American Home Shield (AHS) to acquire HSA Home Warranty
In what looks to be a paradigm game changer, American Home Shield (AHS) announced its plan to acquire HSA home warranty.
AHS is a spin-off unit of The ServiceMaster Company, one of the world’s largest residential and commercial service networks. HSA warranty is a leading home service contract company offering comprehensive appliance protection plans operating in the industry for nearly three decades.
The acquisition deal was announced on November 8, 2013 and was expected to conclude in 30 to 60 days. This merger will not only create a colossal force but can also craft healthy competition in the $2 billion home service contract industry in U.S.
“We believe HSA uniquely complements our business and will help accelerate our pace of growth in strategic markets,” said Mark Barry, president of American Home Shield. He continued – “Like us, HSA Home Warranty is known for providing reliable, quality service to its customers, and for building strong relationships in the real estate community. We look forward to positioning both companies to deliver even more value to homeowners across the country as a result of this acquisition.”
Upon completion of the deal, HSA is expected to operate as an independent brand under the aegis of AHS. Bob Lehmann, president and founder of HSA Home Warranty, will report to Mark Barry and continue to lead the company from its headquarters in Madison, WI.
On this momentous announcement, Bob says “The HSA team has built a strong legacy in this industry, and I’m excited about the opportunities we believe this acquisition will bring to our business, our customers, and our real estate clients. I am proud of where we are today, and we are delivering on our commitment to position our company for continued growth.”
About American Home Shield
American Home Shield is the pioneer in the industry, servicing more than 1.7 million customers across 49 states. In addition to its core focus on home protection plans, the company also issues and administers preventive maintenance contracts on major home systems and appliances in 48 states across the country. The Memphis-based company operates three customer service centers, employs approximately 1,600 employees and has a national contractor network made up of more than 15,000 independent home-service contractors, which includes more than 45,000 technicians.
About HSA Home Warranty
HSA provides comprehensive, affordable appliance protection plans and Errors and Omissions insurance. Since 1984, real estate professionals, homeowners and service contractors have partnered with HSA for coverage on home appliances and systems.
The home warranty coverage depends on where you live and the items that are usually covered include Central Air Conditioning, Central Heating Systems, Kitchen Appliances, Clothes Washer, Dryer, Electrical System, Plumbing and Roof Leaks.
An AHS Home Warranty usually covers major components like large home systems like HVAC, hot water heaters, electrical, plumbing and more. It also covers appliances like washers, refrigerators, stoves, and dryers.
Mold growth is usually caused by water leakage or poor ventilation and most policies do not cover all kinds of water damage. Usually, standard homeowners policies do not cover water damage caused by maintenance issues.
Basic home warranty costs around $350 to $500 a year or more and these typically cover kitchen appliances, water heaters, plumbing, heating and much more. It also covers sump pump, whirlpool tub, ceiling, and exhaust fans.
You can choose a home warranty by doing the following:
- Determine the company that is licensed by the state.
- Select a company wherein the service fees fit your budget.
- Review the policy offered by the company and check if it covers all your needs.
- Read the fine print of each company’s policy and check the policy’s coverage.