Here’s the catch: Choice Home Warranty (CHW) claims to provide comprehensive protection against costly repairs of home systems and appliances. They advertise swift and efficient servicing to their customers and excellent customer service. However, several of their customers are dissatisfied that the company over promised and under delivered services. In the end they are probably wishing they had not chosen Choice.
CHW offers two plans to cover repairs, a basic plan costing $33.33 per month and their total plan which is $40 per month. They encourage homeowners to purchase their plans to take care of appliances and major systems that break down due to normal wear and tear. CHW pledges to provide services right away and brags of their 24 hour, 7 days a week, 365 days a year claims service.
While they claim to provide great benefits to their customers, many state that the company denies claims, delays repairs, and their buyout options are insufficient to cover replacing items that cannot be repaired. Customers are forced to pay out-of-pocket for repairs that should have been covered. CHW uses what some customers believe to be deceptive measures to deny claims, such as asserting the systems or appliances were not properly maintained or that the problem was preexisting.
One consumer who filed a complaint with Business Consumer Alliance said, “Every time I contacted contractors assigned to my claim, they maintained that CHW would not pay them accordingly, therefore, resulting in them not wanting to service customers for CHW. CHW is a SCAM. BEWARE.” Others claim they had to go without heat, hot water, or could not use their appliances for extensive periods of time due to CHW’s failure to make good on their claims.
The problems are not new. Back in 2015, the New Jersey Attorney General filed a $779,913.93 judgment against CHW and their principals for similar complaints and their deceptive actions. BCA has received several complaints of which the company has only addressed a few. They currently maintain an F-rating.
Kim’s Advice: Many of the unhappy complainants were unaware of the limitations that their “home warranty” carried. It is crucial to read and understand exactly what you are getting before agreeing to any contract.
In addition to reading and understanding the agreement, you should always shop around and compare similar plans. Obtain quotes from several home warranty companies and ask questions about their plans. Some things to consider are:
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What items are covered under the plan?
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Are there limits on the number of claims you can make?
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What is the claims process?
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Can you choose the contractor or repair person?
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What out-of pocket expenses will you have to pay (service fees, diagnosis costs, etc.)?
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If the repair is not covered, will the buyout amount be enough to cover replacement?
Check out the reputation of the business by getting a report from BCA. You can also check the reliability of the contractor assigned to conduct repairs.
An alternative to obtaining home warranty services is to set aside funds in a savings account to take care of emergency repairs. It is also important to keep up with maintenance on your appliances and home systems.
If you find that you are having problems with a business, if they have not honored their guarantees, you believe you have been misled, or you wish to settle a dispute with a company, contact BCA to file a complaint.