The 7 Most Expensive Mistakes Homeowners Can Make
These mistakes are made every day by unsuspecting and trusting homeowners just like yourself.
Learn how to protect your greatest asset… your home… and yourself from expensive mistakes that can quickly turn into financial disasters.
Risk and reward
Home ownership is both rewarding and risky. Rewarding… in that the financial benefits of owning your own home are outstanding. Risky… in that a wrong investment or decision can leave you in a world of financial hurt.
It can be especially challenging in this day and age to know if you are doing the proper things when it comes properly maintaining, improving, and protecting your home.
That is why this article, and the series of articles that follow, will focus on the seemingly simple issues that homeowners encounter that also have a tendency to grow into very serious and expensive problems, as we have witnessed first-hand over the years.
Mistake #1 – Non-compliance with your HOA
Your Home Owners Association may have more power over you than you realize. They can fine you for not following bylaws set forth by the governing board, and can even put a lien on your property.
Mistake #2 – Having improper insurance coverage
Without proper insurance coverage, you are not fully protected from any disasters or accidents that may occur on or inside your property limits. You may wind up paying huge out-of-pocket bills for uncovered accidents that you are liable for.
Mistake #3 – Not having complete documentation of your home’s contents
Proper documentation of your home’s contents is the homeowner’s responsibility. Without it, you may never recover all of the assets you once had in the event of a disaster.
Mistake #4 – Performing misaligned home improvement projects
Whether the improvement project hinders the sale of your home, provides little or no return on investment, or proves to be sub-standard, home improvement projects are one of the areas that homeowners stand to lose their hard-earned money very easily.
Mistake #5 – Failing to receive clearance for excavating projects
Not only could you be fined for not receiving in permits for excavating from the proper government authority, but you stand to damage vital pipelines and wiring systems underground. On top of fines and fees, yo may be looking at court fees and repair costs, too.
Mistake #6 – failing to get listed as an additional insured
Even if a contractor carries insurance, that does not mean that you a free from damages, should something happen during a project on your property. Unless his insurance clearly names you as an additional insured, you may be liable for thousands of dollars in damages.
Mistake #7 – Signing a poorly outlined contract
The contract is the foundation of a healthy relationship with your contractor, as well as the foundation for good project management. A good contract will hold the contractor to stay on-time and on-budget. It can also saves you from financial stress.
There is even more useful information in each of the following stories in this important series, each featuring one of the seven very costly mistakes we have already outlined in this article. Be sure to read the rest of our mini-series to learn more about the errors that homeowners just like you can so easily make, and how you can prevent causing a strain on your finances.