How to Save on Home Insurance

Home insurance is an important aspect in home ownership.  Home owner's insurance isn't just a requirement when you buy a house, but it is also a vital part to keep your home safe. Generally, home owners' insurance covers damage from fire, theft and more.  The insurance can protect you in case someone is injured in your home.  It is a wise investment for your financial safety.

Fortunately, there are some ways you can do to reduce your home owners' insurance rates:

1. Install a Home Security System. Special burglar alarms can prevent losses and therefore make your house less of an insurance risk.  This can reduce your home insurance policy by 15% depending on the provider. Security system that connects directly to police and fire departments are most likely to give you the most discount. Some providers also give discounts for homes with dead-bolt locks.  Dead-bolt locks are very inexpensive compared to the possible insurance savings it can give. 

2. Install Smoke Detectors and Carbon Monoxide Detectors.  Also for fire protection, a sprinkler system, heat detectors, fire escapes and plenty of fire extinguishers are also important.

3. Ask for Policyholder Discounts. If you haven't filed a home insurance claim in the last 10 years, your provider might give you as much as 20% reduction. If you are older and retired, you may also be entitled to a senior discount. 

4. Stop Smoking. Insurers not only look at the condition of the house when they insure it, they also look at the people living in it.  If the home owner is a non-smoker, they pose the least risk as compared to smokers that may cause accidental fires. Insurers often give a discount for non-smoking households. 

5. Bundle your Home Insurance with Other Insurance. You'll get a package discount if you insure your home and car with the same company. 

6. Have a Healthy Credit Rating. A lot of companies are checking your credit and base your policy on what is on the record. Make sure that you credit is in good shape. If you don't have a healthy credit rating, look for insurance companies that do not do credit checks.

Home insurance is a competitive market. If you shop around, you may find great deals depending on your needs. Check consumer guides, insurance agents, companies and online insurance quote services.  If you have any questions, please feel free to contact me.

HARP Extended Until December 2015

HARP or Home Affordable Refinance Program will allow its borrowers with loans backed by Fannie Mae and Freddie Mac to obtain new loans until December 31, 2015. HARP was originally set to expire at the end of 2013. 

More than 2.2 million borrowers have benefited from the program so far. The program allows its borrowers to cut loan payments by refinancing at record low interest rates and at smaller monthly payments even if their homes have lost value. 

To qualify for the upgraded HARP, homeowners must meet the following criteria: (Source: www.realtytimes.com)

- The loan must be backed by Fannie Mae or Freddie Mac
- The mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009. 

- The mortgage cannot have been refinanced under HARP previously unless it is a Fannie Mae loan that was refinanced under HARP from March-May, 2009.

- The current loan-to-value (LTV) ratio must be greater than 80 percent.

- The borrower must be current on their mortgage payments with no late payments in the last six months and no more than one late payment in the last 12 months.

If you have any questions about HARP, please don't hesitate to contact me.