Homeowners Insurance Lowdown

10 Reasons House Flipping is Dead

A demerit of flipping house is if you buy a house and prices fall you can lose money in a deal. Flipping requires you to be a good investor.  It can be a great fun. When you are thinking about starting a real estate investment, don’t trust on flipping show that are running on television. Those one hour shows won’t give you enough information and knowledge of investing. Rather they spit out sixty minutes of fun and profit, hiding the down and dirty facts of investing.

Don’t hope to earn profit on what you see on television. Market trends vary from region to region, and community to community. Those witty advertisers have creative skills to create a big profit in front of your eyes. Investing is not a game; it’s a business and need lot of first hand information to make lots of money.

Let us discuss some demerits of flipping a house.

1. Hard to Convince Sellers:   You will have more difficulty convincing sellers to give you a good deal in flipping. Cash and credit give you credibility with sellers. They are more likely to give you a good deal if they believe you can deliver. Most experienced sellers will laugh at you if you offer $10 to bind a contract. They will also question your assignment clause and why you need it. So, be prepared to lose deals to people with demonstrable buying power. You will need to find sellers that are especially motivated and unable to find any other buyers besides you. Tough job indeed!
2. Finding a Buyer:  You will have to rush to find a buyer. The typical closing period for a contract is 30 days. Therefore, in less than a month, might need to find a buyer for your contract. You have to give them enough time for due diligence and allow them to arrange financing. All this you have to do in 30 days. Usually, you'll need a buyer that can close in cash, eliminating costly delays with conventional financing. In either case, you'll limit your pool of buyers to those that can act quickly.
3. Impacts of Bad Service: Suppose that you are a used auto dealership. You find people that are ready to unload their autos for a discounted price. After buying the auto, you put it on your lot with a slight markup. You take out ads on the newspaper convincing buyers that they can get a great deal at your auto lot because you're selling them much below the market trends. Here, you are acting as a middleman. You collect a fee for that service from people. Similarly, when you are flipping houses, you will use a similar formula. You will buy houses from motivated sellers and mark them up. Next you resell to investors looking for a good deal. In other words, you are in the business of making other people money. No one particularly cares how much time you invested or how much money you make from the resale. They are paying you to find them excellent investments. You are providing a service. When your service is not good, all your hard work will be fruitless.
4. Foreclosures Trouble: You will be unable to buy foreclosures. Most banks have stopped accepting assignable contracts. Not all flippers are always able to assign their contract in time to close, so they have to admit to the bank that they are unable to buy the property. During the contract period, the bank might remove the property from the market. That is to say, they have to start marketing from scratch. As a result, most banks in the US have created policies that prevent any buyer from using an assignable contract. They have gotten burned too many times.
5. Lost in Flipping:  Remember, you make your money from the markup. You need to look for properties that are better than your investors require. Otherwise, you won't make any money. For instance, if your investors are willing to pay $60,000 for a house that is worth $80,000, then you need to pay less than $60,000 for the house. You might buy it for $50,000 and resell it to one of your investors for $60,000, making a quick $10,000. If you are unable to perform such profits, flipping is a lost game for you.
6. Time Consuming Job: Of course, it's easier to talk about it than actually do it. Unless you're in an especially poor market, it's difficult to convince anyone to take 20% below market value for their home. Most professional house flippers take several months to build up their database and find a few deals before they start making money. It's a business that takes time and a lot of hard work. Still, if you're willing to do what it takes, there are countless investors who are willing to pay you for the service.
7. Lowering Price is Dead: After your home has been on the market for quite sometime, there is nothing you can do but lower the asking price. Once it has been long enough and you are eager to move into or put an offer on a house that you were interested in. Next thing you know, someone comes along and gives you a lower offer than you hoped for, and you feel determined to sell your home therefore end up letting it go for less. Here is where you lose more money.
8. 30 Seconds Syndrome: Since real estate is expensive these days, when buying a house most buyers want something they fall in love with immediately. When first walking into anyone’s house you know, you can tell right away whether you like the set up. It usually takes people looking at your house thirty seconds to decide whether or not they like it when they first walk in. That means your entrance has thirty seconds only to impress your buyers! If you fail to do so, then you are a dead house flipper.
9. Hard to Survive : Real investment plan assumes that you have the knowledge and skills, time to work on your fixer, and that you will sell the house as soon as it is finished to a qualified buyer. Home improvement centers help you with various know-how tips, brochures and advice. You need to give up your free time--television, parties, leisure activities and work on your fixer. You could hire workers, but contractors and laborers work slowly and eat up your profits. You have to compete with several other flippers in the real estate market. Only the best will survive!
10. A Long Wait: Selling your house quickly to a qualified buyer requires you to do selling homework in broad way. Many investors seek free help from a loan officer to price the house right and to qualify their buyers. These investors earn the sales commission by selling their houses by owner. You will have to wait for many days to find the buyers. Spending time on decision making will often lead to the house being left unsold for many days. Such flipping policy is a real dead indeed!

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.

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.

Tips To Be Safe At Home

By Priya Jestin, Staff Writer

You don’t need somebody to tell you that taking care of your home does not mean just taking homeowners insurance. Insurance is to protect you in the case of an eventuality. But you have to take all precautions to ensure that such eventualities don’t occur. So how can you and your home be safe when you are at home?

Generally, burglars avoid occupied houses. However, there always exceptions to the rule, and don’t assume that nothing can ever happen just because you’re home. It’s actually even more dangerous if you are home because not only are your belongings at risk but your family is also under threat. There are a few things you can do to minimize such a risk.

Never hand out your keys, not even to the best of friends. Keep your keys to yourself and always know the location of all your house keys all the time. Never leave the key under the doormat, above the door, in a flowerpot, or anywhere outside the house.

No strangers please. It’s nice to be friendly, but don’t go inviting strangers into your home. If you’ve got a delivery, even before you open the front door to accept the package, always ask for photo identification. Just because someone wears a uniform doesn’t mean s/he is legitimate. If an unknown person rings your bell and asks to make a phone call, offer to make it for them, but don't let them in. A chain on the door helps insure someone can't force his or her way in while you're there.

Locks: Keep your doors and windows locked, even if you're at home. Get your children into this habit, too.

Look around you and be alert at all times. Be aware of your surroundings even in your own familiar neighborhood.

