Insurance in Punta Gorda

It’s not my Tree – It’s your Tree. Punta Gorda Owners Analyze!

Monday, December 5th, 2011

You have all heard the hypothesis, that if a tree falls in the forest and no one is there to hear it, does it make a noise? Well there is another occurrence that warrants pondering.

If a neighbor’s tree damages your property, your insurance company should pay to repair the damage, then decide whether to seek reimbursement from your neighbor.

When a neighbor’s tree falls over your property line, yell TIMBER, then call your insurance company. Home owners policies cover tree damage caused by perils like wind and winter storms. Most policies cover hauling away tree debris if the mess is associated with house damage; some will cover cleanup even if no structures were harmed.

When a tree falls

Your neighbor is responsible when a tree falls over your shared property line only if you can prove he was aware that his tree was a hazard and refused to remedy the problem. Regardless, your insurance company restores your property first, and later decides whether or not to pursue reimbursement from the neighbor or his insurer if the neighbor was negligent in maintaining the tree.

Before a tree falls

Write a letter to your neighbor before his dead, diseased or listing tree falls through your roof or over your property line.

The letter should include:
Description of the problem
Photographs
Request for action

Attorney letterhead—not necessary but indicates you mean business.

Trim their trees

If the limbs of a tree hang over your property line, you may trim the branches up to the property line, but not cut down the entire tree. If a tree dies after your little pruning, the neighbor can pursue a claim against you in civil or small claims court. Depending on the laws of your state, your neighbor may have to prove the damage was deliberate or caused by negligence, but may also be able to recover up to three times the value of the tree.

Before you cut, tell your neighbors what you intend to do to protect your property. They may offer to trim the whole tree instead of risking your half-oaked job.

Your tree falls

It’s always a good idea to take care of your big and beautiful trees, and keep receipts for trimmings and other care.

But if your tree falls over a neighbor’s property line, do nothing until their insurance company contacts you. You may not be liable unless you knew or should have known the tree was in a dangerous condition. If you pruned a tree or shored up trunks to prevent problems, gather your receipts to prove your diligence.

Source: Ann Cochran. Ann Cochran has written about home improvement and design trends for Washingtonian, Home Improvement, and Bethesda Magazine.

For the “What it’s Worth File.” This scenario is even more complicated than my initial premise. If you have a similar situation with a tree on your property or next to your neighbors property line, I would recommend that you cocntact your insurance agent and determine exactly how your insurer interprets the above situation. Not all insurance companies think alike! Remember, if you need a Realtor® where you live or need one where you are moving – just call me. I will help you find a “Good” one! M.K. (Mike) Kissinger – #941-979-1455.

Tags: Best Home Values in Punta Gorda, Coldwell Banker Morris Realty, Curb Appeal, Finding the Right Punta Gorda Agent, Punta Gorda Home Enhancement, Punta Gorda Real Estate, Sunshine State
Posted in Insurance in Punta Gorda | No Comments »

What’s an Insurance Score? Punta Gorda Residents Find Out!

Monday, September 19th, 2011

The most effective way to raise your insurance score is to improve your credit score.

Most people expect the cost of homeowners insurance to go up after a claim is filed. But it may surprise you to know that how good you are at managing your finances can have just as big an effect on your premium as the tree that fell on your house.

Insurers look to your credit history to calculate an insurance score that’s used to judge how much of a financial risk you are. The lower the score, the higher the risk—and the higher the premium you’ll likely pay on your homeowners insurance. Don’t despair. There are strategies, including paying bills on time, that can help improve your insurance score.

Good credit pays off

Wondering what too many credit cards has to do with the limb that landed on your roof? More than you’d think, it turns out. Several studies have found that your credit history is a good indicator of how often you’re likely to file an insurance claim. Because more claims translate into more expense for insurance companies, homeowners with low insurances scores tend to be charged higher premiums.

Insurers claim the use of credit-based insurance scores is fair and actually works in favor of fiscally responsible consumers. A 2006 study found that 53% of Oregon policyholders paid lower premiums on homeowners insurance thanks to credit-based insurance scores. ECONorthwest, the group that conducted the research, estimated the average annual savings for policyholders nationwide at $60.

