AURORA, Colo. — An Aurora man called it "a bad choice," as the Choice Home Warranty he thought would give him peace of mind when major appliances or systems broke down instead cost him thousands of dollars and left him without coverage when he needed it most.
Saul Lewis, a semi‑retired property manager, said he bought five "platinum" Choice Home Warranty (CHW) policies, covering his home and rental properties.
Each cost a little over $1,500, he said, and he thought they would cover "everything across the board" with just a $75 deductible.
"Choice appeared to have a good reputation, but every time we filed a claim, they found a reason not to cover an item," Lewis said. "You’re paying for service, peace of mind, and you think you have it paid for, and you don’t."
In April, Lewis’ 19‑year‑old air conditioner failed. He believed his warranty covered all components and parts for HVAC systems. But weeks later, he said CHW denied his claim, citing "a restriction in the system, not normal wear and tear."
He said the decision was vague and unsupported.
"They wouldn't repair it, and they wouldn't give me any information supporting why they can't fix or replace it," he said.
► Watch Jaclyn Allen's report in the player below:
Last year, Lewis said, the company also denied his claim to replace a broken range hood exhaust fan, despite the warranty listing ovens, ranges, and exhaust fans as covered. After he appealed, he said, the company paid him $300 for a repair that cost him $1,200 out of pocket.
The Better Business Bureau reports thousands of complaints nationwide about Choice Home Warranty.
In response to Denver7’s questions, the Colorado Division of Real Estate said home warranty service contracts are not regulated in Colorado.
In a statement, David L. Donnelly, Education, Communication & Policy Manager for the division, said: "In Colorado, there is no regulatory program associated with home warranty service contracts."
That means customers whose claims are denied may need to pursue private legal action or file complaints with the BBB.
In February, Arizona Attorney General Kris Mayes announced the largest settlement with a home warranty company in state history: an $11.8 million agreement with Choice Home Warranty to "reform its sales practices and provide meaningful disclosure to consumers prior to selling warranties."
Choice Home Warranty denies the allegations and has not admitted wrongdoing.
The AG’s lawsuit, filed in 2019, alleged Choice misrepresented coverage and failed to replace air conditioning units and other appliances it had advertised as covered.
In a news conference, Mayes said, "These families thought that they were buying peace of mind. They paid for warranties believing they would cover major repairs or replacements when air conditioning units failed in the brutal Arizona heat, or when their water heaters gave out, or when their appliances broke down. But when they needed that coverage the most, Choice Home Warranty was not there for them.”
Her office said more than 1,500 Arizona customers had complained about the company since 2013.
Complaints included alleged failures to disclose exclusions and limitations, and outright misrepresentations of what repairs or replacements the warranties would cover.
The Arizona case followed a $780,000 settlement with the New Jersey Attorney General in 2015, where the company also agreed to revise its business practices.
At the Arizona AG’s press conference in February, Scottsdale homeowner Roger Penchek described how his AC compressor failed in 108‑degree heat.
His contractor diagnosed "normal wear and tear," the type of failure the warranty covered, but Penchek said Choice reclassified it to deny coverage: "They seemed to fabricate a reason why they would not pay. They overrode their own contractor’s findings. They twisted technical language to manufacture an exclusion."
Another customer, Philip Anglotti Jr., told reporters about his 93‑year‑old father, a veteran, who also faced a denied AC claim and never received the reimbursement he was promised after canceling his policies: "They made it clear they had no intention of honoring their commitment. They just wanted him to give up."
Joe Ducey from the Better Business Bureau, speaking in Arizona, urged consumers to research home warranty companies before buying: "You can look at complaints on BBB.org… check deductibles, caps, and whether normal wear and tear is covered. Know the exclusions before you sign."
Denver7 Investigates reached out to Choice Home Warranty with detailed questions about Lewis' experience and the broader complaints. A representative responded that they will "send the information to the appropriate person, who will reply back to you on how we will be moving forward." No reply has been received as of our deadline.
Lewis, who still has another year left on his policies, said he won’t be filing more claims.
"I really believe it's an issue that the state ought to take up. They shouldn’t allow companies to operate freely, making millions of dollars off our citizens and have no consequences," he said.
He hoped sharing his story would prevent others from facing the same fight: "I want to share my story so people don’t get taken."
