Choice Home Warranty: A good choice for homeowners looking for high limits

Maintenance is often one of the major costs of home ownership — and your regular home insurance doesn't cover it. That's where a home warranty can help, covering wear and tear of your home's most important systems, such as HVAC and plumbing, and your appliances.

If you'd like a home warranty plan with high coverage limits, Choice Home Warranty can be a great provider to consider. CNBC Select reviews the company, breaks down Choice's plans and pricing and compares them to the competition.

Choice Home Warranty is a home warranty provider based in New Jersey. It offers two simple home warranty plans for homeowners, as well as home sellers. You can also pick add-ons to add to your policy.

The company has a nationwide network of over 25,000 contractors and accepts claims 24/7. In addition to the monthly fee you pay for coverage, you'll also need to cover the cost of the technician's labor with a service call fee of $100.

Choice Home Warranty charges a single flat service fee of $100. This is different from competitors such as AFC Home Warranty and American Home Shield, which both let you choose a flat service fee of $75, $100 or $125 for your plan, with a higher fee giving you a lower monthly cost for your warranty.

Service providers working Choice Home Warranty guarantee the quality of the materials for 90 days, and the quality of labor for 60 days. If you file a complaint with the service provider, they're obligated to redo the job at no cost to you.

Where Choice Home Warranty stands out the most is with its high coverage limits. The company offers a coverage cap of $5,000 per covered item, which landed it on our list of the best home warranties. To compare, AFC Home Warranty pays up to $3,000 per item. Select Home Warranty sets varying limits depending on the item type. For example, for appliances, plumbing and electrical systems, the cap is $500, and for HVAC — $3,000.

Choice Home Warranty provides service nationwide, except for Washington state.

Choice Home Warranty offers two plans: the Basic Plan and the Total Plan. Each plan requires a monthly fee, and pricing depends on factors such as your home location.

The Basic Plan is the more affordable plan. According to the information Choice Home Warranty shared with CNBC, its average monthly cost is $46. It covers the following items and systems:

• Heating system
• Electrical system
• Plumbing system
• Plumbing stoppage
• Water heater
• Whirlpool bathtub
• Oven, range or stove
• Cooktop
• Dishwasher
• Built-in microwave
• Garbage disposal
• Ductwork
• Garage door opener
• Ceiling and exhaust fans

The Total Plan costs $55 per month on average. It covers everything included in the Basic Plan, plus:

• Air conditioning system
• Refrigerator
• Clothes washer and dryer

The provider also allows you to add the following optional coverages:

• Pool/spa
• Well pump
• Sump pump
• Central vacuum
• Limited roof leak
• Septic system
• Septic tank pumping
• Second refrigerator
• Stand-alone freezer

Choice Home Warranty's call centers take service requests 24 hours a day, seven days a week. In some states, weekend, holiday and evening service is only available when it's essential to your health and safety.

Additionally, you can receive a month of coverage for free when purchasing a single-payment home warranty plan. This can help you save on home warranty costs, so consider this promotion when you shop around for a provider and gather quotes.

Finally, Choice Home Warranty provides a response time of four hours for service requests. This way, you can rest assured your issue will be taken care of promptly.

Overall, Choice Home Warranty has plenty to offer, from straightforward plan structures with a handful of add-ons to customize them, to predictable service fees and swift response times.

Still, you always want to compare multiple options when choosing a financial product. For example, some companies can offer more in terms of membership benefits. American Home Shield especially stands out here. Depending on the plan, you can access maintenance services, HVAC upgrade discounts, rekeying, tech installation and support and more. Plus, American Home Shield offers three plans for you to choose from, so it may be easier to get exactly the coverage you need.

On the other hand, if your priority is to find affordable coverage, look into Select Home Warranty. The company advertises generous discounts on all of its plans. On top of that, you'll get free roof coverage, whichever plan you choose.

When you gather quotes, make sure you compare coverage limits, exclusions and other terms. Remember that a lower price doesn't always mean a better deal if you're getting less protection.

Choice Home Warranty can be a good choice if you want high coverage caps and prefer home warranty plans with a simple structure. That said, other providers may offer more extra benefits and opportunities to customize your plan.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every home warranty review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of home warranty products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

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