Adding Up the Costs of Home Ownership

The time may come when renting an apartment, condo or house is no longer suitable, and the idea of purchasing a home changes from dream to reality. Seizing the American Dream is one of the biggest purchases one will ever make in life. Before engaging a real estate agent and touring open houses every weekend, review the checklist below. Being able to answer "yes" to these questions will help determine whether the time is right to make such a big move:

An established source of steady income for at least the past two years, that is very likely to continue

Tax returns have been filed each year as required by federal and state law

Bills and other financial obligations are within budget and regularly paid on time

The down payment, closing costs, and other related fees to purchase a home have been saved up (check with a financial institution to see whether any first-time-buyer or other programs are available that could help cover certain expenses relating to purchasing a home)

Money for moving expenses has been saved up (and/or good friends have been tapped to lend a hand)

Anticipated mortgage, property taxes, insurance, homeowners' association fees (if applicable), and other expenses are affordable for the long term

Money is available to pay for additional (and likely higher) utility bills if the new home is larger than the previous rental; also, additional expenses for lawn and garden equipment, or a gardener

Money is available to purchase additional furniture, appliances, and other household items

Money is available to cover ongoing maintenance and home repairs

Everyone involved has the time, energy, and desire to take care of a house (or ability to hire others to do perform those tasks); it seems obvious and sounds simple, but not everyone wants the ongoing responsibility of caring for a home's upkeep

A good homeowners insurance policy has been selected to cover the new castle. Homeowners insurance is a requirement by any mortgage lender and an essential component of protection. Coverage offers homeowners protection from financial losses related the owning the home, e.g., losses due to fire, vandalism, and hail, as well as theft and liability in most cases. Coverage for damages resulting from a flood requires a separate flood insurance policy or rider. Talk to a professional insurance agent about a homeowners insurance policy with the right features and benefits, as well as any riders that are appropriate.

Buildings Insurance: Is Your House At Risk? How to Spot Subsidence Before It's Too Late

Building insurance can be considered as a must-have for your home or for any kind of infrastructure that you may have. This will definitely prevent you from having to spend too much money to repair damages that can be caused by sudden events. If you have building insurance, you will be protected for any covered events up to the amount your policy provides.

You have to make sure that you monitor your house or building from time to time to check if it has any risk for damages. One of the most important things that you have to consider is the subsidence.

Looking Into What Subsidence Is All About

Most people may not be aware of what subsidence is and how it can greatly affect any kind of infrastructure. Subsidence is actually defined as the sudden motions of the surface of the Earth. This motion causes the ground to move to a much lower level. This sudden motion can definitely cause great damage to different kinds of infrastructure which has been built in a stable position in a certain location. It is important that you assess your house location properly for any risk of subsidence.

How to Spot Subsidence

You have to make sure that your house or any of your infrastructures will definitely be free from the risks of subsidence. First of all, it would be best if you get the help of a professional when it comes to such matters. Some of the best persons that you can consult are geologists, engineers and surveyors. They can help you when it comes to properly assessing and evaluating the location of your house or building so that you can find out if it is at any risk for subsidence. They can give you the best advice when it comes to how you can prevent any damage to your home that may be brought about by subsidence.

You also need to realize that you can definitely evaluate your home yourself. Most of the buildings that are at great risk for subsidence have cracks. You have to remember that not all cracks may be considered as a sign of subsidence. Those cracks that are greatly associated with the risk for sudden motion are normally wider than usual.

You should also have a very complete ocular inspection of your location done so that you can see if there are any possible structures that can cause damage to your home or infrastructure. As early as possible, you should eliminate all the damaging structures for your home.

If you are able to properly detect possible risks for your home, you can definitely prevent future damage. The expenses that you would have to deal with if you detect possible damage as early as possible will definitely be less. If you act on the damages at a later time, there would be a high chance that you would need to spend a lot more for repairs or for replacement. You would not need to spend all your building insurance on house repairs if you are able to prevent and detect damages early.

Homeowners Insurance For Pet Owners

Many different pets have liability concerns that must be calculated into the homeowners policy. From property damage to bodily injury, your pet is going to be a factor in what your premiums will be. For some animals, such as dog breeds that are considered dangerous, you may have to shop around just to find an insurance company that will underwrite your policy.

