Money Management

Homeowners insurance typically excludes coverage for some natural disasters. Keep reading to learn what you might need separate coverage for. 

When buying homeowners insurance, most people expect that they will be protected against losses that they face with their property. After all, the point of buying insurance is so a disaster does not empty a property owner’s bank account and destroy their financial security.

Unfortunately, while home insurance policies cover lots of possible sources of loss — including things like fires and theft — there are some hazards that are not typically covered by a standard policy. And many of these exclusions could come as a big surprise.

In particular, homeowners may be shocked to discover their insurance will not protect them from the following disasters.

1. Floods

Water can do a tremendous amount of damage to a home in a short period of time. And, some water damage is covered. If a fridge or tub leaks, for example, your homeowners insurance will likely pay for the resulting consequences.

Unfortunately, insurance won’t cover the water issue most likely to cause you problems. That’s because rain and storm flood damage are typically excluded from a standard homeowners insurance policy. This means if a hurricane brings torrential rains or a major rainstorm causes a creek beyond a home to flood, insurance won’t be there to help you.

Homeowners who are located in a designated flood zone will typically be required by their mortgage lenders to purchase add-on flood coverage (which is available through FEMA’s National Flood Insurance Program). Even those not in a designated flood zone may wish to look into a policy, though, if they have water near their home and they are concerned about a bad rainstorm leading to uncovered losses.

2. Earthquakes

Most natural disasters are not covered by a standard homeowners insurance policy either. This includes earthquakes.

There are standalone earthquake policies that can be purchased, though. This includes traditional earthquake insurance that would provide reimbursement for the value of lost items if a covered event happens, as well as parametric insurance that covers only specific events such as when an earthquake meets a certain intensity level.

3. Sinkholes

Sinkholes can be a frightening experience, sometimes opening up to swallow whole buildings. Unfortunately, homeowners insurance is not going to provide coverage for them if homeowners have only a standard policy.

Sinkholes are more common in certain states than others, with an elevated risk existing in Alabama, Florida, Kentucky, Missouri, Pennsylvania, Texas, and Tennessee. Those who face a risk of losses caused by a sinkhole may be able to get add-on coverage for their existing insurance policy. Many insurers offer sinkhole riders that will pay for both repair or replacement of the building as well as repair or replacement of any property damaged by a sinkhole.

It is important to understand the different options that exist to provide coverage for hazards excluded from a standard insurance policy. But, it’s only possible to find and buy the right protection if homeowners know what isn’t covered.

Homeowners can’t afford to wait until a disaster happens to understand the limitations of a standard homeowners insurance policy. Anyone who owns a property should review their insurance contract carefully, and consider talking with their home insurer if they aren’t sure if something is covered. It’s better to find out before the flood, earthquake, or sinkhole that the disaster won’t be covered than to learn this after the fact and be left with devastating financial loss.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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When it comes to grocery delivery, shoppers picking up the wrong items can be a real problem. Learn how to minimize this issue. 

Grocery delivery has been a great thing for my bank account. When I don’t go into the store, I am not tempted by impulse buys. As a result, my credit card bills have been lower due to reduced food expenses.

But, while I love grocery delivery, there is one huge downside I’ve had to deal with. Here’s what I’ve found to be the biggest disadvantage of having groceries brought to my home or selected by a shopper for me.

This is the one thing I really don’t like about grocery delivery

To me, the biggest downside of grocery delivery is when you’re brought the wrong product or brought an unusable version of a product you really need.

When this happens, you can get your money back for the incorrect item — or at least get credit on your grocery delivery account. But, the big problem is, you most likely needed the item that you ordered. So, if you get cottage cheese instead of sour cream or a package of moldy blueberries, you are going to be left without food you expected to have.

If you were making a recipe with the missing or incorrect item, or counted on it to be a part of your breakfast, you aren’t going to be able to have the meal you planned. This could mean you have to run to the store anyway — the very thing you were hoping to avoid — or you end up eating out because you can’t make the meal you wanted.

While this doesn’t happen to me every time, it happens enough to be more than just an annoyance. Of course, it hasn’t made me abandon the idea of getting my groceries delivered as the convenience is just too great — especially with toddlers I’d have to drag to the store — but it has made me a bit more careful about when and how I use a delivery service.

