Choice Home Warranty Review

EDISON, NEW JERSEY -- I was one of this consumers that never got paid

Choice Home Warranty, which ran ads that promised consumers would "Never Pay for Covered Home Repairs Again," has settled a lawsuit filed by New Jersey consumer affairs.
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(Photo: KatarzynaBialasiewicz, Getty Images/iStockphoto)
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Edison-based Choice Home Warranty will pay nearly $780,000, including money that will go back to consumers, to settle a lawsuit filed by the state over its business practices.
"Despite the representations in their contracts, these defendants allegedly used creative and deceptive means to deny their customers' claims," said acting Attorney General John J. Hoffman in a statement.
The company agreed to pay $779,913.93, revise its business practices and retain a compliance monitor for at least a year. The amount of restitution paid to consumers will be determined based on the state Division of Consumer Affairs' outreach to qualifying customers, a spokesman said.
Last July, the state filed a lawsuit against CHW Group Inc. and its current and former principals, Victor Mandalawi, Victor Hakim and David Seruya, who has not been involved in the company since May 2013.
According to court papers, the company enticed consumers to buy so-called comprehensive coverage for crucial home systems and appliances and then denied their claims using alleged deceptive practices.
NJ sues Choice Home Warranty
'Peace of mind'
The company advertises "home warranties" that provide "comprehensive coverage" and "peace of mind" by protecting consumers if their appliances need costly repairs or replacement, the state said. The agreements were actually service contracts but CHW made it hard, if not impossible to collect, authorities said in court papers.
The state alleged that the company denied claims because customers were unable to submit multiple years worth of maintenance records, consumers' supposedly failed to properly care for their home systems or appliances, or there were supposed pre-existing defects. In other cases, the company offered cash "buyouts" that were hundreds of dollars less the consumers' costs to replace an appliance.
Consumers who paid hundreds of dollars for "warranties" were required to pay for air conditioning, refrigerator or other repairs that were purportedly covered.
"Choice Home Warranty allegedly deceived consumers by refusing to provide the services it promised – specifically, the ability to have major appliances or systems repaired or replaced," said state Division of Consumer Affairs Acting Director Steve Lee in a statement. "CHW did this after luring consumers with ads promising they would 'Never Pay for Covered Home Repairs Again.' "
Choice Home Warranty won't repair oven
No wrongdoing admitted
In settling, Choice Home Warranty did not admit to any wrongdoing. The company is "pleased to have resolved this matter," said Hackensack lawyer Lori Grifa of Archer & Greiner.
"The company always has been committed to resolving complaints made by dissatisfied customers," Grifa said in an emailed statement. "In fact, those involved in the state's case represent a very small percentage of the tens of thousands of clients to whom CHW provides service."
The state received 1,085 complaints about CHW and its practices from consumers in New Jersey and around the country. The Better Business Bureau of New Jersey, which grades the company with a B, said it has closed 1,022 complaints against Choice Home Warranty in the last three years, including 416 in the last 12 months.
According to the settlement, Choice Home Warranty must not:
•Promise that customers who purchase residential service contracts will never pay for repairs to home systems or appliances.
•Represent that they will assign technicians to service consumers' claims unless they are able to make such assignments.
•Request maintenance records or other similar documents from consumers in the initial review of their claims.
Meanwhile, the company also must change some of their business practices by:
•Clearly disclosing in advertisements that they offer service contracts, which are not warranties.
•Disclosing that they may make payments to consumers instead of replacing their home systems or appliances.
•Providing, upon a consumer's request, a written explanation for a claim denial.
David P. Willis: 732-643-4039; dwillis@gannettnj.com; Facebook.com/dpwillis732

CARY, NORTH CAROLINA -- Https://www.app.com/story/money/business/2015/06/15/choice-home-warranty/71248424/

(Wished I had read the above report in them, I would have made a more informed choice. Even after they paid out settlement against the state lawsuit, the same tactic is still very much alive in their business practice)

I used them for a year and regretting every minute of having a policy. Should have stuck with my instinct that these insurance policy rarely pay off. I am a landlord and when the dry crept out, you sent Choice. They are good at telling you all that is not covered. So it's due to clog vent and broken belt, maintenance issue, so not covered. Fine, thinking $180 part will do the job. Then the technician came back and told me now the motor is broken. I called Choice again and they just pushed me to deal with the incompetent technician. They washed their hands clean. All the while repeating that idiotic phrase over and over again blah blah. They will not work with the technician. They simply insisted on denying my case and left me to deal with the guy instead. I swear I will find every board to complain about them. They are only out for your premium, I sense very little effort in taking care of the customer beside having supervisor standby to make the claim denial more repulsive. Choice (North Carolina) is absolutely not helpful and constant evasive about their responsibility. Keep your 💰

EDISON, NEW JERSEY -- This company showed up in my E-mail. Went on the site and just beginning to fill in my information, when my work phone rings. Chris a salesman starts his sales pitch and I tell him to give me a little time to talk with my wife. Got his phone and ext. No more than hang the phone up and Miles calls, same company, tells me he can give me a better deal than Chris.

