Home Insurance Infographics

The Importance of Renters Insurance

1 in 4 Households in America is considered low-income renters.

32.6% of Americans rent their home, but only 50% of them have renter insurance. Exposing half of the market to high financial risk.

 

$180

The average yearly cost of renter insurance to cover up to $300.000 in liability

 

QUALITY OF LIFE

Renter insurance, when done right, can provide the right safety net in case of a situation that otherwise will create big stress.

 

ECONOMIC IMPACT

Lower-income households are much more vulnerable to unexpected expenses. In case of an emergency situation that requires moving out and loss of belonging, renter insurance will make play a big role in one situation.

 

LIFE-CHANGING EVENTS

Natural disasters are likely to increase in frequency and the demand for help is expected to increase in the future. Renters have the ability to create a safety net for this situation.

Source: Behance

HOME INSURANCE Do’s and Don’ts

COMPETITIVE RATES
DON’T Bundle For Convenience
Bundling with other insurance CAN save you money, but don’t do it just because it is easier. Home insurance is very different from automobile insurance. 

 

DO Take Time Researching
Insurance companies need you just as much as you need them. Don’t ever let yourself feel pressured into a choice. 

 

DO Check For Special Rates
Age, good credit, certain house features, etc. can qualify you for discounts. 

 

DO Shop Around
Get multiple quotes to ensure you’ve found the best fit! 

 

COMPREHENSIVE COVERAGE
DO Take Note of Time Limits
You are only granted a certain amount of time to file a claim. Make it a priority. When in doubt, it’s best to go ahead and file. 

 

DO Assess Values Before Claim
Keep a record of how much different valuables are worth before an incident happens. 

 

DO Keep Insurer Updated On Home
Any major projects or maintenance you do should be reported to your insurance provider. 

 

DON’T Pay For Land
Ensure the structures you own. Don’t be tricked into insuring the land they sit on. The land is not going anywhere. 

 

DO Photograph/Video Damage Immediately
Document the reason for your claim as soon as possible so that you don’t have to think about it later. 

 

DON’T Forget To Insure Additional Items
Usually, things like jewelry and electronics require additional insurance. Be sure to clarify before making payments 

 

CLAIMS STATISTICS
Wind and Hail
Most common insurance claims at 47.2% 

 

Jewelry
Most common contents claim 16% 

 

$952
National Annual Average Gross of Home Insurance 

 

$8,793
Amount of average claim

Source: House Hunt

Why Do I Need Title Insurance?

What Title Insurance Protects Against. 

– Impersonating fraudulently the true owner of the property
– Forgery of the deed, releases, or wills
– Real Estate fraud Undisclosed or missing heirs to the property
– Any Instruments executed under invalid or expired power of attorney
– Mistakes when legal documents were recorded Deeds by someone, not of sound mind
– Deeds by a minor
– Misinterpretations of wills Deeds with misrepresentation of marital status
– Liens for unpaid estate, income, inheritance, or gift taxes 

 

Mortgage tenders will require Title Insurance
Why do I need title insurance on new construction?
Yes! It protects against sub-contractors, liens, improper surveys, and prior owner defects.  

Source: Sun National Title Company

7 Tips Every Homeowners Need to Know about Home Insurance

WHAT IT COVERS

Most Home Insurance policies will pay for damage to your home & possessions in the events of storms, fire, theft, or vandalism. Home insurance also provides liability insurance if someone gets hurt on your property and decides to file a lawsuit. Home insurance can also cover the costs of a hotel if you are temporarily displaced from your house.

 
WHAT IT DOESN’T COVER
Standard policies have exclusions, including earthquakes, power failure, war, nuclear hazard, government action, faulty zoning, bad repair or workmanship, and defective maintenance. Flooding and water damage are usually only covered in certain conditions. As a rule of thumb, water from above – like a burst pipe in the ceiling – is covered. But, water from below – like a backed-up sewer – usually isn’t. Be sure to talk to your insurance agent about the details of your policy. You may want to consider purchasing supplemental coverage.
 
YOU SHOULD SHOP AROUND
Take the time to research your prospective Insurance agencies before you commit to a policy. Read reviews and consider recommendations from friends and family. Finding a cheap rate Is great – but remember that in the case of an emergency you will need to be dealing with the insurance company directly. Having an insurance company with great customer service can really help alleviate some of the stress in an already stressful situation with your home.
 
HOW TO LOWER YOUR RATES
Did you know that having things like a working smoke detector and burglar alarms can lower your rates Preventative actions can reduce premiums? Insurance agents typically price your premium based on how much risk they foresee. So, by reducing your liability risks, you can qualify for lower rates.
You may also save some money by bundling your other insurance policies. like a car or life insurance, with your homeowners.
 
DON’T WAIT TO FILE A CLAIM
Make sure you report any possible claims as soon as possible. Many insurance companies have a time limit for reporting claims. If you wait to ring, you may not be eligible for benefits. especially if waiting has caused the problem to worsen. This is especially true in instances of water damage – where mold can set it quickly and raise the costs of repair.
 
KEEP A RECORD
It is important to document everything that occurs during a loss. Write down the damages. and what you have done to help mitigate the damages.
In addition to saving receipts. contracts. and appraisals. document phone calls by writing down who you spoke to and when. Insurance claims can be cumbersome and confusing. Don’t depend on your memory alone to remember all the details.
 
HOW JEWELRY IS COVERED
Jewelry is usually covered in a homeowners policy – but beware – it is ‘ typically only covered to a certain amount. When you sign up for homeowner’s insurance. be sure to ask your agent about the limits. If you own jewelry that has a value that exceeds the standard policy, you may want to consider buying supplemental Insurance so that in case it is lost or Stolen- you are covered 100%.

 

Source: Legacy Lending Group

Best Ways to Use Home Equity

Using home equity to your advantage can help you in a variety of ways financially.


What is home equity?

The positive difference between the value of your house and the amount you owe on a mortgage is defined as home equity


How can you use your home equity?

Residential Mortgage Brokers in Toronto advise a few ways of using home equity prudently :

1. Make an expensive purchase: Use home equity to make an expensive purchase which otherwise wouldn’t have been possible because interest rates on home equity loans are less and interest payments are tax-deductible.


2. Invest in home renovations: The more you invest in your home, the higher the value of your property and thus it increases the home equity.

3. Finance long-term care: Home equity can be used to pay for long-term care expenses. Whether it is a reverse mortgage or home equity line of credit, you have to be careful while using it.

4. Invest in real estate: Using your home equity to buy an additional investment property is a clever way of using the equity. Residential mortgage brokers in Toronto can help you in finalizing the deal.

5. Contingency fund: Home equity can be used in times of financial crunch because it is a cheaper source than payday loans or credit cards.

Source: Outline Financial

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.