Home Insurance Daily Journal

by mheo soriano

Plan Ahead for Construction:

If you plan to build an addition to the home or other structures close to the home, you should consider the materials to be used. For example wood structures will cost more to insure because they are highly flammable while cement- or steel-framed structures will cost less because it is less likely to catch fire or get damaged by weather conditions.

You should, also consider the insurance costs related with building a swimming pool. In fact, structures that are potentially injurious can make annual homeowners’ insurance costs up by 10% or more. Although it is not much of a deal, it is still something that to be considered in connection to the purchase or construction.

• Get a home energy audit every couple of years with your power company to find ways to cut costs.
• Check with your utility company for rebates whenever you install energy-saving equipment.
• Add more energy-efficient insulation to your attic, with the appropriate R-value, or resistance to heat flow, for your climate and the type of heating in your house..
• Turn down your home thermostat two degrees and save 24 kilowatt hours a month. It might not sound like much, but it adds up.
• Buy a programmable thermostat, especially if your home is vacant most of the day. Set it to turn on a half hour before anyone arrives home.
• Adjust your thermostat to a comfortable temperature and wait. Turning your thermostat up or down dramatically wastes energy and increases your heating costs.
• Lower your hot water thermostat 10 degrees, but no lower than 120 degrees. You’ll still get all the hot water you need and save 25 kilowatt hours a month.
• Fix leaky faucets — one drip a second is 20 kilowatts a month.
• Invest in weather-stripping kits if you’ve got drafty doors.
• Trade your standard candescent bulbs for compact fluorescent bulbs. They are more energy-efficient, last for years instead of months, consume little power and generate little heat.
• Turn off your computer when not in use, or use the energy-saving “sleep” mode.
• Seal energy leaks. Caulk over cracks and small holes around windows and exterior walls. Look carefully around plumbing pipes, telephone wires, dryer vents, sink and bathtub drains and under countertops.
• Participate in your power company’s special energy-saving program. Some programs shut down electric appliances for short bursts of time during peak hours. You hardly notice the difference — except in your bill.
• Buy major appliances that sport the “Energy Star” sticker. That shows the appliance meets or exceeds standards set by the U.S. Department of Energy and the Environmental Protection Agency.
• Consider a front-loading washing machine. They use 50 percent less energy and one-third less water. Plus, they remove far more water in the rinse cycle, and that translates into big savings in dryer time.
• When building a home or replacing a roof, select a roof based more on energy efficiency than on how it looks. Light-colored roofs, such as white, galvanized metal or cement tile, do the best job of reflecting the sun, and cool quickly at night.
• Landscaping with the right mix of trees and shrubs can lower your energy bills by blocking winter winds or the summer sun.

Are you looking to increase the value of your home while staying within your budget? Full remodels, even for one room, can cost many thousands of dollars, and while the cost may be worth it if you’re planning on staying put, most remodeling projects increase your home’s value by at most 80 or 90 cents for every dollar you invest. Thus, if you’re looking to sell your home right away, or if you’re buying and selling a home for profit, you want to keep your improvements simple and cheap. Here’s how.

1. Spruce up the yard. Get rid of trash and yard waste. Keep your lawn in good condition and mow it. This includes using a weed whacker to get in the tight corners and along the edges of sidewalks and the house. Trim the hedges, get rid of weeds, and mulch the flower beds. If you don’t have much to work with, plant some flowers or install some landscaping appropriate for your home and climate.
2. Eliminate clutter inside the home. If you’re going to be showing the house to potential buyers, get the house organized and get rid of clutter or put it in storage. A nice, tidy house will seem larger and more elegant.
3. Wash walls and windows. It’s a lot cheaper to wash walls or siding than to repaint or replace siding, and many times a good cleaning will make your home’s finishes look good as new. Pressure-wash your home’s exterior, and wash interior walls. Clean your windows so that you can’t tell they’re there.
4. Add a fresh coat of interior paint. Sometimes you just really need to repaint, but you can do it yourself relatively cheaply on interior walls. First, patch up any holes, no matter how small. To get a silky smooth finish, apply a coat of primer. After the primer dries, lightly sand it with a fine grit sandpaper (220 grit). Apply the first coat of latex paint, and then lightly sand that layer also. Wipe the walls down with a damp cloth after each sanding session. Then apply the final coat of latex paint.
5. Put up fresh curtains and blinds. Blinds don’t cost much, and curtains can be cheap also. Over time, the sun fades the colors from your blinds and curtains, so new ones will make a better impression than old ones.
6. Clean up the carpet. You can shampoo or steam clean your carpets, or you can use a dry cleaning system (available from various sources, such as Oreck), which requires no water or steamer rentals, and which dries instantly and kills virtually all mold and bacteria. Apply according to the manufacturer’s instructions, and then vacuum. If all else fails, get a professional to do the carpets for you. You’d be surprised how much better your carpet will look after a good cleaning.
7. Install modern light switches and outlets. Some of the new style switches can be easily installed using the wires already running to the old switches. Just be sure to turn off the power to the room or entire house before doing any work. The new outlets look nice, and give the impression that the electrical wiring in the house is newer than it really is. Dimmer switches are especially desirable, although this can be illegal if the outlets are of three prong type while the wiring is two prong. It also could lead to trouble if the buyer’s home inspectors catches on.
8. Refinish kitchen cabinets. Outdated or worn cabinets can bring the whole kitchen down, but refinishing them is relatively cheap and easy to do. If you have a dark or small kitchen, make it look larger and brighter by using a lighter finish on the cabinets.
9. Up the wattage of your light bulbs to make things even brighter. Just make sure you don’t exceed the maximum specification for lamps and other lights. (You could use compact florescent light bulbs in order to make the room brighter without getting new fixtures, plus they save electricity meaning they save you money.)
10. Get a professional floor plan company to check on your home’s square footage, which is sometimes higher what your county assessor has recorded. Because homes sell for hundreds of dollars per square foot, even a small increase will more than pay for the service (typically a few hundred dollars). You’ll be able to list your home for more money, but at the same price per square foot.
11. Wood Trim and Cornicing are a cheap and easy do it yourself idea that can add tons of “WOW” factor to the look of your home. Simple ceiling trim and armchair railing are the easiest and most typical upgrades found in newer homes. To make an even bolder statement, paint the walls a neutral, flat color and paint the trim a high gloss white.

