Putting off home maintenance may cost you more than you think

It’s true—we’re all busy. Life can be hectic and you have to prioritize your time as well as your money.

When it comes to your home, it can be easy to slide into the “if it ain’t broke, don’t fix it” mindset. Ignoring small repairs might seem like a good way to save some cash and time, but putting off regular maintenance for too long can lead to bigger problems and more costly insurance claims.

According to a 2024 Hanover study, scarcely 38% of homeowners have examined the integrity of their roofs in the past year. Just 39% checked the condition of their water heaters, and only 40% cleaned their gutters. Not focusing on the risk of loss from these vulnerable areas of the home could be a financial mistake.

To potentially save bigger dollars, a better mindset might be “an ounce of prevention is worth a pound of cure.” Here are some reasons why.

Larger claims, more often

A house is a big investment. But putting off essential maintenance tasks increases the chance of damages or accidents happening. For example, an old roof or outdated plumbing may lead to water leaks, mold, and damage to your home’s structure. By the time you notice, you could be looking at thousands of dollars in repairs.

The leading cause of home fire property damage is electrical distribution or lighting equipment, according to the National Fire Protection Association. Not upgrading your electrical system, or short circuits from defective and worn insulation, could lead to a disaster.

Not only do these pose safety issues for you and your family, but claims from delayed maintenance on situations such as these are usually severe and expensive.

Negligence impacts your insurance provider…which impacts everyone

Insurance companies are obligated to pay the claims filed by their policyholders. As claims become larger and more frequent, these companies face increased financial liability, putting a strain on their resources. To maintain financial stability, insurers are often faced with raising their premiums to offset higher claims, including those due to neglected maintenance.

Further, premiums collected from all policyholders go into a shared risk pool of funds to cover potential claims. Those who neglect their properties introduce higher risk across the pool. Insurers respond to this increased risk by raising premiums for everyone to ensure the collective funds are adequate to cover the growing number of claims.

Individual impact

When you neglect maintaining your home for too long, it may create emergencies out of what were smaller issues, at more cost to you. You may also have higher energy bills if you don’t change out your furnace filter or if your air conditioner has a refrigerant leak, for example. Further, if you want to sell your home and it shows signs of wear and damage, it will likely lose some of its potential value for the sale.

Community impact

When insurance premiums rise due to increased claims based on neglected maintenance, it affects the entire community because the shared costs rise for everyone involved. Safety issues also increase, whether it’s a neighborhood, apartment building, condo, or investment property. So even if you’re a responsible homeowner, you may still be impacted by others’ neglected maintenance claims one way or the other.

Environmental impact

Things such as a leaky faucet or running toilet waste water, which takes a toll on our environment and leads to higher utility bills. According to the Environmental Protection Agency, household leaks can waste nearly 10,000 gallons of water annually. Leaky doors and windows can make your heating and cooling systems run less efficiently as well, contributing to unnecessary greenhouse gas emissions and increasing your energy bill.

Insurance industry trends

With rising costs due to more severe storms, higher material and labor costs, and increases in claims, there are certain trends taking place throughout the insurance industry regarding home insurance, including:

• Providing actual cash value instead of replacement value for roof damage. This means that older roofs will have lower payouts due to depreciation.
• Higher mandated deductibles for wind/hail damage.
• Limited coverage for cosmetic damage to metal such as gutters, downspouts, etc.

What can you do as a homeowner?

The costs of neglecting your property have a ripple effect. While it is the choice of the individual as to what they do to their own home, in the larger picture it is a shared responsibility. Here are some things you can do to help keep insurance costs down.

Budget ahead for home maintenance tasks. According to Angi’s 2023 “State of Home Spending” report, the average annual cost of home maintenance projects was $2,458; home emergency spending was $1,667.

• A common rule is to save 1%–4% of your home’s value per year (Investopedia). If you’re on a tighter budget, you may want to set a dollar amount that you can reach, even if it’s not 1%. Anything you can save may help prevent you from having to borrow to pay for repairs or procrastinate on repairs. And saving early can help you spread out the costs of repairs and upgrades over time instead of facing a larger unexpected expense.