How your insurance score is calculated

Your insurance score starts with your credit report, a history of your credit use. What credit cards and loans do you have? What are the balances? How promptly do you pay? Your report also includes information gleaned from public records such as bankruptcies and liens. FICO is the best-known company that turns the information in credit reports into credit scores. FICO credit scores range from 300 to 850.

Insurers are less concerned than lenders about your ability to pay back a specific amount than your overall ability to manage money, says Allstate spokesman Adam Shores, especially whether you make late payments and how long since delinquencies took place. Your insurance claims history, as recorded in your CLUE report, also affects your insurance score. So can your age, the construction of your house, and whether you’ve installed smoke detectors and other safety equipment.

All of these data are crunched to come up with a numerical insurance score. This is where it gets tricky for homeowners. There isn’t a single source for insurance scores, and your insurer probably won’t tell you your score even if you ask. Some insurers employ proprietary formulas. Others use insurance scores calculated by companies like FICO and ChoicePoint, the latter of which will sell you your score for $12.95. ChoicePoint’s Attract insurance scores can range from 200 to 997, with a score over 776 considered good.

Ways to raise your score

The most effective way to raise your insurance score is to improve your credit score. You’re entitled to free copies of your credit reports annually from the major credit bureaus: Equifax, Experian, and TransUnion. Order them and look for errors: Is your Social Security number correct? Are all the debts and credit cards yours? Do the balances jibe with your records? Errors can be disputed online.

If the information on your credit report is correct, there are still things you can do to improve your score. Paring down balances on credit cards is a big plus. Paying bills by the due date is another major factor, accounting for 35% of a FICO credit score. Time is also on your side. Most late payments are removed from your credit report after seven years. A few major problems such as a bankruptcy may stay on for a decade or more.

Source: By: Mariwyn Evans, Published: September 11, 2009. Mariwyn Evans has spent 25 years writing about commercial and residential real estate. She’s the author of several books, including “Opportunities in Real Estate Careers,” as well as too many magazine articles to count.

For the “What it’s Worth File”. Here’s yet another one of those “rating” systems used to categorize your ability to function financially! Were you even aware that you, in addition to having a Credit Score, you also have an Insurance Score. Oh yes, they are definitely inter-related. So, if you are dealing with credit issues, you will suffer some decline in your insurance score as a result. The value of keeping your credit score accurate and as high as possible just became inherently more important! Remember, if you need a Realtor® where you live or need one where you are moving – just call me. I will help you find a “Good” one! M. K. (Mike) Kissinger #941-979-1455.

Tags: Best Home Values in Punta Gorda, Coldwell Banker Morris Realty, Credit & Financing in Punta Gorda, Insurance Scores in Punta Gorda FL, Punta Gorda - Best Places to Live in the South, Sunshine State
Posted in Insurance in Punta Gorda | No Comments »

CLUE REPORT – Punta Gorda Residents Don’t Have A Clue!

Tuesday, September 6th, 2011

Your CLUE insurance report keeps your homeowners insurance claims alive for seven years—and that could cost you on your premiums.

Knowing what’s on your CLUE report will give you a sense of whether you’ll need to pay extra for homeowners insurance.

A tree falls on the roof of your house. You file an insurance claim with your agent, collect a settlement from the insurer, and fix your roof. End of story, right? Not quite. Every claim you make on your homeowners insurance is recorded in a widely used insurance industry database called CLUE, short for Comprehensive Loss Underwriting Exchange.

Almost all insurance companies use CLUE to check on the claims history of prospective policyholders. The CLUE insurance report also includes claims made on your home before you even bought it. A-PLUS is another company that maintains a loss-history database. What’s inside these reports can affect your insurance premiums, or even prevent you from getting coverage.

Your claims history lives on in CLUE

The CLUE Personal Property report, which pertains to homeowners insurance, is divided into two parts: your personal record of claims (“Claims for the Subject”) and the claims on your home (“Claims History for Risk”). The number of claims in either section will affect whether you can get insurance for your home, how much coverage you can get, and how much you’ll pay in premiums. If you’re turned down for homeowners insurance because of information in your CLUE report, your insurance company is required to let you know why you were rejected.

Since the database is used by most insurance companies, your claims history follows you from one insurer to another. Actual claims, as opposed to inquiries, remain in the CLUE database for seven years from the date you filed them. Both LexisNexis, the owner of CLUE, and A-PLUS advise insurance carriers not to report loss information just because you called to ask a question about whether your policy will cover a particular loss. Individual insurance companies may keep a record of inquires, though.