Save On Homeonwers Insurance

By Priya Jestin, Staff Writer

Homeowners insurance is a costly affair and any little bit you can do to lower your costs goes a long way to increase your savings. Here are two simple tips to lower your rates.

Buy your home and auto policies from the same insurer. There are quite a few insurers who sell homeowners, auto and liability coverage. Some of these companies will take 5 to 15 percent off your premium if you buy two or more policies from them.

Make your home more disaster resistant. Find out all the steps you can take to you’re your home resistant to natural disasters like windstorms, floods and other such disasters. You can save quite a bit on your premiums by adding storm shutters, reinforcing your roof or buying stronger roofing materials.

Checklist Check

What is it that differentiates a regular homeowners’ insurance policy from that of other, more financially savvy people? These people ensure that they update their policies regularly. Got you there didn’t I? If you are like me and most other people, you haven’t bothered to update your policy to mention the new television you bought last fall. While there are no exact numbers, insurance agents say that a lot of people forget to update their insurance policy with everything inside the home.

And this could be a big problem if you are flooded out this hurricane season. While your basic home-owners policy will rebuild your home, it cannot replace what was inside, unless you document it. So if you want to replace the things you lost, you have no other option but to document your stuff. You can both take a picture of it or video tape it in your home and write up the information on the items. Then you should meet your insurance agent who can help you get everything important added to your policy.

Checked Your Policy Recently?

Insurance is not something you would like to think about in your free time – unless of course you work in the business. As for the rest, most people generally tend to think about them only when forced to, like the time when they come up for renewal. Just as when you first buy a policy on your home, life or car, you need to make sure you have the right amount of coverage at the best price. So what should you look for when updating your policies?

As a homeowner, you should take an inventory of your belongings once a year and adjust your contents coverage accordingly. Look closely for any changes that the insurance company has made in your coverage -- you may not notice a subtle difference until after disaster strikes. Remodeling, renovation and major purchases like appliances should be factored into your policy so that they will be covered should something go wrong. And your new electrical system or roof may also qualify you for a discount.

Lower Your Insurance Payout

As home insurance rates keep rising, hompeowners are finding it increasingly difficult to keep up with the expenses. But there are ways to economize and reduce your costs -- well not too much, but in these hard times, every dollar saved counts. Buffalonews.com reports:

Consider increasing your deductible, the amount of money you must pay toward a loss if you ever have a claim. Higher deductibles usually mean lower premiums.

Read more:How to save some money on your homeowners insurance

Tips To Make Your Home Burglar Proof

Holiday season is a time of cheer – you get to go away from home and the drudgery. Just lock up and leave for the great outdoors. And it is a time of cheer for burglars as well because they can burgle the great indoors without any hindrance. That is if you haven’t been smarter than them and take steps to make your house easily accessible to them. If you haven’t thought of them already, here are a few handy tips that will help you relax and enjoy your vacation without worrying about who’s home:

• Ensure that the doors and windows are secure.
• If you are going away for quite some time, give your house the lived in look. You could put your lights on a timer and ask a neighbor to ensure that the front of your home is clean of debris.
• Get an alarm system, and be sure to advertise that you have one. Most security companies will give you complimentary stickers and yard signs.
• Keep your homeowners insurance policy up to date.

After The Deluge – Claiming Flood Insurance

Fine you’ve taken that flood insurance and you aren’t too worked up about the recent storms since you know you can claim. So how do you go about filing a claim? Here are a few tips:

Capture: Firstly, if you can, try to photograph the outside of the premises showing any damage or flooding. You should also photograph the inside, showing the damaged property and the height of the water if your property was flooded.

Call: Next, it is time to call your insurance agent to report your claim. If you have flood insurance, you should call your flood insurance agent who will prepare a ‘notice of loss’ form. Once that is done, an adjuster will be assigned to assist you.

Separate: Now here’s where your work actually begins. You should now separate the damaged from the undamaged property. Try to put things in order as much as you can so the insurance adjuster can examine them. If the weather is still bad and there are chances of future flooding, try to protect your property from further damage.

Inform: You must know how you want your claim – as an advance or a partial payment of loss. You can inform the adjuster of your choice. A piece of advice here: try keeping good records because this can help you get an advance from your insurance company. Create an inventory, if possible, a room-by-room one of the missing or damaged goods. If you can, try to include manufacturers’ names, dates and places of purchase, and prices. If you have receipts of purchase, keep them safely.

Dispose: If any of your property has been damaged and could hamper clean up operations, or pose a health hazard, it is important that you dispose it. But don’t forget to make a list of discarded items so you can present it to the adjuster.

Homeowners Insurance Shopping Tips

Shopping for homeowners insurance is not high up on anybody's to do list, but since it is such an absolute necessity, most people do it grudgingly. However, since 2004, this unpleasant task got even more difficult in Florida. Eight hurricanes and three tropical storms have battered the state since August 2004, resulting in insured losses of about $30.5 billion, according to the Florida Department of Financial Services. News-press.com reports:

Reeling from those losses, several insurance companies have either stopped writing new policies, have told homeowners they will not renew their policies or have pulled up stakes and left the state altogether. "There is not a lot of good news at this point to share," said Tami Torres, spokeswoman for the financial services department. "We are hearing from consumers who are struggling to find coverage."

Read more: Obtaining insurance requires diligence

Save Some Money With These Tips

While I have always given tips on to reduce your insurance premiums, here are some more tips I found recently. One of the most obvious methods of reducing insurance premium is by ensuring that your home has the latest protective gadgets to alert you to a problem immediately. Having home has smoke alarms, fire extinguishers, deadbolts on all exterior doors, and central burglar and fire alarms can help you save up to a maximum of 15 percent.

Build fire resistance by constructing your house with fireproof construction material and earn yourself a 15 percent discount. Houses that are less than 10 years old or those that have been completely renovated by a licensed contractor within the past 10 years also stand to gain. You can save up to 25% depending on the age of your house. And if you are 55 or older, retired and your house is your principle residence, then you may be eligible for a discount. These are typical discount rates, but the figures may vary with companies. It is also possible that your insurance company doesn’t offer certain discounts. So do check with your insurers to know the kind of discounts you can avail of.

Insurance Flies Out Open Windows

A careless act could leave you minus valuable property without the umbrella of insurance covering you. Confused.com, the online insurance search engine, reports that 71 percent of consumers are in danger of invalidating their insurance by simple acts such as leaving windows open and failing to fit doors with proper locks.

