Arizona’s Attorney General announced a nearly $12 million settlement with Choice Home Warranty following a long-running fraud lawsuit.
What Happened
- Choice Home Warranty agreed to pay $11.8 million to settle the case (while denying wrongdoing).
- The lawsuit was originally filed six years ago.
- Since 2013, more than 1,500 complaints were filed by Arizona consumers.
- Allegations centered around:
- Failing to replace or repair major appliances that were advertised as covered.
- Misrepresenting coverage.
- Denying claims using fine-print exclusions.
- The settlement requires:
- Payment of restitution.
- Reforms to sales practices.
- Clearer disclosure of what is and is not covered in plain language.
Who May Be Eligible
- Arizona residents who purchased a Choice Home Warranty over the phone between 2013 and 2023.
- The Attorney General’s office will release claim instructions soon.
Why This Matters for Real Estate Investors
- Home warranties are often used by landlords to:
- Control maintenance costs.
- Protect against large repair expenses.
- Add peace of mind for out-of-state owners.
- This case reinforces:
- The importance of reading warranty contracts carefully.
- Understanding exclusions and claim limitations.
- Having backup maintenance strategies in place.
For Arizona single-family rental investors in Maricopa and Pinal County, maintenance risk management is not optional — it directly impacts cash flow, tenant satisfaction, and long-term asset performance.