Upgrade Your Home, Insurance Policy Before Spring Storms Hit

Mother Nature's forces of wind, water and hail account for more than half of all homeowners insurance losses.


Standard homeowners and renters policies cover the damage wreaked by wind, hail, falling water or wind-driven rain, but not from rising water from any source, including a sewer or drain backup or sump-pump failure. The cost can be substantial: Mother Nature's forces of wind, water and hail accounted for more than half of all homeowners insurance losses between 2009 and 2013, with an average claim amount of $7,610, according to the Insurance Information Institute.


If you live in a federally designated flood zone, or if your house could be flooded by melting snow, an overflowing creek, or water or mud running down a steep hill, you can buy flood insurance from the National Flood Insurance Program (www.floodsmart.gov) by calling your insurance agent. The program covers homes for up to $250,000 of the cost to rebuild and insures contents for up to $100,000. The average premium is $700 per year, but rates depend on a home’s features and location.

Prevention pays. You can take steps to minimize the risk. Visually inspect your roof for damage, clean your gutters, and attach extensions to downspouts and regrade soil to divert water away from your home’s foundation. Test your sump pump and recharge its battery.


To avoid coming home and finding that a deluge has created a sodden (or worse, moldy) mess, install a remote alarm system, such as the Samsung Smart-Things Hub (about $300 with five water-leak sensors). It will notify you when the sensors—-placed where leaks or overflow are most likely to occur—detect water. Home insurers usually offer their biggest discount for a combination of approved protective devices, which may include a water-leak detection system. State Farm offers discounts of 10% on the ADT Pulse home-monitoring system ($636 a year) and the Comfort and Control Kit for the Iris by Lowe’s smart-home system ($339). Plus, State Farm offers customers a premium discount of up to 10% to 15% for the ADT system and up to 2% to 7% for the Iris.

If your home (or neighbors' homes) experience sewer backups, hire a plumber to install a sewer-backflow valve ($600 to $1,400) to keep pure nastiness from backing up through toilets and drainpipes into your home. The valve allows waste to flow out but closes when the flow reverses. You can also add, say, $5,000 of sewer-backup coverage to your homeowners policy for about $50 annually.

Fortify your home. Your roof is your home’s first line of defense against the elements. When it's time to replace it, strengthen it. You can install impact-resistant shingles that are rated for superior resistance to hail damage, and you may earn a premium discount.


Four coastal states—Alabama, Georgia, Mississippi and North Carolina—require insurers to give homeowners a premium discount of 5% to 35% for retrofitting a roof to meet the “Fortified” standards of hurricane resistance developed by the Insurance Institute for Business & Home Safety (see www.smarthomeamerica.org). Florida, Louisiana, South Carolina and Texas have similar programs.

Also consider storm shutters ($9 to $30 per square foot of openings) or impact-resistant windows ($50 to $70 per square foot). Florida requires insurers to discount premiums by 35% to 44% for storm shutters that meet code.

Wherever you live, check with your insurance agent or state department of insurance to learn about incentives for preventing storm damage.

source: kiplinger.com

Protect your home: 5 tips in checking home insurance

MANILA - When Tropical Storm Ondoy caused huge floods across Metro Manila in 2010, many homes were submerged underwater, resulting in untold damage. Amid the destruction, some of the affected owners found comfort in the knowledge that they had taken out insurance on their property--only to find out a few weeks later that their insurance did not cover such an incident.

And why not? Because their insurance policies did not include damage resulting from floods.

Until this happened, majority of consumers were not aware that flood insurance was not included in their policies. Most home insurance policies contain an exclusion case for damage caused by “acts of God.” This term pertains to any act of nature that may not be controlled, including earthquakes, war, mobs, and many others.

