Maureen from San Diego wrote in asking for help regarding a challenging situation—a family member needs a favor, but one that can potentially hurt her credit score.
Her brother lost his job about a year ago and has subsequently fallen behind on his mortgage payments. On top of that, the value of the property has dropped by about 35% since the home was purchased, and is now worth far less than what is currently owed. Despite attempts to find a work-around, the situation has reached a point where foreclosure is imminent.
Maureen’s brother has started the process of searching for new housing, but is concerned about his chances of being approved for a rental as he was surprised to learn that many landlords pull a credit bureau report and score as part of the applicant review process. His credit score is already very low, as his missed payments on his mortgage and other credit accounts over the past year are already reflected in his credit report.
[Article: How Credit Inquiries Affect Your Credit Score]
Maureen’s brother has asked if she would be the primary on the rental application given she has good credit (credit scores above 720) and has a better chance of being approved—while he would actually make the rental payments. Maureen wants to help, but has concerns doing this could have a negative impact on her credit rating.
Unfortunately, this situation is becoming more commonplace as the number of people in duress with their mortgage continues to remain at record levels. As family members, it’s natural to want to help and provide the best support you can, and yet it is equally important to think carefully about potential short- and long-term ramifications these actions could have on your own financial profile.
The impact on Maureen’s credit report/score if she were to sign a rental lease would likely be minimal. There may be a small number of points lost due to the credit inquiry that is posted on her file when the landlord pulls her credit report. Right now, it is relatively uncommon that the payment history (positive or negative) for rent to be reported to the three national credit reporting agencies. However, the rental entity could opt to turn over a severely delinquent renter to a collection agency, and that could end up being reported and would be considered negative by the credit score.
[Featured Product: Monitor your Credit Reports and Scores]
If your name is on the lease, it would be posted to your credit bureau report. In addition, there are other smaller credit reporting agencies that may be capturing such information and a lender may access it when reviewing your application for credit.
It is important to note that the person signing the rental contract is legally liable for making the payments, regardless of any informal agreement one may have with a family member regarding who will actually be paying the rent (this holds true for roommates, as well). That could have ramifications if you’re seeking new credit in the future. For example, completing an application for credit usually requires you disclose all of your monthly debt obligations and your signature on that application indicates you have truthfully disclosed that information. One could argue that disclosure of the monthly rental amount should be included if you are legally responsible for the lease.
The mixing of family and financial matters can be a recipe for angst and frustration. When surfaced, it is a best practice to carefully review and understand potential ramifications before making any decisions that could have unintended consequences.
[Resource: Get your free Credit Report Card]
Source: http://www.credit.com/blog/2011/08/credit-score-dont-signing-an-apartment-lease-on-behalf-of-someone-else/
Monday, September 12, 2011
Friday, September 9, 2011
How to Build a Home Movie Theater Room on a Budget
k when I lived in a high-rise condominium, I had a simple television and a decent sound system – nothing special. After I got married, my wife and I moved to a single-family home and wanted to take the opportunity to create a truly remarkable media room in our basement.
We ended up spending plenty of money renovating our seventy-year-old house, so we had very little left over for a state-of-the-art movie room. Despite the tight budget, we built an incredible entertainment center.
There are plenty of companies ready and waiting to build your dream room, and they charge you tens of thousands of dollars to do it. However, if you want to save by taking on the project yourself, consider these five key elements of creating your media room, and the ways to exceed expectations without exceeding your budget.
Have you ever noticed how high-end audio stores always demonstrate their speakers in a special room? It’s no trade secret; the acoustics of your room have about as much to do with your perceived sound quality as the speakers themselves.
When you keep acoustics in mind for your room design, you can help contain sounds and minimize the penetration of outside noises by building a space that absorbs sound rather than reflecting or transmitting it. The key to incredible sound is how you cover the space, top to bottom.
Acoustic tiles are the ideal surface for your room’s ceiling. Visit any movie theater, and you will notice that their ceilings are covered with fiberglass panels much like the ones in the dropped ceilings you see in most offices. Fortunately, using these drop systems is the least expensive way to cover an unfinished ceiling.
Because of the low ceilings in my basement, I had to remove the existing ceiling first. Within the structure of the floor above, I added two layers of common fiberglass insulation. Two layers of insulation won’t retain much more heat than one, but packing in a second layer really helps to contain the sound. Though insulation is messy, it’s inexpensive and easy to install.
Next, I installed all of the hardware and wiring for the lights, speakers, and ceiling mounted projector.
Finally, I installed the drop ceiling made of standard fiberglass tiles. Most media rooms are black, to create a theater-like experience, and the hardest part was finding all of the tiles and hardware in black. I finally found a home improvement store that would special order it for me. If you are unable to find black panels, you can coat them with spray paint before installing them.
I completed the ceiling first so as to minimize the chances of damaging the walls or ruining the carpet. The total cost of our 150-square-foot-room was under $200.
Most modern homes have walls made of drywall, while older homes like mine have plaster walls. Both materials have terrible acoustics.
To fix the problem, I added inexpensive, lightweight acoustic boards that almost any home improvement store will carry. I then had my carpet installer cover them with thin, indoor/outdoor carpeting, like the kind you’d find covering the walls of many movie theaters.
Again, you will want to complete the walls before you start on the floor in order to avoid ruining your floor’s carpet. My total cost was under $500 for the acoustic panels, the thin carpet, and the installation.
If you have windows in your movie room, try to cover them to block out light. Room-darkening shades are a great option, especially combined with standard curtains. Alternatively, you can purchase heavier curtains that are lined to keep out light.
Read More Here: http://www.moneycrashers.com/home-movie-theater-design-installation/
We ended up spending plenty of money renovating our seventy-year-old house, so we had very little left over for a state-of-the-art movie room. Despite the tight budget, we built an incredible entertainment center.
