Homeowners Insurance Lowdown

Homeowning for n00bs: 55 Ways to Save Money and Build Equity

A house is among the most expensive investments that an average middle-class American makes. Naturally, we want to optimize our earning potential from our property, and often find ourselves making changes to our homes. Drastic remodeling is not always the answer.

In fact, sometimes large-scale remodeling can actually put you at a disadvantage. "Preparing a home for sale means making improvements that will help you sell the home faster -- not necessarily fetch a higher price," says Ron Hazelton, Home Improvement and Remodeling expert.

Home improvements should not cost you a fortune. Here are 55 improvements that can be achieved with almost zero investment.

The Visibility Factor

A neat and tidy property that looks presentable is a very basic and inexpensive way to increase the value of your property in the eyes of a potential buyer.

First, Work on the Outside

External Clutter
Visuals leave a strong impact on memory; a house that looks cluttered and untidy is not a pretty sight for a buyer. While a real estate agent may be able to look through the mess and perceive the true value of a property, buyers won't be so kind. They will simply ignore homes that don't appeal to them instantly. So heaps of leaves, discarded beer cans, and barbecue leftovers are a sure no-no for the exterior of your home.

Pet Implications – What's that smell?
After living with a certain smell for a while, home owners get used to it. This will, however, not stop visitors and potential buyers from noticing them. Households that have pets are immune to the "pet smells" that are embedded in the home. Unpleasant smells such as those of a pet (or Asian spices that are sometimes used in the kitchen) remain trapped in carpets and outsiders catch them immediately. Just as the presence of an unpleasant odor in the house reduces its value, ridding your home of unpleasant smells increases its value.

Visible Repairs
Expert renovator Steve Berges states, "When renovating a house or preparing it for sale, spend money on things a buyer can see… Fix up the exterior first, then the interior." When you get into "buyer mindset," you will easily understand that an unkempt yard and ugly exterior means that the buyer may never reach the inside the house. So one of your most urgent tasks is to complete external visible repairs.

Landscaping
Once you're done with the external repairs, take a look around the yard. Landscaping comes next - prune hedges, trees and shrubs, mow the lawn, paint the fence, and if possible, add some flowering plants in the yard.

"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." (How to Inexpensively Increase the Value of Your Home)

Danny Lipford, home improvement expert offers tips on everything from planting to pruning to mowing your lawn, here.

Why the Roof?
Does the roof matter at all, and if yes, then how? From the curb, "the roof takes up 30% of what you see," says Berges. "If you have a nice-looking roof, that goes a long way in curb appeal for the house." So if the roof is among the first things the buyer will notice, it is worth your while to make it look appealing. You don't have to go "over the top," just ensure that it is clean and looks neat.

Why Visibility? – Choose Where to Spend
"Visibility adds value," Berges says. "The improvements that are most visible are the things you need to focus on." If you have to choose between spending money on repairing the foundation and the roof; you need to choose the roof – simply because it is more visible.   

"Yikes!" appeal
According to the bankrate.com article, "3 simple ways to increase your home's value," when working on increasing the value of your home, "Focus first on what Berges calls the "Yikes!" appeal -- clutter, trash and bad smells that drive down a home's value." Once these basics are in place, then you can pay attention to other things. For instance, you may have spent a small fortune on re-doing your kitchen and bathrooms; but if your home is high on "Yikes!" appeal, potential buyers may not wait around to see the inside of your house.

Citizens Property Insurance To Issue Refunds

Florida’s state-sponsored insurer, Citizens Property Insurance Corp. recently announced a timetable for its rate reductions. It will also be mailing a refund check to each of its 1.3 million customers soon. 20,000 policyholders will begin seeing checks as early as April 15 following the rate reduction.

A special session of the Florida legislature was held to address the rising costs of homeowners insurance. The refunds came after this session. During the last few hurricane seasons, rates went up as much as 22 percent for some of Florida's ‘high-risk’ homeowners.

The rate cuts are going to be anything but even however. For some reason, hurricane prone Palm Beach County will only see an average drop of 2 percent, while Martin County will see rates fall by around 14 percent.

Tips To Lower Insurance On Your New Home

By Priya Jestin, Staff Writer

What do you look for when you’re buying a home? Yes, it should be within your budget, big, pretty, in a good neighborhood, blah, blah… There is one more thing that you need to check before you purchase your dream home – its homeowners insurance.