How to minimize this downside of grocery delivery

There are a few different ways I minimize this downside. One is that I pick and choose which stores I get grocery pickup and delivery from. I’ve noticed that I get far better service at some stores than others so I try to order from them most frequently.

I also have automatic substitutions turned off in my grocery delivery accounts and ask the shopper to text me with substitution suggestions instead. This helps ensure I don’t get an unsuitable alternative product when something I want is out of stock.

Finally, I try to make it a point never to plan a meal around a grocery delivery I’ll be getting that day. In other words, if I need something for dinner tomorrow, I’ll get the groceries delivered a day before rather than waiting until the day of. This way if there is a problem, I can usually find time to run into the store to get the one or two missing items.

By being strategic about how to use grocery delivery services, I can reap the benefits they offer while minimizing this downside. This strategy has worked out well for me, and could be a good one for others to adopt if they also find their shopper sometimes sends the wrong items home.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
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One lucky city is getting a massive Costco store. Read on to find out more. 

When you think of Costco, the word “supersized” tends to come to mind. Not only does Costco sell its products in bulk, but the stores themselves are downright enormous. If you’re someone who aims to take 10,000 steps a day, here’s a solution — spend a couple of hours roaming your local Costco and wait for your Fitbit to congratulate you on a job well done.

The average Costco warehouse takes up about 146,000 square feet on average, reports Eat This, Not That! Compare that to a regular supermarket with an average square footage of 38,000, and it’s easy to see how you might get lost in a maze of Costco aisles even if you’re a somewhat regular shopper.

But now, Costco is rolling out plans to open its largest warehouse club store yet. And it could be a true game-changer for members who live close enough to take advantage of it.

A massive store is coming to Fresco

Residents of Fresno, California might soon have something to celebrate. That’s because the city’s incoming Costco is slated to be the company’s biggest store yet, spanning 241,000 square feet and taking up 22.4 acres of land.

For context, at present, the largest Costco warehouse is located in Salt Lake City, Utah. That store takes up 235,000 square feet of space.

Bigger isn’t always better

Costco’s upcoming megastore could end up being a mixed bag for customers. On the one hand, the larger the store, the more items it can sell. That means customers get more selection and the opportunity to eke out potential savings on the items they buy.

On the other hand, there can be such a thing as too broad a selection. Customers might find themselves overwhelmed at the idea of having to navigate an even larger Costco store than they’re used to. And they may run into trouble with impulse buys if Costco’s largest warehouse tempts them with too many products to choose from.

Also, shopping at Costco can be a time-consuming process to begin with. So to introduce an even larger Costco store might leave some customers feeling frustrated.

All told, the idea of an even larger Costco store than usual is something to get excited about. But it’s important to acknowledge that some members may find it challenging to navigate that new Fresno location.

That said, the same strategy for the Fresno market can apply to Costco customers across the board. If you struggle to stay focused while shopping at Costco, make a list of the items you’re looking for ahead of time and pledge to stick to it. Even if you have to navigate some extra aisles to get to your cleaning supplies and bulk string cheese, if you commit to your list, you may be less likely to be tempted by the things you see along the way.

And if you really want to make a point to avoid impulse buys at Costco, bring cash only and leave your credit cards at home. Granted, you’ll need to do a good job of estimating the cost of the items you want. And you should probably bring an extra $20 or so beyond what you’ve budgeted for just in case.

But if you’re planning to buy $100 worth of Costco items and you arrive at the store with $120, in a worst-case scenario, you’re blowing $20 on a whim. Having a credit card at your disposal could result in a lot more damage.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

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Will a HELOC impact your home sale? Read on to find out. 

Tapping the equity in your home can be a good way to borrow money when you’re looking for an alternative to taking out a personal loan. And while you might appreciate the predictability of a home equity loan, you might choose a home equity line of credit, or HELOC, instead because it gives you more flexibility.

After all, a HELOC doesn’t force you to borrow a single sum of money at once. You can draw from your HELOC at different points during the preset window your agreement allows for.

