Choice Home Warranty Review

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Choice Home Warranty

Choice Home Warranty 

Choice Home Warranty is a very large and established company in the home warranty industry. The company offers four plans for homeowners to choose from, each of which offers comprehensive coverage. However, buyers should be aware that the company has received numerous customer complaints and been the subject of a complaint from the State of Arizona.

Based on our review of over a dozen home warranty companies, Choice Home Warranty was not one of the best companies we found. To see other options that may be better, visit our list of the best home warranty companies.

  • Pros and Cons
  • Key Takeaways
  • Company Overview
Pros and Cons
Pros
  • Offers 5% promotional discount

  • Reasonable prices with a lot of available coverage for the money

  • Provides add-on coverage for items other companies may not offer

Cons
  • Charges a $30 surcharge when paid by the month

  • A pending lawsuit by the state of Arizona that alleges false promises were made by the company

  • Payout cap is per covered item per contract term

Key Takeaways
  • The company is a giant in the home warranty industry 
  • Rates are generally average for the industry
  • Customers pay a $30 surcharge when they pay by the month  
  • The company has a number of complaints from customers through the BBB, as well as a complaint from the State of Arizona 
  • Customers can choose from four available plans and select either a $75 or $100 service fee
Company Overview

Choice Home Warranty is a home warranty company established in 2008 with its headquarters in Edison, New Jersey. The company has handled more than three million service requests from its customers, and their warranty plans have covered more than one million homes in the United States. To make the claims process easier, Choice Home Warranty assigns your claim to a dedicated team of two to three representatives who are there to help you every step of the way. 

  • Year Founded 2008
  • Available Plans Basic Plan, Total Plan
  • Amount of coverage Up to $1,500 (systems plan); Appliance plan payout cap not available
  • Length of Contract 12 months
  • Average yearly cost $500 to $600
  • Network More than 15,000 contractors
  • Customer support 24-hour call center or make your claim online
  • Customer support phone number 888-531-5403
  • Recall period after repairs 90 days parts; 30 days labor
  • Days before coverage starts 30-day waiting period
  • Website https://www.choicehomewarranty.com/

Choice Home Warranty is a national home warranty provider with protection plans to help cover the repair or replacement costs of major home systems and appliances. Customers can also purchase optional coverage riders for specific systems such as pools, spas, well pumps, and septic systems. Its rates are considered average for the industry and the company frequently offers promotional discounts.

The company has received complaints from customers and been the subject of a complaint from the State of Arizona.

We reviewed Choice's pricing structure as well as its coverage and caps to help you understand what protection you can get for your money. Read on to see our full take on Choice Home Warranty and whether they offer the right home plan for you.  

Available Plans

Choice Home Warranty has two plans available for homeowners to select from, the Basic Plan and the more comprehensive Total Plan. The company also has a real estate professional portal for agents and offers real estate plans designed specifically for professionals. Since prices sometimes vary from state to state, we received quotes for the states of Colorado, Georgia, Texas, and New York. We also asked for a quote for California, but service is not available in that area.

Choice Home Warranty Plan Basic Plan Total Plan
Clothes Dryer  
Clothes Washer  
Refrigerator  
Air Conditioner System  
Heating System
Water Heater
Electrical System
Plumbing System
Plumbing Stoppage
Oven / Range / Stove
Built-in Microwave
Cooktop
Dishwasher
Garbage Disposal
Ceiling & Exhaust Fans
Ductwork
Garage Door Opener
Whirlpool Bathtub

Optional Coverage:

Optional Coverage Price
Pool / Spa / Well Pump $180.00
Well Pump $100.00
Central Vacuum $40.00
Limited Roof Leak $70.00
Second Refrigerator $40.00
Stand Alone Freezer $40.00
Sump Pump $40.00
Additional Spa $180.00
Septic System $120.00
Septic Tank Pumping $65.00

Plan Pricing

Choice Home Warranty's two consumer plans cover a wide variety of household systems and appliances regardless of which plan you purchase. Although you can get a free quote online, you are required to provide the property information before you can see your quote. You can also expect to hear from a customer service representative almost immediately after you provide your information.

Choice isn’t cheap but offers great value because its coverage is comprehensive.

Unlike some companies, Choice Home Warranty only gives you one option for your trade service call fee, which is $85 per claim for each visit by an approved service provider. They also charge a surcharge for monthly service but then offer a discount, which more or less cancels out the charge. The best deal is to pay for your contract annually to get the discount and save on the surcharge.

  Basic Plan Total Plan
Annual Base Cost $495 per year $600 per year
Surcharge on Monthly Payments $30 per month $30 per month
Total Monthly Cost $71.69 per month* $80 per month*

*Choice Home Warranty appears to run monthly promotions that may significantly lower the monthly cost and surcharge.

