Tag Archives: insurance coverage

Quick Start Your Home Equity With Rent To Your Home

If you are a landlord or manage rental properties, you know that the rates for insuring some properties can be astronomical and others are, frankly, ridiculous. Insurance companies know the risks associated with insuring rentals. If you are looking for a deal to keep your rentals insured and still profitable, you might be tempted to cut corners. Don’t. Instead follow these tips for landlords and property managers on how to find cheap insurance for your rental units.

In most rural areas, the state www.propertyinsure.wordpress.com/empty-house-insurance Association will do a visit every two or three years. They issue a points rating for every fire department and that can be the difference between fire coverage that’s affordable and quotes that bring a sharp intake of breath. Then there’s the question of communications. If you have an emergency, how easy is it to call help, and how quickly can all the volunteers gather together? Live in the wrong place and your house is a pile of cooling ash before any help arrives. Now change fire into all the problems. There’s that cellar full of water. Who’s going to reinforce the hillside to ensure a wall of mud or worse is not going to wipe you off the map? And what happens when winter snows bring down your power cables? And who said anything about termites?

Honestly, how handy are you? What was the last thing you worked on around your home and how did that go? If you’re a handy guy or girl maybe installing a security product will work out okay for you, but for most people placing and installing home alarm equipment even when its wireless is a daunting task. Components need to be placed properly, devices need to talk to each other to work in harmony, and if you are going to have it monitored then signals need to be sent to the central station. That sounds frustrating. Most alarm companies offer installation for free up to $99 and give you the alarm for free.

B. How much is the rehab going to cost? I have seen a lot of people in this business that are very experienced. The majority of them will tell you that their rehabilitation cost will run 1 1/2 more than they expected or estimated. It’s a must to build in cost over runs. If you are a new investor take your estimated cost and double them for figuring your rehab.

Deductible. While a high deductible could bring down the premium costs, it may not be as valuable as it looks. A high deductible means you will be out of pocket for expenses before the insurance kicks in.

Look for damage. First of all, see whether it’s necessary to get your home insurance company involved. Often, damage will be pretty minimal, and if you luck out, you can work with your neighbor to move the tree and repair any damage, especially if it’s just a limb or two that has fallen and not the entire tree. Your neighbor is likely to be pretty angry–don’t admit fault, though, or agree to pay anything until insurance has become involved. Treat it similarly to a traffic accident; do NOT admit fault.

The main reason you should power wash the exterior of your house is preventative maintenance. Building siding, sidewalks, patios or wooden areas like your deck and fence can have their lives extended by regularly scheduled maintenance plans. Regular power washing can help to eliminate contaminates that contribute to the degradation of a structure through rot, decay, and premature age.

You’re better off considering your house payments as a percentage of your gross income. Lenders like to see that your house payments are less than 28% of your gross income and your total debts less than 41%.

Advance payment of choice is usually between 2-4% of the current asking price of the house. Typical monthly credits vary from 10% -20% of the actual monthly installments. The house itself should be a good area with good options. It should be well maintained with recent updates to windows, roof and furnace.

Smart shopping will save you much in premium dollars. Get and compare quotes for all your insurance policies. I recommend that you obtain quotes from a minimum of five or more reputable sites for each policy.