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Choice Home Warranty Review 2022
By Chris Ozarowski MONEY RESEARCH COLLECTIVE
- No inspection required before service
- Repairs are guaranteed for 90 days
- Available in 49 states
- Affordable premiums
- No custom plans, only add-ons
- Excludes alternate energy systems
- Low BBB rating
- Anti-consumer terms
Whether you’re looking to add home warranty protection or switch home warranty providers, you should know all the facts before committing to a new service contract. The right home warranty plan will protect you from costly repairs and replacements. This article provides a complete guide to and review of Choice Home Warranty, including its home warranty coverage plans, limitations, and pros and cons compared to competitors.
Pros explained
When choosing a home warranty, it’s smart to look at how a provider compares to others in the field. Here are some advantages that Choice Home Warranty has over its competition.
No inspection required before making service requests
Choice Home Warranty doesn’t require customers to provide a home inspection before they sign up for a home warranty plan or make service requests for systems and appliances, including HVAC systems. In comparison, AFC Home Club, for example, requires annual inspections as a condition of purchasing a warranty with HVAC coverage.
Home inspections are often valid only for a short period of a few days or weeks. If your home hasn’t had an inspection recently, and your home warranty provider requires one, you must pay the inspection fee again and wait until you receive the results. Average home inspection fees vary by state, costing between $250 and $400.
Repairs are guaranteed for 90 days
Choice Home Warranty appliance insurance guarantees repairs of appliances for 90 days. If the appliance breaks again in less than 90 days from the original repair date, Choice Home Warranty will send a service technician to repair it at no extra cost. In comparison, other home warranty companies, such as American Home Shield, only guarantee repairs for 30 days.
Available in almost every state
Service contracts from Choice Home Warranty are available in 49 of the 50 U.S. states, providing services in California through a local licensed home protection company. Washington is the only state where Choice Home Warranty’s services are unavailable. Other home warranty providers offer less extensive coverage. For example, Select Home Warranty operates in 47 states, and First American does business in only 35 states.
Affordable service fees and premiums
The exact costs of Choice Home Warranty plans are calculated depending on your location and home size. Customers can get a custom quote on the Choice Home Warranty website. While your exact costs may vary, Choice Home Warranty monthly premiums range from $35 to $55 per month. Their service call fee is $85.
In comparison, Liberty Home Guard charges monthly premiums between $50 and $80, with service fees ranging from $65 to $125.
Cons explained
Choice Home Warranty plans also have some disadvantages. Here are some of the ones that stood out to us.
Lack of custom plans
While Choice Home Warranty offers a variety of optional add-ons for items such as pools and central vacuum systems, they offer their basic and total plans without the option to remove coverage for items you don’t want to cover. This means you can’t create a cheaper custom plan that only covers a few items in your home.
Exclusion of alternative energy systems
Choice Home Warranty doesn’t cover alternative energy systems such as solar panels or geothermal heating and cooling systems. This may be a disadvantage if you have or are looking to install alternative energy systems in your home.
Pattern of complaints suggesting inaccurate charges
The BBB contacted Choice Home Warranty in February 2022 about a possible pattern of customer complaints. The BBB stated that multiple customers reported that payments continued to be taken from their accounts after they had canceled their home warranty plans. Customers also said that they had difficulty getting the payments refunded.
In response, Choice Home Warranty said:
“To ensure that your concern is adequately addressed, we have had conversations with all staff who handle cancellations. We reminded our staff to process cancellations promptly upon request. We also reminded our staff to issue refunds if a customer cancels and we inadvertently charge their account after the date of cancellation.”
The company has a 100% response rate for BBB customer complaints.
Anti-consumer terms
Like many other home warranty companies, Choice Home Warranty imposes several terms and conditions that aren’t consumer-friendly. By entering into a contract with Choice Home Warranty, you waive all rights to claim attorneys’ fees and consequential or punitive damages in any claim you might have against the company. You also agree to waive your right to sue Choice Home Warranty or participate in any class action lawsuit, and you must arbitrate your claim through a private party chosen by the company.
Choice Home Warranty also includes language in its contracts that protects them from any liability for negligence or negative conduct by their chosen service providers. If a contractor causes damage (incidental or otherwise) to your property, you cannot hold Choice Home Warranty liable.
Finally, it takes 30 days after purchase for your coverage to go into effect unless you submit proof of prior coverage through another carrier showing no lapse. In other words, for the first month of your contract, you’re required to pay but receive no coverage.
Choice Home Warranty coverage plan options
Choice Home Warranty offers two levels of coverage: the Basic plan and the Total plan. Customers can add protection for individual systems and appliances such as pools, septic tanks and sump pumps.
Basic plan
The basic Choice Home Warranty plan covers most major home systems and appliances, and it may be a good fit for many homeowners. The items included in this plan, with limits, are
- Heating systems and ducts
- Plumbing systems
- Electrical systems
- Water heaters
- Kitchen appliances, including your oven, range, stove, cooktop, dishwasher and built-in microwave
- Garbage disposals
- Whirlpool bathtubs
- Plumbing stoppages
- Garage door openers
- Exhaust fans
- Ceiling fans
If one of these systems breaks down, you can contact Choice Home Warranty, which will pass your information to a service provider within four hours. Once you’ve accepted the time and date for your service appointment, a technician will repair the system or appliance. Choice will pay to repair or replace the malfunctioning unit if it’s covered under your Choice Home Warranty plan.
You must pay a service call fee of $85, specified in your Choice Home Warranty contract, for every service request you make.