There are plenty of companies ready and waiting to build your dream room, and they charge you tens of thousands of dollars to do it. However, if you want to save by taking on the project yourself, consider these five key elements of creating your media room, and the ways to exceed expectations without exceeding your budget.
Acoustics
Have you ever noticed how high-end audio stores always demonstrate their speakers in a special room? It’s no trade secret; the acoustics of your room have about as much to do with your perceived sound quality as the speakers themselves.
When you keep acoustics in mind for your room design, you can help contain sounds and minimize the penetration of outside noises by building a space that absorbs sound rather than reflecting or transmitting it. The key to incredible sound is how you cover the space, top to bottom.
Ceiling
Acoustic tiles are the ideal surface for your room’s ceiling. Visit any movie theater, and you will notice that their ceilings are covered with fiberglass panels much like the ones in the dropped ceilings you see in most offices. Fortunately, using these drop systems is the least expensive way to cover an unfinished ceiling.
Because of the low ceilings in my basement, I had to remove the existing ceiling first. Within the structure of the floor above, I added two layers of common fiberglass insulation. Two layers of insulation won’t retain much more heat than one, but packing in a second layer really helps to contain the sound. Though insulation is messy, it’s inexpensive and easy to install.
Next, I installed all of the hardware and wiring for the lights, speakers, and ceiling mounted projector.
Finally, I installed the drop ceiling made of standard fiberglass tiles. Most media rooms are black, to create a theater-like experience, and the hardest part was finding all of the tiles and hardware in black. I finally found a home improvement store that would special order it for me. If you are unable to find black panels, you can coat them with spray paint before installing them.
I completed the ceiling first so as to minimize the chances of damaging the walls or ruining the carpet. The total cost of our 150-square-foot-room was under $200.
Wall Surface
Most modern homes have walls made of drywall, while older homes like mine have plaster walls. Both materials have terrible acoustics.
To fix the problem, I added inexpensive, lightweight acoustic boards that almost any home improvement store will carry. I then had my carpet installer cover them with thin, indoor/outdoor carpeting, like the kind you’d find covering the walls of many movie theaters.
Again, you will want to complete the walls before you start on the floor in order to avoid ruining your floor’s carpet. My total cost was under $500 for the acoustic panels, the thin carpet, and the installation.
Window Coverings
If you have windows in your movie room, try to cover them to block out light. Room-darkening shades are a great option, especially combined with standard curtains. Alternatively, you can purchase heavier curtains that are lined to keep out light.
Read More Here: http://www.moneycrashers.com/home-movie-theater-design-installation/
Thursday, September 8, 2011
Consumer Reports Shines a Light on the Best CFL and LED Bulbs
The days of inefficient light bulbs are slowly coming to an end and recent tests from Consumer Reports showcase more than 30 different compact fluorescents and light-emitting diodes that can brighten indoor and outdoor spaces.
Consumer Reports’ CFL and LED bulb research found that many problems of the earlier versions of the bulbs have been overcome and that these new efficient bulbs last longer and use far less electricity than the traditional incandescent bulbs.
The Ratings put a spotlight on 60-watt equivalent CFLs and LEDs, as those are the most popular types sold in the U.S. Out of the two types of bulbs tested, CFLs save money faster due to their low cost. It usually takes less than a year to recoup the cost of most CFLs, according to Consumer Reports tests, while LEDs can take four to 10 years to pay for themselves due to the high cost of the bulb.
CFLs now have less mercury. The amount in the bulbs, Consumer Reports tested, has dropped 60% to 75%, compared with already low levels they found in 2008, without affecting performance. Nevertheless, spent CFLs should be recycled. Home Depot, Ikea, Lowe’s, and some ACE Hardware stores will accept used bulbs. If you break a CFL, follow EPA’s clean-up tips.
LEDs are the newest choice, with the highest price. The best LEDs were still as bright as the incandescent they replaced, yet only half were as bright as promised. Consumer Reports found that all LEDs reached full brightness instantly, even at frigid temperatures, providing warm white light that was unaffected by frequently turning them on and off.
Energy use matched or exceeded claims. LEDs are supposed to last 20,000 to 50,000 hours, or about 18 to 46 years when used 3 hours a day. Nearly all the LEDs are still burning brightly after 3,000 hours, and only four of the 100 LEDs stopped working.
CR Recommended picks include three that were also evaluated by 19 Consumer Reports staffers in their homes, the Philips AmbientLED 12.5W 12E26A60 60W, $40 for table or floor lamps, the EcoSmart LED Downlight 10.5W 65W E26 ECO-575L Dimmable (Home Depot), $50 for recessed or track lights, and the EcoSmart PAR38 ECS 38 Bright White 75W 866194 Dimmable LED (Home Depot), $45 outdoor flood light.
“You can find a CFL or LED that will give you the brightness and light quality you like, and it will save you around $50 over the life of each CFL and anywhere from $65 to $400 over the lifetime of each LED,” said Celia Kuperszmid Lehrman, deputy home and yard editor at Consumer Reports. “Plus these new efficient bulbs last much longer than incandescent bulbs, so you won’t have to change them as often.”
It isn’t socket science, but there are a few terms you need to know before buying any energy-saving bulb. Energy Star-qualified bulbs meet high standards for brightness, color, and energy use, and the mercury content is capped in CFLs. Additionally, a variety of federal regulations will be implemented in the coming years including a law that requires most screw-in bulbs to be more efficient by 2014.
Look at lumens. Watts tell only energy use, lumens measure brightness. In spirals, look for at least 450 lumens if replacing a 40-watt bulb, 800 lumens or more for a 60-watt bulb, 1,100 lumens for a 75-watt bulb, and 1,600 lumens or higher when replacing a 100-watt bulb. In floodlights look for a lumen count that is at least 10 times the wattage of the bulb replacing.
