© Home Buyer’s Legal Info 2012
LEGAL INFORMATION FOR NEW HOME BUYERS
HOME BUYER’S LEGAL INFO

THE LATEST...

Why you should always shop

around for your home and car

insurance

If you want to save money on anything comparison shopping is the only way to go. And that’s especially true for home insurance … A huge percentage of people never shop for their insurance needs. That's not necessarily a good idea considering that modern American business punishes loyalty rather than reward it. The Wall Street Journal reports that roughly 1 in 3 people never shop for their auto insurance. Almost half never shop for their home insurance. Yet if you do shop around, particularly for auto insurance, a new report from NerdWallet.com says you'll likely save one-third on your premiums. Nearly half of all big auto insurers use a data mining technique called price optimization when they develop a customer loyalty index number on you. That number tells them whether or not you shop around or if you're the kind of person to stay with the same company year after year. If they determine you're loyal, they will keep raising your rates year by year to make you more profitable for them. The increases will be incremental, but not enough to drive you away as a customer. My recommendation is even if you are a loyal person, you should shop your insurance every third year. If you find a better deal, call your current insurer and tell them. They may lower your rates. The thing is, insurers steadily beef up profits the longer you stay with them. They exploit creatures of habit. That's one of the ironies of modern capitalism, as I mentioned. The deals you see, particularly in the technology arena, are typically for new subscribers only! I've never understood that. You may be surprised at how much you can save when you compare rates. Here’s a site where you can get cheap home insurance quotes to compare. You can read more at: wsoctv.com

Get Help

click this link for information regarding real estate attorneys in your area.

How to Act Smart in Matters Concerning Your

Homeowner’s Insurance

If you apply for a mortgage loan, your lender will most likely ask that you get a minimal ‘hazard insurance’. Usually, hazard insurance comes as a part of your standard homeowner’s policy. As its name suggests, it covers damages that are unintentional, like damages by hail, wind, theft, smoke, vandalism and other similar occurrences. Even though your lender makes it necessary for you to obtain hazard insurance, such minimal cover may not serve you very well. So, it may be a good idea to purchase a comprehensive homeowner’s policy, along with extensive hazard coverage and liability insurance.

What does a homeowner’s policy cover?

Your hazard coverage is most likely to not only cover your house, but also cover personal items, furnishings, and structures on your property, like your separate garage or your pool. However, keep in mind that if you use a structure for a purpose that is nonresidential, it may not be covered. Also, what you need to remember is that hazard coverage offered by the majority of policies does not cover any damage resulting from natural disaster, or damage to business equipments, and jewelries or art items over a fixed amount. So, if your house is located in a region that has high risk of flood, fire, earthquake or any other natural disaster, you may want to purchase additional cover. The same applies if your abode is home to expensive jewelries, business equipments, or artworks. Certain personal liabilities are also covered by most standard homeowner’s insurances. For instance, if your mail carrier hurts himself by tripping over your child’s skateboard, or your cat claws him for some reason, your insurance will cover his medical expenses till a certain point, including any other losses. It does not even matter whether the damage occurs within the perimeters of your house, or not. In case your kid takes his skateboard through your neighbor’s new cement driveway, for example, that will also be covered. This part is not made mandatory from your lender’s end. But, having it will increase your peace of mind.

Finding an insurance policy when things are not easy

In certain states, fining a good homeowner’s policy has become quite tough, especially in Texas and California. The reason is that insurers typically have to pay very highly in case any disaster or other unexpected event occurs. If you have, or your seller has, submitted a claim regarding water damage previously, you may find that it is nearly impossible for you to get a good homeowner’s policy. The situation will likely be the same in case you have filed insurance claims before. If obtaining a homeowner’s insurance is tough in your location, it may be a smart strategy to negotiate with your seller and make having such an insurance compulsory for finalizing your sale.

The importance of not submitting claims for minor losses

Once you successfully get a satisfactory policy, make sure that you guard it. Try not to file claims that you can easily cover yourself. If you file two or more claims, your insurance rate may increase drastically, or worse, your whole policy may get terminated. Make sure that you get a policy which offers you high deductible. Your lender, however, may ask you to not get anything that has deductible higher than $1500, or a similar amount. That is because your lender has to make sure that you will not find yourself in a situation where you are not able to afford your deductible and, ultimately, have to devalue your house, which is also your lender’s collateral.  

Where to head next?

In case you want further information about homeowner’s insurance policies, be sure to visit the site United Policyholders, or UPA nonprofit resource of information, the site gives consumers a platform for voicing their opinions regarding every type of insurance policy in all the states. You can visit this site to compare rates and get cheap homeowners insurance quotes.
Mortgage Contract, House, Male Icon, Question Mark
© Home Buyer’s Legal Info 2012
HOME BUYER’S LEGAL INFO

THE LATEST...

