Category: News and Information

Home Insurance Policies 101

Posted on by John Conde

You’ve decided to make what is probably going to be the biggest purchase of your life – you bought a home – and that’s exciting. However, before you set your heart on the number of bedrooms you want, neighborhood, backyard pool, etc., you should look into the cost of home insurance and determine what you can reasonably afford. Becoming a homeowner won’t be as fun if you end up with a house that is going to cost you astronomically in the insurance department. Since homeowner’s insurance isn’t something you can just skip over, it’s important to analyze safety features, local weather conditions, and crime rate in the community you’re considering moving into. Home insurance policies vary depending on different factors, and taking a closer look into what each of them encompasses will ensure you’re sufficiently covered.

HO-1

This is the most simple home insurance policy on the market. It covers direct damage to the home only caused by specific hazards that include fire, lightning, hail or windstorm, explosions, riots, aircraft, other vehicles, smoke, vandalism, theft, and volcanic eruption. You have to be careful with this policy as it does not include personal liability coverage.

HO-2

An HO-2 defends your home and its surrounding structures, like a detached garage or fence, and includes personal liability. This policy steps it up a bit and covers everything mentioned in the HO-1 as well as falling objects, plumbing system floods, power surges, frozen pipes, broken heater, air conditioner, water heater or fire sprinkler and destruction caused by the weight of sleet, snow or ice.

HO-3

This is the insurance policy many homeowners decide to go with because of the level of coverage and comfort it provides. You will be able to work with your insurance agent to come up with a list of exclusions you really feel you won’t need coverage for and include them in the contract, meaning you will be protected from loss or damage as a result of anything else. Some of these exclusions may include nuclear threats, earthquakes, deterioration, neglect, and war.

HO-4

The HO-4 plan is designed to specifically give coverage to renters. It will provide for the loss of any of the tenant’s personal belongings due to the same perils listed in an HO-2 policy and personal liability of the renter, but does not cover any property damage.

HO-5

Similar to the HO-3 plan, the HO-5 is the most inclusive policy a homeowner can obtain. The biggest difference is that the insured’s personal belongings within the home are fully covered unless something has been pointedly excluded.

HO-6

This will meet the needs of a condo owner who would like to insure their belongings and anything not considered to be covered by the property owner’s policy for common areas.

HO-8

An older home can be more difficult to insure, but that’s what an HO-8 policy is for. If the estimated cost to rebuild your home is more than its current market value this plan will allow you to make sure you are getting some kind of replacement coverage under the damages listed. Depending on the amendments you make, the insurance company may only payout to replace your home using modern materials instead of paying more for the antique qualities it once had.

Going over all your home insurance options and discount possibilities before jumping into a huge investment will give you an advantage and save you in the long run. There may be things in a policy you simply don’t need or depending on the climate you live in, there may be things that are necessary to add.

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Four-point inspection vs. Full-home inspection

Posted on by Jenny Zamora

Different Home Inspections From A Realtor’s Perspective…

Every homeowners insurance company requires either a four-point inspection or a full-home inspection before issuing an insurance policy to the new homeowner. These inspections are designed to protect both the insurance company as well as the buyer by exposing any existing issues or damages prior to the sale of the property.

The four- point inspection focuses on four main areas of interest in a house

  *  HVAC (Heating, Ventilation and Air Conditioning)

  *  Electrical wiring and panels

  *  Plumbing connections and fixtures

  *  Roof

The reason why homeowner insurance companies require a 4 point inspection is to make sure that major components of the house are in good condition before they agree to insure it. This is especially true for older homes [25 yrs or more] since the chances of an older home having problems is much greater than a newer home. It’s for this reason that insurance companies have become increasingly reluctant to issue homeowner insurance policies. A good example of this would be a roof nearing the end of its life expectancy. Even though the roof isn’t leaking, you know just by how old it is that it won’t be long before it starts having problems.

 In this situation, the Insurance company would probably require the roof to be replaced before issuing the new homeowner a policy so that they can reduce their risk of liability that comes with a worn out roof. The same holds true for the electrical, plumbing and HVAC systems. If either of these items are in bad shape or poorly installed, then they could easily cause a fire or severe water damage to the house putting the insurance company at risk for having to pay for the repairs to be made to make it livable again.

The full-home inspection is a more complete inspection

A Typical Full-Home inspection includes:

*  Roofing- sheathing, shingles, flashing, vents, , trusses, etc.

