6 Frequently Seen Home Insurance Mistakes That You Could Literally Lose You
Everything

Taking out the right property and casualty insurance coverage might not rank
high on your list of priorities and, alongside such things as investment and
estate planning decisions, questions about the language in your homeowners
policy might seem barely worthy of consideration. Yet, the more successful you
become, the more involved your asset-protection needs are likely to be—and the
more you have to lose. Suppose, for example, that in addition to your primary
residence—a historic home—you also own a house at the beach and a condo in
the city.

For instance, let us assume that your properties are in 3 different states, the
value of your collection of Old Master paintings has risen rapidly and you just
volunteered to serve on the board of directors of a charitable organization.
Almost every aspect of your situation could cost you dearly.

The laws governing insurance vary widely from one state to the next, different
kinds of property need specialized coverage and art collections and other unique
items might be difficult to fully protect. Meanwhile, serving on the board of a
non-profit organization might land you with additional personal liability.

Safeguarding yourself, your family and your property could mean buying extra
coverage, but more insurance is not always the best solution. Rather, it’s
vital to review your needs, give some thought to specialized policies or policy
options and coordinate your insurance cover with other aspects of your financial
situation.

Here are 6 problems which could turn out to be very costly.

1. Leaving gaps in homeowner’s cover.

Any homeowner needs to review their cover regularly so that they can keep up
with increasing replacement costs. But, insuring different kinds of home in
different locales poses extra challenges. If you purchase insurance from more
than one carrier then you coulf be faced with several different rules,
limitations, and plan renewal dates. For example, the liability limit on the
policy covering a second home could fall below the minimum on an excess
liability plan designed to complement the insurance on your primary home and you
might wind up being responsible for the difference.

2. Neglecting your property’s unique characteristics.

One of the perks of wealth is having the means to own great homes but one of the
problems is that they might be difficult to insure adequately. Normal
homeowner’s coverage will not pay for the hard-to-find materials and
craftsmanship needed to rebuild that 19th century showplace which you have
painstakingly restored. Coastal properties may face hurricane damage, while a
home in the mountains of California might be at risk from wildfires or
earthquakes.

3. Under insuring art and collectibles.

Normal homeowner’s plans place a limit on cover for the loss of such things as
antiques, furs, and other valuables. And although you could arrange additional
coverage, insuring the true value of a collection of contemporary art will
usually mean taking out a specialized plan addressing several critical issues.

4. Omitting to organize insurance for employees.

When an individual works for you as, for instance, a nanny, landscaper or
personal assistant you could have a liability for medical expenses and lost
wages if the person is hurt on the job. Various states require household
employers to pay into a workers compensation fund while in other states it’s
optional. All The Same, providing such insurance might be required for ensuring
your financial health.

5. Neglecting your liability as a member of a board of directors.

Some form of excess liability coverage may help to protect you if you’re sued
as a director of a charity or, if you prefer to have more comprehensive
protection, you might want to think about special directors liability insurance.

6. Not getting regular plan reviews and updates.

Your financial life isn’t static and neither are your insurance requirements.
The value of a collection may rise, home renovations might mean a sharp rise in
the value of your home and the re-titling of assets as part of your estate plan
or as a result of the death of a family member, divorce, or the birth of a child
may necessitate policy changes. Even without any major events, you will almost
certainly need to undertake a detailed review of all your insurance cover at
least every two years.

Whatever the level of homeowner insurance you need equip yourself with the very
best free and no obligation homeowners insurance quotes today.

$8000 Tax Credit To Be Allowed For Down Payment in conjunction with FHA mortgage programs for Florida buyers.

HUD has approved the use of the $8,000 tax credit to be used as a bridge loan for down payment on FHA insured loans.

In what could be a huge boost to the housing market, HUD Secretary Shaun Donovan’s has decided to allow Florida home buyers to use the $8,000 first-time home buyer tax credit in conjunction with FHA financing to help cover their down payment and closing costs on Florida FHA mortgage loans.  

One of the biggest challenges for Florida first time home buyer is saving up enough money for a down payment on their home purchase. The FHA mortgage program in particular requires the borrower to come to closing with 3.5% of the purchase price as their down payment. Often borrowers have to borrow these funds from family or close friends in an effort to take advantage of the historically low housing prices  that are now available to Florida home buyers.

The measures announced by HUD would allow FHA-approved lenders; federal, state and local government agencies; and FHA-approved non-profit organizations to supply Florida home buyers with short-term or “bridge loans” of up to 10% of the purchase price to use for the down payment of a Florida home. These funds equate  up to $8,000 first-time home buyer tax credit.

Longer term loans secured by second liens can also be used by government agencies and FHA-approved non-profit organizations to facilitate home sales. Several state housing finance agencies have introduced such programs and a number of agencies are considering that possibility.

More information about these programs can be found on the National Council of State Housing Agencies Web site at http://www.ncsha.org/section.cfm/3/34/2920

Previously, the Florida home buyer would have been unable to access the tax credit until they filed their next annual tax return or an amended 2008 tax return and received the refund from the IRS. Until then they borrowed the funds from family and friends with the understanding that they would be able to pay it back after they filed their income taxes.

The next step is to see how Florida FHA-approved lenders use HUD’s new guidelines to actually monetize the tax credit for first-time home buyers and structure the payback provisions o f the loans. NAHB encourages lenders to act promptly to put these provisions into place.

To qualify for the tax credit, Florida first-time home buyers must actually close on their home purchase by Dec. 1, 2009. Florida Buyers can take the credit on their 2008 or 2009 income tax return.

Thomas Martin
1st Continental Mortgage

http://www.fhamortgageprograms.com/florida/

954-391-8387

http://www.realtor.org/press_room/news_releases/2009/05/re_summit

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The main problem people face finding themselves in financial jeopardy is that the negative effects the money problems have had on your credit report will usually keep you from getting any help to get out of trouble.

Fortunately for those facing foreclosure, there is an option that can stop the process even with bad credit. Many times financial situations can change quickly with an illness of the loss of a job. As upsetting and stressful as the never-ending creditor phone calls can be from unpaid bills, they do not hold a candle to the heartache associated with the possibility of losing your home.

Hector Milla Editor of the “Best Mortgage Loan Modification” website — http://www.BestMortgageLoanModification.net — pointed out;

“…Mortgage loan modifications are a new option in an attempt to help homeowners from losing what they have worked so very hard for. One major distinction from a refinance is that you actually need to be at least three months behind on your mortgage to qualify. You will also have to have had your mortgage prior to January of 2008. Instead of the focus being solely on credit for a loan mod, you will need to explain yourself in a loan modification letter…”

The letter must chronicle, without emotion, the events leading up to your falling behind in your financial obligations. Although this may be the part that is most important to you as the person that lived it, the lender for a modification loan is more interested in what you have done to rectify your financial problems and how you will prove to them that you will be able to maintain the modified payments should they decide to grant you the opportunity.

“…Finally there is a program that understands there are circumstances that may be unavoidable and can affect your ability to meet your debt obligations on time. This program can help you save your home even when your credit has gone bad and if you are approved, you will actually be taking the first step toward improving your credit rating…” H. Milla added.

Further information about how to get professional assistance with a mortgage loan modification by visiting; http://www.BestMortgageLoanModification.net

Hector Milla runs his corporate website at http://www.OpsRegs.com where you can see all his articles and press releases.
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