2010 September

Where To Find Second Property Insurance

September 14, 2010 By George Leave a Comment

When it comes to taking out second property insurance the first thing you have to remember is that it varies a great deal from the type of insurance that you will have taken out to cover your home. It will also depend on what you intend to do with the property you are buying. For example if you are going to turn the property into a holiday home let then you will need more extensive cover than had you bought the property for the intentions of it just being your own holiday home.

Second property insurance includes many different components, some of which you will already know about while others are more complex. The standards of any insurance policy should be included and the most obvious of these are of course the contents and buildings, however if you have such as a swimming pool then this will have to be taken into consideration and should be covered. If you need second property insurance for a holiday let then this is even more extensive, along with the usual components of the insurance you will also need to think about taking insurance that covers you for such as liability to tenants and any staff that you hire to run the holiday home.

One big problem for those who know very little about insurance is the fact that within policies there can be many exclusions, which means if you haven’t noticed them due to not reading the small print then when you come to make a claim it could mean you are turned down. Very often insurers will state in the small print that you have to meet certain requirements when the property is left empty, most holiday homes will be empty for periods during the winter months and this is when factors have to be taken into consideration, which include such things as the risk of flood due to burst pipes.

In order to get the best second property insurance deal then it is essential that you go with a specialist broker, you will be putting a lot of money into the venture and of course want the best possible chance of success. A broker can provide you with the essential information that is needed when it comes to your needs and can also save you a lot of time and money by shopping around for you to make sure you get the best possible deal for your second property insurance. Along with this you will be able to ask any questions regarding anything you are not sure about concerning your second property insurance.

Filed Under: Articles Tagged With: Best Possible Chance, Exclusions, Swimming Pool

How to Protect Your Student Buy To Let Investment

September 14, 2010 By George Leave a Comment

The buy-to-let market has undergone something of a renaissance in recent years (because first-time-buyers now have to find significant deposits in order to get on the housing ladder). However, over the longer term, letting to students in university towns has often been considered a safe option for landlords. Evidence from the Halifax also suggests that letting in university towns is very profitable as house price rises in these towns has out performed those in other areas.

Some landlords might react adversely, based on the fear that student tenants can be irresponsible and thus unreliable as tenants, but in practice this need not be the case, particularly where a landlord can become known to the university accommodation office as a good landlord. This is actually one of the best ways to find tenants, because the university can act as a central clearing house for first years and others who are not necessarily familiar with the area.

In fact, students can be good tenants because you know they are with you for a fixed period, usually early September to June, although some may reserve accommodation as early as August, if they are “freshers” (first year students). A landlord will need to provide basic furnishing including: a bed and desk (and hopefully a chair) but other than that there are few restrictions.

Things for a landlord to understand There are several factors that need to be considered. In particular, landlords cannot expect a full twelve-month let, so you need to calculate your rent on the basis of nine months of the year. Conversely, this will leave a landlord the summer to do any repairs and re-decoration and you might even be able to do a deal with the University to provide summer school accommodation.

Landlords also need to be aware that students, away from home for the first time, are likely to be as untidy and disrespectful of other people’s property as they were at home, so a higher degree of dilapidation than in other letting situations may be possible. This could impact on relationships with neighbours; unless they are also letting to students. One other issue; is that while the “sign-up” period might be relatively short at the start of each academic year, there can be a “move round” after a few months as some find it difficult to mix with their house- or flat-mates and form new friendships. So it could be worthwhile keeping your listing current with the university and on any websites you use, to “sweep up” any swaps. Landlords that do decide to let to students should ensure that they get a guarantor for the letting this will protect the landlord from what ever the tenant hordes throw at them.

Finding the right property owners’ insurance Finally, there is also the issue of landlords insurance. Not all insurance companies are keen on student tenants and they may impose higher excesses or charge higher premiums where students are involved. It is absolutely essential to ensure that a landlords property insurer is fully aware of the position if you let to students. This is because many insurers consider that the type of tenant to be a “material fact”. This means that if there is a claim and you have not disclosed this, they can quite legitimately seek to repudiate a claim.

