Choice Home Warranty’s monthly prices range from $49.17 to $57.50. These rates are competitive but cost more than the industry average of $43 to $56. The company’s coverage limit of $3,000 is a big deal as it means that it surpasses many competitors by $1,000. Their service fee of $100 remains on the higher side. The company provides detailed protection through Basic and Total plans. However, their BBB rating paints a concerning picture with 1 out of 5 stars from more than 4,500 customer reviews.
A closer look at Choice Home Warranty plans reveals key differences between their offerings. The Basic Plan covers 14 items while the Total Plan protects 18 items for roughly $8 more per month. Choice Home Warranty’s cost structure depends on multiple factors beyond monthly payments. Their strict 30-day waiting period and $500 limits on most add-ons affect the overall value. Potential customers should note the company’s ongoing legal challenges. A consumer protection lawsuit in Arizona addresses fraudulent marketing activities.
This review will explore your actual costs, reveal hidden expenses, and help you determine if Choice Home Warranty provides enough value in 2025 to warrant its price.
Choice Home Warranty Plans 2025: What You Get for Your Money
Choice Home Warranty makes things simple with two protection plans that give homeowners clear options based on their coverage needs. Unlike other companies that offer three or more tiers, CHW keeps it straightforward with just simple and Total Plans. This efficient approach helps homeowners decide faster, though some might find the customization options limited.
Basic Plan vs Total Plan: Key Differences
The simple Plan protects 14 home systems and appliances. This includes heating systems, electrical systems, plumbing, water heaters, ovens, dishwashers, and garbage disposals. You’ll pay about $49.17 per month to protect these core home components.
The Total Plan costs around $57.50 monthly and covers everything from the simple Plan plus four major additions:
- Air conditioning systems
- Refrigerators
- Clothes washers
- Clothes dryers
You pay just $8.33 more each month to protect these four major items. The upgrade makes sense for most homeowners because replacing air conditioning systems and refrigerators can be expensive.
Optional Add-Ons and Their Costs
Choice Home Warranty lets you add more specialized coverage based on your needs:
- Pool/spa equipment: $15.00 monthly
- Well pump: $8.33 monthly
- Central vacuum: $3.33 monthly
- Limited roof leak: $5.83 monthly
- Second refrigerator: $3.33 monthly
- Stand-alone freezer: $3.33 monthly
- Sump pump: $3.33 monthly
- Septic system: $10.00 monthly
- Septic tank pumping: $5.42 monthly
Choice’s website explains that these optional coverages help you “tailor your warranty to cover the systems that matter most”. This becomes valuable when you have specialized equipment or older systems that need extra protection.
Coverage Limits Explained
Choice Home Warranty stands out with its $3,000 coverage limit per item for most systems and appliances. This is a big deal as it means that their cap exceeds other companies who usually offer $2,000 limits. However, some add-on coverages have lower limits:
- Well pump: $500 for diagnosis and repairs
- Limited roof leak: $500 per claim
- Septic tank pumping: $250 per claim
- Septic system: $500 per claim
- Sprinkler system: $500 per claim
- Stand-alone ice makers: $500 per claim
- Trash compactors: $500 per claim
The company’s user agreement states they “will pay up to $500 to provide access to Covered Items through roofs, unobstructed walls, ceilings or floors, concrete covered, embedded, encased or otherwise inaccessible Covered Items”.
Coverage starts 30 days after you pay the agreement fee. You might skip this waiting period if you can prove prior coverage without gaps through another carrier. Homes larger than 5,000 square feet need extra fees for coverage. The company doesn’t highlight this detail in their marketing materials.
Choice Home Warranty Cost Breakdown: What You Actually Pay
The real cost of a home warranty goes beyond what you see in ads. Choice Home Warranty’s actual expenses include several components beyond your monthly premium.
Monthly Premiums: Basic vs Total Plan
Choice Home Warranty’s Basic Plan costs $46 to $49.17 monthly, which adds up to $560-$590 per year. The Total Plan gives you more coverage at $53.33 to $57.50 per month, or $640-$690 annually.
Your home’s location, size, and type affect these prices. A house bigger than 5,000 square feet costs an extra $140 yearly. Monthly payments come with a $2.50 processing fee, so paying annually saves money.
