by sladetanner on April 14, 2010
For most people getting homeowner insurance can be a big undertaking especially if you have no idea about how to go about it. Homeowners insurance is a big step when buying a home and you want to make sure that you get the proper insurance for your situation. Here are some tips that will help you when buying homeowners insurance.
One of the first things your insurance agent will need to know about is the home that you plan on insuring with them. Things such as age, condition, roof, electrical, plumbing and size all will have an impact on homeowners insurance. Another big factor that many people do not think about and that is the home’s location. Depending on the location you could pay more for homeowners insurance or less. Location is very important when it comes to homeowners insurance.
When buying homeowners insurance you will also need to look at deductibles as well. The higher the deductible that you choose the more money you can save on your homeowner’s policy. Most mortgage companies though will not let you exceed 1,000 dollars as your deductible. Some companies have deductibles as high as 10,000 dollars, but check with your mortgage company so you know what you can do.
Determining how much insurance you need is also something that you must decide. Most homeowners insurance replacement cost only insure the dwelling not the land that it happens to sit on. It is recommended that you go with 200 percent replacement cost. The main reason for this is construction costs continue to rise and you will need the additional coverage.
Ask about available discounts as well when inquiring about homeowners insurance. Security upgrades can get you discounts on your homeowners insurance. Most insurance companies offer a variety of different ones so ask about them. Get plenty of online homeowner’s insurance quotes as well. Competition is keen in the insurance industry and by getting a variety of online quotes it will give you a chance to see what works best for you. Do not feel you must take the first price quote that you receive. Look over each offer very carefully and judge each offer on its own merits.
Following the tips we have given above and you will be able to get homeowners insurance at a price that you can afford. Always take your time before choosing homeowners insurance. If you’re not sure what is best talk with people you trust before making any homeowners insurance decision.
by sladetanner on April 13, 2010
The most valuable asset in our financial portfolio is most often our home. Owning multiple properties usually means renting out the spare to offset mortgage costs. But you may be struggling with some paralyzing fears if you’re newly considering becoming a landlord.
Renting your property comes with many legitimate concerns. But perhaps the greatest worry you face is what kind of condition you’ll find your home in when the lease finally expires. Though landord insurance can offer a variety of benefits, perhaps the most important is that it can carry you over from one renter to the next if the previous renter has left your property in ruins.
Consider the very real story of Marcus and Carol, two very real people whose names have been changed. This couple had their dream home built with the intent of retiring there for good someday. They continued their busy careers in the meantime and largely absorbed the expense by renting the property out.
All was well for the first 6 months. There were no demands for maintenance thanks to the property being newly built. As such, interaction between Marcus and Carol and their renters was minimal. It seemed a perfect match until the 7th month when the rent check failed to come that the problems began.
In a series of not entirely unpredictable events the rent continued not to show and the phone calls became more and more tense until our desperate couple had no choice but to pursue legal efforts to evict the deadbeats flopping in their dream home. What might not be so predictable is the condition of the home couple finally discovered once the tenants were removed.
What Marcus and Carol discovered was spray paint graffiti, excrement smeared on the walls, whole sections of drywall ripped down, cabinets ripped off the walls, a toilet smashed apart in the bathroom and the inevitable water damage you’d expect from such violence. Their shock at the havoc inflicted on their dream home was only the beginning of the pain they’d endure.
Fortunately Marcus and Carol did have home owner’s insurance to absorb the lion’s share of the expense to repair the damage. But the real difficulty came from their inability to collect rent on the property while it was being repaired. Clearly they couldn’t rent it out to even the most tolerant of tenants until the major damage was taken care of. With several months of work ahead, they were left paying out of pocket from their humble income for months.
The choice to purchase landord insurance is no more difficult than the consideration you go through with any kind of insurance. You weigh the risks and make an informed choice based on what you feel you can tolerate. But where other forms of insurance protect you against risks you can largely mitigate through cautious living such as eating a healthy diet or driving defensively, landlord insurance protects you from one variable you have absolutely no control over; the complete stranger living in your house.
