05.15.26 Clark Answers His Critics on Clark Stinks / Key Homeowners Insurance Rule

Summary

---

The Clark Howard Podcast: May 15, 2026

Episode: Clark Answers His Critics on Clark Stinks / Key Homeowners Insurance Rule

---

Overview

In this engaging episode, Clark Howard embraces feedback from his listeners in the ever-popular “Clark Stinks” segment, confronting areas where his advice may have fallen short and discussing alternative viewpoints. The conversation continues with a crucial warning for homeowners about insurance claims and the risks associated with "free roof" offers from unsolicited contractors. As always, Clark and his team respond to listener questions, addressing topics ranging from online banking rates to scam insurance and more. The show is infused with Clark’s practical, consumer-focused wisdom and features candid, often humorous exchanges between Clark and his co-host.

---

Key Segments and Discussion Points

---

1. Clark Stinks: Listener Critiques and Clark’s Responses

[01:52–20:02]

A. Prescription Savings Programs

• Listener (Kelly in Wisconsin): Points out Clark often forgets to mention manufacturer savings programs for prescriptions, which can provide major discounts.
  • Clark: “To neglect to mention it is clearly a terrible omission on my part... I got so hyper focused talking about how to save on prescriptions routinely, I forget to mention the manufacturer programs.” (02:26)

B. Browser Autofill and Credit Card Security

• Listener (Donna in Georgia): Warns that Chrome autofill can automatically input your card’s security code, increasing fraud risk.
  • Clark: “I didn't even know I could have that autofill.” (03:48)
  • Co-host: “You can choose to have that autofill with your card or not. So then you have to write it in each time.” (03:37)

C. EV Insurance Costs

• Listener (Mitch in Minnesota): Explains why EVs are often more expensive to insure—body shops are reluctant to work on damaged electric batteries, and insurers often total the vehicles.
  • Clark: “You did bring up a really valid point. A lot of insurers just flat out... total them out with relatively minor damage... it’s a teething problem, learning curve kind of thing.” (04:23)
  • Mentions Tesla’s approach of offering their own repair shops and discusses how insurance costs can be surprisingly high—his daughter switched to Tesla insurance, dropping costs by two-thirds.

D. Security Cameras Without Subscriptions

• Listeners (Marvin in WI, Scott in NY): Clark failed to mention camera brands without subscription fees and the importance of cloud storage for evidence if cameras are destroyed or stolen.
  • Clark: Shares his approach: uses Wyze cams with SD cards for local storage but acknowledges risks—the SD card can be stolen. Reiterates that ongoing cloud storage is where companies make their money. (07:09)

E. Study Abroad Experiences

• Listener (Andrew in Florida): Pushes back on Clark's previous comments about studying abroad, highlighting its affordability and educational value.
  • Clark: Acknowledges the value, shares examples of families sending students to Europe at lower costs than U.S. private universities. (08:46)

F. Paying Credit Cards: Bank Bill Pay vs. Direct

• Listener (Greg in California): Challenges Clark’s advice to pay credit cards directly with autopay, pointing out overdraft and fraud risks for those living paycheck to paycheck.
  • Clark: “Cash flow, you’re completely right. It’s the worst possible scenario when somebody sets up automatic payment... and there’s no money there.” (10:40)
  • Shares a personal story where Schwab's bill pay failed him, resulting in significant fees and leading him to prefer vendor websites.

G. Total Cost of Ownership: Apple Devices

• Listener (Jimbo in Texas): Argues Clark undervalues Apple's long-term savings and reliability versus up-front cost.
  • Clark: Concedes, “Apple may well be an exception to that. Did you hear me say that?” (15:10)

H. Habitat for Humanity and "Toxic Charity"

• Listener (Ed in California): Suggests Clark’s work with Habitat might be less effective than financial education, introduces the idea of “toxic charity.”
  • Clark: Firmly defends Habitat’s role serving low-income buyers overlooked by builders, asserts homeowners pay a mortgage and gain opportunity. Shares a heartfelt story about a Habitat homeowner reaching “magic five” (five payments left). (17:06)

Notable Quote:

“Habitat for Humanity builds homes for the part of the housing market that builders are not interested in... It's a ladder onto the American dream of homeownership.” — Clark Howard (17:06)

---

2. Key Homeowners Insurance Rule: Beware ‘Free Roof’ Offers

[22:54–28:22]

