Buying and Selling Real Estate in Destin FL

Florida Commercial Insurance Tips

Tue, 9 Mar 2010 23:05:04 +0000

Commercial Property Insurance: Consumer Information

The Information below is general commercial property insurance contract conditions and insurance policy formats. Though, may differ from one insurer to another depending on the individual company underwriting guidelines and policy forms as well as standards of policies adopted by the individual insurer. Refer to the following information and tips when shopping for commercial insurance protection. The contract conditions below state several policy conditions, minimum deductibles available, and the relationship obligations of the insurer and the insured.

The Commercial Property Insurance Contract

Contract Conditions:

Cancellation/Non-Renewal: The insurer is required to give 20 days notice of cancellation for cancellations within the first 90 days the policy is enforced. After the first 90 days, the insurer must give 45 days written notice of cancellation except for cancellation for nonpayment of premium, which is 10 days. The insurer must give at least 45 days written notice of non-renewal. The notice of non-renewal or cancellation must state the reason for cancellation or non-renewal unless the insurer is canceling for material misrepresentation or misstatement or failure to comply with the underwriting requirements of the insurer. The insurer is also required to get the insured 45 days advance notice of the renewal premium.

Changes: The commercial property policy may be changed by endorsement. The changes must be agreed to by the company. Endorsements are specific items/interests for insurance coverage that are incorporated in the policy; also known as scheduled items/risks.

Transfer: The insured may not transfer any rights or duties under the policy without the written consent of the insurer. Rights and duties may be transferred to one who has temporary legal custody of the property or to the legal representative in the event of the insured's death.

Concealment, Misrepresentation, Fraud: Coverage under the policy may be voided by the insurer if the insured materially misrepresents information or facts. Florida statute will only allow an insurer to avoid paying a claim when misrepresentation or concealment is involved if the misrepresentation or concealment are fraudulent or material which means the insurer would not have issued the policy or would not have issued the policy at the same premium or limit of insurance if the insurer knew about the increase in hazard concealed or misrepresented by the insured.

Control of Property: insurance policies will not pay for damage intentionally caused by the insured. The commercial property policy will provide coverage where another intentionally damages the property beyond the insured's direction or control. If the insured intentionally damages one property, losses to other properties not intentionally damage will be covered.

Liberalization: The commercial property policy contains a liberalization clause which states that if an insurer changes the policy form to broaden coverage and does not charge an additional premium for the broadened coverage, either before the start of the policy period (usually 45 days) or during the policy period, the insured will automatically (without additional premium) receive the broadened coverage on the new form. With the liberalization clause in the policy, the insurer does not have to cancel and rewrite policies to give the insured the broadened coverage. The liberalization clause only applies to broadened coverage. If the insurer restricts coverage in a new policy form, the insured will not be subject to the restricted coverage during the policy period.

Other Insurance: If more than one policy with the exact same coverage, terms, and conditions is written on the same property, the policies will prorate any claim payments. If more than one policy, with different coverage, terms, and conditions is written on the same property, the policy will be excess over the other policy whether collectible or not.

Policy Period, Territory: The policy covers property within United States, Puerto Rico and Canada. Losses, which commenced or started within the policy period. If a claim for windstorm is made, the windstorm or hurricane must begin before the expiration date shown on the policy. As long as the loss begins before the expiration date, the entire loss will be covered by the policy.

Subrogation: Subrogation is the insurer's right to collect damages on behalf of the insured from other parties who are responsible for the loss under the insurance policy. We previously discussed the principle of indemnity. The insurer should pay the insured or pay on their behalf without allowing the insured to "gain" on the loss. The subrogation clause allows the insurer to collect from an at fault party. If the insured were allowed to collect from both the insurer and the at fault party, he or she would certainly have gained from the loss. If an insured collects directly from an at fault party, the insurer will frequently refuse to pay any portion of the claim; the insured has violated the insurer's right to collect damages from other parties. The insured is granted permission under the commercial property policy to waive rights against others under certain conditions; such waiver must be in writing prior to the loss, except the waiver may be after the loss if the waiver is given to another insured, a related business firm, or a tenant of the insured.

Deductible: The standard deductible for a commercial property policy is $500 per occurrence for all perils other than hurricanes. For hurricanes, a separate minimum deductible of $500 or a maximum of 10% of the limit shown for coverage applies. The insurer must offer the insured the option of having the deductible apply either on a per event or an annual basis. Optional higher deductibles of $1,000, $5000, $10,000 or higher may be purchased.

Coverage Forms General:
Major commercial property coverage forms are:

Building and Personal Property Coverage form
Builder's Risk Coverage form
Business Income Coverage form
Extra Expense Coverage form
Legal Liability Coverage form
Glass Coverage form
Condominium Association Coverage form
Condominium Commercial Unit-Owners Coverage form
Leasehold Interest Coverage form

For Commercial Property Insurance companies, consultation and Commercial Insurance Agents in Florida Call Mike Henderson, REALTOR

Coastal Properties of NW Florida 850-259-7805 To Contact Reliable Commercial Insurance Agents/Agencies.

