I have been a customer of American Home shield for nearly 7 years. The contract stated that if something in the house that was covered was broken, I pay a small service charge and the product is repaired, or if not able to be repaired, it is to be replaced. My water heater broke and needed to be replaced. American Home Shield refused to cover what they called "upgrades", as the heater being replaced was no longer in code. I had to pay an additional $200 out of pocket, that I do not have before this would be fixed. I have been paying a monthly fee for almost 7 years, and only had to replace a garbage disposal... They have thousands of dollars of my money that was never spent; and when I am in a desperate situation, the refused to cover the "upgraded equipment to bring it to code".
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