Prioritize the upkeep of your property. Some key areas to pay attention to include:

• Prune dead and low-hanging tree branches to help prevent roof damage, and inspect your roof after storms.
• Schedule regular maintenance on your furnace and central air conditioner, and keep up on replacing filters…dirt and debris can make your units work much harder and cost you more to run.
• If you have an older home with an outdated electrical system, it should be replaced by a professional. Faulty wiring can lead to a fire. Avoid overloading outlets as that is also a major cause of residential fires.

Invest in weatherproofing your home, including storm-resistant windows, landscaping, and drains.

Consider modernizing your heating, plumbing, and electrical systems to reduce the risk of fire and water damage.

Let us help

If you have questions about your current insurance or would like an insurance quote, contact us. We’re here to help.

1-800-279-4030
weabenefits.com/consults

Five critical times to review your insurance

Here are a few critical events that should trigger a review of your policies.

At renewal

Consider raising your deductible and make sure you are getting discounts you qualify for. Evaluate the need for flood or umbrella insurance.

Major purchases

An expensive piece of jewelry artwork or electronic device may need extra coverage.

Home improvements

If you added a room, upgraded your countertops, installed a hot tub, etc. make sure you’re adequately covered. Keep receipts in case your insurance company needs copies.

When you make your home safer

You may qualify for a discount when you install an alarm system or upgrade your electrical heating or plumbing.

Major life changes

Marriage, divorce, or adult children who move back home (or who leave) can affect your home insurance and the amount of coverage you need.

 

Source: Insurance Information Institute

When is the best time to buy long-term care insurance?

You’ll never be younger or healthier and two things—age and health—determine your long-term care insurance (LTCi) premium costs.

Neither health insurance nor Medicare pay for long-term care services. Medicaid is only available to those who meet certain financial and health requirements. Rules and services for Medicaid also vary from state to state. Unless you have LTCi coverage, you will need to pay for extended care with your personal savings and assets.

Genworth’s Cost of Care Survey’s 2024 estimate for a semi-private room in a nursing home facility is $9,859 per month ($118,298 annually). The cost for a home health aide is estimated to be $6,250 per month ($72,505 annually).

Many people seriously underestimate the costs of long-term care. Understanding the true costs can help families plan ahead for how they will pay for these services before they need them.

Fortunately, LTCi policies can be tailored to cover varying circumstances and budgets. When deciding which coverage you’ll need, consider:

• How much you can afford to contribute toward the expense of your care.
• How long might you need LTC services.
• How much time will pass before you need to start receiving benefits from the policy.

Associates of Clifton Park is our long-term care partner. They can help you make informed decisions about your long-term care insurance options.

1-800-893-1621
weabenefits@longtcare.com

10 things to watch for when buying a house

10 things to watch for when buying a house infographic continued from “Tips for first-time home buyers” article.

Tips for first-time home buyers

In 2021, renters spent a greater share of their household income on housing costs than homeowners did. Even before the pandemic, renters were spending substantial shares of their income on housing. But, according to the Pew Research Center, 70% of Americans said young adults today have a harder time buying a home than their parents’ generation did. Those who do want to purchase a home face record high housing prices, historically high mortgage rates, and lingering shortages in the supply of housing (UW-Extension Community Economic Development).

These circumstances underline the fact that homeownership is not something to go into without some serious thought and preparation. It’s prudent to weigh the pros and cons of home ownership vs renting before you take the home buying plunge. Consider:

The length of time you plan to stay in the house. Buying a home can be a good investment, but there is still some risk in taking on a mortgage. There is a general rule that those in the real estate industry use as a guideline—if you don’t plan to stay in the home for at least five years, it may not be a wise financial decision. The five-year rule makes sense because:

1. When you take out a 15- or 30-year mortgage, the vast majority of your monthly mortgage payment for the first few years of the loan goes toward interest charges. That means you won’t make much progress in building equity during those early years. And building equity is the primary reason for buying a house in the first place.
2. The closing costs associated with a home purchase include fees for mortgage origination, title insurance, inspections, appraisals, legal costs, etc. They usually run about 3% to 6% of the price of the home. So it’s costly to frequently trade up to a new home.

