Homeowner's Insurance: When NOT to File a Claim

In some cases, filing a claim against your homeowner's insurance is just not worth it. In addition to getting socked with higher premiums, you could find it harder to get coverage later.

The big question is, when should make an insurance claim, and when is best not to?

Unfortunately, there is no cut and dry simple answer to that question, as individual circumstances vary.  Things such as; how long have you had your home insured without a claim?  How many claims have you had?  What (specifically) were the claims for?

Different answers to those questions present a different answer as to whether you are better off filing a claim, or handling the situation yourself and NOT filing the claim.

Insurers increasingly are using a huge industry database, called the Comprehensive Loss Underwriting Exchange, or CLUE, to drop or deny coverage based on a home's history of claims or damage reports. Insurance companies are terrified of rising losses from water and mold damage. So a single report of water-related problems may be enough for insurers to shun your home.

So far, insurers' increased use of the CLUE database has not caused any serious problems those looking to sell.

Think twice about those water-related claims. This is especially true if you plan to sell within a few years. You might be better off paying to repair the problem yourself rather having your home be branded as high risk.

There are more tips for when to file and when not to online, so our advice is, do your homework.

Existing Home Sales and Mortgage Apps Fall Again

The National Association of Realtors reports that total existing home sales - including single-family, townhomes, condominiums and co-ops - decreased 2% in March when compared to the previous month's sales.

Meanwhile, mortgage application volume continues to fall off weekly.  Over the past couple of weeks, application volume dropped by over 14% according to the Mortgage Bankers Association.

And although existing home sales and mortgage applications continue to show declines, conflicting sentiment seems to indicate that more people are positive about the overall economy than not.  Recent surveys show more American's feel they still can buy a home than those who feel they cannot.

What's your feeling now?  We'd love to get your feedback on exactly how you feel (overall) about the current economy.  Use the comment link below to give us your opinion.

Negotiating with Your Lender

You're behind on your mortgage, and you want to save your house. It's time to talk turkey with your lender. But what do you say and who do you say it to?

In this short (1:32) video, Money Talks correspondent Stacy Johnson offers some tips.

Leave any comments you have about this video, or any other tips on things you think should be considered when negotiating with your lender.  Use the comment link below to give us your feedback.

The Real Estate Crisis: Congress Expected to Fail

An over-whelming majority surveyed say the U.S. Congress will fail in its attempt to solve the nation's real estate crisis.  That, according to a new poll conducted by Housing Predictor.

The online survey clearly indicated that Americans are fed up with Congressional failures, the government's stance on the nation's economic crisis and the White House.

Housing Predictor forecasts more than 250 local housing market futures in all 50 states, and regularly surveys visitors on real estate related issues, which are in the forefront of the national economic crisis. They also forecast the nation's top 25 real estate markets annually, the worst 25 markets and the nation's foreclosure epidemic.

Tell us what you think.  Do you think Congress will fail in its attempt to solve the nation's real estate crisis?  Click the comment link below and sound off.  We'd love to hear from you.

Foreclosures Causing More Divorces?

The financial pressure that comes with an escalating house payment or a foreclosure may indeed be playing a role in breaking up marriages, experts say.

Historically, the three most likely reasons for foreclosure problems are: loss of job, loss of health and loss of spouse. On top of that, these days, escalating mortgage payments seem to be exacerbating the divorce problem.

Though there are no studies linking foreclosure to divorce rates, Frank Fincham, the director of Florida State University's Family Institute, said, "Financial problems among couples are one of the main reasons for divorce in this country today."  One recent poll commissioned by divorce360.com ranked financial issues as the No. 2 reason that Americans divorce, with abuse ranked as No. 1.

For years, Middle America was of the mindset that it could get a divorce and use the equity in their home as a safety net, but for many these days, there is no equity. It used to be, when couples bought a house, five years later it was worth more. And when people got divorced in those days they expected to be able to live for a while off the proceeds from the sale of the house. . . . We do have a lot of people in trouble in this country because the value of their house decreased.

What do you think?  Give us your opinion.  Has the mortgage crisis and more resulting foreclosures, had anything to do with an increase in divorce rates?  Use the comment link below to give us your feedback.