*  Exterior/Interior – roof coverings, soffit, fascia, finishes, etc

*  Heating and Air Conditioning – ducts, temperatures, filters,

*  Electrical System – safety, GFI, wiring, breakers, receptacles, etc

*  Plumbing – supply, fixtures, water leaks, waste, etc

*  Appliances – Hot water heater, dishwasher, refrigerator, etc,

As you can see from this list, a full-home inspection is a much more in-depth process than the four-point. The inspector basically goes through the entire house with a fined tooth comb and reports anything that either may have a problem or which may cause a potential problem in the near future.  A good example of this is if there is evidence of past water damage, the inspector must determine if the proper repairs have been made or if the problem still exists.

The inspector should also check for potential safety issues like a  loose handrail, an electrical outlet installed to close to a sink, defective appliances, etc. This type of an inspection can sometimes take up to four hours or more to complete because of the amount of work that’s involved. Some defects are an easy fix, and once discovered, can be fixed before purchasing the home. However, when major issues are found, the buyer will usually try to get the seller to make the repairs prior to the closing.

After a home inspection in Florida, a written report is provided to the home buyer, lender, and seller. Minor or cosmetic defects might be overlooked by all.

It’s my duty as an Orlando realtor  to look out for my client’s best interest which is why I always try to encourage my buyers to order the full inspection as opposed to a four-point inspection. Sure, a full-inspection will cost more money but it could potentially save you thousands of dollars in repairs by detecting any problems with the house before signing a purchase contract. https://orlandorealtyconsultants.com/


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Who decides the value of a Short Sale?

Posted on by Jenny Zamora

Orlando Realtor –  Video transcript who decides the value of a short sale?

Hello, John Conde here with https://orlandorealtyconsultants.com/ , and today we’re here to talk about short sales

John Conde: OK first question?… The woman with the Orange hair

Audience: Who decides the value of a Short Sale?

John Conde: OK…great question and a crucial part of the short sale process.
The valuation of a short sale, as determined by the short sale lender, is probably the single most important factor of the transaction.    ….The way it works is; after we submit an offer to the bank, the bank will then order a BPO.. AKA [Brokers price opinion] on the property.

This person will usually be a local realtor that will go out to the property, and after doing their research on recent sales in the neighborhood, will give the lender their opinion of what the property is worth.

Whatever, the BPO comes in at will be the negotiating point between the lender and potential buyer.

John Conde: Next question…

Audience: Does it matter if the house needs repairs?

John Conde: Yes, it does matter and that is something that they are supposed to take into consideration when giving their estimation of value.

So they do the BPO…Now At this point there are 3 things that can happen that will dictate what follows.

1… The BPO comes in at a fair number that everyone is happy with and we proceed to closing.
2… The BPO comes in too low and the bank insists on another one being done… It happens sometimes.
3…The BPO comes in so ridiculously high that the buyer threatens to walk.
Now when this happens, you will find out what your short sale agent is really made of….The agent can choose to do one of 2 things.

#1- Just accept what the bank says, let the deal fall apart and pray that a new buyer comes along
or
B- Do whatever it takes to prove to the bank, that the BPO agent got it wrong.
Now at our company, We do this by preparing an in depth report of our own… called a CMA which is also known as a comparative market analysis]. This report contains even more information than the BPO agent provided them with.

What a CMA basically comes down to is a list of Active, Pending and Sold properties in the area… and  the whole purpose behind this is to get the lender to order another BPO or if we’re lucky they’ll just use ours.

I hope this was helpful in answering your questions.  Remember…we’re here to help…it’s up to you to take the next step…Thanks for watching

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A Guide to Safely Storing Valuable Items

Posted on by Jenny Zamora

Storage lockers

If you own items which are valuable, both in monetary terms and personal value, then it’s vital that you keep them stored safely, securely and to keep them in optimum condition. The rules for storing valuables depend on each individual item, so here are some general guidelines for different things that you might want to consider.

Documents

Important documents can easily get damaged or worn if they aren’t stored correctly, so it pays to spend a little time and effort preserving them to ensure they stay in good condition. Filing cabinets and display cases make ideal storage places for documents, but make sure you keep the documents flat or preferably separated by dividers, so that they don’t get bent or torn. You may want to consider storing valuable documents away from your home in specialist storage services that deal with storing important goods off-site. These types of places usually have climate controlled storage units to prevent deterioration of important documents.

