Items listed here are based off a sample contract from an American Home Sheild (AMS) Home Warranty (downloaded at http://www.ahswarranty.com/AHSProductPresentment/HomeshieldProductPresentment.aspx)
G. LIMITATIONS OF LIABILITY
- The following are not covered for the homeowner for the first 30 days after the Effective
Date (see Section B): (a) malfunction or improper operation due to rust or corrosion of
appliances, heating systems (including built-in wall units or heat pumps) and/or air
conditioning systems/coolers or pools/spas; (b) collapsed ductwork.
- AHS is not responsible for providing or closing access to covered items except as noted
in Sections D.1. and D.5.
- You may be charged an additional fee by the Service Contractor to dispose of an
old appliance, system or component, including, but not limited to the following
items: condensing units, evaporator coils, compressors, capacitors, refrigerators,
freezers, water heaters, and any system or appliance which contains dangerous or
- AHS is not liable for restoration of any wall coverings, floor coverings, cabinets, counter
tops, tiling, paint, or the like, nor the repair of any cosmetic defects.
- AHS is not responsible for electronic or computerized home management systems
including, but not limited to, energy, lighting, security, appliances, entertainment, comfort or
- AHS is not responsible or liable for secondary, incidental and/or consequential loss or
damage resulting from the malfunction of any covered item including, but not limited to,
food spoilage, loss of income, utility bills, additional living expenses, personal and/or
property damage, or authorized contractor’s service or delay in service.
- AHS is not responsible or liable for any delay in service or failure to provide service
caused by conditions beyond its control, including, but not limited to, delays in obtaining, or
shortages of, parts and/or equipment, or labor difficulties.
- AHS is not responsible or liable for repair of conditions or replacement caused by
chemical or sedimentary build up, misuse or abuse, failure to clean or maintain, missing
parts, structural changes, fire, freezing, electrical failure or surge, water damage, lightning,
mud, earthquake, soil movement, storms, accidents, pet damage, pest damage, acts of
God, or failure due to excessive or inadequate water pressure.
- AHS has the sole right to determine whether a covered system or appliance will be
repaired or replaced. AHS is responsible for installing replacement equipment of similar
features, capacity, and efficiency, but not for matching dimensions, brand or color. Except
when repairing or upgrading covered systems to maintain compatibility with equipment
manufactured to be 13 SEER or 7.7 HSPF compliant, or compliant with any higher SEER or
HSPF requirements, AHS is not responsible or liable for upgrades, components, parts or
equipment required due to: (a) the incompatibility of the existing equipment with the
replacement system or appliance or component or any part thereof; or (b) any new type of
chemical or material utilized to run the replacement equipment including, but not limited to,
© 2009 AHS Corporation CAHS10
differences in technology, refrigerant requirements, or efficiency as mandated by federal,
state, or local governments. AHS is not responsible or liable for the cost of construction,
carpentry, or other modifications made necessary by the existing equipment or installing
- AHS is not responsible or liable for repairs related to inadequacy, lack of capacity,
misuse, improper installation, previous repair or design, manufacturer’s defect, and any
modification to the system or appliance. AHS does not perform routine maintenance. You
are responsible for providing maintenance and cleaning on covered items as specified by
the manufacturer to ensure continued coverage on such items. For example: heating and
air conditioning systems require periodic cleaning and/or replacement of filters and cleaning
of evaporator and condenser coils. Water heaters require periodic flushing.
- This contract does not cover appliances or systems deemed or classified by the
manufacturer as commercial.
- AHS is not responsible for any repair, replacement, installation, or modification of any
covered system, appliance, or component or part thereof: (a) that has been, or is,
determined to be defective by the Consumer Product Safety Commission or the
manufacturer; (b) that a manufacturer has issued, or issues, a warning or recall; (c) that has
a malfunction caused by the manufacturer’s improper design, use of improper materials,
formula, manufacturing process or other manufacturing defect; or (d) while still under an
existing manufacturer’s, distributor’s, or in-home warranty.
- AHS reserves the right to provide pre-approved reimbursement of itemized costs or
cash back in lieu of repair or replacement. Both pre-approved reimbursement of itemized
costs and cash back in lieu of repair or replacement will be based on what AHS would
ordinarily expect to pay for the same parts and labor, which may be less than retail or your
actual cost. Acceptable proof of the repair and your actual itemized costs must be provided
to and approved by AHS before any reimbursement will be paid.
- AHS reserves the right to rebuild a part or component, or replace with a rebuilt part or
- AHS is not under any circumstances liable for the diagnosis, repair, removal or
remediation of mold, mildew, bio-organic growth, rot or fungus, or any damages resulting
from or related to mold, mildew, rot or fungus, even when caused by or related to the
malfunction, repair or replacement of a covered system or appliance.
- AHS will not contract to perform service nor pay costs involving hazardous or toxic
materials including, but not limited to, asbestos, mold, lead paint, and sanitation of sewage
spills, nor will it pay costs related to recapture or disposal of refrigerants, contaminants,
hazardous, or toxic materials. AHS will only pay costs related to freon recapture if it is
part of your coverage plan.
- This contract does not cover fees associated with use of cranes needed to install or
remove any equipment located on the roof top.
- AHS is not responsible for like-for-like replacement of appliances if the appliance
contains any features that do not contribute to the appliance's primary function including,
without limitation, TVs or radios in refrigerators.