As insurance rates keep rising at a steady rate, homeowners are checking for more and more ways to reduce their rates. Here are a few things you could check for to reduce rates:

• Sometimes, insurers charge you less if you buy a house close to a fire hydrant or in a community that has a professional rather than a volunteer fire department.
• Are the home’s electrical, heating and plumbing systems less than 10 years old? If so, you may have to pay less.
• If you live in the East, try to purchase a brick home – they are more wind resistant. In an earthquake-prone zone, it is best to go in for a wooden frame house. Such houses can withstand such disasters better. Depending on the type of residence you choose, you could shave off your rates from 5 to 15 percent.
• The Comprehensive Loss Underwriting Exchange (CLUE) report of the home you plan to buy will give you a good idea about the history of the home. The CLUE report will let you know the insurance claim history of the property helping you judge the property better.

Tips To Lower Insurance On Your New Home

By Priya Jestin, Staff Writer

What do you look for when you’re buying a home? Yes, it should be within your budget, big, pretty, in a good neighborhood, blah, blah… There is one more thing that you need to check before you purchase your dream home – its homeowners insurance.

As insurance rates keep rising at a steady rate, homeowners are checking for more and more ways to reduce their rates. Here are a few things you could check for to reduce rates:

• Sometimes, insurers charge you less if you buy a house close to a fire hydrant or in a community that has a professional rather than a volunteer fire department.
• Are the home’s electrical, heating and plumbing systems less than 10 years old? If so, you may have to pay less.
• If you live in the East, try to purchase a brick home – they are more wind resistant. In an earthquake-prone zone, it is best to go in for a wooden frame house. Such houses can withstand such disasters better. Depending on the type of residence you choose, you could shave off your rates from 5 to 15 percent.
• The Comprehensive Loss Underwriting Exchange (CLUE) report of the home you plan to buy will give you a good idea about the history of the home. The CLUE report will let you know the insurance claim history of the property helping you judge the property better.

3 Tips To Lower Second Home Insurance

By Priya Jestin, Staff Writer

What is costlier than insurance on your residence? Insurance on your second home of course. This is no idle chatter – insurance on your second home costs you more. So, are you prepared to face this hefty bill? If not, here are 3 tips that will help you have enough coverage at a lower rate:

Install an alarm system: You are safe from both fire and burglaries if you install a central fire system. What’s better, it also helps you cut a quick 20% off the top, according to insurance salespeople.

Keep watch: No you don’t need to personally be there. If you’ve purchased your second home in a gated community, expect a discount of at least 10 percent. If your home is in a rural area, and you can provide proof that the local fire department has access to a stream, lake or any other source of water, you can shave off 25% from your insurance rates.

More business = More discounts: Want to reduce your insurance rates on the second home by 10 percent? Try paying a visit to the agent who sold you coverage on your first home. When you insure with the same company, you could get a discount of anything between 5 to 10 percent.

Does The Insurance Shoe Pinch? Time To Change

By Priya Jestin, Staff Writer

What do you do if your shoes pinch and don’t seem to wear well? Change them of course. If we are so careful about our shoes, why do we find it so difficult to change our policies every time we realize that they don’t fit our requirements? According to recent statistics, at least 32 million households in the United States own insurance policies that aren't right for them.

Can you believe that in 2006, nearly 60 percent of homes were undervalued in their policies by an average of 21 percent. This makes you wonder if it is lack of proper knowledge that is making people take the wrong policies. So how do you actually tell if your insurance policy doesn't fit correctly? The best thing to do is every time you take a life changing decision or there is an unexpected change, check your insurance.

Got married? Check your insurance. Divorced? Where are the insurance papers? Purchased something new? …. While getting married and having kids are the no-brainer life events that may prompt insurance changes, there are several other instances when you should review your policies:

Renovated your home? If you’ve added a new room or expanded your kitchen, do ensure that your insurance covers all these new changes. You do want your hard work reflected - and covered - in your homeowners insurance, don’t you?

Any new purchases: Acquired valuables like art or jewelry? Before you begin admiring your new acquisitions, check to see if you can get them covered in your homeowners policy. If the policy provides only limited coverage for such expensive items, you might want to supplement your policy with a floater that provides additional insurance for valuables. Don’t forget to get the items professionally appraised so you know what they are worth.

Renting property: Don’t forget to take renters insurance. Your landowner is responsible only for insuring the structure of the building, not the possessions in it. If you want to safeguard your stuff, get insurance.