Destin FL Real Estate Insurance

Florida Home Owners Insurance- Buyer Tip..

Tue, 9 Mar 2010 23:05:04 +0000

General Rule of Thumb for Florida Home Owners Insurance is to expect an anual

Home Owners Policy premium to be roughly $1,000 per $100,000 home value for single family detached homes. For condo owners this number is not relevant as most Insurance Agencies in Florida require Insurance of a minimum of $5,000.00 coverage for the individual condo unit; of which can have varying premium charges depending on the Insurance company. Condo owners exterior building and premises are covered under the “Condominium Association Insurance Policy” that is included in the monthly unit assessment fees.

It’s important to keep insurance in mind throughout the home buying process. Most lenders won’t provide a mortgage without insurance coverage. Your insurance company - agent, and a professional realtor can help you get the home that you want and the proper Insurance to protect you against loss and damages to your home.

BEFORE YOU START LOOKING FOR A HOME

Put yourself in the best possible position for owning a coastal a home, get the lowest possi mortgage rate and Get Insurance

Check your credit rating

Good credit helps you in many ways, including getting a mortgage at a good rate. Depending on the state and the insurer it may also help you save money on your homeowners insurance. Get a copy of one or all of your credit reports. Make sure they are accurate and report any mistakes immediately. The credit report helps you see how your credit standing compares to others. If your credit is not as good as it should be, begin to improve it immediately.

Check your home insurance claims-filing history

Get a copy of your loss history report, such as a CLUE report from ChoicePoint or an A-PLUS report from ISO. This is a record of home insurance claims you have filed. If you have not filed any insurance claims in the past five years, you will not have a loss history report. The better your claim record, the less you may pay for insurance. A good claims record can also be important if you are selling the home you are currently living in. However, a past claim does not have to be a problem; the resulting repairs or improvements, if done properly, can make a property more attractive to buyers and insurers.

Renters insurance

I f you are currently renting, it’s important to have insurance for your personal property. Your landlord’s coverage will not cover the things you own. If you haven’t owned a home before, it might be helpful to have a history of insurance when you go to buy your first home.

HOUSE HUNTING

As you look at homes, remember that characteristics of the house (where it is,

how it's constructed and the kind of shape it’s in) can send your insurance rates up

up or down

Construction of the house

If you plan to live near the Atlantic or Gulf coasts, consider a concrete home because it is more resistant to hurricanes. If you are buying in a seismically active region, look for newer homes built to current codes, or older homes that have been bolted to their foundations. They are better able to withstand earthquakes.

Age of the house

Older homes sometimes have features such as plaster walls, ceiling molding and wooden floors that could be costly to replace. Such special features may raise the cost of insurance. Also, an older home that has been updated to comply with current building codes is typically less expensive to insure than an older home that is not up-to-date

Condition of roof and home

If you are considering a “fixer upper,” you may pay more for insurance until clear improvements are made. In particular, check out the condition of the roof. A new roof in good repair will be attractive to insurers and will save you money as well as aggravation

Plumbing, heating and electrical systems

These systems can wear out, become unsafe with age or become dated as safer technologies are introduced. Recent upgrades make your home safer and less likely to suffer fire or water damage.

Safety devices

Homes equipped with smoke, fire and burglar alarm systems that alert an outside service may get sizeable discounts. Strong doors, dead bolt locks and window locks may also reduce insurance costs.

Pool, wood burning stove, etc.

You will need higher property and liability coverage if you are buying a home with features such as a pool or a wood burning stove. In the case of a pool, consider getting additional coverage, such as an umbrella or excess liability policy.

Quality and proximity of the fire department

Homes near a fire station, those with a hydrant close by and those located in communities with a professional rather than volunteer fire department will cost less to insure.

Location, location, location

Homes near the coast will be more expensive to insure because the risk of hurricane, wind or water damage is greater. In many states, you will pay the first few thousand dollars in damage before your insurance kicks in. You also need to think about the threat of floods or earthquakes. You will need separate insurance for these risks and it can be costly. Also, around the country, there are high-risk areas vulnerable to hurricanes, brush fires or crime that might not qualify for private insurance. To make insurance available, there are state-sponsored Fair Access to Insurance Requirement (FAIR) Plans. FAIR Plans, however, can be expensive and provide less coverage.

Check the house’s loss history report

Ask the current homeowner for a copy of the house’s insurance loss history report. This will provide information regarding claims filed during the last five years and answer two questions that any savvy homebuyer should ask: Are there any past problems in the home? If damage has occurred, was it properly repaired? Prior claims are not barriers to getting insurance, but you should know the history of the home before you go to closing.

