American Home Shield Contract Verbiage - $250 Code Requirement

[Paul K.]

Hi BP Family,

I have American Home Shield for my current househack. One of the two HVAC units didn't seem to be working and since it's starting to get warm in TX, I quickly submitted a claim through AHS. The technician came out yesterday and determined that there was a bad 4-ton evaporator coil and a few other parts.

I received a notice from AHS saying that only some parts would be covered. After speaking with them on the phone, they were saying that because the repair included items that needed to be brought up to code, they would only be covering $250, citing the following from my contract:

"14. Certain other Covered Item dollar limits:

m. As part of any other applicable Covered Item dollar limit, AHS will pay up to two hundred fifty dollars ($250) total per Agreement Term to correct code violations and/or upgrade to current code requirements when completing AHS-approved repairs or replacements of Covered Items. If AHS is unable to diagnose whether a Covered Item malfunction exists due to an existing code violation, this code violation coverage shall not apply, and you are responsible for correcting the existing code violation in order to allow AHS to conduct such diagnosis."

My interpretation of this is that in addition to the repairs/replacements, if there are codes that need to be corrected or upgraded, AHS will pay up to $250 to bring it up to code. The AHS supervisor was saying that AHS would only cover up to $250 for the entire repair/replacement. The remainder to repair ($1800) would be my responsibility.

Does anyone have any insight or experience with this? I can't delay fixing the HVAC so my plan is to proceed with the repairs and then file through AHS' insurer and/or arbitration.

Thanks in advance!