u/ImElonMars

From the service company perspective, I provide HVAC and appliance repair for Rely “Main Branch,” Choice Home Warranty, Home Warranty of America, Home Service Club, and Line Guard Solutions. These companies are all operated with the exact same practices, staff, and problems. Since this sub is focused on CHW, I’ll reference them specifically.

They target smaller or newer service companies and start you with an extremely low price-guide contract. The rates are well below what seasoned companies charge. While they technically “allow” you to request higher prices, the entire system is designed to pressure you into undercutting the market. As a new business with little work coming in, you’re excited about the opportunity and sign on.

During your first season, every authorization request becomes a battle. CHW staff will call and push you to lower your labor and parts costs.

Example:

You collect the $75 Service Call Fee (SCF) from the homeowner.
You submit an authorization for 2 hours of labor + 1 Fan Motor.

While you’re waiting, you have other stops on your route and the customer is upset because nothing is being fixed “right now.” You’ve already spent an hour diagnosing the issue, so you leave and reschedule.

Authorization Phase:
You’ll almost always get a call from rude staff trying to reduce your price. If you request 2 hours, they counter with 1. If you push back, they’ll try to shave off 30 minutes. The price guide lists the Fan Motor at $200, but it actually costs you $215. You request tax + 20% markup ($279.28), but they insist you stick to the guide. If you refuse, they often hang up. Later you’ll receive a text with an authorization code — sometimes at the price you requested, sometimes not.

Repair Phase:
You return, complete the repair, and the customer is happy… until the payment phase.

Payment Phase:
The contract says 30–45 days for payment. In reality, it’s often closer to 60 days. When the check finally arrives, the amount is frequently reduced. There’s no easy way to dispute it — you can’t call them; all communication must go through their portal. Days later you’ll see a note: “Reduced to price guide.” You just lost money on work you already performed.

They don’t only scam plan holders — they do it to their own in-network contractors too.

This doesn’t happen on every job, but once it does, you’re left trying to make up the loss on future claims or quit. By that point you’ve usually invested 30–45 days and completed many work orders.

The smarter move in hindsight is to quit. But you need to replace the volume quickly with other home warranty companies, property managers, Google leads, etc., so your cash flow doesn’t dry up.

How some contractors adapt (not recommending, just explaining):

When a part costs more than the price guide, some techs add another part to the authorization to try to offset the loss. For example, instead of just a Fan Motor, they’ll add a contactor. CHW may then call and ask if there was a power surge. If you say no — it was normal wear and tear — they sometimes deny the entire claim.

You then have to tell the customer the job is denied. CHW often blames the denial on your report (claiming you said power surge), even if you specifically noted otherwise. The customer gets angry, leaves a bad Google review, and you can’t pull the original report anymore to prove what you actually submitted. It’s your word against theirs.

If you haven’t built other lead sources by this point, you’re stuck choosing between gaming their system or walking away.

I’m not proud of the time I spent with these companies. I no longer work with them and have successfully replaced their volume with better lead sources. Looking back at my negative reviews, some were justified, but many stemmed directly from these warranty companies shifting blame onto me while scamming both the customer and the contractor.

Companies to avoid as a service provider (and as a homeowner):

• Rely / Choice Home Warranty
• Home Warranty of America
• Home Service Club
• Line Guard Solutions

None of them are safe to work with or to buy a policy from. There are far better home warranty providers that treat both customers and contractors fairly.

The two that stood out to me as easy to work with — consistent authorizations, fair payments, and minimal drama — were:

• Old Republic Home Protection
• 2-10 Home Buyers Warranty

Final note: Insurance-style companies are in business to make a profit. You probably won’t get back in claims everything you pay in premiums, but with the right provider it can still be worth it for peace of mind.