Get the house inspected

A thorough inspection of the home is very important. The inspector should: check the general condition of the home; show you where potential problems might develop; double-check that past problems have been repaired; and suggest upgrades or replacements that may be needed. If a house has been well-maintained, you should have no trouble getting insurance. However, if the inspector raises questions, your insurance company mayl as well. In particular, have the inspector check for water damage, termites and other types of infestation. Special attention should be paid to the electrical system, septic tank and water heater. Find out if there is an underground oil storage tank, as many insurers will not provide policies for homes that have one.

Contact your insurance professional

Don’t wait until the last minute to think about insurance. Ask your current insurance professional if the house will qualify for insurance and get an estimate of the premium. The sooner you act, the smoother the process will be. If you do not have an insurance agent or company representative, get recommendations from your REALTOR®, (Mike with Coastal Properties of NW Florida ), family, friends or co-workers. Select someone you know and trust, as he or she will be an advisor for many years.

Shop around for the best coverage

Most people spend months looking for a house, but only spend a few minutes insuring it. Insurance companies sell insurance in different ways – some through their own agents, others through independent agents or brokers and still others directly by phone or over the internet. Select the arrangement that you are most comfortable with. Get the names of several highly regarded insurers. The higher the financial rating, the better prepared they will be if a real disaster strikes. Then compare prices.

PURCHASING THE HOUSE AND INSURANCE

The Highest Deductible? The higher the deductible, the lower the premium. Most people only file a claim every eight to ten years, you will save money over time and preserve your insurance for when it’s really needed.

Ask about available discounts for:

Multipolicy (home, car, second homes, investment real estate or other policies with the same company)
Smoke detectors
Fire extinguishers
Sprinkler systems
Burglar and fire alarms that alert an outside service
Deadbolt locks and fire-safe window grates
55 years old and retired
Long-time policyholder
Upgrades to plumbing, heating and electrical systems
Earthquake retrofitting to make the home safer
Wind-resistant shutters

Get enough insurance to:

Completely rebuild the house in the event it is destroyed by fire or other insured disaster .
Replace everything in the house.
Protect your liability in case someone is injured on your property and decides to sue you

Ask about additional coverage such as:

Replacement cost for possessions
Extended or guaranteed replacement cost for the structure
Building code upgrades
Sewer and drain back-ups
Inflation-guard
Umbrella coverage for a pool or other high-risk items

Flood, Hurricane and Earthquake risk

Damage caused by flooding is not covered by standard homeowners insurance policies in Florida. Instead, homeowners will need an [additional policy] for coverage that is provided through the government’s National Flood Insurance Program (NFIP). To [have access to a flood insurance policy] your community must participate in the NFIP program. Policies for coastal properties in Florida have a separate deductible for hurricane risk/claims, which means the homeowner may be responsible for a higher percentage of the replacement cost or actual cash value to replace or repair damages. “Know how your policy protects your interest”. Earthquake insurance is offered by private insurance companies. In California, coverage is available through the California Earthquake Authority, a state program, as well as the private market. It may be more expensive and come with a high deductible.

AFTER YOU PURCHASE YOUR NEW HOME

Properly maintain the house – Usually a condition to Your Insurance Policy

Maintain your home as you would your car. Every year, there are important things you should do to reduce the chance that you will experience water damage, fire or other insured loss. Insurance does not pay for routine maintenance or damage resulting from neglect. The cost for proper care should be calculated into your overall budget. It’s your responsibility to be the “risk manager” for your home. If you do your part to reduce insurance losses, not only will your home be safer, it will also save you money on your insurance bill.

Under many Florida Insurance policies certain claims may not be paid by your Insurer if the property was vacant for 60 days or more days when the damage occurred. Make sure to ask your Insurance agent for more details regarding your policy coverage and conditions. “In other words make sure you are not paying a premium for a benefit that is not covered under the conditions of the policy” and make sure your policy covers your specific circumstances when maintaining a second home in Florida.

Keep insurance up-to-date

Let your insurer know about alterations, additions and improvements to your home. Major purchases and lifestyle changes such as a marriage or divorce should trigger a call to your insurance professional. This way, you can maximize your insurance dollars by not being either under- or over-insured.

Florida Home Owners and Florida Real Estate Buyers contact Mike Henderson, Coastal Properties of NW Florida, to make sure you are in contact with reputable Insurance Companies/Agencies to insure your property. Email Mike@30Acondosandhomes or Call Mike Direct 850-259-7805

ADDITIONAL RESOURCES:

ChoicePoint
www.choicepoint.com
To order a CLUE report, see www.choicetrust.com
Fair Isaac
www.fairisaac.com
To order a credit report, see www.myfico.com
For help with your credit score, call 800-777-2066
To order a credit report, see www.myfico.com
For help with your credit score, call 800-777-2066
Institute for Business & Home Safety
www.ibhs.org
Insurance Information Institute
www.iii.org or www.insurance.info
Insurance Information Network of California
www.iinc.org
Insurance Services Office
www.iso.com
To order a copy of your A-PLUS report, call 800-709-8842

Nation The National Flood Insurance Program www.fema.gov/nfip/

1031 Exchange/ Tax Deferred Exchange

Tue, 9 Mar 2010 23:05:04 +0000

Like Kind Property:

Properties are of like-kind, if they are of the same nature or character, even if they differ in grade or quality. Personal properties of a like class are like-kind properties. However, livestock of different sexes are not like-kind properties. Also, personal property used predominantly in the United States and personal property used predominantly outside the

United States are not like-kind properties.

