5 Things You Need To Know About Homeowners Insurance

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I am coming up on my homeowners insurance renewal time. Going through Money Magazine I found a great check list of ways to save money on your homeowners insurance. My insurance went up last year 20%, quite a leap. I was glad to have it because it is hard to get insurance in South Florida with all the fears of hurricanes. 

It's so bad many companies have bailed out of the state or are just refusing to write new policies. It was back after Hurricane Andrew when I had State Farm insurance. Just four years after, I missed a premium and they dropped me. They would not take me back even though I had my car insurance with them. Also multiple vehicles and equipment insured with them under my company. They had no loyalty to me even though I had coverage with them for the last 15 years.

Choosing Homeowners Insurance, just like all business decisions, comes down to dollars and cents. So for you and me, we must also do what's right for us. Here are 5 tips to help in your adventure in purchasing your homeowners insurance.

A Homes History Matters.

If your shopping for a new home it may seem unfair but claims associated with the property before you by it can result in your paying more than you would otherwise. Certain locations may be more prone to certain kind of claims.

To get past info on claims ask for a copy of the homes CLUE (Comprehensive Loss Underwriting Exchange) report. this will show all past claims. The homes past history of claims will impact all future insurance rates. If you like the house and purchase it you will be stuck with it's history. This could work in your favor because if the report is negative you could negotiate a lower price for the home.

Small Claims Can Cost You Money.

Go with the highest deductible you can afford and use the savings for all minor repairs. If you file a claim for every broken window or leaky pipe you can drive up your premiums 10 to 15 percent. Insurance agents say even just inquiring about a claim can raise red flags. Increasing you deductible from $500 to $1000 can substantially save you money on your premium. Check with your insurance agent for quotes of insurance with higher deductibles.

A Bad Reputation Can Cost You Higher Premiums.

When insurance agents give you an insurance quote they tap into the Comprehensive Loss Underwriters Exchange to see your relationship with past insurance companies. They want to see your history of past claims. To many claims raises a red flag and may increase your premiums.

You can check your insurance report for errors at Choicetrust.com, it's free if you have been denied coverage, otherwise it costs $19.95.

You May Have to Much Coverage.

You may have an inflation-protection clause in your policy. This automatically increases your premium with inflation rising. This adjustment may be erroneous. Switch it off and keep an eye on your home value yourself. Sometimes the costs of replacement could be less than when you originally purchased the policy. You could of paid a premium for your home, way above the actual replacement value. Check on your actual replacement cost and lower your premium.

Loyalty is Overrated.

Insurance companies that are associated with banks may be using you to make up for losses in the banking part of the company. Remember insurers are still competing for your business. You may be able to get a better deal as a new policy holder than as a existing one. When it's time to renew check Insweb.com and Netquote.com to see if you can get a better deal. Try to bundle it with your car insurance company, you may get a premium cut of 5% to 15%.

Check out Money Magazine online

Here are some Related Stories:

Insurance Coverage Changes If Your Home Is Uninhabited or Rented

Get a CLUE Report if your buying a home

Related articles

• Why Your Homeowner's Insurance Bill Is Still Through The Roof (walletpop.com)
• Top 7 Ways to Save on your Homeowners Insurance (homeownersinsurance.org)
• Know What Your Homeowners Insurance Covers (homeownersinsurance.org)

4 Ways to get FASFA Help

It's that time of year again to fill out your FASFA forms. In my house we have three to do. We have been doing it for a few years now so the initial trauma has subsided. But if you were like me and were confused at first I have listed a few helpful resources to get you started. Good Luck.

1. FAFSA on the Web.

When you’re wrestling with the FAFSA, you can get help from the FAFSA help line courtesy of the U.S. Department of Education. Here is the FAFSA phone number: (800) 433-3243. When you are working online with the application, you can also obtain help by clicking the “Live Help” button.

Before tackling the financial aid form, I’d recommend using the FAFSA on the Web Worksheet, which you can download from the federal student aid website.

