Choice Home Warranty uses aggressive pre-existing condition language and strict maintenance documentation requirements to deny claims. Their terms place the burden of proof on homeowners to demonstrate proper maintenance history, which most cannot provide for systems installed before their ownership.
Any condition that "could have been detected" through inspection is considered pre-existing. This retroactive standard means issues discovered after purchase can still be denied as pre-existing based on theoretical detectability.
Claims can be denied if you cannot provide maintenance records for covered systems. For HVAC, this means annual service records. Most homeowners, especially new buyers, cannot produce years of prior maintenance documentation.
Coverage doesn't begin until 30 days after purchase. Claims for issues arising during this period are denied, even if they weren't apparent at signup. This creates a coverage gap when buying a new home.
When systems are replaced rather than repaired, Choice calculates replacement value using depreciation. A 10-year-old HVAC system may only receive a fraction of actual replacement cost.
All disputes require binding arbitration with class action waivers. The arbitration clause survives contract termination, meaning you can't sue even after canceling service.
Warranty can transfer to new homeowners during home sales, providing continuity of coverage.
Various coverage tiers allow customization based on home systems and appliances you want covered.