Home warranty companies provide a cost-effective way for homeowners to protect themselves against the high costs of home repairs or appliance replacements. There are several businesses that offer home warranty contracts and services at a variety of price points. One of these companies is Choice Home Warranty.

It’s important for consumers to know the whole picture about a home warranty company before committing to a contract – so let’s go over the pros and cons of Choice Home Warranty.

Choice Home Warranty’s Business Structure

Choice Home Warranty is set up like the majority of other home warranty companies. Contract holders pay a small monthly fee that ensures protection against the high costs of home system and appliance repairs. Per their website, Choice Home Warranty, “plans offer comprehensive protection against the high cost of repair or replacement of properly maintained major systems and appliances. A policy holder calls our claims center and pays a modest service call fee per claim when a problem or repair need arises.” Several reviews quote this service call fee at around $60 – one of the lowest in the industry.

Interestingly, Choice Home Warranty also has a system in which each contract holder is assigned a small team of 2-3 representatives rather than working with one large department for contract questions, payment issues, or scheduling service calls. This isn’t the norm in the home warranty industry, and gives Choice Home Warranty a personal edge over their competition.

Pricing Structure

Choice Home Warranty has two simple contract options that cover the maintenance and replacement of major home systems and appliances. However, they do specify that their policies only cover well maintained home systems and appliances. Their pricing structures are inexpensive, with the basic plan costing only $34 per month. That being said, their plans aren’t as flexible as those of their competitors, meaning policy holders don’t have the option to hand-pick which appliances or systems their home has, or that they specifically want covered. This one-size- fits-all plan may work for some, however, if they’re looking for broad-scope coverage at a low rate.

The Pros

In general, Choice Home Warranty has one of the lowest-priced contracts and service call fees in the industry. Their total contract costs are between $34-$50 a month (based on general quote evidence and research, some quotes may cost more), and their service call fee has been reported as a flat $60. In comparison to their competitors, that’s fairly inexpensive for a lot of coverage.

Choice Home Warranty also has a large network of technicians, and they clearly state that you can contact your representatives day or night and they will get started on the service claim process for you. Additionally, having a small team of representatives who take care of any service claims or concerns during the duration of your contract is a nice feature. Home warranty companies are notorious for being big, daunting companies who easily give contract holders the run around; so, having a personal connection with your representatives is a positive touch that not many other home warranty companies offer.

Finally, Choice Home Warranty doesn’t require a home inspection before you can start your contract with them. For people looking for coverage on a short timeline, like new homeowners or realtors looking to sell a home, this is a positive aspect of their business.

The Cons

Choice Home Warranty has recently experienced legal issues in New Jersey. They were fined by the state of New Jersey for misleading advertising practices. They essentially advertised that contract holders would never have to pay anything but the service call fee out of pocket for repairs or replacements, which isn’t accurate. As is the case with many home warranty companies, Choice Home Warranty has had clients complain that they purposefully look for loopholes to get out of paying for expensive repairs or replacements. Their contracts are also worded so that there are some gray areas in what is covered. For example, without a home pre-inspection there may not be a reasonable way for them to tell whether or not an appliance or system was well-maintained. They also do not cover certain components or pieces in larger home systems, which can cause an inconvenience should they break or need to be replaced.

Final Notes

Choice Home Warranty’s background isn’t very good – between a poor B+ review from the Better Business Bureau and their legal issues. While customers may be drawn to them because of their low cost, they should remember that fully understanding the terms and conditions of their contract is necessary before signing on. If a potential customer wants to avoid the frustration of working with a notoriously difficult company like Choice Home Warranty, they should consider a more reputable home warranty company with fewer negative marks on their record.

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