How insurers use CLUE

Insurance companies rely on CLUE reports because statistics show that if you’ve filed a claim in the past, you’re more likely to file one in the future, says Dick Luedke, a spokesperson for State Farm Insurance. The amount of a claim is less important than how often you’ve filed, he says. “We aren’t trying to make up for past losses, but to predict the risk of future claims.”

Each insurance company has its own formula for calculating how much a claim will affect your premium, according to the Insurance Information Institute, a trade group that provides information to consumers. Suffice it to say the fewer the claims the less you’ll likely be charged. State Farm gives a 5% discount if you haven’t filed a claim in the last five years, says Luedke. That’s $40 off an average annual premium of $804 (this varies by company). Ask your agent if a claim-free discount is available.

Claims aren’t all that count

Knowing what’s on your CLUE report will give you a sense of whether you’ll need to pay extra for homeowners insurance, or even if you run the risk of rejection. Unfortunately, even a pristine report doesn’t mean you can be sure of getting homeowners insurance at a great price. That’s because the claims on your CLUE report aren’t the only things that affect your overall insurance risk.

Insurance companies also consider your credit score, which is based on such things as how much debt you carry, whether you pay your bills on time, and so forth. According to the Insurance Information Institute, studies show that how people manage their finances is a good indicator of whether they’ll file an insurance claim. The more likely you are to file a claim, the bigger risk you are to the insurance company. And more risk means a higher premium or denial of coverage. Other factors insurers consider include the location of your home and its type of construction.

How to review your CLUE report

If you do decide to check you CLUE Personal Property report, it’s a relatively easy process. Under federal law, you get one free CLUE report a year. The LexisNexis order page has information on how to order the report online, by phone, or by mail.

Request a form to receive a Property Loss report from A-PLUS by calling 800-709-8842. There’s a charge of $19.95 to have the report mailed to you, according to the company’s website. This fee will be waived if you’re ordering a report because an insurer took an adverse action against you because of A-PLUS data.

Your CLUE report will have:

Your name, home address, birth date, and Social Security number;
The number assigned to the report;
The name of your insurance company;
The type and number of the insurance policy;
The type of loss—fire, water, etc.—for each claim and the claim number;
The date of the loss and the amount of each claim;
The status of each claim: closed, pending, etc.
The order page lets you view a sample report.

The report also tells you how to dispute any errors you find. Because risk calculations vary by insurance company, it’s impossible to say exactly how a claim on your CLUE report will affect your premium. That makes it tough to decide just how much value checking your CLUE yields. Still, taking less than an hour once a year to order and review your report could pay off, especially if you find an error.

Source: By: Mariwyn Evans,Published: August 28, 2009. Mariwyn Evans has spent 25 years writing about commercial and residential real estate. She’s the author of several books, including “Opportunities in Real Estate Careers.”

For the “What it’s Worth File”. I must admit that this one blind-sided me too! In my opinion, this is just fundamentally disturbing. I did not know what a CLUE Report was, does, or provides. I’m not sure that I am particularly positive about it’s existence and it’s purpose. Sounds to me like it’s just another one of those “tools” the Financial Communbity utilizes in keeping us under their proverbial thumbs. Looks like one of those things I can’t really do anything about - just be aware and make sure that it is accurate – just like the ever-present Credit Score. Don’t forget, if you need a Realtor® where you live or need one where you are moving – just call me. I will help you find a “Good” one! M. K. ( Mike) Kissinger #941-979-1455.

Tags: Best Home Values in Punta Gorda, Buyer's Market in Punta Gorda, Charlotte County, Coldwell Banker Morris Realty, Insurance in Punta Gorda. FL, Punta Gorda - Best Places to Live in the South, Punta Gorda Florida Real Estate Market
Posted in Insurance in Punta Gorda | No Comments »

Punta Gorda Homeowners Schedule a Check Up!

Wednesday, August 24th, 2011

An annual check-up on your homeowners insurance can result in a healthier policy and a healthier pocketbook.

It’s time for your annual checkup. The good news is that for this one, you won’t have to don one of those revealing hospital gowns – and you may walk away with a healthier pocketbook. This will ensure that your polocy still provides the right and sufficient level of coverage, and your premium isn’t costing you more than it needs to.