To ensure that you do not encounter any problems when claiming insurance, here are some tips to guide you:

1. Educate yourself about your current insurance coverage.

Read your homeowner’s insurance policy carefully, and be aware of what exactly it covers. It is important to know if your policy contains an exclusion. If you find out that your policy excludes damage resulting from storms and floods, ask how you can have additional coverage for this risk. Think of possible scenarios and ask all sorts of questions: If your roof leaks as a result of a storm, and water seeps in, damaging your appliances, will this be covered by your policy? It is essential to know these things before they happen, rather than argue about them after the fact.

2. Carefully assess your needs.

The need for specific coverage varies per individual—those living on the 30th floor of a high-rise would most likely not be concerned about flood insurance, but those in subdivisions near creeks or known flood-prone areas might find this extremely useful. Based on your assessment, ask your insurance agent about what products they may have that specifically address your need.

3. Shop for riders that you think will be useful or will give you greater peace of mind.

Some that may be of interest include:

a. Personal property: This covers expensive items such as jewelry, art, and the like inside your house.

b. Flood insurance: This will cover damage resulting from floods.

c. Replacement cost (contents): This rider ensures that there will be no depreciation for the personal property you must replace due to theft or damage.

d. Guaranteed replacement cost : With this rider, the insurance company will replace your home or car with another of the same value, even if the cost is higher than that listed in your policy.

4. Adjust the amount of your coverage to reflect your current needs.

Look at the amount of coverage you have to ensure that there are no so-called protection gaps. It is possible that you have automatically renewed your policy without adjusting the amount of coverage in the past ten years. If you took out a home insurance for P1 million ten years ago, and you find yourself claiming for damages, you might be surprised to see how little your existing policy can cover. Consider engaging the services of an appraiser to know how much coverage you should get.

5. Keep your policy updated.

The only thing worse than not having enough coverage is to find out you cannot file for insurance because your policy has lapsed. This is a really a rudimentary thing, but it is quite surprising how people frequently forget about keeping their insurance policies active, only discovering too late that it has lapsed. Use reminder functions on your calendar or use apps to remind you of upcoming deadlines.

Be proactive in ensuring that you have adequate protection by looking into the details which can spell all the difference for you when you need it most.

source: www.abs-cbnnews.com

Getting A Fixed Rate Home Loan

A fixed rate home loan can be very important as more people are looking to buy a new home and the housing crisis eases.  Due to the recent turmoil in the housing market, many borrowers are shying away from exotic loans and are only interested in home loans that have a fixed interest rate.  Obtaining this type of loan can get you the home that you want at an attractive interest rate with affordable payments for the life of the loan.

By learning about the features of these loans, you can get a fixed rate home loan quickly and easily with a minimum of hassle.  Here is what you should know before applying for this type of home loan.



Why Are Fixed Rate Loans Desirable?

Fixed rate loans are preferred by many people because of the various benefits they offer.  Unlike variable rate loans, the interest rate for a fixed rate home loan will not change.  The interest rate for the loan will remain the same for the entire life of the loan, making it easy for homeowners to budget for the payments and eliminating the chance of unpleasant payment increases.

Obtaining The Loan

Many traditional lenders offer fixed rate home loans at attractive rates that can be used to buy the home you desire.  After you fill out the application, the lender will look at a number of factors in your credit history and current financial situation to determine your ability to repay the loan that is requested (remember that owning a home also comes with many other expenses too like regular maintenance, home insurance, and usually higher utility costs).  Once the lender has made the determination that you will not be a huge risk to their company, they will approve the loan and provide you with the funds to purchase the home.

Many people believe that you cannot get a fixed rate home loan if you do not have perfect credit.  This is far from the truth.  Although you will receive a much better interest rate if your credit is pristine, lenders will still consider your application for a fixed rate home loan if you have a few blemishes on your credit report.  If you have gotten your credit score as high as possible before applying for the loan and you are turned down by one lender, you may receive approval from another lender who is looking at the same information.  Do not get discouraged and do not give up on your dream of homeownership.

source: everybodylovesyourmoney.com