Dangerous Dog Breeds 

Pitbulls, Shepherds and Rottweilers are three of the most common breeds listed as dangerous. For these breeds, some insurance companies will not write a home policy at all, while other may exclude the dog from coverage. Some states use a different method, called the "one bite rule," where the dog is allowed 'one free bit' before the insurance company will cancel the policy. You will have to check with the laws of your state to find out what the specific laws may be, and shop for an insurance company that welcomes your pet as part of your family.

Personal Property 

Most homeowners policies will not cover personal property that is damaged by a pet, but others do. And even if your personal property is covered, the wording of your policy may limit the dollar amount of your personal property that will be covered for pet related damages. Every insurance company will have different rules for this, so keep your pets in mind and read the policy carefully before you sign the contract. For example, if your cat destroys a window blind, you would be responsible for replacing the blinds out of your own pocket.

Property Damage Concerns 

Property damage, such as your cat clawing up a neighbor's screen trying to visit their bird cage, or even the cost of the bird if the cat succeeds, will be covered to varying degrees. Some policies will treat the cat or other pet like a family member and treat property damages in the same way, while others treat damages caused by animals differently or even exclude them altogether.

Bodily Injury Liability 

Unless the pet is excluded from coverage, your insurance will pay for bodily injury to visitors. This does not include injuries to your own immediate family members, but it would include a visiting family member who was bitten or scratched. This is one of the most important reasons to have a home insurance policy that includes your animals, because in addition to bodily injury, many pet-induced injuries are also viewed as liability suits, and having a good policy will prevent the possibility of lawsuits taking your home or draining your savings.

Are You a Landlord? Is Your Let Property At Risk From Flooding?

Are you a Landlord? Has your let home flooded? Are your tenants at risk?

Flooding has caused millions of pounds worth of damage over recent years. But beyond the monetary shock of ruined carpets and furniture, there's the emotional trauma of seeing a home invaded by flood waters and the potential for irreplaceable personal effects to be spoiled. If you are responsible for the property you must take action immediately. The property is not your tenants responsibility - and you will need to work with your tenants to sort the problem out.

Make sure you're adequately insured. You don't have to live beside a river to be flooded. Heavy rain can cause flash floods. Even tiny water courses and storm drains can flood an area if the water can't escape quickly enough. There are many homes situated away from waterways which have flooded, and there are thousands of homes at risk. Make sure your policy includes Flood Damage as standard. Homeshield Insurance only supplies home insurance products that include Flood Damage.

If your home is flooded there's no quick fix. Depending on the severity of the flood, it can take many months to dry out and repair a house. It takes house bricks about one month per inch to dry out completely. It is a very lengthy process. Your Landlords Home Insurance policy should include rent guarantee due to an insured event. This means that should an insured event occur - for example flooding, they will pay your rent each month during the repairs if the home is uninhabitable for your tenant. You will then be required to release the tenant from their contract to enable them to seek alternative accommodation.

However, if the worst happens there are some things you can do to help your tenant and they can do to help you in the moments which follow the flood:

First steps 

• Switch off the gas and don't touch the electrics. Water conducts electricity, so you may find your power trips out. Don't try to switch it back on.

• Call your home insurance company's emergency help line as soon as possible. They will provide assistance on making a claim and, if necessary, they should also help with alternative emergency accommodation.

• Keep a record of the damage. Ideally take lots of photos or video of the flood damage. If you don't have a camera to hand, take notes of what happened and the damage caused, try to be as detailed as possible.

• If emergency pumping or repair work is necessary you should have this done. You don't need to go through your insurance company for this, but you should be able to claim the cost back from your policy as your claim is processed. 

• If your tenant has to leave your house, make sure your landlords insurance company knows where to contact them. If they have a mobile phone, make sure they have the number. The insurer may need to contact the tenant for information which you may not have.

• Flooding can cause structural damage. The roof line is often a good indicator, check for any changes. If you suspect there is a problem, inform your home insurer and get the property checked out as soon as possible.

Once the waters have receded the clean-up can begin. Remember that floodwater can be contaminated; take sensible precautions (e.g. using rubber gloves) during the clean-up will help, make sure children and animals are not exposed to contaminated water.

Cleaning Up

• Check with your local authority or health authority to find out where you can get help with the clean-up. Look under 'Flood Damage' in the Yellow Pages - you will need cleaning materials and equipment to dry out your house.

• Open doors and windows for ventilation. But don't forget security. Ensure your house and valuables are safe. Use a dehumidifier when the windows are closed. Also make sure you clear mud and silt from all airbricks.

