Choice Home Warranty Review -- Is It Worth It? (2020)

Home Service Research Team
·9 min read

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When searching for a suitable provider to protect your essential appliances, there are numerous factors to consider. It’s crucial to hold a firm understanding regarding a company’s policies for filing a claim, what is covered, and the costs you should expect. Fortunately, a reputable company will make it clear in a copy of its sample contract and through customer service communications.

Our team of dedicated researchers aims to show you the ins and outs of policies available in the home warranty industry. You will learn about common fees, limitations on coverage, and claims processing, so you can make an informed decision before investing.

This review will take a closer look at the group, Choice Home Warranty, which is widely available across the United States and regarded as a quality provider. We rate Choice as the Best for Older Homes.

To get a free quote from Choice Home Warranty, call 800-495-1292 or fill out this simple form online.

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Pros + Cons of Choice Home Warranty

Pros:
✓ Choice Home Warranty offers coverage without conducting a home inspection.
✓ The cost of the most comprehensive plan from the group averages only $526, which is less than the industry average of about $600.

Cons:
☓ The group’s maximum liability of $1,500 may not cover the full price to replace systems like central heating or air conditioning units.
☓ The Arizona Attorney General filed a Consumer Fraud Lawsuit against Choice Home Warranty in October of 2019.

Choice Home Warranty Background

Choice Home Warranty operates in 48 states across America, excluding California and Oklahoma, and has operated since 2008. The home warranty provider shows a C-rating from the Better Business Bureau and is rated just over one star from actual customer reviews. Its profile shows the group has closed 2,120 complaints within the last 12 months.

The company prides itself on its commitment to dedicated customer service that is available 24/7 for claims processing. Choice Home Warranty has currently handled more than 2.5 million service requests and is trusted in over one million homes throughout the United States. Compared to others in the home warranty industry, its fees are competitive and offer comprehensive coverage for most essential home systems and appliances.

Choice Home Warranty Plans

Choice Home Warranty offers two packages of home warranty service that policyholders may choose between. First, the basic plan is the group’s entry-level option, which covers an impressive range of equipment. For complete protection, consumers purchase the total plan, which is more extensive.

Much like others in the home warranty industry, Choice Home Warranty provides a way for homeowners to further customize their coverage by including additional add-ons.

Choice Home Warranty offers coverage for the following optional add-ons:
✔ Pool and Spa
✔ Central Vacuum
✔ Second Refrigerator
✔ Well Pump
✔ Limited Roof Leak
✔ Stand Alone Freezer
✔ Sump Pump
✔ Septic System
✔ Septic Tank Pumping

Keep in mind that you will pay an additional fee to acquire protection for these systems that are outside of the bundled total plan and basic plan.

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What Is Covered by Choice Home Warranty?

The exclusions from Choice Home Warranty are fairly standard throughout the home warranty industry. The group does, however, cover the repair or replacement for necessary repairs caused by normal wear and tear.

Here are some highlights of coverage from the provider’s sample contract:

  • Plumbing Systems: Choice covers leaks and breaks of water, valves for showers or tubs, and stoppages in lines up to 100-feet from an access point.

  • Air Conditioning: CHW covers compressors and condenser coils.

  • Ceiling and Exhaust Fans: Choice covers motors, switches, controls, and bearings.

Before purchasing a home warranty service plan, it’s crucial to analyze a user’s agreement to understand the full extent of coverage.

What Isn’t Covered by Choice Home Warranty?

Many recommend Choice Home Warranty as an effective policy for those who own older homes with aging appliances. When purchasing protection from the group, you won’t be subject to a home inspection, as it doesn’t disqualify coverage based on the age of your home.

However, Choice Home Warranty does exclude pre-existing conditions from its coverage. If you feel like your equipment is old enough to begin experiencing issues, it’s important to purchase coverage before problems exist.

In most cases, Choice Home Warranty requires a 30-day waiting period before coverage begins after you’re approved for a policy.

Other factors that are not covered under a policy with Choice Home Warranty include the following:

  • Cosmetic items like knobs, rollers, handles, and doors.

  • Air conditioning maintenance and associated registers or grills.

  • Sediment build-up or reservoir tanks for water heater coverage.

  • Damage caused by acts of God like theft, fire, and storm damage.

