Home > Home Warranty > Choice Home Warranty Review (2023)

Choice Home Warranty Review (2023)

Meredith Kucik

By Meredith Kucik

Updated Mar 13, 2023

Meredith Kucik

By Meredith Kucik

Updated Mar 13, 2023

Home > Home Warranty > Choice Home Warranty Review (2023)

We recommend the best products through an independent review process, and advertisers do not influence our picks. We may receive compensation if you visit partners we recommend. Read our advertiser disclosure for more info.

Choice Home Warranty (CHW) provides comprehensive home protection plans that guard against the high cost of repairing or replacing major home systems and appliances. Choice Home Warranty is one of the best home warranty companies in the industry; it has been in operation since 2008 and offers 24/7 customer support to its policyholders. CHW is available in every state except for Washington, serving over 1 million households across the U.S.

Read on to learn about Choice Home Warranty’s pricing, coverage, and customer reviews.

Our Take on Choice Home Warranty

We rated Choice Home Warranty (CHW) with a 9.7 out of 10 — the highest score earned thus far across the 65+ home warranty providers we’ve reviewed. Choice stands out as the best home warranty option on the market, offering roomy annual coverage caps, reasonable plan pricing, and a reliable nationwide network of over 25,000 prescreened contractors.

Our review of Choice Home Warranty assesses how effectively its policies align with the needs of real home warranty customers. We surveyed 800+ homeowners across the country, asking them to share what they consider most important when choosing a home warranty. Here’s how CHW’s coverage compared to their responses:

  • 33% responded that cost is the most important aspect of a home warranty plan. With plans priced at about $51 per month, Choice Home Warranty’s premiums sit almost exactly at the monthly industry average of $51.61 for standard home warranty coverage. 
  • 12% responded with annual payout limits as the most important coverage-specific factor to consider when comparing different plans and providers. Compared to competing providers with annual coverage caps as low as $500, Choice Home Warranty’s $3,000 per-item yearly maximum on covered home appliances and systems allows for ample protection against breakdowns of any size.
  • 9% responded with quality customer service as non-negotiable, and 3% specified the importance of convenient customer support channels. Choice Home Warranty provides personalized service to its customers by assigning each policyholder a small team of representatives. This way, any future issues you may have will be handled by an agent already familiar with your plan and coverage options.

Pros and Cons of Choice Home Warranty

Pros

  • Offers generous $3,000 per-item annual coverage limits for most covered appliances and systems
  • All repairs and replacements are guaranteed for 90 days after the service appointment.
  • New joiners will receive an additional $50 off plus one month of free coverage.
  • Won’t deny coverage for an appliance or system based on age, make, or model

Cons

  • Only offers two main policy options, both of which are combo plans
  • Charges a $50 cancellation fee
  • Customers aren’t allowed to choose their own technician.

Choice Home Warranty Plans and Coverage

Choice Home Warranty splits its coverage between two policy options: the Basic Plan and the Total Plan. Both plans offer comprehensive coverage for a mix of home systems and appliances at different levels.

The Basic Plan covers 14 appliances and systems, including heating, electrical, plumbing, ductwork, dishwashers, garbage disposals, jetted bathtubs, and more. This plan level may be ideal for newer homeowners who want a feel for their coverage needs before investing in a higher-level plan. 

Keep in mind that the Basic Plan doesn’t include air conditioning systems, which can cost up to $600 to repair out of pocket, depending on the issue. If you have an older A/C unit, the Total Plan may be worth a few more dollars per month.

The Total Plan includes 18 appliances and systems, featuring everything listed in the Basic Plan, plus coverage for air conditioning systems, refrigerators, washing machines, and clothes dryers. For roughly $8 more per month, the Total Plan could save you thousands on emergency maintenance for big-ticket appliances and systems throughout your home.

Choice Home Warranty Plans

Here’s how inclusions differ between Choice Home Warranty’s two base plans:

Covered Appliance or SystemThe Basic PlanThe Total Plan
Heating Systems✓✓
Ductwork✓✓
Electrical Systems✓✓
Plumbing Systems✓✓
Plumbing Stoppages✓✓
Hot Water Heaters✓✓
Whirlpool Bathtubs✓✓
Ovens/Ranges/Stoves✓✓
Cooktops✓✓
Dishwashers✓✓
Built-in Microwaves✓✓
Garbage Disposals✓✓
Ceiling and Exhaust Fans✓✓
Garage Door Openers✓✓
Air Conditioning Systems✓
Refrigerators✓
Clothes Washers✓
Clothes Dryers✓