• Contact your gas, electricity and water suppliers. Don't switch on power without having everything checked, and taking advice first. Make sure you run water for several minutes before using it.

• Throw away any food which could have been in contact with floodwater.

• If you can, switch on your central heating, but keep it on a constant low temperature. Together with ventilation this will help the house dry out. High temperatures could cause further damage.

• Allowing photos and papers to dry out isn't necessarily the best way to save them. Remove excess water and keep tightly together, in the fridge if possible, then take advice from your insurance company.

• Don't throw away furniture and fittings, your insurance company will want to inspect them. Rubber backed carpets should be lifted and left outside. Hessian backed carpets should be left in place until dry. Once dry, lift the carpet to help dry out areas underneath. Take photo's as you go, to keep a log of the damage in more detail.

• Prepare for the worst: don't think it can't happen again. Even if you're the victim of flash flooding after extreme weather, don't assume the worst is over.

• Most importantly, look after yourself, your tenant, and their family. This is a traumatic time, making sure everyone's OK is more important than moving furniture. If you don't feel you're coping the Citizens Advice Bureau may be able to help or put in contact with someone who can.

OUTLAWED: Six Home Insurance Deal Killers Florida Homeowners Should Be Aware Of

As affordable Home Insurance in Florida gets more difficult to attain, it is extremely important for home owners and future home owners to be fully informed before purchasing a new home or shopping for new home owners insurance.

If one of these SIX conditions exist in the home, "BUYER BEWARE" as insurance may be difficult and potentially impossible to bind.

1) Fuse Panel

A properly installed FUSE PANEL by itself is typically not a safety issue, however most insurance companies have banned this type of electrical service for all new policies written. There are a number of reasons, some of these are noted below.

The main safety issues from fuses come into play when a homeowner replaces a blown fuse with too large of a fuse (i.e. a blown 15 amp fuse replaced with a 30 amp fuse which is readily available on the utility room shelf). The circuit is designed to "blow" if a load greater than 15 amps passes through. Now the "trigger" is set at 30 amps. An extra 15 amps just might be enough for the wiring or other components to heat up enough to cause a fire or other serious injury or damage.

A typical fuse panel can be replaced with a circuit breaker panel for $750 to $2,000 depending on any other upgrades that may have to be made in the replacement. Always get a minimum of THREE QUOTES from reputable Contractors before authorizing any work done.

2) Knob and Tube Wiring

Knob and Tube Wiring (K & T) was used from the 1880's into the 1930's. This early method of electrical wiring did a great job for many years and is still used today in some select governmental and industrial applications. However this old rubber or cloth coated wiring that strings along on porcelain knobs has outlived its useful life and is no longer insurable or even legal in residential applications per the National Electrical Code.

An average size home re-wire can run from $8,000 to $20,000 depending on the unique layout and access to electrical components. Always get a minimum of THREE QUOTES from reputable Contractors before authorizing any work done.

3) Aluminum Branch Wiring

In Florida, Aluminum Wiring has been in the spot light since 2010 when tens of thousands of Florida home owners learned they could not get insurance if they have this common wiring that was used frequently between 1965 and 1973.

Aluminum wiring is known to "cold creep". The wiring expands as it heats up and contracts as it cools down, this can cause the wire to come loose at the connection and this can cause an arc which can heat up fixtures and start fires. Aluminum also oxidizes over time which can contribute to this fire safety issue.

There are two options to get insurance if you have aluminum branch wiring. First, and most costly (but the one we highly recommend) is to completely rewire your branch wiring to copper. This can cost on average, $8,000 to $20,000 depending on how easily or difficult your electrical components are to access.

The second option is to use AlumiConn or CopAlum crimps that in essence crimp a copper "pig tail" to your aluminum wire so that the copper wiring is what is making the connection to your electrical fixture. This option, on average, costs between $1,500 and $3,000 depending on how many electrical fixtures there are in the home. We recommend staying away from this when possible as we fear that the ever changing insurance industry may eventually OUTLAW the crimp method as well. We also do not like the idea of going from the average fixture having 3 connections to having 6 connections. The more connections the more chance of failure.

4) Less Than a 100 Amp Electrical Service

A more recent industry change in our "power consumption hungry world" is requiring homes to have 100 amps or more of service feeding the home. With the heavy consumption of electrical power the average homeowner uses, insurance companies appear to be fearful that smaller services can overheat when using typical high consumption appliances.