Don’t confuse brightness with color. The whiteness, yellowness, or blueness of light is measured by its temperature in kelvins. Incandescents produce a warm yellowish light with a color temperature of about 2,700K. At 3,00K to 4,100K range give off a cool, bright white light that’s similar to a halogen bulb, and 5,000K to 6,500K bulbs mimic natural or daylight, but can have a bluer tones that may be unflattering indoors. Use kelvins to get the right color light because terms like soft white and warm white mean different things to different manufacturers.
Note CRI. In addition to temperature, the Color Rendering Index indicates how accurately colors appear under the light and ranges from 0 to 100, with daytime sunlight at 100. Most of the tested bulbs are in the low 80’s; a few reached the upper 80’s and low 90’s. A CRI of at least 80 is generally recommended for interior lights, and differences of fewer than five points are insignificant.
Read the package. As of Jan. 1, 2012, a Lighting Facts label must appear on the packages of most bulbs to show brightness, energy use, estimated energy costs, expected life, light color in kelvins, and, for CFLs, mercury content. Note: Only the information on Energy Star bulbs has been independently verified.
Check for rebates and coupons. Visit www.dsireusa.org/incentives or www.energystar.gov to find utility rebates and search online for manufacturer rebates and coupons.
Keep your receipts. The bulbs are supposed to last for years, so save the receipts and UPC codes, which you will need to return a bulb to the manufacturer or retailer.
The full report is available for fans of Consumer Reports’ Facebook page.
Source: Consumer Reports
Read more: http://www.houselogic.com/news/articles/consumer-reports-shines-light-best-cfl-and-led-bulbs/#ixzz1WjJzOpA7
Consumer Reports’ CFL and LED bulb research found that many problems of the earlier versions of the bulbs have been overcome and that these new efficient bulbs last longer and use far less electricity than the traditional incandescent bulbs.
The Ratings put a spotlight on 60-watt equivalent CFLs and LEDs, as those are the most popular types sold in the U.S. Out of the two types of bulbs tested, CFLs save money faster due to their low cost. It usually takes less than a year to recoup the cost of most CFLs, according to Consumer Reports tests, while LEDs can take four to 10 years to pay for themselves due to the high cost of the bulb.
CFLs now have less mercury. The amount in the bulbs, Consumer Reports tested, has dropped 60% to 75%, compared with already low levels they found in 2008, without affecting performance. Nevertheless, spent CFLs should be recycled. Home Depot, Ikea, Lowe’s, and some ACE Hardware stores will accept used bulbs. If you break a CFL, follow EPA’s clean-up tips.
LEDs are the newest choice, with the highest price. The best LEDs were still as bright as the incandescent they replaced, yet only half were as bright as promised. Consumer Reports found that all LEDs reached full brightness instantly, even at frigid temperatures, providing warm white light that was unaffected by frequently turning them on and off.
Energy use matched or exceeded claims. LEDs are supposed to last 20,000 to 50,000 hours, or about 18 to 46 years when used 3 hours a day. Nearly all the LEDs are still burning brightly after 3,000 hours, and only four of the 100 LEDs stopped working.
CR Recommended picks include three that were also evaluated by 19 Consumer Reports staffers in their homes, the Philips AmbientLED 12.5W 12E26A60 60W, $40 for table or floor lamps, the EcoSmart LED Downlight 10.5W 65W E26 ECO-575L Dimmable (Home Depot), $50 for recessed or track lights, and the EcoSmart PAR38 ECS 38 Bright White 75W 866194 Dimmable LED (Home Depot), $45 outdoor flood light.
“You can find a CFL or LED that will give you the brightness and light quality you like, and it will save you around $50 over the life of each CFL and anywhere from $65 to $400 over the lifetime of each LED,” said Celia Kuperszmid Lehrman, deputy home and yard editor at Consumer Reports. “Plus these new efficient bulbs last much longer than incandescent bulbs, so you won’t have to change them as often.”
How to choose
It isn’t socket science, but there are a few terms you need to know before buying any energy-saving bulb. Energy Star-qualified bulbs meet high standards for brightness, color, and energy use, and the mercury content is capped in CFLs. Additionally, a variety of federal regulations will be implemented in the coming years including a law that requires most screw-in bulbs to be more efficient by 2014.
Look at lumens. Watts tell only energy use, lumens measure brightness. In spirals, look for at least 450 lumens if replacing a 40-watt bulb, 800 lumens or more for a 60-watt bulb, 1,100 lumens for a 75-watt bulb, and 1,600 lumens or higher when replacing a 100-watt bulb. In floodlights look for a lumen count that is at least 10 times the wattage of the bulb replacing.
Don’t confuse brightness with color. The whiteness, yellowness, or blueness of light is measured by its temperature in kelvins. Incandescents produce a warm yellowish light with a color temperature of about 2,700K. At 3,00K to 4,100K range give off a cool, bright white light that’s similar to a halogen bulb, and 5,000K to 6,500K bulbs mimic natural or daylight, but can have a bluer tones that may be unflattering indoors. Use kelvins to get the right color light because terms like soft white and warm white mean different things to different manufacturers.
Note CRI. In addition to temperature, the Color Rendering Index indicates how accurately colors appear under the light and ranges from 0 to 100, with daytime sunlight at 100. Most of the tested bulbs are in the low 80’s; a few reached the upper 80’s and low 90’s. A CRI of at least 80 is generally recommended for interior lights, and differences of fewer than five points are insignificant.
Read the package. As of Jan. 1, 2012, a Lighting Facts label must appear on the packages of most bulbs to show brightness, energy use, estimated energy costs, expected life, light color in kelvins, and, for CFLs, mercury content. Note: Only the information on Energy Star bulbs has been independently verified.
