Choice Home Warranty Review 2024

Choice Home Warranty (CHW) helps homeowners plan for unexpected household repairs with appliance service contracts. It has some unique options that set it apart from other home warranty companies. Here's what we found out in our research.

Choice Home Warranty offers two service plans covering specific appliances, and signing up for either one might have you paying for coverage for items that your home doesn’t even have, like a whirlpool bathtub or a built-in microwave.

Like many home warranty companies, Choice Home Warranty charges you a membership fee and a service fee. The membership fee is for coverage. Then, each time you file a claim, you pay a service fee. 

I contacted Choice Home Warranty for a quote. The Basic Plan would cost $46.67 per month or $560 per year, if I wanted to pay for it all at once. The Total Plan wasn't that much more expensive. It would cost $55 per month or $660 per year. Both plans have a service fee of $100.

The difference between the two plans is that Basic doesn't cover air conditioning systems, refrigerators, washers, or dryers. Those things are highly likely to break down in the common home, so the Total Plan is probably the better option. Here's what's covered with each plan:

Basic Plan

• Heating system
• Electrical system
• Plumbing system
• Plumbing stoppage
• Water heater
• Whirlpool bathtub
• Oven / range / stove
• Cooktop
• Dishwasher
• Built-in microwave
• Garbage disposal
• Ductwork
• Garage door opener
• Ceiling and exhaust fans

Total Plan

• Air conditioning system
• Heating system
• Electrical system
• Plumbing system
• Plumbing stoppage
• Water heater
• Whirlpool bathtub
• Refrigerator
• Oven / range / stove
• Cooktop
• Dishwasher
• Built-in microwave
• Garbage disposal
• Clothes washer
• Clothes dryer
• Ductwork
• Garage door opener
• Ceiling and exhaust fans

You can also add extra coverage to either plan, a la carte. Here's what you can add and the cost you'll pay for each one per month:

• Pool-spa: $15.00
• Well pump: $8.33
• Central vacuum: $3.33
• Limited roof leak: $5.83
• Second refrigerator: $3.33
• Stand-alone freezer: $3.33
• Sump pump: $3.33
• Additional spa: $15.00
• Septic system: $10.00
• Septic tank pumping: $5.42
• Sprinkler system: $8.33

In our research, we found Choice Home Warranty costs a little more than its competitors. It also offers only one service fee option. While that may be a problem for some, the simplicity of this home warranty company may be worth a few extra dollars.

When you sign a contract with Choice Home Warranty, you’re essentially signing up for an extended limited warranty on your home’s appliances and systems. You can pay for a one-year warranty up front or you can choose to pay in monthly installments.

Within its warranty plans, if a covered appliance breaks down—like a water heater, for example—you’ll file a claim with Choice Home Warranty, and the company will have a local service professional call you to set up an appointment.

You’ll pay a flat service fee to the service professional at the time of service, and if the repair is covered under your contract, you’ll pay nothing else for the needed repairs or replacement. Keep in mind, though, that pre-existing conditions aren’t covered under warranty.

Unlike some competitors, Choice Home Warranty doesn't require a home inspection before you can get coverage for your home’s systems and appliances. However, a close study of the CHW contract reveals quite a few appliance components and potential repair issues that the warranty doesn’t cover, like garage door tracks.

CHW also doesn't cover:

• Routine maintenance or repairs due to misuse, abuse, or physical damage (like dents or scratches)
• Upgrades or modifications due to incompatibility
• Manufacturer’s recalls or defects under warranty
• Code violations or cost to meet new building requirements
• Permits
• Electronic energy management, lighting systems, and solar systems
• Disposal fees
• Service provider's negligence or conduct
• Commercial properties or equipment
• Delays due to uncontrollable events (e.g. labor strikes, pandemics)
• Attorney fees, indirect, or punitive damages

This is pretty common with home warranty companies. Choice Home Warranty has fewer exceptions and limitations than we've seen in other home warranty contracts, though.

CHW also has "caps" on how much they will cover on certain items. A cap is how much a home warranty will pay to fix or replace an appliance or system that's covered in your policy. This is all laid out in your contract, but here's the information we gathered from the company:

• They will pay up to $3,000 to repair or replace an item, as long as they don't list a lower cap in your contract.
• Limited roof leaks are covered up to $500.
• Well pump coverage is capped at $500 for diagnosis and repairs.
• Septic tank pumping is covered up to $250.
• Septic systems are capped at $500.
• Sprinkler systems are covered for up to $500.
• Stand-alone ice makers have a cap of $500.
• Trash compactors are covered for up to $500.

Two things stand out about Choice Home Warranty's customer service: its 24/7 claims hotline and work guarantee. But there's some not so great stuff. Here's the good and the bad.

The good: You can call to arrange a service call anytime, day or night, year-round. And CHW offers a 30-day guarantee. If your repair breaks within 30 days, they will waive the service fee to send someone out to fix it.

Choice Home Warranty seems to be liked by its customers, too. On Trustpilot, 60% of the customer reviews give the company five stars.

The bad: Choice Home Warranty is in a bit of legal trouble.

In October 2019, the Arizona Attorney General's office filed a consumer fraud lawsuit against the company, claiming that Choice has collected millions in premiums from Arizona citizens without delivering the services promised.¹ This lawsuit is currently ongoing.

Practices like contract exclusions, payment caps, delayed service response, and claim denials based on subjective things like preexisting conditions are among the reasons for the suit.

We strongly urge consumers to read all the fine print before purchasing any home warranty policy. After dozens of hours of research, I've found that almost all home warranty companies typically have similar limitations and exclusions in their contracts.

You can usually avoid a lot of trouble by knowing what your contract covers and any stipulations that may get your claim denied before you sign it. Home warranty companies often have sample contracts online that you can peruse while shopping for a home warranty company.

Choice Home Warranty surprised us with how few exceptions and limitations it has in its contract when compared with other home warranty companies. Its prices are also on par with its competitors. Another thing we like is that the plans are simple and you can add on any extras you need.

As with any home warranty company, though, be sure to read the contract and understand what you're signing.

To evaluate Choice Home Warranty, we spent dozens of hours studying the CHW website and contracts, reading customer reviews of the company, researching competitors, and digging deeper into some of the claims against the company. We also contacted CHW ourselves to learn more about plans, pricing, and customer service. To find out more about our evaluation process, check out our methodology.

• What You Need to Know About Home Warranties
• 10 Surprising Things Not Covered by Your Home Warranty
• What Is Homeowners Insurance?
• 5 Things Your Homeowners Insurance Might Not Cover
• Tips for Protecting Your Home During a Remodel

1. Arizona Attorney General Mark Brnovich, "AG Brnovich Files Consumer Fraud Lawsuit Against Home Warranty Company," October 2, 2019. Accessed October 08, 2024.
2. Choice Home Warranty, "Terms of Service Agreement Choice Home Warranty." Accessed October 08, 2024.
3. Choice Home Warranty, "Home Warranty Questions." Accessed October 08, 2024.
4. Trustpilot, "Choice Home Warranty." Accessed October 08, 2024.
5. Trustpilot, "Choice Home Warranty, Reviews." Accessed October 08, 2024.