Fifty-eight days separated two press releases from Choice Home Warranty in early 2026. In the first, the company agreed to pay $11.8 million to settle an Arizona consumer fraud lawsuit that had been running since 2019. In the second, USA TODAY named it one of America’s 500 Most Trusted Brands. The same CEO signed both.
The Arizona case stretched back to June 2019, when a contractor in Scottsdale called the company’s claims line three times in a single afternoon on behalf of Roger Pencek, whose air conditioning unit had failed in 108-degree heat. Each call carried the same diagnosis: normal wear and tear, a covered condition under Pencek’s policy. When the company’s response came back, those words had changed. Short to ground, forced to fail. The claim was denied.
That exchange went into the lawsuit record. Here is what both records show.
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What Awards Has Choice Home Warranty Won?
Since 2020, Choice Home Warranty has received 11 documented recognitions from independent organizations, none of them self-created.
| Year | Recognition | Organization |
|---|---|---|
| 2020 | Best Home Warranty Company | U.S. News & World Report |
| 2020 | People’s Choice Award | HomeWarrantyReviews.com |
| 2020 | Consumer’s Choice Award | Best Company LLC |
| 2021 | Best Home Warranty Company | U.S. News & World Report |
| 2021 | Best Claim Service Award | U.S. News & World Report |
| 2022 | Best Home Warranty Company | U.S. News & World Report |
| 2022 | Top-Rated Company | HomeWarrantyReviews.com |
| 2023 | Top-Rated Company | HomeWarrantyReviews.com |
| 2024 | Top-Rated Company | HomeWarrantyReviews.com |
| 2025 | Preferred Home Warranty Provider | Crye-Leike Realtors |
| 2026 | Most Trusted Brand | USA TODAY |
U.S. News gave the company two separate recognitions in 2021: the Best Home Warranty Company ranking and a distinct Best Claim Service Award, the latter specifically for claims processing efficiency. The 360 Reviews team evaluated 24 home warranty companies that year, surveyed more than 1,000 customers, and compared product features directly. The confirmed U.S. News streak ran from 2020 through 2022. Home Warranty of America, a separate brand that Choice Home Warranty has owned since February 2022, later received the U.S. News Best Overall designation for 2025-2026.
The April 2026 USA TODAY recognition drew on the broadest consumer base in the list. Research partner Plant-A Insights Group surveyed 23,000 Americans and analyzed 760,000 brand reviews, scoring brands on five dimensions: transparency, reliability, emotional connection, values alignment, and likelihood to purchase. The study ran in September and October 2025, while the Arizona lawsuit was still in active proceedings. Of more than 20,000 brands evaluated, 500 were named.
How Reviewers Score Choice Home Warranty
Independent scoring from NerdWallet, HomeWarrantyReviews.com, and Today’s Homeowner follows the same shape: coverage limits and price score well, customer satisfaction and service fees score lower.
HomeWarrantyReviews.com has run its annual industry program since 2012. Before any company enters scoring, it must meet three criteria:
- At least five years in the home warranty industry
- A minimum customer base of 5,000 homeowners
- Coverage in more than 75 percent of U.S. states
Scoring then covers claims processing speed, customer retention rates, digital platform usability, and social media responsiveness. The platform carries more than 90,000 consumer reviews across 80-plus companies. Choice Home Warranty won the People’s Choice designation in 2020, then the Top-Rated award in three consecutive years from 2022 through 2024.
NerdWallet rates the company 3.5 out of 5 overall as of 2026:
| Category | Score |
|---|---|
| Coverage Limits | 5.0 / 5 |
| Price | 4.0 / 5 |
| Breadth of Coverage | 4.0 / 5 |
| Service Fees | 3.0 / 5 |
| Customer Satisfaction | 3.0 / 5 |
NerdWallet designates CHW as “Most Popular” among its top home warranty picks and “Best for Sprinkler Systems” in the broader category. Today’s Homeowner scored the company 8.6 out of 10 across coverage, affordability, reputation, and claims process.
The BBB currently assigns a B rating. Choice Home Warranty is not BBB accredited, meaning it has not met the BBB’s standards for membership.
What Legal Cases Has Choice Home Warranty Settled?
The company has reached settlements with two state attorneys general, beginning in 2015. Together, those cases document more than 2,500 consumer complaints from across multiple states.
New Jersey, 2015
The New Jersey Division of Consumer Affairs settled a complaint against CHW Group, Inc., the legal entity behind the Choice Home Warranty name, for $780,000. Filed in 2014, the complaint alleged the company denied valid claims through deceptive practices, including requiring maintenance records that most homeowners do not have. The settlement mandated revised business practices and a court-appointed compliance monitor. The state had collected 1,085 complaints from consumers in New Jersey and at least 25 other states.
Arizona, 2026
Attorney General Mark Brnovich filed a consumer fraud lawsuit against Choice Home Warranty in October 2019. The case ran through two state administrations. Attorney General Kris Mayes, who took office in January 2023, said the company fought proceedings through “numerous discovery disputes” that pushed the case close to trial before mediation produced a resolution.
Mayes announced the $11.8 million settlement on February 10, 2026, the largest against a home warranty company in Arizona history. The case covered more than 1,500 consumer complaints filed between 2013 and 2023, with the state alleging the company changed contract language to turn covered claims into denied ones. CEO James Mostofi said the agreement included “no finding of wrongdoing, no admission of liability, and no civil penalties.”
Arizona residents: Anyone who purchased a Choice Home Warranty contract by phone for an Arizona property between January 1, 2013 and January 1, 2023 may qualify for restitution up to the full contract price. The filing deadline is August 1, 2026. Contact the Arizona Attorney General’s consumer protection office for claim details.
What to Check Before Signing a Home Warranty Plan
Before purchasing coverage from any home warranty provider, verify these:
- Request the full sample contract before paying anything. Coverage exclusions are in that document, not in advertisements or award listings.
- Read what “normal wear and tear” means under the specific contract terms. The Arizona case turned on how that phrase was applied to individual claims.
- Confirm which systems your plan includes. The Basic Plan does not cover air conditioning. The Total Plan does.
- The service call fee is $100 per visit, regardless of whether the claim is approved.
- CHW does not operate in Washington state.
- Check recent reviews on Trustpilot and ConsumerAffairs alongside summary scores. The company has more than 57,000 Trustpilot reviews as of 2026.
Roger Pencek was one of two homeowners the Arizona Attorney General brought to her press conference on February 10, 2026. The contractor who called three times never changed his diagnosis. The contract language did.