Check for rebates and coupons. Visit www.dsireusa.org/incentives or www.energystar.gov to find utility rebates and search online for manufacturer rebates and coupons.
Keep your receipts. The bulbs are supposed to last for years, so save the receipts and UPC codes, which you will need to return a bulb to the manufacturer or retailer.
The full report is available for fans of Consumer Reports’ Facebook page.
Source: Consumer Reports
Read more: http://www.houselogic.com/news/articles/consumer-reports-shines-light-best-cfl-and-led-bulbs/#ixzz1WjJzOpA7
Wednesday, September 7, 2011
Homeowners Insurance: Time for an Annual Check-Up
An annual check-up on your homeowners insurance can result in a healthier policy and a healthier pocketbook.
It’s time for your annual check-up. The good news is that for this one, you won’t have to don one of those revealing hospital gowns—and you may walk away with a healthier pocketbook. We’re talking about a homeowners insurance check-up, a task you should complete once a year, ideally around renewal time. This will ensure your policy still provides the right level of coverage for your family, and your premium isn’t costing you more than it should.
Remember, homeowners insurance is essential. The coverage is designed to protect your home and its contents, as well as shield you from liability for accidents and such on your property. Block out an hour of your time, call an insurance agent, and get answers to these three important questions.
The most effective type of coverage is known as “replacement cost,” which covers, up to your policy limits, what it would take today to rebuild your house and restore your belongings, says Jerry Oshinsky, a partner at Jenner & Block in Los Angeles who has represented homeowners in litigation against insurers.
“Extended” replacement cost coverage provides protection to your policy limit, say $500,000, and then perhaps another 20% of the cost after that. Percentages vary, but in this example you could recoup up to $600,000 on a $500,000 policy, assuming your losses reach that high. Extended coverage can compensate for any unanticipated expenses like spikes in construction costs between policy renewals. Now harder to find due to the industry shift toward extended replacement coverage, “full” or “guaranteed” replacement coverage covers an entire claim regardless of policy limits.
A less attractive alternative is “actual cash value” coverage that usually takes into account depreciation, the decrease in value due to age and wear. With this type of policy, the $2,000 flat-screen TV you bought two years ago will be worth hundreds of dollars less today in the eyes of your claims adjuster. Kevin Foley, an independent insurance broker in Milltown, N.J., favors replacement cost coverage unless you can save at least 25% on the premium for going with actual cash value coverage instead.
Even if you have replacement cost protection for your dwelling and personal property, don’t assume everything is covered. Structures other than your home on your property—such as a detached garage or swimming pool—require separate coverage. So too do luxury items like jewelry, watches, and furs if you want full replacement cost because reimbursement for those items is typically capped.
OK, now that you’re clear on what type of policy you have, you need to figure out how much policy you truly require in dollar terms. Let’s say you purchased your home five years ago and insured it for $200,000. Today, it’s worth $225,000. Simply increasing your coverage to $225,000 may nonetheless leave you underinsured. Here’s why.
The key to determining how much dwelling coverage you need isn’t the value of your home but the money you’d have to pay to rebuild it from scratch, says Carlos Aguirre, an agent for Liberty Mutual Insurance in Arlington, Texas. Call your local contractors’ or homebuilders’ association and inquire about the average per-square-foot construction cost in your area. If it’s $150 and your home is 2,000 square feet, then you should be insured for $300,000.
There’s no rule of thumb for how much your homeowners insurance should cost. Insurers use numerous factors—age, education level, creditworthiness—to determine pricing, so the same policy could run you more than your neighbor. In recent years the average annual premium was $804. Oshinsky advises against scrimping on insurance because big increases in coverage probably cost less than you’d think. He recently purchased a liability policy that cost $250 for the first $1 million in coverage. Adding another $1 million increased his premiums only $12.50 more.
The higher your deductible, the amount you pay out of pocket before coverage kicks in, the lower your premium. Landing on the appropriate deductible level requires remembering that insurance should cover major calamities, not minor incidents, says Foley, the independent insurance broker. Most homeowners should be able to absorb modest losses like a broken window pane or a hole in the drywall without filing claims. If you can, then you’re wasting money with a $250 deductible.
Foley’s rule: If you’re a first-time homeowner and don’t have a lot of savings, moving up to a $500 deductible will probably stretch your budget. However, if you live in a ritzy home and drive an expensive car, then you should be able to afford a $1,000 deductible. In Milltown, N.J., for example, the premium for a $200,000 home with a $500 deductible would be $736, according to Foley; moving up to a $1,000 deductible drops the annual premium to $672. That’s $64 in savings.
Every major insurer offers discounts to various groups, such as university employees or firefighters. Figure about 5%. Ask which affiliations would entitle you to a discount and how much. If an AARP membership would result in a $50 savings, pay the $16 dues and pocket the $36 difference. Many insurers also offer discounts ranging from 1% to 10% or more for installing protective devices like alarms and deadbolt locks, for going claim-free for an extended period, or for insuring both your car and your home with the same carrier.
G.M. Filisko is an attorney and award-winning writer who has been involved in insurance litigation. A frequent contributor to many national publications including Consumers Digest, Bankrate.com, REALTOR(R) Magazine, and the American Bar Association Journal, she specializes in real estate, personal finance, and legal topics.
Read more: http://www.houselogic.com/articles/homeowners-insurance-time-for-annual-check-
It’s time for your annual check-up. The good news is that for this one, you won’t have to don one of those revealing hospital gowns—and you may walk away with a healthier pocketbook. We’re talking about a homeowners insurance check-up, a task you should complete once a year, ideally around renewal time. This will ensure your policy still provides the right level of coverage for your family, and your premium isn’t costing you more than it should.
Remember, homeowners insurance is essential. The coverage is designed to protect your home and its contents, as well as shield you from liability for accidents and such on your property. Block out an hour of your time, call an insurance agent, and get answers to these three important questions.