Within 45 calendar days of the exchange property closing, the Exchangor must provide in writing a legal description of the replacement properties to the Qualified Intermediary. This is called the Identification Period.

Within the earlier of 180 days following the closing of the exchange property or due date including extensions for the Exchangor’s tax return for the taxable year the transfer of the replacement property occurs.

Two rules and One Exception apply:

1) Identify up to three properties without regard to their fair market value. (or)

2) Identify any number of properties as long as their aggregate fair market value of the replacement properties does not exceed 200 percent of the aggregate market value of all the relinquished properties.

Exception:

If the Exchangor identifies more potential replacement properties than allowed under either the three property or 200% rule, the Exchangor must receive replacement property by the end of the exchange period that has a fair market value of at least 95% of the aggregate fair market value of all the identified replacement properties.

The identified properties must be listed in a written document signed by the Exchangor and hand delivered, mailed, faxed, emailed by midnight of the 45th calendar day after the closing of the relinquished property including the legal description, street, statement itemizing construction/improvements of the replacement property

There are a wide array of exchange options available to meet various circumstances. The exchanges available include:

Delayed Exchanges
Reverse Exchanges
Non Safe Harbor Reverse Exchange
Build to Suit/Improvement Exchange
Simultaneous Exchange
Personal Property Exchange

Reverse Exchange:

Reverse Exchange is when the replacement property is closed before the relinquished property.

Title to the replacement property is held until the Exchangor can find a buyer for the relinquished property. An exchange accommodator titleholder is created as a sole purpose entity to hold the title. Once the relinquished property sale closes, the replacement property title is conveyed to the Exchangor.

For more information, other type and categories of the Internal Revenue code Section 1031 Exchange, or consult with a Qualified Intermediary in Destin, Florida and the Beaches of South Walton contact:

Andy Gustafson, Managing Partner

Old South 1031 Exchange

Phone: 850-837-3043

Toll Free: 800-977-1031

Cell: 850-496-0090

Email: andgus@oldsouthexchange.com

“Providing 1031 IRS Qualified Intermediary Services to Investment and Business Owners Nationwide”

www.irs.gov

Additional Resources

Publication 544, Sales and Other Dispositions of Assets
Form 8824, Like-Kind Exchanges (PDF)

www.irs.gov

How do I look for a Fixer Upper Property

Tue, 9 Mar 2010 23:05:04 +0000

How do I look for a Fixer Upper Property?

There are at least three ways to locate a home:

1. Drive around the neighbor hood that you like and research what’s available by Owner

2. Ask family members and friends if they know of anyone who is making changes in their lifestyle (generally these homes aren’t on the market)

3. Local realtor who have listings of homes on the market

Points to remember prior to viewing a home:

· Take time touring homes

· Leave your emotions out of buying a home (new or fixer upper)

· Allow your self "time" to plan, complete your cost estimate for remodeling and projected time line schedule for all subcontractors work to be completed.

· Decide if you are going to complete some of the work yourself and when this would be done. Weekends only will add more time to your completion date.

· Have a contractor friend to see the home with you and give you some pointers as to the condition and time line for work to be completed.

What you are looking for is called a "cosmetic improvement’ property.

The first step is to determine precisely how much work needs to be done at what cost. Look for properties with broken sidewalks, deteriorated lawns, overgrown shrubbery, or peeling paint on the house or trim. Keep in mind any properties built before 1978 may contain a lead based paint hazard (order inspection prior to closing, it can be costly to correct and you would want seller to pay for this.)

The cosmetic type improvements (permit not usually required) are easily done by you and your family or hire a high school student to help.

For example, Lynn, a single "senior" person couldn’t qualify for a new home and found a fixer upper that was built in 1966. She paid $189,000 (July, 2004) for 1450 square foot home with 2 bedrooms, 2 baths, living room/dining room combination, den, kitchen, laundry room and a 2 car garage with work shop area. The home also had a 32 x 16 ft swimming pool.

Lynn’s family helped her paint interior, exterior, added retro fit windows, landscaping pruned and added new shrubs with irrigation system, changed electrical light switch covers, added ceiling fans to all rooms, changed kitchen sink fixtures and hood and replaced all carpeting. Her total cost was $10,000 (windows cost $5,000 and flooring $2,700) and her appraisal was $244,000 one year later. Her electric bill was reduced by 20% by having the retro fit windows. She also had cash refund from the utilities for energy saving improvements $500.00.

How did Lynn know what to do? She used the checklist below:

Exterior - keep it neat and clean!

