10 Ways to Go Broke

You do not know what you are talking about:

"In unavoidable natural disasters such as earthquakes or floods, your home insurance can help get you back on your feet."


Homeowner policies seldom (if ever) cover flood damage, including minor (but still expensive) damage from severe rainstorms. You must purchase a special policy to cover floods.

You should not give advice when you do not know what you are talking about. Votes: +8

You left out get a divorce. Votes: +3

Frizz is absolutely right. Insurers generally refuse to cover floods--the federal government usually backs flood insurance.

You should read your policy carefully--go over it with a lawyer to find exclusions and problems. Some policies indicate that "Acts of God" aren't covered. Well, an earthquake or tornado often is considered an "Act of God."

Many insurers--certainly in California--refuse to cover earthquakes, as well as floods. Landslides often are related to earthquakes and often not covered--in California and elsewhere, erosion from extreme rains (maybe after drought kills vegetation and accelerates erosion) houses come down off their hillsides--too often they're a total loss. What about liability--that type of disaster can damage others' property or kill people.

Other hazards are sinkholes, tornadoes, lightning, hail, and hurricanes. Even trees may damage homes--of course, they may fall on them. Tree roots (sweet gum/alder) get under homes--they can lift a large home's slab foundation up, causing total loss. Naturally, that may be a total surprise!

You must know something about your state's laws and what your policy says it covers.... Votes: +0

What about your liability a*sociated with your home or other property? You have a swimming pool or spa outside: Guess what? That may considered an "attractive nusciance" according to your state's law. Say a neighbor child sneaks into your backyard and drowns in your pool or hot tub--often, even though it's the child's or their parents' fault, you're then considered negligent and liable anyway. You have a dog, it gets out (or is even in your backyard), it's violent, and it kills a child--you're liable! Even owning wrong breed of dog may be illegal.

You're worth a lot of money somehow, you're a professional, or a successful business owner? You've heard it said: Anybody may sue anyone else in America! Are you an easy, juicy target for lawsuits?: Do you need an "umbrella" policy?

I'm neither a lawyer nor an insurance guy (both must obtain valid training, pa*s difficult exams, and become licensed by their states)--I'm trying to shock you in order that you obtain competent help to navigate this successfully and avoid disaster!

Don't depend solely upon your insurance agent (who likely is very helpful and useful)--a lawyer must work for your interests--agents must put their companies or firm first. Certainly, you don't want a lopsided legal battle with your relatively wealthy insurer, either! Votes: +0

The thing I hate about articles like this is that it a*sumes that the individual is their own worse financial enemy while implicitly stating who or what the real financial firestarters are. Insurance companies are good, doctors are good, but to have these services is prohibitively costly to begin, way before an disaster takes place. The average 20 or 30 something probably makes on average about 30 to 40 k per year or less. With cost of consumer goods rising, cost premiums rising and benefits declining, depressed wages, and while attempting to live a robust eventful life, it's highly improbable to continuously insist that the individual is the cause of his or her own financial. It's a harsh reality that under the circumstances we have to continuously and consciously plan for the future, way into the future, but that it is not our own fault if things take a financial turn for the worse. Votes: +2

Nevermind the article, I'm amused by the comment filtering.

I'ts a*s though the a*sistant editors or whoever a*sume you are from Ma*sachusetts, that you have lots of a*sets, are a*sociated with lawyers/accountants/whomever. Butt it is important that you a*sume control off your own personal finances and make sure they pa*s muster. Votes: +9

If you're trying to save money, wasting it on a gym membership or vitamins it a very poor idea. Votes: +2

test comment Votes: +0

I am surprised they did not mentioned eating out often instead of staying home and fixing your own meals. Some people eat out for dinner practically every day or go out to lunch from work. That can add up to a lot of money very quickly. Even just buying a morning cup of coffee from Starbucks every morning instead of brewing your own can cost a lot of money. Also, preparing your own meals can be a lot healthier than eating in restaurants, so this could also go under "taking care of yourself".
Votes: +0

Learn to spell. Votes: +0