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American Home Shield Launches New Flexplan June 1 2008
by David Brown

AHS's new home warranty allows for a benefit design rather than a catch all with a few options. Very popular in real estate transactions for buyers and sellers, the home warranty provides the protection for unexpected breakdowns in home systems and appliances. AHS has over 1.2 million warranties nationwide with an average of 2 service requests a year.

An AHS Flexplan home warranty offers a wide range of choice in coverages, so that you and your agent can build a plan that best fits your needs. The Core Coverage Plan is the basic plan and then there are additional benefits that can be added with a ServicePlus or CoveragePlus package such as code violations, ceiling fans, central vacuums, and other items. Additional options include washer and dryer, swimming pool, well pump, and septic systems. As a buyer's agent, I include the plan in the offer as a seller paid expense in closing. The first year premium (which starts at $355) is usually paid by the seller for the buyer. With sellers, I recommend that the home warranty is offered as an additional value to a buyer.

How Does it Work?

When a covered item needs repair, you just call or go online to the AHS website to place a service request. An AHS representative will assign a professional, insured contractor to handle your request. The contractor is paid a reduced fee for the service call (usually $60.00) and submits a report to AHS, and then if the repairs are needed and covered under the plan, then they are completed. Not every item may be covered, and the contract needs to be reviewed along with the estimates so that you will have no surprises but only the peace of mind that money was saved for your plumbing, electrical, heating, range, or air conditioning repair.