The cost to upgrade an electrical service can range depending on if the size of the electrical wiring can handle the increased electrical load. If it cannot, the feeder line will also have to be replaced. As always, get at least 3 quotes from reputable electrical contractors.

5) Polybutylene Plumbing

This popular plumbing pipe was used heavily through the 1980's and into the early 1990's. It is usually "blue or gray colored", is flexible, and has caused flood damage in thousands of homes across the country. Up until recently a few insurance companies did not ask about the type of plumbing pipe so agents would place homeowners with those companies, however starting September 1, 2012 Citizens Insurance Company specifically outlawed Polybutylene Plumbing.

A typical re-plumbing cost can run from $4,000 to $10,000 depending on the ease of running the new pipe (in attics or under homes). We recommend using copper or CPVC piping as some insurance companies are also taking issue with PEX piping that has become very popular over the past decade. We'll cover more on PEX in a later article.

6) Roof with less than 3 Years of life

The final INSURANCE DEAL KILLER in today's article addresses your first line of defense in a wind or rain event, THE ROOF! If your roof has less than three years of useful life left on it you will likely be denied insurance coverage. In our hot Florida sunshine, an average three tab shingle roof will last between 10 and 15 years. An average dimensional shingle roof will last between 15 and 25 years. Other popular roofing options include tile and metal roofing. These options have significantly longer life expectancy of upwards of 50 years if installed and maintained properly.

A re-roof is normally calculated on a per square basis. A square is equal to 100 sq ft of shingles. In the Pensacola area that per square cost can run anywhere from $225 to $300 per square making the average 30 square roof cost between $6,750 and $9,000 depending on the quality of products used.

How To Get The Cheapest Condo Insurance Policy Rate

When you're searching for condominium insurance, you clearly want to get the cheapest policy with a top-rated company. Here is how you can do exactly that:

The Reasons You Need Condominium Insurance

Condominium insurance is different from standard home insurance because your association insures your building with a master policy. This policy typically covers the wall structure, the roof structure, and also the floors of your building.

Because the association insurance policy only insures the roof, walls, and floors, you must insure your own personal property, home appliances, plus your inside walls. Before buying an insurance policy you need to check with your condominium association to see what's insured, and what is not.

Condo Insurance

- Personal property coverage - It pays to replace your personal possessions - furniture, clothes, consumer electronics, tools, sports gear, etc. - when destroyed by fire, smoke, plumbing related water leaks, or even acts of nature.

- Condo liability insurance covers you in the event that a person were to hurt himself inside your condo and sue you in court. Liability coverage pays for court-awarded damages, as well as your court expenses and attorney's fees if you are sued.

Standard policies include $100,000 to $300,000 worth of coverage, however you can buy more coverage if you have numerous assets you need to protect.

Where To Get Affordable Condo Insurance Coverage

Condo insurance can vary by hundreds of dollars from one insurance provider to the next. The best way to receive low priced price quotes is to pay a visit to an insurance comparison site where you are able to obtain quotes from various insurers and compare them.

Once you've found a low cost price, it is possible to lessen your rate even more by:

Raising the deductible. This can help you save hundreds of dollars a year on your premium. This is one of the biggest money savers.

- Get every single one of the discounts that you are qualified for, such as discounts for using burglar alarm systems plus smoke detectors installed within your condominium, discounts for having dead bolt locks plus window locks, discounts for being a non smoker, plus discounts for being a senior 55 years or older. Don't presume your insurance provider will offer all of them to you. Ask for every single one of the discounts you are eligible for and include them in your insurance policy.

Bottom Line

It's so simple and easy to evaluate price quotes on the internet so that you can make sure you receive the very best rate possible. All you do is spend a few moments filling out an easy online questionnaire with specifics about your condo to get your price quotes.

I recently did an online comparison for my own home insurance plan and I was amazed at just how much I saved. The insurance premium for my policy was $895 annually. It took less than 3 minutes to complete the information then send in the form, and less than 5 minutes after I submitted it I received a telephone call from two neighborhood insurance agents, and also 4 email quotes.

After comparing the email price quotes and getting insurance quotes from the 2 insurance agents, I ended up choosing a policy for under $300 - saving $604 for spending less than half an hour of my time!

Whenever you're shopping for condominium insurance I think you'll find it worth your while to go to an insurance comparison site to get price quotes. It's fast, it's convenient, and it's free.