2. TuitionCoach.

This free site contains videos, financial aid backgrounders and a FAFSA calculator that can help you determine what your college costs could be. You’ll also find worksheets that can help you complete the FAFSA and the CSS/Financial Aid PROFILE.

3. College Goal Sunday.

This free program, which is sponsored by the YMCA and the Lumina Foundation, offers personal FAFSA advice at weekend events in January and February through the nation.  Some events are starting as early as this week. You can find a calendar of events on the College Goal Sunday website.

4. Student Financial Aid Services.

This is a paid service that helps families prepare and file the FAFSA via the phone and Internet. Depending on the services, the prices range from $79.99 to $99.99.

Here are some additional helpful articles:

4 Misconceptions About College Financial Aid

How To Go To Medical School For Free

Divorced Families Cause Problems For College Students

5 Things You Need to know When Dealing With Debt Settlement Companies

We have had our experiences with debt collectors. The calls all day long and on weekends also. Starting in the morning, sometimes starting at 9:00 A.M. Sunday morning. We have learned to screen our calls but it's still annoying.

Two of our children have had some credit card debts go into default. The debt collectors started to call. There are probably 5 different debt collectors that still call on a regular basis. I talk to them to explain that my kids don't live here anymore and that they are wasting their time. It usually goes well, the caller is business like and we're done but I had one bad call with a nasty debt collector who was insulting. I can see how the tactic works. They make you feel so upset that you give them the rent money to make them quit calling.

With the constant daily calls you become desperate to in trying to pay your debts. That's when you think of trying that debt settlement company. Most debt settlement companies don't succeed in cleaning up your debt. The fees are enormous and the process is long and stressful. Sure there are some that succeed but the success level is low. When dealing with these companies you have to very careful. I have listed a few tips to help you navigate them.

1. Most debt settlement companies charge regardless of whether they ever settle your debts. They usually collect most or all the fee from you long before they have helped to eliminate your debts. You pay the fee whether your debts are settled or not.

2. Debt settlement services don’t provide instant relief. Most debt settlement services require you to deposit a specific amount of money in a bank account each month until you have enough to make a reasonable settlement offer. While you are trying to save, the debt settlement company’s fees are being deducted from your bank account. Saving enough for a settlement can take a year or more. If you have multiple debts, you will save for them one-at-a-time, so the whole process could take several years.

3. Debt settlement services can be very expensive. The charge is often based on a percentage of the total amount of debt that you want help with when you sign up for the service. A typical fee of 15 percent (some are even higher) on four credit card accounts totaling $20,000 would be $3,000. You would pay that amount regardless of how many of the accounts, if any, are actually settled.

4. Claims for success rates can be very misleading. Debt settlement companies advertise big savings but those claims often don’t take into consideration the number of accounts that are never settled or the fees that customers pay. Industry figures show that the majority of debt settlement customers drop out of the programs within the first six months, after they have paid a large portion of the fees but before their debts are settled.

5. Debt settlement programs don’t stop debt collection. Banks and debt collectors don’t have to cooperate with debt settlement companies and they can keep trying to collect the money you owe. While you are saving for a settlement, your debt may increase because of interest and penalties, you may be hounded by collection agents, and you can be sued for the debt.

Debt Settlement companies are everywhere they want your business and may make promises they can't keep. At first, they may stay on top of your program but as time passes either you or the companies lose interest and your case just becomes another account in their computer. There are better ways to settle your accounts which I will cover in another post.


Here are some additional posts about debt:

The Early Warning Signs of Debt

Debt Collectors Are Calling me Everyday - What are my Rights?

Readers Question: A Debt Collector Is Threating me if I Don't Pay | What Should I Do?

Debt Snowball. What is it?

