Homeowner's Insurance — What Are My Rights?

Homeowner’s insurance covers your home against other sorts of land reduction and damage from disasters. The extent of coverage you receive depends on which type of coverage you purchase. Federal and state laws provide you with legal entitlements and protections should you purchase any type of homeowner’s insurance coverage.

Premium Change Restrictions

If your house insurer finds an error in your premium calculations before 60 days has passed, you have the right to receive a written notice of this mistake and the new premium level. You can request the company to cancel the policy when the new premium level is unacceptable. The insurance company can’t raise your premium because of an error made by the company, the employees or an insurance agent if your policy has been effective for over two months, says the California Department of Insurance. The company could have the ability to cancel the coverage entirely if the superior error is important and would cause the company considerable financial loss.

Cancellation and Non-Renewal Notices

Your insurance provider has limited options available for canceling or refusing to renew your house insurance coverage after your policy has been effective for at least 60 weeks, the California Department of Insurance says. The cancellation allowance for insurers is limited to certain reasons, such as non-payment of premiums or fraud committed by the homeowner. You have the right to receive a notice of non-renewal in writing at least 45 days before your policy expires, and a notice of cancellation must be delivered to you in writing at least 10 days before the cancellation date. The insurer must state the reason.


You have the right to a refund of a part of the premium if you cancel your homeowner’s insurance. The kind of refund you receive is dependent upon the conditions specified in the cancellation part of your policy. A short speed calculation system is normally used if the homeowner accomplishes the policy, and the organization keeps a proportion of your premium to offset administrative costs. Some insurers calculate the refund on a pro rata basis, dividing the amount of days left on the coverage by the amount of coverage times and multiplying the result by the premium amount to reach a refund amount. The pro rata method of calculation must be used to ascertain your refund amount, In case your policy is canceled by the insurance company.

Right to Purchase Coverage

In some states, you have the right to buy homeowner’s insurance from your state’s insurance plan in case you’re denied by private companies. California and Texas, for instance, maintain”Fair Entry Insurance Plans (FAIR)” to help homeowners who can’t find coverage because of eligibility motives or require special coverage which is not available through private insurers, such as flood insurance. Some states require that you have proof of refusal of coverage from a particular number of companies, such as two or longer, before you’re allowed to receive a reasonable program.

See related


What Happens to My House When I File for Bankruptcy?

Bankruptcy is a federal procedure to remove or reduce most of your debts. Whether you get to retain your house in bankruptcy is dependent upon a number of factors, including how much equity is in your house, if you’re current on your payments and what the existing California homestead exemptions are for insolvency. The chapter of bankruptcy you record may also play a part in what happens to your property.

Type of Bankruptcy

The two chief types of customer bankruptcy are Chapter 7 and Chapter 13. A Chapter 7 bankruptcy is also known as a”liquidation” bankruptcy because almost all of your assets are liable to be remanded to the bankruptcy trustee on behalf of your creditors. A Chapter 13 bankruptcy is much more akin to a payment plan you workout with the bankruptcy court to pay back your debts over a three- to five-year period. If you’ve got a house of any substantial price and you file Chapter 7, then you’re liable to lose the home to the bankruptcy procedure. If you can afford a payment strategy as structured at a Chapter 13 bankruptcy, you will probably be able to maintain your property.


If you would like to maintain your house when you file bankruptcy, you have to file a reaffirmation agreement with the court. A reaffirmation agreement says that you consent to your current mortgage’s liability regardless. In other words, you merely keep making the payments on your home as though you had never filed for bankruptcy and also hold on to your property. A reaffirmation agreement is effective only if you’re current on your mortgage. You can not claim your mortgage debt after registering for a reaffirmation.

Equity in Home

If you have limited equity in your house, you may still file a Chapter 7, along with a reaffirmation agreement, and possibly keep your property. California allows you to exempt up to $75,000 of equity within your home if you’re single or $100,000 if you’re married, even at a Chapter 7 bankruptcy. If you’re submerged in your mortgage or have restricted equity, you might be able to exempt that equity at a Chapter 7 proceeding and reaffirm your mortgage.


The state where you file bankruptcy may play a huge part in the way your home is handled. While bankruptcy is a federal process, each state decides its own exemption amounts, and some countries are more generous than others. By way of example, while California’s homestead exemption runs up to $100,000 as of 2010, some countries may allow you to maintain a house of any value at a bankruptcy proceeding.


Especially if you’re submerged in your mortgage, then you may simply file Chapter 7 bankruptcy, stop making payments and walk away from the mortgage. That is true in most countries, including California. Assuming you qualify for bankruptcy, you will lose your home in this situation, however you’ll also no longer be responsible for the mortgage debt.

See related


How to Compare Real Estate Companies

When shopping for a real estate business, consumers frequently use businesses referred to them by friends or associates. There is a way to acquire additional information about those referrals. A nation’s real estate division licenses real estate businesses that do business within the country. By logging onto the nation’s real estate division site, you are able to access information regarding different businesses. Normal information listed might include actions and general public comments. Every state has its own site navigational system; therefore, that the process may vary from one state to another.

