Choice Home Warranty

What Choice Home Warranty does

Choice Home Warranty is a privately-held U.S. home warranty service contract provider, founded in 2008 and headquartered in Edison, New Jersey, operating as a subsidiary of Rely Home, Inc. The company sells annual and monthly subscription contracts that cover the repair or replacement of major home systems and appliances—including HVAC, plumbing, electrical, water heaters, kitchen appliances, and laundry equipment—through a network of 25,000+ licensed contractors across 49 states. Choice Home Warranty has cumulatively covered more than 2.4 million homes and handled over 8 million service requests.

The company operates a two-tier product structure (Basic Plan and Total Plan) with 18+ optional add-on modules covering pools, spas, well pumps, septic systems, smart home devices, outdoor kitchens, and external utility lines. Technology infrastructure includes an online account center for 24/7 claims submission, a contractor portal with sub-10-minute on-site authorization and 2-hour average response times, and a one-click integration with Lone Wolf Technologies' real estate transaction platform. The company distributes through direct-to-consumer online and call-center channels, a dedicated realtor portal serving real estate professionals, and embedded integration with real estate software, with revenue generated from recurring subscription fees plus a $100 per-claim service call fee.

The business model is B2C subscription-based with a B2B2C channel through real estate professionals who include warranties as part of property transactions. The company operates through multiple state-specific legal entities (American Global Obligors, Inc., Home Service Club of California, Home Service Club Warranty Corp.) to meet state regulatory requirements. The brand portfolio was expanded by the acquisition of Home Warranty of America in 2016 (announced as a separate transaction in February 2022), and the company holds sustained recognition from U.S. News & World Report, BestCompany.com, and MarketWatch Guides as a top home warranty provider.

Name

Choice Home Warranty

Legal name

Choice Home Warranty (operated by American Global Obligors, Inc. and affiliated entities)

Website

https://choicehomewarranty.com

Company type

Private

Founded year

2012

Operating status

Operating

Headcount range

251–500 employees

Short description

Choice Home Warranty is a U.S. home warranty service contract provider selling subscription plans to homeowners, buyers, and sellers covering repair and replacement of home systems and appliances through a 25,000+ contractor network across 49 states, operating under parent Rely Home, Inc.

Ownership category

akta.pro rank

Product category

Home Warranty Services

NAICS

Home and Garden Equipment and Appliance Repair and Maintenance (81141), Personal and Household Goods Repair and Maintenance (8114)

akta.pro primary industry

Home Warranty / Residential Service Contracts (Systems & Appliances) (FSAJALAG)

akta.pro secondary industry

Appliance & Major Home Equipment Protection Plans (FSAJALAI)

Keywords

• Home warranty services
• Appliance repair coverage
• Home system protection
• Service contract plans
• Contractor network services

Headquarters

HQ city

Edison

HQ country

United States

HQ region

North America

Offices5 records

Markets served

GTM type

B2C

Offering type

Services

Cost components

Operations, Personnel, Marketing or Sales, Technology or R&D, Infrastructure

Revenue model

1. Home Warranty Service Contracts: Annual or monthly subscription-based service contracts that cover repair and replacement of home appliances and systems. Customers pay an annual or monthly fee plus a per-claim service call fee ($100 standard). The company handles all repairs through its network of 25,000+ licensed contractors.
2. Optional Add-on Coverage: Additional premium coverage for items like pools, spas, well pumps, septic systems, sump pumps, central vacuums, roof leaks, sprinkler systems, second refrigerators, stand-alone freezers, ice makers, and trash compactors for additional fees on top of base plan.

Pricing tiers

Go-to-market motion3 records

Distribution channels5 records

Marketing channels7 records

Core offering

Choice Home Warranty sells annual and monthly service contracts (home warranties) that cover the repair or replacement of major household systems (heating, cooling, plumbing, electrical, water heater, ductwork) and appliances (refrigerator, oven/range, dishwasher, washer, dryer, garbage disposal) when they break down from normal wear and tear. Coverage is delivered through a nationwide network of 25,000+ licensed contractors dispatched after a $100 per-claim trade service fee, with plans offered in two tiers (Basic and Total) plus 18+ optional add-on modules.