Landscaping: trim all shrubs, prune trees, plant new flowers, and add small shrubs and new mulch

· Suggest adding a fence to act as a screen and plant some type of flowering vine in front of screen

House exterior: paint the garage door and trim, install a new front door, new shutters, new exterior lights

· Suggest repairing and improving the driveway/sidewalks

Interior

· Wash all windows in and out

· Re-caulk windows

· Weather strip doors

· Clean all rooms: vacuuming and dusting

· Clean all appliances in/out and plumbing fixtures

· Paint all interior walls, ceilings and air conditioning vents

· Paint baseboards, doors and closets

· Paint kitchen cabinets (resurfacing- primer coat then paint)

· Add molding and new baseboards (current style)

· Wallpaper bathrooms and kitchen

· Update any tile in kitchen or bathrooms

· Install new bath tub/shower enclosures and fixtures

· Install new kitchen sink fixtures

· Install new interior door hardware

· Shampoo carpeting or replace areas that need changing

· Add ceiling fans to all rooms

· Update light fixtures and light switch covers

· Replace kitchen stove hood

· Replace refrigerator, dishwasher, with new (shop for sales) or repaint panels

· Remove any wood paneling (or paint)

A good thought to remember is that you can’t afford to overpay for the property!

· The actual costs of acquiring the property plus materials and services required to remodel the property are only a portion of the total costs.

· Cost should not exceed 80% of the property’s fair market value once the work is completed.

· Think of it this way, if you were to sell this property would you make a profit of at least $10,000 to $20,000? If not, don’t buy it!

How much should you spend for improvements? It’s easy to spend too much money fixing up a property.

· Average expense should be $2,000 or less for exterior and $3,000 or less for interior.

· Do you have the money available to fix up your property?

· If not could you borrow the money from a bank or use a credit card?

Suggestion: Lynn opened a Home Depot account that gave her 6 months to 1 year no interest, no payment if the amount is over $250.00 at any one time. This would be all items in your basket that totaled that amount, not one item. During the next 6 months or year after fixing her home she applied for a Home Equity Line of Credit with her bank. This loan was interest only. Her monthly payment was lower than Home Depot 19% at the end of the promotional program. .

Speaking of financing "how will you pay for your fixer-upper"?

· Money to buy fixer upper

· Additional dollars for repairs and improvements

You want one loan to provide both forms of financing so that you do not have to pay for a second closing. Some mortgages to consider include the FHA 203(k) program, Fannie Mae's HomeStyle loans, Freddie Mac's HomeWorks financing, and similar programs. If you now live in a home and need money for improvements, consider HUD's Title 1 program for loans up to $25,000, for details, speak with brokers and lenders.

Do you have an experienced Realtor?

You need someone with a history of buying and selling properties and the experience to help you avoid pitfalls. They will have the earliest access to MLS listings and even find houses that never make it to the MLS list. Brokers also have instant access to information from the public records foreclosure database.

· Some agents run blind advertisements looking for these types of distressed sellers

· They have an inventory of homes or know about them as a matter of daily business

· Save you time by pre-screening properties to make sure they meet your investment criteria

· Agents will interview you to determine your short-term and long-term goals, and assess whether or not your goals meet with what they see in the market.

· They will also evaluate the amount of money you have to invest, your plans for making repairs to the property.

· Your realtor should locate 3-4 homes for you to view and make appointments.

Once appointments are made take along your contractor friend to help you check any structural items and advise you if this is a good cosmetic fixer upper. By your contractor advising you and your realtor it’s easy for your agent to include the repairs as contingencies.

What should I look for in a Home Warrant..

Tue, 9 Mar 2010 23:05:04 +0000

What is a Seller’s Home Warranty?

A Home Warranty is different than your Home Owners Insurance. The seller generally will give the new owner this warranty in good faith. No one knows what will happen the first year and in selling the home the seller feels obligated. Your home warranty contract will be effective on the date of: time of inspection, walk-through, or disclosed on the Real Estate Transfer Disclosure Statement and receipt of payment.

Sellers pay for a basic warranty ($255 to $359) to cover any system or appliance malfunction due to normal usage, and was properly installed and operating safely and normally at the effective date of Sales Contract . You can upgrade and cover many other items (see example below). The additional cost will be added to your closing settlement statement as additional funds needed. It’s not uncommon to have the seller credit you for the basic warranty so you can shop for a better price and coverage with someone else. The EXAMPLE below will help you understand costs, coverage, not covered items and fees out-of-pocket. Wouldn’t it better to only spend a tradesman fee for services versus $500 or more for repairs?

