Tag Archives: Investment

Protect Your Investment Property With Buy to Let Home Insurance

Article by Mike Connery

Buy to let home insurance is just as important as your individual house insurance policy. Even though some tenants are diligent in reporting issues, landlords understand that some tenants do not watch as diligently for possible issues as you would do, which means your rental unit has much more exposure to hazards than the typical home. Of course, insurance companies understand this too. That’s why buy to let home insurance often will cost you more than a average homeowner’s policy.The fact that the landlord doesn’t reside on the premises and rents the house or apartments also means the home is much more likely to be vacant than the normal homeowner’s dwelling. Although you may have excellent tenants whom stay for a long time, at some point in time they’ll move out and regardless of how well they treated the home, there’s always work you need to do before the next tenant can move in.Needless to say, the loss of a renter means the home will probably be empty until such time as you complete the work and locate the next good renter. Again, this exposes the home to all the more dangers from vandals to water damage if a pipe would break with no one near to discover the trouble for a while.Buy to let home insurance companies will not pay a claim if the property has been empty for as few as 30 days in some states or slightly longer in others. It all is determined by the carrier and your state laws. In order to be positive that you have full coverage, get buy to let home insurance policies that provide a rider for these occasions the house is empty. It extends coverage while you are doing repairs, find just the perfect tenant, and is well worth the extra premium.The alternative to a rider for your buy to let home insurance would be to switch to a builder’s risk policy when you’re refurbishing the property. Nonetheless, these can be expensive and often quite hard to get. Talk about this issue with your insurance agent so you aren’t stuck at the last minute attempting to find insurance or worse yet, file a claim and discover you had no coverage because the dwelling was empty.Make sure that you really have enough coverage on your policy. Alike in many ways to homeowner’s insurance, insurance providers prorate all claims in the event you don’t insure to 80 % value of the home. While you might have only paid ,000 for the house 20 years ago, these days it could be worth considerably more if you sold it, particularly if you have made improvements in the property.Presume you have a 0,000 property that you just only insure for ,000. If you have roof damage from a storm estimated at ,000 for repair, initially the buy to let home insurance company estimates the amount they pay. Because you only insured for half the valuation of the house, they only give you half the expense of damage or ,500. The company then subtracts your deductible from that price. In the end, you’d only receive 0 if you had a ,000 deductible. Had you insured the property for ,000, 80 % of the value, you’d receive ,000 less the deductible. There’s really a spread between the two amounts.Make certain you’ve adequate loss of rent coverage on your buy to let home insurance. In some instances, the loss of rent can make a difference in whether or not you’ll make that next payment on the home on time or struggle and pay penalties to your lender.Some buy to let home insurance policies have liability on the policy but you have got to add it to others as a rider if it’s even offered. Many personal home owner insurance policies make available a rider that supplies liability coverage for a rental or other property. If you have several properties, an umbrella liability policy may be the very best bargain for your requirements. Discuss this together with your agent for the very best solution.

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What use does life insurance offer for singles? Not just coverage but investment too

Article by Mark Manderson

Humans are as loath to ponder life insurance as to ponder their own mortal frailty; and young, unmarried humans are notorious for scarcely ever contemplating anything, so it’s no wonder that life insurance for singles doesn’t attract much attention. However, an early age is an advantageous time to commence a life insurance financial plan.

Singles’ financial obligations

Singles may not have any dependants for whom to care, but in this day of rampant debt, many yet have financial obligations-commonly credit card debt or outstanding student loans. Life insurance can be purchased to satisfy these obligations in the event that the debtor does not live to amortize them in the old-fashioned way.

Credit life insurance (not the same as credit protection insurance) is a convenient way to handle such an affair: The life insurance policy covers a particular debt, with the creditor as the policy’s beneficiary. As the policy owner works off the debt, the credit life insurance policy automatically decreases its death benefit and premium to suit.

Credit life insurance carries an administration cost, however, which oftentimes makes it more expensive than a simple non-auto-adjusting term life insurance policy. Using ordinary term life insurance, the creditor should still be the beneficiary, but the premium and death benefit do not change, even as the debt goes down.

Another reason for a life insurance death benefit is the possibility (or certainty) of final expenses, which may include funeral costs and final medical expenses. K to K is an ordinary death benefit for final expenses.

Admittedly, the financial needs discussed so far might be considered nothing more than illusory in some minds; when a young, single individual expires, he usually has no estate to speak of, so he is free of his obligations, and his creditors go unpaid. It is not an honourable way to handle one’s finances, but one must recognize that it is how many blackguards operate.

Using life insurance as an investment tool

The two types of life insurance policy mentioned thus far terminate after a certain duration, a period stipulated in the life insurance contract. However, a number of life insurance types fall under the category “permanent life insurance,” that is, insurance which continues so long as the insured lives and the necessary payments are made. Permanent life insurance comprehends an account called “cash value,” which accumulates interest tax-free.

Cash value, therefore, can be a functional investment vehicle. Beginning this investment early in life (i.e. even when single) is beneficial for two reasons: First is that starting early allows a longer timeline for your investment to grow. Second is that starting young is the surest way to lock in your policy under an affordable rate class and therefore have the cheapest life insurance rates possible.

