Helpful Information: Useful Tips
12 Ways You Can Save Money On Your Homeowners’ Insurance
We’re all looking for ways to save money and receive the best deal available to us. Therefore, we have provided you some of the criteria our insurance carriers use to determine homeowners’ rates. While some of these credits already may have been applied to your policy, there may be additional things you can do to lower your premium when your policy is up for renewal.
• Install Smoke Detector, Fire Extinguisher and Deadbolts – credits for all three are available.
• New Home Credit – discounts are available for the age of the home.
• Home Renovation Credit – based on the extent and recentness of renovations.
• Alarm Credits – discounts vary by types and function of alarms.
• Age of Homeowner Credit – “Mature person” discounts are available.
• Non-Smoking Credit – Applicable when residents are non-smokers.
• Credits for Increased Deductible – deductibles must be greater than $250.
• Home Construction – lower rates are available for masonry construction vs. frame.
• Sprinkler System Credit – for approved interior sprinkler systems.
• Long-Term Policyholder – discounts for staying with the same carrier.
• Claim-Free Policyholder – given to policyholders who have not filed claims.
• Home & Car Credit – discounts for having both policies with same company.
Summer Home Maintenance Tips
Gutters – Clean gutters and downspouts. If gutters become clogged they will hold water which could back-up and cause damage to the roof or walls. Carefully remove debris and dirt using a spoon or garden shovel. Use a garden hose to clean the downspouts. Simply place the garden hose at the opening and let water run through the downspout.
Air Conditioner – Summer is the perfect time to have your air conditioner serviced to make sure it is operating efficiently. Also, check for growing vines near the air conditioning unit. They can easily grow and intertwine themselves throughout the unit. You also want to check to make sure there aren’t any ant mounds nearby since the ants can damage the unit.
Windows and Door Frames – Check windows and door frames to ensure there are no openings which would reduce the efficiency of your air conditioner. You can use latex caulking to caulk around storm windows and door frames. If you will need to paint the caulk to match the surrounding area, be certain to use paintable caulk. This project is perfect for the summer since you only want to caulk on a warm, dry day.
Trees and Shrub – Trim trees and shrubs that may be growing too close to the house or the air conditioning unit.
Yard – Now is a good time to rid the yard of any debris which could harm the underlying grass. You should also check for any containers which might collect water thus becoming a perfect spot for mosquitoes to breed.
Chimney – Hire someone to perform a chimney sweep. Doing this inspection now will allow plenty of time for repairs to be done before winter.
Home Exterior – Wash the exterior of your home with water and a mild detergent. You can also purchase a cleaning product that attaches to the end of your hose and sprays a combination of water and detergent. This is a good alternative if you do not have a pressure washer.
Concrete – Cracks in the driveway, sidewalk, patio, etc. can be repaired by using concrete caulk or concrete patch.
Summer Auto tips
Read the owner's manual and follow the recommended service schedules. The manual contains a complete checklist of services, schedules and other important information about your vehicle.
Flush and refill the cooling system (radiator) according to the service manual's recommendations. The level, condition and concentration of coolant should be checked periodically. If you are doing your own work, make sure the engine has cooled down before removing the radiator cap.
Have engine performance problems -- hard starts, rough idling, stalling -- corrected. You'll get better gasoline mileage and you may prevent more expensive repairs later on. For example, something as simple as a rough idle could indicate an underlying problem that could ruin your vehicle's catalytic converter over time. The old adage, "Pay me now or pay me later," is especially true with today's high-tech, computerized systems.
If you are not a do-it-yourselfer, look for repair facilities with vehicles in the parking lot equal in value to your own, modern equipment in the service bays and signs that the automotive technicians are qualified, such as trade school diplomas, certificates of advanced course work and training classes, as well as national certification of the individual technicians by ASE.
The tightness and condition of belts, clamps and hoses should be checked by a qualified auto technician. Most do-it-yourselfers do not have the proper equipment. But weekenders can look for signs of wear, cracking or frayed belts. And, once again, don't ignore the service schedules listed in the owner's manual.
Have a marginally operating air conditioner system serviced by a qualified technician. The air conditioners on older vehicles often contain ozone-depleting chemicals that could be released into the air through improper or incompetent service.
Change the oil and oil filter as specified in owner's manual. (Properly dispose of used oil.) Polls of technicians overwhelmingly indicate that this is one of the most neglected services, and one that can greatly reduce the life of your car, light truck or SUV.
Replace other filters (air, fuel, PCV, etc.) as recommended in the service manual.
Check the condition of tires, including the spare. Let the tires "cool down" before checking their pressure. Uneven wear, "cupping," vibrations or "pulling" to one side indicates problems with your tires or suspension system.
Don't neglect your transmission. Costly repairs can be prevented by routine service.
For safety and convenience, inspect all lights and bulbs; replace burned out bulbs. Replace worn wiper blades and keep plenty of washer solvent on hand to fight summer's dust and insects.
Tax Tips
Deducting Real Estate Taxes. Real estate taxes, which are annual taxes based on the assessed value of a property, also are tax deductible. Your mortgage interest statement may list the amount of real estate taxes you paid if your taxes and homeowners' insurance were placed in an escrow account when you closed on your mortgage. If real estate taxes aren't included, you could review your cancelled checks to determine your total real estate tax deduction.
Deducting Loan Points Paid on a Purchase. The points you pay on a purchase mortgage are deductible the year you made the purchase. You can deduct any points you paid — and that a seller paid on your behalf* — if you meet the following criteria:
• The loan is secured by your primary residence and the loan was used to buy, improve or build the home.
• Paying points (and the amount of points paid) is not an irregular practice in the seller's geographic area;
• The points are computed as a percentage of the loan principal;
• The points are clearly delineated on the buyer's settlement statement; and
• You put cash into your home purchase in an amount at least equal to the points you were charged.
*Seller Paid Points are Deductible by the Buyer. When a seller pays points for the buyer (or in other words, buys the mortgage rate down) the buyer gets a lower mortgage rate.
Deducting Loan Points Paid on a Refinance. If you refinanced last year, you may be able to write-off any points you paid to buy down the mortgage rate. To do so, you deduct the points proportionately over the life of the new loan. For example, if you took out a 30-year loan, you would deduct 1/30th of the points you paid each year.
Have you refinanced more than once in recent years? Many homeowners have and may have overlooked an important opportunity. Say, for example, you refinanced in 2001 and paid points. You can deduct 1/30th of those points in that tax year. However, rates continued to drop, so you refinanced again in 2003, paying off that 2001 loan. The remaining points from the 2001 refinance — that is, those that haven't yet been deducted — can now be deducted in full since that loan has been paid off.
Deducting Interest on a Home Equity Loan. The interest on a home equity loan may be tax deductible up to $100,000. However, if your home equity loan when combined with your first mortgage amount, increases the debt on your home to an amount more than the property's actual value, there may be deductibility limits. Usually, you can deduct the smaller of interest on a $100,000 loan or your home's value less the amount of your existing mortgage.