Effective date: date of closing or payment Expiration date: 1 year

Coverage

Basic Home Warranty $255.00

Wall Air Conditioners x 1 $ 55.00

Deluxe Option $ 35.00

Pool/Spa Equipment $125.00

Washer/Dryer/Refrigerator $125.00

Warranty Total $595.00

The Home Warranty contract covers only systems specifically mentioned as being covered and which are located within the perimeter of the main foundation and garage

Here’s how it works! When you require service - telephone their Service Department at an “800 number”. Telephone service is available 24 hours a day. When you call with a service problem, Warranty Company will contact a tradesperson of their choice who, during normal working hours, will contact you directly to schedule an appointment. On weekends or holidays, the tradesperson will contact you within 48 hours. Additional efforts are made in situations deemed by Warranty Company to be an emergency. Notice of any malfunction must be given to Warranty Company prior to the expiration date of this Contract.

Home Warranty makes service simple! They have the sole right to provide Service. They will not reimburse for services performed without its prior approval. You can help speed service by making your home available during normal business hours (8 a.m – 5 p.m. Monday through Friday) and by having the following information available when you call: the brand, size and model number of the cover items; a description of the problem; your address and your telephone numbers

Trade Call Fee. For each Trade Call placed, a $40 Trade Call Fee is required to be paid (one fee per call per tradesperson). This trade Call Fee is due when service is performed and must be paid upon receipt of invoice. Suggest paying this by “check” and have tradesperson mark invoice paid and check number (paper trail and keeps everyone honest). Warranty Company will not respond to a new request for service under their Contract until all previously incurred fees are paid (that’s why you want to pay by check). All service work is guaranteed for 30 days, parts for 90 days. If during that 30 day period, precisely the same problem is experienced, no additional fee will be incurred.

S A M P L E BASIC CONTRACT COVERAGE

Note: “Not covered” items with underscore designate this item will be in your “deluxe option” package and will be covered for service

Heating System (Primary)

Covered: All essential working parts and components which affect the heating operation of the gas or electric units including heat pumps and ductwork. Wall thermostats replaced as needed with builder’s standard grade. You can pay the difference if you want to upgrade (need to discuss with Warranty Company as to your wishes).
Not Covered: Oil burning units, maintenance, cleaning, electronic air filters, humidifiers; fireplaces and key valves, baseboard casings, collapsed, crushed or moisture damaged ductwork, registers, grills, standard air filters, heat lamps .

Electrical System

Covered: Wiring, panels, breakers, fuses, switches, doorbell, and receptacles attached to main dwelling and garage, ceiling fans.
Not Covered: Light fixtures, alarms, intercoms, electronic controlled or low voltage relay systems; improper installation or prior repairs; missing parts. Doorbells that are part of the intercom system. Smoke detectors.

Telephone Wiring

Covered: Wiring used primarily for residential phone service located within the main foundation.

Plumbing System

1. Plumbing Pipes

Covered: Will repair leaks in water, waste, vent or gas pipes (including hose bibs) except if caused by freezing.
Not Covered: Fixtures, showers and shower pans, bathtubs, sinks. Gas log lighters. Septic systems including tanks and finding and/or accessing septic tanks for pumping. Water softeners, water discoloration, low or high water or gas pressure, adverse chemical reactions. Collapsed or broken lines located outside the main foundation. Noises, Leak detection/location. Shower head, shower arms, rust. Faucets (under the Deluxe Option: faucets replaced with chrome builder’s standard grade when necessary).

2. Water Heater

Covered: All essential working parts and components of gas or electric units.
Not Covered : Noises, solar systems, chemical build-up, sediments

3. Plumbing Stoppage

Covered: Will clear stoppages in drain, waste and vent lines which can be cleared with a standard sewer cable.

Not Covered: Stoppages caused by roots, or collapsed or broken lines outside the main foundation.

OPTIONAL COVERAGES

Central Air Conditioning System (Electric, Utilizing R22 Freon Only)

Covered: All essential working parts and components affecting the cooling operation of the unit which must provide air flow through central ductwork, including an evaporative cooler or built-in wall unit. Multi-speed compressors replaced as needed with single speed ones.

Not Covered: Maintenance, cleaning, collapsed, crushed or moisture damaged ductwork, insulation. Freon recovery or reclamation. Pads, inaccessible line sets. Gas air conditioning. Water cooled or geothermal units or systems. Pet or pest damage, noises. Conditions of rust, condenser housing. Filters, window units, (covered only if Deluxe Option is purchased along with the Central Air Conditioning System Option.)

Deluxe Option

Covered: All underlined items in the “NOT COVERED” sections of the Basic Contract Coverage, Optional Coverage and Terms of Coverage sections of the Contract.

Swimming Pool/Spa/ Whirlpool/Hot Tub Equipment (One set of equipment, permanently installed only)

Covered: All above ground and accessible essential working parts and components as follows: Pump, motor, filter, heater, timer, gaskets, blower, back flush valve, switches and relays: pool sweep motor and above ground and accessible plumbing and electrical.
Not Covered: Pool sweep and related equipment; structural defects, lights, ornamental fountains, cleaning or maintenance of equipment; pool cover and related equipment; remote control switches, computerized control boards; chlorinators, ionizers. Portable Spas. Conditions of rust (covered only if the Deluxe Option is purchased along with the Swimming Pool/Spa/Whirlpool/Hot Tub Equipment Options.)