Remember, homeowners insurance is essential. The coverage is designed to protect your home and its contents, as well as shield you from liability for accidents and such on your property. Block out an hour of your time, call an insurance agent, and get answers to these three important questions.

What type of coverage do I have?

The most effective type of coverage is known as “replacement cost,” which covers, up to your policy limits, what it would take today to rebuild your house and restore your belongings, says Jerry Oshinsky, a partner at Jenner & Block in Los Angeles who has represented homeowners in litigation against insurers.

“Extended” replacement cost coverage provides protection to your policy limit, say $500,000, and then perhaps another 20% of the cost after that. Percentages vary, but in this example you could recoup up to $600,000 on a $500,000 policy, assuming your losses reach that high. Extended coverage can compensate for any unanticipated expenses like spikes in construction costs between policy renewals. Now harder to find due to the industry shift toward extended replacement coverage, “full” or “guaranteed” replacement coverage covers an entire claim regardless of policy limits.

A less attractive alternative is “actual cash value” coverage that usually takes into account depreciation, the decrease in value due to age and wear. With this type of policy, the $2,000 flat-screen TV you bought two years ago will be worth hundreds of dollars less today in the eyes of your claims adjuster. Kevin Foley, an independent insurance broker in Milltown, N.J., favors replacement cost coverage unless you can save at least 25% on the premium for going with actual cash value coverage instead.

Even if you have replacement cost protection for your dwelling and personal property, don’t assume everything is covered. Structures other than your home on your property—such as a detached garage or swimming pool—require separate coverage. So too do luxury items like jewelry, watches, and furs if you want full replacement cost because reimbursement for those items is typically capped.

How much coverage do I really need?

OK, now that you’re clear on what type of policy you have, you need to figure out how much policy you truly require in dollar terms. Let’s say you purchased your home five years ago and insured it for $200,000. Today, it’s worth $225,000. Simply increasing your coverage to $225,000 may nonetheless leave you underinsured. Here’s why.

The key to determining how much dwelling coverage you need isn’t the value of your home but the money you’d have to pay to rebuild it from scratch, says Carlos Aguirre, an agent for Liberty Mutual Insurance in Arlington, Texas. Call your local contractors’ or homebuilders’ association and inquire about the average per-square-foot construction cost in your area. If it’s $150 and your home is 2,000 square feet, then you should be insured for $300,000.

There’s no rule of thumb for how much your homeowners insurance should cost. Insurers use numerous factors—age, education level, creditworthiness—to determine pricing, so the same policy could run you more than your neighbor. In recent years the average annual premium was $804. Oshinsky advises against scrimping on insurance because big increases in coverage probably cost less than you’d think. He recently purchased a liability policy that cost $250 for the first $1 million in coverage. Adding another $1 million increased his premiums only $12.50 more.

How can I lower my premiums?

The higher your deductible, the amount you pay out of pocket before coverage kicks in, the lower your premium. Landing on the appropriate deductible level requires remembering that insurance should cover major calamities, not minor incidents, says Foley, the independent insurance broker. Most homeowners should be able to absorb modest losses like a broken window pane or a hole in the drywall without filing claims. If you can, then you’re wasting money with a $250 deductible.

Foley’s rule: If you’re a first-time homeowner and don’t have a lot of savings, moving up to a $500 deductible will probably stretch your budget. However, if you live in a ritzy home and drive an expensive car, then you should be able to afford a $1,000 deductible. In Milltown, N.J., for example, the premium for a $200,000 home with a $500 deductible would be $736, according to Foley; moving up to a $1,000 deductible drops the annual premium to $672. That’s $64 in savings.

Every major insurer offers discounts to various groups, such as university employees or firefighters. Figure about 5%. Ask which affiliations would entitle you to a discount and how much. If an AARP membership would result in a $50 savings, pay the $16 dues and pocket the $36 difference. Many insurers also offer discounts ranging from 1% to 10% or more for installing protective devices like alarms and deadbolt locks, for going claim-free for an extended period, or for insuring both your car and your home with the same carrier.

Source: By: G. M. Filisko, Published: August 28, 2000. G.M. Filisko is an attorney and award-winning writer who has been involved in insurance litigation. A frequent contributor to many national publications including Consumers Digest, Bankrate.com, REALTOR(R) Magazine, and the American Bar Association Journal.

