Deal of the Century – Is it still a good time to puchase a home?

Deal of the century  (click for a printer-friendly version of this article)

The Deal of the Century?? | Simplifying The Market

Recently, Freddie Mac published a blog post titled Mortgage Rates: Still the Deal of the Century. They explained that, if you are planning to purchase a home, now may be the time:

“If you are in the market to buy a home, today’s average mortgage rates are something to celebrate compared to almost any year since 1971.”

And they let their readers know that there is no guarantee that rates will remain this low:

“Over the past few years, we’ve enjoyed a long run of historically low mortgage rates. While no one expects them to change dramatically overnight, they are expected to head up. Most experts agree that mortgage rates will drift up in the coming months to end the year approaching 4.50%… Buying a home is a big investment – perhaps the biggest one you’ll make in your life. So, it’s important to be sure you are ready to make that purchase. If you are ready, today’s rates are not to be missed.”

The article went on to calculate what the principal and interest payment would be based on a $200,000 fully amortizing mortgage at different times in history.

Mortgage Payments | Simplifying The Market

Here is a look at rates over the decades:

Historic Mortgage Rates | Simplifying The Market

Here is a look at rates over the last four years and what Freddie Mac projects for next year:

30 Year Fixed Rate Mortgage Rates | Simplifying The Market

Bottom Line

If you are thinking of buying your first home or looking to move up to your dream home, now may be the time to do it.

Contact me today for an appointment to discuss your home ownership investment!

Tori Denton, REALTOR®

413.301.4614

Condominium Insurance 101 – Part 2 – The Basics

What is Condominium Insurance?

If you are considering condominium living you should schedule an appointment with a qualified insurance carrier prior to taking ownership of your condominium. Following are some basic sections you will find in a condominium insurance policy.

419 Southwick Rd Unit M56, Westfield, MA 01085 Condo for sale - MLS #71809936The Basics

As a condo owner, one’s insurance needs are different than one who owns a home. The reason is because condominium master insurance coverage in Massachusetts, purchased by the condo association, covers the unit’s building, the common areas, and the condo association’s liability.

The master condo insurance policy in Massachusetts, however, does not cover the unit owner’s personal belongings in the condo that is damaged by vandalism, theft or fire. The master policy, also, does not cover the unit owner’s personal liability in the event of a lawsuit.

The Coverage Parts

A typical Condo Insurance policy has a few different sections of coverage. Most likely, one’s policy would include the following coverage parts:

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  1. Coverage A – The Dwelling

This part of coverage provides a standard $5,000 of coverage for building items such as additions, alterations or improvements to the unit. This amount can be increased for an additional premium.

  1. Coverage C – Unscheduled Personal Property

This part of coverage pays for damage to personal property of the insured arising from a covered peril.

  1. Coverage D – Loss of Use

This coverage part pays an insured if the insured incurs additional living expenses, beyond normal living expenses, while living at another location if the residence premises is unavailable due to a covered peril. It includes additional living expenses as well as fair rental value.

https://i0.wp.com/thumb7.shutterstock.com/display_pic_with_logo/602218/602218,1304146059,5/stock-vector-insurance-of-all-kinds-retro-ad-art-banner-76365538.jpgSection II

  1. Coverage E – Personal Liability Coverage

This coverage part protects an insured if a legal suit is brought against him or her as a result of legal responsibility for bodily injury or property damage to others. This will protect an insured if another person is injured on or off any insured location.

  1. Coverage F – Medical Payments to Others Coverage

This coverage part will provide payment of medical expenses for someone that has undergone bodily injury as a result of the personal activities of any insured or as a result of the insured location. Limits do apply to the extent of the medical expenses covered. This coverage applies only to a person on the insured premises with the permission of the insured and a person off the insured premises if the injury is caused by the personal (non-business) activities of the insured. This coverage part also covers against injury caused by an animal owned by the insured.

Other Important Notes

There are other endorsements and additional coverages that can be added to a Condo policy by the insured. Each should be reviewed and discussed with your qualified insurance agent.

Check back for the final in this 3 part series – Condominium Insurance 101 – Condominium Master Insurance defined….

Interested in Condo Living – Contact me today!

Tori Denton, REALTOR®

413.301.4614

Condominium Insurance 101 – Part 3 – Master Insurance

What is Master Condo Insurance?

A Master Condo Insurance policy is needed by any Condominium Trust or Condominium Association in order to cover the building(s) and the liability of the Condo Association or Trust. A Condominium Association or Trust’s bylaws will dictate the levels of coverage and any extra coverages that are required to be on the policy.

The Basics Of A Master Condo Insurance Policy

Below are a list of some coverage’s that are available on most master condo insurance policies and a brief description of what they cover. This is for information purposes only. All, some, or none of these coverage’s may be on your current policy. If you have a question about your current policy please call the agency.

  • Liability Coverage – This is the amount of liability coverage that a condo association or trust is insured for. Typically, this limit is a split limit of 1 million I 2 million, but, can be increased. The split limit means that the insurance company will payout a maximum of 1 million per occurrence and a maximum of 2 million in any given policy term.
  • Building Coverage – This is the coverage that is placed on the condo building. This is the maximum amount that the insurance company will payout for any property loss to the building. For example, if your building is insured at 500K and it was to burn down, the maximum amount the insurance company would payout, if they paid the claim, would be 500K.
  • Deductible – The deductibles typically available on a master condo policy are $500, $1000, $2500, $5000, and $10000. The higher your deductible is the lower the cost of the insurance policy.
  • Wind/Hurricane Deductible – Sometimes if a condo is in close proximity to the water a company will add a separate deductible onto the policy. This is usually in the form of a percentage. For example, you may have a 1 %, 2%, 5%, 10% or more wind/hurricane deductible on your policy. A hurricane deductible will apply only if a loss occurs due to a named hurricane. A wind deductible will apply in the event that a loss occurs due to wind, regardless of it being a hurricane or not. For example, if you have a 2% hurricane or wind deductible on your policy and your coverage A limit on the building is $800,000; the deductible would be $16,000 (2% of $800,000).
  • Ordinance & Law Coverage – Ordinance & Law coverage is to protect your building against changes in codes, laws and ordinances in the town or city where you live. In the event of a loss, there could be things that need to be upgraded to conform to the codes or laws of the city and having coverage for those issues is dependent on having ordinance and law coverage on the policy. Especially for older buildings, this coverage can be very important to have.

