Have You Done a Home Inventory?

How old is your bedroom furniture and what did you pay for it?  Don’t know?  That’s okay, let’s try an easier question.  When did you buy the TV in your family room and is it a plasma, LCD or a LED?
Whether you are the victim of a burglary, a fire or a tornado, most people are comforted they have insurance to cover the losses.  However, unless you’ve filed a claim, you may not be familiar with the procedures.
The adjustor will want to know the date and how the loss occurred.  Assuming you have contents coverage, the claim for personal belongings is separate from damage to the home.
You’ll be asked to provide proof of purchase, like receipts or cancelled checks, or a current inventory.  If they’re not available, you can reconstruct an inventory from memory.  The challenge is trying to remember things you may not have used for years and may not miss for years more.
Relying on memory can be a very expensive alternative.  A prudent homeowner will create a home inventory with pictures or videos while all of their belongings are in the home and they can see them.
Download a home inventory to make your project a little easier.

REFUSING TO RENEW A POLICY AND POLICY CANCELLATION

Insurance companies agree to insure clients against unexpected occurrences in return for a sum of money called a premium.

Occasionally, insurance companies divest themselves of current clients by either:

      a.  refusing to renew the current insurance policy, or

      b.  cancelling the current insurance coverage for a client. 

Such actions are normally taken against clients an insurance company deems “bad risks.”  A bad risk client is usually a client who has either submitted too many claims in a given time period or who has submitted a very large claim (in comparison to the premium that has been collected by the insurance company).  Of course, fraudulent claims made by a client, if discovered, will lead to an immediate cancellation of an insurance policy followed by legal action against the client. 

If an insurance company refuses to renew its insurance coverage for a client, normally your insurance agent can find another insurance carrier to insure you.   However, when a client is “cancelled” by an insurance carrier, it is more difficult to find a new insurance carrier.

For more detail regarding an insurance policy non renewal or an insurance policy cancellation, contact either Andrea Shearer, Tessa Everman, or Burton Heginger at Triplett Companies at phone number 515/232-5240. 

Renter's Insurance

An often forgotten insurance coverage is called “renter’s insurance.” 

Renter's insurance provides great coverage for damaged and/or stolen personal items for those who rent their housing. It also provides excellent liability coverage.

If rented housing is damaged by fire, tornado, etc. the renter will have no coverage for destroyed or lost personal items, no coverage for alternative housing (such as room in a motel, etc.) while the damaged rental unit is being repaired.

 

With liability coverage, your assets are being protected. For example, if the apartment or house that you rent burns to the ground and you are found responsible for causing the fire, you will have to pay for the home or apartment to be rebuilt. If you have renter's insurance, your insurance company pays for the home or apartment to be rebuilt.

The cost is about $10 per month for a good renter insurance policy.

Contact your favorite insurance agent (Andrea Shearer, Tessa Everman, Burton Heginger, or Ryan Edgington) at the Triplett Companies (515/232-5240) if you have questions about renter’s insurance and would like a premium quote for Renter Insurance coverage.    

 

PROPERTY INSURANCE REPLACEMENT COST

“Replacement cost” insurance is a type of property insurance coverage that generally pays for the “depreciated” value of the damaged property.

 

Subsequently, the actual cost of restoring the property would most likely require additional funding from you to renew the property to its condition at the time of the loss.

 

If you find yourself in this situation, be sure to complete the repairs on the damaged property as soon as possible as most policies have a time limit for payout.  Also maintain accurate records regarding all expenditures incurred in the restoration of the property.

 

Contact your favorite insurance agent (Mike Carter, Andrea Shearer, or Tessa Everman) at the Triplett Companies (515/232-5240) today for additional insight and information regarding the “replacement cost” clause of your property insurance policy.

Home Insurance Premiums to Increase

The following short article was recently published in Bottom Line: Personal*

 

        “Home insurance premiums to rise for the third straight year, warns insurance

expert Robert Hunter**.  Insurers expect the increase for 2011 to average 2 per
cent to 3 per cent – more than double the 1 per cent rise in 2010.  State Farm and
Allstate, the two biggest insurers raised rates by more than 7 per cent last year and are expected to increase them again this years.  What to do:  Shop around – you can still find lower rates without sacrificing good service.”

 

      Contact your favorite insurance agent (Mike Carter, Andrea Shearer, or Tessa Everman) at the Triplett Companies (515/232-5240) today for a new price quote for your home insurance. 