A survey conducted across a sample of 1,000 homeowners revealed these startling statistics:

• As much as 81 percent confessed that they failed to inform insurers of construction work being undertaken in their homes. Accidents occurring in such cases will not be covered under your policy.
• Over 70 percent were guilty of leaving windows open in unoccupied rooms.
• A quarter of those surveyed said they hid keys for friends and family to use.
• Around 20 percent left valuable accessories lying about in their gardens.
• As much as 12 percent did not report burglary and theft to the police.
• Three percent used their residences as places of business without informing their insurers.
• And another three percent left their homes vacant for more than 30 days in a row. This means an automatic invalidation of your policy.

Four-Step Guide To Lower Your Insurance

Homes, unlike most other possessions have very strong emotions attached to them. It takes years for a person to build a home, mortgage loans and other loans pull you down, but you somehow manage to hold onto your dream home and build on it. Only to see everything lost in a flood or hurricane. And what’s worse, your insurer may not even pay up with the excuse that you did not have the exact insurance coverage for say wind or flood. To make matters tougher, these policies are long and complicated and quite costly.

But it needn’t be that way. There are quite a few simple tricks that can help you save on your homeowners policy. Firstly, try to get more information about the various discounts or credits. Then find out from your insurance agent how you can qualify for them. Here are a few of the more popular ones:

Be loyal & Don’t claim: Yes, I know that sounds crazy. I mean you get yourself an insurance cover and then don’t claim for it! Well, that’s the catch. So getting down to details, if you’ve been with your insurer for three or five years you can expect a discount. Now if during this period, you make no claims, your discount is even higher.

Increase business with insurer: Don’t just stop at insuring your home, go ahead and insure your car as well with the same company. This can get you discounts of 10 –20 percent from Allstate, while State Farm offers a 10 percent discount. The best part is that this discount applies to renters and condo insurance as well.

Arm Yourself: Install alarms, smoke detectors, fire extinguishers and dead bolts – just about anything that makes your home more secure. You’ll pay much lesser on insurance this way. And the more sophisticated your security system, the bigger the discount.

Renovate, improve: Anything that improves a home's condition often earn a discount that decreases over time.

How To Prevent Electrical Fires In Your Home

While it is a good idea to take a good homeowners insurance policy to provide for any losses, it is an even better idea to prevent losses. As the age-old adage goes: Prevention is always better than cure. But that doesn’t mean you shouldn’t take a homeowners insurance policy. What I’m trying to say is that there are certain situations, which are under our control, and if we take care, we can prevent dangerous situations from occurring. According to statistics, home electrical fires claim the lives of 200 Americans each year and injure 1,500 more. Let’s check out some simple steps that will help you prevent loss of life or property from electrical fires.

You must regularly check your electrical appliances and wiring. Faulty electrical outlets and old wiring are the main causes of electrical fires. Problems with cords and plugs, such as extension and appliance cords, are cited as the primary cause of home electrical fires.

You must keep a look out for frayed wires and replace all worn, old, or damaged appliance cords immediately. Never overload electrical extension cords.

The next highest causes of electric fire are electric stoves. However, it has been found that careless cooking is the reason for these fires and not stove malfunction. Here you must firstly learn the right methods of using electric stoves. Secondly, pay special care to all electrical appliances in the bathroom and kitchen and keep them away from wet floors and counters.

Don’t buy an electrical appliance that doesn’t meet the UL standard for safety. You don’t want to compromise on your life for a few dollars less.

Children should not be allowed to play with or around electrical appliances like space heaters, irons and hair dryers. Heaters are quite dangerous and you should keep clothes, curtains and any other inflammable items away from the heaters. A three-feet distance is recommended.

Finally, always ensure that your smoke detector is in good working condition.

Fire Away Fire Fears

A fire can destroy your home and all your possessions and memories in a few minutes. It may even claim your life and that of your loved ones. There are standard drills that help you prevent a fire in your house. This website offers two tests that help you decide if your home is fire-proof. The first set of questions help you assess your risk from fires, while the second tests how ready you are to cope in case a fire breaks out.

Claiming Dangerously…

Did you know that making a claim against your insurance company can result in you losing your home insurance? Yes, this is preposterous but true.

Columnist for the Kiplinger magazine Kimberly Lankford, says in her book “The Insurance Maze”, that insurers do not have fixed rules for dropping customers. But claims that are water-related do the most damage, she adds.

Chris Heidrick, vice president for personal insurance with Firemen's Fund, suggests that homeowners raise their deductibles so as to save on premiums. These savings can contribute to increasing their coverage which will stop them from claiming for even the most minor damage.

Insurers have a database of all the claims you’ve ever made, even the smallest ones. You can access a report of all your claims from the Comprehensive Loss Underwriting Exchange, once a year at no cost.

Rent a Home? Take Renters Insurance

I’ve spoken so much about homeowners insurance and how you should ensure that you have your insurance, file for it, how to reduce insurance rates, …the works. However, not all of us live in our own homes. Yes, we do dream of owning a home of our own, but that doesn’t necessarily translate into reality so soon. So, what happens if you have rented a home, or an apartment? Are you exempt from taking insurance? That would be a nice though eh? Sadly, if you don’t insure your stuff, your homeowner aint gonna do it for you.

So, even if you don’t like it, do go out and take insurance, no not homeowners, but renter insurance. This insurance will provide coverage to you, in the event that your belongings are lost. And guess what, it will also cover your ass in case you do something naughty like damage your landlord’s property (by mistake of course!). For instance, if you host a party, and one of your guests makes a hole in the wall!

Fine, let’s get back to business. What do you need to consider before taking insurance? First, create an inventory. Take stock of your dwelling. Make note of all items of value, and especially of those items with high value/high replacement cost. You could catalog all your possessions for easy reference in future.

Decide your deductibles. Remember, the higher the deductible, the lower your premium will be. If you’ve taken a basic policy, it will begin with coverage for the actual cash values of your covered belongings. Example: a 5-year-old washing machine would be covered for its initial cost, minus the depreciated cost. You may not get much money for that one coz minus the depreciation the value isn’t much. In such cases, you could opt for replacement cost coverage instead. With this coverage, you would be reimbursed for the total current cost of a washing machine. BUT, remember this kind of coverage is more expensive.