This coverage is split into three parts:

  1. Loss to Undamaged Portion of Building
  2. Demolition Cost
  3. Increased Cost of Construction
  • Employee Dishonesty (Fidelity Coverage) – This coverage protects the condo association from an employee or trustee from embezzling funds from the condo association. This is included on most master condo policies and is required by many master condo docs.
  • Directors & Officers Coverage – This coverage helps to protect the trustee’s of a condo association from being sued. This is available on most policies for an additional premium.
  • Flood Coverage – Flood coverage is not typically covered on a master condo policy. In most cases the condo association or trust must purchase a separate flood insurance policy to have this coverage.
  • “All-In” Coverage Endorsement – This means that if there were a property loss and the entire building needed to be re~built the insurance company would re-build the inside walls and fixtures of the condo. Without this endorsement the coverage is generally subject to the bylaws set forth by each individual condo association or trust. This endorsement is only available on some policies, not all companies offer this. For more information regarding this particular endorsement please contact us directly.
  • Earthquake Coverage – This coverage will cover damage to your building in the event of an earthquake.
  • Back Up of Sewer or Drains, or Sump Overflow – This coverage will pay for the loss or damage to building caused by or resulting from:A. Water which backs up through sewers or drains;
    B. Water below the surface of the ground including water that exerts pressure on or flows, seeps, or leaks into a building, foundation or other opening.

Cheap Business Owner Insurance

Whether you live in an apartment, single family house, or Condominium – be sure you are covered.

Interested in BUYING or SELLING your home or Condominium???

Contact me today to schedule an appointment!

Interested in Condo Living – Contact me today!

Tori Denton, REALTOR®

413.301.4614

Condominium Insurance 101

Condominium Insurance

One of the benefits of condominium living is that you can enjoy the financial benefits of owning your own home without the time or expense of home maintenance. However, the benefits of belonging to a condo association don’t take away all responsibility if disaster strikes. Although your condo may be covered by master insurance, you should strongly consider purchasing your own condo insurance policy to make sure you are covered in all situations.

Facts

Part of your homeowner’s association dues goes to pay for insurance on your condo complex. If the building burns down, or the roof blows away in a hurricane, you should be covered by your condo’s master insurance policy. Additionally, the master insurance policy will usually carry specialized insurance, such as flood or earthquake insurance. However, this policy won’t cover anything inside your individual unit, so you should consider separate condo insurance to insure your belongings.

78 Granville Road Unit 27, Westfield, MA 01085 Condo for sale - MLS #71485855Function

Master insurance generally covers the exterior structures of all condo buildings as well as common areas such as pools, tennis courts or common rooms. In the event of a disaster, your condo complex’s insurance will repair these areas, but will do nothing to restore your unit. You are responsible for replacing items such as wallpaper and carpeting. Whether you own or rent your space, you will need to purchase separate insurance to cover your possessions.

Benefits

Unlike homeowner’s insurance, your complex’s master policy automatically covers you for damage to the exterior of your home at no charge to you. Regardless of the nature of the disaster, your home will be rebuilt and you won’t have to pay anything, including insurance premiums. Additionally, master policies include liability insurance that covers claims against injuries in common areas such as hallways or elevators, so you won’t be liable if guests are injured in those areas.

Considerations

Personal items in your condo should be insured for total replacement cost, rather than actual cash value. Replacement cost will reimburse you for the expense of replacing your valuables at today’s cost, rather than what they are worth after depreciation. This insurance is more expensive, but is often worth the cost. As an example, consider what your ten year old TV is worth as opposed to a brand-new Plasma high-definition version.

Warning

Be sure to include liability coverage in your condo insurance. If a guest falls down inside your home, or if your birthday cake burns the building down, you could be sued. Liability insurance ensures that your insurer will make the payments instead of you. Beware of using condo insurance to cover small claims. Each claim will raise your premium, and multiple claims will cause your insurer to drop you altogether. Consider paying small claims out of pocket, rather than notifying your insurance company.

Check back for Parts 2 and 3 of Condominium Insurance 101

– The Basics and

–Condominium Master Insurance

Want to know more about Condominium Living – Contact me today!

Tori Denton, REALTOR®

413.301.4614

The end of the road but not the journey…

It has been a great journey for me with this home seller.

A great day for a closing!
A great day for a closing!

Congratulations! on the sale of your home Ted! Now you can retire in style!

Some people become emotionally attached to properties… I become emotionally attached to my clients…. Not only did I make a life-long friend in Mary – Her dad has a huge piece of my heart too! Selling your home is not all about dollars and cents… some days it’s a roller coaster ride and that’s where I come in …

I make sense out of the all the nonsense so you don’t have to ….

I talk to 1 of a hundred different people on any given day – so you don’t have to…

What a great profession – I get paid to love on people, solve their problems, make their dreams come true… then celebrate with them afterwards…. God is good!

On to the next great adventure!

20150402_181443

SOLD!

Contact me today to plan an effective strategy for your home investment future!

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