PROPERTY INSURANCE REPLACEMENT COST

“Replacement cost” insurance is a type of property insurance coverage that generally pays for the “depreciated” value of the damaged property.

 

Subsequently, the actual cost of restoring the property would most likely require additional funding from you to renew the property to its condition at the time of the loss.

 

If you find yourself in this situation, be sure to complete the repairs on the damaged property as soon as possible as most policies have a time limit for payout.  Also maintain accurate records regarding all expenditures incurred in the restoration of the property.

 

Call or e-mail Mike, Andrea, or Tessa at the Triplett Companies today for additional insight and information regarding the “replacement cost” clause of your property insurance policy.

Mold Exclusion

Most all insurance companies (carriers) have a “mold exclusion” in their property insurance offerings.

 

Mold damages should be covered as long as the “mold causing” event was due to an insurance-covered event, such as flooding, rainwater coming through windows broken during a hail storm, etc. 

 

Should your insurance company turn down your claim for mold-related repairs, consider hiring a “mold remediation” company to determine the age and source of the mold.  Of course, such a service may cost several hundred dollars. 

 

Call or e-mail Mike, Andrea, or Mandee at the Triplett Companies today for additional information and help in determining your mold insurance coverage.   

 

Sooner Is Better Than Later

Buyers who have delayed purchasing a home due to concerns about what might happen to the tax laws affecting home ownership should feel comfortable about getting back in the market. The recent legislation passed by Congress and signed by the President continues to value homes as a favored investment.
For a summary of specific real estate provisions in the "Fiscal Cliff" bill, click here.
Whether the delayed purchase is for a home to live in as your principal residence or to use as rental property, taking action sooner is better than later.
Reasons to buy now:

1. The house payment with taxes and insurance is probably cheaper than the rent.
2. Rents will continue to rise making the difference even greater in the future.
3. Lock-in the principal & interest payment with a fixed-rate mortgage.
4. 30 year mortgage terms are available to most borrowers.
5. The mortgage interest deduction is intact for the majority of taxpayers.
6. The capital gain exclusion for principal residences up to $500,000 remains in place.
7. Prices are going up due to lower inventories and several years of low housing starts.

Contact me about any specific questions you have or information you need.

Umbrella Insurance

The word “umbrella” is indicative of the type of coverage available to a client that would “cover” (as does the umbrella) him/her above her/him current insurance coverage levels.

 There are two types of such umbrella coverage.

 One type covers the client for claims above his/her current insurance policy coverage levels up to the umbrella level (say, any claim above the $100,000 current coverage up to the umbrella coverage of say $1,000,000 for an additional $900,000 coverage).

 The second type of umbrella covers all claims from zero to the upper dollar limit of the umbrella.  This type of umbrella coverage is often called “true umbrella” coverage.

 More and more individuals and companies are securing umbrella insurance coverage.  The price for such coverage is very reasonable and will provide considerable peace of mind to the insured.

Contact Mike, Andrea, or Mandee at the Triplett Companies and ask about umbrella coverage, its value for you and its cost. 

Cancelling Insurance

Do not assume that your insurance policy will be cancelled without any adverse actions if you simply do not pay your insurance premium.

 

By not paying insurance premium, the insurance company will cancel your policy after their stated grace time period, making your responsible for earned premium. Additionally, the carrier will most likely report your non-payment to a credit bureau therefore adversely impacting your credit score.  And it is possible that a lower credit score will negatively affect your ability to obtain “good insurance rates” in the immediate future.

 

At renewal time, if you choose to not renew your insurance policy, be certain to advise your insurance agent or insurance company that you do not intend to renew the policy. Your insurance agent will ask you to sign a cancellation form, and then your policy will be cancelled. 

 

Ask Mike, Andrea, or Mandee at Triplett Companies to ensure your policy remains in force or is properly terminated. 

     

Discounts on Insurance

It’s Christmas time and maybe you haven’t received your holiday bonus, or perhaps you spent a little too much on gifts, and now you dread your insurance bill arriving in the mail.

 

Never fear, discounts are here!

 

Multi policy:

Most insurance companies offer discounts for multiple insurance policies with their company. Consider combining your vehicle, home, and umbrella policy with one carrier and see how much you can save!

 

Good Student:

If you or your child is under 25, in school, and has a GPA of 3.0 or below, you qualify for the Good Student Discount! Simply send us a copy of your most recent transcript showing your GPA.

 

Limited Driving:

Do you only drive your vehicle to church on Sundays? Does your vehicle sit in the garage most of the time? Some carriers provide limited driving discounts.

