question that separates them is simple: how much will it pay on the one appliance most likely to fail. Everything else, the plan names, the item counts, the advertising, is downstream of that.
American Home Shield writes a $50,000 limit across the agreement term and $5,000 for a covered HVAC system, which is the failure that makes or breaks a home warranty. Choice Home Warranty caps most covered items at $3,000 for the year. On a compressor replacement that gap is the entire value of the contract.
Choice answers with one flat service call fee and a shorter contract to read. American Home Shield lets you choose your service fee at purchase, trading a lower fee against a higher monthly premium, which is useful if you expect several claims and pointless if you expect none.
Every figure on this page is a published term from the provider, linked and dated. Monthly prices are not published here: they are quoted per address, and a number printed today would be wrong for most readers by the time they read it. Neither of these companies pays to appear on this page, and nothing here asks you for anything.
The larger contract. Three tiers, a high aggregate limit, and a service fee you choose against the monthly price.
Total limit per agreement term $50,000
The cap that matters most $5,000 per covered HVAC system
The simpler contract. Two plans, one flat service fee, and a cap low enough that it decides which claims are worth making.
Cap per covered item, per year $3,000
Same fee on every claim $100 flat service call fee
American Home Shield is the contract to hold if the failure you fear is the furnace or the compressor: the aggregate limit is an order of magnitude higher and the HVAC cap is nearly double. Choice is the contract to hold if you want one fee, one page of terms and a plan that is easy to leave. Neither is worth buying for a house whose systems are new and under manufacturer warranty.
Published contract terms, not marketing copy. Each figure is linked to the provider page it came from, with the date it was checked.
| Term | American Home Shield | Choice Home Warranty |
|---|---|---|
| Plans | ShieldSilver covers parts of 19 major systems; ShieldGold 28 systems and appliances; ShieldPlatinum 29 items. | Basic, and Total which adds air conditioning, refrigerator, washer and dryer for 18 covered items. |
| Total limit | $50,000 per agreement term, on every plan. | $3,000 per covered item per 12-month period. Some items, such as well pumps and septic, are capped far lower. |
| HVAC cap | $5,000 per covered heating or cooling system. | $100 per claim, paid to the technician, whatever the repair costs. |
| Appliance cap | $2,000 per covered appliance on ShieldGold, $4,000 on ShieldPlatinum. | Cancel within the first 30 days for a refund less a $50 administrative fee. |
| Roof leaks | ShieldPlatinum only, limited to $1,000 of repair. | Sold nationwide except in Washington state. |
| Service fee | Chosen when you buy the plan. A lower fee raises the monthly premium. | Assigned from the provider network. You do not choose the company that arrives. |
Terms change without notice and are quoted per address. Read the sample contract for your own state before you buy: the exclusions section is where a home warranty is actually written, and it is the part neither company advertises.
Both companies sell on their own site. Home Palais never collects your name, your phone number or your address, and there is no quote form anywhere on this page.
The larger contract. Three tiers, a high aggregate limit, and a service fee you choose against the monthly price.
The simpler contract. Two plans, one flat service fee, and a cap low enough that it decides which claims are worth making.
A home warranty is a bet on the age of your systems. These are the conditions under which each contract is the better bet, and the conditions under which the better bet is a savings account.
American Home Shield
Choice Home Warranty
A home warranty is a service contract, not insurance. It pays to repair or replace covered items that fail from normal use, and the word covered is doing an enormous amount of work in that sentence.
Every term on this page comes from the provider’s own published pages, each one linked with the date it was checked. Where a figure is quoted per address, such as the monthly premium, this page says so instead of printing a number that would be wrong for most readers.
Neither company was contacted, neither reviewed this page before publication, and neither can pay to change its position on it. The links can earn a commission once the affiliate programmes behind them are live, at no cost to you, and that arrangement is set out on our affiliate disclosure page.
It is worth it when your systems are old enough to fail and you cannot absorb a five thousand dollar failure. On a house with new equipment under manufacturer warranty, the premium and the service fees usually exceed what the contract pays back.
A flat amount you pay the technician on every visit, whatever the repair costs, and it is charged per claim rather than per year. Choice charges $100. American Home Shield lets you choose your fee at purchase, against the monthly price.
Most denials come down to three clauses: a pre-existing condition, a lack of documented maintenance, or an exclusion in the fine print of that item. Photograph and keep service records for anything you expect to claim on.
Not on either plan. Both providers assign a technician from their network, which means the value of the contract depends heavily on which companies serve your area. Search for the provider plus your city before buying.
No, and no lender accepts it in place of one. Insurance covers sudden damage from a covered peril; a home warranty covers mechanical failure from normal use. They pay for different things and most homeowners with a warranty carry both.
Yes. Choice refunds within the first 30 days less a $50 administrative fee, and both providers allow cancellation later on a prorated basis. Check the fee schedule in your own state contract, because the terms vary by state.
Contract terms on this page are the providers’ own published figures, checked on the dates shown, and they change without notice. Monthly prices are quoted per address and are deliberately not published here. A home warranty is a service contract, not insurance, and nothing on this page is a recommendation to buy one.