Alternative lettings If a landlord is interested in this area of letting, because of the availability of large numbers of potential tenants but are not fully committed to having your property full of undergraduates, a landlord might consider the alternative of having post graduate tenants, student nurses or junior doctors as tenants. They tend to be slightly older and may well be for the longer term because the training can take quite a long time. Also, they may be less inclined to keep moving each year, as student tenants.

Professional advice for all your property owners’ insurance needs Ensuring that you have the right landlord’s insurance is essential if you are to be properly protected. Always ask your insurance advisers what experience they have of dealing in this specialised sector.

Filed Under: Articles Tagged With: Dilapidation, Early September, Several Factors

Where to Get Cheap Las Vegas Renters Insurance

September 13, 2010 By George Leave a Comment

As home prices go down and mortgage rates and requirements go up, more people in Las Vegas are turning away from buying a home and choosing to rent instead. Here’s how to get cheap Las Vegas renters insurance with a reliable company.

You Need Renters Insurance if You Own Personal Property

Renters insurance is a necessity if you own personal property. If you’re a renter, your personal possessions are not covered under your landlord’s insurance policy. Think of all the stuff you own – furniture, computer, clothing, appliances, electronics, sports equipment, CDs, kitchen utensils, etc. If you don’t have renters insurance and there’s a fire in your home, or there’s a burglary, you’ll be paying a lot of money to replace your belongings.

You Need Renters Insurance to Cover Extra Living Expenses

Imagine that a fire or flood has damaged your rental so badly that you cannot live there until repairs are made – which will take at least six months. Renters insurance will pay your living expenses such as hotel, motel, and restaurant bills. Without renters insurance, you may be hoping for friends who are kind enough to let you sleep on their couch.

You Need Renters Insurance to Protect Your Future

Renters insurance also provides liability coverage. This means if someone falls and injures himself or herself while visiting you and then decides to sue you, you have coverage to protect your assets.

Find Cheap Renters Insurance on the Internet

To help you save money on Las Vegas renters insurance, go to an insurance comparison website. Here you”ll complete a simple form with personal information about yourself and information about the place you’re renting. You’ll also need to enter the coverage amount and the deductible amount you want for your insurance.

The best insurance comparison websites offer a chat feature, so if you have any questions as you fill out your form you can get answers from insurance professionals online. (See link below).

Soon after you complete and submit the form, you’ll begin to receive quotes from multiple A-rated insurance companies. All you have to do is compare the quotes and choose the company with the best renters insurance rate.

Visit http://www.LowerRateQuotes.com/renters-insurance.html or click on the following link to get Las Vegas renters insurance rate quotes from top-rated companies and see how much you can save. You can also get more insurance tips there.

Filed Under: Insurance Tagged With: Burglary, Cheap Las Vegas, Living Expenses

Graduating From College: are You Prepared?

September 13, 2010 By George Leave a Comment

Preparing for college graduation can be difficult enough without worrying about a credit report. Many kids in college have no clue what they will do once they’ve graduated from school. Sure, getting a job, upgrading a car and improving a current living situation are probably in the sights of most graduating students. But creating a credit report that’s graded an A+ should be a priority for kids graduating from college.

Why Credit Reports Are Important to College Students

College students benefit when they work to create a solid credit report. In order to get a job, an apartment or the best rates on auto and home insurance, a clean credit history is required. Prospective employers, landlords, insurance companies and more will use information obtained from a college student’s credit report to determine credit worthiness.

College Credit Cards Help Kids after School Ends

A college credit card can be a smart option for a graduating student when used wisely. These cards are designed for the needs of kids in school and can be low interest cards or rewards credit cards. Students can compare college credit cards before they apply to make sure they get the best deal. The best cards offer benefits to students well after they graduate. Low interest rates and rewards programs can make the right college credit card useful after leaving school and entering the workforce.

Understanding How a Line of Credit Works for Students

It’s important that students understand how a line of credit works before they apply for credit cards. Interest rates and fees impact the total cost of having a credit card. A student’s line of credit is just like a loan- it’s just a different way of accessing borrowed money. In addition to rates and fees, students who apply for college credit reports need to be aware of the risk of identity theft. Keeping credit cards, statements, PIN numbers and related information safe is critical for students with a line of credit. Ordering a free credit report online annually is a good way to ensure that a credit history is in good standing and that accounts are safe from identity fraud.

