Archive for the ‘Home Insurance’ Category

A lot of landlords are unaware of what their home insurance covers and are shocked to find out that they are actually underinsured. It is important to be aware of the real value of the insurance cover because even if home prices are low, rebuilding costs are quite high.

Usually, the value of rebuilding a property is not the same as the market value; therefore insurers and surveyors share some information that could help in assessing the real worth of your property. Just make sure you get a surveyor’s report.

In determining the rebuilding cost of your home, you have to know its dimensions and floor area. On the other hand, you have to make sure of your insurance amount and cover so to avoid expensive loss.

The hidden costs of rebuilding your property that are most likely covered by your insurance are the following:

• Site clearance costs
• Architect’s fees
• Survey costs
• Cost of rebuilding the property into its original state
• Compliance with local authority and government requirements

Also, having the right amount of landlord insurance could raise your premium.
There are four specific areas where insurance protection for landlords falls:

1. Building and/or contents insurance that protects the landlord’s physical building and its contents
2. Legal expenses that covers the landlord’s incurred legal costs when a tenant damages a property or refuses to leave
3. Rental protection that guarantees the rent if ever the tenant defaults
4. Emergency home assistance that provides cover for emergency call outs

Home building insurance is also different from landlord’s building insurance in a way that the latter covers properties for residential use and a requirement of landlord mortgages. Also, the landlord’s contents insurance covers the landlord’s properties that are being used by the tenant such as a refrigerator, television, and other furniture.

Legal expenses insurance offers access to legal expertise and costs of legal actions such as evicting tenants and recovery of costs due to malicious damage.
Rent guarantee insurance protects the landlord when the tenant fails to pay the rent. This is very helpful more especially to those landlords who just rely on the monthly rents of tenants for their income.

Emergency insurance is very convenient for a landlord’s everyday life. These emergency repairs could be electrical system repairs, heater, plumbing, security, etc.
Home insurance, building insurance, or landlord’s insurance—all are very important. Be sure that you are not underinsured to avoid worse problems in the future.

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• Is Your Home Insurance Enough?
• Review Your Home Insurance to Prepare for the Winter Months

Homeowners in Texas may get home insurance relief and other property tax cuts as Senate finally considers Texas legislature which tackle these concerns – two of the biggest expenses of homeowners.

Around two years ago, lawmakers were hesitant to tackle real estate issues like high home insurance rates and runaway property appraisals. However, with the current worsening economic conditions, Senate is expected to consider issues affecting many homeowners. Apart from the high home insurance cost, other concerns are stricter and tighter control of home construction practices and mortgage broker regulations, and increasing electric utility rates. One senate proposal plans to give counties and cities the right to impose a half a cent increase of sales tax. The revenue would then be used to cut property taxes.

For homeowners, home insurance and taxes may be the expected priority since costs of these have been rising. One homeowner in Ellis County, financial manager Paul Perry, reports that his property tax increased 10 percent yearly. According to Perry, the problem has been intensified by rising property appraisals which bring about increasing tax bills.

Another disgruntled homeowner in Richardson, Nita Berry, says that her insurance bills have risen 60 percent in the past 5 years due to the yearly increase. If the trend goes on, it is doubtful if homeowners could continue to pay for coverage or finally have homeownership. This has caused much stress for homeowners like Berry who has lived in the same home since 1979.

Critics say that previous laws passed regarding these problems have not lived up to expectations. In fact, a recent study about the property tax system showed high dissatisfaction among homeowners who feel burdened by taxes even with the one-third school property tax cut last 2006.

With Senate now willing to discuss home insurance rates and property taxes, homeowners are hopeful of concrete help from government. Another lifeline would be President Barrack Obama’s financial rescue plan. Let us just hope that the help does not come too late.

Related Posts:

• Home Insurance to Include Fire Fighting Fee
• Home Insurance Companies Raise Their Rates in Two States
• Home Insurance Companies in Florida Got Rate Hike Requests
• House Insurance Reform in Texas Still Pending
• House Insurance Cancellations to Be Prevented by Bill in Louisiana

State Farm’s arm in Florida says that it has to get out of home insurance business in the said state.

Citing weakening finances, the company said in an official statement, that it was not able to get approval for the adequate home insurance rates. However, the company still plans to keep auto insurance while other State Farm unites will continue selling health, life and other financial services. Out of the 655,000 policyholders affected by the move, 41, 563 are in Miami-Dade County, 47, 521 in Broward, 38, 868 in Palm Beach and 85 in Monroe County.

The proposal by State farm plans to phase out property insurance gradually in a two year period to give its clients time to find another insurance company. Regulators are given 90 days to review the proposal and approve or reject it. If approved by state insurance regulators, the company has to give a 180-day notice to affected policyholders. State Farm will then cease giving full property policies which include condominium, renters, boaters, mobile home, commercial liability, commercial marine, business property and homeowners insurance.

According to Insurance Commissioner Kevin McCarty, regulators have known about State Farms proposal for months. In fact, the home insurance company submitted last December the proposal detailing its plan to cut Florida policies by 2010.

McCarty gave assurance that he will give protection to Florida consumers against unnecessary destabilization in the home insurance market and to give them access to fair home insurance rates.

State Farm in Florida was denied its original proposal by the Florida’s insurance commissioner to increase fees by 47.1 percent. State Farm said that this figure was conservative as analysis supported a 67 percent increase.

President of State Farm Florida Jim Thompson said that the situation was unavoidable as the company’s resources would not be enough to cover expenses and claims in the future. He said that the home insurance company did not want to make the move and regret its effect on its clients, agents and employees.

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• House Insurance Prices Expected to Increase
• Home Insurance Companies in Florida Got Rate Hike Requests
• Home Insurance Secrets You Might Not Know Yet but Should

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A [...]

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