Soliciting some recommendations the following scenario

I have a Lennox A/C unit that was installed in 1994. My local HVAC
technician did a leak test and identified a leak in both the interior evap
coil and the outside condensing coil.

The HVAC company in question has a good reputation locally.

My system is covered by a home warranty company. The home warranty company
has given me three options - 1) they will cover the cost of replacing both
coils. I would only be out of pocket by my home warranty deductible. 2)
should I decide to not pursue the repair option they will credit me $1000
(one thousand) toward a new unit or 3) they will pay for the installation of
a refurbished non-name brand 10 SEER unit.

In all instances, I would continue to be covered by my home warranty
agreement (realizing that the new until would also have some other warranty
coverage.)

I am inclined to purchase the first option (repair). Suggestions would be
appreciated.