Insurance Deductible Explained

Thursday, October 30, 2014

A) You’ll usually spend less for a newer home than an old one. Expect savings of around fifteen percent for a new home. The features of a brand new home are in excellent working condition is the reason for such discounts. You don’t usually see a worn ceiling on a brand new house, do you? This means less risk to the insurer and less expensive premium for you.

I had previously recommended that you buy gold when it was between $580 and $600 an ounce. Currently, gold is trading at around $670 an ounce up more than 10% from the levels I recommended. However, gold has some serious technical resistance at the $670 level and if it fails to break out through that level it might go down in the short-term. If it does go down again to the $620 – $640 level, I like it at these levels as a buy. I believe that gold will go to $800 an ounce before the end of 2007.

The last point to think about affecting South Florida real estate is the escalating costs of propertyinsure.wordpress.com/ and property taxes. These increasing costs are putting more downward pressure on real estate prices.

There are two ways to decrease the cost of your home insurance. The first thing you should do is put a security system in place. This will potentially reduce your annual premium by 5%. Keep in mind that the insurer will want proof that your security system is operational, and they may request a bill or a service contract. The second thing is to put smoke detectors around your home. This could save you as much as 10% per year.

Install dead bolt locks on doors leading outside from the house these provide greater resistance to external breakage and therefore are seen as more secure.

Pick a car that has the following: Daytime running lights, anti-lock brakes, alarm system and any other security and safety feature. . Since they will keep you and your vehicle safer they are considered better risks by insurers. These will enable you get cheap car insurance.

This next one surprised me because I thought I already had a low rate. I was paying $35 a month for a $150,000 life insurance policy, but I was able to find a better deal elsewhere, so now I’m paying $25 a month for $250,000 in life insurance. The key is to talk to friends and relatives about suggestions or ideas. Ask around and make phone calls because there are better deals out there without losing the quality of service. Running total so far is $81 in savings a month.

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.

Your closing costs may also be added to your mortgage. In some locations, the seller can be persuaded to pay closing costs, or you may be required to pay the closing costs up front out of your own pocket. Speak with your realtor or mortgage company to determine exactly how much the closing costs will run, so you can plan accordingly.

The information that you get from home insurance comparisons can be very helpful in the shopping process. Make sure you include everything that you want covered in your policy, and check that you know what basic are covered and what contents you may need to add. Such as if you have a hot tub, swimming pool or extra storage buildings that are not attached to the house. All of these things are considered extras and can raise the price of the plan.