For the “What it’s Worth File”. I think that it is appropriate to liken this subject to the reality of healthcare and how we approach positive results in that environment. Having your healthcare checked out at least once a year is fundamentally necessary to maintaining your good physical health. Let’s be real – things change in your day-to-day life and these different conditions affect you in unique ways. So, why would we presume that the same reality would not have similar affect on our homes overall health? Mother Nature, Legislation and time all have an impact on our tangible assets, so perhaps we should pay attention to their well being too. This is Good Advice – Better to be Safe than Sorry! Remember, if you need a Realtor® where you live or need one where you are moving – just call me. I wll help you find a “Good” one! M. K. (Mike) Kissinger #941-979-1455.

Tags: Best Home Values in Punta Gorda, Buyer's Market in Punta Gorda, Coldwell Banker Morris Realty, Insurance in Punta Gorda, Punta Gorda - Best Places to Live in the South, Punta Gorda Florida Real Estate Market, Punta Gorda Home Owners Ins., Sunshine State
Posted in Insurance in Punta Gorda | No Comments »

Punta Gorda Renters Ask, “Is Renters’ Insurance Really Necessary?”

Wednesday, July 20th, 2011

The Answer - YES, If You Want To Protect Your Personal Property and Interests!

You and your landlord sharea a common goal: you both want to ensure the protection of youor interests. Obtaining a security deposit from you is how you landlord obtains a degree of protecion from you.

The deposit covers your landlord should you cause any damage to your apartment while you are a tenant. Your landlord, in turn, may keep the deposit if you fail to pay your rent or you leave before the end of your lease.

However, if, as a tenant, you keep your end of the bargain — following the terms of your lease and leaving your apartment in good condition when you leave — the deposit is refundable.

So how do you protect your own interests as a tenant? Renters’ insurance. If you’re an apartment-dweller, you’re probably accustomed to brochures dangling from your door that advertise various renters’ insurance policies. And if you’re like many renters, you probably disregard them.

But you may want to consider taking out insurance. Before you say, “But I’m not going to cause any damage to my apartment,” remember that renters don’t always cause damage themselves. Mother nature, or other tenants with little regard for your property, could prove to be the source of your problems later.

According to Metropolitan Life Insurance Company, policies typically provide coverage for the following renters’ pitfalls:

•Damage to personal property from fire or wind
•Theft
•Personal liability in the event you are sued over accidental injury to others who are in your apartment
•Accidental damage to property of others in your care
•Living expenses if you are forced to live elsewhere while your apartment is being repaired

This list doesn’t begin to elaborate on the multitude of other possibilities for disaster: An electrical surge fries your computer, television, and/or stereo; while visiting your neighbor, you tip over his barbecue and start a fire; or you accidentally cause injury to someone away from your apartment; and the list goes on and on.

And of course, as we’ve all discovered, we can never discount such crazy-sounding possibilities — because they can and do happen if and only if we’re not prepared (or covered) for them.

Note that renters’ insurance policies may differ according to the insurance company in question, as well as the laws in your state. An insurance representative will be able to determine what type of policy best meets your needs.

If you’ve thrown away all of those brochures dangling from your door handle, the Internet is a good place to do your homework — specifically apartment-search sites. Links to renters’ insurance information will fill you in on the details, and you may apply online.

For the “What it’s Worth File”. You may look at this issue and say, I don’t need that , I’ll save the money.” Well, if your lucky and don’t need it – you’ll be fine. If, however, you ever have a claim and experience the personal trauma and feeling of loss that prevails, it is pretty traumatic. Give it some serious thought!.. Remember, if you need a Realtor® where you live of need one where you are moving – just call me. I will help you find a “Good” one!

Tags: Best Home Values in Punta Gorda, Buyer's Market in Punta Gorda, Coldwell Banker Morris Realty, Insurance in Punta Gorda. FL, Port Charlotte Real Estate, Punta Gorda - Best Places to Live in the South, Punta Gorda Florida Real Estate Market, Sunshine State
Posted in Insurance in Punta Gorda | 3 Comments »

Punta Gorda Buyers Shocked! CREDIT Affects INS Rates!!

Wednesday, July 13th, 2011

How Your Credit Affects Your Homeowners Insurance

If you’ve researched or gone through the process of getting a home loan, you know how important it is to have a good credit history. But did you know insurance companies also use your credit habits in determining whether they’ll provide you with insurance and how much you’ll pay?

