In an attempt to gain some more wiggle room in our budget I've been trying to cut out a lot of extraneous expenses. I have 3 optional coverages which I am thinking about having dropped that would save me an additional $300 a year:

Foundation $75/year
Mold/Fungus $153/year
Water Damage $72/year

Was hoping some of you could chime in on if this would be a wise decision or not. My home is Pier and Beam foundation, built in 1939 and is in pretty good shape. We have lived here for 3 years. I called up Tommy Thompson who did our home inspection before we bought the house and he said he thought the foundation coverage was unnecessary. The other two he didn't have a strong opinion on and basically said it was up to me.

I would not drop the water damage coverage, especially if you have plumbing as old as your home. That type of damage can be very expensive to fix.

Check with your agent...once you drop one (or more), you may not be able to ever add what you dropped back. IDK if my agent was blowing smoke or not, but that's what he told me. I only have the water and foundation extras, though, and the minimal cost savings just wasn't worth it (maybe $150 on a $1900 policy). I'll save money somewhere else.

[This message has been edited by TXTransplant (edited 7/22/2014 6:27p).]

Look at the exclusions associated with those coverages.

I would get rid of the mold for sure and possibly the foundation. Most of those have an exclusion associated with them that won't cover the most common causes of those (shifting soils and mold caused by water).

If you have an encapsulated crawlspace and low moisture content in the joists you can drop mold.

Never drop water coverage. Average water claim is $5000.