What Choice Home Warranty covers and how the company operates

Choice Home Warranty is a home service contract provider that covers repair or replacement of major home systems and appliances when they break down from normal wear and tear. The company operates by charging an annual or monthly premium, then handling repair calls through a network of service contractors when you submit a claim.

Choice Home Warranty is not an insurance product — it functions as a service contract, which means the coverage terms and exclusions work differently than homeowners insurance. The company sets its own coverage limits, deductibles, and service call procedures rather than following state insurance regulations.

When a covered item fails, you contact Choice Home Warranty, pay your service call fee (typically $50 to $100 depending on your plan), and the company dispatches a contractor from its network to your home. The contractor performs the repair or, if repair is not economical, arranges replacement of the item.

Key Takeaways

  • Choice Home Warranty charges a monthly or annual premium to cover repairs to major systems like HVAC, plumbing, and electrical, plus appliances like water heaters and refrigerators.
  • You pay a service call fee (usually $50 to $100) each time you file a claim, and Choice Home Warranty pays the contractor directly for the repair or replacement work.
  • The company uses a network of local contractors rather than sending its own technicians, so repair quality and speed depend on which contractor is assigned to your area.
  • Coverage excludes pre-existing damage, items not maintained according to manufacturer guidelines, and damage from misuse or lack of maintenance.
  • Choice Home Warranty plans vary by state and region, so what is covered in one area may not be covered in another.

Plan types and what each one includes

Choice Home Warranty offers several plan tiers, though the exact plans and coverage vary by state and service area. The company typically structures plans as basic, standard, and premium levels, with each tier covering more systems or appliances than the one below it.

A basic plan usually covers major systems: HVAC (heating, ventilation, air conditioning), plumbing, electrical wiring, and water heater. Standard plans add kitchen appliances like refrigerator, range, dishwasher, and microwave. Premium plans may include washer and dryer, garbage disposal, and sometimes pool or spa equipment if applicable to your home.

Because plans differ by region, the specific items covered under each tier in your area may not match another state's offerings. Before comparing prices, you need to check which plan structure Choice Home Warranty offers in your zip code, since the company does not serve all areas uniformly.

Monthly and annual costs, and what affects your price

Choice Home Warranty pricing varies significantly by location, the plan tier you select, and whether you pay monthly or annually. Monthly premiums typically range from $30 to $60 for basic plans, though this is not a fixed figure and depends on your state and service area.

Service call fees — the amount you pay each time you file a claim — usually fall between $50 and $100. Some plans offer a limited number of free service calls per year, while others charge the fee for every call. The contract terms specify how many free calls (if any) come with your plan.

Your location is the largest cost factor because Choice Home Warranty adjusts pricing based on the density and cost of contractors in your area. A home in a rural region may have different rates than one in a city, even within the same state. Age of your home and the systems it contains can also affect pricing, though not all plans factor this in.

What is not covered, and common exclusions

Choice Home Warranty excludes damage that existed before your contract started (called pre-existing conditions). If your air conditioner was already broken when you signed up, the company will not cover repair or replacement of that unit, even if you did not know it was failing.

The contract also excludes damage from lack of maintenance. If your HVAC system failed because you never changed the filter, or your plumbing backed up because you never had the line cleaned, Choice Home Warranty can deny the claim. The company requires you to follow the manufacturer's maintenance schedule for all covered items.

Damage from misuse, neglect, or improper installation is excluded. If a contractor installed your water heater incorrectly and it failed as a result, the warranty does not cover it. Cosmetic damage, code violations, and upgrades (replacing an old system with a newer model when repair is still possible) are also typically not covered.

Items that require replacement parts no longer manufactured, or systems that are obsolete, may be excluded or subject to limits on what the company will pay toward replacement. Some plans cap the replacement cost at a set amount, meaning you pay the difference if a new unit costs more.

How to file a claim and what to expect

To file a claim with Choice Home Warranty, contact the company by phone or through its online portal when a covered item breaks down. You will need to describe the problem and provide your contract number. The company will ask when the issue started and whether you have already called a contractor.