The system’s coverage across both of Choice Home Warranty’s base plans span integral home functions, such as: 

  • Electrical systems: All necessary components and parts, including built-in bathroom exhaust fans and garage door openers, are included in the electrical coverage.
  • HVAC systems: Choice Home Warranty covers all parts and components for air conditioning, heating, and ductwork. It will cover up to two units below 13 SEER and residential, non-portable A/C units only. Coverage includes but is not limited to: ducted, central, electric, wall-mounted, heat pumps, and floor furnace systems.
  • Plumbing systems: Coverage includes stoppages/clogs in sewer lines up to 100 feet from the access point, permanently installed interior sump pumps, toilet tanks and bowls, and built-in whirlpool bathtub motors.

Choice’s Basic Plan covers 14 home appliances, whereas the Total Plan covers 18. Here are the items you’ll be covered for with appliance insurance by Choice Home Warranty:

  • Built-in microwave: All components and parts are covered.
  • Dishwasher: All components and parts are included.
  • Garbage disposal: All components are covered 
  • Range/cooktop/oven: All components and parts of your home’s oven/range/cooktop are covered by Choice Home Warranty. CHW is not responsible for ensuring matching dimensions, brand, or color of any replaced features or items. 
  • Refrigerators: All components and parts necessary to function are covered, including the integral freezer unit, as part of the refrigerator coverage. 
  • Washers and dryers: Each unit has an annual limit of up to $3,000, $6,000 total combined. The contract will cover all components and parts necessary for the function of clothes washers and dryers.
  • Water heater: All components of your water heater are covered. This includes tankless water heaters and circulating pumps. Fuel tanks, secondary holding tanks, vents, flues, thermal expansion tanks, energy management systems, and units that exceed 75 gallons are excluded.

Add-on Options for Choice Home Warranty

Coverage add-ons are optional policy extras that you can purchase to cover other features of your home that aren’t typically included in standard home warranty plans. Choice Home Warranty has 11 elective add-ons for its policyholders to choose from. These include:

  • Central vacuum
  • Limited roof leak repairs
  • Pools and spas (in-ground set-ups only)
  • Septic systems
  • Septic tank pumping
  • Sprinkler systems
  • Stand-alone freezers
  • Stand-alone ice makers
  • Sump pumps
  • Trash compactor
  • Well pumps

Choice Home Warranty Coverage Exclusions

Like any other home warranty company, Choice Home Warranty only covers damage due to normal wear and tear. All systems and appliances covered by Choice must be in proper working condition at sign-up, as issues caused by known pre-existing conditions aren’t eligible for coverage.

Other causes of appliance or system failures that Choice Home Warranty won’t cover include:

  • Corrosion, rust, or sediment
  • Cosmetic defects, like scratches, dings, or dents
  • Improper installations
  • Intentional misuse of the covered item
  • Natural disasters (fire, flooding, hurricanes, tornadoes, etc.) or any other scenarios that overlap with standard home insurance coverage
  • Poor or lack of routine maintenance
  • Remediation of mold, mildew, fungus, rot, or other bio-organic growth
  • Structural components of the covered home (i.e., support beams, foundation, etc.)

Can You Cancel Choice Home Warranty at Any Time?

Choice Home Warranty’s cancellation policy is lenient. Customers can cancel plans anytime, but if you cancel within the first 30 days, you’ll get a refund for your paid Agreement Fee. 

If you cancel after the initial 30 days, an administration fee of $50 will be withheld, but you will receive a full refund for the months of coverage you’ve prepaid. If you decide to pay monthly, you can still cancel at any time, but you’ll have to mail a cancellation notification with your $50 cancellation fee and payment for the last month.

Choice Home Warranty Cost

Choice Home Warranty costs around $44 to $55 per month or $510 to $660 per year. Its monthly premiums align with the industry average of $51.61, according to the 63 home warranty providers we reviewed. 

We secret-shopped for a home warranty policy for a single-family home located in Raleigh, North Carolina, and here’s what Choice Home Warranty offered:

PlanCost Per MonthCost Per Year
Basic Plan$44–$47$510–$570
Total Plan$53–$55$610–$660

This quote includes 13 months (1 month free) and a $50 discount.

The typical service fee for home warranties usually falls between $75 and $125 per claim, and Choice Home Warranty’s service trade call fee of $85 falls in line with the industry standard. The service fee is required for all repair calls, regardless of the work done or the cost of the repairs.