• Recent spike in roofers offering “free” inspections, especially after storms, leading homeowners to insurance abuse.
• In Florida, legislative changes curbed the problem, but it persists elsewhere. Clark warns that excessive or minor insurance claims can result in nonrenewal or being flagged in industry databases.
• Homeowners insurance should be for major, catastrophic losses only.
• Actionable Advice:
  • Raise deductibles as high as you can personally or as allowed by your mortgage lender.
  • Ensure total coverage is sufficient to rebuild after a total loss.
  • “Homeowners insurance claims are something that should be there for a legit, serious, significant loss.” (25:22)

Notable Quote:

“Homeowners insurance is now an adversarial relationship... At best, they're your frenemy.” — Clark Howard (24:22)

---

3. Listener Q&A

[28:27–end]

A. Online Bank Savings Rates [28:28]

• Joel in South Carolina: Asks about sustainability of high interest rates at online banks.
  • Clark: Recommends money market mutual funds at online brokers for consistent rates (though they lack FDIC insurance, government money funds are extremely safe). Weighs pros and cons against traditional bank/credit union accounts.

B. Google Calendar Scam [30:46]

• Wayne in NY: Reports scammers adding fake events to Google Calendar containing scam links.
  • Clark (and Co-host): Emphasize: Don’t click links in calendar invites, even if it looks legit. Scams now include invitations with links carrying malware or spyware. Always verify invitations with the sender directly.

Notable Quote:

“Do not click on links in things you receive, even if you think you know the sender.” — Clark Howard (31:45)

C. Scam Insurance (Susie Orman Endorsement) [33:04]

• Charlie in Washington: Asks about the value of scam insurance policies.
  • Clark: Skeptical. These are new products, often with pages of fine print and little track record. Not currently recommended; strong caution advised. The best “insurance” is proactive involvement, especially when helping aging loved ones avoid scams.

Notable Quote:

“This is something I cannot recommend because you just don't know if it’s real protection or pretends to be real protection.” — Clark Howard (33:22)

---

Memorable Moments & Quotes

• “You stink worse than Lutefisk in the open summer sun.” (Listener Mitch in Minnesota, 03:55)
• “Total cost of ownership is really, really key with electronics.” — Clark Howard (15:10)
• “At best, they're your frenemy.” — Clark Howard on insurance companies (24:22)
• “If you were upset about my eating habits, go to clark.com clarkstinks.” (19:44)
• “Homeowners insurance claims should not be made for smaller things.” — Clark Howard (25:22)
• “The most important thing, the best insurance policy you can have...is for you to stay involved, be nosy, just talk about things.” (34:00)

---

Structure and Flow

• [00:50–20:02]: Clark Stinks segment—criticisms and Clark’s unfiltered responses
• [22:54–28:22]: Homeowners insurance warning (“free roof” scams and the right way to use your insurance)
• [28:27–end]: Listener Q&A on banking rates, scam insurance, calendar scams

---

Summary

Clark Howard’s signature “Clark Stinks” segment sets the tone for an episode full of humility and practical wisdom, as he willingly takes constructive criticism on everything from prescription savings to Apple products. The advice is grounded in real-life stories and balances cost-saving strategies with caution, especially when it comes to insurance and fraud prevention. Notably, the show underscores the importance of using insurance solely for major losses, being a vigilant protector of your own (and your family’s) financial well-being, and always questioning “free” offers that could cost you much more in the long run.

---

For more actionable tips and resources, visit Clark.com and ClarkDeals.com.

Transcript

[Indeed Sponsor]

When you need to build up your team to handle the growing chaos at work, use Indeed Sponsored Jobs. It gives your job posts the boost it needs to be seen and helps reach people with the right skills, certifications and more. Spend less time searching and more time actually interviewing candidates who check all your boxes. Listeners of this show will get a $75 sponsored job credit@ Indeed.com podcast. That's Indeed.com podcast. Terms and conditions apply. Need a hiring hero? This is a job for Indeed Sponsored

[Clark Howard]

jobs now at McDonald's. A McDouble is $2.50, so you can get your gym gains on or just get lunch for only $2.50. Get more value on the under $3 menu.

[Commercial Announcer]

Limited time only. Prices and participation may vary. Prices may be higher for delivery.

