We are the original owners of a house that we bought new in Fort Smith in 1979. The builder had a national pest control company treat the house for termites and we have continued paying the insurance premium every year, but have never had a termite problem. We are senior citizens on a fixed income; the insurance now is more than $250 a year. Would it be dumb to drop this coverage?
For this question, we turned to Eddie Jo Williamson of Little Rock, a longtime agent with State Farm, a nationwide insurance company that offers clients a variety of coverage, including auto, life and homeowners insurance.
“I understand the homeowners’ concern and desire to manage their expenses on a fixed income,” Williamson says. “But they should try to find another way to cut their expenses and they should keep their termite insurance.”
Williamson advises that the risks that come with dropping termite coverage are too great to take, even if the homeowners have never seen evidence of or had any problems with termites during the past 35 years of owning and living in their home as the original and sole owners.
“Should termites appear and cause damage to their home in the future, this type of damage could be rather extensive and would not be covered peril under their homeowners insurance policy,” she warns.
“So the annual cost of $250 might still be a wise choice when you consider the out-of-pocket cost they would incur without the benefit of the termite insurance should termites decide to target their home in future years.”
According to MSN Money and the Termite Institute, most insurance carriers don’t cover damage caused by termite infestations, described by some policies as “wood-destroying insect damage.” Why? Because insurance companies consider termite damage to be a problem that is preventable; the insurance companies, which are more likely to cover damage that is considered sudden or accidental, regard termite prevention to be a maintenance issue.
Insure.com reports that other common home concerns not covered by the average homeowners policy include:
Pet damage, settling or cracks, all of which are considered typical wear and tear
Earthquake or flood damage
War or nuclear explosion damage
Ice or water damage to pavement, fences, swimming pools or patios
Those who leave their homes unoccupied for 30 days or more should not look for insurance to pay for repairs for pipes freezing or vandals or thieves damaging the property.
Bankrate advises homeowners to:
Carefully and thoroughly read homeowners insurance policy.
Learn what pests are the biggest threats in their region of the country.
Have the home inspected before buying it.
Sign a contract for annual inspections and treatment
Hire the right specialists to handle pest control and mold and water damage.
Do you have a decorating or remodeling question? We’ll get you an answer from an authority. Send your question to Linda S. Haymes, Arkansas Democrat-Gazette, P.O. Box 2221, Little Rock, Ark. 72203 or email:
HomeStyle, Pages 33 on 03/29/2014