Product overview

Choice Home Warranty offers home warranty service contracts covering repair and replacement of major home systems and appliances. The company provides two core plan tiers: the Basic Plan covering essential systems like heating, plumbing, electrical, water heater, and kitchen appliances; and the Total Plan adding comprehensive coverage including air conditioning, refrigerator, clothes washer, and clothes dryer. The portfolio includes 18+ optional add-on modules (pool/spa, well pump, sump pump, roof leak, septic systems, sprinkler systems, smart home options, outdoor kitchen, guest house, external water/sewer lines, and more) that customers can layer onto their base plan. The company also acquired Home Warranty of America in 2022, expanding its brand portfolio. Plans are available in 49 states with coverage starting 30 days after enrollment, subject to a $3,000 per-item coverage limit and $100 trade service call fee.

Differentiator

Problem solved

Functional benefit

Brands

• Home Warranty of America: Acquired home warranty brand operating under the Choice Home Warranty family.

Products and services

• Total Plan Comprehensive home warranty plan covering air conditioning, heating, electrical, plumbing, water heater, kitchen appliances (refrigerator, oven/range/stove, cooktop, dishwasher, built-in microwave), clothes washer, clothes dryer, garbage disposal, whirlpool bathtub, ductwork, garage door opener, and ceiling/exhaust fans. Optional add-ons are available.
• Basic Plan Essential home warranty plan covering heating systems, ducts, plumbing systems, water heaters, kitchen appliances (oven, range, stove, cooktop, dishwasher, built-in microwave), garbage disposal, whirlpool bathtub, plumbing stoppage, garage door opener, exhaust fans, and ceiling fans. Air conditioning, refrigerator, clothes washer, and clothes dryer are not included unless added.
• Pool and Spa Equipment Coverage Optional add-on coverage for above-ground components of pool and spa heating, pumping, and filtration systems including pool sweep motor, pump motor, blower motor, timer, plumbing pipes, and wiring.
• Well Pump Coverage Optional add-on coverage for all components and parts of the well pump utilized for the main dwelling, with up to $500 for access, diagnosis, and repair/replacement.
• Sump Pump Coverage Optional add-on coverage for sump pumps handling ground water in a sump pit/basin.
• Central Vacuum Coverage Optional add-on coverage for all mechanical system components and parts of central vacuum systems.
• Limited Roof Leak Coverage Optional add-on coverage for repair of shake, shingle, and composition roof leaks over occupied living area, with up to $500 for access, diagnosis, and repair/replacement.
• Septic System Coverage Optional add-on coverage for sewage ejector pump, control box, jet pump, and aerobic pump, with up to $500 for access, diagnosis, and repair/replacement.
• Second Refrigerator Coverage Optional add-on coverage for a second refrigerator or stand-alone freezer, including all components and parts and integral freezer unit.
• Septic Tank Pumping Coverage Optional add-on coverage for main line stoppages/clogs, with septic tank pumping one time during agreement term if backup occurs, up to $250 per term.
• Sprinkler System Coverage Optional add-on coverage for sprinkler system control box, outside or underground piping, and sprinkler heads.
• Smart Home Option Coverage Optional add-on coverage for replacement of one smart/Wi-Fi-enabled item per contract year: electrical switch, electrical outlet, thermostat, door lock, doorbell, or garage door opener.
• Outdoor Kitchen Coverage Optional add-on coverage for outdoor kitchen components including ceiling fan, outdoor refrigerator, dishwasher, electrical wiring/outlets, garbage disposal, faucets, and plumbing water/drain/gas lines, up to $1,000 for access, diagnosis, and repair/replacement.
• Guest House/In-Law Suite Coverage Optional add-on coverage for one of each: clothes dryer, clothes washer, built-in microwave, oven/range/cooktop, dishwasher, garbage disposal, kitchen refrigerator, ceiling fan, bathroom fan, attic fan, up to $1,500 per covered item.
• External Water Line Coverage Optional add-on coverage for leaks or breaks of water service line between the utility's point of responsibility and the home's inlet side of the water meter, up to $1,500 for access, diagnosis, and repair/replacement.
• External Sewer & Septic Line Coverage Optional add-on coverage for leaks, blocks, or breaks of sewer service line from the utility's point of responsibility to the foundation, up to $1,500 per 12-month period.
• Water Softener Coverage Optional add-on coverage for all components and parts of water softener systems, excluding leased/rented units and treatment components.
• Beverage/Wine Refrigerator Coverage Optional add-on coverage for all components and parts of beverage or wine refrigerator units.
• Home Warranty of America Home warranty brand acquired by Choice Home Warranty whose assets joined the Choice Home Warranty family in February 2022 to expand the company's portfolio of home warranty service contract brands.