Total plan
You can purchase the Choice Home Warranty Total plan if you want to protect additional appliances. The total plan encompasses everything included in the Basic plan, as well as the following:
- Central air conditioning
- Refrigerator
- Clothes washer
- Clothes dryer
Optional coverage
Choice Home Warranty allows you to add optional coverage for items not included in the Basic or Total plans. The company currently offers the following add-ons:
- Pool and spa
- Central vacuum system
- Well pump
- Limited roof leak
- Sump pump
- Septic system and septic tanks
- Second refrigerator or a stand-alone freezer
Coverage limits and costs for each plan
Choice Home Warranty’s pricing for each plan is based on your home’s size and location and any add-ons you request. To find out how much Choice Home Warranty costs for your home, you can request a quote on the Choice Home Warranty website. Choice Home Warranty offers customers one free month when they make a single payment upfront for an annual home warranty plan.
Some components may not be protected even if an item is listed as covered in the home warranty plan. Exact details about the coverage for every item are given in the service agreement. Here are some examples of exclusions in the Basic and Total plans:
- Plumbing stoppage: A plumbing stoppage caused by damaged drains, vents or sewer lines outside the home’s main foundation will not be covered.
- Electrical: Circuit overload, damage to all components and wiring to or from a solar power system, generator or an energy management system are excluded from the warranty.
- Water heater: Fuel tanks, secondary holding or storage tanks, vents, flues, thermal expansion tanks, energy management systems and units exceeding 75 gallons are outside the scope of the warranty.
- Refrigerator: Audiovisual equipment and internet connection components are not covered.
- Heating and ductwork: Outside or underground piping are not included. Neither are well pumps nor pump components for geothermal or water source heat pumps. Fuel storage tanks, chimneys, pellet stoves, wood stoves, insulation, damper motors, service valves and collapsed or clogged ductwork are not covered by the Basic or Total plan.
Choice Home Warranty’s optional add-ons also come with limitations. Some examples include:
- Pool and spa equipment exclusions: Portable or above-ground pools or spas are not covered. Lights, liners, jets, pool covers, auxiliary pumps, heat pumps, saltwater generators, ornamental fountains, and waterfalls with pumping systems are also excluded. Built-in or detachable cleaning equipment, including pool sweeps, pop-up heads, turbo valves, skimmers, chlorinators and ionizers, are not covered.
- Limited roof leak: Choice Home Warranty limits coverage for limited roof leaks to $500 for access, diagnosis and repair. Protection does not apply if the roof must be partially or completely replaced to complete the repair.
Choice Home Warranty coverage starts 30 days after the warranty contract is signed, and pre-existing conditions — known or unknown — are not included. If something in your house is already broken or breaks during the 30 days after you sign the contract, Choice Home Warranty may refuse to pay for repairs.
All systems covered must become inoperable through regular wear and tear. If Choice Home Warranty determines that the malfunction was caused by misuse, abuse, neglect or physical damage, they may deny a claim. In that case, you may request a review, during which Choice Home Warranty reserves the right to request routine maintenance records and home inspection reports to inform their decision.
Choice Home Warranty has limits on yearly repairs. Their home warranty service agreement states that their maximum liability is $3,000 per covered item in a 12-month period. Coverage also does not extend to commercial property.
Customer satisfaction
Choice Home Warranty gets mixed reviews online. Some customers complain about customer service, excessive telemarketing, long wait times for repairs and the company denying service requests upon discovering that a part is no longer manufactured.
While most customers have left five-star reviews on Trustpilot, there are enough negative reviews to lower Choice Home Warranty’s TrustScore to 3.8 stars. Satisfied customers appreciated the convenience factor of online claim submissions, but many were frustrated by denied claims, unreliability, poor communication and low payouts.
Legal action and consumer ratings
The State of Arizona filed a civil complaint against Choice Home Warranty in 2019, claiming it violated its Consumer Fraud Act. According to the plaintiffs, Choice Home Warranty “provided a ‘service contract’ riddled with exclusions, denied claims for spurious reasons and paid consumers a fraction of the cost of repair or replacement, if anything. [The provider] collected millions of dollars in revenue from consumers, but frequently refused to follow through on their advertised promises.”
The complaint alleges that the provider used deceptive advertising and misrepresented their ratings. One television ad, narrated by legendary boxer George Foreman, claimed that policyholders would “never pay for covered home repairs again.” On Choice Home Warranty’s website, the complaint pointed out the provider touted a five-star Trustpilot rating despite having one closer to four. The civil suit is still ongoing.
Additionally, Choice Home Warranty had to pay a $780,000 settlement in 2015 for allegedly misleading customers about coverage limitations. In a statement regarding the case, Attorney General John J. Hoffman said:
“Despite the representations in their contracts, these defendants allegedly used creative and deceptive means to deny their customers’ claims.”
The average customer review on the Better Business Bureau’s (BBB) website is 1.06 out of five. Choice Home Warranty has been given a C rating by the BBB, which is an improvement from August 2022, when it had a D rating. It’s not BBB-accredited.
Is Choice Home Warranty right for you?
Whether you choose Choice Home Warranty or a different provider, having a home warranty can save you thousands of dollars in repair fees if your home systems break down. Choice Home Warranty may be a good fit if you have a home with all the systems and appliances their plans cover or if you’re looking for a home warranty that doesn’t require a valid home inspection. Keep in mind, however, that Choice Home Warranty has a less-than-stellar reputation and is still under investigation by the State of Arizona. As a result, it may not be the optimal choice for your needs.
If you’re interested in alternatives to Choice Home Warranty, look at the five best home warranties for 2022.
