Last updated: October 8, 2026
Choice Home Warranty is one of the most searched home warranty names in the U.S., so it is worth reading what its agreement actually promises. We went through the Homeowners User Agreement that Choice publishes, clause by clause. The short version: the general limit is $3,000 per item per year, higher than the general limits in the APHW and Select agreements we reviewed, but Choice picks the technician, there is a 30-day waiting period, and an expiring plan can roll into a monthly plan at the prevailing rate.
★★★★☆ 4.1 / 5
Coverage: 4.3/5 | Price Value: 4.0/5 | Customer Service: 4.0/5
Editorial score from our review of the published agreement, not a paid placement or a customer survey. Price Value is based on the structure of the plan, because the contract fee and service fee appear in each customer’s Coverage Details and not in the published agreement. See how we rate.
What we reviewed (and what we could not)
We read the Homeowners User Agreement on Choice’s site. It is marked “Sample Agreement. Terms may vary in different states” and the page was last modified on December 31, 2025. The contracting entity in the sample is American Global Obligors, Inc. in New Jersey, and the agreement says several states use a different obligor. Your own Coverage Details list your items, your service fee and your plan. Those amounts are not in the published agreement.
Plan types and covered items
The agreement describes two plan types: a Fixed-Term Plan (a year or more) and a Monthly Plan. The base covered items are the clothes dryer, clothes washer, built-in microwave, oven/range/cooktop, dishwasher, garbage disposal, refrigerator, ceiling, exhaust and attic fans, garage door opener, air conditioning, heating and ductwork, water heater, electrical system, and plumbing including stoppages. Coverage is for one covered item per category unless extra fees are paid, with exceptions for air conditioning/heating/ductwork, fans and garage door openers.
Eligibility rules matter too: occupied homes under 5,000 square feet unless a fee is paid, systems inside the main foundation or detached garage with listed exceptions, no commercial use, and in buildings of five or more units only the items within your own unit.
Dollar limits
| Item | Limit stated in the agreement |
|---|---|
| General limit (Sec. E1) | $3,000 per 12-month period per covered item |
| Access through roofs, walls, ceilings, floors or concrete (Sec. E2) | $500, including restoring the opening to rough finish |
| Well pump (D2) | $500 |
| Limited roof leak (D5) | $500 |
| Septic tank pumping (D7) | $250 per term |
| Septic system (D8) | $500 |
| Sprinkler system (D9) | $500 |
| Stand-alone ice maker (D10) | $500 |
| Trash compactor (D11) | $500 |
Optional items (extra payment) are pool and spa equipment, well pump, sump pump, central vacuum, a limited roof leak for single-family homes, a stand-alone freezer or second refrigerator, septic pumping, septic system, sprinkler system, ice maker and trash compactor. Where several items share the same numbered section, the limit applies to them together. If Choice offers cash instead of a repair, it may pay its own cost, which can be less than retail, and you cannot claim on that item again for 12 months. For comparison, Select’s agreement lists $500 for several categories; see our Select review and Choice vs Select.
Service fee and waiting period
You pay a service fee to the provider for each request. The amount is in your Coverage Details, not in the agreement. Coverage begins 30 days after Choice receives your Agreement Fee, or earlier if you show proof of prior coverage with no lapse. If an approved repair fails within 30 days, it is corrected without a new service fee. Non-emergency requests outside normal business hours (generally 8 AM to 5 PM on weekdays) may cost extra in Oklahoma.
How a claim works
- Request service as soon as you find the problem and before the agreement term ends.
- Choice starts contacting service providers within 4 hours. After a provider accepts, you get the name, phone number and appointment. Acceptance can take more than 48 hours in some cases.
- Do not hire a provider on your own. Work done without prior approval is not reimbursed.
The company is not liable for a provider’s negligence or conduct. If you disagree with a decision, the agreement requires a written claim, and the company has 30 calendar days to respond. On an appeal of a denial, Choice may ask for routine maintenance records or home inspection reports.