As of the first quarter of 2023, outstanding U.S. HELOC balances came to $339 billion, according to the Federal Reserve Bank of New York. So clearly, it’s a pretty popular borrowing choice.

If you owe money on a HELOC, you may be wondering how it might impact your ability to sell your home. The good news is that you’re allowed to sell a home even with an outstanding HELOC balance. But there may be some financial implications you’ll need to carefully consider.

How a home sale works with a HELOC

The goal of HELOC lenders is to get paid. And so HELOCs aren’t designed to prevent the sale of a home, because when a home is sold, HELOCs are repaid sooner.

A HELOC is considered a second mortgage. So when you sell your home, first, the proceeds from that sale will go to your current mortgage lender. From there, the remaining proceeds will be used to pay off your HELOC. Only once those debts have been satisfied will you get any money from the sale of your home to pocket yourself. But as long as you’re prepared for that, there shouldn’t be any problems.

An issue might arise, however, if your home doesn’t sell for a high enough price to pay off your mortgage and HELOC in full. Let’s say your home sells for $270,000, and you owe your mortgage lender $250,000 and your HELOC lender $30,000. In that case, you’re $10,000 short. So you’ll need to come up with the remaining money to pay off your HELOC yourself.

You should also know that some HELOCs come with early termination penalties. So if you close out and pay off your HELOC in conjunction with selling your home, you may be on the hook for a fee. You can find out if that’s the case by reading through your agreement.

Should you try to repay your HELOC before selling your home?

You don’t necessarily have to wait to repay a HELOC before selling your home if you’re confident your property will fetch a high enough sale price to satisfy that debt. Otherwise, you may want to wait until your home’s value rises before selling it.

But if your home’s value has recently risen and that’s what’s prompting you to sell, then you might specifically want to move on that listing sooner rather than later. And you wouldn’t want an outstanding HELOC balance to hold you back.

Repaying a HELOC could take years, and you don’t necessarily want to put major life plans on hold while you’re paying off that debt. Just be aware of the fees that might ensue if you pay off or terminate your HELOC early in conjunction with selling your home.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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Dollar stores are a great place to find a bargain, especially if you know how to compare prices. Find out what else you can do to save even more money. 

Many American households have added dollar stores to their grocery roster in recent years, driven, in part, by high living costs and other economic concerns. Indeed, dollar stores are the fastest-growing food retailers in the U.S., according to a joint study from Tufts University School of Medicine and the Friedman School of Nutrition Science and Policy earlier this year.

If you’re new to the dollar store world, here are 10 ways you can save more.

1. Work out the actual cost

Dollar store prices can be deceptive. Discount chains may not stock the same size of packages as other stores, which makes it harder to compare apples with apples. To calculate the price per ounce, take the total cost and divide it by the number of ounces.

For example, Dollar General sells a 7.8 ounce box of Kellogg’s Corn Pops for $3.75, while Walmart sells an 18.1 ounce box of the same cereal at $5.48. Dollar General’s product is $0.48 per ounce and Walmart’s is $0.30 per ounce.

2. Check the use-by dates

A few years ago, a couple of dollar store chains were fined for selling out-of-date products, including some medications. One way that dollar stores keep costs down is to hire fewer staff members, which may mean fewer checks on what’s in stock. Pay attention to sell-by dates and maybe steer clear of items that don’t usually move quickly.

3. Know what’s worth buying…and what’s not

There’s an art to dollar store shopping, and a lot comes down to knowing what’s a good value. You’ll likely have a good sense of how much the items you buy regularly would cost. If not, use price comparison apps or check the online prices in other stores.

Broadly speaking, think about items where price matters more than quality. I’m talking about party decorations, greeting cards, plant pots, and certain personal care items like hair brushes. When it comes to, say, vitamins, sunscreen, or other items where your health might suffer if the product is substandard, perhaps give it a miss.

4. Avoid name brands…for the most part

If you’re looking to save money, look at the non-brand products. Compare the ingredient list with the items you usually buy and if they are similar, give the non-branded product a go. It won’t always taste the same, but there’s often little to distinguish between them.

