Choice Home Warranty Furnace failed and needed replacement. Inspection was performed on 1/3/2024. The failed part was not available and it was determined on 1/5/2023 that a furnace replacement was needed. From Monday 1/8-1/15 I was told Choice was waiting for an estimate from Sears repairs. Late in the day on 1/15 I received an email with a bid for the items not covered by my policy. The estimate had errors and didn't even mention what the replacement furnace was.. Edison New Jersey

On 1/15 I received an email from Choice stating,"Congratulations! Your claim #225529703 has been approved for replacement. With this replacement, there will be some non-covered costs you will personally be responsible for. Please note we have negotiated a flat rate for all non-covered costs with our technicians. Non-covered items can include modifications, such as duct, copper, drain, or electric, needed to support your new equipment.

 The cost to be paid by you is: $2458.00"

(My options are to:)                     Accept Charges

These are the costs that you will pay the technician on the day of replacement.

or               Decline Charges

This will halt the purchasing of your equipment and the progress of your claim"

They did not explain what the charges are for or the make and unit number of the new furnace. Is this equal to my original?

I was able to get this breakdown from the Better Business Bureau.

These are the costs that you will pay the technician on the day of replacemen.

This I received from the BBB:

Choice Home Warranty (CHW) apologizes for any frustrations the customer may be experiencing regarding their heating system claim (no.: 225529703).

Based on the diagnosis received from A&E Factory Service, CHW approved the claim for a Supplied Furnace. CHW is supplying the furnace and covering the technician’s labor. There are non-covered charges due to the technician in the amount of $2,458.00 for modifications, codes(s) and permit.

Per section E(6), “We are not responsible for upgrades, modifications, components, parts, or equipment required due to the incompatibility of the existing equipment with the Replacement system or appliance or component or part thereof or with a new type of chemical or material utilized to run the Replacement equipment including, but not limited to, differences in technology, refrigerant.”

Per section E(8), “We are not responsible for service to meet current building or zoning code requirements or to correct for code violations including when the Replacement of a Covered Item is necessary.”

Per section E(9), “We are not responsible for the cost to obtain permits.”

Permit: $300.00
Flue: $375.00 Already installed
Title 24 Certificates: $175.00  Not required
Title 24 Testing: $275.00
Title 24 Air registers: $600.00 (10 air registers) Not required
Gas Line/ Sediment Trap: $265.00 Already installed
Plenum: $468.00 Depending on the new furnace size this may not be needed.
Total: $2,458.00

Once the customer accepts the non-covered charges, CHW will place an equipment order. Upon receipt of the equipment, the technician will contact the customer to schedule a repair appointment. 

At the most, I should pay $1,043

If the plenum isn't needed, then I should pay $575

Choice is dealing in bad faith:

1) We are in our third week without a furnace and Choice is fully aware that it is freezing in our area, with nightly temps in the 20's. This slow waking through the process puts unneeded pressure on me to accept an overpriced repair offer.

2) Choice said our replacement would be expedited, the is little evidence of that

3) Asking me to accept a contract agreement to replace the furnace without disclosing the products being offered and the full extent of services offered violates California Business and Professions code Sec 7159.10

4) Additionally, selling repair services that are not needed also violates Consumer Protections Laws. Four of the six repair items listed above are not required for this job.

Bottom line: I don't expect something for nothing, but I do want to be treated fairly and not taken advantage of.