The Costly Mistakes Too Many Homeowners Make

A manufacturing malfunction in a supply line nearly destroyed our almost 100-year-old home in Los Angeles. We were away for a week-long road trip to Oregon, and upon returning home, our family found it flooded and severely damaged. To say I was shocked is an understatement. 

As we settle into rental life before we can return to our home next summer, I’ve moved all the way through the phases of grief to the advice-giving stage. I want to make sure that if something like this happens to you, you’re prepared. So here are some things my husband and I have learned through this process.

Review your insurance policy

You need to know how much your insurer values your dwelling and personal possessions (everything not an appliance or nailed down). Just like a new car, pretty much anything you buy will depreciate the moment you purchase it. The Zara sweater I bought in Spain last fall: depreciated. The family room couch where we’d snuggle and watch family movies: depreciated. Allegedly, the only things insurers cannot depreciate are the vintage rugs and the damaged midcentury furniture. Buying second-hand, getting hand-me-downs, and purchasing vintage items and antiques will help you collect things that will retain their value in a debate with your insurance company on what your belongings are worth.

Next, understand the coverage for your hotel or temporary rental, something I didn’t even think or know about until this incident. Most “loss of use coverages” mean 20 to 30% of the value of your insured home will be budgeted to find a place to stay while you’re out of it. Depending on your real estate market, it’s good to assess whether or not your policy has enough coverage.

To house a family our size (a minimum three- to four-bedroom space), you are looking at a national average of $3,000 a month. I can attest that it’s much much more in Los Angeles where an oversaturated market, still-displaced fire victims, and our family having to house three adults and four children made it challenging to find a spot for the next year.

I know some people talk about being “over-insured,” but after going through this, I don’t know if that’s possible. Who can really afford to pay a mortgage and rent? Not many. Being insured (life, home, property, auto) is the wise decision for yourself and your family.

Save for a rainy day

Our policy coverage is good, but it’s slow. An emergency fund is vital. You’ll still have to pay your mortgage. Believe it or not, if you have a leak like us, you’ll have to contact your local department of water and power to figure out forgiveness or a payment plan. Your life may be in chaos, but the world still continues. Bills have to be paid, clients have to be served, and kids have to go to school, be fed, and sometimes watched at a financial cost to you.

Additional costs for us so far include loss of work, the hotel, the security deposit for our rental, childcare, and extra fuel for the added commutes due to the new housing situation. We had to re-purchase basic items such as toiletries, medicine, pajamas, swimsuits, shoes, and clothing for our kids and my mother-in-law.

We spent three times as much on food and fuel as we do in our normal lives, having to live in a hotel for a month. Even if insurance reimburses that, it adds up fast. Having a nest egg to cover yourself for a couple of months is key. Any monies or gifts you get from your community, family, and friends are a bonus. 

Ask for help

A friend recommended we set up a fundraiser. We didn’t until a month later, and we should have done it earlier. “Strike while the iron is hot” might seem slightly crass, but it’s true. If a friend or family member can do this for you, assign it to a capable person, even if you think you might not need it.

I splurged and got groceries delivered for the first time ever because I had to be on a podcast, had no childcare, and also needed to feed my kids and get my toddler pull-ups. God bless the friend who gave me an Instacart gift card so I could get the grocery delivery and the friend who gifted us a DoorDash gift card that paid for the lunch I ordered while I restocked the rental chest freezer and fridge with food for my brood. Adrenaline, caffeine, and willpower can only carry you so far.

I also reached out to friends in our community for aid. I told them we needed clothes, and they brought hand-me-downs. I told them we’ll need school uniforms, and they brought their extras. I told them my kids needed to get out of the hotel, and they brought them to the movies, to play dates, and to lunch. Learning to ask for help can be hard, but we, especially moms, need to exercise that muscle more.

Be honest with yourself and your family

We had a lot of questions. We still have a lot of questions. This is the most “unknown” our kids have ever experienced, and it hurts my heart how much it’s rocked their world. But it’s been so precious to see the things they truly cared about. Stuffed animals from their great-grandparents who have passed away, a family photo from a trip we took for their dad’s birthday, our family Christmas ornaments. Not just toys and clothes, but items that held special meaning.

When they ask, “What’s going on?” I tell them honestly. It’s been a lot of me saying “I don’t know” and “Mommy doesn’t totally understand either.” And, “This sucks. I’m sorry I can’t fix it.”

Our kids are learning a lot about the cost of real estate, plumbers, electricians, contractors, permitting departments, adjusters, lawyers, engineers, total loss inventory, and how many blue collar businesses there are that deal with mold remediation, water removal, and moving and storage. We protect them in a lot of ways, but I will tell them every step of the way what’s going on and why.

They lost their home too, and they deserve to know. It’s helped them pause and process with us how they feel because they get we’re in this together and we, their parents, are doing everything we can to advocate for them.

You cannot always know how you will handle an emergency situation until you’re in it, but putting prior preparation in place before something big happens is good practice. There are so many strangers who will roll into your house to do their jobs, so many decisions to be made, so many emotions occurring, and so many details to manage that having a game plan will help you in the midst of the chaos.

One thing is for sure: We will rebuild!

***

Elisha Krauss is a conservative commentator, writer, and speaker who resides in Los Angeles, California, with her husband and their four children. She is an advocate for women’s rights, school choice, and smaller government.

This article is part of Upstream, The Daily Wire’s new home for culture and lifestyle. Real human insight and human stories — from our featured writers to you.