Understanding Your Homeowners’ Insurance



 

A homeowners insurance policy will protect you against certain losses and damage to your new home and is generally required by lenders prior to closing.  It is important to know what is covered and what is not.  All too often, it is only at the time a claim is filed that you discover that something you thought was covered is not.  

Typical Homeowners’ Coverage

 

• Your policy generally provides coverage for a sudden or accidental occurrence to your dwelling as well as attached and detached structures on your property. This includes damage to fixtures such as plumbing, electrical wiring, heating and permanently installed air-conditioning systems.
• Pays for damage to fences, tool sheds, freestanding garages, guest cottages and other structures not attached to your house.
• Reimburses you for the value of your possessions including furniture, electronics, appliances and clothing damaged or stolen even when they are not on your property.
• Pays for some of your additional living expenses while your home is being repaired and covers your financial loss if you are sued and found legally responsible for injuries or damages to someone else.
• Pays medical bills for people hurt on your property or possibly hurt by your pets.

What is typically NOT covered?

 

Claims related to dog bites, swimming pools or trampolines and operating a business from your home MAY NOT be covered. Common events you may be unaware of that your policy does not cover are identity theft, normal wear and tear, flooding, earthquakes, mudslides and sewer backups.

 

America’s sewer lines are aging and as more homes have been connected to these out-of-date lines, sewage backups have followed. Also, pipelines that handle both stormwater and raw sewage become overwhelmed in rainstorms or blockages from tree roots that work their way into sewer-line cracks can cause backups. Damage to floors, walls, furniture and electrical systems due to sewer backup are not covered. The Insurance Information Institute says sewer-backup damage often can be covered for an additional premium of just $40 to $50 per year.

 

According to The National Association of REALTORS®, policymakers in more than 22,000 communities nationwide rely on the National Flood Insurance Program (NFIP) to protect them from flood risks caused by torrential rain, swollen rivers and lakes, snow melt, failing infrastructure, storm surges and hurricanes. The NFIP expires on Sept 30th which could leave buyers unable to get a mortgage or protection from flooding as flood insurance is required for a mortgage in the 100-year floodplain. The National Association of REALTORS® is working with lawmakers to strengthen the program and also create a path for a private market to take hold ahead of the September 30 expiration date.

 

Limited Coverage Items

 

According to the Insurance Information Institute, jewelry, guns, electronics, collectibles, antiques and the costs of meeting updated electrical, fire, plumbing, building codes and mold may be limited. A breakout of mold on walls not only looks disgusting but also is a health risk that the Centers for Disease Control says can bring about symptoms similar to allergies or even breathing difficulties. A standard homeowners insurance policy generally either limits coverage for mold damage or outright excludes it.

Some insurers offer an endorsement to expand coverage limits for mold claims but only if you are willing to pay more for your insurance. The best cure for mold is to prevent it from growing in the first place, so eliminate the moisture promptly. The U.S. Environmental Protection Agency says homeowners generally can clean up mold themselves if the affected area is less than about 10 square feet. Otherwise, it is best to call in an expert.

Contact Three Rivers Association of REALTORS® for help finding an insurance agent in their affiliate directory that can help you with your insurance needs. Talk to your insurance agent about the property you want to protect and the hazards from which you would like to be insured. Your agent can review the coverage provided by your policy and discuss options specific to your situation. They will answer any important questions you may have.

 

Three Rivers Association of REALTORS® is a non-profit organization that services more than 1,000 REALTOR® and Affiliate members. Three Rivers Association of REALTORS® is affiliated with the Illinois REALTORS® and the National Association of REALTORS®, and works to provide our members with the tools and information they need to remain successful.  We also strive to keep our membership informed as to the latest developments that affect housing and the real estate industry in general. The Multiple Listing Service, education programs and an extensive political action program are just a few of the services that Three Rivers Association of REALTORS® provides for its members.

Why Should I work with a REALTOR®?

In the world of real estate, the words “REALTOR®” and “agent” are often used interchangeably. To some it might seem as though they are one in the same. However, choosing to work with an agent as opposed to a REALTOR® has several shortcomings that should not be overlooked in making this decision.

What is the difference?

Often these terms are used synonymously simply because people shorten phrase “real estate agent” and use REALTOR®, which they assume is a generic term. While both of these titles require the individual to be licensed with the Department of Professional Regulation, this is where the similarities end.

Real estate agent

A real estate agent is anyone who has a license to assist clients in the buying or selling of either commercial or residential property. This individual may perform this job as a sales representative, an associate real estate broker or a broker. To obtain a license, the agent must complete the required classroom training (typically between 30 and 90 hours) from an accredited real estate school and pass a state real estate examination that covers national, state and local real estate laws, standards and practices. In addition, an agent (as well as a REALTOR®) must pay a licensing fee as well as complete the required continuing education courses in order to renew his or her license every other year.

