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Schmitt's example may be extreme, but mold damage is not unusual. In 2022, water damage, including mold, represented 27.6% of homeowners insurance losses, according to data from Insurance Services Office, an industry group. Despite the award for the owner of the mold-damaged home later being reduced to $4 million, companies still pulled back on mold coverage. "Mold claims won't be covered if it's a result of neglect, such as pipe leaking for months resulting in water damage and mold." "You should always read your insurance policy and understand what you have, but no one's going to do that," Kochenburger said.
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The average bank savings rate as of April 26 was a paltry 0.24%, according to Bankrate. At some of the biggest banks, savings rates are as low as 0.01%. For the rest of your emergency fund and other savings, you can get a healthy return just by opening an online high-yield savings account at an FDIC insured online bank. As with most bank rates, high-yield rates are variable so can change at any point. Don’t chase yieldAs attractive as many savings rates are today, they are no substitute for the long-term returns you can earn in a diversified investment portfolio of stocks, bonds and other assets.
They also note that adjustable rate mortgages and other atypical home loans make up a much smaller percentage of total mortgages than what was seen during the 2008 crash. But consumer advocates and others close to the real estate industry warn that homebuyers could still find themselves in a precarious financial position when their mortgage interest rates reset and they find their monthly payments going up. “We are watching anxiously as we see more interest in these alternative mortgage products that often seem to involve some sort of initial teaser interest rate and the interest rate is going to go up,” said Sarah Mancini, a staff attorney with the National Consumer Law Center. “Now, they are feeling like, 'Oh, God, higher interest rates are coming, we want to jump on it, we don’t want to miss it again,'" said Holeman. In marketing material, mortgage brokers often suggest that buyers can refinance after the two-year period, suggesting rates will go down in the near future.
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