| Tips on Insurance -1st time homebuyers |
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mlittle3
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| Tips on Insurance -1st time homebuyers |
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Aside from the fact that home insurance is a good idea considering the size and significance of the investment it is also required by the lender. The problem is that because it is required, many first time buyers assume that most policies are decent and fail to ask the truly important questions.
Here is few good questions to ask.
1. What risks does your home actually face? Insurers often think in different terms than we do. For instance, hurricane coverage rarely covers the flooding associated with hurricanes. So rather than talk in terms of coverage types as labeled by insurers think in terms of what disasters you may face, how they will actually damage your home. Then cover each phase with your insurance agent to see if the name of the policy actually matches up with the disaster.
2. How much will it cost if you had to rebuild your home today? If you buy an older, yet nicer home, especially in a neighborhood full of older homes often the insured value of your home is set by the homes around it. But that has nothing to do with the actual cost of replacement. Many building materials are no longer used and some are far more expensive\cheaper today than they once were. Make sure that when you are talking to the insurance agent that you are clear on if you want insurance that will allow you to replace your home, or you just don’t want to lose the investment you have in your home. They aren’t the same thing.
3. For you –Do you want a Low deductable or to keep an emergency fund? Most people know that the lower the deductable the higher the monthly premium. But not everyone thinks about the advantages of high deductibles paired with an emergency fund. If you are willing to set aside a few thousand dollars to fix small emergencies you can avoid going to the insurance companies altogether. This in turn keeps your rates low and allows you the lower monthly premiums that will help you save for your emergency fund. Why give that money to the insurance company when you could be saving it for yourself? Of course make sure to run the numbers first.
I hope that this list is helpful and I often help my clients through this process –it can seem daunting the first time you go through it.
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Fri Oct 22, 2010 6:57 pm |
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wringle
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Basically it is his dream car and he wants to own one on a budget. Does anyone have any advice which would help him achaive his dream? Tyre advice or insurance advice etc etc etc
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Thu Oct 28, 2010 3:42 pm |
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jamesbigger
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My friend has offers in on two separate short sale homes and one was put in last October. The bank has yet to even assign a negotiator on that one. The bottom line is unless you are in no hurry to move, don't hold your breath on a short sale.
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Sat Nov 13, 2010 5:20 am |
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MrCashFlow
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Some people who started out adequately covered by the midrange homeowners policy when they were young find after several years that they are starting to grow beyond the protection of their coverage.
What to do: Just as some insurance firms specialize in the middle market and thus offer the best prices for that one, other insurance firms speicalize in the narrower, higher-bracket markets. Once the value of your home and belongings exceeds $200,000, you should investigate what coverage is available from these firms.
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Sun Nov 21, 2010 3:44 pm |
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moonraker1
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Home Insurance is required upon getting a mortage. You cant have a house without it because the mortgage company wont let you. It's up to you as a borrower who you choose and how much can you afford. Mortage companes dont assign one for you if you dont want to, u get to pick one if you choose to.
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Fri Nov 26, 2010 6:57 pm |
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joshrego
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Double-check your credit report.
Talk to mortgage lenders.
Buy a home while house prices are still low.
Buy a new house when interest rates good.
Make sure you have enough in savings.
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Tue Dec 07, 2010 1:19 pm |
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pennyp
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Location: Australia
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Definefly worth shopping around for good Home and Contents Insurance.
Who knows when the next natural disaster is coming.
When it comes to the largest investment you will make, peace of mind assuring all is covered.
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Sun Dec 12, 2010 1:18 pm |
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michaelscheiderfield
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Location: Pennsylvania
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| Insurance and loans |
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Insurance is needed in every car and to have a car you need an amout of money. But what if you don't have sufficient savings? All you have to do is to apply for quick and easy loans.
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Tue Dec 14, 2010 10:37 pm |
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financialculture
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Location: Mumbai
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Thanks for tips! These is really useful for me
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Wed Dec 15, 2010 12:35 pm |
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john592
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Here in the UK it is a requirement of any mortgage lender that buildings insurance is in place on the day that their money is used to buy the house. The lender will normally state a minimum level of cover and want their interest noted on the insurance policy (so that they are notified by the insurer in the case of a big claim).
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Thu Dec 16, 2010 10:57 pm |
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stan_betz
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When insuring your home, do not count the cost of the land, just look at the structure and the contents within. I have a 100% protection plan on my home insurance (Through The Hartford ) policy which pays me upto 150% of the policy limit to rebuild my home incase I ever need to.
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Fri Dec 17, 2010 7:16 am |
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MatthewKrauss
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Almost all first-time buyers probably took a loan to buy their new house and a mortgage company will probably require them to cover. In addition to the requirements of the lender, even people who are lucky enough to own their home without any loans will want to protect their most valuable asset.
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Fri Dec 17, 2010 1:05 pm |
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