New customers get their first month free with a single-payment plan. This deal, combined with other promotions, could save you over $100 in year one.
Service Call Fees and When They Apply
A technician’s visit to fix a covered item costs you $100. This fee stays the same no matter what the repair costs. You’ll pay this amount for each new service request, unless the same repair fails within 30 days.
The $100 service fee is on the higher side, as industry fees range from $60 to $150. Unlike American Home Shield, Choice doesn’t let you trade higher monthly premiums for lower service fees.
Add-On Costs and Hidden Charges
Extra coverage for special items adds to your monthly bill:
- Pool/spa equipment: $15 monthly
- Well pump: $8.33 monthly
- Septic system: $10 monthly
- Limited roof leak: $5.83 monthly
- Septic tank pumping: $5.42 monthly
- Central vacuum, sump pump, second refrigerator, or standalone freezer: $3.33 each monthly
These extras can add up fast. To name just one example, see how choosing the Total Plan ($68/month) with all ten add-ons pushes your monthly payment to $130.
You might face extra charges for disposing of covered items. Access costs through walls, ceilings, floors, or concrete max out at $500 per incident.
Cancellation Fees and Refund Policies
Your cancellation timing determines what you’ll pay. Canceling within 30 days gets you a full refund minus a $50 administrative fee. The company deducts any service costs from this refund.
After 30 days, you’ll receive a prorated refund, still minus the $50 fee and any service costs. The company’s terms state that if service costs exceed your paid premiums, you’ll need to pay the difference when canceling.
You must tell Choice about cancellation 30 days before your contract ends. Missing this deadline means automatic renewal and charges for another term.
Hidden Costs in Choice Home Warranty: What They Don’t Tell You
Choice Home Warranty policies come with more costs than just the advertised prices and standard terms. These hidden expenses can affect your wallet more than you might expect when you file claims.
Waiting Periods and Their Financial Impact
Choice Home Warranty requires a 30-day waiting period before your coverage starts on all new policies. You’ll pay premiums during this original month without getting any protection. This means your annual cost goes up by about 8.3% because you’re paying for 12 months but only getting 11 months of coverage.
The company offers waiting period waivers, but you need proof of continuous prior coverage from another provider. Without this proof, you’ll have zero protection for a full month even though you’re paying for it.
Emergency service requests outside business hours might cost you extra fees that aren’t mentioned in their marketing materials. Since most home systems tend to break down during evenings or weekends, you could end up paying hundreds more.
Maintenance Record Requirements
The contract has strict rules about maintenance documentation that many homeowners find out about only after their claim gets denied. You must prove all covered systems and appliances were “properly installed, maintained, and in good working condition” when your coverage began.
If you can’t show maintenance records during a claim review, the company might deny your claim because of “pre-existing conditions” or “improper maintenance.” New homeowners face this problem often because they don’t have access to the previous owner’s maintenance records.
The money at stake is huge – without the right documentation, you might have to pay the full cost to replace something your warranty should cover. Yes, it is one of the most common reasons claims get denied.
Repair vs Replacement Clauses
Replacing an appliance instead of repairing it can cost thousands more. Choice Home Warranty gets to decide whether they’ll repair or replace a broken system.
The company usually picks repairs unless there’s no other option. Even when they approve a replacement, you get the “cash value” instead of full replacement cost. You’ll need to pay the difference for new equipment yourself. They figure out depreciation based on age and condition, and payments are often nowhere near current market prices.
On top of that, if they can’t find replacement parts through “regular sources,” they might use “rebuilt parts” or give you cash settlements that are a big deal as it means that they’re much lower than retail replacement costs.
Coverage Exclusions That Could Cost You
Choice Home Warranty’s contracts have many exclusions that could leave you with big repair bills:
- Commercial-grade equipment isn’t covered, even in homes
- They won’t cover items damaged by “chemical or sedimentary buildup”
- You pay for refrigerant recapture, reclaim, and disposal
- Solar systems and components get no coverage
- You’re responsible for permit fees, which can add hundreds per repair
- Code violations or required upgrades during repairs come out of your pocket
The biggest worry? The contract says they won’t cover “systems or appliances classified by the manufacturer as commercial.” Many high-end home appliances are technically rated for light commercial use, creating a major coverage gap.
