Press Release

New Extended Service Agreements Offer Growth Opportunities to HVAC Contractors

October 3, 2012 6:00 PM EDT

Residential heating and air conditioning contractors who are working to grow their businesses and develop a loyal customer base will be glad to know there is a new product on the market to help them reach these goals: extended service agreements from American Home Shield.

These plans offer five-year labor coverage on newly installed heating and air conditioning systems, with an annual renewal option available in years six through 10. Commissions are provided at the point of sales, as well as at renewal.

Matt Wendl, director of business development for American Home Shield, said that company officials consulted with a variety of contractors and industry experts to build a flexible product for contractors and consumers alike.

“We went to great lengths to understand what contractors and customers need in an extended service agreement for their heating and air conditioning systems. This is unlike any product we’ve offered before and we have received great feedback from contractors as we’ve previewed it with them and they’ve begun offering it to their customers.”

Contractors participating in this program are not required to be part of American Home Shield’s home warranty contractor network. This extended service agreement program is currently available to contractors in 32 states across the country and the company expects to complete its nationwide rollout in a matter of months.

These plans have flexible pricing options on hourly labor reimbursement rates ranging from $85 to $125 and provide selling contractors the first opportunity to provide service on all related claims.

“When we install a new heating and air conditioning system in a home, being able to also provide an extended service agreement on that system brings tremendous value to our customers,” said Scott Edwards, Oxford Heating and Air contractor. “Providing these plans helps bring that extra peace of mind by protecting that customer’s purchase, which in turn helps us build that trusting relationship and build our business by positive customer referrals.”

This product will not be directly available to consumers through American Home Shield. Instead, the extended service agreements will be offered to consumers by independent residential heating and air conditioning contractors as the equipment is being purchased and professionally installed.

American Home Shield, a business unit of The ServiceMaster Company, is the nation’s leading provider of home warranties, an industry founded more than 40 years ago. However, the company’s expansion into the extended service arena is based on a much different business model, which Wendl said creates an entirely new experience and opportunities for contractors.

He also believes it’s a natural opportunity for the company which currently serves more than 1.3 million home protection plan customers. “This product is a great fit for contractors, consumers and our company alike. We’re providing homeowners with valuable protection on their new heating or air conditioning systems, helping contractors grow their retail business, and continuing to expand our presence in the home repair and maintenance industry.”

Contractors interested in learning more about American Home Shield’s new extended service agreements should visit

About American Home Shield

American Home Shield founded the home warranty industry in 1971 and remains an industry leader, servicing more than 1.3 million customers across 49 states. In addition to its core focus on home protection plans, the company also issues and administers preventative 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 over 10,000 independent home-service contractors. American Home Shield is a subsidiary of The ServiceMaster Company, one of the world's largest residential and commercial service networks. The company’s brands include Terminix, TruGreen, American Home Shield, ServiceMaster Clean, Merry Maids, Furniture Medic and AmeriSpec.

About ServiceMaster

With a global network of more than 6,900 company-owned, franchised and licensed locations, Memphis-based ServiceMaster is one of the world's largest residential and commercial service networks. The company's high-profile brands are Terminix, TruGreen, American Home Shield, ServiceMaster Clean, Merry Maids, Furniture Medic and AmeriSpec. Through approximately 21,000 corporate associates and a franchise network that independently employs over 31,000 additional people, the ServiceMaster family of brands provided services and products to approximately 8.4 million customers during the last twelve months. Our market-leading brands provide a range of residential and commercial services including termite and pest control; lawn, tree and shrub care; home warranties and preventative maintenance contracts; furniture repair; home inspections; home cleaning; janitorial services; and disaster restoration. Go to for more information about

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