Mortgage debt is considered “good” debt, but there is still a certain amount of risk (and commitment) involved. A lease gives you more freedom to move and more flexibility to adjust your housing expenses based on your financial situation.

Beyond the mortgage

Go into homeownership with your eyes wide open. Owning your own place has costs beyond the mortgage. Make sure to budget for these additional expenses.

• Property taxes. Property taxes support schools, pay for trash removal, and generally support the community you live in. They are necessary. They will be different depending on where you live and are assessed annually. The amount of your taxes may also vary each year depending on the assessed value of your home, the mil rate used by your municipality, and other projects that your community may be undertaking. If you want to get a general idea of what your annual taxes will be, divide that number by 12 and set that amount aside each month in a special “taxes” savings account to ensure you have the money available when the tax bill comes. Or, put it in escrow as part of your total monthly loan payment.
• Maintenance (inside and out). Whether it’s new paint or flooring, remodeling a bathroom to your liking, or must-do’s like a new furnace, roof, or hot water heater, maintaining a home can be costly. Because it’s such a significant investment, you need to keep your property up for resale purposes. Maintenance may also require some basic tools such as a lawn mower, ladder, or dehumidifier, which you wouldn’t necessarily need as a renter.
• Utilities. Be prepared to pay water, electric, and heating costs. Ask to see the current homeowner’s costs for the last year to get an idea of what you may need to budget for. Don’t forget to factor in cable or internet service.
• Insurance. Your home may be the biggest investment you ever make. Protect yourself from financial loss in the event your home is damaged or destroyed with proper insurance. The cost of home insurance is dependent on many factors, including how much coverage you purchase, your deductible, distance to a fire station, etc. Don’t skimp on coverage to save money. You’ll want to have enough coverage to rebuild your home in the  event of a total loss. Be prepared to purchase private mortgage insurance as well if you have less than 20% of the purchase price for a down payment. This insurance may be required and will apply until you have built up 20% equity in your home.
• Time. The biggest cost of being a homeowner is time. Cleaning, yard work, shoveling snow, DIY projects—there is always something needing to be done. Lots of people actually enjoy maintaining their home. They get a sense of satisfaction from it and it can be something of a badge of honor. But it might not be how you want to spend your time. Consider the time commitment of owning a home before you buy.
• Your goals. Looking at your personal and financial goals will also help you decide whether owning a home is right for you right now. Taking a big step like buying a home without accounting for it in your plan could throw you off course.

Learn more and download our free eBook, Buying a Home.

Continue with infographic, “10 things to watch for when buying a house.”

Teacher features

Your home (and everything in it) is likely your largest investment, and we help you protect it. Not all policies are the same. While many companies offer home insurance, ours is the only one created exclusively for Wisconsin public school employees like you. Here are your home insurance advantages.

Especially for teachers

Educator benefits

Increased coverage for personal property losses on school premises—regardless of the cause of loss—to $2,000. No deductible.

Loss of preparation materials

We’ll cover up to $500 ($100 per hour) as reimbursement for preparing new teaching materials that were either stolen or damaged by a covered loss. No deductible.

Protecting your home and possessions

Guaranteed Replacement Cost

If your home was built in 1950 or later, we will pay the full cost to repair and replace your home even if the cost of the repairs exceeds your policy limits.

Extended Replacement Cost

For homes built prior to 1950, we provide up to 125% of the dwelling limit on your policy.

Personal Legal Protection™

An additional benefit to our home policyholders at no extra cost. Create wills, trusts, healthcare directives, and more.

Equipment breakdown coverage

Covers the cost of repairing or replacing mechanical and electrical equipment in your home when it breaks down.

NEW! Flexible jewelry coverage

We offer a straightforward coverage for your jewelry instead of requiring itemization for each piece.

And more…

• We don’t charge installment fees for monthly payment plans.
• We offer a claims experience you can trust.
• Talk to a live person every time you call.

And if you have an auto policy with us, don’t forget your personal liability/umbrella coverage—keep everything under one roof to protect your family and everything you own.

