Many people buy home warranties to keep from having to pay out big bucks if a major appliance breaks down.
You pay a monthly fee and if something breaks, you pay a deductible, and the company has it fixed.
Vanessa Smith of Orlando found out the hard way that her warranty was no guarantee. "I'm never going to have another home warranty," she said.
Smith has had two warranties with two different companies, and wasn't happy with either of them.
She thought she was covered until her refrigerator went out. "I don't know how long they expect you to not have a refrigerator, but it was a week before I even got an answer from them," she said.
She and her husband were forced to buy another refrigerator for the garage because the company took so long to respond to their claim, according to Smith.
When the company did respond, it was to deny the claim. "I just think it's more common for companies not to fix it, and more common for them to just give you the runaround," Smith said.
Holly Salmons of the Better Business Bureau said it's important for consumers to know how warranties work. "You should not consider a home warranty an insurance policy," she said.
The BBB regularly gets complaints from consumers regarding home warranties, according to Salmons.
"The problem comes with the company either denying their claim, or the policy didn't live up to what the consumer thought they were getting," Salmons said.
Nationally, the home warranty industry has taken a hit.
Last year, Choice Home Warranty agreed to pay the state of New Jersey almost $780,000, including restitution to consumers, to settle a lawsuit in which the state accused the company of using "deceptive tactics" to deny consumers' claims.
Consumer Reports gave the industry a scathing review with the headline "Why you should avoid home warranty choices," according to an article.
Consumers should consider what the warranty will cost per month, plus the amount of the deductible and if there's a service fee, according to Salmons.
Also be clear on what the warranty covers and what it doesn't, and know the steps to file a claim before you have to do it, Salmons said.
"Understand they can deny your claim, if you don't follow the rules," she said.
Smith said her mind is made up. "They don't do what they say they're going to do," she said.
If you're buying new appliances and looking for coverage, many credit card companies automatically extend the manufacturer's warranty an extra year if you buy the product using their card.