Insurance companies have traditionally used many factors in determining how much of a risk you are to get into an accident or incur losses resulting in claims.

For example, insurers will look at your driving record and how long you’ve been driving when you seek auto insurance. Likewise, when you apply for homeowners insurance, they’ll look at the age, size, and construction of your home.

Through the years insurers have found a person’s credit information to be a highly accurate predictor of risk, according to the Insurance Information Institute, a non-profit organization supported by the property and casualty insurance business.

While insurers look at the same factors as lenders, they weigh each factor differently.

“The biggest difference is that insurance risk scores look for stability, but credit risk scores look for a reliable pattern,” Craig Watts, a spokesperson for Fair, Isaac, and Co., whose insurance risk scores are used by about 300 insurers nationwide, told www.insure.com.

Insurance companies typically weigh the factors as follows, according to FIC:

•30 percent: How much you owe. This typically evaluates how many accounts you have, how many have balances, and how much is owed on existing loans.

•15 percent: Length of credit history. Usually the longer your credit history, the better your score on this section.

•10 percent: New credit. If you’ve opened a lot of new accounts in a short period of time, your score will be lower. The system also takes into account how long it’s been since you’ve opened an account. And if you had a bumpy period followed by a strong payment history, it will be considered favorably.

•35 percent: Payment history. You’ll score high here if you make your payments on time and you don’t have any bankruptcies, foreclosures, liens, or the like. If you have made late payments in the past, your score will reflect how frequently you were late and how late you were – in the eyes of insurance companies 90 days is viewed as much riskier than 60 days.

•10 percent: Types of credit. This will factor in your credit mix – retail accounts, installment loans, credit cards, finance companies, etc.

“Insurance scores are also more interested in how regularly you pay than in how much you already owe,” Watts said.

Credit scoring is usually an advantage for those who have stellar credit histories because it can mean lower rates. It can also be advantageous to those who have a good history but may have filed claims in the past.

If you have a wobbly credit history, you can work on cleaning it up by:

•Requesting a copy of your report and making sure it’s accurate.
•Keeping your balances low.
•Paying off your debt.
•Making payments on time.
•Refraining from opening new accounts.
•Re-establishing credit if you’ve had problems in the past – but do so responsibly.
•Contacting a legitimate credit counselor, like Consumer Credit Counseling Services.
•Knowing that closing an account doesn’t wipe it from your credit history.

And if your credit score has bumped up your insurance rates or if you’re looking for ways to reduce how much you pay for homeowners insurance, you can begin by shopping around and comparing rates. You can also lower your premiums by raising your deductible amounts.

For the “What it’s Worth File”. You constantly hear people talk about credit scores. Unfortunately, many of them just offer lip-service and don’t do anything about them. Here is just one more reason to stay on top of your credit score and if it’s wrong – FIX IT! Remember, if you need a Realtor® where you live of need one where you are moving – just call me. I will help you find a “Good ” one! M. K. (Mike) Kissinger #941-979-1455

Tags: Best Home Values in Punta Gorda, Buyer's Market in Punta Gorda, Charlotte County, Credit Issues in Punta Gorda, Insurance in Punta Gorda, Punta Gorda - Best Places to Live in the South, Sunshine State
Posted in Insurance in Punta Gorda | 2 Comments »

Punta Gorda, FL Buyers Question Title Insurance !

Friday, July 8th, 2011

Are You Really Covered by Title Insurance?

Make sure a house’s past doesn’t come back to haunt you!

Title insurance protects the buyer from errors and omissions in the title search – a search performed by the title company going back dozens of years to ensure that your home is free from any other claims of ownership.

If you paid for title insurance when you got your home loan, you probably think the house is truly yours (well, yours and the bank’s) and that the house’s past history can’t come back to haunt you.

But you could be wrong.

A Connecticut man once bought a house, not realizing that the previous seller had two outstanding mortgages on it. The seller’s last name was The First American Corp., but when one of the loans was recorded, it was misspelled as Taquil; thus, a title search didn’t turn it up.

The seller continued to pay on that mortgage after he sold the home – until he ended up filing for bankruptcy. The lender tried to foreclose on the new homeowner. If the Connecticut man had paid cash for his home, had already paid off his mortgage, or had built up equity in the house, his interest wouldn’t have been protected by the lender’s title insurance policy – only his mortgage company’s interest in the home would have been guaranteed.

