When It Comes to Home Maintenance Do You Fix It or Risk It?

5/18/2016 (Permalink)

Home Maintenance?

This article could be an eye opening experence for new homeowners. The article was provide by Erie Insurance's Website. 

The experts at HouseLogic.com say homeowners should set aside one to three percent of the purchase price of their homes (or whatever they can afford) each year for ongoing maintenance. That amounts to $2,000-$6,000 a year for a $200,000 home. However, we recently conducted an online survey through Harris Poll that found that 60 percent of American homeowners don’t have a maintenance fund. That means many homeowners could be at risk for major financial headaches down the road. For example, replacing or repairing a roof is one of the biggest expenses a homeowner may have—one that can come without warning. Nationally, the average homeowner spends about $6,600 to install a new roof, but prices can soar upwards of $20,000 depending on the size of the roof, materials used, labor costs and more.

Nearly one in four homeowners* (23 percent) admits they never inspect their roof or have it inspected unless there is a problem. Nearly a third (27 percent) of those who own a house either mistakenly believe their insurance will pay for damage that occurs to their roof over time, such as normal wear and tear, or they have no idea how their insurance works when it comes to this type of roof damage.

Homeowners also admitted to suffering some serious consequences from not maintaining their homes, with much of the damage related to water. When asked if their home was damaged due to lack of maintenance, answers included:

“Yes, did not fix a dripping leak in the upstairs bathroom, ended up leaking into first floor”

“Walls in bathroom dampened and falling apart because of leaky roof”

“Dripping water in crawl space caused mold problem”

“Water damage from improper plumbing repair”

“Flooding in the basement due to sump pump malfunction”.

Water Damage:

Clogged gutters can cause water to flow down the sides of the home and pool around its foundation, often leading to some major issues like uneven floors, cracks in walls and interior water damage. This type of claim, also known as seepage, is a maintenance issue and often is not covered under your home insurance policy. Home Advisor says homeowners can expect to pay around $3,830, on average, to repair foundation issues.

House Fires:

Laundry is part of life’s weekly grind. But did you know that dryers cause roughly 15,500 home structure fires, 29 deaths, 400 injuries and $192 million in direct property loss each year? The most common cause of dryer fires is failure to do a thorough cleaning. Because a lint trap is not a foolproof method for catching all the fuzzy stuff from clothes, lint can gradually build up and catch fire in the heating element or exhaust duct.

Water Damage:

Sump pumps are used to remove excess water from homes that would otherwise cause property damage. One survey respondent experienced flooding in his basement due to a sump pump malfunction, specifically. Water damage due to sewage and drain backups generally requires additional insurance coverage beyond a standard policy. Without that coverage, it could end up costing you, on average, $2,156, according to Home Advisor.

- See more at: https://www.erieinsurance.com/Blog/2016/Home-Maintenance-Survey#sthash.F9bCeW1A.dpuf