Choice home warranty Won't honor the warranty you pay for! Edison New Jersey

 I had my heater serviced so that my warranty would not be void and to prepare for the up coming winter, the company came out and serviced my unit but found I had some problems with my heater. Found I had a couple of cracks in the heater exchanger and that the inducer motor is very weak!! He then turned of the unit and told me that carbon monoxide will be leaking into my house and not to switch it back on until the problems are delt with. I then called home choice warranty to file a claim, they schedule a service tech to come out 10 days later, he came out and did not do the same check that the previous company had done he looked through with a flash light and said it was pitted? And there was some rust through normal wear and tear. The service guy called me at 8.00 am to inform me that the home choice warranty would not cover it. And then gave me a quote to purchase a new heater at $2463.00!! I then called choice home warranty and asked them why they had refused the claim? The said that there was some rust in the unit and they do not cover the unit because of that. I said that the company that they sent out to take a look at the heater said that it normal to have a little rust in the unit due to the flame and the metal will have condensation on it!!!! Next the service company called me again and said that choice home warranty had been in touch with him and asked him to come back out and take it apart and take pictures so they can take a look at it again. The tech said they will not pay his time to come back out and take the unit apart and take photos of the problem. The tech called me and explained that the warranty company is trying to get out of replacing my heater!!! They are really bad to get approval for genuine claims. He then said if I need to replace the heater to call him back. Now the choice home warranty said I could pay for another company to come out and take pictures and get a report and fax it over to them to review. Spoke with the service tech again he said that they will not approve it even if I get another company to come out to look and take photos of the heater unit. Any help in this matter would be greatfully appricated.