[Clark Howard]

It's great to have you here on the Clark Howard Show. You know, our mission is to serve you with advice and information that empowers you so you make better financial decisions in your life. It's Friday. You know what that means. I'm feeling ready to learn some hard lessons in this week's clarkstink segment. Also in this episode, we've heard from so many clarkies about a knock at the door. It's from a roofer who's offering a free roof inspection.

[Clark Howard's Co-host or Producer]

I've gotten so many of these.

[Clark Howard]

You have?

[Clark Howard's Co-host or Producer]

Oh, yes.

[Clark Howard]

I'm going to tell you why. That free roof could cost you big time. But right now, it's time to find out where I messed up big time in this week's Clark Stink.

[Clark Howard's Co-host or Producer]

I should have never encouraged you to speak.

[Clark Howard]

You almost think I'm pretty stupid.

[Clark Howard's Co-host or Producer]

You should be ashamed of yourself.

[Clark Howard]

Well, maybe I'm wrong.

[Clark Howard's Co-host or Producer]

Maybe I'm wrong.

[Clark Howard]

Maybe you're right, pal.

[Clark Howard's Co-host or Producer]

By the way, I meant I've gotten so many solicitations, not maneuvers.

[Clark Howard]

Okay, okay. I didn't take it, though.

[Clark Howard's Co-host or Producer]

I know. I just thought, well, yeah, Kelly in Wisconsin says, I would love to say you smell like roses and petunias, but no one could be completely perfect. I know you've mentioned saving on prescriptions, but I think you've forgotten one thing. Ask the doctor or nurse about manufacturer savings programs. My doctor was able to sign me up for one that will cover up to $20,000 a year for my prescription. It is a major lifesaver, Kelly.

[Clark Howard]

Thank you very much. And of course, I know about the manufacturer discount programs. I've used them before myself. To neglect to mention it is clearly a terrible omission on my part. We've covered it. We have it on clark.com but I got so hyper focused talking about how to save on prescriptions routinely, I forget to mention the manufacturer programs. And thank you so much for bringing it to your fellow listener and viewers attention.

[Clark Howard's Co-host or Producer]

Donna in Georgia says not a Clark stinks, but I heard a listener talking about autofill with her credit card online. After two incidents of fraud, I discovered that yes, every piece of info was in fact auto filling in my browser and all someone needed was my email to use my card. I found the solution was to go into my Chrome settings and toggle off on the autofill for the security code. Yes, the security code was automatically filling in. I hope that helps someone.

[Clark Howard]

Thank you. All right, so I use autofill with Google for credit cards, but this is where it autofills the two factor authentication as well.

[Clark Howard's Co-host or Producer]

Not two factor, but it will your last three digits of your card or four if it's an Amex. You can choose to have that autofill with your card or not. So then you have to write it in each time.

[Clark Howard]

I didn't even know I could have that autofill.

[Clark Howard's Co-host or Producer]

Would you?

[Clark Howard]

No, no. But I didn't know I could do that.

[Clark Howard's Co-host or Producer]

Okay. Mitch in Minnesota says you stink worse than Lutefisk in the open summer sun. You missed main reasons. Electric vehicles are more expensive to insure. When an EV gets into in any accident, much greater than a fender bender, repair shops do not want to take the responsibility for the integrity of the battery system since it's difficult to determine and can cause considerable dange. So EVs get totaled. This is much different from an ICE vehicle.

[Clark Howard]

There are so many issues when an EV is in an accident. It's crazy. I mean, because you have very few shops that want to go to the expense of being electric vehicle repair certified as body shops, because body shops are busier than they can handle anyway. And the complexity of electric vehicles and all the rest mean that it's more expensive. And you did bring up a really valid point. A lot of insurers just flat out, just total them out with relatively minor damage. This is a teething problem, learning curve kind of thing. And what will happen is electric vehicle automakers will do what Tesla has done and they will put in their own repair shops, body shops where they repair vehicles after an accident because they're the manufacturer, they know how the systems integrate and they know how to properly repair one. Or say, oops, this vehicle's done. And they work that out with the insurance company adjuster. But the insurance premium difference is with some insurers, unbelievably higher. And you got to know this and factor this in for an electric vehicle versus a gas engine. Did I mention that my daughter switched to Tesla insurance on a recent show? USAA cut our costs by more than 2/3.

