Indeed, insurances can be tricky. Whether they’re made to be that way, or the insurance companies love specifics, we don’t know. All we have is a copy of what they call “policies”—and sadly, we can’t do anything about it but comply.

Gerri Willis of CNN has revealed some of their boo-boos regarding premium coverage. It is true that if you want a policy that’ll cover almost all possible catastrophes, then it would be a little expensive. If you don’t want to shell out loads of money to your home insurance, then might as well find someplace else that’s far away from the “natural calamity” zone. Don’t risk it.

Photo taken from http://www.time.com

What does homeowner’s insurance cover?
Homeowner’s policies are designed to provide financial protection in the event of damage to your home, such as fire or water damage. Your policy will also protect your personal property, such as furniture that is damaged as a result of a fire, or the theft of electronic equipment. In addition you will be protected from liability as a result of homeownership, such as a visitor who slips on your icy steps and breaks an arm.

The standard homeowner’s policy covers the following:

• The physical structure of your home, permanent structures on your property, and your personal property.
• Personal liability exposures that arise from being a homeowner.
• Additional costs that you may incur as a result of a covered loss, such as a fire in your home that makes it uninhabitable.

The homeowner’s policy that you purchase determines which perils you are insured against. Most homeowner’s policies are written under the HO-3 contract form. Form numbers are standardized, so if you purchase HO-3 insurance, you’ll get the same coverage regardless of your insurance provider. The HO-3 contract form provides coverage for the following:

• Broad coverage for your dwelling. Damage to your dwelling from most causes is covered unless it is specifically excluded.
• Damage to your personal property for “named perils” only. Your personal property is covered only against the perils specified in the contract.
• Limited coverage for jewelry that is stolen. Coverage is usually $500 to $2,000, depending on your state of residence. Most policies don’t cover jewelry that is lost.

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“The internet can work wonders”. For the women realtors in California, this is probably one of their dictums in life now that they have teamed up with Domus Consulting group and Realivenet, two companies that offer internet marketing. Their website, WCRblogs.com is synonymous to that of a real estate aggregate site, but it actually features the blogs of women realtors in California, rather than buyer and seller postings. The women who are members of the WCRblogs.net said that having their own website is actually much better since they could track down their blog hits. One of the members claimed that her blog has been on the top 10 of WCRblog.net’s list.

Photo taken from http://www.ocean.edu

As a condominium owner, one needs to insure not only their personal possessions in the condo, but also any built in units such as cabinets, fixtures, appliances and shelves. In addition to covering the personal property, a condo owner also needs liability coverage. The liability portion of the policy would cover injures or damage to people or property that the condo owner would be liable for.

Below is a checklist of the top four questions to consider when choosing a condominium insurance policy:

1. What are your ownership and insurance responsibilities in the condo association’s Master Deed (the insurance requirements the association expects from you)?

2. Does the policy you are considering include broad water damage coverage for problems such as sewer and drain back-ups?

3. Does your condo association provide comprehensive or blanket coverage to protect you against other condo owners who may not have adequate coverage?

4. Do you have expensive personal items such as jewelry or furs that you may need additional personal property coverage for?

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Most home sellers want a cash sale, but for those prepared to hang on to the property awhile longer, the benefits can be compelling. Bob Bruss, an expert’s expert on lease-purchases, says that in this market, there are always more buyers than sellers – he has been both. As a result, buyers generally pay top dollar, perhaps including some assumed future appreciation.

To be sure, the deal may fall through, but in that case the seller gets to pocket the option fee and rent premium. The seller also enjoys the tax deduction on his mortgage interest payments during the option period.

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The lease-purchase offers homeownership opportunities to consumers with little cash and/or poor credit, who are prepared to bet on themselves. The bet is that before the option period expires, they will qualify for the mortgage they need to exercise the purchase option. During the option period, they have the opportunity to rebuild their credit and accumulate equity while living in the house.

The development of the sub-prime market, in which consumers with poor credit or no cash can obtain loans, does not seem to have lessened interest in lease-purchase. It is very likely that those who succeed in exercising their option under a lease-purchase do better than if they had financed a conventional purchase in the sub-prime market. The savings in finance costs will more than offset a higher price on the house. But those who can’t exercise their option will lose their bets.

Consumers who need to rebuild their credit rating during the option period should understand that paying their rent on time won’t do it. Rent payment information is not used in compiling credit scores. While Fair Isaac, the company that developed credit scoring, has recently unveiled an “expansion” score based on “non-traditional credit data,” it does not yet include rent payment information from individual home owners. Lease-purchase buyers who need a higher credit score must focus on their credit cards and loans.

Even though it is costly, the right not to exercise the option is of value to buyers. If there is something seriously wrong with the house, neighborhood, or neighbors, the money left behind on a lease-purchase is much smaller than the cost of an outright purchase followed by a sale.

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What risks do a lease option hold for the buyer?

Individuals who attempt to buy homes on a lease-option rarely end up buying the home. This often has to do with the reason they try to buy on a lease-option. They usually cannot qualify for a home loan and expect that they will be able to qualify after a period of time. Later, they find they still cannot qualify – whether it is because of poor credit, lack of income (documentable income), or lack of savings to have a large enough down payment.

If this happens, you lose any option money you might have paid up front or as part of your monthly payment.

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