Get an insurance quote

…and have your family members* and colleagues contact us to get a quote, too.

weabenefits.com/quote
1-800-279-4030

Or sign up for a personal consult. Evening consultations available by appointment.

 

*Family members who may be eligible include your spouse or domestic partner, children and their spouses, parents, and parents-in-law.

Who needs life insurance?

When considering your decision, start out by asking yourself a simple question: “Would someone suffer financially if I were to pass away?”

• If you’re married, your spouse may find it difficult to cover living expenses.
• Raising children is expensive…even unpaid contributions to the family would be expensive to replace.
• If you’re a retiree, your spouse may have to make do with less Social Security and pension support while they face increasing health care costs and other costs.

Explore our life insurance section and learn more about:

• How much life insurance you need.
• Who needs life insurance.
• Types of life insurance.

Then compare quotes from numerous life insurance companies without sharing any of your personal information.

Evaluating insurance in retirement

Before canceling or making changes to a policy, consider this information when evaluating your different policies.

Medicare supplement insurance

Health care costs tend to increase with age, so having a policy that keeps you covered is critical.

Once you qualify for Medicare, you may want to consider looking into a supplemental insurance policy to help fill the “gaps” in health care costs. This extra coverage can help with out-of-pocket expenses original Medicare doesn’t cover, such as coinsurance, copayments, and deductibles.

Long-term care insurance

Long-term care (LTC) helps people live as independently as possible when they can no longer perform everyday activities on their own. Our life expectancies are longer than ever, and someone turning 65+ has nearly a 70% chance of needing some type of long-term care support during their lives.¹

LTCi policies can be built to fit your needs and budget. When deciding what coverage you’ll need, here are a couple of things to consider:

• How much can you afford to contribute toward the expense of your care?
• What’s the anticipated cost of LTC? How long might you need LTC services?

If you require long-term care, it can be a big relief to have a plan now that will help you and your loved ones cope in the future.

Life Insurance

Protect the ones you love! Life insurance can be an important part of your family’s financial stability. It’s an answer to the difficult question: How will my loved ones manage financially if something were to happen to me?

Did you know retirement account beneficiaries may need to fully withdraw from the account within ten years? Life insurance can help offset that and be used to cover daily living expenses, funeral costs, medical bills, loans, and many other essential expenses.

Wherever you are in life, you can apply for a life insurance policy to help ensure your family’s financial security.

Home, auto, renters, and liability (umbrella) insurance

If you’re a retiree, you’ll likely find yourself with new hobbies, new places to live, and traveling more (or less). In this case, the insurance policies you had when you were working in your district may need to be adjusted. In some situations you could be under-insured, and you could be over-insured in other situations.

Insurance evaluations are a great tool to use as you encounter life changes. Life may be different, but it’s still important to protect yourself and your family with insurance designed to fit your needs.

Find someone you trust to help advocate for you and listen to your insurance needs when reviewing your policies and liability coverage.

Member Benefits believes public school retirees deserve an insurance company that offers high-quality products and exceptional customer service.

And for those insurance products we didn’t initially offer, we’ve partnered with industry expert Associates of Clifton Park to better meet the needs of our members.

You do NOT need to leave our insurance programs when you retire. Member Benefits is here for you to and through retirement—and that includes insurance, too.

1 Source: acl.gov/ltc/basic-needs/how-much-care-will-you-need

Home and auto rates: Is cheaper better?

The idea of saving some money by choosing the cheapest auto and home insurance is a tempting idea. But does that mean the insurance meets your needs? Maybe. But cheaper may mean you’re not getting the coverage or service you need when it comes time to make a claim.

Many people treat insurance as a one-size-fits-all commodity. However, that is far from the case. Your needs are unique to you, so it’s critical that you understand what you are comparing when contacting insurance companies.

Why is cheaper not necessarily better?

Almost no two insurers sell the exact same coverage. If you’re getting online quotes, make sure you’re comparing apples to apples. Some may quote you on a different levels of coverage than another company, such as bodily injury or liability protection on your auto and home policy.

