$11.8M Choice Home Warranty Arizona Settlement, They Promised to Cover Your A/C and Appliances, Arizona Says It Didn’t.Get Your Money Back Before August 1

The Arizona Attorney General’s Office sued Choice Home Warranty in 2019, alleging the company sold home warranty policies over the phone while hiding the exclusions that would let it deny most claims. After more than six years of litigation, Choice Home Warranty agreed to a consent judgment on January 23, 2026, requiring it to pay $11.8 million — the largest home warranty consumer fraud settlement in Arizona history. Arizona homeowners who bought a CHW policy by phone between 2013 and 2023 can now file for restitution of up to the full purchase price of their warranty. The claim deadline is August 1, 2026.

Field	Detail
Settlement Amount	$11,800,000
Claim Deadline	August 1, 2026
Who Qualifies	Arizona residents who purchased a Choice Home Warranty by phone, Jan. 1, 2013 – Jan. 1, 2023
Payout Per Person	Up to the full purchase price of your warranty
Proof Required	Yes — contract details and experience description required
Settlement Status	Consent judgment entered Jan. 23, 2026; restitution process open
Administrator	Arizona Attorney General’s Office
Official Website	azag.gov/consumer/chw

Where things stand: The consent judgment is final and entered. The Arizona AG’s office opened the restitution claim process on March 26, 2026. Choice Home Warranty will pay in installments — $275,000 per month for 24 months, then $125,000 per month for 41 months. Restitution goes out on a rolling basis as funds arrive, meaning earlier filers may be paid sooner.

The Promise Was Coverage. The Reality Was a Runaround.

Choice Home Warranty, a New Jersey-based company, marketed its policies to Arizona homeowners as protection against expensive, unexpected repairs — particularly for air conditioning units, which can fail catastrophically during Arizona summers. The company sold those policies almost exclusively over the phone, and that phone sales process is at the center of the case.

The Arizona AG’s lawsuit alleged that telephone sales representatives failed to disclose important exclusions and limitations — or outright misrepresented what the warranties would cover. When customers filed claims, the company found reasons to deny them: rust and erosion exclusions applied to failures that contractors had already ruled free of rust, “normal wear and tear” that the policy was supposed to cover suddenly fell outside its terms, and repair costs were capped at levels that didn’t come close to the actual replacement cost.

One Arizona customer, whose elderly father’s air conditioning evaporation coil failed, said Choice Home Warranty told him the policy didn’t cover rust and erosion — even though an independent contractor had already concluded no rust or erosion was present. The father paid $5,800 out of pocket to replace the coil and later canceled his policies on both Arizona homes without reimbursement. Another customer said his A/C failed in June 2019 during 108-degree Phoenix heat. CHW denied coverage and he paid $2,700 out of pocket.

Arizona AG Kris Mayes said her office received more than 1,500 consumer complaints against the company between 2013 and 2023, and that approximately 60,000 Arizonans may have purchased policies from Choice Home Warranty. This is not the company’s first brush with a state attorney general: Choice Home Warranty settled a similar lawsuit with the state of New Jersey in 2015, but Arizona AG Mayes says the company never corrected its business practices in Arizona after that earlier settlement.

Choice Home Warranty denies all allegations and admits no wrongdoing as part of the consent judgment.

You Bought the Policy by Phone. The Arizona Property Matters. The Decade-Long Window Is Wide.

This restitution process is open to a large group of Arizona homeowners — but there are specific criteria that every claimant must meet.

• You may qualify if you purchased a Choice Home Warranty contract over the phone (not online).
• You may qualify if the warranty covered a property located in Arizona.
• You may qualify if your purchase happened between January 1, 2013, and January 1, 2023.
• You do not need to have filed a prior complaint with the Attorney General’s Office to be eligible.
• You do not need to call the AG’s complaint hotline — only completing the online claim form counts.

A few important caveats directly from the AG’s office: not every eligible customer will automatically receive restitution. Eligibility and the amount received will be at the sole discretion of the Attorney General. Due to the nature of the settlement, restitution may not be immediately available to all claimants. Restitution will be paid on a rolling basis as funds are received from the company.

The clearest path to being considered: submit the form with as much supporting detail as possible.

Related article: Morrow County residents in northeast Oregon Well Water Has Been Poisoned for Decades. Now Amazon Is Paying $20.5 Million — and the Lawsuit Isn’t Over.

You Could Get Back Every Dollar You Paid for the Warranty

The maximum restitution amount is the full purchase price of your warranty contract — not a fixed dollar figure, not a pro-rata share of a capped fund. If you paid $600 a year for five years, you could theoretically recover up to $3,000. The actual amount each claimant receives will depend on the total number of valid claims, available funds at each distribution, and the AG’s review of individual circumstances.

