Arizona Reaches $12 Million Settlement with Choice Home Warranty

Thousands of homeowners may be eligible for refunds after state's largest settlement against a home warranty company.

Published on Feb. 10, 2026

Got story updates? Submit your updates here. ›

Arizona Attorney General Kris Mayes announced a nearly $12 million settlement with Choice Home Warranty, a New Jersey-based home warranty company. The settlement resolves over 1,500 complaints from Arizona consumers since 2013 alleging issues with coverage, misleading sales tactics, and difficulty getting promised repairs. As part of the agreement, Choice Home Warranty must reform its sales practices, including ending deceptive phone sales tactics and providing clearer disclosures to consumers.

Why it matters

This settlement represents a significant victory for Arizona consumers who felt taken advantage of by Choice Home Warranty's business practices. It sends a strong message that the state will hold companies accountable for deceptive and unfair treatment of customers, especially vulnerable populations like the elderly. The reforms required of Choice Home Warranty aim to improve transparency and fairness in the home warranty industry going forward.

The details

The case against Choice Home Warranty was first initiated by former Attorney General Mark Brnovich. The company denied any wrongdoing but agreed to the settlement to avoid further legal costs and distraction. As part of the agreement, Choice Home Warranty must end deceptive phone sales tactics, provide clearer disclosures to consumers, and ensure customers understand what they are purchasing before signing up.

  • The case against Choice Home Warranty began several years ago under former Attorney General Mark Brnovich.
  • Since 2013, over 1,500 Arizona consumers have filed complaints against the company.
  • The $12 million settlement was announced on February 11, 2026.

The players

Kris Mayes

The current Arizona Attorney General who announced the record-setting $12 million settlement against Choice Home Warranty.

Mark Brnovich

The late former Arizona Attorney General who initially launched the case against Choice Home Warranty.

James E. Mostofi

The CEO of Choice Home Warranty, who stated the company was pleased to reach a resolution and emphasized there was no finding of wrongdoing.

Philip Angelotti

A 93-year-old Army veteran who was affected by Choice Home Warranty's practices and attended the press conference to speak about his experience.

Got photos? Submit your photos here. ›

What they’re saying

“This is the largest settlement against a home warranty company in Arizona history. A nearly $12 million judgment against Choice Home Warranty.”

— Kris Mayes, Arizona Attorney General (12news.com)

“For more than a decade, Choice Home Warranty has focused on delivering reliable service and peace of mind to homeowners nationwide. We appreciate the opportunity to close this chapter and remain committed to serving our customers with integrity, clarity, and accountability.”

— James E. Mostofi, CEO, Choice Home Warranty (12news.com)

“It's a big relief. I think it's a good thing that the Attorney General's Office, between both Brnovich and Mayes, followed through with this resolution.”

— Philip Angelotti, Army Veteran (12news.com)

What’s next

The Arizona Attorney General's office expects to begin the claims process for eligible consumers in the coming weeks.

The takeaway

This settlement demonstrates the state's commitment to protecting consumers, especially vulnerable populations, from deceptive and unfair business practices in the home warranty industry. The required reforms aim to improve transparency and accountability for companies like Choice Home Warranty going forward.