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More Newsletter Information
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About FHA Homeownership
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First Time Home Buyers - |
Homeowner's
Insurance
Get the basics on homeowner's insurance and
the importance of doing a home inventory.
Before finalizing a mortgage loan, lenders require homebuyers to
purchase hazard insurance to pay the lender in the event the house is
damaged or destroyed by fire, smoke, wind, hail, vandalism or another
similar act. Virtually all homeowners buy comprehensive homeowner's
insurance, not just the minimum required by the lender. In addition to
covering the house, homeowner's insurance protects furnishings and other
personal items, as well as any other structures on the property, such as
a pool. Homeowner's insurance also covers some types of personal
liability -- if the mail carrier trips over your kid's skateboard, your
policy will pay for his medical expenses and other losses.
You will want to purchase additional insurance if your house is in a
high-risk area for fire, floods, earthquakes or other natural disasters
or you have expensive art or business equipment at home. For more
information on homeowner's insurance, see
http://www.insure.com/home. This informative website provides a wealth
of consumer information, from choosing a basic policy to purchasing
earthquake or flood insurance to filing a claim. You can also check the
websites of individual companies such as State Farm or Allstate.
| Making a Home
Inventory |
| If your home is struck by a burglary,
fire, flood, earthquake, or another natural disaster,
an up-to-date home inventory will make it easier to
deal with police and your insurance company. Without
one, you'll have to create a list of all your property
from memory.
Fortunately, making a home inventory isn't an
onerous task. And doing so not only prepares you for
possible losses -- it can help you prevent the loss
itself. As you inventory your possessions, you'll
become more aware of their vulnerability, and you can
take steps to secure them.
Start by walking through your house with a pad of
paper and a still or video camera. Take pictures and
jot down a list of any items worth more than $50 or
so. Go room by room, and don't forget the garage,
attic and basement. Be sure to include jewelry,
clothing, stamp or coin collections, CD and record
collections, silver, tools and electronic equipment.
Then take a little time to formalize your
inventory. Insurance companies often supply inventory
forms. Making and updating an inventory can be even
easier if you own a computer; Nolo's
Personal RecordKeeper software includes a
complete home inventory section.
Whatever your method, record key information about
each item:
 | Complete description, including whether or not
it's marked with an ID number such as your
driver's license number. (You can buy an electric
engraving pen for $20 or so at a hardware store.)
Record the make, model and serial number, if any;
this will help you justify the estimated value of
the item to your insurance company. The ID and
serial numbers help police identify stolen goods. |
| Location. This will help you identify what
you've lost if only one area, such as the garage,
is hit. |
| Location of ownership documents, receipts,
owner's manuals and repair bills. |
| Purchase price, current value and replacement
cost. For most items, your best estimate will do.
For antiques or other difficult-to-price items,
such as a stamp collection, you may need a
professional appraisal. |
Keep your written and photographic inventory in a
safe place, such as a fire-resistant file cabinet, the
freezer or a safe deposit box. Keep at least one copy
away from home. If you take a long vacation, give a
copy to a friend or neighbor; that way, if your house
is broken into while you're gone, they can determine
what's missing and report it to the police.
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Look Again
 Painting
– done. Minor repairs – done. Clutter control – complete.
You may think your house is market ready, but before you let in
that first potential buyer, there are probably some key areas
that still need your attention. These may be parts of the house
you’ve overlooked, but buyers and their agents will surely
want to see.
Garage or Shed – Storage is a concern for
many buyers, so they will want to see how much space you have
for keeping things like sports equipment, tools, lawn mowers,
and other large items out of the way. To give a garage or shed
its best appearance, get rid of items you no longer want or need
through a garage sale or donation. Next, invest in storage
shelves that will make the space more organized. Finally, give
it a good sweeping.
Attic – The best thing you can do for an
attic is to make it look larger. Accomplish this by eliminating
unwanted items. In addition, boxing and organizing like items
can make the space look better.
Closets – Room for coats, linens, clothes and
more will be a concern for potential buyers. Inspect each closet
and make sure it is as clutter free and as organized as
possible. This a good time to clear out any unwanted clothes,
towels, luggage or other items.
Yard – Finally, turn your attention outside.
A well-kept yard, walkway, patio or deck will be much more
appealing to a buyer. Remove all underbrush and give your grass
and hedges a good trimming. In addition, consider power-washing
a deck or patio to give it a new, fresh look.
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Watch for more newsletter information next month.
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