Filed Under: Articles Tagged With: Best Cards, College Credit Cards, Interest Cards

Why you should have renters insurance – Part 4

September 12, 2010 By George Leave a Comment

“Renter’s insurance? No, I don’t need that. I don’t really have that much stuff’ and anyway, won’t my landlord’s policy cover what I do have?”

These are probably two of the biggest misconceptions regarding renter’s insurance. In today’s challenging economic environment, the financial burden of replacing personal belongings damaged by fire, wind, certain types of water damage, vandalism or theft can be significant, even in a one person household. And the landlord’s policy generally covers only the building and will not provide any coverage for personal property belonging to the individual tenants.

And for college students living either in dorms or in off-campus apartments; do you think you’re safe because you’re covered under your parents’ homeowner’s policy? Even here the answer is “maybe”. While it is true that most homeowner’s policies do provide some coverage for students away at school, the coverage is often for a very limited amount, such as 10% or less of the personal property limit that exists on the homeowner’s policy. So, if Mom and Dad have $50,000 in personal property coverage for their home, Junior will only have $5000 in coverage at college. In a dorm room, $5000 might be sufficient. But if Junior has an off-campus apartment, $5000 probably won’t go very far in the event of a total loss.

According to the Insurance Information Institute, about 57% of individuals renting apartments or homes are uninsured. When you take into consideration the fact that apartment buildings and rental homes may be older and not as well maintained as single family homes that are occupied by the owner, these uninsured tenants may well be in a very precarious situation. Electrical problems, older or faulty appliances and the smoking habits of neighboring tenants may increase the risk of fire. Outdated plumbing or poorly maintained basement apartments present prime opportunities for water damage. And certain areas of the country may be more prone to natural disasters such as tornados or hurricanes which almost always result in significant damage to property.

Most people have far greater amounts of personal property than they may realize. Don’t believe it? Consider doing a room-by-room inventory of everything you would have to replace if your apartment were destroyed by a fire or tornado for example.

Starting in the living room furniture, even the most Spartan apartment will have at least one sofa, table, chair, and lamp as well as rugs,

Filed Under: Personal Finance Tagged With: Apartment Buildings, Dorm Room, Renter Insurance

Where to Get Cheap Renters Insurance

September 12, 2010 By George Leave a Comment

Looking for renters insurance? Want to get the cheap renters insurance with a top company? Read on …

Renters Insurance

Many renters think their landlord’s insurance will cover them if they have a fire, burglary, or other disaster. Not so. Your landlord’s insurance only covers the building you live in, not your personal possessions. That’s why you need landlord’s insurance if you’re a renter.

What Renters Insurance Covers

Renters insurance will pay to replace your personal possessions when they’re stolen, or damaged by fire, theft, vandalism, or natural disasters.

Renters insurance also pays for medical expenses and legal fees if someone hurts himself in your home and sues you. And it pays for your living expenses if you need to temporarily move out because your residence becomes uninhabitable due to a fire or other causes.

How Much Renters Insurance You Need

Go through your home and take an inventory of your possessions, including clothing, furniture, electronics, kitchen utensils, linens, jewelry, and collections. Use the total value of everything you own as the amount of insurance you need.

For personal liability insurance, most people get $100,000 worth of coverage. But if you have a lot of assets you may want to get enough coverage to protect those assets.

Where to Get Cheap Renters Insurance

Cheap renters insurance is as near as your computer. The best way to get cheap renters insurance is to go to an insurance comparison website and get quotes from a number of renters insurance companies.

All you have to do is spend a couple of minutes filling out a simple form, wait for your quotes, then choose the cheapest one.

The best sites only affiliate with A-rated companies so you know the company you choose will be reputable and will pay your claims. These sites also feature online chat services and toll-free telephone services so you can get answers to your renters insurance questions from an insurance expert. (See link below.)

Visit http://www.LowerRateQuotes.com/renters-insurance.html or click on the following link to get cheap renters insurance quotes from top-rated companies and see how much you can save. You can get more insurance tips in their Articles section.