After you file, Choice Home Warranty assigns a contractor from its network in your area. The company typically schedules the service call within a few days, though timing depends on contractor availability. You pay your service call fee when the contractor arrives.

The contractor diagnoses the problem and either repairs the item or, if repair is not economical, contacts Choice Home Warranty to request authorization for replacement. The company decides whether to repair or replace based on the cost and the item's age. Once authorized, the contractor completes the work and Choice Home Warranty pays them directly.

If you disagree with the company's decision to deny a claim or refuse replacement, you can file a dispute. The process for disputes is outlined in your contract and typically involves submitting documentation of the damage and your maintenance history.

How Choice Home Warranty differs from homeowners insurance

Homeowners insurance covers sudden, accidental damage — a pipe bursts from freezing, lightning strikes your electrical panel, a tree falls on your roof. Choice Home Warranty covers breakdown from normal wear and tear — your 15-year-old air conditioner stops working, your water heater rusts through, your refrigerator compressor fails.

Insurance is regulated by your state and must follow specific rules about what claims must be paid and how quickly. Service contracts like Choice Home Warranty are less heavily regulated, which means the company has more flexibility in setting coverage terms and denying claims.

Insurance typically covers the full cost of repair or replacement (minus your deductible). Service contracts charge a service call fee each time you file a claim, and they may cap how much they will pay toward replacement. If a new HVAC system costs $8,000 and your plan caps replacement at $5,000, you pay the $3,000 difference.

You cannot have both insurance and a service contract covering the same item — most homeowners insurance policies exclude coverage for items under an active service contract. If you buy a Choice Home Warranty plan, your homeowners insurance will not pay for the same repairs.

Questions to ask before signing up

Before purchasing a Choice Home Warranty plan, confirm which specific items are covered in your area. The company's website lists coverage by region, but calling to verify ensures you know exactly what your plan includes and what it excludes.

Ask about the service call fee structure: Is it the same for every call, or does it vary by type of repair? Are there any free service calls included per year? What happens if a contractor needs to make multiple visits to complete a repair — do you pay the fee each time?

Find out how the company handles replacement decisions. If an item is beyond repair, does the company replace it with a new unit of the same type, or can it substitute a different brand or model? What is the maximum the company will pay toward replacement, and what happens if the actual cost exceeds that amount?

Ask about the contractor network in your area. How many contractors does Choice Home Warranty use, and can you choose which one services your home? What is the typical wait time for a service call in your region?

Frequently Asked Questions

Can I cancel my Choice Home Warranty contract if I move or sell my home?

Most service contracts allow you to cancel, but the terms vary. Some plans let you transfer coverage to a new home, while others require you to cancel and start a new contract. Check your contract for the cancellation policy and any fees that explore. If you sell your home, the new owner can sometimes assume the contract, but this depends on the company's rules.

What happens if a contractor does a poor job or the repair fails shortly after?

If a repair fails within a set period (often 30 days), you can contact Choice Home Warranty to request the contractor return and fix the problem at no additional service call fee. If the contractor's work was genuinely defective, the company should authorize a re-repair. Document the failure with photos or video if possible.

Does Choice Home Warranty cover items I install myself or have a handyman install?

Coverage typically requires that systems and appliances were installed by a licensed professional according to local code. If you or an unlicensed handyman installed something, the company may deny claims related to that item. Check your contract for the installation requirements in your area.

Can I use my own contractor instead of Choice Home Warranty's network?

Most service contracts require you to use a contractor from the company's network to keep your coverage valid. If you hire your own contractor, Choice Home Warranty will not reimburse you. Some plans allow you to request a specific contractor if you have a preferred service provider, but this must be arranged in advance.

What is the difference between a service call fee and my monthly premium?

Your monthly premium is what you pay to keep the contract active. The service call fee is what you pay each time you file a claim and a contractor comes to your home. Both are separate costs — you pay the premium whether you file claims or not, and you pay the service call fee only when you use the service.