Choice Home Warranty’s add-on coverage costs range from $3.33 to $15 per month, depending on your chosen coverage. These competitive prices for additional coverage make CHW an affordable option if you need to customize your plan.

Annual Coverage Caps for Choice Home Warranty

Choice Home Warranty will cover up to $3,000 per year to access, diagnose, repair, or replace an issue affecting each appliance and system included in either of its base plans. Most of CHW’s optional coverage add-ons have per-item coverage limits of $500, except for septic tanking pumping, which is capped at $250 per year.

For issues like pipe leaks or interior electrical repairs that often occur behind walls, ceilings, floors, etc., Choice will payout no more than $500 per year for costs related to access and restoration. As defined in its sample contract, restoration is limited to returning the access point to a rough finish.

Where Is Choice Home Warranty Available?

Choice Home Warranty is available in 49 states and Washington, D.C., excluding Washington state. If you want to see the best coverage options for where you live, click on your state below:

Choice Home Warranty Reviews

As a consumer, you probably don’t have the time to sit around and sift through the hundreds of Choice Home Warranty customer reviews and feedback left by customers. At House Method, we’ve gone through user complaints, reviews, and ratings of each home warranty company and compiled that information. According to Trustpilot, Choice Home Warranty averages a 3.8/5 star rating based on more than 31,300 reviews. 

Positive Customer Reviews of Choice Home Warranty

Here are a few ratings we’ve pulled from Trustpilot:

“We have been using Choice Home Warranty for nearly a year and their customer service is highly satisfactory. The fast response time is helpful, especially when you are dealing with plumbing issues. We have had three claims filed so far, and the quality of service they have provided was phenomenal. We feel a great sense of security and peace of mind knowing that CHW is there to respond when one of our appliances becomes inoperable. Thank you, CHW!” – Maria C., 08/10/2022

“I was away from home. My wife called me to say the HVAC unit had quit working and it was 103 degrees outside and getting hot inside. I did not have a computer and I was able to get the issue reported by phone. This was around 8:00 PM. CHW responded quickly and was trying to locate me an AC tech within an hour. Then CHW allowed me the opportunity to pick my AC tech. Problem was resolved by 10:00 PM on the same day. My wife is cool and happy now. Thanks CHW! CHW has made a believer out of me!” – Bobby K., 08/05/2022

Negative Customer Reviews of Choice Home Warranty

Here is some feedback from a customer who was not satisfied with their service claim:

“I filed a claim on Monday and it was Friday before anyone came out. He found the problem and the parts will have to be ordered. Probably take a week or longer for them to come and then I don’t know how long it will take for them to get back out here. Can you not find someone that stocks these parts. The tech that came out was very nice and friendly.” – Carolyn H., 10/15/2022

In October 2019, the Arizona attorney general filed a complaint against Choice Home Warranty, alleging consumer fraud and intention to deceive customers through baseless claim denials. Since the onset of the lawsuit, Choice Home Warranty has, however, made a concerted effort to rectify its reputation by approving nearly 90% of the 1.1 million claims filed in 2021.

Choice Home Warranty vs Other Leading Providers

Superlative
Star Rating
Monthly Cost
Service Fee
Response Time
Payout Limit (per item)
States Not Covered
Choice Home Warranty
Visit Site
Best Overall
$46–$55
$85
24-48 hrs.
$3,000
WA
Select Home Warranty
Visit Site
Most Cost-Effective
$52–$58
$60
24-48 hrs.
$250-$3,000
WA,NV,WY,NM
American Home Shield
Visit Site
Most Customizable
$35–$75
$75–$125
24-72 hrs.
$6,000
AK
The Home Service Club
Visit Site
Quickest Service
$50-$63
$60-$90
12-48 hrs.
$500-$2,000
Liberty Home Guard
Visit Site
Most Trustworthy
$70-$80
$75
12-48 hrs.
$500-$2,000
WA,WI

Choice Home Warranty vs. American Home Shield

  • Choice Home Warranty has cheaper policies.
  • AHS covered pre-existing conditioners and rust/corrosion damage.
  • CHW vs. AHS plans: CHW has two plan options, while AHS offers three.
  • AHS offers customizable pricing.
  • CHW doesn’t cover Washington. AHS doesn’t cover Alaska.

