Migliaccio & Rathod LLP is investigating reports that Choice Home Warranty may be improperly denying or delaying coverage for HVAC repairs by broadly applying policy exclusions, mischaracterizing contractor findings, or requiring homeowners to pay substantial out-of-pocket repair costs before receiving reimbursement.
Home warranty plans are marketed as providing homeowners with peace of mind when major home systems fail due to normal wear and tear. Consumers purchase these plans expecting that covered repairs will be coordinated and paid for when unexpected breakdowns occur. However, some homeowners report that claims involving heating and air conditioning systems are denied based on disputed interpretations of inspection reports or policy exclusions, even when they believe the covered mechanical failure is separate from any excluded condition.
What Consumers Report
Consumers report:
- Purchasing an active Choice Home Warranty policy and paying the required service call fee.
- Having a licensed contractor diagnose a mechanical failure that they believe should be covered under the warranty.
- Receiving a claim denial based on an allegedly unrelated excluded condition.
- Being told the contractor concluded an excluded condition caused the failure, even though the contractor’s report allegedly did not make that determination.
- Obtaining additional information from the contractor that they believe contradicts Choice Home Warranty’s explanation for denying coverage.
- Receiving different explanations for why coverage was denied after questioning the initial decision.
- Being offered partial “goodwill” payments instead of full warranty coverage.
- Being required to pay for expensive repairs upfront before reimbursement will be considered.
- Losing access to warranty benefits after canceling the policy following an initial denial.
Why Consumers Should Be Concerned
Home warranty companies generally promise to repair or replace covered home systems that fail due to ordinary wear and tear, subject to the terms and exclusions contained in the service contract. Consumers reasonably expect claims to be evaluated based on the actual cause of the mechanical failure and the findings of the servicing contractor.
Some homeowners allege that Choice Home Warranty improperly attributes covered mechanical failures to unrelated excluded conditions, allowing the company to deny claims that should otherwise be covered. For example, consumers report situations where a contractor identifies multiple independent issues with an HVAC system, but Choice allegedly concludes that an excluded condition caused every necessary repair even though the contractor did not reach that conclusion.
Other consumers report that after they challenge a denial or submit additional documentation from the servicing contractor, Choice changes its explanation for denying coverage or offers partial “goodwill” payments rather than honoring the warranty. In some cases, homeowners allege they are told they must first pay thousands of dollars for repairs out of pocket before reimbursement will even be considered. For homeowners facing significant HVAC repair bills, that requirement may effectively prevent them from obtaining the warranty benefits they purchased.
Consumers have also alleged that repeated changes in the stated basis for denying coverage, reliance on disputed interpretations of contractor reports, and broad application of policy exclusions make it difficult to determine whether claims are being evaluated consistently and fairly.
This investigation seeks to determine whether Choice Home Warranty properly evaluates HVAC claims, accurately represents contractor findings, fairly applies policy exclusions, and fulfills its contractual obligations when covered home systems experience mechanical failures.
Potential Claims May Include
- Consumer Protection
- Deceptive Trade Practices
- Breach of Contract
- Breach of Express Warranty
- Breach of the Implied Covenant of Good Faith and Fair Dealing
- Unjust Enrichment
- State Home Warranty or Service Contract Act Violations
- State Consumer Fraud Statute Violations
Signs You May Be Affected
You may be affected if:
- You purchased a Choice Home Warranty home warranty plan.
- You submitted an HVAC, heating, or air conditioning claim while your policy was active.
- Your claim was denied because Choice concluded the failure resulted from an excluded condition.
- You believe the servicing contractor’s report did not support the stated reason for denying coverage.
- Choice later changed its explanation for denying your claim.
- You were offered only a partial “goodwill” payment instead of warranty coverage.
- You were required to pay for repairs yourself before reimbursement would be considered.
- You paid significant repair costs that you believe should have been covered under your warranty.
If you have encountered these issues, we would like to hear from you. Please complete the contact form on this page, send us an email at [email protected], or give us a call at (202) 470-3520.