Washer/Dryer/Kitchen Refrigerator including built-in icemaker.

Covered: All working parts and components, including dryer vent.
Not Covered: Touch pad assembly, plastic mini tubs, soap dispenser, filter or lint screens, knobs and dials, damage to clothing, ice crushers, beverage dispensers and their respective equipment, interior thermal shells, structural components, freezers which are not an integral part of the refrigerator, food spoilage, malodorous odors, noises, or cosmetic parts. Conditions of rust (covered only if the Deluxe Option is purchased along with the Washer/Dryer/Kitchen Refrigerator Option.

Septic Tank Plumbing

Covered: One time pumping of the tank only during the term of the contract, if necessary.
Not Covered: Tank, septic system or the cost of locating any accessing the tank for pumping or the costs of any chemical treatments.

Well Pump (Domestic, use, main dwelling only)

Covered: Well pump must have low water alarm or pressure drop switch to prevent pump damage due to lack of water.
Not Covered: All piping and electrical lines; well casing, re-drilling, holding, pressure, storage tank; cost of removal and reinstallation.

SELLER’S COVERAGE

Covered: Will provide Basic Contract Coverage during the listing and escrow period. Seller’s Coverage becomes effective upon Warranty Company receipt of the application, and continues for 90 days or to the close of escrow, whichever occurs first.
Not Covered: Pre-existing malfunctions are not covered. Warranty Company will pay a maximum of $500.00 during the Seller’s Coverage period for repairs or replacements of the furnace units. Seller’s Coverage is not available for multiple units. Additional Optional Coverage is not available with Seller’s Coverage.

Limited Roof Coverage (Limited roof lead repairs)

Covered: Will repair leak causing defects in the roof structure(s) of the covered property, provided such leak causing defects are located within the perimeter of the main foundation and garage and are the result of normal wear and deterioration. An actual water leak must occur and be report to Warranty Company, during the coverage period for coverage to apply und the contract. DURING THE COVERAGE PERIOD, WARRANTY COMPAY WILL PAY A MAXIMUM OF $1,000.00 FOR SUCH REPAIRS. Homeowner will pay a $50.00 Trade Call Fee for each service call for roof repairs.

Not Covered: Failure to perform normal periodic maintenance on the roof. Leak causing defects occurring prior to the start of the coverage period; gutters, drains; roof mounted installations including leaks around skylights and rooftop air conditions and coolers; leaks that occur in a deck or balcony when said deck or balcony serves as the roof of the structure below; missing or broken shingles or tiles; un-workmanlike construction, installation or prior repairs; persons walking or standing on the roof; storms, wind, and what are commonly known as acts of God. Those leaks caused by installations of awnings or located at windows and/or additions to the home or garage. Roofs beyond repair or needing a re-roof are not covered. In the event of a roof beyond repair the policy holder can request a refund of this premium.

Suggestion:

This Warranty really works in your favor – do not make a mistake and not invest in this additional protection. It will save you a lot of money and peace of mind if something happens your first year.

Understanding Your Credit

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Understanding Your Credit

Mortgage Funding Info

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Mortgage Funding Info

Credit Info

Tue, 9 Mar 2010 23:05:04 +0000

Credit Info

Fico Scores Effect Purchasing

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Fico Scores Effect Purchasing

Property Rights

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Property Rights

Real Property Definition

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Real Property Definition

Property Investment

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Property Investment

Property Trust(s)

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Property Trust(s)