Related articles

• The Five Senses Of Debt Settlement Strategy (totaldebtrelief.net)
• Review: Debt Free for Life (thesimpledollar.com)
• How Debt-Settlement Companies Skirt the New FTC Rules (dailyfinance.com)
• Debt Settlement Companies: The New Rules That May Keep Them Honest (walletpop.com)
• Debt Settlement Companies: How to Tell The Good From The Bad (walletpop.com)

How to Lower Your Car Insurance the 21st Century Way

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Here's the problem, the cost of your car insurance is pretty steep these days. Your a careful driver, you have not gotten in any accidents and you have no tickets. For the insurance companies your the perfect customer. But why do you still have to pay these high insurance bills as if your a bad driver?

To solve this dilemma the car insurances companies have come up with a device to measure just how good a driver you really are. This device installs in your car and measures all the details of your driving. It measures the amount of miles you drive, how fast you go, how many times you use the brakes and the amount of time you drive your car.

GMAC Insurance’s low-mileage discount plan is a version for owners of General Motors cars who have OnStar service. OnStar, which also can alert an operator to call 911 in an emergency or remotely diagnose a car’s mechanical problems, reports actual miles driven for subscribers who sign up for the insurance plan. Discounts are based on how much less than 15,000 miles you drive in a year, though there is no penalty for driving more. For instance, if you drive between 7,501 and 10,000 miles annually, you would save 26% or $208 if the starting premium were $800. GMAC says it has 30,000 low-mileage customers so far.

The Snapshot program from Progressive Insurance has 100,000 customers and is available in 30 states. With Snapshot, you plug in a device about the size of a garage door opener into your car’s diagnostic port (often under the dash below the steering wheel). For 30 days, the gizmo sends data back to Progressive about how many miles you drive at what time of day and attempts to discern if you are an aggressive driver. (Lots of braking translates as aggressive since tailgaters hit their brakes a lot). After 30 days, Progressive will tell you, based on your mileage and driving habits, whether you qualify for a discount of up to 30%.

While other programs don’t measure your speed, Allstate’s DriveWise program doesn’t shy away from that. Now in effect in Illinois, the plan will be rolled out to other states during this year. The device installed for DriveWise will note any time you exceed 80 mph. In addition to your mileage and episodes of hard braking and aggressive acceleration, Allstate says such speeding could affect your rating and your premium.


Are you thinking about doing this than consider the issues:

• Will you cut back your mileage during this period. Are you considering a road trip.
• Will you really show up as a safe driver? You're going to reveal what kind of driver you really are. We all think we are great drivers. Do you change lanes a lot. Do you speed up quickly? All this will be revealed. 
• Understand what discounts will arise with this examination. Also check out the penalties if your considered a bad driver.
• Are you worried about your privacy? these devices could be used with your GPS revealing where your are going to and how long your there. 

This is definitely a win for people who drive very little or are good drivers. But if your a bad driver with a lot of claims are you going to add to the damage by attaching this device to your car revealing how bad a driver you really are?

Tax Tips for the Unemployed

If it's not enough that you have been unemployed for so long, now you have tax season to make you feel worse.  We all could use a little help sorting out the maze of forms and deductions that need to be kept up on to do our taxes correctly. Courtesy of HRBlock.com they have listed 5 helpful tips to get you started.

1. Unemployment Benefits

• Expiration alert: all unemployment benefits in 2010 are taxable. In 2009, the first $2,400 in unemployment benefits were tax free — but this benefit has since expired.
• When claiming your unemployment benefits, you can choose to have 10 percent of your unemployment payment withheld to help pay your federal taxes. You can also withhold your state income taxes.
• Although withholding is voluntary, it is beneficial because it eliminates the need to make estimated tax payments.
• Start on tax withholding unemployment payments by filing Form W-4V, Voluntary Withholding Request, with the payer of the unemployment.

2. Job Search Expenses

• Here's some good news: if you are looking for a new job, you may qualify for a number of tax deductions.
• These deductions include travel expenses, cost of printing, mailing, and creating a resume, job placement agency expenses, and more.
• Remember that expenses for a job search in your same line of work are deductible, but you will have to clear several hurdles to reap the benefits.
• If you itemize, job hunting expenses in your same line of work are considered miscellaneous itemized deductions.
• Your total miscellaneous deductions must be greater than 2 percent of your adjusted gross income, and only the amount that exceeds the 2 percent “floor” is deductible.