Source

Fixed Mortgage Rates

Your mortgage rate may never be exactly what you want — free — but its stability may be a close second. When you’re requesting mortgage quotes, you will come across two different types of mortgage rates. Adjustable mortgage rates offer fluctuating mortgage rates and fixed mortgage rates offer a stable, consistent mortgage rate every month. Both have pros and cons, so this decision is one you should research thoroughly.

Fixed rate mortgages are a good idea if you like to know exactly what your expenses will be month to month. A fixed rate mortgage will offer you a mortgage rate that will be the same throughout the term of the mortgage or home loan. Fixed rate mortgages are possible with any type of mortgage, including second mortgages and home equity loans, bad credit mortgages, mortgage refinancing, first mortgages, and home loans, but if you’re applying for a VA loan, the Veterans Affairs office agrees to help you secure a fixed rate mortgage as a benefit of being eligible for the VA loan program.

Even if you’re not pursuing a VA loan, a fixed rate mortgage is still an option. It’s a good idea to shop around for a mortgage quote to be sure you can find a lender or mortgage company that will offer you the best fixed rate mortgage you can get. If you already have a mortgage and are looking to refinance it, you can work with your lender to obtain a lower rate fixed mortgage, whether you currently have a fixed rate mortgage or an adjustable rate mortgage. When you’re looking to refinance your mortgage, you’ll be able to get a quote to see if you can improve your mortgage rates. A stable fixed rate will probably be a good idea if you’re wary of market forces or if you’re content knowing that your mortgage rate cannot down, but also cannot go up if the market changes.

Home Equity Loans

Mortgages come in many forms. The type of mortgage or home loan you apply for may depend on why you need the mortgage in the first place. If you already own a home, home equity loans are a great option if you need money and want to benefit from the value of your home. A home equity loan or second mortgage is a way to unlock that money that is, as they say, “in the walls” of your home. If your home has appreciated in value since you purchased it, or there is a substantial difference between the amount you still owe on your mortgage and the value of your home, a home equity loan may be a great way to unlock this money if you have a considerable expense to pay off. There are many benefits to applying for a home equity loan:

• Even if you already have a mortgage, you can borrow against the amount of money your home is worth minus what you still owe on the first mortgage. Some lenders will even let you borrow over 100% of this difference.
• You can use the money from your new home equity loan to make home improvements, pay off credit card debt, or pay the costs of tuition, and medical bills. How you use this money is not usually restricted.
• Home equity loans and second mortgages are generally for a much short period of time than traditional mortgages.
• In many circumstances, the rates on home equity loans are tax-deductible.
• You have two options for receiving the money from your home equity loan — an open end loan or a closed end loan. An open end loan is a home equity line of credit (HELOC), which will let you decide when and how much money to draw from the equity in your home. A closed end loan is an equity loan that offers you all of the value of the equity in a lump sum of money at the beginning of the loan term.
• Many home equity loans and second mortgages are fixed rate mortgages (FRMs) and are for about 10-15 years.

Pursuing a home equity loan or a second mortgage is an important and serious decision, so it’s important to think it through before signing off on it. Be sure to discuss with your lender or mortgage company what course of action is best for your situation. Many fees are involved in getting your home appraised for the home equity loan process, so this and the other fees are to be taken into consideration before pursuing this option.

