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 is not BBB accredited, although CHW has been in business for at least 14 years and is currently the No. 1. home insurance warranty.
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 has scathing reviews on Reddit, Quora, Facebook, and other social media outlets 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 in 2023 and 1.6K as of March 2024.
- Choice Home Warranty and Other Home Warranty Scams: 2.5K in 2023 and 2.8 as of March 2024.
- Customers of Choice Home Warranty with CHW Unresolved Problems: 2.9K in 2023 and 3.7K as of March 2024.
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 will not replace the unit.
The customer had no legal remedy because the “fine print” does say it will not honor preexisting conditions.
However, some websites and blogs show that CHW appears to honor preexisting conditions, saying, “Best Home Warranty Companies for Preexisting Conditions.”
It is important to note that all appliances will have “unknown conditions,” which is why the caveat does not make sense to this customer.
3. News outlets report on Choice Home Warranty
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. [See link]
Despite collecting substantial sums from consumers, the AG alleged that Choice Home Warranty 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. According to news reports, They settled a deceptive business practices lawsuit in 2015 for nearly $800,000. (See below)
Choice Warranty contractors rant on social media
Contractors and suppliers have also ranted on social media about how bad Choice Home Warranty’s (CHW) company policy is regarding services already rendered.
While we couldn’t verify whether the contractors’ complaints are true, the number of complaints on social media 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. The owner alleged that he didn’t even read it.
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 2024, according to BBB and social media reviews.
We contacted Choice Home Warranty for comments, and they have not replied to our inquiry.