Loyalty:

Did you know that insurance companies actually give you with a discount for being loyal to them? Even if you do decide to switch insurance companies, you can receive a discount for the number of years you were with your old insurance company.

 

Be sure to contact Mike, Andrea, or Mandee at the Triplett Companies and ask them to compare the cost savings you could enjoy by utilizing some or all of these discounts!

 

FDR's New Deal

A 30 year fixed-rate mortgage hasn't always been the standard. As part of FDR's New Deal in 1934, the Federal Housing Administration was created to help Americans purchase homes with affordable terms.
Prior to then, many loans had an amount due at the end of the term called a balloon. Most mortgages had adjustable interest rates even though some might be fixed for a short time. While banks would loan money on a home, they retained the right to call the note due at any time which could exert considerable stress on borrowers.
FHA, during this time, introduced mortgages that offered a fixed rate of interest to the borrower for a 30 year term. This fully amortized loan provided borrowers a financial vehicle that would help them achieve the American Dream while minimizing the risk of having a loan called without the resources to pay it off. It brought long-term stability to the housing market and helped stimulate the economic recovery at a very difficult time in our nation's history.
Roughly, a third of the mortgages created in 2011 were less than 30 year terms. Many homeowners, similar to those after the Great Depression, would like to get their home paid for as soon as possible. Shorter term mortgages typically have a lower interest rate but higher payments due to fewer years to amortize the mortgage.

Primary Factors For Investment

Rental properties have four primary factors that contribute to a return on investment. Based on market conditions and investor strategies, the individual motivating factor can change for property owners.
There was a time when the benefit of tax savings to offset income from other sources was considered important to some investors. However, in today's environment, they are more likely valued as incidental benefits.
Some investors expect appreciation to deliver the satisfactory results which can be reasonable over time if a reliable appreciation rate is used. Savvy investors today are using conservative estimates for long-term holding periods.
Leverage occurs when borrowed funds are used to control a larger asset. Positive leverage can actually increase the yield on an investment.
The fourth component that contributes to a property's yield is the cash flow. When the rents are greater than the expenses of operating the property and servicing the debt, there is a positive cash flow. A property with a good cash flow doesn't have to go up in value to justify the investment.
The combination of lower prices, incredibly low mortgage rates and rising rents are attracting investors to rental properties that include single-family homes in predominantly owner-occupied neighborhoods.
Even if you were to ignore the benefits of tax savings, potential appreciation and leverage, the attractive cash flows make rental property a very smart investment alternative. If you're curious, contact me for more information.

Flood Insurance on Your Home

A number of things can cause water damage to a home and it's important to know whether they're covered by your insurance policy. Some water damage may be covered and other may not be. Generally, you need an incident to invoke coverage rather than something gradual due to lack of maintenance.
However, some incidents are specifically exempt from homeowner policies such as floods. A flood can be described as rising water due to overflow of inland or tidal waters or unusual and rapid accumulation or runoff of surface water from any source.
Homes in designated high-risk flood areas with mortgages from federally regulated or insured lenders are required to have flood insurance.
Even if you don't live in a dedicated flood zone, you could be affected by flood damage. Review your policy about water damage and call your insurance agent to get a better understanding. Ask if you need to purchase additional coverage or separate flood insurance along with other questions.
Flood insurance can be purchased for the building and the contents. The average flood insurance policy costs about $600 per year. For more information, see the National Flood Insurance Program.

The Value of Your Home

Knowing the current value of your home is important when you're considering a move, refinancing or getting a home equity loan. Prices are determined by recent sales and the supply and demand of current inventory.
The process of selecting comparable properties involves matching similar features like bedrooms, baths, square footage and updates. In addition to price, there are other factors that affect the value and ultimately, the sale of a home.
Location plays a significant role because by the unique combination of improvements and land. Beneficial considerations would be convenience to schools, shopping, transportation and proximity to freeways. Undesirable concerns could include being in the vicinity of busy streets, high-tension lines, commercial property and other things.
To receive a computerized estimate on the value of your home that includes prices of comparable homes that have sold recently and homes currently for sale, click here.
Value is not totally objective and does require a certain amount of subjective considerations. If you have questions after you receive your report by email, contact us and we'll be happy to talk to you about your concerns.

Owning a Home

Most people agree that homeownership rules! When asked, people say they want a home they can call their own, to raise their family, share with their friends and to feel safe and secure. It also accounts for the majority of most people's net worth.
These rules can help protect your investment and make homeownership more enjoyable.