[Clark Howard's Co-host or Producer]

That's great if you're in a state where that's allowed. Right. Where they do insurance. Marvin in Wisconsin says when you talked about security cameras with no subscription fee, you told us about them, but you didn't give any names. That was a common one. Also, Scott in New York says your piece on security cameras left out some really important details. Yes, many cameras come without subscription. Fe these fees are almost always for cloud storage of your recordings. Some cameras do offer free cloud storage of very short clips, 10 seconds or so for short durations, a week to 10 days. Cameras can be used for real time monitoring with no storage. Or many can use SD cards for local storage of your recordings. The cloud storage is for peace of mind and retaining evidence. If your camera is damaged in something, like a fire or stolen during a robbery, all your recordings are gone, leaving you no evidence of what happened.

[Clark Howard]

Thank you both for your post. All right, so I don't remember why I didn't talk about various brands that, that are sold without a security fee. And I don't. I'm not prepared to. To name brands right now. So I guess we can do that.

[Clark Howard's Co-host or Producer]

We'll put that on clark.com.

[Clark Howard]

okay.

[Clark Howard's Co-host or Producer]

Yeah, we'll put a link to it in the show notes.

[Clark Howard]

Right. So this is how I do it. I have WYZE cams. Wyze wyze, which historically were the cheapest ones, which is why I had WYZE cams. And I can see live what's going on on camera. But then the cameras have SD cards. So any criminal who's breaking in is going to see those cameras and they're just gonna throw them away or steal the SD card and then there's nothing there. But cloud storage is how all the camera company subscriptions work. That's how they all make their money. They sell you cloud storage at a big markup. They don't even care if they lose money on selling you the camera initially because the money is all made on the cloud storage subscriptions.

[Clark Howard's Co-host or Producer]

Andrew in Florida says I'm a longtime clarkey, but Clark omitted several things when discussing studying abroad in college. When you first broached the topic, you sounded dismissive of American students going abroad as just another vacation or excuse for partying. But this could not be further from the truth, which was surprising coming from Mr. Travel it's important to let the listeners know studying abroad can be much more affordable than some may think. Colleges and universities actively encourage students to do a semester abroad. There are tons of scholarships and financial aid programs available for students even at community colleges. There also may be dedicated staff to help facilitate, facilitate this personally. Studying abroad has been one of the most enriching experiences of my life. Thank you for all that you do.

[Clark Howard]

Thank you very much. Only one of my three kids did study abroad and it was fantastic for her. But I want to talk about another angle, and that is American students that are going after high school to university in other countries, particularly in Germany and in Great Britain. We have friends who have one kid who's in Scotland at college and another who's in Wales, and they are paying a fraction of what a private college would cost in the United States and pretty much equivalent to about in state tuition at a state school. And so it's an opportunity to have a complete foreign cultural immersion for four years and also potentially save money.

[Clark Howard's Co-host or Producer]

Greg in California says Clark, Clark, Clark. And the smacking my head emoji. Recently you said you pay all of your credit cards directly through the credit card company websites and not through your bank bill pay. You went on to say people should do the same and set up autopay. Where do I begin at? First, auto pay is a great idea, but if done externally and you're not paying close attention and the money isn't there, you you not only missed your payment, now you pay a junk fee for overdraft. Your bill pay can be set up to avoid payment when money isn't there. For people who are flush with cash, this is not a problem. People living on the edge, this could be a disaster. Second, now you've given outside entity access to your account and that may work most of the time, but when there's a problem, it's nearly impossible to turn off. I have my credit union get all my bills and it automatically sets up minimum payments at my discretion and control. I go in and simply change the amount to the statement balance. Easy peasy. Anyway, keep up the good fight.

[Clark Howard]

Thank you and all right, so Greg, this is one of the most difficult areas I talk about. All right, so your point about if you set up where it's automatically at least going to take minimum payment, that's fine. If it's just for flakazoids like me that might forget to pay something or I travel a lot, whatever, and it's not an issue of cash flow. Cash flow, you're completely right. It's the worst possible scenario when somebody sets up automatic payment with, let's say a credit card company or somebody you owe money to. You set up automatic payment and there's no money there. And so you get bounce payment charges, insufficient funds charges, and you get late fee from whoever you're paying. It is a financial nightmare. All true. Now, I used to use traditional bill pay at my financial institution. My case, it was Charles Schwab and paid my bills from it. And I had some problems with it. And so I chose to start paying bills directly at the websites. And like as an example with Schwab, a tax payment went missing and I got hit with 200 and something dollars in junk fees. Oh, and I thought I was fine with, you know, the Schwab guarantee. So I submitted, they said, nope, this doesn't apply. Oh, that was out that money. And that was when. I've never told that.