3. Moving Expenses

• More good news: if you moved for a new job, the expenses associated with that move are deductible, even if you do not itemize.
• To deduct moving expenses, the new job must be at least 50 miles farther from your old home than the old job was. For example, if you commute 20 miles to your old job, your new job must be at least 70 miles from your previous home.
• The deductible amount is the unreimbursed cost of moving you and your belongings to the new location.
• You must stay at the new job at least 39 weeks to qualify for this deduction.

4. Medical Deduction

• If you aren’t working and are paying COBRA premiums, you should track these and other out of pocket medical expenses as they may qualify for a medical expense deduction.
• Unreimbursed medical expenses, which include COBRA premiums, prescription drug costs, dental expenses, and more totaling more than 7.5 percent of your adjusted gross income, are deductible.
• This is one instance where married couples may benefit by filing separately. If one isn't working and has low income/big medical bills, married filing separately may be a good way to go.

5. Health Insurance

• If you are under 27 years old and do not have access to employer-provided insurance, you may be added to your parents' health insurance policies starting in 2011. This benefit is not taxable.

I hope these tips help you get more organized in filing your tax return.



Related Posts:

5 Tax Benefits For Students

Follow the IRS on YouTube and Twitter

The I.R.S. has an App to Track Yor Refund

File Your Tax Return For Free - Here's Where to do it

The New Tax Law: Gifts For All

Related articles

• Should I Itemize Deductions on My Taxes? (turbotax.intuit.com)
• Overlooked Tax Credits, Deductions (abcnews.go.com)
• Unemployed? We've got some tax tips for you (turbotax.intuit.com)
• Unemployed Doesn't Mean Untaxed (turbotax.intuit.com)

Tips To Help You Talk Money To Your Sweetheart

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This past Valentines Day just brought out the best side of me. When my wife and I talk about money these days it's good to know it won't turn into a knock down drag out fight like it used to. We have learned to talk calmly about money and practically know how the other will respond in any situation..

During are early years of marriage money was very tight. We were combining families and lives. It wasn't easy because most of our fights were about money. We both came from different experiences with money. Our families handled money differently. We had to get used to each other and also our spending-saving habits.

I found that the number one thing to solving money issues was communication. We had to check our baggage at the door and talk openly about the reasons for our differences. We had to be careful not to be hurtful and try to resolve little issues before they festered into big ones. Having those smaller open discussions headed off the potentially bigger ones down the line.

With so many differences we had to find common ground. We tried not to dwell on our past experiences but we set goals and figured ways to arrive at them. It wasn't easy but we kept trying. There was some times when the wheels came off the wagon. But with time and patience we persisted.

We found out early that if we didn't do the math and have a game plan but just relied on our talks we would fail. Putting your goals in writing, setting up a spending plan and tracking actual household income and expenses was imperative to success.

When discussing all this financial stuff we had to methodical and not emotional think about what we we're doing and planning to do. We came together and didn't have a chance to stay together unless we were methodical about our plans.

Sometimes you have to lose a battle, to win a war. Each of us had to give up entrenched ideas and beliefs for the common good. This is very hard to do. Giving up habits that you know are good, but for the greater goals of the marriage, we had to agree to disagree.

Lastly we sought out professional help. Not a psychiatrist, because it feels that way now and then, but a financial expert. They will show you the things you overlooked and things to do, to make your plans happen.

Marriage poses many challenges. Sharing money decisions, in a caring way, will only strengthen your marriage. Not working together may cause your marriage to dissolve. Giving your trust to another is a big step. You trust your spouse with your heart, why not your money?

Reader, what situations cause money fights in your home? Or are you past that ?

Related articles

• A man's perspective on 'filling up your sweetheart's emotional tank' (knoxnews.com)
• Are You Talking with Your Family About Money? (moneyning.com)