What can sink a claim
| Clause | What it means for you |
|---|---|
| Pre-existing conditions | Known or unknown pre-existing conditions are excluded, and systems must work on the effective date. |
| Routine maintenance | Only normal wear and tear is covered. Misuse, neglect and physical damage are excluded. |
| Upgrades, code and permits | Code-related work, permits and disposal fees are excluded. |
| Manufacturer warranty or recall | Items under a manufacturer warranty or recall are excluded. |
| Roots and foreign objects | Plumbing stoppages caused by roots or foreign objects, and lines outside the main foundation, are excluded. |
| Limited roof leak | Excludes flat, tar, gravel and metal roofs, flashing, gutters, skylights and any case that needs a partial or full roof replacement. |
| Water heaters | Units over 75 gallons are excluded. |
| Consequential damage | The company is not liable for consequential, incidental or punitive damages. |
Cancellation, renewal and disputes
- You cancel in the first 30 days: refund of the Agreement Fee minus service costs.
- After 30 days: pro rata refund for the unexpired term, minus service costs, and an administrative fee of the lesser of $50 or what the law allows.
- State variations: several states give a free-look period of 20 days (10 if delivered at sale), and refunds not paid within 45 days carry a 10% monthly penalty. Check your state’s section.
- Choice cancels for non-payment of the Agreement Fee or Service Fee, fraud or material misrepresentation, or by mutual agreement.
- Renewal: see the FAQ below. The agreement is transferable with no fee.
- Disputes: mediation first, then binding individual arbitration with the American Arbitration Association under New Jersey law, with a class action waiver. Several states have exceptions, including Arizona, Alabama, Wisconsin and Wyoming.
Who it fits
| Situation | Fit |
|---|---|
| You want a higher general per-item limit than APHW or Select | ✓ $3,000 per item per year |
| You want a long list of base items | ✓ Over a dozen base items |
| You want to choose your own contractor | ✗ Choice picks the provider |
| You need coverage right away | ✗ 30-day waiting period |
| You want to know the service fee before you buy | ✗ In your Coverage Details only |
| You dislike automatic renewal into a monthly plan | ✗ Renewal defaults to a Monthly Plan |
Pros and cons
Pros: a $3,000 per-item annual limit; a long list of base items; a 30-day free fix after an approved repair; transfers allowed at no fee; a refund in the first 30 days.
Cons: the company chooses the provider; a 30-day waiting period; cash settlements at the company’s cost; a $500 access limit; pre-existing conditions excluded even if unknown; renewal into a Monthly Plan by default; binding arbitration in New Jersey.
Ask before you sign
- What is my service fee, and does it change if I call outside business hours?
- Which exact items and limits are on my Coverage Details?
- What will the renewal rate be, and how do I stop the renewal into a monthly plan?
- Which state version of the agreement applies to me?
For prices companies actually publish, see our home warranty cost guide, and for how Choice compares with other providers, the best home warranty companies comparison.
Frequently asked questions
Who picks the technician with Choice Home Warranty?
Choice does. The agreement gives the company the sole right to select the service provider, and providers are independent third parties. Oregon is listed as an exception under certain conditions. Work done without prior approval is not reimbursed.
Is there a waiting period with Choice Home Warranty?
Yes. Coverage starts 30 days after Choice receives the Agreement Fee. It may start earlier if you show proof of prior coverage with no lapse.
What is Choice’s coverage limit?
The general limit is $3,000 per 12-month period per covered item. Lower limits apply to some optional items: $500 for a well pump, limited roof leak, septic system, sprinkler system, ice maker and trash compactor, and $250 for septic tank pumping.
Does Choice cover pre-existing conditions?
No. Known or unknown pre-existing conditions are not covered, and systems must be in working order on the effective date. Arizona has a different rule: such conditions are covered only if the company or seller knew or should reasonably have known of them.
What happens when my Choice plan renews?
Choice may renew at its option. Unless you cancel, you renew into a Monthly Plan at your current coverage level and the prevailing monthly rate. Monthly plans renew each month unless you give written notice 30 days before the term ends, and the company gives 60 days’ written notice before any rate or agreement change.
Sources
- Choice Home Warranty, Homeowners User Agreement (choicehomewarranty.com/user-agreement), reviewed October 8, 2026.
- FTC consumer alert: So what’s the deal with home warranties? (February 2023).