[Clark Howard's Co-host or Producer]

No, I didn't know that.

[Clark Howard]

Yeah.

[Clark Howard's Co-host or Producer]

Surprised you didn't like come in and pass out talking about that when it happened. That's brutal.

[Clark Howard]

Well, you know, I never want to settle personal.

[Clark Howard's Co-host or Producer]

Right, right, right.

[Clark Howard]

But I want, you know, that's what moved me to realizing even though there's some risk with how the rules are set up on ach, when you set up to pay things directly at a credit card website or when I pay my taxes now, I go straight to the taxing authority's website and pay there and all that. That there's a layer of protection that you may be giving up paying at the vendor's site. But I've decided that that is the better way. Your point specifically, Greg, on the setting up where there's an automatic, at least minimum payment made. Point well taken. If somebody lives close to the edge financially, my advice is bad advice.

[Clark Howard's Co-host or Producer]

Jimbo in Texas says Clark has said on several occasions that Apple devices are too expensive. It's the total cost of ownership. Mr. Howard, you talk about cars, SUVs and trucks. In terms of TCO, why not phones, tablets, laptops and desktop computers? Yes, I pay a little more upfront on Apple devices, but I know I'm getting a quality device that will last many times longer, require much less support, need fewer security tools, consolidate my ecosystem, retain more value and boost productivity. I've experienced these myself. I'm an IT professional and I saw my customers experience and I comment on this as well. If you don't believe me, check out the many studies on the subject. Forrester found that Max TCO is $547 lower over five years and has a 186% ROI compared to PCs. Apple devices perform better too. For example, iOS aggressively prioritizes foreground tasks by freezing background app, limiting background processes, controlling multitasking, and preventing apps from hogging CPU and battery. Even devices with fewer CPU cores and RAM outperform competition with higher specs for those items. Apple also designs and controls the CPU and gpu, the os, the application frameworks, power management, storage, performance, and security enclave. Apple engineers integrate all these things together so they can and do optimize these components. The end user experience reflects all these things. Their devices just work, have less issues, and are well integrated with other Apple devices overall, making my computer life easier. I have three iPhones, three iPads, and one MacBook. I'll be adding more, but not anytime soon as these keep on ticking. You've helped me in so many ways. Thank you for all you do. Please keep it up.

[Clark Howard]

Thank you very much. And I don't know which of my three kids use Jimbo as a pseudo name. Jimbo. I have the MacBook Neo as I talked about, I guess two months ago. It's very impressive and I can see it being useful in my life for years to come. And it was so affordable. So, you know, for me you're completely right. Total cost of ownership is really, really key with electronics. Because of the obsolescence built in. I have a automatic bias towards the upfront cost, and Apple may well be an exception to that. Did you hear me say that?

[Clark Howard's Co-host or Producer]

I heard it. We're gonna save that, all right? We're gonna go to ED in California and finish up here. Dear Clark, you, don't stink. In fact, you're one of the few podcasters who don't sell out their audiences by doing commercial endorsements. And that's something I really appreciate. I have what will probably be a controversial Clark Stinks. You've talked many times about your charitable work for Habitat for Humanity, but are you familiar with the concept of toxic charity? I understand that you enjoy your work with them, but have you ever considered they may do more harm than good? Habitat takes jobs away from home builders, and while I understand it requires sweat equity, it still relies on charity from the organization and volunteers. I bought a condo in San Francisco, not with the help of a charity, but by using your principles of saving and living below my means. It took 16 years, but now I own my own place. Clark, I love your charitable intentions, but couldn't you help many more people if you spent that time, for example, producing videos that could be shown in high schools around the country, educating people on the basics of how to manage money so they can buy a house on their own.