What type of coverage do I have?
The most effective type of coverage is known as “replacement cost,” which covers, up to your policy limits, what it would take today to rebuild your house and restore your belongings, says Jerry Oshinsky, a partner at Jenner & Block in Los Angeles who has represented homeowners in litigation against insurers.
“Extended” replacement cost coverage provides protection to your policy limit, say $500,000, and then perhaps another 20% of the cost after that. Percentages vary, but in this example you could recoup up to $600,000 on a $500,000 policy, assuming your losses reach that high. Extended coverage can compensate for any unanticipated expenses like spikes in construction costs between policy renewals. Now harder to find due to the industry shift toward extended replacement coverage, “full” or “guaranteed” replacement coverage covers an entire claim regardless of policy limits.
A less attractive alternative is “actual cash value” coverage that usually takes into account depreciation, the decrease in value due to age and wear. With this type of policy, the $2,000 flat-screen TV you bought two years ago will be worth hundreds of dollars less today in the eyes of your claims adjuster. Kevin Foley, an independent insurance broker in Milltown, N.J., favors replacement cost coverage unless you can save at least 25% on the premium for going with actual cash value coverage instead.
Even if you have replacement cost protection for your dwelling and personal property, don’t assume everything is covered. Structures other than your home on your property—such as a detached garage or swimming pool—require separate coverage. So too do luxury items like jewelry, watches, and furs if you want full replacement cost because reimbursement for those items is typically capped.
How much coverage do I really need?
OK, now that you’re clear on what type of policy you have, you need to figure out how much policy you truly require in dollar terms. Let’s say you purchased your home five years ago and insured it for $200,000. Today, it’s worth $225,000. Simply increasing your coverage to $225,000 may nonetheless leave you underinsured. Here’s why.
The key to determining how much dwelling coverage you need isn’t the value of your home but the money you’d have to pay to rebuild it from scratch, says Carlos Aguirre, an agent for Liberty Mutual Insurance in Arlington, Texas. Call your local contractors’ or homebuilders’ association and inquire about the average per-square-foot construction cost in your area. If it’s $150 and your home is 2,000 square feet, then you should be insured for $300,000.
There’s no rule of thumb for how much your homeowners insurance should cost. Insurers use numerous factors—age, education level, creditworthiness—to determine pricing, so the same policy could run you more than your neighbor. In recent years the average annual premium was $804. Oshinsky advises against scrimping on insurance because big increases in coverage probably cost less than you’d think. He recently purchased a liability policy that cost $250 for the first $1 million in coverage. Adding another $1 million increased his premiums only $12.50 more.
How can I lower my premiums?
The higher your deductible, the amount you pay out of pocket before coverage kicks in, the lower your premium. Landing on the appropriate deductible level requires remembering that insurance should cover major calamities, not minor incidents, says Foley, the independent insurance broker. Most homeowners should be able to absorb modest losses like a broken window pane or a hole in the drywall without filing claims. If you can, then you’re wasting money with a $250 deductible.
Foley’s rule: If you’re a first-time homeowner and don’t have a lot of savings, moving up to a $500 deductible will probably stretch your budget. However, if you live in a ritzy home and drive an expensive car, then you should be able to afford a $1,000 deductible. In Milltown, N.J., for example, the premium for a $200,000 home with a $500 deductible would be $736, according to Foley; moving up to a $1,000 deductible drops the annual premium to $672. That’s $64 in savings.
Every major insurer offers discounts to various groups, such as university employees or firefighters. Figure about 5%. Ask which affiliations would entitle you to a discount and how much. If an AARP membership would result in a $50 savings, pay the $16 dues and pocket the $36 difference. Many insurers also offer discounts ranging from 1% to 10% or more for installing protective devices like alarms and deadbolt locks, for going claim-free for an extended period, or for insuring both your car and your home with the same carrier.
G.M. Filisko is an attorney and award-winning writer who has been involved in insurance litigation. A frequent contributor to many national publications including Consumers Digest, Bankrate.com, REALTOR(R) Magazine, and the American Bar Association Journal, she specializes in real estate, personal finance, and legal topics.
Read more: http://www.houselogic.com/articles/homeowners-insurance-time-for-annual-check-
Tuesday, September 6, 2011
Professional Energy Audits: The Costs and Benefits
Address the energy efficiency issues weighing down your utility bills, with help from an energy audit.
Homes are supposed to breathe. But some inhale excessively from the outdoors and exhale too much from inside. The result: Drafty rooms, high utility bills, dirty and leaky ducts, and a bigger-than-necessary carbon footprint. If you think your home could be more energy efficient but aren’t sure where its leaks live, an energy audit can diagnose your energy issues and help you decide which to tackle.
Audits identify a mixture of major and minor air leaks. So if you’re budget-minded, you might opt for inexpensive fixes like adding caulk or insulation at leak points and installing weather-stripping. If you’re embarking on a remodel, you can make bigger investments, such as adding insulation.
The question is whether to hire a pro or conduct a free do-it-yourself audit guided by online tips. There are pros and cons to either approach.
Professional audits aren’t cheap: They run from $150 (visual) to $400-$600 or more (diagnostic). But the information they reveal can help you make targeted repairs that lower energy bills by 5% to 30% annually, according to the U.S. Department of Energy’s office of Energy Efficiency and Renewable Energy. With energy bills averaging about $2,200 annually, according to Energy Star, following an auditor’s recommendations could save you up to $660 within a year.
Paying for an audit may not make sense if you have a newly-constructed home, which likely follows the most up-to-date building codes. Energy audits should also take a back seat to urgent home issues that compromise safety, such as old or faulty electrical or structural issues, like roof or foundation problems. So if you own a fixer-upper, it’s worth addressing safety issues before optimizing energy issues.