These hidden costs mean you’ll likely pay much more than the simple premium and service fees suggest. Reading the contract carefully before you buy can help you avoid surprises later.
Is Choice Home Warranty Worth It in 2025? A Cost-Benefit Analysis
The big question after looking at everything is simple: Does Choice Home Warranty give you enough bang for your buck? Your specific needs and priorities will help you decide.
Comparing Choice to Liberty Home Guard and AHS
Choice Home Warranty sits right in the middle price-wise among its top competitors. Their monthly plans cost $39-$48, while American Home Shield charges $50-$60. Choice’s service fees are lower at $60-$85 compared to AHS’s $75-$125. Liberty Home Guard’s service fees are the lowest among these companies.
Choice’s coverage limits are a big deal as it means that they cover up to $3,000 per item. This beats many competitors but doesn’t match American Home Shield’s $5,000 limit for built-in systems. Liberty Home Guard scores better than Choice with customer satisfaction and has higher ratings on third-party review sites.
Choice falls short with their workmanship guarantee. They only cover repairs for 30 days, while other companies offer 60-90 day guarantees.
When Choice Home Warranty Makes Sense
Choice Home Warranty works best for:
- Homeowners who want good coverage without paying top dollar
- People with older homes that have standard appliances and systems
- Those who need quick responses (Choice contacts repair techs within 4 hours of claims)
- Homeowners looking for higher coverage limits at reasonable prices
The numbers back this up – 72% of customers say they’re happy with their Choice Home Warranty experience.
When You Should Look Elsewhere
You might want to check out other providers if you:
- Want coverage for preexisting conditions or previous damage
- Like to pick your own service call fee
- Have high-end or commercial-grade appliances
- Need longer workmanship guarantees
- Care about company reputation (Choice faces a consumer fraud lawsuit in Arizona)
Choice Home Warranty delivers good value for typical homeowners with basic needs. Their affordable prices and above-average coverage limits make them worth thinking over, though some might not like their strict policies and short repair guarantee.
Home Warranty Choice Home Warranty: Tips to Maximize Value
Smart planning and contract knowledge help you maximize your home warranty investment. Some providers boast a 96% claim approval rate, and success depends on both selecting the right coverage and managing your policy well.
Choosing the Right Plan for Your Needs
The best way to pick a Choice Home Warranty plan starts with listing your home’s essential systems. Your major appliances’ age and condition should guide your plan selection, especially in newer homes. You should also check which items have manufacturer warranties to avoid paying twice for protection.
Your specific situation determines which systems need repair coverage the most. Choice Home Warranty’s coverage caps of $3,000 per covered item are a great way to get protection for older heating, cooling, and plumbing systems.
Negotiating Add-Ons and Discounts
Home warranty companies often adjust their pricing structures. An open discussion about your budget with Choice Home Warranty leads to better-tailored policy options that line up with your finances.
You should look into bundling options—combining home insurance with your warranty can save you much money. Seasonal promotions from Choice, such as “first month free” deals with single-payment plans, also offer great savings.
How to Avoid Common Claim Denials
The successful majority belongs to the 96% of approved claims, and you can join them by following some key practices. Contact your warranty company before any repairs—unauthorized work is the biggest reason for denial.
Keep detailed records of all maintenance on covered systems. These documents show you’ve followed manufacturer guidelines and had no pre-existing issues at coverage start. Note that items installed incorrectly or against building codes won’t qualify for standard coverage.
Quick reporting is essential—claims filed after your coverage period ends will face denial, no matter how valid the issue.
Conclusion
Choice Home Warranty offers solid coverage and competitive pricing, but it comes with trade-offs that matter. With a generous $3,000 coverage cap and clear plan tiers, CHW stands out for homeowners seeking straightforward protection—especially for older systems and appliances. However, the higher-than-average service fees, strict maintenance rules, and multiple hidden costs can catch you off guard if you’re not careful. The company’s low customer satisfaction ratings and legal challenges are also hard to overlook.
In 2025, Choice Home Warranty is a good fit if you’re budget-conscious and have a standard home setup without specialised or commercial-grade equipment. But if flexibility, customer service, or premium appliance coverage are top priorities, other providers like Liberty Home Guard or American Home Shield may serve you better. As always, reading the fine print and matching a plan to your specific home needs will be the key to making your investment worthwhile.