[Clark Howard]

First of all, Ed, congratulations to you. All the hard work you went through in one of the most expensive markets in the United States, maybe in the world, you were able to buy a home in California. That's fantastic. So Habitat for Humanity builds homes for the part of the housing market that builders are not interested in. In fact, we have a lot of volunteers that are builders because they love doing it. We love having people who work as a home builder in the construction trades because they know what they're doing more than we do as generally clueless volunteers. But Habitat is a ladder onto the American dream of homeownership. And the buyers of those homes are getting the homes more affordably because of the volunteer labor, but also because that market is not one that builders are interested in serving. The cost of land, materials, and labor has forced home builders out of even building for the middle class and building for the top 30% of income earners in the US generally. So habitat serves a market that would not be served otherwise. And I am so thankful to the volunteers who come out and build an affordable home. I'm also proud of these homeowners who have to make a mortgage payment every month like anybody else. They don't pay, they don't stay. And through thick and thin in their lives getting that payment done and ultimately having that day when they're mortgage debt free. I had a Habitat homeowner come up to me just the other day. And for those of you who hate how I eat, I was in a McDonald's and said, I'm at magic five. I didn't know the expression magic five. Do you know what that now five mortgage payments left, they were mortgage debt free. I'd never heard that called Magic five. But anyway, she was just bursting with joy after decades that she was getting ready to make her final mortgage payment and would own her home 100% free and clear.

[Clark Howard's Co-host or Producer]

That's awesome. So, by the way.

[Clark Howard]

Yes.

[Clark Howard's Co-host or Producer]

Last night at tennis practice, one of my teammates said, oh, I met your boss at a McDonald's. It's either McDonald's or Costco every time. Go ahead. Sorry, carry on.

[Clark Howard]

See, we're going to get the. Clark stinks about that. So if you were upset about my eating habits, go to clark.com clarksteaks Speaking of which, the new McDonald's pricing went into effect and I'm having to pay more.

[Clark Howard's Co-host or Producer]

Oh, wow.

[Clark Howard]

Yeah. Even with the app coming up ahead, somebody promises you a free roof. Do you say yippee or do you run the other way? I'll fill you in.

[Commercial Announcer]

This episode is brought to you by AT and T Business. For business owners, connectivity is key. If you are starting your business today, that would be your first concern and your first decision. Reliable connectivity is essential to launching whether you're local or national. For a business owner, it's a decision that pays benefits every day and in every aspect of your operation. AT&T business is a reliable provider for small business owners. For Small Business Month we celebrate small businesses by helping them run better. This means reliable uptime, easy switching smart communications powered by AT&T Business Built to work Get AT and t [e-mail] this episode is brought to you by AT&T Business. For business owners, connectivity is key. If you are starting your business today, that would be your first concern and your first decision. Reliable connectivity is essential to launching whether you're local or national. For a business owner, it's a decision that pays benefits every day and in every aspect of your operation. AT&T business is a reliable provider for small business owners. For Small Business Month we celebrate small businesses by helping them run better. This means reliable uptime, easy switching Smart communications powered by AT&T Business Built to work Get AT and t [e-mail] Investing with Schwab is like spending a Saturday at a great farmer's market. You can fill your reusable tote with a bit of everything. Maybe you go for some free range self directed investing or perhaps you pick a few farm fresh trades while you peruse. You can even get help from a dedicated advisor. That's full service, wealth management mix, match and change your mind whenever you want. Because at Schwab you can invest your way no matter your goals or appetite for investing. Schwab has everything you need all in one place. Visit schwab.com to learn more. Investing with Schwab is like spending a Saturday at a great farmer's market. You can fill your reusable tote with a bit of everything. Maybe you go for some free range self directed investing or perhaps you pick a few farm fresh trades while you peruse. You can even get help from a dedicated advisor. That's full service, wealth management Mix, match and change your mind whenever you want. Because at Schwab you can invest your way no matter your goals or appetite for investing. Schwab has everything you need all in one place. Visit schwab.com to learn more.

[Starbucks Sponsor]

Tomorrow morning is knocking. Stock your fridge now. How about a creamy mocha frappuccino drink or a sweet vanilla smooth caramel maybe, or white chocolate mocha. Whichever you choose, delicious coffee awaits. Find Starbucks frappuccino drinks wherever you buy your groceries.