Name brands can be hit and miss at dollar stores. You might pick up some great deals, but — as shown by the Corn Pops example above — the discount chains don’t always come out on top. Here’s how a few branded products compare at Walmart and Dollar General online:

5. Avoid impulse buys

Scoring a discount on a product you need is a bargain. Spending money on something you didn’t really want or need is another matter entirely, even if it’s on special offer. If you want to maximize your dollar store savings, don’t let yourself fall into the “it’s only a few dollars” trap.

6. Be ready to shop around

Dollar stores often have a limited range of products. That means you’re unlikely to find everything you need in your local dollar store. I do a two-stop grocery trip, starting with a discount chain where I pick up the products that are better value. Then I pick up the rest in other supermarkets and vegetable stores.

7. Get extra discounts

Coupons can be a great way to score extra discounts. Be aware that some dollar stores have certain restrictions, such as a limit on the number of coupons you can use in one go. Also, some coupons may not be valid if the packaging size doesn’t match. Check out stores’ websites and apps for extra discounts, including coupons.

8. Max out your rewards

There are two sides to the grocery-saving coin. One is reducing the costs of the items you buy. The other is to earn rewards on what you spend. Look into rewards credit cards that pay the most on the types of spending you do most. You can stack those rewards with a cash back app to get even more benefits.

9. Timing is everything

Get to the store early to skip the lines and get the first pick of the available products. It’s also worth watching for clearance days, as you might be able to get as much as 50% off. Follow your favorite stores on social media to know when those extra discounts might be available.

10. Avoid damaged goods

Take the time to examine goods before you put them in your cart so you don’t end up with ineffective cleaning products or food that doesn’t taste quite as it should. Dented cans, in particular, can carry nasty bacteria. Some frozen food may be discolored or, if the package is damaged, the food may get freezer burn.

Bottom line

Dollar stores can be a great way to reduce your grocery costs, which means more money in your bank account for other things. Pay attention to what you’re buying and what it costs to make sure you’re truly getting a bargain.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Emma Newbery has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Walmart. The Motley Fool has a disclosure policy.

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Letting someone be an authorized user can help them build their credit, but you could be responsible for any charges they incur. Find out more. 

If you have a credit card, you likely have the ability to make someone an authorized user on the account. This means you give someone the official authority to have a card in their name linked to your account, which they can use to make purchases.

There are some good reasons why you may want to make someone an authorized user, but there are downsides as well. Here’s what to consider when deciding if you should allow someone to have this status on one of your credit accounts.

Here’s why you may want to make someone an authorized user

One of the best reasons to make someone an authorized user is to help them build credit. If you have a credit account in good standing with a positive payment, lots of available credit, and a low balance relative to credit available, that card’s history can help someone earn a positive credit score.

See, when you make someone an authorized user, the account shows up on their credit record. They get the benefit of your responsible borrowing behavior. This can be a big boon to your children or other family members who are building credit for the first time or who may have run into some past financial trouble and have bad credit. You don’t even have to actually give them the card for them to get the credit-building benefits as long as you add them as an authorized user and the account shows up on their credit record.

Adding someone as an authorized user could also entitle them to cardholder benefits, such as airline lounge access, although card policies vary as to how many authorized users you can add and whether they gain access to all of the generous perks provided by many rewards cards. You may want to check with your card issuer if this is your goal.

Finally, adding an authorized user authorizes that person to use your account. And there may be times when you want someone else using your account. For example, you and your spouse may want to use the same credit account, or you and your children might. Or perhaps you want an employee to be able to use the business card account to charge things.

When you give someone else the chance to use your card and they use it, that isn’t just convenient for them; it also helps you earn rewards for their spending as well.

Here are the big downsides of giving someone authorized user status

Unfortunately, there are some major downsides to giving someone else authorized user status. And the biggest is that you’re going to be responsible for any charges they make. They will have the authority to use your card but no legal responsibility to repay it. So if someone ends up spending more than you expect, you’re on the hook.

You may also be limited in how many people you’re allowed to add as an authorized user or, in some cases, may have to pay a fee to add extra authorized users. If that’s the case, you’d need to think carefully about who — if anyone — to give this privilege to.

By considering these advantages and disadvantages, you can make the best choice about when to add someone as an authorized user on your account.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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