A Word of Caution

It’s important to understand a few things upfront. First, there are several types of standard homeowners policies, and each provides different coverage. What’s more, even policies of the same type often don’t provide exactly the same coverage. Another key point: To say that you’re covered for something doesn’t always mean that you’re fully covered. Out-of-pocket deductibles typically apply to the dwelling and personal-property portions of your policy, and every part of your policy is subject to coverage limits. Losses that exceed these limits must be paid out of your own funds.

Home Coverage

Are you covered if…?

• Lightning strikes a power line leading to your house and starts a fire?
  Yes. Fire damage is standard coverage.
• A delivery truck careens off the road and smashes into your house?
  Yes. Damage from vehicles is standard coverage.
• A pipe bursts in your cellar and covers your downstairs room with water?
  Yes. Water damage from burst pipes is standard coverage.
• A huge gust of wind blows a tree onto your house?
  Yes. Windstorm damage is standard coverage in most parts of the country.
• A repairperson damages your walls and ceilings?
  Yes. It doesn’t matter who caused the damage.
• The river behind your house floods, and you have water damage?
  No. Flood protection requires separate insurance. So does earthquake coverage.
• Your house slides down a cliff?
  No. You need separate insurance to protect against this.
• Mice infest your home and chew up your insulation?
  No. The same exclusion applies to infestation by insects and other pests.
• The market value of your home plummets?
  No. Market value has nothing to do with insurance, which is based on replacement cost.
• A house that you haven’t lived in for months is vandalized?
  No. To be covered, the house can’t have been vacant for more than 30 days.
• You need to upgrade your home to meet local building codes?
  It depends. You may need an optional endorsement for this.
• Your home is damaged by water coming in from backed-up sewers?
  It depends. This coverage may also require an endorsement.

Personal Property

Are you covered if…?

• A wild animal gets into your house and rips apart your upholstery?
  Yes, unless the animal is a rodent or a pet of yours. If the rodent or pet causes a fire, you’re covered for the fire damage.
• A thief breaks into your home and steals your stereo, jewelry, and the family silver?
  Yes, but keep in mind that separate coverage maximum limits apply to some types of personal property.
• Your golf clubs are stolen from the trunk of your car?
  Yes (even though the theft occurred off your premises), but you may not receive the full replacement value.
• Your wardrobe is ruined by the smoke from a fire?
  Yes. Clothing falls under personal property coverage.
• The power goes out on your block, causing the food in your refrigerator to spoil?
  Yes, under most policies ($500 is a standard limit).
• The laptop computer that you use for your home business is stolen?
  No. The laptop would be covered only if it were for personal use at home.
• Your boat is damaged in a storm?
  No, unless it meets the requirements for a “small-motor” boat. Boats generally require separate insurance.
• Your central air-conditioning breaks down in the middle of summer?
  No. Homeowners insurance doesn’t cover heating, cooling, and plumbing systems or home appliances for simple breakdown. If they are damaged by a covered peril, such as fire, they are covered.
• A repairperson scratches up your furniture?
  No, in most cases. Damage to your personal property is usually covered only when it’s caused by a named peril (e.g., fire or vandalism).
• A company dumps toxins into the creek that runs through your yard?
  No. The company that did this would be responsible for the cleanup bill and other damages.
• Your fine art collection is stolen?
  It depends. In many cases, you need a special endorsement to cover valuable art and antiques.
• The movers you hired damage your belongings?
  It depends. Some policies will cover insured property during a move. Otherwise, you need separate transit insurance.

Your Liability

Are you covered if…?