Negotiating a Contract

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Negotiating a Contract

Real Estate Negotiation

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Real Estate Negotiation

Dont Let It Fall Through

Tue, 9 Mar 2010 23:05:04 +0000

Dont Let It Fall Through

Sell Your Home Fast

Tue, 9 Mar 2010 23:05:04 +0000

Sell Your Home Fast

Real Estate Tax Advice

Tue, 9 Mar 2010 23:05:04 +0000

Real Estate Tax Advice

Property Inspection

Tue, 9 Mar 2010 23:05:04 +0000

Property Inspection

Pick An Offer

Tue, 9 Mar 2010 23:05:04 +0000

Pick An Offer

Open House Expectations

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Open House Expectations

Your Open House

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Your Open House

Marketing Info

Tue, 9 Mar 2010 23:05:04 +0000

Marketing Info

Listing Real Estate

Tue, 9 Mar 2010 23:05:04 +0000

Listing Real Estate

Selling My Property

Tue, 9 Mar 2010 23:05:04 +0000

Selling My Property

Multiple Offers

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Multiple Offers

Getting Real Estate Ready

Tue, 9 Mar 2010 23:05:04 +0000

Getting Real Estate Ready

Real Estate List Price

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Real Estate List Price

Housing Market Info

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Housing Market Info

Pricing Your Property

Tue, 9 Mar 2010 23:05:04 +0000

Pricing Your Property

Property Appraisal

Tue, 9 Mar 2010 23:05:04 +0000

Property Appraisal

Real Estate Appraisal Info

Tue, 9 Mar 2010 23:05:04 +0000

Real Estate Appraisal Info

More Tax Advice

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More Tax Advice

Real Estate Agent

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Real Estate Agent

Real Estate FSBO Advice

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Real Estate FSBO Advice

Real Estate Appraisal

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You should look at each home for its individual characteristics. Generally, older homes may be in more established neighborhoods, offer more ambiance, and have lower property tax rates. People who buy older homes, however, shouldn't mind maintaining their home and making some repairs. Newer homes tend to use more modern architecture and systems, are usually easier to maintain, and may be more energy-efficient. People who buy new homes often don't want to worry initially about upkeep and repairs.

Only an appraiser can give a real home value, but one thing your real estate agent can help you with, is determining the 'sold' value of homes around the area. This is especially important when writing an offer!

Real Estate Tax Shelter(s)

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Real Estate Tax Shelter(s)

Real Estate Tax Benefits

Tue, 9 Mar 2010 23:05:04 +0000

Real Estate Tax Benefits

Loan Closing Advice

Tue, 9 Mar 2010 23:05:04 +0000

Loan Closing Advice

Escrow Advice

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Escrow Advice

Home Loans

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Home Loans

Closing Costs

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Closing Costs

Review A Closing

Tue, 9 Mar 2010 23:05:04 +0000

Review A Closing

Closing a Home

Tue, 9 Mar 2010 23:05:04 +0000

Closing a Home

After The Loan

Tue, 9 Mar 2010 23:05:04 +0000

After The Loan

Credit History

Tue, 9 Mar 2010 23:05:04 +0000

Credit History

Negotiating Tips

Tue, 9 Mar 2010 23:05:04 +0000

Negotiating Tips

Property Negotiation

Tue, 9 Mar 2010 23:05:04 +0000

Property Negotiation

Safety Inspection

Tue, 9 Mar 2010 23:05:04 +0000

Safety Inspection

Home Inspector Worksheet

Tue, 9 Mar 2010 23:05:04 +0000

Home Inspector Worksheet

Destin Florida Home Insurance

Tue, 9 Mar 2010 23:05:04 +0000

Destin Florida Home Insurance

Home Inspection

Tue, 9 Mar 2010 23:05:04 +0000

Home Inspection

Debt To Income Ratio

Tue, 9 Mar 2010 23:05:04 +0000

Debt To Income Ratio

Your Loan

Tue, 9 Mar 2010 23:05:04 +0000

Your Loan

Apply for a Mortgage

Tue, 9 Mar 2010 23:05:04 +0000

Apply for a Mortgage

Select a Mortgage

Tue, 9 Mar 2010 23:05:04 +0000

Select a Mortgage

Mortgage Alternatives

Tue, 9 Mar 2010 23:05:04 +0000

Mortgage Alternatives

Basic Mortgage

Tue, 9 Mar 2010 23:05:04 +0000

Basic Mortgage

Mortgage Loan

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Mortgage Loan

Effective Offer Writing

Tue, 9 Mar 2010 23:05:04 +0000

Effective Offer Writing

Mental Control

Tue, 9 Mar 2010 23:05:04 +0000

Mental Control

Comparison Shopping

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Comparison Shopping

Home Selection

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Home Selection

Home Hunt

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Home Hunt

Approval Letters

Tue, 9 Mar 2010 23:05:04 +0000

Approval Letters

Real Estate Ads

Tue, 9 Mar 2010 23:05:04 +0000

Real Estate Ads

House Search

Tue, 9 Mar 2010 23:05:04 +0000

House Search

Your Wish List

Tue, 9 Mar 2010 23:05:04 +0000

Your Wish List

Find your Dream

Tue, 9 Mar 2010 23:05:04 +0000

Find your Dream

A REALTOR Can Help

Tue, 9 Mar 2010 23:05:04 +0000

A REALTOR Can Help

Confidence and Experience

Tue, 9 Mar 2010 23:05:04 +0000

Confidence and Experience

Ownership Advice

Tue, 9 Mar 2010 23:05:04 +0000

Ownership Advice

Young Buyer

Tue, 9 Mar 2010 23:05:04 +0000

Young Buyer

Home Ownership: Are You Prepared?

Tue, 9 Mar 2010 23:05:04 +0000

Home Ownership: Are You Prepared?

Buying an Affordable Home

Tue, 9 Mar 2010 23:05:04 +0000

Buying an Affordable Home

How To get best deal buying a home

Tue, 9 Mar 2010 23:05:04 +0000

How To get best deal buying a home

Home Buying vs Renting Which is better?

Tue, 9 Mar 2010 23:05:04 +0000

Home Buying vs Renting Which is better?

Checklist for Home Buyers

Tue, 9 Mar 2010 23:05:04 +0000

Checklist for Home Buyers