Homeowners Continue To Tap Equity  

Many US homeowners continue to take cash out of their homes even as mortgage rates climb and home sales slip, helping to brace the economy, economists said.  

This year, Americans who refinance their mortgages are expected to draw $257 billion of wealth out of their homes, according to mortgage finance giant Freddie Mac.   That's $13 billion more than the refinancing cash-out seen in 2005 — the hottest year of the recent housing boom.  

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Home Insurance Claims  

Just as with auto insurance, homeowners have to worry that making a claim will get them dropped by their insurer. And that can mean higher premiums with another insurance company or, if you're deemed troublesome, with your state's high-risk pool. It might even mean no coverage at all. You'll also lose any loyalty or claims-free discounts you earned under your present coverage.  

There's no firm rule for when or why an insurer will drop coverage but even one or two small claims can do the trick. That's especially true if the claim is water-related, which could mean mold in the future, writes Kimberly Lankford, a Kiplinger's magazine columnist, in her recent book "The Insurance Maze."   "What an underwriter gets concerned about is claim frequency," says Chris Heidrick, vice president for personal insurance with Firemen's Fund. "It starts to raise questions."  

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