Choice Home Warranty vs. Select Home Warranty

  • Both companies have low monthly premiums
  • Select Home Warranty offers an appliance-only and a systems-only plan
  • Select Home Warranty has a lower service fee
  • Choice Home Warranty offers high annual coverage limits

Choice Home Warranty vs. First American Home Warranty

  • First American is not available in 16 states
  • Both companies offer a service fee of $85
  • Both companies offer two combo plans
  • Choice Home Warranty’s policies cover air conditioning

Final Verdict: Is Choice Home Warranty Worth It?

As one of the leading home warranty companies in the industry, Choice Home Warranty provides an affordable cost, excellent customer service and decent coverage — factors we think are necessary to have a positive home warranty experience. 

With two plans under $55 per month, low-end service fees, and annual limits upwards of $3,000, CHW is great for those on a budget. Whether located on the west coast in California or Arizona or out on the east coast in New York or Florida, CHW is an excellent choice for any homeowner.

Although the costs listed above are accurate prices for Choice Home Warranty plans, other factors — like location, size, and type of home — can influence the cost of your policy. We recommend getting a quote from Choice with your ZIP code to get an accurate estimate.

Not sure where to start?

House Method readers get $50 off with Choice!

Get a Quote

Choice Home Warranty FAQs

How does Choice Home Warranty work?

Once coverage begins, you can file as many claims as you’d like. After approving your claim, CHW will schedule an appointment with one of its pre-approved service technicians and you’ll pay an $85 service fee. The service technician will repair or replace your home system or appliance, and CHW will cover the cost of anything under your warranty.

Who owns Choice Home Warranty?

Victor Hakim founded Choice Home Warranty in 2008, though James Mostofi was appointed CEO in June 2021.

Is Freon covered under Choice Home Warranty?

Choice Home Warranty does not cover Freon or other types of A/C refrigerants.

Is CHW transferable?

Yes. Choice Home Warranty is transferable between home sellers and buyers. Many home sellers will purchase a coverage plan to cover repairs while the house is listed and under contract. They can transfer the coverage to the home buyers. This gives anxious home buyers peace of mind that major household components are protected.

Do I need a home inspection before getting Choice Home Warranty?

No. Choice Home Warranty does not require an initial home inspection to determine your sign-up eligibility. Still, choice reserves the right to request maintenance records for your covered appliances and systems to ensure damages are never due to poor routine maintenance.

Choice Home Warranty Company Information

  • Company name: Choice Home Warranty
  • Company type: Private
  • CEO: James E. Mostofi
  • Founding date: 5/28/2009
  • Years in business: 13 years
  • Telephone: 929-400-6164
  • Address: 2147 State Route 27 Fl 4 Edison, NJ 08817-3365
  • State availability: 49 states and Washington, D.C.
  • Service fee: $85
  • BBB Rating: D
  • BBB accreditation: No
  • Number of BBB complaints closed within last three years: 10,091

House Method Home Warranty Ranking Methodology

At House Method, transparency and trust are our most important values for the reader. 

To create this rating system, our team spent hours researching more than 60 companies, analyzing 2500+ key data points, getting the thoughts and opinions of 1000+ homeowners, and speaking to home warranty company representatives directly. We also dug into the fine print on each company’s service agreement to ensure no detail was left out.

We developed an objective home warranty review and rating methodology to score each company based on several criteria. We used a five-point scale with a point index ranging from 0.00 to 1.00. The minimum awardable value is 0.0, whereas 1.00 is the maximum. These numeric points are translated into star ratings using whole-star increments between one and five. 

Here is a quick breakdown of our five core scoring categories: 

  • Coverage (0.4): This category evaluates the scope of protection offered by a home warranty provider. We distinguished between limited and broad coverage to help homeowners identify their home protection needs. We also factor in claim turnaround times, average waiting period lengths, plan types, annual coverage limits, policy exclusions, etc.
  • Cost (0.3): This category considers what home warranty companies charge homeowners monthly, annually, and out-of-pocket. We urge homeowners also to consider the cost-to-value ratio of a home warranty plan.
  • Transparency and Trustworthiness (0.15): This category evaluates home warranty providers based on pending or past legal action, hidden fees, lack of information readily available on the website, exclusions, and more. We consider how upfront a company is to its potential policyholders, which says a lot about its products and services.
  • Customer Support and Satisfaction (.09): This category evaluates the efficacy of a home warranty company’s effort to provide supportive guidance to inquiring customers and how policyholders are satisfied with the assistance they receive. 
  • Customization (.06): This category evaluates the ability of homeowners to adjust and choose their policy details, such as pricing variation, optional add-ons, and the number of plans available.

Other Home Warranty Resources