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Homeowners Insurance

Performance Property Real Estate Question

How Insurance Deserts Will Affect Home Prices

Q: My cousin in California is having trouble getting homeowners insurance I guess because of wildfires out there. Do you think that will affect the real estate market out there? Janet, Southern Shores, North Carolina A: Insurers have experienced record losses recently due to catastrophic damage from natural disasters like wildfires and storms. Climate change has made risk assessment more difficult for insurance companies which results in much higher insurance premiums and limits insurance choices for homeowners. When insurers can’t accurately quantify a risk, they charge a higher premium to create a financial cushion. Insurance premiums have outpaced inflation in recent years due in large measure because reinsurers (the insurers who insure insurance companies) have raised their insurance premiums. In […]

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Performance Property Real Estate Question

Homeowners Insurance Post Pandemic-What’s Different

Q: Prices of lots of things have gone up since the pandemic, should I expect to pay more for my homeowner’s insurance also? Eddie, Holmdel, NJ A: Insurers worldwide are constantly recalibrating the risk they insure for particularly now in the wake of the COVID-19 pandemic, which has changed many things in the world of insurance.  The pandemic has reduced the risk of burglaries from happening because people have been home more often. The constant presence of residents also makes them more likely to immediately notice and address any structural problems on their property, which lowers the likelihood of filing claims.  At the same time, one unexpected consequence of the pandemic was the rise in sewer backups–sewer backup coverage is […]

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Real Estate Tip

Gerald’s Real Estate Tip of the – Week of 2/26/19

Find out if your homeowners insurance uses “actual cash value” method rather than “cost to replace” method to calculate a claim. If so, depreciation will be deducted from your settlement amount, resulting in lower compensation to you in the event of a claim.

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Real Estate Tip

Gerald’s Real Estate Tip of the – Week of 6/20/17

Find out if your homeowners insurance uses “actual cash value” method rather than “cost to replace” method to calculate a claim. If so, depreciation will be deducted from your settlement amount, resulting in lower compensation to you in the event of a claim.

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Real Estate Tip

Gerald’s Real Estate Tip of the – Week of 12/6/16

If you can afford to raise your deductible, you could save 25% or more on your homeowner’s insurance premium.

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Banks Preying on Homeowners Again

The crackdown by US regulators on banks charging exhorbitant ‘forced placed’ insurance fees is long overdue.  US lenders have already been exposed for forging borrower signatures.  ‘Forced placed’ insurance, which is typically more than double the cost of regular homeowner’s insurance has been a lucrative scam for banks in the wake of the housing crisis.  In some cases, banks have charged more than 10 times the regular voluntary home insurance rates–and yes, banks often receive commissions for their unholy alliance with insurers. Obviously banks once again have been preying on homeowners by colluding with insurers to artificially inflate these ‘forced placed’ insurance premiums.  Homeowners often don’t even know they’ve been had until their bill doubles, triples or quadruples.  I’ve personally […]

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