1. Don't overpay for your home
2. Maintain your home's condition
3. Minimize your assessed value to lower property taxes
4. Make extra principal contributions to save interest and build equity
5. Validate the insured value of improvements and contents
6. Stay current on surrounding property values
7. Make mortgage interest payments deductible
8. Invest in capital improvements that increase market value
9. Don't over-improve the neighborhood
10. Keep records of capital improvements and other maintenance

We want to be your personal source of real estate information and we're committed to helping from purchase to sale and all the years in between.

Insurance: Why Should We Have It

The purpose of insurance is to shift the risk of loss to a company in exchange for a premium. Most policies have a deductible which is an amount the insured pays out of pocket before the insurance starts covering the cost of the loss.
In the process of managing insurance premiums, policy holders often consider adjusting their deductibles. Lower deductibles mean less money out of pocket if a loss occurs but obviously, results in higher premiums. Higher deductibles result in lower premiums but require that the insured bear a larger amount of the first part of the loss.
A small fire in a $300,000 home that resulted in $2,500 of damage might not be covered because it is less than the 1% deductible. If the homeowner can afford to handle the cost of repairs in exchange for cheaper premiums, it might be worth it. On the other hand, if that loss would be difficult for the homeowner, a change in the deductible could be considered.
It is a good idea to review your deductible with your property insurance agent so that you're familiar with the amount and make any changes that would be appropriate.

Natural Disaster Insurance

Natural disasters may be defined as involving Mother Nature and her fury! Natural disasters particularly often included wind damage and flood damage. Of course, hurricanes and cyclones often cause additional damages due to power outages.

Flood Insurance is available through both private and government programs. The dollar premiums for such insurance coverage however are becoming more and more expensive as storms become increasingly prevalent.

Generally speaking homeowner insurance policies do not cover flood damage caused by a natural disaster. Flooding caused by frozen pipes may or may not be covered in a homeowner policy, but reimbursement for such damages is normally accompanied by a homeowner cost-sharing mechanism, known as the deductible!

Wind damage is normally covered by homeowner insurance policies, but wind damage caused by a hurricane or cyclone may involve deductibles based on a percent of the home's actual insured value.

Several points to remember about natural disaster insurance coverage and claims you submit for reimbursement for that damage:

1. Review your coverage with your insurance agent so you fully understand the coverage you have for flood, hail, wind, etc.
2. Review the type of deductible you have for any "natural disaster" insurance coverage.
3. Record your insurance policy number and your insurance agent information in several places other than your home.
4. Maintain an accurate record of the contents of your home detailing the type of possession, the cost of the possession, and when and where it was purchased. This record could be both a video and fact record. An online application that might help guide you in this effort is available at the Insurance Information Institute's website http://www.iii.org/software/. Search for the home inventory application.
5. Maintain an accurate, written record of your conversations with the claims adjuster who reviews the natural disaster to your home and personal property.

It pays to understand your insurance coverage and how to proceed when a disaster occurs.

Refinancing

Some people believe they shouldn't refinance more often than once every two years. The determining factors are if you'll lower your payments and plan to stay in the home long enough to recapture the cost of refinancing. If so, you should consider refinancing.
Interest rates have actually come down significantly in the past 12 months and even more in the past 24 months. According to the Freddie Mac Primary Mortgage Market Survey®, rates on a 30 year fixed rate mortgage are down to 3.6% in August, 2012 compared to 4.27% one year earlier.
Refinancing in the example below would save the homeowner $67.04 per month and they would recapture the cost of refinancing in 3 years and 9 months based on approximately $3,000 of closing costs.
Click Here to make your own projection on a Refinance Analysis calculator.

PERSONAL PROPERTY AND CASUALTY INSURANCE PRICES CONTINUE TO RISE IN 2012

Insurance premiums are on the rise.

Insurance companies state that the market has been "soft" the past few years, but that is no longer the case - that is, the cost of insurance for most homeowners and vehicle owners is on the rise! Market Scout reports that personal insurance rates rose as much as 3% in the month of September 2012! (For additional detail, see the 08 October online report from Property Casualty 360 at >propertycasualty360.com<)

What can you do to reduce your cost of insurance and still maintain an adequate level of insurance? Contact your independent insurance agent and ask that he or she seek other quotes for your insurance.

Call Mike Carter or Andrea Shearer at Triplett Companies and ask for their help. Most likely, Mike or Andrea can save you a lot of money!