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.
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.
Learn More: See who made our list of the best home warranty companies.
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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
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
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.
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'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.
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.
*Choice Home Warranty appears to run monthly promotions that may significantly lower the monthly cost and surcharge.
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 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.
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.
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.
How We Review Home Warranties
When making an evaluation of a company’s warranty plans, 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.