A do-it-yourself audit may help you make an educated guess about how airtight your home is—or isn’t—and point you toward fixes. A typical DIY test: Hold up a lit candle to windows, doors, and electrical outlets to see if a draft blows the flame.
But be aware that when you fix a problem you uncover yourself, you could err. For instance, you might pay for new windows when you need to insulate existing window frames instead. You could also over-seal your home, creating indoor air quality issues (dirty air, mold) that compromise your health.
Pro audits give you access to high-tech tools that pinpoint the exact location of duct leaks; exactly how airtight your home is (and should be according to local code); gas leaks; and which direction drafts are blowing. Draft direction can alert an auditor that your attic is greedily sucking up your warm air, for instance. They also ferret out drafts between insulated and less-insulated (garage, basement/crawlspace, attic) portions of a home and assess the performance of heating and cooling systems.
A visual inspection (like a home inspection, but focused narrowly on energy issues) might be sufficient if you have semi-finished or exposed spaces (unfinished basements, exposed ducts, crawlspaces, and attics). A diagnostic inspection includes visual work, but also employs tools and devices to pinpoint air leaks.
These technologies provide far more specific information about a home’s issues than a typical DIY audit.
A technician should be able to tell you how much total air leakage exists in your home (10 sq. ft. is like having a door open all the time), where it comes from, and how best to address it, says Robert Stockmann, of Pinnacle Home Inspections in Bellingham, Wash. The most common issues he finds are:
Energy audit is a loose term these days, so when hiring an auditor, ask questions. Make sure the auditor doesn’t work for a window company; has a professional affiliation with or training from an auditing organization such as RESNET or the Building Performance Institute; and can provide a written report. If you need diagnostic advice, ask if the auditor can use tools that assess what’s going on behind walls and inside ducts. Your local utility company may offer audits or be able to recommend auditors.
Because an audit is a precursor to further spending for repairs, if your DIY audit indicates you need extensive, expensive, or hard-to-do repairs, consider a paid audit as a kind of second opinion. Likewise, any paid audit that indicates you need only minor fixes may seem unnecessary—but if you consider that small fixes may keep you from overspending on major ones, the money may be worth it.
Jane Hodges has written about real estate for publications including MSNBC.com, Seattle Magazine, and The Seattle Times. In 2007, she won a Bivins Fellowship from the National Association of Real Estate Editors to pursue a book on women and real estate. Her work has also appeared in The New York Times, CBS’s BNET, and Fortune. She lives in Seattle in a 1966 raised rancher with an excellent retro granite fireplace. Latest home project: Remodeling a basement bathroom.
Read more: http://www.houselogic.com/articles/professional-energy-audits-the-costs-and-benefits/#ixzz1VlvZ1kK2
Homes are supposed to breathe. But some inhale excessively from the outdoors and exhale too much from inside. The result: Drafty rooms, high utility bills, dirty and leaky ducts, and a bigger-than-necessary carbon footprint. If you think your home could be more energy efficient but aren’t sure where its leaks live, an energy audit can diagnose your energy issues and help you decide which to tackle.
Audits identify a mixture of major and minor air leaks. So if you’re budget-minded, you might opt for inexpensive fixes like adding caulk or insulation at leak points and installing weather-stripping. If you’re embarking on a remodel, you can make bigger investments, such as adding insulation.
The question is whether to hire a pro or conduct a free do-it-yourself audit guided by online tips. There are pros and cons to either approach.
Paying for a pro
Professional audits aren’t cheap: They run from $150 (visual) to $400-$600 or more (diagnostic). But the information they reveal can help you make targeted repairs that lower energy bills by 5% to 30% annually, according to the U.S. Department of Energy’s office of Energy Efficiency and Renewable Energy. With energy bills averaging about $2,200 annually, according to Energy Star, following an auditor’s recommendations could save you up to $660 within a year.
Paying for an audit may not make sense if you have a newly-constructed home, which likely follows the most up-to-date building codes. Energy audits should also take a back seat to urgent home issues that compromise safety, such as old or faulty electrical or structural issues, like roof or foundation problems. So if you own a fixer-upper, it’s worth addressing safety issues before optimizing energy issues.
DIY audits
A do-it-yourself audit may help you make an educated guess about how airtight your home is—or isn’t—and point you toward fixes. A typical DIY test: Hold up a lit candle to windows, doors, and electrical outlets to see if a draft blows the flame.
But be aware that when you fix a problem you uncover yourself, you could err. For instance, you might pay for new windows when you need to insulate existing window frames instead. You could also over-seal your home, creating indoor air quality issues (dirty air, mold) that compromise your health.
Services of a professional audit
Pro audits give you access to high-tech tools that pinpoint the exact location of duct leaks; exactly how airtight your home is (and should be according to local code); gas leaks; and which direction drafts are blowing. Draft direction can alert an auditor that your attic is greedily sucking up your warm air, for instance. They also ferret out drafts between insulated and less-insulated (garage, basement/crawlspace, attic) portions of a home and assess the performance of heating and cooling systems.
Two types of professional audit
A visual inspection (like a home inspection, but focused narrowly on energy issues) might be sufficient if you have semi-finished or exposed spaces (unfinished basements, exposed ducts, crawlspaces, and attics). A diagnostic inspection includes visual work, but also employs tools and devices to pinpoint air leaks.
- Blower door tests use high-powered fans to depressurize a home so that a technician can measure draft levels.
- Thermal or infrared scanning measures surface temperature variations along walls to spot exact locations of air leaks or insulation lapses.
- Smoke puffers release a form of “dust” during a blower door test to reveal the direction drafts are blowing.
- Duct blasters inject and measure air pressure, air flow, and leakage in ducts.
- Gas leak detection devices help assess indoor air quality.
These technologies provide far more specific information about a home’s issues than a typical DIY audit.
