Sinkhole – HomeownersInsurance.org http://www.homeownersinsurance.org Homeowners Insurance Tips and News Fri, 28 Jun 2013 15:01:02 +0000 en-US hourly 1 https://wordpress.org/?v=4.8.1 Living in a Money Pit http://www.homeownersinsurance.org/living-in-a-money-pit/ http://www.homeownersinsurance.org/living-in-a-money-pit/#respond Fri, 24 Sep 2010 14:58:18 +0000 http://www.homeownersinsurance.org/?p=977

When you buy a house, it’s not like buying a toaster. If you buy a toaster and it doesn’t work right, or doesn’t do everything you want it to do, you simply take it back. In a worst case scenario where the store won’t take it back, you simply buy another toaster. If you buy a car and it gets into a wreck and needs repairs, you have your car insurance to pay for it. If your home turns out to be a lemon and need a bunch of repairs, your homeowners insurance isn’t going to cover it. In fact, if someone is injured in your home because of those things that need repair, it’s entirely possible that your homeowners insurance won’t cover it.

Here is a way to tell if you’re living in a money pit: you’re spending more than 2 percent of your home’s value each year, on average, on home repairs.

Now, you can expect that, occasionally, this will happen. Everyone needs to replace a roof or a furnace, from time to time. When it happens on a regular basis, however, then you know you’ve got a bigger problem.

ServiceMagic, which is a company that is involved in a variety of home services including repairs, has offered a list of categories when it comes to putting money into your home repairs:

  • The Money Pit. As mentioned if you spend more than 2 percent annually on home repairs you have a money pit.
  • The Sinkhole. A sinkhole is a little bit better than a pit, according to ServiceMagic. If you spend between 1.6 percent and 2 percent of your home’s value each year on repairs, you have a sinkhold.
  • The Drain. A more mild but still significant category is the drain. If you spend between 1 percent and 1.5 percent a year on repairs, you have a drain.

If your home falls into one of these categories, it may be time to crawl out of the pit (or sinkhole or drain) and find a home that doesn’t cause as much of a fin

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3 Events You’d Better Have Your Home Insured For http://www.homeownersinsurance.org/3-events-you%e2%80%99d-better-have-your-home-insured-for/ http://www.homeownersinsurance.org/3-events-you%e2%80%99d-better-have-your-home-insured-for/#comments Fri, 23 Jul 2010 13:26:52 +0000 http://www.homeownersinsurance.org/?p=765 There are any number of tragedies that can befall your house, making you glad you have good homeowners insurance, or making you wish you did. Realistically, most of us will never need to put in a claim to our insurance company and, if we do, in most cases it’s to repair minor storm damage or for something stolen from our property.

Of course, there are some tragedies we think about. We’re all aware that a fire could take everything we own, leaving us with nothing literally overnight. A tornado can accomplish the same thing, albeit with a bit more flourish. Here are some things that could happen, though, which you probably haven’t thought about which will make you glad you stroked that check to your homeowners insurance company:

  1. Workers get injured. Say the home repair guys are up on your roof laying on a brand new layer of shingles. They’re supposed to be harnessed, but we all know roofers don’t bother with that most of the time. If one of them falls, it could be very bad for an uninsured homeowner (yes, believe it or not, even if he is stupid, YOU may be liable). But imagine if the one who’s falling hits the next guy. In a matter of seconds, you could have a whole roofing crew lying on the ground calling personal injury lawyers on their cell phones.
  1. Sinkhole. We don’t know what the odds are, but it’s possible. Groundwater erodes layers of soil underground, occasionally collapsing the roof of an underground cavern you didn’t even know was there. In Guatemala City, this happened right at a busy intersection, and the hole it created sank over 300 feet. Imagine if that had been under your house. We hope it doesn’t happen, but if it does, we also hope that you’re not home, and that you have good homeowners insurance.
  1. Global Thermonuclear War. OK, maybe that’s pushing it. Chances are if we ever experience a global thermonuclear war, there won’t be any insurance agencies left to make good on the claim. But if there are, you’ll certainly be glad to know that you can rebuild your house. The only question will be where you can find a place that isn’t still glowing.

On a serious note, there are a number of things that can happen to your home. Fires, earthquakes, hurricanes, tornados, theft, injured workers. All of these can cost you a ton of money, or even make you lose everything if you’re not insured.

Photo via Hryck.

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