Some companies bundle certain coverages together, so you may be paying for coverages you don’t need. It’s important to know exactly what you’re being quoted on.

Cheaper may mean less coverage, and that may inadvertently expose you to more loss than you expected.

You may get what you pay for when it comes to service. Is it worth a long wait time, convoluted claims process, or poor communication when you’re most in need?

A cheap insurance policy may make promises on what you can save, but when it comes time for a claim, it can really cost you.

A testament to our service

Educator Sam Bina, School District of La Crosse, had a hailstorm pass through his area on March 31, 2023, and cause damage to homes in his neighborhood. When he called us, Halona Lippert, Senior Claims Specialist, promptly assigned an adjuster to inspect his home.

The adjuster found minor damage and the amount was below Sam’s deductible, so a claim payment was not issued in this case.

However, Sam couldn’t say enough about our service.

Be a value hunter, not a bargain hunter

We’ve said many times that insurance is an important part of your financial security. If you’re like most people who treat auto and home insurance like a commodity—or one-size-fits-all—you risk leaving yourself (and your family) exposed to financial loss or purchasing coverages you don’t need.

By going deeper and considering these three principles, you may be able to increase the likelihood that you are appropriately covered.

→ Buy value, not price
For example, is exposing yourself to loss by lowering your liability limits worth saving a few dollars every month? Make sure you understand the implications of the coverage decisions you make.

→ Maximize your insurance dollar
The risk of a catastrophic event may be low but it does happen…and it can be financially devastating. If you’re looking to save money, explore reducing your deductible before you consider reducing coverage.

→ Insure for the catastrophic
It’s the real reason we have insurance. Liability (umbrella) insurance is often overlooked, but most financial planners consider it a must-have. It’s also very affordable.

Claims service you can trust

Because we are member-focused, you can expect a great service experience.

• You can choose to speak to the same person throughout your claim process, but all of our staff are equally able to help you through your claim.
• Our claim staff longevity averages over 25 years. This means when we discuss any questions you have, we can quickly conclude your claim in the most efficient manner.
• Not sure if you want to present a claim yet? We can answer your questions and allow you to make an informed decision.
• We can go through the “what ifs” about a claim and collaborate with other staff if we can’t answer right away.
• We have gathered a group of knowledgeable independent appraisers that share the same goals as Member Benefits for service and customer satisfaction.
• You choose your body shop or contractor because you know your local community better than we would.

When your life is significantly disrupted by accident or home loss, you depend on your insurance to be there for you. Member Benefits was created by educators for educators. It’s not always the least expensive, but it will be there for you when you need it most.

Help prevent a fire in your home

Keep yourself safe with some common sense precautions and make sure you’re properly insured.

Cooking and heating are the leading causes of home fires and fire injuries, and winter months are the peak time for fire-related deaths. To play it safe, stay in the kitchen while cooking and make sure you never leave space heaters or fireplaces unattended.

Frayed wires can also cause fires. Replace all worn, old, or damaged appliance cords immediately and do not run cords under rugs or furniture.

Test your smoke and carbon monoxide alarms monthly and change batteries once a year. Be sure a smoke alarm is installed on every floor of your home and in each bedroom, and that a carbon monoxide detector is near all bedrooms.

Have a fire safety plan and adjust it to help children and older adults escape a potential fire, as they are more likely to sleep through or not react to the sound of a fire alarm.

Schedule a professional inspection each year of all fuel-burning home heating systems including furnaces, boilers, fireplaces, wood stoves, water heaters, chimneys, flues, and vents.

To avoid financial hardship if you do have a major fire, be sure you have enough insurance coverage to rebuild the home and replace personal possessions. A 2022 American Property Casualty Insurance Association survey found that a majority of insured homeowners have not taken steps to ensure their insurance coverage is keeping pace with rising inflation and increased building costs, which could leave you underinsured if catastrophe strikes.

If you’re unsure about your coverage, give us a call at 1-800-279-4030 or set up a personal phone consultation. We can help you evaluate your policy to make sure you have the right coverage for your situation.

Sources: National Safety Council, Ready.gov