Filed Under: Articles Tagged With: Burglary, Insurance Expert, Vandalism

Buy-to-let Insurance Explained

September 9, 2010 By George Leave a Comment

Buy-to-let property insurance, some times also known as residential property owners insurance, is needed if you own houses and/or flats to tenants – either on a short-term or long-term basis.

Ordinarily you can buy cheap buy-to-let property insurance in the event that you rent five or less properties in the UK than is the case if you rent more than five properties, as in the case of the former you are seen as a small time landlord with a small business, whereas in the latter you are seen as a full blown property-owning company.

Whether you plan to rent five or less properties, or five or more properties, is, however, a side issue, as in both cases you’ll need to ensure that you have at least the minimum level of required insurance in order to protect yourself. Consequently, the number of properties you own will have a bearing only insofar as the insurance premiums are concerned. That said, if you are looking to become a property owner with a letting business, then you need to ensure that you have the following minimum provisions in your insurance policy:

Fire

Insuring against any fire on the property

Natural Disaster (also known as tempest insurance)

Insuring against natural disasters that may occur, such as a storm where the winds tear off your roof or guttering.

Theft

Which is especially important if you are renting out fully furnished properties. In the event that you are renting out unfurnished premises, you may wish to have a discussion with your tenants about whether or not they should have home contents insurance

Public Liability Insurance

This should be a must as it will protect you against any claims your tenants or any third parties (such as their guests) may have for injuries they suffer while on your property.

Lost Earnings

There may well be times when your property remains empty; say, for example, while you look for new tenants. If you are relying on the rental income from your tenants to repay the money you borrowed to purchase the property, you need to ensure you have lost earnings insurance to compensate you during this period.

Employee Liability Insurance

If you have employees who will visit the property for you to repair any damage, etc. or to collect the rental payments, then you need to make sure that you have employee liability insurance in case they get injured while carrying out their assigned task.

Legal Expenses Insurance

As a property owner you may find the need from time to time to retain the services of a lawyer; for example, if your tenants refuse to pay their rent or move out of the property at a specified agreed time – when you may need to get an eviction notice. As legal expenses in the UK can be expensive, you should consider insuring against this risk by having in place a provision of legal expenses in your insurance policy.

Although the above are basically the bare minimums you need in your buy-to-let property insurance policy, you can also tailor these types of insurance policies to meet your particular needs, so make sure that you talk through your circumstances with your insurance provider, especially if you anticipate expanding the business in the near future.

Filed Under: Articles Tagged With: Buy To Let Property Insurance, Property Owner, Residential Property Owners

A Guide to UK Buy to Let Mortgages

September 7, 2010 By George Leave a Comment

Essentially there is little difference between the process that one follows for a buy to let mortgage in the UK than there is for any other type of mortgage. The lender still has to consider your credit worthiness, the value of the property, how much down payment you can afford and all of the other usual considerations. However, in addition, the lender will usually be interested in what the market is for letting properties in the same area as the one that you are thinking of investing in. The lender will look at property taxes and average rents for similar properties. Other than those particulars, however, the process moves along nearly the same.

A buy to let mortgage can be arranged for either commercial or residential property. Terms can range from between five to forty-five years. There are fixed and variable interest schemes available, and the lender takes an interest in your property just like with any other mortgage so your property is still at risk if you fall into arrears. One difference is that a lender will consider your potential cash flow from rental income as part of your available money to repay the loan under some circumstances.

Because not all lenders view buy to let mortgages as a risk that they are willing to take, your best route is to choose a mortgage broker who specializes in buy to let schemes. This way you have the best opportunity of getting you application reviewed by the largest number of lenders who are likely to make a decision in your favor. Since you do not have to pay a fee to engage the broker there is no reason not to take advantage of their services.

Before you buy

You should work with either a commercial or residential real state broker, depending upon the type of property you are looking to invest in, who understands the buy to let market in the area that you are considering. Choose an agent who is bonded and who has a large portfolio of potential properties for you to review.