REALTOR®

REALTORS® aren’t just agents. They are professional members of the National Association of REALTORS® (NAR). In addition to completing all of the necessary requirements in order to sell real estate, a REALTOR® subscribes to a strict code of ethics which spells out specific practices and duties they must adhere to for the protection of their clients, customers and fellow REALTORS®. Real estate agents are not required to follow NAR’s Code of Ethics.

Working with a REALTOR® provides clients with peace-of-mind that they will be receiving both professional and ethical service during the home buying or selling process. All of the members of Three Rivers Association of REALTORS® are REALTORS® as well as members of the Illinois REALTORS® and National Association of REALTORS®.

10 Moving Tips from Three Rivers Association of REALTORS

As REALTORS®, we are often asked for homebuying and selling advice of all kinds, including on moving. Many clients worry about the amount of clutter they have to sift through before they move, or struggle with what they should do about the possessions they have accumulated over many years, or even decades. Moving can seem like a daunting task for many, so any tips we can share to ease our clients minds about the process, no matter how small, will help take the weight off their shoulders (and backs!).

1.    Breaking up a big move into stages helps the task become more manageable. The pros at Two Men and a Truck recommend decluttering the places where clutter tends to gather as soon as you decide to move: the attic, basement, and closets. After you have decluttered the home and gotten rid of as much possible, you can begin packing what you will take with you.

2.    Hold a rummage sale or sell items online that you don’t intend to take with you to help with moving costs. If you have friends or family helping with the move, offer them these items as a token of appreciation. Recycle and donate what’s left over.

3.    Pack a little bit each day. Start with the items you least often use (such as artwork and books) and gradually move packing to essentials like cleaning and personal care supplies just a day or two before the move.

4.    Label boxes not only with contents, but with what room they belong in. Avoid mixing items from different rooms in the same box.

5.    Number boxes so that you can easily check if all of them have made it to your new home.

6.    Make a separate box for vital documents and records (such as birth certificates and passports) and bring it to the new house with you instead of in the moving truck.

7.    Pack a small overnight bag for each family member so that you aren’t obligated to unpack entire boxes just to find a pair of pajamas, toothbrush, change of clothes, or child’s favorite stuffed animal at the end of a long moving day.

8.    Clothes, towels, blankets, and dish towels can be used as padding when packing dishes and other fragile items.

9.    Transport as little food as possible to save time and your arm muscles. Stop buying groceries a couple weeks before you move, and try to get through your existing supply. Donate items you can’t move to neighbors, family, or a local food pantry.

10.  But don’t forget snacks and drinks on moving day! Moving is hard work. Be sure to plan to keep the kids fed and hydrated, along with pets, on the big day.

Three Rivers Association of REALTORS® is a nonprofit professional organization located in Joliet, Illinois. We keep our members informed of housing market trends, the latest real estate industry news, and helpful tips that can improve your success in real estate. Please visit our website for more information, or call us Monday through Friday from 8-4:30 at (815) 744-4520.

Ready to buy a house, but need to boost your credit?

Thinking about applying for a mortgage? Need to work on your credit? No activity is guaranteed to improve your credit within a short timeframe, but there are quick, simple actions you can take to try for fast results.

Correct errors on your credit reports

Request free copies of your complete credit reports from the three major credit bureaus on the site annualcreditreport.com. Look for items that aren’t yours, balances that have been paid, items that have been reported multiple times, and other mistakes. Most credit report disputes must be resolved in 30 days. You can learn more about disputing errors on your credit report here.

Make strategic payments

Your payment history contributes the most to your credit score. Late payments generally stay on your credit report for seven years. To make all your payments on time, try putting all your bills on automatic payment. Pay any outstanding bills that haven’t been sent to collection first. Then pay off bills sent to collections. If the bill has been charged off, make sure you can pay it in full before paying on it at all. Otherwise, the clock starts ticking on the collections process again and the item will stay on your account for another seven years.

Decrease your credit utilization rate

Pay down balances so your credit utilization is less than 30 percent. You can also ask your credit card providers to increase the limits on the cards you own. If you have a good history of payments with your credit card, there’s a good chance they will negotiate. A request for a credit limit increase may result in a hard inquiry on your credit report, which can ding your credit scores, so use this strategy carefully.

Have someone with great credit add you as an authorized user to a card that they’ve had for a long time. Authorized users benefit from responsibly managed accounts because these accounts will be listed on the user’s credit report. Another idea is to open up a new credit card, which can  increase your total credit line and your utilization should improve. If you apply for a card every time you’re asked whether you want 10% off your purchase today, you’ll take a hit on the number of recent inquiries.

If you are within striking distance of a certain credit score needed to accomplish your goals, taking some or all of the steps listed above may help put you over the finish line. Learn more about purchasing a home and find a REALTOR® to help by visiting Three Rivers Association of REALTORS® website.

The Spring Selling Season May Be “NOW”!

