Select Home Warranty Lawsuit: Denials, Class Actions, and Arbitration

The Select Home Warranty lawsuit landscape includes pending class actions in New Jersey, California, Texas, and Florida, a growing docket of individual small claims cases, and at least one resolved federal suit — all built on the same core allegation: that the Mahwah, New Jersey company collects annual premiums and then denies or drastically underpays legitimate repair claims. A mandatory arbitration clause and class action waiver in the company’s contract, however, funnel most customers toward small claims court or state regulators rather than group litigation.

What the Lawsuits Allege

Plaintiffs across the pending and resolved cases share a common theory. They say the company markets broad coverage for HVAC, plumbing, electrical, and major appliances, then invokes contract fine print to pay pennies on the dollar, or nothing at all, when a claim is filed. The contract caps annual payouts at $3,000 for HVAC and just $500 each for appliances, plumbing, and electrical systems, and it allows the company to pay only the “depreciated value” of an item it decides not to repair.¹ Better Business Bureau complaints describe payouts as low as $75 for a garbage disposal and $185 for a washing machine motor.²

The BBB has logged 5,191 complaints against Select Home Warranty over three years, with 3,556 involving service or repair issues.² The volume matters because it forms the factual backdrop plaintiffs point to when arguing that denials are not one-off disputes but a business practice.

Pending Class Action Litigation

As of mid-2026, multiple class actions are reportedly pending against the company in New Jersey, California, Texas, and Florida. Plaintiffs bring claims for breach of contract, unjust enrichment, and consumer fraud, arguing that the denial practices amount to a deliberate model of collecting premiums while minimizing payouts. Discovery is reportedly ongoing, and class certification motions are expected to be addressed during 2026.³ No class action settlement has been approved by a court.

No state attorney general enforcement action against Select Home Warranty has been publicly announced, though the New Jersey Division of Consumer Affairs has reportedly been monitoring the company.

Individual Cases That Made It Onto the Record

Individual consumer cases show both what winning looks like and how hard collecting can be.

In Ohio, Andrew Tabak sued the company in Cleveland Heights Municipal Court in October 2023 after it allegedly failed to reimburse him for two approved repair claims under a 74-month warranty he had prepaid at $2,820. The company did not appear at trial. A magistrate initially recommended judgment for Tabak but limited damages to $536.29; a revised decision after objections then flipped the outcome entirely in the company’s favor. Tabak appealed. In November 2024 the Eighth District Court of Appeals reversed, finding he had proven a breach of contract, and sent the case back for a damages hearing.⁴

In Arizona, a consumer identified as Hernette won a small claims judgment of just over $1,700. As of March 2025 she had been unable to collect: the company had not responded to her attempts or to inquiries from local news station ABC15.⁵ Collecting on a judgment against an out-of-state company is a recurring obstacle for small claims plaintiffs.

At the federal level, Garibay v. Select Home Warranty LLC was filed in January 2024 in the U.S. District Court for the District of New Jersey under the Telephone Consumer Protection Act. It was administratively terminated in December 2024 pending settlement and dismissed with prejudice in February 2025, indicating a private resolution.⁶

The Arbitration Clause and Class Action Waiver

The contract itself is the biggest obstacle to group litigation. Section 14.2 requires disputes to be resolved through the American Arbitration Association in New Jersey and waives the right to participate in any class action. The contract also states that New Jersey law governs and that customers submit to New Jersey courts.⁷

There are two important carve-outs. The clause applies only “except where prohibited,” and it specifically allows Arizona residents to elect resolution under Arizona statutes governing unfair trade practices.⁷ Small claims court also generally falls outside the scope of the arbitration requirement, which is why most individual cases in the record are small claims actions.

Why Claims Get Denied

Consumers and plaintiffs describe a consistent set of denial rationales, several of which are hard for an ordinary homeowner to rebut:

Pre-existing condition, even where the customer had no way of knowing the problem existed.
Lack of maintenance, sometimes accompanied by demands for years of maintenance records; without those records, the company can reduce its maximum payout to $150 per appliance.⁸
Improper original installation, which the company treats as outside coverage.
Hidden exclusions, where a specific part is not covered even though the broader system appears to be.
Dollar cap exhaustion under the per-item or per-category annual limits.

HVAC systems, water heaters, plumbing, electrical, and major appliances draw the most disputes.⁹ Consumers also report missed technician appointments, diagnostic reports that go missing, and delays that push them into paying for repairs themselves. Cancellation itself is a common grievance: customers describe high-pressure retention tactics, undisclosed $75 cancellation fees, and refunds that take weeks or months.²

What You Can Do If Your Claim Was Denied

Because the class action route is blocked for most customers by the contract’s waiver, individual pressure is where things typically move.

Start with a formal written demand to the company’s headquarters. Specify the amount owed, attach documentation of the denied claim, and set a deadline for response.¹⁰ File a complaint with your state Department of Insurance, which can trigger a regulatory inquiry, and with the BBB, which has in some cases prompted the company’s claims managers to revisit denied claims.²

If the company still won’t pay, small claims court is the most accessible legal option. Filing fees generally run $15 to $75, and claim limits are usually between $2,500 and $10,000 depending on the state.¹⁰ Before filing, review your policy for the arbitration clause and confirm your state allows the small claims carve-out. Identify the company’s registered agent for service of process through your state’s Secretary of State website. Bring the contract, all email correspondence, and documentation of the denial to the hearing.

One caution from the record: winning a judgment and collecting on it are separate problems. The Arizona plaintiff who won her case in small claims court had still not been paid months later. Consumers pursuing out-of-state defendants should be prepared to take additional collection steps after judgment.

1
Select Home Warranty. Terms and Conditions
2
Better Business Bureau. Select Home Warranty LLC BBB Profile
3
Lawfold. Select Home Warranty Lawsuit
4
Supreme Court of Ohio. Tabak v Select Home Warranty, 2024-Ohio-5602
5
ABC15. Valley Woman Sues Home Warranty Company, Wins Judgment
6
PACER Monitor. Garibay v Select Home Warranty LLC
7
Select Home Warranty. Terms and Conditions
8
CNBC Select. Choice Home Warranty vs Select Home Warranty
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Money. Reasons Home Warranty Companies Deny Claims
10
Justice Direct. Select Home Warranty Complaint