What determines the rate of interest which cash value experiences? It depends on the variety of permanent insurance. The rate may be constant and guaranteed (traditional whole life); it may be declared periodically by the insurer (current assumption); it may be tied to a particular market index (indexed universal); or it may be invested where the policyholder chooses (variable universal).

Of the two chief divisions of permanent life insurance, universal life insurance is the better choice for making an investment because, rather than paying a fixed premium, the policyholder is free to pay the amount he chooses (subject to certain federal restrictions). Not only that, the cost of universal life insurance is lower than that of whole life insurance.

Singles out there, think about starting a life insurance policy now. Use an online life insurance quote engine to see what kind of rates you can expect (here’s one at www.wholesaleinsurance.net).

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Landlord Tips to Lower the Cost of Investment Property Insurance

Article by Alan Kappauf

Investment properties can be a good source of income even in a less-than-ideal economy. A great way to maximize your profit is to keep the cost of owning the property down. One area to scrutinize is your property insurance policy. Since insurance premiums are usually higher on a rental home, it makes sense to try for the lowest rate possible and still get the coverage you need. Here are some strategies for saving money on investment property insurance.

One of the best ways to save money on insurance is to shop around for the best coverage at the lowest price. Try to get at least three quotes from different insurance companies, and if possible, try to speak with an agent personally, rather than just looking at figures on the internet. Some companies specialize in working with rental properties, so you may want to compare their rates with those of standard insurance companies.

Another way to lower insurance costs is to look for a higher deductible. Going from a 0 to ,000 deductible can make quite a difference in monthly premiums. So, you’ll want to get the highest deductible that you can safely afford.

Also, be sure to inquire about any discounts the company offers. For example, insurers will usually lower premiums on houses with safety features such as smoke and carbon monoxide detectors, deadbolt locks, sprinklers and alarm systems. Certain types of roofing materials may qualify for discounts if they can withstand hail or wind damage. There may also be discounts for certain types of tenants. For example, people that are home more often, such as retirees or stay-at-home moms, may be a deterrent to burglars. They are also more likely to stop or report a fire than tenants who are often away from home. Also, be sure to check for multiple policy discounts if you own more than one property. If you haven’t filed a claim in a while, check to see if the company will lower your premiums for this reason.

Additionally, check to make sure that you are only insuring your property’s value and not the value of the actual land it is built on. For example, land is unlikely to be stolen or damaged, but your property might be. Also, make sure that you understand what you are being charged for. A policy that covers the actual cash value will pay only the cost of rebuilding at the current market value, while a policy that covers replacement costs will pay for the full cost of rebuilding the property.

Credit scores may also determine your cost, since some insurance companies will give lower rates for higher credit scores. Therefore, be sure to maintain good credit, and keep track of your credit score. Another thing to remember is that as a property owner, you do not need to insure your tenants’ personal belongings. Check to see if this option can be excluded from your policy and recommend that tenants purchase their own renter’s insurance.

The bottom line is that by looking at all of your insurance options, you may be able to save money in the long run and maximize your profits. Good luck!

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Visit free-rental-property-investing-info.com for free landlord forms, tools, and no-hype educational info focusing solely on investment property. Browse topics like buying a property, landlord insurance, landlord tenant laws, and much more.

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Benefits Of Investment Property Insurance

Article by Adam Masterson

1. Risk involving property

People should realize just how risky buying their first property is. There are a few questions that you need to find answers before spending your money on a new property. The worst scenario is when you buy a new property with borrowed money and short time after the transaction the prices fall. Interest rates and a less valuable property will both be yours.

2. Obtaining quality insurance

Everybody who owns a buisness should obtain investment property insurance. The insurance will not protect you against variations of prices but will help you to get the money back in case of unusual accidents. Each property has its own risk level and the insurance fee depends mostly on this criteria. So, before deciding what property to buy, you should check yourself if there are any risk involved.

From the point of view of the insurance company there are four general criteria for deciding whether to insure events or not. 1. there must be a larger number of similar objects so the financial outcome of insuring the pool of exposures is predictable. Therefore they can calculate a “fair” premium. 2. the losses have to be accidental and unintentional from the point of view of the insured. 3. the losses must be measurable, identifiable in location, time, and be definite. They also want the losses to cause economic hardship. That is, so the insured has an incentive to protect and preserve the property to minimize the probabilty that the losses occur. 4. the loss potential to the insurer must be non-catastropic. It cannot put the insurance company in financial jeopardy.

3. Insurance protection

The most important risk came from natural disasters but some of them can be predicted. Usually insurance will protect you from the most common accidents but some companies require you to pay an extra fee for each type of disaster that can occur. Before buying the investment property insurance, you should check if there were hurricanes, earthquakes or inundations in the area in the last 30-50 years.

4. Kinds of insurance

There aee many kinds of insurance. The adjusted risk discount rate technique is combined by two kinds of rates. The risk-free rate covers just a few of unpredicted event and is very cheaper and premium rate covers lot of disasters or event human mistakes, but it is a little expensive. It is easy to avoid paying for things that wont happen when using the two rates togther.

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