4 common home disasters not covered by insurance & how to pay for them

Sometimes life throws a curve ball and something disastrous happens to your home that can also have a catastrophic effect on your bank account. At minimum, a home catastrophe is a large headache and inconvenience; at worst, it can be a real nightmare. Until there’s a reason to find out the hard way, many of us don’t realize just what is not typically covered by homeowner’s insurance. Here are 4 home disasters that insurance won’t touch:

• Mold – This is a fungus infestation that can cause serious health concerns and literally devour a homeowner’s investments. If mold invades your home, it could cost as little as $500 or as much as $4,000 to remediate, depending on how much and the type of mold that is present. Unfortunately, if your attic and ducts are molded, the cost for those are even higher, ranging from $2,000 to $6,000. A limited number of insurers offer an option to expand coverage limits for mold claims, but it comes at an additional cost. And, as is the case with all insurance, you must already have the extra coverage in place before you discover the mold.

• Sewer back-up damage – Standard home insurance does not cover issues with sewage pipes. Have you checked just how old your pipes are? Some sewage lines in America are close to 100 years of age, meaning that they could burst any given time. Sewage cleanup can cost between $2,000 and $10,000 depending on how big the space and how high the sewage.

• Sinkholes – According to , most home insurance policies will not cover damage associated with “earth movement” such as an earthquake or sinkhole. A sinkhole is a sudden shift in the earth that can cause structures to sink into giant, gaping holes. Unless you are a Florida resident where it actually is covered, earth movement is excluded from insurance policies.

• Termite infestation – According to Mike Shelko at Atlanta’s Brandon Pest Control, most termite infestations can lead to severe damage to all cellulose structures. Under extreme conditions, the wooden structures of the house can diminish significantly and potentially collapse. The initial cost of professional termite extermination services are approximately $1,000. According to Termiteshelp.info, if there is extensive damage, that cost is about $3,000. Termite damage is usually not covered by homeowner’s insurance. You can prevent this type of home disaster by taking preventive measures with an annual termite inspection.

Being proactive through preventative maintenance and inspections is the best way to keep hard earned dollars in your pocket instead of going toward expensive home repairs. However, if one of these home disasters does come knocking on your door, and you need a way to finance home repairs, a  LendingPoint personal loan can help.

Tags: DIY, DIY Network, finances, financing home improvement, HGTV, home, home disasters, home improvement, home improvement on a budget, home loan, home repairs, home upgrades, homeowner's insurance, LendingPoint, mold in house, money for home improvement, need money, personal loan, preventative maintenance, Termite damage, women who DIY