Have your broker help you choose areas that are compatible with the type of property that you want to buy. Choose property that matches the needs of the area. For example, you might find it hard to fully let an office building in an area that is used primarily for light manufacturing. Likewise, a warehouse might not go over well if it is surrounded by an office park complex. If you are thinking about purchasing residential property with your buy to let mortgage then make sure that you look in neighborhoods where there are already properties for let. It may be very hard to let a home in a neighborhood populated exclusively by high-income home owners.

Planning your cash needs

You should also determine the maximum that you are willing to spend to buy property. Besides considering the purchase price you will need to determine your available down payment and other expenses such as the services of a solicitor, stamp duty, survey/valuation fees, broker fees etc. You should also consider after-purchase expenses including remodeling to make the building fit for its intended usage, utility deposits and agent’s fees if you plan to use a letting agent to attract and vet tenants.

Other expenses are sure to include insurance, routine property maintenance plus ground rents (if applicable) and property taxes. Usually your tenant is responsible for utilities after they move in as well as any Council Tax, TV licence fees, and the like.

Consult with your accountant

In many cases there are tax allowances and deductions which can be taken against rent that you receive. Your usual and customary expenses, including maintenance, insurance, cleaning and landscaping, as well as other recurring expenses likely apply. While you may not deduct the actual cost of your initial improvements, subsequent repair and replacement of those improvements likely will be deductible. In some cases you can take a flat 10% of the rent as a deduction against normal wear and tear. The tax maze can be very complicated so be sure to let your accountant help you navigate it.

During the buy to let mortgage loan process

If you are using a mortgage broker then you will not have to jump at the first approval that you receive. The chances are you will be presented with multiple offers. Read each one over and set aside the ones that are so far away from your expectations that even intense negotiations could not make the offer better. Re-read the remaining offers and make a list that details the good and bad points of each one. Send the offers and your list to your solicitor and have him review the contract and your concerns.

Once you are through with that step its time to negotiate. Depending upon the level of service that your broker provides you can either have them handle the negotiations, or you can hire your solicitor, or you can do it yourself.

What can/should be negotiated? Anything from the term of the loan to interest rates, pre-payment or early cancellation fees, payment due dates, lender’s fees, fixed and variable interest rates, items of concern found by your solicitor and anything else that doesn’t strike your fancy the first time out. There is no risk to attempting to negotiate and you can always be sure that you will NEVER get what you want if you don’t ask for it.

Buy to let mortgages used to be very hard to obtain and only people who didn’t really need the money were able to get approval. This is no longer the case. Competitive lenders, especially those lenders who work with buy to let mortgage brokers, realize that the market for residential and commercial property letting is on the rise again. Now is the right time to find a broker and get busy building your investment portfolio of properties.

About the Author

Commercial Lifeline are independent Commercial Mortgage brokers saving you money on your Commercial Mortgage and Bridging Finance through lender choice.

Download our free Commercial Mortgage guides by visiting our Commercial Mortgage Guide page.

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About the Author

Commercial Lifeline are independent Commercial Mortgage brokers saving you money on your Commercial Mortgage through lender choice.

Filed Under: Business-Articles Tagged With: Cash Flow, Mortgage Broker, Uk Mortgages

Buy To Let Property Insurance – Part 1

September 6, 2010 By George Leave a Comment

Buy-to-let property insurance, some times also known as residential property owners insurance, is needed if you own houses and/or flats to tenants either on a short-term or long-term basis. Ordinarily you can buy cheap buy-to-let property insurance in the event that you rent five or less properties in the UK than is the case if you rent more than five properties, as in the case of the former you are seen as a small time landlord with a small business, whereas in the latter you are seen as a full blown property-owning company.FireNatural Disaster (also known as tempest insurance)TheftPublic Liability InsuranceLost EarningsEmployee Liability InsuranceLegal Expenses InsuranceAlthough the above are basically the bare minimums you need in your buy-to-let property insurance policy, you can also tailor these types of insurance policies to meet your particular needs, so make sure that you talk through your circumstances with your insurance provider, especially if you anticipate expanding the business in the near future.

Filed Under: Articles Tagged With: Buy Insurance, Circumstances, Small Business