Long story short I bought 1 year policy with understanding of 30 days to cancel with full refund. After I hang up I looked at Better Business. Bureau rating and see they have a very poor rating. Called them back right then and told them to cancel our policy, after very much hassle was told they would and were to send me E-mail confirmation which I have not received. Called them 7 times they lie every time. DO NOT DO ANY BUSINESS WITH THIS COMPANY!!!

NEW JERSEY -- Every time I call in and they send someone out I'm always told it is not covered. Once again they are not helping with the leaks in my plumbing system. I understand sewer breaks aren't covered but the actual leak I've reported to them they are once again denying. Same with the A/C unit having a leak and losing Freon and I have to pay for the $600 to put Freon back in and then told I need a new unit which they don't help cover.

We do the maintenance on our equipment and then told that proper maintenance wasn't done and deny my claim. We take good care of our stuff but never good enough to them to pay a claim. Same when my dryer went out they would not cover fixing and was told that if I buy a new one they would give me $100.00 which that's what I ended up doing. I switched to this company and it has been a nightmare with them ever since. Now I see why they have a C Rating and that's too good for this company. Their own service contractors they send to my house tell me they deny almost every claim so not a good standing with them either.

EDISON, NEW JERSEY -- Purchased house 8/2017 plan CHW 9/2017. First problem 12/2017, no heat. Tech repaired but too long time to get part as unit is 1998. Commented maintained well to still be running since most units at beach last 10 years. Had routine serviced on my own 12/20/2017. Commented may have problems in future due to a leak but okay for a while. 3/18/2018, no air. CHW sent tech. Again said in good shape for unit of that age. Several problems. Tech stated CHW will find a way not to repair or replace.

CHW refused to pay for repair or replace on 3/20/2018, same day tech sent in report. Called, complained, sent to resolution dept. SAME story about it not being maintained...SO, if one is buying a house, and CHW doesn't inspect the unit in question, HOW can they use the "maintained" excuse. It is not listed as an exclusion in the booklet they send.

HOUSTON TX, TEXAS -- We have continued to have poor experiences with this company. They deny most things, they send out incompetent service people, and their customer service is poor. We have now been waiting for 3 weeks to get our refrigerator fixed. The serviceman no showed, then didn't have the part, then after we waited two weeks to get the part, it turns out he had the wrong part. This is unacceptable and the CHW refuses to do anything to fix the problem.

Then when we had the hot water heater go out and flood the place, we had to get someone out right away. CHW could not come out quickly enough so we had someone come out and fix it and now CHW refuses to pay for it. Save yourself the stress and go with a more reputable company. Their abysmal star rating is deserved. Check out their BBB profile as well. There are a lot of complaints and disputes with this company.

GROVE, OKLAHOMA -- I do NOT recommend Choice Home Warranty. While their prices may be inexpensive, their customer service is horrible. It took six phone calls in one day to get an answer to my refrigerator problem. While it was finally resolved, the problem is a lack of communication between departments, but I wasted almost an entire day on the phone with them. I decided to switch companies and had to get angry with Ryan--a retention employee, who kept trying to get me to give the company another chance. I repeatedly told him NO and said I'd already switched companies. He was rude and arrogant. I don't lose my temper very often, but I lost it with Ryan.

TEMPE, ARIZONA -- I call them to fix my dryer last month, they said it is precondition problem and didn't fix it. Today I call for fixing roof leak. They said they don't cover the tile roof and if the leak is in garage. But they sold me the coverage without asking what type of roof you have. I asked them to cancel my contract and pay back my $420, they will pay me back just $200 and try to convince me to keep my contract but I canceled it. Don't want to deal with this B.S. anymore. Don't waste your money and time with this company.

MESA, ARKANSAS -- I have been a customer for years, I paid 5 years in advance with a discount. Had my pool pump go out and the cost to replace is $606. They offered me $377. They told me when I called in claim that I could use my pool guy to replace. After he went through their tedious process of itemizing cost of parts and labor and told them it was $606, they report back that they will only give $377 for the total job.

They said this is because I'm using my contractor. I told them I was using him because they said I could. Their supervisor/manager took me to a Google page online and said, "See...here is where it says that if you use your person we pay average cost not actual." I told them in AZ the average cost would be different because law requires a two speed motor. They don't care! I told them, "If I would of known you paid this way, I would of not said anything about my pool guy." They don't care! I have referred others to them and paid over $3k to them in premiums over the years. Bottom line, THEY DO NOT CARE!

EDISON, NEW JERSEY -- Choice Home Warranty - VERY BAD CHOICE. This is the worst home warranty company. They will do anything to sell a policy and nothing to service a claim. As a realtor, I had sent thousands of dollars of business to Choice and every time a claim was made, no matter what it was, it was excluded. This is more than a waste of money, they will also waste your time and efforts to get coverage. Too bad I can't give them a zero star rating because that is what they deserve.