Tips to Lower Insurance on Your Second Home

If you have managed to secure a second home for yourself, you will know by now that insurance on the second home doesn’t come cheap. But that shouldn’t be a cause for worry since a few adjustments will help you lower the cost of insurance on your second home. Smartmoney.com reports:

A central alarm system that detects both fire and burglaries can cut a quick 20% off the top, insurance salespeople say. A basic system costs around $300 to install, depending on the number of zones and sensors in your system, according to alarm company ADT. Expect to pay $70 and up for service each year.

Read more: Second Home Insurance Tips

Explaining Umbrella Policies...

What happens when your policy has paid out all you can claim?

There’s no reason to worry if you have an Umbrella policy. When the homeowners policy that you have ends up paying out all that you can claim you will not be minus coverage if you have the Umbrella coverage.

Liability coverage can range from serious injuries resulting from tragic accidents to law suits filed against you and they can often creep up on you unexpectedly. This is also where you may need some extra protection.

Umbrella policies supplement liability coverage offered by your standard homeowners and auto policies. It can also be called an extra shield for you over and above your standard polices.

Let me remind you that most of the risk is still taken by the standard homeowners policy. Also the reason why it’s not expensive - You can buy a $1 million or larger umbrella policy for less than $200 a year.

Insurance providers are happier selling umbrella policies if you already have auto or home policies. Umbrella policies are usually sold with a deductible that might run anywhere from $250 to $1,000. Each additional $1 million of coverage is less than $100. The larger your basic liability limit, the less excess-liability coverage you need and the lower your premium for excess coverage.

Umbrella insurance is sold as a separate policy from your basic policy. Even umbrella polices are not enough sometimes - Keep in mind an umbrella policy won't cover claims arising out of a business endeavor.

The umbrella policy won't cover intentional acts, unless there are extenuating circumstances. However in the kind of society we live in where every one sues at the drop of a hat, having an umbrella policy may be a good idea.

Is Your Insurance Checklist Complete?

It is important to review your homeowners insurance every now and then. Have you done it lately? If not, please check these items against your insurance-planning list:

• Review: Know what your policy covers and review your insurance coverage with your insurance agent. If necessary, write down your basic insurance information.
• Know deductible type: This is an important one – you must understand the type of deductible you have. For this, read your insurance policy or call your agent or company. Some companies allow policyholders an opportunity to "buy down" to a flat deductible.
• Make a list: I’ve said this before but since it is important, it requires repeating. Update your household inventory. Make a list, take photographs or videotape your personal belongings and store the inventory in a safe place outside your home.

Bringing Down the Roof on Insurance Rates

Did you know that your roof may allow you to become eligible for reductions in your home insurance premiums? If you use impact-resistant roofing materials that qualify, you will most likely get a discounted insurance rate.

Each state has its own discount rates and certification processes as to which materials qualify for the reduction. Learn more about roofing materials, and which of them are eligible for insurance discounts.

Extra Aspects of Home Insurance

Here are a few additions you can make to your home insurance amount that will save you a lot of dollars in the long run, even if your premiums are high.

• Include the inflation factor in future construction costs into your policy.
• Factor in the purchase ordinance and law coverage, or in other words, the building code upgrades and construction regulations in your residential area. 
• Get flood insurance even if you do not reside in a flood-prone area.
• Include sewage backup insurance with your regular policy.
• Check if your policy covers your living expenses if your house is beyond occupation. If so, find out the amount that can be claimed or the length of time this perk lasts.
• Update your policy to include any renovations and extra additions to your home.

Fire Those Fire Fears Away

Whoever coined the phrase “Keep those home fires burning bright” most certainly did not mean that you should let your home sweet home go up in flames. Did you know that the most common causes of home fires are from the kitchen? Other contributors are cigarettes and smoking-related items, heaters, fireplaces, chimneys, short circuits, and candles and lanterns.

Though these effects start the fire, the main culprit is human carelessness. Sensible homeowners will take appropriate steps to protect their homes from being ravaged by fire.  So what can you do to ensure your house is protected from fire damage?

• Invest in a home alarm system that includes central fire monitoring and alerts the closest fire station when a fire breaks out.
• Make sure your smoke detectors and hydrants are in working condition and in locations that are easily accessible in case of a fire.
• Insure your house against fire-related damage. Photograph or make a video recording of all the rooms in your house so that claiming insurance after the destruction is a relatively painless process.

Save on Insurance Costs

There are some factors more than others that affect your insurance costs:

• Get a multi-policy discount by buying your home and auto policies from the same insurance provider.
• Save time and unnecessary worry when you file claims by maintaining a correct inventory of all your belongings and a file of photographs or a video recording of all the rooms in your house. Retain receipts for expensive purchases. Store this documentation outside your home; a safe deposit box is a good storage idea.
• Most basic homeowners’ policies do not cover jewelry or other valuables like art and antiques. You will have to buy an added endorsement with your policy.
• In case you renovate or build additions to your home, be sure to update your home insurance policy accordingly.
• If you are senior citizens, find out if you are eligible for any discounts.
• If you use your mortgage company to pay your homeowner’s insurance, once you pay off your mortgage, make sure that you inform your insurance company so that future premium bills are sent to you. If not, you will not be able to pay on time and your policy is likely to lapse.

Home Insurance Options

Do you know that there are two ways in which you can insure your home?

The first option is to insure it for the replacement cost. The replacement cost of your home is the total cost you will incur in repairing or rebuilding your house with the same type and quality of materials it is built of now. The cost also includes the price you will have to pay to replace your damaged or lost possessions. Replacement cost does not take into account the depreciation value. Though this option is the more expensive of the two, it is worth it if you can afford to pay larger premiums.

The other option is to insure it for the actual cash value. This is the amount that will have be shelled out in order to repair or rebuild your home and replace your possessions, after deducting the depreciation amount.

Insurance Amount for Your Home

How do you decide on the insurance amount for your house? Well, for starters, you can settle on the amount it would cost you to rebuild your home if it were torn down during a flood, cyclone, earthquake, fire or any other natural calamity. You can choose to insure in terms of:

• The Replacement Cost: This will pay you the amount to replace the damaged property without reducing the depreciation amount. This payment is limited to a maximum dollar limit.
• The Guaranteed Replacement Cost: This will pay you the full cost of replacing the damaged property without deduction for depreciation, but without a dollar limit.
• The Actual Cash Value: This will get you cash equivalent to the amount needed to rebuild your home, after an amount has been deducted for depreciation.