While misspelled or misrecorded names aren’t that unusual, title insurance is more apt to protect against things like boundary disputes and contractors’ liens – a claim toward your house filed by a builder or contractor who wasn’t paid for work on the house. But any one of a variety of scenarios might come into play, leaving your investment vulnerable if you don’t have the right type of insurance.

Title policy basics

Lender/owner

“A lender’s policy (or loan policy) will not provide the consumer with any protections. It will only protect the lender. That is why we always recommend consumers obtain their own owner’s title insurance policy,” says Lorri Lee Ragan of the American Land Title Association. “For a one-time fee at closing, an owner’s policy will protect the buyer and his or her heirs for as long as they have an interest in the property.”

Virtually all lenders require you to buy the lender’s policy when you buy a home to protect their investment. In some states, or with some title companies, you may also be buying an owner’s policy without really knowing it as part of the lengthy list of closing costs. In other states or with other title companies, you may be asked if you’d like to buy the owner’s policy, or you may never even hear about its existence at all.

The lender’s policy, on average, runs about $800 to $1,000 and is based on the amount of the loan, according to recent testimony before a U.S. House committee. The owner’s policy adds still more to your closing expenses (unless, as on much of the West Coast, the seller pays the amount) and is based on the sales price of the house), Ragan says.

Unlike most other types of insurance, though, this is a one-time cost; you do not have to make monthly or yearly payments. The fee covers the lender as long as the mortgage is in effect or the owner as long as the home is owned.

How necessary is an owner’s policy?

Since it protects the equity an owner has in the home – not the amount financed by the bank, which is covered by the lender’s policy – it’s worth it to do the math. If you’ve financed 100 percent of your home, or your equity investment is miniscule (and an amount you won’t be hard-pressed to lose), then you probably don’t need the owner’s policy.

However, if you’ve put a nice chunk of change down on the home before getting a mortgage to pay for the rest, an owner’s policy will go a long way toward protecting your investment.

Just like any insurance, though, it’s a gamble. If you choose not to buy it, you’re betting that no claims will ever arise on your house. The older your house (and the more previous owners it’s had), the more likely you are to find others coming out of the woodwork with claims of ownership. Claims can be as clear-cut as a contractor’s lien or a long-lost relative of a previous owner, or as odd as the Mississippi woman who sold her home but insisted on retaining ownership of any pirate treasure that was ever dug up on her former property, probably in the vicinity of a particular oak tree.

Bargaining down the costs

Whether a re-issue or new, title insurance costs vary widely, typically depending on the home’s sales price. In many instances, the amount is set by your state. It’s not unusual, though, to see additional expenses related to the title insurance, including fees for research, escrow and courier services.

Most buyers don’t think twice about title insurance and just take it from whichever company the lender suggests. But you can shop around yourself and choose the company that offers the lowest costs. You may be able to save hundreds of dollars by looking for companies who don’t charge for those extras – or who are willing to bargain them down.

You can ask your lender for the names of several title insurance companies, check your local Yellow Pages, or even search online. title fee calculator you can use for your area.

A final word

Now the National Association of Insurance Commissioners and the federal government are digging deeper, aiming for national reform that will prevent such abuses from happening in the first place.

So stay tuned to see what changes are made. If you’re buying property now, be alert to possible abuse, such as a lender or real estate agent strong-arming you into working with a particular title company.

For The “What it’s Worth File”. This article speaks loudly to the fundamental and essential requirement of why a buyer needs to employ the services of a Professioal Realtor®. In most states the services of a Realtor does not cost the buyer anything, the seller pays the commission. Why then if you are the buyer, would you not optimize your chances to protect yourself when ever you can? Remember, if you need a Realtor® where you live of need one where you are moving – just call me. I will help you find a “Good” one! M. K. (Mike) Kissinger – #941-979-1455

Tags: Best Home Values in Punta Gorda, Buyer's Market in Punta Gorda, Buying A Punta Gorda Home, Charlotte County, Coldwell Banker Morris Realty, Finding the Right Punta Gorda Agent, Punta Gorda - Best Places to Live in the South, Sunshine State
Posted in Insurance in Punta Gorda | 1 Comment »

Punta Gorda Residents Know How to Get an Insurance Discount

Wednesday, July 6th, 2011

Tips to Get a Discount on Homeowner’s Policy

A little work upfront may pay off with a less expensive premium

If you’re a first-time homebuyer overwhelmed at the prospect of closing costs, inspection and appraisal fees, “earnest money” and — oh, yes — mortgage payments — undoubtedly you’re a bit queasy about your homeowners’ insurance, as well. It’s the icing on an already very expensive cake.