Choice Home Warranty Cost

Of course, if you’re considering a peace of mind warranty to protect your budget, the cost will be a significant factor in your decision. In addition to the actual price of a contract, you should know about additional fees that you’re responsible for under a policy that Choice Home Warranty offers.

Contract Costs

The expenses for a contract vary drastically throughout the home warranty industry. However, our team discovered that, on average, the cost ranges between $300 for basic coverage and $600 for more comprehensive protection.

When researching Choice Home Warranty, we found that their packages range between $36 to $44 per month, or $434 to $526 annually, with a single payment plan. If you decide to purchase any of the optional add-ons, you can expect to pay between $46 to $180 per year.

Service Fees

A service fee is an ordinary expense featured under home warranty plans. The charge is the responsibility of the policyholder, and it’s typically paid directly to a technician once they arrive on the property to address an issue. The average cost for this fee in the home warranty industry generally ranges between $75 to $125. Choice Home Warranty offers a competitive fee of $85 per claim, regardless of the actual cost of the repair or replacement that’s made.

Limitations of Coverage

While Choice Home Warranty offers extensive protection on numerous systems, you should know that the full cost of a repair or replacement isn’t always covered. According to a user agreement, the group states that its liability will, in no event, exceed $1,500 per contract item for access, diagnosis, and repair or replacement.

However, not all systems are protected to the $1,500 coverage cap — ductwork, plumbing, and electrical systems all max out at $500.

Choice Home Warranty Quote Process

Those who are interested in buying a contract from Choice Home Warranty can quickly contact the company for an accurate quote by filling out this online form. During the process, you are required to submit information, including your name, address, and your choice between the total plan and basic plan.

To get a free quote from Choice Home Warranty, call 800-495-1292 or fill out this simple form online.

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A customer service representative will then reach out to you with a price for the policy. While the costs we listed above are the average, some factors like the size of your home and location may cause the amounts to fluctuate.

Choice Home Warranty Claims Process

When filing a claim with Choice Home Warranty, policyholders have two avenues to pursue. The first option is placing a phone call to 888-531-5403 to reach the claims department. Or, users may access their Account Center and submit a claim 24/7

Once an issue reaches claims processing, Choice Home Warranty will dispatch a technician from its network. It’s imperative to avoid hiring your own contractor without prior approval, as the group will not authorize a reimbursement.

Choice Home Warranty Reviews

You can gauge the performance of providers in the home warranty industry by researching its online reputation. Discovering what actual users are saying gives you a new perspective into what you may expect.

When reviewing the rating site, Trustpilot, we found that Choice Home Warranty boasts a four-star rating with over 8,000 comments.

Lester Snellen said, “I filed a claim on Sunday. The repair technician came on Tuesday and quickly replaced the garbage disposal. My claim was handled efficiently and professionally.”

On the contrary, Courtney G. thought the group lacked in claims processing, writing, “Every single claim we have made has been denied, even though the vendors we used were covered and services were covered.”

Our Verdict on Choice Home Warranty

While our research team does recommend Choice Home Warranty as a suitable provider for those with older homes, we find that the company lacks in certain areas. Hence, we name this provider the Best for Older Homes.

To get a free quote from Choice Home Warranty, call 800-495-1292 or fill out this simple form online.

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Other Recommended Provider: American Home Shield

American Home Shield has been a leader in the home warranty industry for nearly 50 years. Formed in 1971, the group has over 30 more years in the business than Choice Home Warranty. With three different packages to choose from, we find that customers can efficiently acquire sufficient coverage.

To get a free quote from American Home Shield, call 844-529-9298 or fill out this online form.

American Home Shield Highlights:

  • Flexible Service Fees: American Home Shield also allows policyholders to choose the cost of their service fee, rather than charge a flat fee like Choice Home Warranty. Under a contract, customers can select an expense of $75 $100, or $125. A higher service fee will lead to a lower annual premium.

  • Available in More States. While Choice Home Warranty is unauthorized to provide warranty in California and Oklahoma, American Home Shield is available in 49 states. The only location without coverage thus far, is Alaska.

  • Higher Coverage Caps. We mentioned before that CHW should never exceed a liability for over $1,500 per covered model during a contract. American Home Shield doubles this coverage cap and protects appliances up to $3,000. Keep in mind, the more extensive coverage is also available for a lower average cost than Choice Home Warranty.