Quantifiable outcome

• Homes with home warranty sell 50% faster than homes without
• +4 more outcomes

Named customers6 records

Segments4 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature5 records

Partnerships

Four partnerships are on record, tiered core and minor.

• Home Warranty of America (HWA)coreStrategic or Co-development Partner · 8 February 2022Choice Home Warranty acquired certain assets of Home Warranty of America to enhance position as leading provider of home warranty service contracts and accelerate mission to become US' largest and most respected home warranty provider. HWA joins Choice Home Warranty family of brands.
• National Home Service Contract Association (NHSCA)minorOthers · 3 December 2021Choice Home Warranty became a member of NHSCA, an industry trade organization serving home service contract providers and consumer interest throughout the United States.
• Lone Wolf TechnologiescoreTechnology or Integration · 15 November 2021Strategic partnership with Lone Wolf Technologies provides users ability to streamline workflow and keep all documentation, including warranties, in one location. Choice Home Warranty products are now available through Lone Wolf's digital platform enabling one-click home warranty for real estate transactions.
• Rely Home, Inc.coreStrategic or Co-development PartnerRely Home, Inc. is the parent company of Choice Home Warranty and operates multiple home warranty brands including Choice Home Warranty, Home Warranty of America, The Home Service Club, and Lineguard Solutions. Rely Home continues expansion across all 50 U.S. states.

Scale indicators10 records

Recent moves7 records

Expansion highlights5 records

Direct peers

• American Home Shield (Frontdoor): Largest US home warranty provider, offering service contracts covering home systems and appliances to homeowners nationwide. Direct competitor with similar Basic/Total plan structure, contractor dispatch model, and real-estate-channel focus.
• First American Home Warranty: Major US home warranty provider operating in most states with similar annual subscription plans and real estate professional channel partnerships. Most direct competitor by plan design and distribution.
• Cinch Home Services: National home warranty provider offering multi-tier appliance and systems coverage with strong real estate channel presence. Directly competes with Choice Home Warranty on realtor partnerships and bundled buyer/seller plans.
• Liberty Home Guard: Fast-growing national home warranty company with comparable appliance and systems coverage tiers and 24/7 claims service. Competes head-to-head with CHW on direct-to-consumer and real estate channels.
• Old Republic Home Protection: Established home warranty provider operating across multiple states with similar systems and appliance coverage plans. Competes in the same real-estate-anchored distribution model and is frequently cited alongside CHW in industry rankings.
• Landmark Home Warranty: Regional-to-national home warranty provider with comparable tiered plans and contractor-dispatch service model. Competes for real estate agent referrals and direct homeowner sign-ups.
• 2-10 Home Buyers Warranty: Long-standing home warranty provider primarily distributed through new-home builders and real estate channels. Comparable business model with builder-channel and resale-warranty offerings.
• America's Preferred Home Warranty: Mid-sized national home warranty provider competing in similar tiered-plan structure with strong real estate channel partnerships. Comparable pricing model and geographic coverage.

Emerging players

• HomeServe USA: Provider of home repair service plans (external water/sewer lines, HVAC, electrical) often distributed through utility and municipal partnerships. Comparable subscription service-contract model with adjacent (external line) coverage that overlaps with CHW add-ons.
• Total Home Protection: Smaller national home warranty provider with comparable appliance and systems coverage tiers. Competes on price-sensitive segments and on real estate professional referrals.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/choicewarranty
• Facebookfacebook.com/choice.home.warranty
• LinkedInlinkedin.com/company/choice-home-warranty

Revenue estimate

Valuation estimate

Number of profiles

Profiles3 records

Subsidiaries1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A2 records

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Choice Home Warranty