Why you should always shop around

for your home and car insurance

If you want to save money on anything comparison shopping is the only way to go. And that’s especially true for home insurance … A huge percentage of people never shop for their insurance needs. That's not necessarily a good idea considering that modern American business punishes loyalty rather than reward it. The Wall Street Journal reports that roughly 1 in 3 people never shop for their auto insurance. Almost half never shop for their home insurance. Yet if you do shop around, particularly for auto insurance, a new report from NerdWallet.com says you'll likely save one-third on your premiums. Nearly half of all big auto insurers use a data mining technique called price optimization when they develop a customer loyalty index number on you. That number tells them whether or not you shop around or if you're the kind of person to stay with the same company year after year. If they determine you're loyal, they will keep raising your rates year by year to make you more profitable for them. The increases will be incremental, but not enough to drive you away as a customer. My recommendation is even if you are a loyal person, you should shop your insurance every third year. If you find a better deal, call your current insurer and tell them. They may lower your rates. The thing is, insurers steadily beef up profits the longer you stay with them. They exploit creatures of habit. That's one of the ironies of modern capitalism, as I mentioned. The deals you see, particularly in the technology arena, are typically for new subscribers only! I've never understood that. You may be surprised at how much you can save when you compare rates. Here’s a site where you can get cheap home insurance quotes to compare. You can read more at: wsoctv.com

Get Help

click this link for information regarding real estate attorneys in your area.

How to Act Smart in Matters

Concerning Your Homeowner’s

Insurance

If you apply for a mortgage loan, your lender will most likely ask that you get a minimal ‘hazard insurance’. Usually, hazard insurance comes as a part of your standard homeowner’s policy. As its name suggests, it covers damages that are unintentional, like damages by hail, wind, theft, smoke, vandalism and other similar occurrences. Even though your lender makes it necessary for you to obtain hazard insurance, such minimal cover may not serve you very well. So, it may be a good idea to purchase a comprehensive homeowner’s policy, along with extensive hazard coverage and liability insurance.

What does a homeowner’s policy 

cover?

Your hazard coverage is most likely to not only cover your house, but also cover personal items, furnishings, and structures on your property, like your separate garage or your pool. However, keep in mind that if you use a structure for a purpose that is nonresidential, it may not be covered. Also, what you need to remember is that hazard coverage offered by the majority of policies does not cover any damage resulting from natural disaster, or damage to business equipments, and jewelries or art items over a fixed amount. So, if your house is located in a region that has high risk of flood, fire, earthquake or any other natural disaster, you may want to purchase additional cover. The same applies if your abode is home to expensive jewelries, business equipments, or artworks. Certain personal liabilities are also covered by most standard homeowner’s insurances. For instance, if your mail carrier hurts himself by tripping over your child’s skateboard, or your cat claws him for some reason, your insurance will cover his medical expenses till a certain point, including any other losses. It does not even matter whether the damage occurs within the perimeters of your house, or not. In case your kid takes his skateboard through your neighbor’s new cement driveway, for example, that will also be covered. This part is not made mandatory from your lender’s end. But, having it will increase your peace of mind.

Finding an insurance policy when

things are not easy

In certain states, fining a good homeowner’s policy has become quite tough, especially in Texas and California. The reason is that insurers typically have to pay very highly in case any disaster or other unexpected event occurs. If you have, or your seller has, submitted a claim regarding water damage previously, you may find that it is nearly impossible for you to get a good homeowner’s policy. The situation will likely be the same in case you have filed insurance claims before. If obtaining a homeowner’s insurance is tough in your location, it may be a smart strategy to negotiate with your seller and make having such an insurance compulsory for finalizing your sale.

The importance of not submitting

claims for minor losses

Once you successfully get a satisfactory policy, make sure that you guard it. Try not to file claims that you can easily cover yourself. If you file two or more claims, your insurance rate may increase drastically, or worse, your whole policy may get terminated. Make sure that you get a policy which offers you high deductible. Your lender, however, may ask you to not get anything that has deductible higher than $1500, or a similar amount. That is because your lender has to make sure that you will not find yourself in a situation where you are not able to afford your deductible and, ultimately, have to devalue your house, which is also your lender’s collateral.  

Where to head next?

In case you want further information about homeowner’s insurance policies, be sure to visit the site United Policyholders, or UPA nonprofit resource of information, the site gives consumers a platform for voicing their opinions regarding every type of insurance policy in all the states. You can visit this site to compare rates and get cheap homeowners insurance quotes.