Consider factors such as land value, construction costs, the number of rooms your house has, the materials used to build the house, and other aspects while calculating the monetary value of your house.

Check your hurricane-planning list against these items

Hurricane season’s almost begun and predictions are not good – it could be an active season with 17 named storms, nine of which will become hurricanes. So, do you have your insurance in place? If not, please check these items against your hurricane-planning list:

• Review: Know what your policy covers and review your insurance coverage with your insurance agent. If necessary, write down your basic insurance information.
• Know deductible type: This is an important one – you must understand the type of deductible you have. For this, read your insurance policy or call your agent or company. Some companies allow policyholders an opportunity to "buy down" to a flat deductible.
• Take precautions: There are certain measures you can take to reduce the severity of loss in case of a hurricane. For instance, you can install hurricane shutters and other things that can help make your home stronger. Ask your agent or company for information on how to protect your home and valuable personal belongings. You can also find out if your insurance company offers a discount or credit for retrofitting your home to prevent hurricane damage.
• Make a list: I’ve said this before but since it is important, it requires repeating. Update your household inventory. Make a list, take photographs or videotape your personal belongings and store the inventory in a safe place outside your home.
• Ensure renovations are on the list: Sometimes, we keep making renovations and tend to forget that every new addition should be on the inventory list. In case you’ve made the renovations or purchases after taking your policy, speak with your insurance representative to make sure your coverage is still adequate.
• One’s not always enough: If you live in the coastal areas, you should know that one homeowner’s insurance policy may not cover everything. You may need as many as five or six separate insurance policies including a homeowner’s insurance policy, a wind and hail policy, a flood insurance policy, earthquake insurance policy and excess coverage such as a personal-articles policy.

Insurance check list for wildfire

Did you know that loss from fire is one event that is by and large protected by your homeowners insurance? This is of course if you have not torched your home yourself accidentally or otherwise. You can also expect that your premiums are going to increase after a wildfire and even though the west coast of the US is more susceptible to wildfires you cannot assume that you are not at risk.

Home improvement should be followed by insurance upgrade: You may have made home improvements and if you have not upgraded your insurance in the event of a fire your claim may not be enough to replace these recent renovations. The costs of building materials are also increasing and this could again leave you short if updates are not made on an annual basis. This also means that if after a fire the neighborhood’s real estate rates nosedive your homeowners insurance does not cover this loss.

But, did you know that you could claim for replacing trees and shrubbery lost by fire. Typically, policies will pay up to 5 percent of the value of the structure to replace landscaping though there is a limit of $500 per plant. A policy with $500,000 worth of insurance on the structure would pay $25,000 to replace the trees and shrubs around the house, though there usually is a limit of $500 per plant.

You can get coverage even if your home was damaged by smoke or soot even though an actual fire did not touch your house so check with your agent.

Reduce premiums...

1. If you use fire-resistant material to build your home
2. If you live near the Fire Department
3. If you upgrade the electric wiring in your home
4. If you install fire alarms that alerts an outside service
5. If you have fire extinguishers and smoke detectors and
6. If you stop smoking

Additional living costs: After a fire you may need to stay at a hotel and eat out as your home is unlivable and you may need to buy clothes too. Most homeowner’s policy in the west coast may provide these additional living expenses but it is always wise to check again.

Wildfire - insurance, information and tips

The Arizona wildfire recently displaced a lot of people and panic spread among homeowners living in  wildfire zones everywhere. News reports  said that the late-afternoon wildfire on the western edge of Flagstaff forced mass evacuations of two private campgrounds and hundreds of homes. The Woody Fire, apparently sparked by humans, started about 4 p.m. near Route 66 and Interstate 40, about two miles from downtown Flagstaff.

It is when an incident like a wildfire occurs that homeowners think about their insurance for their homes and yes this is a good time to review your homeowners policy. Insurance experts will tell you that the single most important factor when it comes to insuring your home is to make sure your homeowners policy insures the replacement cost of the home and not actual cash value.

Replacement costs will cover the rebuilding or repairing cost of the home and your possessions without a deduction for depreciation and this is often overlooked. Check if your policy is on the replacement cost of your home and if not talk to your insurance agent or find a new insurance provider. Did you know that most homeowners don’t realize that their home is worth much more than the cost price of the home? It is realized when it is too late like after a wildfire devours your home.

Ensure that a 30 foot radius of vegetation free area is around the house. If there is a wildfire, this is where the firefighters will be while trying to save your home from a fire. Vegetation near the house can also be a fire hazard in wildfire zones and the general rule is: If wildfire risk is low to moderate a minimum of 30 feet of space must be established around your home and if your wildfire risk is high or extreme, surrounding space should be 100 feet and the use of more fire resistive building materials should be considered. Have you checked this yet?

Insurance tips to protect your home

Coastal property is the first to be hit in case of a hurricane and since hurricane season is just two weeks away, you probably need to do something to protect your property and yourself. If you live along the coastal belt, here are a few tips that can help you get prepared for the worst if it comes to that. Myrtlebeachonline.com reports:

Read your insurance policy or call your agent or company to make sure you understand the type of deductible you have. Some companies allow policyholders an opportunity to "buy down" to a flat deductible. A customer may obtain a policy through the South Carolina Wind and Hail Underwriting Association in the event coverage is unavailable through admitted carriers.

Read more: Insurance tips for storm season

Wind storm or flood? Alberto's here!

The first storm Alberto is here and here is going to be a lot of rain in South Florida and sure enough this time no one wants to take a chance with nature anymore. Tourists are reported to be evacuating their hotel and are homeward bound as the first storm news broke.

As it is going to be intermittent blasts of rain and wind, it is only more worry and fears for thousands of Florida residents still living under roofs damaged by last year's Hurricane Wilma. Some areas could receive up to four inches of rain by Tuesday according to experts.

While firefighters are happy that the rains are going to decrease fire hazards throughout the area, how many people are really geared for the onslaught of rains this hurricane season? Although meteorologists have been saying that as the Atlantic is not as warm as last year and this translates into lesser punch for storms predicted this year it is still a problem for residents with roof problems incurred during the last season.

Rain entering through wind-damaged windows, doors or a hole in a wall or the roof, resulting in standing water or puddles, is considered windstorm and not flood and hence you should get coverage for this from your regular homeowners insurance policy. As floods occur after a windstorm there is always a debate as to which to claim and it is usually a case-by-case study that determines this. National Flood Insurance Program (NFIP) guidelines are resorted to in apportioning losses between a flood insurance policy and a homeowners insurance policy.

