Friday, November 30, 2007

Dwindling value of home owner's insurance continues

Insurance Companies Dropping Dry Rot Coverage

It is common knowledge that most private home insurers do not offer homeowners flood insurance, relegating them to expensive Federal insurance programs. However, my wife and I were notified today by State Farm that starting this month they and many other insurance companies are no longer insuring homes for dry rot. This will cause an increased demand for building inspectors, as they are in limited supply already.

Homeowners will no longer be able to rest on their laurels and would be well advised to pay for a home dry rot inspection every 3 years to prevent very expensive home repairs. I can see the mortgage industry already wrapping that cost of regular inspections into the annualized cost of the of the mortgage, much like they due property taxes to assure continued value.

Home inspection services will be a very busy industry in coming years, not so much because of impending home sales but of that of personal assurances that structural status of any home will not cause financial nightmare.

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