[Clark Howard]

So I mentioned at the top of this YouTube show and podcast that a knock on the door is something that maybe not the opportunity it appears to be. When a roofer says, you know, we droned your roof or whatever they say, and there's looks like there's hail damage up there, how'd you like a new roof for free? Yeah, that's the pitch. And it spread like a plague in Florida till the legislature made some changes about it. And it is an abuse of your insurance where you think you're getting one over on the insurance company by replacing an older roof for free or nearly free by claiming this damage, this mysterious damage. And there are times that people do get hit by hail on their roof and that's when you would contact your insurance company and say, hey, you know, we had a hail storm come through, damaged our cars, damaged our house, an adjuster comes out and looks at it. But the thing is, you got to know that making insurance claims is pretty much a no until you're proved into being a yes. What do I mean by that? Homeowners insurance is unstable as an industry. The insurance is now an adversarial relationship with you insurance companies, no matter what they feel good ads say on TV or the funny ads on tv, they are not behaving as your friend today. They are not necessarily your enemy. At best, they're your frenemy. Because insurers are now in the business not of selling broad insurance, but they are in the business of risk management. And that's why more and more things are now excluded from your homeowner's insurance. And the ugliness of it is that if you make a small claim, not saying that a roof is a small claim, but if you make a small claim, the next thing you're likely to see is a cancellation notice or what they call it in the insurance industry. Because why would you call something what it is? They call it a non renewal notice that you're out and you're out with. There's an industry database that shows a recent claim, which means that other insurers aren't really that excited about having you because you had a recent claim. So let's go back to basics. Homeowners insurance claims are something that should be there for a legit, serious, significant loss. Homeowners insurance claims should not be made for smaller things. And having said that, if You're a longtime listener or viewer. You know what I'm going to say next. If you're like, what's he going to say next? You want to raise the deductible on your homeowner's insurance as high as you can stand, or if you still have a mortgage on your home, as high as your mortgage lender permits you to do. I want you to completely rethink homeowners insurance as something for catastrophes only. As someone who owns a home in the state of Florida, I will tell you that insurance is a pain there and the deductible we have would make you pass out, but it's pretty much a requirement having a property in the Florida market. So I've gotten really used to when something happens, we just have to pay for repairing it and that this is the hard thing. So I'm telling you that with homeowners insurance, you want to first be your own insurance company and only if and when a claim is backbreaking or clearly obvious, something that you should be contacting the insurer about and having them be your partner, that friend of me of yours, to do what they will do past your deductible. You want to think first, no, am I even going to involve insurance? Or yes, I will. But then that brings the other side. So you're going to save money by raising that deductible until something goes wrong. And when something goes wrong, if it's major, before that happens, you want to make sure that you have sufficient total coverage. So let's say you have a bigger deductible but you don't have sufficient coverage if it was catastrophic loss to rebuild your home or replace your home. This is a gap I see again and again where people don't have enough coverage. So make sure your home is adequately insured past your deductible. And people like me who own a home in Florida, we're just plain dumb. I do love the beach, Krista, but it's an expensive adventure.

[Clark Howard's Co-host or Producer]

I know, but you love it so much. Okay, we'll go to questions.

[Clark Howard]

I'm ready.

[Clark Howard's Co-host or Producer]

Joel in South Carolina says for online savings accounts that promise a higher interest rate than local banks or credit unions, everyone talks about who has the best current rate, but no one talks about the sustainability of these rates. I refuse to chase the interest rate of the month. So how consistent are interest rates after the introductory period? And are there any institutions you find that are reasonably steady in their long term rates? I'm currently getting around one and a half percent in my money Market account.

[Clark Howard]

Okay, this is a great question, Joel, and you already use the terminology, but different than I would use. So a money market account is an account from a bank or credit union. A money market mutual fund is the brokerage equivalent and their rates are very consistent based on whatever is happening with market interest rates. So if you were to go to particularly one of the discount or online brokers, you're going to earn consistently the highest rates in a money market by buying one of theirs. Then you're going to earn even with an online bank. However, a lot of people feel uncomfortable doing money market mutual fund accounts because there's no FDIC insurance. The risk with these is so close to zero, it's not even quantifiable. But if it makes you nervous at all, take a little teeny lower yield from a brokerage by going into a government obligation money market fund. Money market mutual fund. There would be a U.S. treasury fund or a government obligation fund, that kind of thing. And that's the place where you'll consistently get the best interest rates over time. And here's the other thing. Would you rather have FDIC insurance or would you rather own a direct obligation of the federal government like a U.S. treasury? I would say that if people are worried about, well, that doesn't have FDIC insurance, having a US treasury money market fund is maybe a whisker more secure than FDIC insurance.