So, if you are in the hurricane zone it is imperative that you get both flood insurance and homeowners insurance. During a storm the first thing you need to is to protect your doors and windows the glass especially can be shattered at the wind speed of 120 to 175 mph. Read for tips on window protection: Here

Tips to lower your homeowners insurance costs

Did you know that the price you pay for your homeowners insurance could vary by hundreds of dollars? Different insurance companies charge differently and that is where the price difference arises. But there are some things you can do to lower your costs. So, before you go out to get yourself a homeowner’s insurance policy, it is best to consider certain things that will help you lower your costs.

One of the simplest things you can do to reduce your insurance cost is to make your home disaster resistant. Find out from your insurance agent or company representative what steps you can take to make your home more resistant to windstorms and other natural disasters. The simple act of adding storm shutters can actually help you save on your premiums! Reinforcing your roof or buying stronger roofing materials, also give the same benefits. Pueblo.gsa.gov reports:

Older homes can be retrofitted to make them better able to withstand earthquakes. In addition, consider modernizing your heating, plumbing and electrical systems to reduce the risk of fire and water damage.

Read more: 12 Ways to Lower Your Homeowners Insurance Costs

Hurricane news and tips

Deadly hurricane names of last year to be retired and rightly so - for no one wants another Katrina, Wilma or Rita anymore. A total of five names are getting the axe and they are; "Dennis", "Stan", "Katrina", "Rita" and "Wilma". Read, "Five deadly names retired", for more details on the practice of naming and retiring hurricane names. Also get the stats on all five that caused catastrophic damage in 2005.

We all know that the cost of construction and labor has  gone up and as the cost of reinsurance (the insurance that insurance companies purchase for their own coverage) has doubled for some companies rebuilding and insurance is only shooting further up in costs. With hurricanes season here and predictions of increased storm frequency and severity, homeowners need to take steps to protect their property from damage.

1. Find out what your insurance policy says about your deductible and the more you can increase this the lesser premium you pay.
2. Record any improvements made to lessen hurricane damage to your insurance company to get discounts
3. Make an inventory of your household belongings with video clips and pictures and keep this list safe and away from your house.

If you are living in the coastal areas you may need a total of five or six separate insurance policies to protect your home from a disaster like a hurricane. A basic homeowners insurance policy, a wind and hail policy (if your basic homeowners insurance policy does not already cover wind and hail), a flood insurance policy, excess flood coverage, earthquake insurance policy and excess coverage such as a personal-articles policy.

You have to make sure your homeowners insurance includes wind/hail coverage, if you don’t have this covered you will need to purchase separate coverage. A waiting period of 15 days is required before coverage becomes effective.

What does your flood insurance cover?

Incessant rains drenching your home? If yes, then you’ve probably tried to find out if your homeowners insurance applies in the event of a flood, landslide or mudslide. If you haven’t, then let me tell you – your standard homeowners insurance does not cover damage caused by floodwaters or by landslides and mudslides. In short, it does not cover you from any water from the ground! And this rule applies not only to overflowing rivers and streams but also to overflowing pools. So what are you supposed to do?

To protect your home from flooding, get yourself a federally backed policy from the National Flood Insurance Program, which is administered by the Federal Emergency Management Agency. Flood insurance also covers damage from flood waters carrying dirt, silt and mud.

And then you also have to contend with mudslides and landslides that can occur during the monsoons. Your flood insurance will not cover these calamities. I know, by now most of you are wondering: so what exactly does my standard insurance cover. Your homeowners insurance will cover damage to your house if a tree falls on it and will pay for debris removal. And be warned: if the tree falls on your property without damaging an insured structure, the cost of removing the tree will not be covered.

And by the way, if you were still thinking of the overflowing pool in the rainy season, then here’s a word of advice. All you need to do is take out three to four inches from the pool right before the rains begin.

Is your checklist ready?

What is it that differentiates a regular homeowners’ insurance policy from that of other, more financially savvy people? These people ensure that they update their policies regularly. Got you there didn’t I? If you are like me and most other people, you haven’t bothered to update your policy to mention the new television you bought last fall. While there are no exact numbers, insurance agents say that a lot of people forget to update their insurance policy with everything inside the home.

And this could be a big problem if you are flooded out this hurricane season. While your basic home-owners policy will rebuild your home, it cannot replace what was inside, unless you document it. So if you want to replace the things you lost, you have no other option but to document your stuff. You can both take a picture of it or video tape it in your home and write up the information on the items. Then you should meet your insurance agent who can help you get everything important added to your policy.

Tips for a lesser premium

If you have high premiums to pay for your homeowners insurance there are a few things that can be done to reduce the amount. These tips are more applicable to homeowners who really don’t live in a high-risk zone. These tips are often forgotten and you could save a good number of dollars by making sure you incorporate at least a couple of them.

Do you know that by stopping smoking your premium can come down? And no, this is not a life or health insurance post but if you quit the habit you bring down your chances o a house fire, which equals less premiums. More reason to do yourself a huge favour health and money-wise!

Raise the deductible and this too leads to lesser premiums. Deductibles are the amount of money the homeowner pays toward a loss before the insurance company starts to pay according to the terms of the policy. By increasing the deductible to $500, $1,000, $2,500, or $5,000, discounts may be obtained, depending on the insurance company.

Do you know that by buying home and auto insurance from same provider you may get a discount? So ask around and get both from the same provider.

Remember if you are buying a new home your premium will be lesser than that of an older home. Insurers may offer a discount if the house is new. Even the choice of materials used in constructing your home could dictate your premium so check with your provider. Proximity to fire station, firefighters and fire hydrants also affects premiums.

Insure the home and not the land and shop around go online compare prices and get the best premium for the coverage you need. Install smoke detectors, burglar and fire alarm systems, or dead-bolt locks to beef up security and avail discounts.

If you are retired chances are that you may get discounts on premiums as retirees generally are assumed to better maintain their home and to spot fires sooner than working people. Like I said a number of things to check with your provider before buying the policy, right?

