All_risks_insurance

Investing In Your Home With Insurance

Every policy geared at insuring your home is going to be a little different depending on the insurance provider you go with, the level of coverage you choose, and the diligence with which you track changes in what is offered by the company that insures you. You’re simply going to have to go over your policy with a fine-tooth comb in order to see exactly what is covered, assuming that anything not expressly stated is not going to be covered.

However, that could leave a pretty large list of things that would not fall under your policy, and that can be a bit disconcerting considering how much you’re paying to insure your biggest asset: your house. So here are just a few things that may not be covered and what you can do to protect your home.

Natural disasters

In many cases, natural disasters like floods, earthquakes, tornadoes, and so on are not covered by a standard homeowner’s insurance policy. Although some areas that are prone to these disasters will require you to carry this insurance as an addition to your homeowner’s policy, low-risk areas generally won’t call for such coverage, meaning your policy provider may not even make the recommendation. However, you may still experience these natural disasters, so you should talk to your provider about the likelihood of such events and whether or not you should take out a policy that covers them.

Liability

Did you know that if guests or workers in your home suffer accident or injury on the premises you could be responsible for their medical bills and any legal action they take against you? Wouldn’t you prefer to be covered by insurance in case of such events? Suppose your dog bites the mailman, a workman falls off the roof, or your child’s friend leaps off the top step like a superhero only to break his leg on the way down. Each of these occurrences could result in a hefty payout on your part, so find out if accident liability is covered by your policy instead of assuming that it is (possibly wrongly).

Home-based business

If you run a business out of your home, there’s a good chance that it isn’t covered by your homeowner’s insurance. While working online as a personal assistant won’t require you to take on any additions to your policy, businesses that require you to manufacture goods in your home or have employees working with you on your property could pose a risk since they almost certainly won’t be covered. And what if you are sued by a client or consumer? How will you pay for a settlement against you? These are all things you need to talk to your insurance provider about in order to make sure your business is covered.

Assets in the home

Although most policies have some provisions to cover valuables in the home in case of theft or some sort of natural disaster, not all of them offer this addendum, while some require you to report on assets beforehand. Even then, they may require proof such as photographs or serial numbers. You need to know what is covered and what is required for home insurance before disaster strikes.

Future assets

Most people buy a home with the intention of waiting for the value to appreciate so that it can be sold for a profit. But your insurance may not account for this adequately. For this reason, you may want to opt for some kind of blanket policy that covers future appreciation and accumulation of assets so that you don’t wind up with less than you bargained for.

 

See our resources for agencies willing and able to assist in any way they can.

 

Real-Estate

How to Kill a Deal While Investing in Real Estate

Real Estate Investing

Finding a new deal today may not be all that difficult, however, turning your new found investment into a solid deal takes a little more effort and diligence. Deals can fall apart as quickly as they come together if you are not doing your homework! I want to share a few tips with you on how to keep your deals together when you are performing any one of the investment strategies I teach.

Wholesale

 

When doing a wholesale, you have to keep a couple things in mind. First of all, you need an escape clause in case it turns out that you can’t find a buyer for the property you put under contract. This creates the need for one small contingency.

I always make deals subject to the approval of my partner. This way if I can’t sell the house I can go back to the seller and tell them we need to renegotiate otherwise my partner is not going to approve the sale. If I didn’t do this, then my deal could slip through the cracks and I would be losing out on a lot of potential money.

Secondly, you have to have a firm grasp on the amount of money the property needs in repairs so you can estimate how much you can sell the house for and how much you can charge for a fee.

Deal Killer

When you are performing a subject-to deal, there is one major deal killer that you must watch out for. This is known as a clouded title. You have to be able to perform a miniature title search. If you are not comfortable with doing this, then hire a professional. Remember, you are going to be assuming the sellers mortgage and taking over title to the property.

This means you are getting whatever is coming with that house on its title. If there is a hidden second mortgage somewhere, you are now responsible to pay it off. Talk about a headache, right? Well, if you follow these simple rules and perform your due diligence this won’t happen to you.

Short sales create a similar scenario as subject-to investing. I always do some preliminary research on these properties and it starts with asking the homeowner if they have any liens on their property that they are aware of. I then go to the city hall and perform a title search. If you make an offer to the bank, you need to include any liens that need to be paid off including mortgages, hospital bills that are now attached to the property, tax liens, etc.

You don’t want to receive a phone call a few days before closing informing you that you now owe ten thousand dollars in delinquent taxes because you forgot to include this in your preliminary settlement statement when you made your offer to the bank.

Conclusion

Diligence, research, and proper management will keep your deals going steady without a hitch. You must always be alert and ready to problem solve. It is an essential part of being a real estate investor.