Rumor has it that you, the newly cash-poor homeowner, have the power to receive discounts on your insurance policy if you take any one of a long list of measures to improve the relative safety of your home.

At this point, you’re probably willing to stand on your head if that’s what it takes to lower your monthly expenditures. None of these measures are that drastic. And sure, they’re going to cost you some money up front.

But they’re a wise investment in your safety; they’ll save you money in the long run; and they’ll even boost the resale value of your home come the day when you decide to sell.

The insurance companies’ rationale is simple: The more safety measures you have in place throughout your home, the less likely they’re going to have to come to your aid following a fire, flood, theft or other major disaster.

The following list outlines some of the protections you’d be wise to investigate and install prior to taking out your homeowners’ insurance policy – or soon after you begin coverage.

There’s no blanket guarantee, of course; some insurance companies offer discounts for these protections, and some don’t. So it’s clearly in your best interests to shop around and find out who will make you the best offer for your efforts.

•Security system (offers an average of between 5 percent and 15 percent discount off your insurance policy, depending upon the provider)
•Carbon monoxide detectors
•Smoke detectors
•Sprinkler system
•Dead-bolt locks
•Heat detectors
•Fire extinguishers
•Handrails installed alongside stairs
•Fire escapes (if present) that are easily accessible
•Wiring system which is both up-to-date and adequate for multiple appliances, which prevents overloading of sockets (a fire hazard)
•Well-grounded outside antenna(e)
•Backyard pool (if present) surrounded by fence with a securely locked and bolted gate
•Heating system which is both updated and regularly inspected by a professional
•Sidewalks outside the house are maintained and contain no large cracks, chips or holes
•Flammable substances kept outside, preferably, at relatively cool temperatures to avoid overheating and risk of fire.

In many cases, new homeowners either have the above safety features, or they’ve performed various updates to their homes, and they fail to report them to the insurance company.

As a result, they end up paying more than they would had they spoken up. Before you meet with an insurance agent, make a list of all of your home’s features, be they mere updates or safety features such as those listed above. List anything and everything you can think of; you have nothing to lose but money.

Some insurance carriers offer a discount to homeowners of properties built within the last decade. And if your home sits nearby a fire department or even a fire hydrant, you may apply for an additional discount; ask if the insurance provider offers such a benefit. You may also wish to investigate the option of combining your homeowners’ insurance and automobile insurance under one policy, which typically results in a lower payment for you.

Another money-saving measure factor you may consider is raising your deductible, which can lower your premium significantly. Before you sign enthusiastically on the dotted line, however, make sure that in the event you need to use your insurance policy that your budget will accommodate a higher deductible.

In today’s competitive market, it’s particularly important to shop around, because it’s quite possible you’ll receive widely disparate quotes on policies that offer essentially the same coverage. This climate is to your advantage, however. If you don’t like the quote you receive, you’ll find plenty of other providers who will offer you a potentially better quote. But before you make judgments, be sure that the coverage you’re being offered is comparable to other, more expensive policies.

For the “What it’s Worth File”. Once again the old mantra, “knowledge is power”, proves to be true! Armed with all these power points, you are well armed to do battle with any insurance company and should feel empowered and able to accomplish what you need to do. Go forth and slash those premiums! Remember, if you need a Realtor® where you live or need one where you are moving – just call me. I will help you find a “Good” one! M. K. (Mike) Kissinger – #941-979-1455

Tags: Best Home Values in Punta Gorda, Buying A Punta Gorda Home, Coldwell Banker Morris Realty, Insurance in Punta Gorda, Port Charlotte Real Estate, Punta Gorda - Best Places to Live in the South, Sunshine State
Posted in Insurance in Punta Gorda | 5 Comments »

Search

My Blog

Hot Topics

M. K. (Mike) Kissinger
Realtor Associate

Company Info

Real Estate Tools