Tips to prevent electrical fires

While it is a good idea to take a good homeowners insurance policy to provide for any losses, it is an even better idea to prevent losses. As the age-old adage goes: Prevention is always better than cure. But that doesn’t mean you shouldn’t take a homeowners insurance policy. What I’m trying to say is that there are certain situations, which are under our control, and if we take care, we can prevent dangerous situations from occurring. According to statistics, home electrical fires claim the lives of 200 Americans each year and injure 1,500 more. Let’s check out some simple steps that will help you prevent loss of life or property from electrical fires.

• You must regularly check your electrical appliances and wiring. Faulty electrical outlets and old wiring are the main causes of electrical fires. Problems with cords and plugs, such as extension and appliance cords, are cited as the primary cause of home electrical fires.
• You must keep a look out for frayed wires and replace all worn, old, or damaged appliance cords immediately. Never overload electrical extension cords.
• The next highest causes of electric fire are electric stoves. However, it has been found that careless cooking is the reason for these fires and not stove malfunction. Here you must firstly learn the right methods of using electric stoves. Secondly, pay special care to all electrical appliances in the bathroom and kitchen and keep them away from wet floors and counters.
• Don’t buy an electrical appliance that doesn’t meet the UL standard for safety. You don’t want to compromise on your life for a few dollars less.
• Children should not be allowed to play with or around electrical appliances like space heaters, irons and hair dryers. Heaters are quite dangerous and you should keep clothes, curtains and any other inflammable items away from the heaters. A three-feet distance is recommended.
• Finally, always ensure that your smoke detector is in good working condition.

What you can do to hurricane-proof your home

Hurricane-season is here and you may still be able to do things to prevent damage but before we get into the list of things to be done let me get into the homeowners insurance bit first.

I know it’s easier said than done but get extra flood insurance if you are living near rivers, lakes or reservoirs and your regular homeowners insurance does not cover floods. Also get hurricane insurance if can still find insurers in your area and also do an insurance check on your home and find out how much your house is worth now and how much you will need to repair.

Insurance for your home is nowadays a big problem post Katrina. The whole home insurance sector is embroiled in a huge crisis, as insurers are not able to provide coverage with having to pay millions of dollars in claims. They are now not renewing policies and state-backed companies are reeling under huge debts. Seems like a dead end to homeowners who are expecting hurricanes in their localities.

So, what can you do to prevent damages to your home?

1. If you have a gabled roof try tying it down with additional braces and it should help prevent some damage but tile and aluminum roofs are preferable.

2. Doors can be protected with door bolt materials and garage doors can be reinforced with  horizontal bracing in each panel.

3. Most homeowners ignore their doors and windows while getting ready for a storm but there are things you can do. Nowadays you can protect your windows by installing a special hurricane fabric that's constructed to withstand winds of up to170 MPH. But, you can get adequate window protection for a lot less by adding storm shutters of wood or even plywood.

4. Lastly, if you have tall trees near the house structure remember to trim them as tall trees can fall on roofs and fences and just this oversight could give you a huge repair bill.

High waters near your home?

Rivers lakes and other water front property owners should be a wiser lot when it comes to homeowners insurance right? However, surprisingly homeowners with flood insurance cover are fewer than 15 percent taking both homes and other buildings along the river, a state official of Boise River country said last week.

Flood insurance is not cheap, especially along the river's edge but the rate goes down as you move away from the river. In some places flood insurance can go up to $350 a year. But as spring thaws the snow peaks the river waters are rising and making homeowners nervous.

So what can the waterfront homeowner do? The answer is simple make sure you have flood insurance and yes you need to get this insurance separately and it is not included in the regular homeowners insurance.

However, looking at the stats in some river areas there is a startling percentage of people who still have no flood insurance. Homeowners in a 100-year flood plain are required to get insurance but how can only 15 percent be the bothered about floods? This is despite the fact that state law requires Realtors to tell their clients "all adverse material facts actually known or which reasonably should have been known." Mortgage companies also require flood insurance to finance property within a 100-year flood plain.

So as waters rise people are slowly going in for flood insurance but the longer you drag your heels the lesser your chances of having flood insurance before the floods come in and cause your home several thousands of dollars of damages. Please remember that there is a thirty-day waiting period for flood insurance so if you don’t hurry up you might just end with no insurance when the flooding happens.

Come on people it’s not just the hot weather that can flood the rivers even a couple of days of rain can be enough for flooding. So go figure!

DIY Home Projects anyone?

Are you are DIY fanatic who is always chalking out projects for your home? Chances are that you have answered in the affirmative as more and more homeowners are plucking up enough courage for do-it-yourself home improvement projects.

So why do I say that chances are so? DIY is big money, the industry is growing and the stores are doing great business everywhere. We now have all TV channels with atleast one DIY show not to mention the other lifestyle channels with a growing fan base. These shows either have a group of people or an expert like Nate Berkess telling you how to DIY.

Stay with me now… So all this DIY on your home and any what if you are not successful? This could be bad as DIY jobs themselves are often expensive and if you mess up that's double the expense. So what can a DIY fledgling do? You guessed it right get homeowners cover just for that. Now keep in mind that you don’t have cover for the slip-ups you make with DIY with your standard perils included in your homeowner’s insurance.

DIY homeowners in the UK can take out accidental damage cover as an add-on to buildings and contents insurance. This will typically add between £20 and £60 to an annual premium and cover for damage to fittings or the home itself caused by disasters.

The most common DIY disaster in the UK is spilling paint on carpets, with replacements costing about £1,250. Repairing damage caused by nails being knocked through pipes can cost as much as £2,000. No small amount this and if you are accident-prone you may want to pay for some add-ons to your homeowners insurance.

You may be lucky if you have full accidental damage insurance and in this most common DIY disasters will be covered. However bigger projects like putting in a roof or building a new bathroom you may want to check with your insurer first. The last thing YOU WANT is to end up with a DIY disaster that could have had cover for a small add-on.

Take Rebuilding Cost Into Consideration While Buying A Homeowners Insurance Policy

When you are buying a homeowners insurance policy, remember you need coverage for the physical structure and not for the land that the house is built on. As a result, you would need to determine how much would it cost to rebuild your house?

An agent can help you in determining the basic costs. At the same time there are certain factors that have an effect on the rebuilding cost. These include the location of your house, in terms of the city and the basic rebuilding cost here. Next would come determining the kind of roof that you have and its cost.

You would also need to take into consideration the number of floors that your house has and the number of rooms and bathrooms. Ideally, you should take the advice of a contractor or a builder while determining the cost so that you have an accurate figure and can buy your homeowners insurance policy accordingly.

