[boefixepa]

This is one of thouse situations where you know it will happen you just don't know when or how bad. At some point there will be major repairs needed on the house.

Home owners insurance is only for major disasters IMHO. As pointed out above what happens when you try and use them. It's a crime what they do, you have to have it, but if you use it they cancell you??? So if it's anything under 10K I don't see the point in even considering filling the claim. You just pay more for the repair over time in higher rates.

This is what emergency funds and planning are for. I have an 'envelope' for house maintaince, insurance dedductables, vet bills, car repairs etc. All these get there little bit every month. If something major happened I could combine them or take it from my acutaul 'emergency fund.'

People like to argue that you can't plan for things like a broken water line. Um....WRONG! You can plan for it, you just don't know what it is going to be at the time you are saving. If you can handle a major repair like this and not have to file a claim or 'charge it' then you know you are doing something right. Knock on wood...that nothing goes wrong at my house.

My vote is take that 12 a month and set it aside for repairs. That way you get the benifit of the interest and the $$ if nothing ever happens.