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Study shows Americans' homes inadequately protected 2010-05-19 Most older Americans nearing retirement may have paid off their mortgages or owe very little. However, protecting home assets is just as important as paying for a home. A new study reveals that many Americans do not have adequate coverage on their homes, leaving them - and their nest eggs - vulnerable to financial disasters. The study, conducted by a leading financial services firm, reveals that while 46 percent of participants say their primary source of net income rests in their home equity, only 2 percent prioritize insurance protection. Home owners should examine, and if necessary, update their coverage to cover the full amount of their property in the event of a disaster. In addition, most insurance policies do not cover flood or natural disaster insurance. Americans living in areas prone to these disasters should look into purchasing additional coverage to avoid losing their homes and the money they have invested over the years. Carrying adequate insurance may be especially important for homeowners contemplating a reverse mortgage. Leaving their homes vulnerable to disaster jeopardizes their chances of using home equity to take out a reverse mortgage loan, which could negatively impact retirement plans.  |