Use the State’s Department of Real Estate Website

Go on the Internet and log on to the Department of Real Estate site (at California). In other nations, the section may have a different name; for instance, in Florida it is the Department of Business and Professional Regulation.

Click the”License Status Check” box on the right side of the home page of the site. This applies specifically to the California Department of Real Estate site, yet other nations may have similar postoperative systems.

Scroll down the page which opens and click on the”Real Estate Agents and Salespersons” link.

Type the name of the real estate business and city in the form that opens and click”Find.”

Click the license amount to the left of the name of the real estate business. A brand new web page will start displaying information concerning the real estate business.

Note that the information listed on the website, like when the office has been established, the name of the designated broker, how many branches they have, and whether there are any public feedback or disciplinary actions. Repeat the previous actions to look up other offices, and compare the data between offices, focusing primarily on date based, public opinions and disciplinary actions.

Interview Offices by Telephone

Write down an inventory of the real estate offices you would like to compare, for example, phone numbers.

Prepare a list of questions to ask when calling every real estate office, including what geographical region the office functions, which kind of agency services it provides (like whether it primarily serves sellers or buyers ) and which type of property is its specialty.

Call every office and ask to speak to the dedicated broker or office manager. Interview the broker or office manager, requesting your listing of questions. Write the responses on your list beside every name.

Compare the responses and choose an office which most suits your requirements.

See related


Tax Strategies for Real Estate Agents

As a realtor, your gross profit is not salary. It is business earnings that must cover both your wages and your expenses. Handle it successfully using a sound tax plan. By maintaining cautious expense records, choosing a business structure that reduces taxation and personal accountability and claiming the entire selection of allowable deductions, you may enjoy substantial tax savings and web more from each hard-earned commission check.

Expense Records

File receipts for every single expenditure that might be deductible. Common things include local real estate board dues, license-renewal and broker classes, desk fees, car expenses, cell phone, advertising and advertising, mistakes and omissions insurance not paid by your broker, and the cost of business supplies and equipment not supplied by your broker.

Health Care Costs

If you are married and your partner carries employee-paid medical insurance for your loved ones, obtain it on your own instead. Provided that you offer it for yourself and don’t use a strategy provided through your broker, the premiums should be tax-deductible. Realtors can also deduct medical expenses and health savings account contributions.

Form an S Corporation

If you are like most real estate brokers, you file taxes as a sole proprietor pay a hefty self-employment taxation because of this. According to CPA Mark Kohler at”7 Tax Strategies Every Realtor Must Know!” An S corporation may lower your self-employment taxation by permitting you to”divide salary and dividends.” Additionally, an S corporation can shield personal assets one proprietorship leaves vulnerable.

Retirement Planning

During his live seminars, real estate career coach Brian Buffini strongly encourages agents to fully fund their retirement programs. Keoghs and SEP-IRAs are two retirement-plan choices. Speak with a tax pro to learn which kind is likely to benefit you most.

Home Office Deduction

The higher-than-average audit speed of people who claim a home office deduction leaves some real estate agents afraid to claim it. That’s unfortunate, as it is a legitimate deduction for self reliant agents, even those whose agents offer office space, that may reduce taxable income appreciably.

Section 179 Expensing

Business equipment, furniture and other things intended to be used for more than a year, including those purchased for a home office or for your personal use at an office or day desk your broker supplies, are depreciated over numerous years. However, U.S. Internal Revenue Code section 179 allows you to deduct the entire cost of these things in the tax year that you purchase them.

See related


Rules & Regulations on 2nd Mortgages

For some homeowners mortgages are a great deal. By borrowing against the equity in their own home –the value of this house less the dimensions of the mortgage–owners can take out money at lower prices than most other consumer loans. That makes second mortgages a good way to handle an emergency expense or to repay credit card debt. A second mortgage may be either a home equity loan or a home equity credit line (HELOC).


Federal law, including the Truth in Lending Act and the Home Equity Loan Consumer Protection Act, requires creditors to give anyone looking to take out a second mortgage with complete facts about the rates of interest, fees and closing costs and other expenses involved. Lenders must also show borrowers an annual percentage rate which translates the overall interest and fees –or using a HELOC, only the interest–into a predetermined interest rate, which makes it easier to compare the cost of different supplies. Before this loan is agreed to by them, borrowers are entitled to see this info. When the amounts have changed from the time of closure, they are entitled to back out and ask a refund of any application fees, according to the Federal Deposit Insurance Corp..


In addition to the very low rates of interest, another benefit of taking out a second mortgage is the interest on up to a $100,000 loan or HELOC is tax-deductible, the Investopedia website says. Some lenders will provide high-interest second mortgages for up to 125 percent of the borrower’s equity; in those cases, interest on the portion of the loan which isn’t secured by equity isn’t deductible. In case the proprietor has $60,000 in equity and also occupies $75,000, for example, interest on the extra $15,000 would not be deductible.


