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A survey commissioned by ServiceMaster Clean found that 1 in 3 American homes suffered from disruptive but restorable damage last year, including things like kitchen fires, appliance leaks and burst pipes. The average cost of damages was $2,500 not including cost covered by insurance, but only 35% of households have savings budgeted for major repairs.

The Tracker found that homeowners typically feel an unanticipated financial pinch when these situations do occur. A full 93 percent said that extensive home-related damages are expensive; yet only 35 percent budget specifically for them. This is an especially troubling disparity, considering that homeowners who experienced home damage in the past year had an average cost of $2,500 per event (not including costs covered by insurance).

Source: One in Three Americans Suffered Restorable Home-Related Damages in Past Year: Financial News - Yahoo! Finance

One in Three Americans Suffered Restorable Home-Related Damages in Past Year
Tuesday October 18, 9:00 am ET
‘Home Emergency Tracker’ Survey Highlights Need for Enhanced Homeowner Preparedness

MEMPHIS, Tenn., Oct. 18 /PRNewswire/ — One in three U.S. homeowners experienced disruptive, but restorable home-related damages in 2004, such as burst pipes, appliance leaks or kitchen fires, according to the “Home Emergency Tracker,” a research study commissioned by ServiceMaster Clean, a national leader in the disaster restoration and cleaning industry. The July 2005 research also found that homeowners who experienced one of these disruptive situations were unprepared emotionally, financially and unsure of what immediate action they should take.

The Tracker queried 684 homeowners across the U.S. to explore their experiences with and attitudes towards some of the most common restorable home emergencies. The five most common reported were: electrical surges (11%); standing water or flooding from rain (8%); mold (7%); sewer back-up (7%); and standing water from faulty appliances or burst pipes (6%).

“In most cases these events are entirely unexpected,” says Pete Duncanson, director of training, ServiceMaster Clean. “Unfortunately, the reality is that they do happen, and unless homeowners are prepared in a variety of ways, these situations can be even more traumatic and expensive than they need to be.”

The Tracker found that homeowners typically feel an unanticipated financial pinch when these situations do occur. A full 93 percent said that extensive home-related damages are expensive; yet only 35 percent budget specifically for them. This is an especially troubling disparity, considering that homeowners who experienced home damage in the past year had an average cost of $2,500 per event (not including costs covered by insurance).

“That’s a significant bite out of the average homeowner’s wallet, especially if they have not budgeted for it,” Duncanson added. “At the same time, 75 percent of homeowners said they did not file an insurance claim for their most recent damage, which could suggest a growing concern about increasing premiums and deductibles or being dropped from coverage. Regardless of the reason, choosing not to file a claim can magnify the immediate cost for a homeowner.”

In addition to the financial impact, the Tracker highlighted the disruptive nature of these common problems. More than 28 percent of homeowners said their most recent situation persisted for more than one week before their “life got back to normal.” An overwhelming percent (95%) agree that these situations cause great inconvenience, while 74 percent go so far as to say that they are traumatic.

“One of the main reasons why these numbers may be so staggering centers on a significant gap between homeowners thinking they are prepared before an emergency happens and actually being prepared when one does,” Duncanson noted. “A huge majority (84%) consider themselves prepared in the event of a home emergency, but we found that only 60 percent were prepared when this happened in their homes. In a nutshell, that disparity explains why home emergencies are so terribly disruptive.”

The gap may lie with people’s perceptions. The Tracker found that 73 percent consider themselves to be Do-It-Yourselfers; but when an event actually occurred 45 percent said they would call a professional restoration company for help. Interestingly, homeowners in the northeast, singles, seniors and women reported that they would be more likely to call a professional.

“The bottom line is that home-related damage caused by water, fire or smoke happen more than we might think, and when they do, even repair-savvy homeowners tend to find themselves not entirely equipped to respond effectively,” Duncanson concludes. “That’s why all homeowners should periodically evaluate their level of preparedness. At a minimum, they should make sure they understand exactly what is covered in their insurance policies, consider budgeting for these almost inevitable situations, and learn how to deal with the most common ones, such as different water damage scenarios and grease or electrical fires, to ensure that the restoration process is efficient and can begin promptly. Keeping a list of emergency phone numbers can help save homeowners’ time, money and headaches when faced with damage to their homes. It’s important to include a restoration company for fire, water or smoke damage like ServiceMaster Clean.”

Homeowners interested in a wide range of information about preventing, preparing for and recovering from the most common home emergencies should visit http://www.allabouthome.com .