Artwork

Many pieces of artwork are original and collectables, so it’s essential that you pay great attention to how you store these items when not on display. You’ll want to avoid the artwork becoming humid, so avoid storing it in plastic bags. Moisture can also come into contact with artwork if it is stored on concrete flooring. Ideally, artwork should be stored in a dry, well-ventilated environment but away from any direct draft. Any covering should be made with acid-free materials and the surrounding area and storage containers should be checked for dirt, mold or pests.

Musical instruments

Take extra care where you decide to store your musical instruments as heat can play havoc with wooden items, causing it to crack and even rot. Many musical instruments require storage in a climate-controlled unit because of their sensitivity to temperatures. For this reason, you should consider external storage services with experience in handling instruments if you are going to be storing the item/s for a significant period of time.

Photos

Treasured photos may not have much monetary value, but for most people they have a lot of personal importance. Pay attention to where you store all of your photos, as they can end up discoloured and damaged if exposed to heat and humidity. A cool, dry and preferably dark room is the best place to store them. If placed in any kind of book or separated, the materials used should be acid-free. Regular storage boxes may damage your prints so a trip to a photography store may be worth your while.

Special items of clothing

Valued items of clothing, such as expensive suits or a wedding dress, may never be worn again, but you’ll still want to keep them in tip-top condition. Follow instructions on the label for storage advice. Avoid storing in plastic dry cleaning bags, and make sure the area is dry and free from humidity or damp, as this may allow mould to flourish. Acid-free boxes make a good choice for storing wedding dresses, for example. It’s worth periodically checking the clothes to make sure they are in good condition.

Vintage cars

If you’re lucky enough to be the proud owner of a vintage car, then you’ll probably know of the importance of ensuring it is kept in pristine condition. Old cars can be susceptible to damage and rust, so make sure the car does not come into contact with humid or damp surroundings. If you don’t use the car very often, you might want to consider storing it off-site in a special climate-controlled storage unit.

Guarding against theft

Storing items well isn’t just about making sure they are kept in perfect condition, but it also requires consideration to how safe they are from potential theft. Never leave valuable items on show in your house, such as in windows. Install a fireproof and airproof safe to keep valuables in. Make sure you take out adequate insurance to cover the cost of theft to your treasured items. If in doubt, you might well be safer considering the services of external storage units, which are guarded day and night and have state of the art security systems in place.

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Looking For A New Home To Rent? 4 Things You Must Do Before Breaking Your Current Lease

Posted on by Jenny Zamora

Your apartment lease is a binding legal contract between you and your landlord. If you want to change your house before your current lease is over, you will have to break it. However, breaking it is not easy and there may be some penalties involved. Here are some things you must do before you break your lease. It’s a good idea to consult with a real estate professional.

Read Your Contract Carefully
Since it is a binding legal contract, your lease may require careful reading. It is important to read through it carefully so that you know of any stipulations about notifying your landlord in case you want to break the lease. If there is a stipulation, it may also mention the notice period your landlord would require and the penalties for not meeting these requirements.

Know your Local State and City Laws
Find out about your local state and city laws about tenant rights and leases. This is especially important if your lease does not have a release clause. In such cases, the local city and state laws usually apply universally. In some states, the laws require you to give advance notice of at least 30 days while in others, it could be 60 days or even less. Laws are different from one state to another, so it is best if you consult your local laws and find out what you are supposed to do. You could visit the local civic body’s office to get this information or speak to a property agent who can guide you.

Speak to your Landlord
Whether your lease has a release clause or not, you should speak to your landlord and seek advice on your situation. If you are planning to break the lease, it is important to notify your landlord immediately. It is possible that the landlord understands your particular situation and releases you from the lease without levying any penalties. You could also reach a mutual conciliation or agreement regarding your lease. Sometimes, if you can help the landlord sublet the apartment immediately, they will be willing to release you from your lease without levying any penalties.

Check if you can Sublet
Though most landlords do not agree to this, you could check with your landlord if you could sublet the apartment on their behalf till your lease is over. This is a tedious and complicated process, but it allows you to be released from your obligation to your landlord without having to pay any penalties. Sometimes, there is a clause in the lease which allows you to sublet. In such cases, all you have to do is to inform your landlord about your decision to sublet as a courtesy. If, however, there is no mention of such a clause or if the lease prohibits you from subletting, then you will have to take your landlord into confidence and take their written permission before attempting to sublet the apartment.

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