Common energy issues
A technician should be able to tell you how much total air leakage exists in your home (10 sq. ft. is like having a door open all the time), where it comes from, and how best to address it, says Robert Stockmann, of Pinnacle Home Inspections in Bellingham, Wash. The most common issues he finds are:
- Ducts in uninsulated areas (crawlspaces, attics, unfinished basements), which need cleaning, insulation, re-sealing
- Moisture in crawl spaces and basements
- Air that’s entering or exiting the home via range hoods, attic trap doors, and poorly sealed doors
Hire an auditor, smartly
Energy audit is a loose term these days, so when hiring an auditor, ask questions. Make sure the auditor doesn’t work for a window company; has a professional affiliation with or training from an auditing organization such as RESNET or the Building Performance Institute; and can provide a written report. If you need diagnostic advice, ask if the auditor can use tools that assess what’s going on behind walls and inside ducts. Your local utility company may offer audits or be able to recommend auditors.
Because an audit is a precursor to further spending for repairs, if your DIY audit indicates you need extensive, expensive, or hard-to-do repairs, consider a paid audit as a kind of second opinion. Likewise, any paid audit that indicates you need only minor fixes may seem unnecessary—but if you consider that small fixes may keep you from overspending on major ones, the money may be worth it.
Jane Hodges has written about real estate for publications including MSNBC.com, Seattle Magazine, and The Seattle Times. In 2007, she won a Bivins Fellowship from the National Association of Real Estate Editors to pursue a book on women and real estate. Her work has also appeared in The New York Times, CBS’s BNET, and Fortune. She lives in Seattle in a 1966 raised rancher with an excellent retro granite fireplace. Latest home project: Remodeling a basement bathroom.
Read more: http://www.houselogic.com/articles/professional-energy-audits-the-costs-and-benefits/#ixzz1VlvZ1kK2
Friday, September 2, 2011
Put Pets in Your Home Disaster Plan
Tropical storm season officially started this month, so it’s a great time to double-check the disaster plan for your family — including your pets. If you leave them behind when you evacuate, they’ll most likely end up lost, injured, or killed, according to the Insurance Information Institute.
“Many public shelters that are set up for disaster victims don’t accept pets, so you need to find out in advance which shelters or hotels along your evacuation route will accept pets,” said Jeanne M. Salvatore, senior vice president and consumer spokesperson for III. “It is tragic, but people have actually died because they were ordered to evacuate and did not want to leave their pets behind.”
Try these four tips to protect you, your loved ones, and your pets in the event of a disaster:
1. Have a disaster plan that includes these elements:
2. Make a grab-and-go disaster kit for your pets with these items:
3. If you must evacuate with your pets, be prepared to leave early. If you wait for an official evacuation order, you might be told to leave your pets behind. As you evacuate, follow these guidelines:
4. After the disaster, do not allow your pets to roam after you arrive back home because familiar landmarks and smells might be gone, and your pet may become disoriented. Pets can easily get lost in such situations, so give them some time to get used to their “new” surroundings.
Be patient. Try to get your pets back into their normal routines as soon as possible, and be on the lookout for stress-related behavioral problems; if these persist, talk to your veterinarian.
Source: III
Read more: http://www.houselogic.com/news/articles/put-pets-your-home-disaster-plan/#ixzz1VIM1xf6p
“Many public shelters that are set up for disaster victims don’t accept pets, so you need to find out in advance which shelters or hotels along your evacuation route will accept pets,” said Jeanne M. Salvatore, senior vice president and consumer spokesperson for III. “It is tragic, but people have actually died because they were ordered to evacuate and did not want to leave their pets behind.”
Try these four tips to protect you, your loved ones, and your pets in the event of a disaster:
1. Have a disaster plan that includes these elements:
- Make a plan for where you will go and how you will get there.
- Map out your primary route and a backup route in case roads are blocked or impassable. Make sure you have a map of the area available.
- Put together a list of boarding facilities and veterinarians along the evacuation route and outside your area that might be able to shelter your pets in an emergency. Include emergency phone numbers.
- Talk to your vet, the humane society, or the local emergency management agency for information regarding community evacuation plans that include pets.
- Make advance arrangements to have a friend or neighbor pick up your pets in the event you are not at home when a disaster strikes. Plan where you will meet or how you will reach each other.
2. Make a grab-and-go disaster kit for your pets with these items:
- Medication and medical records (including proof of rabies vaccination) in a waterproof container
- Pet first aid kit
- Leashes, harnesses, crates, and carriers for transporting pets
- A muzzle, if your pet requires one
- Food and water for at least three days; a manual can opener
- Cat litter and litter box
- Comfort toys
- Recent photo of you and your pet in case you become separated
- Name and phone number of your veterinarian
- If you have pet insurance, the insurance company contact information and policy number
3. If you must evacuate with your pets, be prepared to leave early. If you wait for an official evacuation order, you might be told to leave your pets behind. As you evacuate, follow these guidelines:
- Make sure your pet is wearing up-to-date identification. Include the phone number of a friend or relative outside your area in case your pet gets lost and you cannot be reached. Mark the crate or carrier with similar information.
- Transport birds in a secure travel cage or carrier. During warm weather, carry a plant mister to mist the bird’s feathers periodically. Do not put water inside the carrier during transport; instead provide a few slices of fresh fruit or vegetables with high water content.
4. After the disaster, do not allow your pets to roam after you arrive back home because familiar landmarks and smells might be gone, and your pet may become disoriented. Pets can easily get lost in such situations, so give them some time to get used to their “new” surroundings.
Be patient. Try to get your pets back into their normal routines as soon as possible, and be on the lookout for stress-related behavioral problems; if these persist, talk to your veterinarian.