Payments go out on a rolling basis as Choice Home Warranty makes its installment payments to Arizona. The company pays $275,000 per month for the first 24 months, then $125,000 per month for the following 41 months. This means claimants who file early — and whose claims the AG’s office approves in early review rounds — may receive payment before those who file closer to the August deadline.

There is no guarantee that every eligible person will receive the full purchase price. The AG’s office controls the distribution entirely and has full discretion over individual amounts.

The Claim Isn’t a Two-Click Form — Here’s What You’ll Need to Include

This restitution process requires more information than a typical class action claim form. The AG’s office asks for documentation and a description of your experience, not just your name and address.

1. Go to azag.gov/consumer/chw — this is the official restitution form managed directly by the Arizona Attorney General’s Office.
2. Enter your contact information — name, address, and phone number.
3. Provide your warranty contract details — the start and end dates of your CHW contract, whether the contract was canceled, and how you purchased it (must be by phone).
4. Describe your experience — a written account of what happened when you filed a claim, what CHW denied, and what you paid out of pocket. Be as specific as possible: dates, amounts, the appliance or system involved.
5. Upload supporting documents if available — copies of your service contract, denial letters, repair invoices, or any other relevant paperwork. These are not required but strengthen your claim.
6. Submit the form — only those who complete and submit the form are eligible. Submitting a prior consumer complaint with the AG’s office does not count as a claim.

Estimated time to complete: 15–20 minutes, depending on how much documentation you gather.

Seven Years From Lawsuit to Restitution Check — The Full Timeline

Milestone	Date
Original lawsuit filed by AG Brnovich	October 2019
AG Mayes takes office and revives case	January 2023
Class period begins (purchase window)	January 1, 2013
Class period ends (purchase window)	January 1, 2023
Consent judgment entered	January 23, 2026
Settlement publicly announced	February 10, 2026
Restitution claim process opens	March 26, 2026
Claim filing deadline	August 1, 2026
Payments begin	Rolling basis as CHW installments arrive
Final payment from CHW expected	TBD — approximately 5.5 years from judgment

Frequently Asked Questions

I had a Choice Home Warranty policy but I don’t remember exactly when I bought it. Can I still file? 

Yes. Provide as much information as you can recall — even an approximate year — along with any documents you still have. The Arizona AG’s office will review your submission and determine eligibility. Old bank or credit card statements showing recurring payments to Choice Home Warranty can help establish the purchase window.

I filed a complaint with the AG’s office years ago. Does that count as a claim?

 No. Consumers do not need to submit a separate consumer complaint or call the consumer complaint line to be considered for restitution, and only those who complete the online restitution form will be eligible. If you previously filed a complaint, you must still complete the form at azag.gov/consumer/chw to receive any payment.

Do I need a lawyer to file for restitution? 

No. The restitution process runs directly through the Arizona Attorney General’s Office, not through a court claim system. Filing the online form is free and you do not need legal representation to participate.

Is this settlement legitimate?

 Yes. The case is State of Arizona v. Choice Home Warranty, filed in Maricopa County Superior Court. The consent judgment was formally entered on January 23, 2026. The restitution process is administered entirely by the Arizona Attorney General’s Office at azag.gov. There is no third-party administrator involved.

When will I receive my payment? 

Payments go out on a rolling basis as Choice Home Warranty makes monthly installment payments to Arizona. There is no single payment date. Earlier approved claims are likely to be paid first. The AG’s office has not published a specific payment schedule.

What if I missed the August 1, 2026 deadline?

 The AG’s office has stated that only those who complete the online form are eligible. If the deadline has passed, your options are limited. You could potentially pursue an individual civil claim against Choice Home Warranty under the Arizona Consumer Fraud Act, though you should consult an attorney about the statute of limitations for your specific situation.

Will this restitution payment be taxable?

 Restitution payments intended to restore a consumer’s actual out-of-pocket losses are generally not considered taxable income. However, if your payment exceeds the amount you paid for the warranty — or if your losses were previously deducted — different rules may apply. Consult a tax professional if you receive a significant payment.

Does this settlement affect my current Choice Home Warranty policy? 

The consent judgment requires Choice Home Warranty to reform its sales practices and provide plain-language disclosures about coverage and exclusions before taking payment information from new customers. Investigators from the AG’s office may pose as customers to ensure the company complies with those new rules. If you have a current policy, the settlement does not cancel or modify it — but CHW must now be more transparent about what it covers going forward.

Sources & References

• Arizona Attorney General’s Office restitution announcement: azag.gov
• Official restitution claim form: azag.gov/consumer/chw
• Original 2019 lawsuit filing: azag.gov
• Courthouse News Service coverage: courthousenews.com

Last Updated: April 1, 2026

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Legal claims and outcomes depend on specific facts and applicable law. For advice regarding a particular situation, consult a qualified attorney.