If selling your home is in the plans for 2017, it may be in your best interest to start now. Normally, sellers tend to wait until spring to put their home on the market when it is believed that most buyers start looking for a home to purchase. With the current low inventory of homes available for sale, this housing market is anything but normal. It may be to your advantage to list your home right now. There are many unpredictable factors which can affect the real estate market whether it is interest rates, the general economic climate…even the weather. The one factor that is affecting it right now is inventory. Supply and demand is what drives the price of homes. With a good supply of homes for sale and steady demand, prices stabilize. When the supply is low and demand is high, as is the circumstance we face today, prices tend to rise. If you list your home now, chances are that there will be much less competition with similar homes for sale in the area than there will be in a couple of months. This also may mean getting top dollar for your home. Of course, as always condition and location will directly affect what the home eventually sells for.  Another factor in your favor is that more Americans are showing optimism toward their personal finances and the housing market, a reversal to a five-month decline. The National Association of REALTORS® web site reported that according to Fannie Mae’s Home Purchase Sentiment Index, a survey of 1,000 Americans in January about their attitudes toward housing, Americans are more upbeat about home prices, home selling, their rising household incomes and they are less scared about losing their jobs.

When considering the sale of your home, members of the Three Rivers Association of REALTORS® are here to help. Meet with your agent TODAY to discuss listing your home for sale. You can also find a REALTOR® by visiting the Three Rivers Association of Realtors web site…www.trarealtors.net.

2016 ILLINOIS HOUSING MARKET ENDS ON HIGH NOTE

Will and Grundy Counties report strong sales

According to statistics compiled by the Illinois REALTORS®, both home sales and median prices in the state of Illinois finished 2016 on an upward trend during a year marked by tight housing inventories and continued strong consumer demand. Statewide home sales totaled 162,380 up 3.9 percent from 156,239 reported in 2015. The year-end median price reached $184,000 compared to $173,000 the previous year. The median is a typical market price where half the homes sold for more and half sold for less. The average time it took to sell a home in Illinois in 2016 was 63 days down from 70 days in 2015. 

Will County recorded 10,631 closed sales last year which is up slightly over 10,583 sales in 2015. The median sales price in Will County went from $183,000 in 2015 to $199,654 last year which is an increase of 9.1 percent. Grundy County had 689 closed sales in 2016 versus 636 sales the previous year which is an 8.3 percent increase. The median sales price in Grundy County was $163,000 compared to $162,700 in 2015. Three Rivers Association of REALTORS® President Matt Persicketti said, “our members have been encouraged with the increase in market prices and decrease in market time. When a good house that is priced right goes on the market, it generally sells quickly. There is definitely a need for more houses to fill the demand.”

The National Association of Realtors reported that existing home sales closed out 2016 as the best year in a decade. Addressing the Illinois REALTORS® at their Public Policy meetings last week in East Peoria, the chief economist at realtor.com, Jonathan Smoke, said that low housing inventory is likely to have a significant impact on the 2017 housing market. In Illinois, year-end inventory dropped to 50,213 down 15.7 percent from 2015 and at the lowest level since 2008. Smoke said that there has been an uptick in new home construction which will add to the potential supply. He added other factors which should contribute to a healthy housing market include mortgage rates are still considered historically attractive and affordable, consumer confidence is at a 15-year high and credit access is improving.

The Three Rivers Association of REALTORS® represents over 900 members primarily in Will and Grundy Counties dedicated to professional and ethical service for their real estate clients. 

New Year, New Property Market

Are you thinking of buying or selling your home or asset, but don’t know if 2017 is an optimal time to do so? Between the uncertainty produced by the 2016 Presidential election and the high number of baby boomers and millennials projected to invest in the market, experts are expecting an interesting year. What does this mean for you?  

If you are attempting to make sense of the changes expected to occur in 2017, the Three Rivers Association of Realtors is here to help. Bearing this in mind, we would like to present some insight as to what the average buyer or seller can expect to experience next year.

·        Slow but steady wins the race: The real estate market is expected to remain steady through the upcoming year across the nation, but slight slowdowns are projected to occur with growth dropping by 1%.

·       Bigger is Not Always Better: Smaller homes have experienced a significant price rise in comparison to larger houses due to the lifestyle changes that many are experiencing. Millennials are moving out and babyboomers are newly empty nested parents are downsizing. Urban areas are also appreciating quickly

·      
        It’s all Good: In general, markets are currently doing very well and interest rates remain lower than average. Expert Rick Sharga estimates that Trump’s presidency will provide some credit relief to the average home buyer, consequently making it more readily available to home buyers.

·       Making Room for the New: Not only is millennial home buying expected to increase but experts are already beginning to think about generation Z (born 1995-2012). Although this generation will primarily consist of teenagers in 2017, it is foreseen that they will begin saturating the market within the next several years.

The trends of 2017 have a plethora of implications for a new direction in the real estate market and for our economy in general. Whether buying or selling, the Three Rivers Association of Realtors will ensure that you are never left in the dark, and we are here to assist you in making the most out of your housing experience. Visit our website today for more helpful tips and information.