Pointers to win back a denied claim

What do you do when homeowner insurance company denies your claim? Don't give up, as there are a few things you can do to fight back.

Don’t take the “no” as the last and final word chances are that going back to the insurer can get you a reversal in decision. Stats say you have a 50% chance in getting back the claim and only 1% claimants question the denial!   

Another handy trick is to ask for the denial in writing with ample explanation for denying the claim. You may have guessed by now that most insurance providers are really not comfortable in giving anything in writing.

Now that you have the reasons in writing comb your policy for the reasons for denial and note down points that don’t seem valid enough. Make a query in writing to the insurance company quoting the policy wherever required.

Insurance companies have a claim filing process, which dictates the time frame within which claims should be filed. Claims may be denied stating “claims process errors” arising out of forms not being filled correctly or delay in filing for claims.

Always contest "claims process errors" as an insurance company cannot usually refuse to pay a claim that is otherwise valid just because of a claim filing error in most legal jurisdictions, unless it can show that your error either harmed the company, or prevented it from investigating adequately.

Call the State Insurance Department or the Department of Insurance and know your rights.

Keep in touch with your insurer every week make sure to talk to supervisor’s and managers and follow up with letters referring to phone calls. Keep records of names and copies of all communications with the insurance company.

Hire an agent to fight your claim and usually he will pay himself when he wins. The "no win no fee" arrangement is great but check how much you will pay if you win and who will pay before hiring the agent. Lastly, hire a lawyer - insurance companies are prompt whenever a lawyer gets on the scene but it can be costly.   

Selecting The Right Insurer

Are you looking at purchasing a homeowners insurance policy for the first time? Well, do make it a point to select the right insurer. There are a few basic points that need to be kept in mind in order to make the ideal selection.

The first and the foremost in this case of course would be the coverage that you require and if the insurer offers that coverage. The next would be the rate that the insurer is offering. Ideally, you should compare that rates that are offered by different companies and select the one that is the best.

Following that, you need to take into consideration the service that the company offers and the complaint rate. The complaint rate is determined by comparing the number of complaints that are accepted or approved by the state's insurance regulators against a given company, as a percentage of the total amount of policies that are written by the company in that state. This would help you in determining if the company makes it a point to satisfy its customers. If this is not the case, then you should stay clear of such a company. Every company would have a few complaints as it is virtually impossible to satisfy all customers, but at the same time the higher the ratio, the more are the chances that even you would not be satisfied.   

Once you have selected the homeowners insurance company, make it a point to carry out an in depth study about the company. Research its background and also take into consideration the asset and the liability ratio.  This ratio can help you in determining the financial strength of the company and in determining that the company would be able to meet financial demands even in the case of a major disaster.

With these basic factors taken into consideration, you can rest assured that you would make the right choice.

Basic Pointers To Get The Ideal Homeowners Insurance Policy

Buying a homeowners insurance policy? Don’t just take the advice of an agent or simply pick up the cheapest policy that seems to fill your needs. Instead, look at the policy in detail, consider the coverage that it offers and try cutting costs wherever you can. At the same time, make sure that you have enough coverage.

First and foremost decide the coverage that you require. Read the policy in detail, if you feel that there is certain coverage that you do not require, exclude it. In case you feel that there are certain areas that need to be addressed and covered through your insurance policy, get those included.

Review your insurance policy annually. You might have added certain things to your home that would imply that you need extra coverage. At the same time you might have purchased safety or security equipment that can help you in lowering rates. It is important to update your policy regularly.
Try purchasing your auto and homeowners insurance policy from the same insurer, this would help in reducing the premium that you have to pay. Also, if you have been with the same insurer for a while, then he might offer a discount to you when you renew your policy.

Also, remember that if you have a newly constructed house, you would probably have to pay lower premiums. And your homeowners insurance premium is also affected by the type of construction of your house. In case you have any doubts about this, you can consult the insurer or the agent.

But before, you finalize the policy, make sure that you have enough coverage and that too at the best rate.

Planning Home Improvement? It's Not Late To Add Riders to Your Policy

Are you planning on a home improvement project? Have you budgeted for all possible expenses? You may not have catered for some unforeseen financial troubles that may crop up for which you really have options for in your homeowners policy.

Do you know that homeowners insurance only protects what is already there and not the appendages or improvements you may have planned for your home? 

What are the liabilities you need to cater for while doing a new project on your home?

1. Let’s assume you add an awning to your porch and it accidentally falls into your neighbors’ property and cause some damage. This is a new part to your home and therefore not covered by your homeowners insurance.

2. While the project is going on you may face the threat of materials being lost, damaged or stolen which will need to be replaced. This will not be covered by your standard policy.

3. I’ve known homeowners who have had to deal with injured workers and neighbors while such projects are being executed with no insurance help. Sometimes even passers-by can end up having a fall as a direct result of the work being done in your home. You can imagine having to worry about this expense while doing a project on your home.

However, it is not too late! Check with your insurance agent and have an open talk about your home improvement projects and work out an added rider that is to be paid for the time of the project. Often these riders don’t cost too much and what you get is peace of mind to focus on your home.

Of course, you can be sure that costs for this added security would vary with size of the project and will be somewhere between $200 to $ 750. Remember that part of your project will be covered by your contractor’s policy and so have a talk with them about it and get their know-how on this.

Enough Homeowners Insurance Coverage?

According to a recent survey carried out by Marshall & Swift/ Boeckh, two out of every three homeowners in Edmond do not have enough insurance coverage.

This can largely be attributed to rising cost of construction. As a result if you have not updated your homeowners insurance policy in the recent past, you are probably under insured. At the same time if you had made improvements in your house or have modified it and this is not reflected in your policy, then it probably means that you once again, do not have enough coverage.

Also, a number of insurers have modified their guaranteed replacement policies in order to serve their interests. As a result, this negatively affects the coverage that you hold.

So ideally, instead of waiting till disaster strikes, take heed of the warning and take the necessary steps.
The Edmond Sun reports:

Each year this company estimates construction costs and annually reviews three million insurance polices.  The most recent analysis revealed that the typical homeowner is 27 percent underinsured.

Re-evaluate Homeowners Insurance Coverage

Do you have enough homeowners insurance coverage? Don’t just say yes, instead evaluate your policy. Read the details given in your policy and in case you have any doubts, clarify those with your insurer or the agent.

The homeowners insurance coverage should be on your house and n