Source: III
Read more: http://www.houselogic.com/news/articles/put-pets-your-home-disaster-plan/#ixzz1VIM1xf6p
Thursday, September 1, 2011
Create an Evacuation and Communication Plan
Having an evacuation and communication plan, and making sure everyone knows where to go in case of an emergency, can be the key to protecting your home and family.
Let’s face it — contemplating catastrophe can be stressful. Some people even feel like they’re courting a disaster by planning for one. That’s a natural response, but it’s not in your best interest as a homeowner.
“Denial is a pretty strong emotional mechanism for trying to put yourself at ease,” says Rick Bissell, Ph.D., a professor of emergency health services at the University of Maryland, Baltimore. But, he cautions, “if you deny that a crisis will ever occur, you won’t invest the time or energy in preparing to respond and protect yourself, and you’ll likely be out of luck.” Part of that preparation should include an evacuation and communication plan.
It’s hard to think clearly when the floodwaters are rising. That’s why you need to plan how to safely exit your house now, not when you’re panicking during an actual emergency. The particulars of your plan will vary depending on what kind of house you have and whether you live in Tornado Alley or quake-prone Los Angeles, but here are some general guidelines:
An emergency can knock out telephone and cell service, so it’s important to have a “communication commander” who can receive and relay messages between family members. Choose someone out of your area whose phone service is less likely to be disrupted, and give that person cell phone, office numbers, and email addresses for everyone in the family. Each family member should carry the communication commander’s contact info, too. Program it into your cell phone address book and label it “ICE”—in case of emergency. If you’re disabled, an emergency responder will search your phone for ICE contacts.
Even when some communications methods don’t work, others might. For instance, text messages can often be sent when other cell service is down; the government and private companies are currently working on a nationwide text-based Emergency Notification System. Here are some other technology workarounds that could help in an emergency or power outage:
Having a disaster plan does more than just keep your own family safe. It also serves your community. “When an individual is prepared to handle an emergency themselves, that alleviates a lot of the pressure on emergency response teams,” says FEMA’s Riedman, freeing up emergency workers to deliver help to those who need it most.
Wendy Paris is a New York-based writer whose work has appeared in This Old House magazine and other publications. She keeps chocolate chips on hand in case of emergency.
Read more: http://www.houselogic.com/articles/home-evacuation-plan/#ixzz1VlrqzQEc
Let’s face it — contemplating catastrophe can be stressful. Some people even feel like they’re courting a disaster by planning for one. That’s a natural response, but it’s not in your best interest as a homeowner.
“Denial is a pretty strong emotional mechanism for trying to put yourself at ease,” says Rick Bissell, Ph.D., a professor of emergency health services at the University of Maryland, Baltimore. But, he cautions, “if you deny that a crisis will ever occur, you won’t invest the time or energy in preparing to respond and protect yourself, and you’ll likely be out of luck.” Part of that preparation should include an evacuation and communication plan.
Think about escape routes in advance
It’s hard to think clearly when the floodwaters are rising. That’s why you need to plan how to safely exit your house now, not when you’re panicking during an actual emergency. The particulars of your plan will vary depending on what kind of house you have and whether you live in Tornado Alley or quake-prone Los Angeles, but here are some general guidelines:
- Have two ways to escape every room. Buy escape ladders for upstairs windows, then practice using them.
- Check with local and state officials for regional evacuation routes. Learn the safest way out of town, and keep maps handy.
- Designate a meeting place if family members are scattered. If the rendezvous point is your house, also pick a second location, such as an office or relative’s house, in case home is off-limits.
- Figure out how you’ll transport Fido; a house that’s unsafe for you is also hazardous for your pet. Some communities designate a Pet Protector, a person responsible for retrieving and/or caring for animals if owners can’t. The Humane Society is a good source of information on disaster planning for your pet.
- Obtain a copy of your office or school’s emergency plan. If one doesn’t exist, you could volunteer to create it, helping safeguard your family and your community.
Designate a “communication commander”
An emergency can knock out telephone and cell service, so it’s important to have a “communication commander” who can receive and relay messages between family members. Choose someone out of your area whose phone service is less likely to be disrupted, and give that person cell phone, office numbers, and email addresses for everyone in the family. Each family member should carry the communication commander’s contact info, too. Program it into your cell phone address book and label it “ICE”—in case of emergency. If you’re disabled, an emergency responder will search your phone for ICE contacts.
Use technology to stay in touch
Even when some communications methods don’t work, others might. For instance, text messages can often be sent when other cell service is down; the government and private companies are currently working on a nationwide text-based Emergency Notification System. Here are some other technology workarounds that could help in an emergency or power outage:
- Hook your Internet router to an uninterruptible power supply (UPS) to keep online service running long enough to send out emergency notifications. You can buy one for under $100 that will keep the computer running for about 15 minutes after the power goes out.
- Keep a corded phone at home. In a power outage, cordless handsets are useless. You can also buy a hand-crank or solar cell-phone charger, such as the Sidewinder crank from Gaiam or the Brunton Solaris portable solar panel.
- If you get separated from your family but have Internet access, you can let others know where you are with the Red Cross’s Safe and Well program. On the homepage of redcross.org, click the “List Yourself Here” button. “One of the staples at shelters now is providing computers so people can get online and let people know they’re okay,” says David Riedman, a public affairs officer with FEMA.
- Keep a battery-operated or hand-crank radio in your emergency preparedness kit to get news and instructions.
Having a disaster plan does more than just keep your own family safe. It also serves your community. “When an individual is prepared to handle an emergency themselves, that alleviates a lot of the pressure on emergency response teams,” says FEMA’s Riedman, freeing up emergency workers to deliver help to those who need it most.
Wendy Paris is a New York-based writer whose work has appeared in This Old House magazine and other publications. She keeps chocolate chips on hand in case of emergency.
Read more: http://www.houselogic.com/articles/home-evacuation-plan/#ixzz1VlrqzQEc
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