Why a Home Warranty May Not Give You the Fix You Crave

This article was first published on NerdWallet.com.

It's every homeowner's nightmare — something is broken, and it's going to cost a lot of money to fix or replace it. Unfortunately, no matter how well you take care of your home, sooner or later, an appliance or major system is bound to croak.

Some homeowners plan for this by purchasing a home warranty, which can cover some costs related to these units' normal wear and tear. But before you commit to one, make sure you really understand what the warranty is offering.

For example, even nationally recognized home warranty companies won't necessarily guarantee that a replacement item will be the same size, color or brand as its predecessor.

In a complaint to Consumer Affairs, a website that provides consumer news and reviews, an outraged homeowner included a photo of her white replacement refrigerator that was too tall to fit under the cabinets in the space where the old one had been. According to the complaint, the homeowner had waited a month to receive the replacement for her black fridge and only kept the too-large white one after the warranty company said a "restock and transportation fee" would be required to send it back.

While this isn't every customer's experience with home warranties, those failing to read the fine print of their contracts could end up disappointed.

In today's hot housing market, with some buyers waiving the home inspection and stretching their finances to make a higher offer, the promise of discounts on home repairs can be understandably...