The lender can begin foreclosure as the first-mortgage holder may, if a homeowner defaults on a second mortgage. The bank’s interest is authorised to the first mortgage, the NOLO legal website says, so no matter who initiates the sale, the senior lender must be paid off first before a second- or third- mortgage lender receives any money. Junior creditors can sue in court if the foreclosure sale does not recover the money that they lent the homeowner. If a homeowner proposes a short sale–finding a purchaser with a better deal than the creditors could expect to get in a foreclosure auction purchase –all mortgage holders must agree to the sale.

See related


Guest Groups: Get Your Green Thumb on With Gardening Gear

You don’t have to have a huge backyard or special talent to enjoy the advantages of gardening. With the right accessories and tools, everybody can be successful at growing some thing of which to be pleased. Whether tending easy indoor herb pots, an air plant or a sprawling flower garden, you may be certain that you will look good doing it. — Erin from House of Earnest


Heirloom Seeds by The Tiny Ragamuffin

I love the idea of planting heirloom seeds for homegrown goodies all spring and summer. Lettuce is a quick-growing plant, and that means you won’t have to wait too long to enjoy the veggies of your own labor.

Arizona Pottery

Pot Filler – $13

Don’t make baskets thicker than they have to be. Use a mesh pot filler to the deep recesses of your strands so that it is possible to use less soil and keep them from weighing a ton.


Edging for Miniature Garden Terrarium by The Garden Barn – $8.99

I really like how pretty and understated this miniature edging is. I’d trim a romantic container garden with it.


Cast Stone Planter, Basil – $18

Cast stone planters appear wild and natural and would be great dispersed among landscaping.


Sunny Side Watering Can – $108

Who is day wouldn’t start off shining when using this yellow watering can? I love the bright poppy color, and a bonus is that you’ll have the ability to find it in a cluttered garage.


Castor Trowel – $58

I swoon over fairly details, and also this trowel is no exception. The natural wooden handle and aluminum details make it both beautiful and functional.


Gardener’s Pail – $49.95

Catch weeds or crop the first crops in this jute and canvas pail. It is pretty and durable, and it doesn’t have holes that let your goods fall through.

The Growers Exchange

Rustic Herb Garden Kit – $44.95

If you don’t have the lawn area, don’t fret! This (really amazing) indoor herb kit can keep your green feel satiated and your summer culinary creations fresh and fun.


Slate Garden Markers – $19.95

I really like garden markers — probably more than just gardening. Besides the typical plant tags, compose inspiring or hopeful words and phrases to keep your outside a happy location.


Smith & Hawken Premium Quality Potting Bench – $799

Acute about gardening? Take it to the next level using a potting workspace. I like that this has a lot of storage and a flip-out foliage and that it comes in fairly eucalyptus wood.

Brook Farm General Store

Bag of Clothes Pins – $20

Pin crawling vines into a trellis or indicate your seedlings with clothespins. They are perfect for outside gardening and have so many other applications that you will wonder why you did not buy more.

The Growers Exchange

Milk Bottle Vase – $29.95

Bring fresh blooms inside with this fairly milk jar collection. I’m presuming the bottles would be cute drink vessels for a celebration also — complete with striped straws, of course.

Arizona Pottery

Terra-Cotta Rose Pot – $6

I’m obsessed with terra-cotta rose strings. They are tall and narrow, which gives them a modern and pretty look. They are used for so many things aside from potting plants too: Envision them full of kitchen utensils or Easter basket goodies or olives.

The Container Store

French Hermetic Glass Terrines – $5.49

Whether you are a canning pro or just love a good presentation, these French jars are perfect for packing up your harvest.

Plow & Hearth

Handmade Talavera-Inspired Ceramic Globes – $39.95

Bring some color to the celebration with these magnificent ceramic globes. Nestled in greenery, they are the perfect punch of fairly for a more minimalist garden.

The Growers Exchange

Copper Plant Markers – $14.95

Somewhat skinnier compared to the slate versions, these aluminum plant markers would age and patina beautifully in an outside area.

Plow & Hearth

Garden Obelisk – $59.95

Give winding vines somewhere to climb, and create an wonderful outdoor atmosphere at the same moment. I really like that these metallic garden constructions are amazing with or without scaling plants.

Arizona Pottery

Black Clay Tron Cao – $69

I really like that black clay pots look like iron however, have a warmth that is so ideal in outdoor entertaining spaces. This specific style looks like hammered bronze and would look fabulous spilling over with greenery.


Letterpress Ferns Mini Card & Tags by Bears Eat Berries – $8

When your garden begins producing fruits or veggies, package them up and utilize them for gifting all fall and summer. All these darling letterpress gift tags and cards are an ideal accompaniment for a jar full of strawberry jam.


River Rock Stepping Stones – $29.95

Create a pathway in no time using premade river stone stepping stone. These not only include role, but also texture and dimension.

Next: How To Grow Your Own Sweet Summer Compounds

See related