Plan Exclusions

Although Choice Home Warranty covers breakdowns for appliances and major home systems, there are a lot of exclusions. While this is normal with most warranty plans, what you believe is covered and what actually is covered becomes a little confusing. It is extremely important to read your policy thoroughly to understand exactly what will be paid for by the policy and what will be paid out of pocket. 

As an example, while the company states that all components and parts of water heaters are included, further reading shows that if your water heater fails due to rust, corrosion, or sediments, your repair is not covered. You can see a complete list of coverages and exclusions by viewing a version of Choice Home Warranty’s User Agreement.

Payout Caps

Payout caps vary depending on the system or appliance. As an example, there is a maximum payout of $1,500 per covered item per contract term for heating systems or built-in wall units, but only $500 per contract term for electrical systems. We found that this is about average for industry standards on most covered items. Since we could not find a payout cap for appliances, we recommend that you thoroughly read through your contract so that you understand the payout caps and limitations.

Repair Times

Once you have made a request for a repair online, you can typically expect authorization for a major repair within 48 hours. The company uses a network of providers and you cannot choose your own. This also is in line with industry standards. Choice Home Warranty does note that in the event of an emergency, they will attempt to expedite repairs, but they also state that they will determine what constitutes an emergency; there is no set definition.

Customer Service and Claims

The service agreement for Choice Home Warranty states that you must contact them by phone as soon as a problem occurs. Once a claim is made, the process starts immediately and you can expect authorization within 48 hours during normal business hours and within four days during weekends and holidays.

Complaints and Third-Party Assessments

According to the Better Business Bureau, on October 2, 2019, the Arizona Attorney General’s office filed a consumer fraud lawsuit against Choice Home Warranty for allegedly making false promises to consumers who purchased a home warranty policy. The lawsuit alleges that the company collected millions from Arizona consumers but used contract exclusions, payment caps, and bad-faith refusals to avoid paying for repairs. The case is currently pending.

The company has a BBB Rating of B-. This is due to a high number of complaints that the company denied service through contract exclusions, which matches the complaint filed by the state of Arizona.

Competition: Home Warranty of America vs. Choice Home Warranty

We compared Choice Home Warranty with Home Warranty of America to get a sense of overall quality and satisfaction. Both companies have a similar price range, have similar coverage, and provide around-the-clock service.

Home Warranty of America has four plans to choose from compared to the two plans offered by Choice Home Warranty. However, Home Warranty of America actually offers the same two plans with either a $75 or $100 service fee to offset costs while Choice Home Warranty has a flat $85 service fee regardless of which of the two plans you choose.

When you look at both companies side-by-side, there is not a lot of difference when comparing the cost of Home Warranty of America ($494) versus Choice Home Warranty ($500) and the overall coverage that each company provides.

The determining factor that puts Choice Home Warranty slightly on top, however, is the additional coverage that is offered. The company offers limited roof leak repair coverage, for example, which is not offered by many other home warranty companies.

  Home Warranty of America Choice Home Warranty
Cost $494 $500
# of Plans Available Four Two
Support 24-hour call center or make your claim online 24-hour call center or make your claim online
Trade Service Fee $75 / $100 $85
National Availability Available in all states Not available in California or Washington
Verdict

While we take into account that Choice Home Warranty has been around for a long time and is well-known in the home warranty industry, the lawsuit filed by the Attorney General for the state of Arizona against the company is a strong point of concern. This, along with the complaints that are mentioned, is something we feel should be taken into consideration before making a purchase.

That being said, there are many who like the company because of the robust coverage provided for those with a limited budget. There are additional coverages available on items that other companies generally do not offer. This makes Choice Home Warranty a good option for anyone seeking to get the maximum cost-for-coverage.

Methodology

When making an evaluation of a company’s warranty plans, we use our home warranty review methodology. We consider not only the monthly cost you will pay but also the overall costs, which may include service fees and price add-ons. In addition, we look at exclusions to coverage, complaints filed, how they stack up to the competition in price, type of coverage, price caps, and overall customer satisfaction.

Article Sources

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  1. Choice Home Warranty. "What is a Home Warranty?" Accessed April 24, 2020.

  2. Choice Home Warranty. "About Us." Accessed April 28, 2020.

  3. Choice Home Warranty. "What's Covered." Accessed April 23, 2020.

  4. Choice Home Warranty. "Get a Quote." Accessed April 23, 2020.

  5. Choice Home Warranty. "User Agreement: D. COVERAGE." Accessed April 24, 2020.

  6. Choice Home Warranty. "Request Service." Accessed April 24, 2020.

  7. Choice Home Warranty. "User Agreement: C. SERVICE CALLS." Accessed April 24, 2020.

  8. Better Business Bureau. "Arizona Attorney General Files Consumer Fraud Lawsuit." Accessed April 23, 2020.