Home Insurance

As a homeowner, you probably care for your house and would like to protect it, as it holds your family and all of your belongings. Also, you may consider it an investment. If something were to happen to your house, whether a fire, natural disaster, or burglary, having homeowner insurance is a good plan. With a homeowners insurance policy, you will be able to recoup your expenses from any damage or loss in your home.

Homeowners insurance is always a good idea, as homes cannot avoid damage. It’s a good idea to get several home insurance quotes to find out what sort of policies and insurance rates you can get for your property. Although you are protecting material things with this insurance, you are also protecting your financial assets and your family. If your roof is damaged because of a storm, homeowners insurance can help to pay for the costs. Natural disasters are so difficult to predict that if there is any risk at all in your geographical area, homeowners insurance becomes a necessity for your house.

You can get many quotes for homeowners insurance online. Home insurance quotes will help decide what sort of coverage your home needs, depending on where you live and what type of home you live in. This is an important decision that you will have to discuss with your homeowners insurance company and homeowners insurance agent if you are unsure of what sort of homeowners insurance policy to purchase. This important part of homeownership should not be overlooked.

by mheo soriano

Have an Eye for Multiple Policy Discounts:
Some insurance companies dish out a 10% discount or more to their clients who maintain other insurances under the same insurance company. You should try considering getting a quote for other types or insurance from the same company that provides your home owner’s insurance, by doing this there is a high chance of saving dollars from policy premiums.

Increase Your Deductibles
Like health insurance or car insurance, the higher the deductible the you choose, the lower the annual premiums. But the problem with choosing a high deductible is that are you are most likely pay for the minor problems.

by mheo soriano

One of the ways to lower your annual premiums is to establish a security system such as a burglar alarm that is connected to a local police station. The discount is usually about 5%. In order to claim the discount, you usually have to give a proof of central monitoring in the form of a bill or a contract to the insurance company.

Smoke alarms are also essential. Putting up smoke alarms may cut 10% or more from the annual premiums. Even though it is expensive you will benefit from the deductions, plus a good home security system will add safety to your household as well.

Cast a wide net

First, check what’s out there. Get quotes from at least four carriers.

Try a free database such as InsWeb, which offers quotes from up to 8 insurers, or Quicken InsureMarket, which provides up to 16 quotes. The larger the database, the better.

Try these options.

Companies like State Farm and USAA that deal directly with consumers without using independent agents are called “direct writers.” In theory, they can pass on their savings by eliminating the middleman.

Read your junk mail. Direct marketers like Geico and Progressive Insurance Co. save on overhead – and pass on the savings – by marketing by phone, mail, or the Internet.

Let your state be your guide. Most state insurance departments offer online shopping guides for homeowners insurance. Your state’s guide may identify little-known companies with competitive rates. Insure.com can link you to your state guide.

Look at service

No discount in the world will make up for slow claims processing, so find out as much as you can about a company’s service before you sign on. Consumer Reports periodically publishes service ratings for large insurers. You can also ask a representative about a company’s claims turn-around time; a shorter turn-around is an indication of better service.

Focus on financials

Several insurers were hit hard by Hurricane Katrina in 2005 – the industry paid out nearly $60 billion to cover losses from the storm. For that reason, it’s wise to look at the financial ratings of your home insurer. Ask the company for that information, or check out one of the financial ratings services on the Web.

An A rating or higher from Standard & Poor’s or an AA ranking or better from Moody’s Investor Service is a good indicator of strength. Weiss Ratings, the most independent of the ratings services, and arguably the most stringent, publishes a list of the currently weakest homeowners insurers.

Source

Continued from Getting Proper Coverage (part 1)

Get these types of important coverage, too:

Inflation guard

This option annually increases your premium at the rate of local building-cost inflation.

Ordinance-and-law coverage

This rider, which covers the costs of bringing your home into compliance with current building codes, is a must if your home is more than a few years old.

Limit your liability

Your homeowners policy protects against lawsuits for accidents that happen on your property. It also covers you if your dog bites someone.

You might also consider umbrella liability coverage, which is additional coverage over and above your regular homeowners liability limits.

Consider these options:

Displacement

Your homeowners policy also provides for living expenses if you’re displaced; replacement of structures such as garages and sheds; and limited medical coverage for someone injured on your property. Don’t buy more than the minimum offered. Depending on your situation, however, several other types of coverage may be worthwhile:

Floods

Floods aren’t covered by ordinary homeowners insurance. Flood insurance is available through the Federal Emergency Management Agency. In California, you may need earthquake coverage; check with the California Earthquake Authority.

Home business coverage

Business property worth more than $2,500 isn’t covered by a homeowners policy, so buy a separate policy – also known as a rider – to fill the gap. Business liability coverage must be purchased separately, too.

Riders for valuables

A standard policy provides only minimal coverage for antiques, collectibles, furs, silver, jewels, cameras, computers, musical instruments, and firearms. For these, you need separate coverage.

Source