[Clark Howard's Co-host or Producer]

Wayne in New York says. I'm not sure if you've mentioned this on the podcast, but I've been noticing a new scam lately. Scammers will add an event to your Google Calendar containing links or a phone number for you to renew, react, et cetera. Please let your listeners know not to click links or contact these fraudulent sites. Thanks for all you do. Keep up the good work. I recently was. Look, I use a Google Calendar. My work calendar had an invitation on there that just automatically showed up because somebody. And I think the invitation, I don't know, I missed it somehow in my email, but I'm sure it must have come and. Yeah links and everything in there. So I deleted it.

[Clark Howard]

Well, several of us in the company had this happen to us. So I think we've. Somebody's been hacked.

[Clark Howard's Co-host or Producer]

Oh, I don't know. I think they can just. They just have to invite your email address. There's no hacking. It's just use your.

[Clark Howard]

You don't think that it happened to so many of us? No.

[Clark Howard's Co-host or Producer]

All right, so it's very, very common now.

[Clark Howard]

And what you said that's so important, Wayne, is what we've been saying over and over again, do not click on links in things you receive, even if you think you know the sender. Yeah, you don't want to click on

[Clark Howard's Co-host or Producer]

links or links you see in your calendar. Now they're going to automate. An invitation automatically shows up. We talked about the invitation issue with the fake Evites and punch bowls and stuff.

[Clark Howard]

Got another one yesterday.

[Clark Howard's Co-host or Producer]

Oh, my gosh. I got one right after you talked about it, too.

[Clark Howard]

Yeah. So for those of you who missed that on our podcast and YouTube show, there's a scam now where people are downloading very dangerous spyware viruses onto your phone or your laptop by sending you a party invitation. And you click on the link for details. And what you're getting instead is you're getting this deadly virus you put on your device that basically bricks your computer. Doesn't brick it, but you need to. You need to totally factory reset after you get one of these phony party invitations. Here we're talking about the Google Calendar. Same risk. So know that opening up links has become an entryway for criminals, hackers to cause real havoc in your life.

[Clark Howard's Co-host or Producer]

And if you get an eviter invitation, even if it's. It looks like it's from someone you know, email them separately and ask if they sent you an invitation before you open it. Charlie in Washington says, is scam insurance worth it? Susie Orman recently started a scam insurance offer. It seems like it goes beyond identity theft insurance.

[Clark Howard]

Okay, this is a great question. I. I adore Susie. She is such a fun person, you know, when we've seen each other in the past. But this is not her product. Susie Orman does endorsements, which is something I don't do. And so this is a product of one of the security companies is hers. Nord. Nord. So she's just doing an endorsement. And this product promises in return for paying annual fees or subscriptions, that up to $10,000 in expenses from money stolen from you in a scam, you know, if you get conned, and it's geared towards people trying to protect their parents, grandparents, that kind of thing, that up to $10,000 will be reimbursed. The terms and conditions on it go on page after page after page after page. And the problem is there's so many legal requirements, so many contractual requirements that until we have any real track record hearing from people, and this is not the only product that submerged in the last year that is supposed reimbursement for people who get scammed out of money, until we see any track record, this is something I cannot recommend because you just don't know if it's real protection or pretends to be real protection. And I know Susie really well. She would not, not unknowingly recommend something that would not be good for you. She would not knowingly. I said that backwards. But from looking at the terms and conditions, I am a bit of a skeptic about this at this point. This is going to be one that I'm going to have to see real results from before it be something I'd say, yeah, that would be worth doing. The most important thing, the best insurance policy you can have as an adult child watching out for a parent, aunt, uncle, grandparent, older family friend, is for you to stay involved, be involved, be nosy, just talk about things. Hey, gosh, you're not going to believe what happened the other day to so and so and you, you almost like gossip your way into the conversation. Says you need to be really careful about these people. You tell an example of can you believe that you keep those lines of communication open. At some point, if you have a parent who is starting to have some, some decline along the way, you're going to have to really aggressively get involved to protect them and protect their money. More important than whether you want to buy a scam insurance policy. But thank you for bringing it up, Charlie, and it is something that we are actually watching. And thank you so much for joining us on today's podcast. I hope that this weekend is a fantastic weekend for you as we move closer and closer to the longest day of the year for daylight next month. Because, you know, I love daylight and winter. Those short days, I just don't get that thing. But know what we're all about for this weekend and every day, you being empowered with knowledge so you can save more, spend less and avoid getting ripped off.