Why Is Homeowners Insurance Important?

Costs
Homeowners insurance costs differ according to home size and location.

Will You Get a Mortgage if You Have Credit Problems?
Paying for homeowners insurance makes some people cringe. Shelling out money month after month for an intangible product can feel like pouring water into the sand. Insured owners living in prime locations such as the Berkeley Hills pay so that they can rebuild in case disaster strikes. Homeowners insurance could be the best thing you’ll buy–and hope you’ll never have to use.

Lenders and Insurance
Lenders require that homeowners obtain adequate insurance before funding a loan. Because banks and other lending institutions typically put up 80 per cent of a home’s value in cash, they insist that those receiving the money insure the investment. Insurance experts inspect properties for general upkeep before issuing policies and also help determine the level of coverage needed.

Types of Insurance
Basic homeowners policies cover damage to the house caused by fire, vandalism, hurricane, lightning, or other specifically covered events. Homeowners policies also cover loss or damage of personal property due to theft or other covered events. Expensive collections of jewellery or furs might need additional rider policy coverage. Losing possessions can be a shock if you never considered that possibility when opting against homeowners insurance. Policies also cover liability up to certain limits, protecting the insured in case someone injures himself on the property. They also pay for costs if someone sues the homeowner. Some people increase the amount of liability insurance they have with umbrella or extension coverage.

Exclusions
Basic homeowners insurance does not cover damage caused by earthquake and flood. Policies generally deny coverage of damage resulting from chronic and extreme neglect and faulty maintenance. There are limitations on mold-related situations and caveats for specific dog breeds kept on the property.

Alternative Insurance Options
California’s FAIR Plan coverage offers high-risk pool insurance for homeowners living in high-fire areas such as the Southern California foothills. Policies under FAIR, which stands for Fair Access to Insurance Requirements, are expensive and limited in scope. Wrap-around policies allow those with FAIR Plan coverage to supplement the policy with additional privately provided coverage. The state government in California also regulates earthquake policy availability for those who already have homeowners coverage. High deductibles and policy premiums dissuade some owners from purchasing earthquake coverage, betting that their home will never be involved in a significant quake.

Considerations
Some people drop coverage if they are not required to have it. In the event of damage, an uninsured homeowner might lose the building and a place to live. A home is the largest asset most people have, so losing yours could be ruinous. Even if fire or wind damage never occurs, a slip by an uninsured worker on a slippery tile staircase could cost a homeowner thousands for medical care and lost wages.

Let me help make your home buying or sale a success. If you’re ready to begin the buying or selling process, give me a call today!

Stella Bonin
Associate Broker

West USA Realty (Arizona)
Burke Real Estate Consultants (California)
480.797.4884 / 619.250.6214
stella.bonin@yahoo.com

Follow me on Twitter: @stellabonin1

Join my Facebook International Real Estate Group: https://www.facebook.com/groups/irealestate/

https://www.facebook.com/myrealestateservices/

I am licensed in California and Arizona and we have a great team to serve you with members around the world.

California Bureau of Real Estate Lic. # 01222569
Arizona Department of Real Estate Lic. # BR550696000

“Equal Housing Opportunity”

Walkability, Proximity and Home Values

If you’re able to walk instead of drive to the supermarket for a gallon of milk, you and your neighborhoods home values may benefit from the exercise. Homes in neighbourhoods with good walkability are preferred and more valuable by home buyers than similar homes in neighbourhoods where residents must drive to get to amenities.

Proximity to amenities as restaurants, coffee shops, schools, parks, stores, open spaces and libraries will raise the home value. The bigger, more urban the city (think San Diego or Phoenix), the bigger the boost in home prices walkability adds. Neighborhoods in cities with less dense populations like Julian, CA, or Maricopa, AZ, have the smallest boost in home prices from being walkable but still preferred by some home buyers on the decision time choosing a home.

The availability of public transportation also played a role. The higher home values tended to show up in walkable neighborhoods near good public transportation where people could live without an automobile or prefer to limit the use of an automobile.

The closer, the better when we are referring to the neighborhood’s “Walk Score,” which measures how close the homes were to amenities and homes within a quarter mile to one mile of the amenities earned the highest walk scores and had the highest values compared with similar homes with lower walk scores.

The walking also has important social benefits and having people walking around signals that an area is safe, friendly, convenient, lively, and interesting attracting buyers to that neighborhood.

Thinking of buying or selling? I’m happy to help!

I am never too busy for your referrals.

Stella Bonin
Associate Broker

West USA Realty (Arizona)
Burke Real Estate Consultants (California)
480.797.4884 / 619.250.6214
stella.bonin@yahoo.com

Follow me on Twitter: @stellabonin1

Join my Facebook International Real Estate Group: https://www.facebook.com/groups/irealestate/

https://www.facebook.com/myrealestateservices/

I am licensed in California and Arizona and we have a great team to serve you with members around the world.

California Bureau of Real Estate Lic. # 01222569
Arizona Department of Real Estate Lic. # BR550696000

“Equal Housing Opportunity”