American Home Shield Denied Hvac Repair Despite Coverage, Then Offered $500 To Settle A $6,000 Claim — Ohio, Small Claims Court Filed

Location: Ohio

My central AC system stopped working, so I filed a claim with American Home Shield (AHS) under my ShieldComplete plan. Their first contractor came out and recommended replacing the unit. However, AHS falsely claimed that the contractor reported the system was "working fine" and just old.

I then filed a complaint with the BBB, and AHS sent a second opinion contractor. This second tech diagnosed multiple issues including a failed evaporator coil and depleted refrigerant and also recommended full system replacement. At this point, it was clear the system was totaled.

My ShieldComplete plan includes 100% refrigerant coverage, but AHS responded by telling me I'd owe $1,500 for uncovered exhaust modifications. Based on that and the ongoing misrepresentations, I rejected the offer and requested a cash out. I no longer trust AHS to handle the work.

I hired my own HVAC company to do the replacement. They confirmed the "exhaust modification" AHS claimed would cost $1,500 amounted to removing five screws. That’s it. The replacement cost roughly 15k for a new heating and cooling system.

I threatened legal action if AHS didn’t make it right. They continued to delay, misstate facts and overall made me lose any faith that they wanted to make the situation right.

I eventually filed a small claims lawsuit for $6,000. AHS responded with a $500 settlement offer again falsely claiming that my remaining out-of-pocket costs were due to "uncovered refrigerant costs," even though my plan explicitly covers all refrigerant. They also had never mentioned that part until the latest, before it was always exhaust modifications.

Questions:

1. Can I argue that AHS waived their right to arbitration by engaging in negotiations and failing to file a motion?
2. Should I proceed to court or prepare for arbitration just in case?
3. Does their misrepresentation of plan coverage (e.g., lying about refrigerant and exhaust costs) strengthen my claim?
4. I have a voice memo of the 2nd contractors inspection and what he said should I use that?

Notes: I can give more details if needed. I also had ChatGPT run what i typed and make sure it wouldn't get me in legal trouble by accident.