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'They got all these loopholes!' | Are home warranties worth it?

Experts are reminding others to read everything before signing anything when it comes to their home warranty contract.

It's one of the top complaints received by the Better Business Bureau.

Millions of Americans have home warranties for peace of mind if an appliance fails. But many say their claims were denied when those warranties were actually needed.

When Rosalie Battle's 16-year-old heat furnace and air conditioning stopped working, she called her home warranty company. She had been paying them $500 a year for protection.

The company sent a repairman to her house. He claimed the issue was a simple fix, but it wasn't.

"He said it was a fuse," said Battles. "But two hours later, it went out."

She called the company again and they sent a second repairman. He said there was a blown heat exchanger.

Battles was stunned by what her warranty company then told her. They said the $1,000 repair didn't qualify for coverage

She said, "They are not going to fix it because its a manufacturer's defect. I said, 'What's that got to do with me?'"

Since then, Battle ended up canceling her home warranty. She said it wasn't worth the money for her.

"The warranty's a waste," she said. "They got all these loopholes!"

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A home warranty is supposed to help pay for repairs like this. So why are so many people saying their warranty company denied their claim?

Sarah Wetzel with the Better Business Bureau said warranties can be great if they actually cover the costs.

"So consumers do need to take caution if they're saying that everything is covered," Wetzel said.

Her overall tip is to read everything before you sign anything. Look at the small print and go over the terms, conditions and exclusion. Read the terms, conditions and exclusions to make sure you fully understand what you're getting.

Make sure you do your homework so you don't waste your money.

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