Choice Home Warranty $11.8M Warranty Coverage Settlement

Individuals who purchased a home warranty from Choice Home Warranty over the phone between Jan. 1, 2013, and Jan. 1, 2023, for a property in Arizona may be eligible to submit a claim for up to the full purchase price of the warranty from a class action settlement.

Choice Home Warranty agreed to pay $11.8 million to settle a lawsuit filed by the Arizona Attorney General’s Office. The lawsuit alleged the company misled consumers about the coverage its home warranty contracts provided, particularly regarding air conditioning units and other appliances.

Who can file a claim for restitution?

Individuals must meet all of the following criteria to submit a claim:

• They purchased a home warranty from Choice Home Warranty over the phone between Jan. 1, 2013, and Jan. 1, 2023.
• The home warranty purchase covered a property located in Arizona.

How much will settlement payments be?

Cash payment: Consumers can submit a claim to receive a cash payment of up to full purchase price paid for their Choice Home Warranty contract. The settlement administrator will determine the final payment amount by the total number of claims filed.

How to claim a Choice Home Warranty payment

To receive restitution, consumers must file a claim online. The claim deadline is Aug. 1, 2026.

Required claim information

Claimants should include as much of the following information as possible:

• Address of property covered by warranty contract
• Date or year of warranty purchase
• Length of initial service contract
• Property IDs or customer numbers for covered properties
• Total amount of premiums paid to CHW
• Date the home warranty contract ended and if the contract was canceled
• A description of the claimant's experience with Choice Home Warranty and any additional comments or information
• Copies of service contracts or other relevant information if available

Payout options

• Paper check mailed to the address provided

Important dates

• Consent decree approval date: Jan. 23, 2026
• Deadline to file a claim: Aug. 1, 2026

When is the Choice Home Warranty settlement payout date?

The settlement administrator will issue payments to approved claimants on a rolling basis as it receives funds from Choice Home Warranty.

Why did this settlement happen?

The Arizona attorney general’s office filed a lawsuit against Choice Home Warranty in 2019 after receiving numerous consumer complaints. The complaint alleged the company misled customers about the extent of coverage its home warranty contracts provided, particularly regarding repairs and replacements for air conditioning units and other appliances.

Many consumers reported that telephone sales representatives failed to disclose important exclusions and limitations or misrepresented what the warranties would cover.

Choice Home Warranty denied the allegations but agreed to settle to avoid the expense and risk of continued litigation. The settlement also requires CHW to reform its sales practices and provide clear disclosures to Arizona consumers before selling warranties.

Sources

1. Arizona attorney general’s office press release
2. Settlement website
3. Claim form
4. Consent decree