• You accidentally leave your boots on the front step, and your invited neighbor trips over them, breaking her hip?
  Yes. This is a straightforward liability question.
• You accidentally run your shopping cart over a man’s foot at the grocery store, breaking his foot?
  Yes. Your liability coverage protects you off your premises as well as on.
• Your son hits a baseball through your neighbor’s window?
  Yes, as long as your son didn’t break the window on purpose.
• Your dog bites a passerby on the street?
  Yes. However, many insurers will cover you only for a certain number of dog bites (in some cases, only one).
• After an accident at your home, the injured party brings a lawsuit against you, and you’re saddled with legal fees?
  Yes. Most homeowners policies cover the costs of defending you against lawsuits.
• A client is injured by falling boxes in your home office?
  No. Separate liability coverage is needed when you run a business out of your home.
• You’re renting out part of your house, and your tenant’s stuff is stolen from the premises?
  No, and you’re not liable, either. Your tenant needs renters insurance to protect his or her belongings.
• You beat up someone who insulted your wife?
  No. Homeowners insurance does not cover liability arising from injuries you have intentionally caused.
• You throw a rock at a squirrel and it hits and injures a neighbor?
  Yes, because even though throwing the rock was an intentional act, you didn’t mean to hurt your neighbor.
• You swing the sail on your boat and accidentally hit your passenger with it?
  No. Homeowners insurance does not cover liability arising from the use of boats and watercraft.
• You accidentally run someone over while driving down the street?
  No, because your auto insurance would cover your liability in a case like this.
• A tree falls from your yard into your neighbor’s yard, breaking his fence?
  It depends. Your neighbor’s insurance would generally cover damage to his own property. However, if you were negligent (e.g., your neighbor told you the tree was dying, and you did nothing), you’d have to turn to your own liability coverage.

If something just happened and you need to know if you’re covered, you should immediately call your insurer or agent or take a look at your policy. But if you’re simply wondering what’s covered (and what’s not) for future reference, you might start by familiarizing yourself with some real-life scenarios.

If you’re curious about your insurance needs or emergency funds, our experts at Choice Wealth would love to meet with you.

Important Disclosures:

Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

The information provided is not intended to be a substitute for specific individualized tax planning or legal advice. We suggest that you consult with a qualified tax or legal professional.

LPL Financial Representatives offer access to Trust Services through The Private Trust Company N.A., an affiliate of LPL Financial.

This article was prepared by Broadridge.

LPL Tracking #1-738016

The post Are You Covered If…? appeared first on Choice Bank.

The three most popular types of loans:

1. Fixed-Rate Mortgage

This is the most common type of loan, and for good reason. With a fixed-rate mortgage, the interest rate remains the same throughout the loan’s duration, which is typically 15 or 30 years.

Those who are interested in consistent housing payments or don’t plan to move anytime soon should use this loan

2. Adjustable-Rate Mortgage:

An adjustable-rate mortgage is a loan with interest rates that can change periodically. This type of loan typically begins with lower, fixed payments at an introductory rate. Following this introductory period the interest rate adjusts to current market rates.

People who plan to quickly pay off their mortgage or people who plan to sell their home before their fixed-rate period ends should use this loan.

3. FHA Loan

In an effort to make buying a home more attainable for Americans, the Federal Housing Administration offers FHA loans, which allow buyers to make a minimum down payment of as little as 3.5 percent.

People who have a weaker credit rating and/or don’t have enough money for a large down payment should use this loan.

At the end of the day, talking to a mortgage professional will help you decide which type of loan is best suited for you.

Application Documents Checklist

To be able to predict your financial future, lenders need to take a hard look at your past and present financial situations. Use this checklist to help you gather the necessary paperwork.

• Bank statements
• W2s from current and past employers
• Paycheck stubs
• List of all debts
• List of all assets
• Credit report
• Residential address for the past two years
• Landlord names and addresses for the past two years
• Proof of timely rental payments
• Divorce decree (if applicable)
• Gift letter (if using gift funds)
• Bankruptcy paperwork (if applicable)

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.

All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

This article was prepared by ReminderMedia

LPL Tracking #1-05166933

The post The Ultimate Home Financing Guide appeared first on Choice Bank.

Less Competition

Many people wait until warmer months to come around to get the ball rolling on house hunting and staging. This means you are going to have a lot of competition. If you can tough out the cold, you may find yourself putting up less of a fight for the home of your dreams.

Motivation

People who buy and sell in the winter are not typically looking to just get an idea — they know what they want. If people are taking the time to stage and hunt during this season, it usually means they are serious and want to close before the competition rolls around in the spring.

Get Loans Fast

With fewer people applying for loans because winter is a less competitive season, lenders are going to be less busy. This is good news for those that do decide to buy and sell; you will get the undivided attention and service you deserve.

Show Off Cozy Qualities

Take advantage of the snow on the ground if you are selling—show buyers distinct aspects of your home that may pose more appealing during the winter like a fire pit, fireplace, insulated attic—anything to grab their attention.

Buying and selling your home doesn’t have to be long and arduous, check buying and selling your home off your list of things to do this winter!

LPL Tracking #1-05199798

Content provider: ReminderMedia

The post Why to Buy and Sell a Home in the Winter appeared first on Choice Bank.