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Choice Home Warranty Review (2022)

Updated Nov 21, 2022

Updated Nov 21, 2022

Home > Home Warranty > Choice Home Warranty Review (2022)

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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 overall best home warranty option on the market, offering roomy annual coverage caps, reasonable plan pricing, and a reliable nationwide network of over 25,000 pre-screened 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 their own 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.

Why Trust House Method

  • 63 companies reviewed
  • 41 key factors analyzed
  • 2,583 data points parsed
  • 885 homeowners surveyed
  • 57 service contracts scrutinized

House Method’s Experts collected and analyzed 2000+ critical data points to identify what makes a great home warranty company in the eye of the consumer. Our reviews team used this data to assess over 60 home warranty providers for coverage extent, annual cost, and national availability to provide unbiased reviews so homeowners can confidently navigate key decisions about their homes.

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 of these 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 to get a feel for their coverage needs before investing in a higher-level plan. Still, 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, it may be worth the few dollars more per month for the Total Plan.

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

  • 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.
  • Electrical systems: All necessary components and parts, including built-in bathroom exhaust fans, are included in the electrical coverage.

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

  • 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 to the function of clothes washers and dryers.
  • Range/cooktop/oven: All components and parts of your homes’ oven/range/cooktop are covered by Choice home Warranty. Keep in mind that CHW is not responsible for ensuring matching dimensions, brand, or color of any replaced features or items. 

Add-on Options 

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 nine elective add-ons for its policyholders to choose from. These include:

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

Choice Home Warranty Coverage Exclusions

Like any other home warranty company, Choice Home Warranty only covers damage due to normal wear and tear over time. All systems and appliances covered by Choice must be in proper working condition at the time of 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:

  • Improper installations
  • Intentional misuse of the covered item
  • Cosmetic defects, like scratches, dings, or dents
  • Poor or lack of routine maintenance
  • Remediation of mold, mildew, fungus, rot, or other bio-organic growth
  • Corrosion, rust, or sediment
  • Natural disasters (fire, flooding, hurricanes, tornadoes, etc.) or any other scenarios that overlaps with standard home insurance coverage
  • 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 at any time. An administration fee of $50 will be withheld, but you will receive a full refund for the months of coverage you’ve pre-paid for. 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 $45-$53 per month, or $540-$636 per year. Its monthly premiums fall in line 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:

  • Monthly Cost: 
    • Basic Plan: $44-$47
    • Total Plan: $53-$55
  • Annual Cost: 
    • Basic Plan: $510-$570
    • Total Plan: $610-$660
  • Service Fee: $85 per claim
  • Add-ons: $3.33 to $15 per month

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

The typical service fee for home warranties usually falls between $75-$125, 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 work done or cost of the maintenance.

Annual Coverage Caps

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 D.C., excluding Washington. 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 29,372 reviews. 

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

Complaints from Choice Home Warranty Customers

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.

Compare Choice Home Warranty to Other Home Warranties

Superlative
Star Rating
Monthly Cost
Service Fee
Response Time
Payout Limit (per item)
States Not Covered
Best Overall
$46–$55
$85
24-48 hrs.
$3,000
WA
Most Cost-Effective
$52–$58
$60
24-48 hrs.
$250-$3,000
WA,NV,WY,NM
Most Customizable
$35–$75
$75–$125
24-72 hrs.
$6,000
AK
Quickest Service
$50-$63
$60-$90
12-48 hrs.
$500-$2,000
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 excellent customer service and decent coverage at an affordable cost — 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, we believe that 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.

Choice Home Warranty FAQs

How does Choice Home Warranty work?

Once coverage begins, customers can file as many claims as they’d like. They should file a warranty claim when they discover a problem with their covered system or appliance.

After approving your claim (done typically within two to four days), CHW will schedule an appointment with one of its pre-approved service technicians. Customers will pay an $85 service fee to the service technician upon arrival at their home.

If the item cannot be repaired, Choice may agree to replace the system or appliance if the item cannot be repaired. If parts must be ordered, customers will not have to pay a second service call fee upon the technician’s second appointment. Repairs are guaranteed for 90 days, preventing customers from paying a second service call fee should the covered item break again.

Be sure to thoroughly check your service user agreement to know monthly costs/deductibles, service fees, and what your policy covers.

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.

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 Rating Methodology

At House Method, transparency and trust are our most important values for the reader. That’s why we took the time to create an objective rating system and score each home warranty provider according to our methodology.

We’ve done the homework for you and have researched over 50 home warranty companies so you can have the information you need to make the best choice for your home. Additionally, transparency and trust are our most important values for the reader.

That’s why we took the time to create an objective rating system and score each home warranty provider according to our methodology. Our team spent hours on the phone speaking to representatives from each home warranty company to get information right from the source. We also dug into the fine print on each company’s service agreement to make sure no detail was left out.

To make the most of our research, we developed a formula to objectively determine the best home warranty companies based on the following criteria:

  • Plans: Do they provide a variety of plan options? We looked at the number of plans each company offered and the flexibility of adjusting the plan.
  • Prices: How reasonable are the monthly fees and service fees in comparison to the industry average? We compared the costs of each company to competitors.
  • Coverage: How many items are covered in each plan? We looked at the number of items each company covers. We dig into all service contracts available to get all the details.
  • Customer service: How is the customer experience when calling the providers? Based on our phone calls, we were able to judge each company’s customer service.
  • Trust: What do customers rate the company? We looked into what customers are saying about their experience with the company.
  • Nationwide availability: How many states does the company cover? We found the number of states covered by each company.
  • Unique perks: Does the company offer discounts or cover special items? We looked for perks offered by each company that sets them apart from the competition.

How do we keep our data up to date?

We want to make sure we’re providing you, the consumer, with the most current data available for every home warranty company we’ve researched and rated. That takes significant effort but we feel that’s vital to providing you thorough and trustworthy reviews.

With that in mind, we have dedicated staff members who regularly update our database of home warranty research.

For those that want to come home to a house that is comfortable and functioning, a home warranty makes a lot of sense. For the price that a home warranty is offered, you will quickly learn that it is indeed a good value. At an average of around $40 per month, your policy will cost you just under $500 per year.

If you have ever had an appliance or a home system that needs repair, you probably understand quite well that you will quickly reach that $500 mark to get your home back up and running. Take your time to carefully consider your home warranty options, check around for discounts and then give yourself the peace of mind that you deserve.

For more details, check out our affiliate disclosure and rating methodology.

Additional Home Warranty Resources