Three reasons why Choice Home Warranty is No. 1 in complaints, according to BBB consumer and newsroom reports
1. Choice Home Warranty review at BBB is a low 1.04 out of 5 in 2023
Towards the end of 2023, BBB Customer Review of Choice Home Warranty (CHW) is a low 1.04/5, with an average of 3,800 reviews and at least 11,367 complaints in the last three years.
As of 2023, Choice Home Warranty had no company accredited with the BBB. CHW has been in business for at least 14 years and is currently the No. 1. home insurance warranty.
Many consumers have reached out to BBB with reports that CHW continued to take funds from their bank accounts or credit cards after requesting cancellation of services.
Consumers have also reported difficulties having the charges refunded. On February 18, 2022, BBB contacted Choice Home Warranty to address a possible pattern of complaints. (See BBB Alerts)
In 2022, CHW bought Home Warranty of America (HWA).
2. CHW has the most complaints on social media after American Home Shield
Choice Home Insurance have scathing reviews on Reddit, Quora, Facebook, and other social media outlet where customers have frustratingly filed their complaints.
Upset customers on Facebook: “Choice Warranty is a scam”
- Choice Home Warranty is a Scam: 1,5K followers
- Choice Home Warranty and other Home Warranty Scams: 2.5K followers
- Customers of Choice Home Warranty with CHW Unresolved Problems: 2.9K members
Most people complain about Choice Home Warranty (CHW) because they do not honor replacements. For example, one customer claimed that the CHW attempted to repair their refrigerator twice.
However, when it was clear that it needed replacement, the company cited “known and unknown preexisting condition” liabilities. Therefore, the company cannot honor the replacement.
The customer had no legal advantage because the “fine print” says so.
However, some websites and blogs show that CHW appears to honor preexisting conditions, saying, “Best Home Warranty Companies for Preexisting Conditions,” misleading customers who don’t read the fine print.
It is important to note that all appliances will have “unknown conditions,” which is why the caveat does not make sense to many disgruntled customers.
3. News outlets have reported Choice Home Warranty complaints
In 2019, the Arizona Attorney General (AG) pursued legal action against Choice Home Warranty following over 2,000 complaints in the past year. Customers cited lengthy AC repair delays and refusals to cover essential repairs.
The AG alleged that Choice Home Warranty, despite collecting substantial sums from consumers, excluded refrigerator and AC issues, such as replacements, from coverage.
They also claim that the promised 24/7 customer service was not delivered promptly.
Notably, this isn’t the first legal action against Choice Home Warranty, as they settled a deceptive business practices lawsuit in 2015 for nearly $800,000, according to news reports.
Sour-graping Choice Warranty contractors?
Contractors and suppliers have also ranted on social media about how bad Choice Home Warranty (CHW) company policy is about services already rendered. While we couldn’t verify if the complaints by contractors are true, the number of complaints is growing.
For example, in 2023, an alleged supplier, Cripe Heating and Air, posted that the letter they sent Choice CEO Jim Mostifi, fell on deaf ears. He didn’t even read it, the owner alleged. CHW continues to call Cripe for services but ignores his complaints.
In the same year, another contractor, William Martin, got suspended for bad-mouthing CHW. He took the company to court. Before the issue progressed to the Middlesex County Court, Choice’s lawyer called Martin to address it and pay what they owed him.
The bottom line is that ALL home warranty insurance have unsatisfied customers. Unfortunately, Choice Home Warranty, as the No. 1 company with the most customers, appears to be at the top of the “most hated home warranty companies” as of 2023, according to BBB and social media reviews.
When selecting a home insurance, careful diligence is critical. We reached out to Choice Home Warranty for comments, and they have not replied to our inquiry.