Using Fine Print As A Means Of Non Payment
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Flood Insurance: Make sure you read the Fine Print!
There are three types of flood insurance that everyone needs to be aware of. While it is not limited to these definitions, these are what you find in most policies. There is the exception of some insurance companies not including any kind of flood insurance, so read carefully. Better yet, if you want to educate yourself about flood insurance, read on!
There are three types of flooding, namely flash flooding, river flooding and coastal flooding.
The most common type of flooding is flash flooding. This type of flooding occurs due to heavy rain fall in the situated area and swells up very quickly. However, it is also quick to disperse which is a good thing. The only problem is because the water comes up so quickly, it may not be possible for individuals to be evacuated from the prone area. Being the most common because flash flooding can occur anywhere, insurance for this kind of flooding should be found in your insurance policy and if not, consider taking it on.
The next type of flooding definition is river flooding. While this may seem self-explanatory, river flooding is cause by the overflowing of rivers. Unlike flash flooding which disappears quickly, river flooding can take days, even weeks to return to normal levels. A lot of insurance policies do not include this type of cover and it is up to you to find out if you are covered because this kind of flooding is likely to do the most damage. This issue should be pressed even further if you live near running water.
The final type of flooding is coastal flooding. This sort of flooding occurs around the coast line where cyclones are present and strong wind and storm activity. This is defiantly something to consider if you live along the beach or near sea water as the damage can be tremendous, and be caused in a very short period of time. It is almost guaranteed your insurance policy will not cover this unless taken out as an extra premium so please read up on your insurance company’s policy and make sure you are covered.
So, when you read your insurance policy and find out that you are covered for flooding, it is worth doing due diligence and finding out what kind of flooding you are covered for. Ring up your insurance company and find out. If they don’t offer the cover you are after, keep looking because when the crunch time comes, you can bet these companies will do everything they can to avoid paying out, thus rendering your insurance useless. Remember, read actively and use common sense!
Sport Bike Insurance
Check the Fine Print!
When you look at past statistics, it has been proven that sport bikes have been involved in more accidents than other types of bikes. What makes them more dangerous is that the power of their engine is much greater than normal bikes. This allows sports bikes to zoom along at over 195 mph, which can be extremely dangerous for riders who are very inexperienced. This is the main reason why the insurance premiums for sport bikes are generally more expensive than other types.
When you are shopping around for sport bike insurance, here is a list of a few tips and tricks that can save you a lot of hassles, and possibly even prevent you from paying too much for your premium.
1) If you have any performance enhancers installed on your sport bike( whether or not you installed them yourself), make sure these are clearly stated on your policy. If they aren’t, the bike insurance policy may not pay out if you are in an accident!
2) Modifications are fine, and sometimes exciting! However, if they can affect the bike’s legality in your country, you need to keep this in mind before you modify. As an example, in some countries, beginning riders have a restriction on the engine size. If you have broken any legal restrictions, the bike insurance provider could easily refuse to payout to your claim.
3) If you enjoy going extremely fast on your sport bike but want to do it legally on a special bike track, you need to make sure you know what your liabilities are in the event you have an accident while on there. Many bike insurance providers will not cover for any sort of damage and/injuries as a result of race track riding, unless it is specifically stated in your policy in non-ambiguous terms! There have been many sport bike enthusiasts that have been caught out by this and despite doing the right thing and not racing on the streets, their insurance company will not pay out for damages on the race track.
Hopefully this short article can give you a few things to think about when shopping around for sport bike insurance. By making sure you adhere to the policy as it states and not try to do anything dishonest by the insurance
providers, you will be safe from any hassles that come from making an insurance claim.
Reverse Mortgages – A Tax Free Income For Senior Citizens
I fully realize if it sounds too good to be true, it probably is and There Ain’t No Such Thing As A Free Lunch (TANSTAAFL) immediately jumped into your head when you read the title of this article. However, if you are 62 or over, you may have just found the goose that laid the golden egg. A reverse mortgage is exactly what the name implies. Rather than you paying a monthly sum of money to a mortgage company, a mortgage company pays you. There are three types of reverse mortgages and all have the same eligibility requirements. You must be at least 62, live in, and own, your home and sign a contract. You must also have equity in your home and the inherent interest rate is based on what the lender is currently charging (more about this later) on non-reverse mortgages. The lender, by the way, will also have your property appraised for which you may or may not be charged. There are no income restrictions such as those imposed by Social Security and most are tax free since they do not involve additional features such as an attached annuity. They also do not affect your social security benefits nor your Medicare entitlements. This article discusses only those mortgages without additional features. Should you wish to know more about reverse mortgages with additional features, consult with a competent tax professional to reduce the chances of running afoul of tax laws. The FTC’s website, http://www.ftc.gov/bcp/online/pubs/homes/rms.htm has an excellent article on reverse mortgages but it also does not discuss mortgages with additional features. Another reason to consult with a tax professional. This tool called reverse mortgage is actually a loan, hence an interest rate, which allows senior citizens, or as some say, the elderly, to convert part of their equity into cash without having to sell their home. Because it is a loan “in reverse” you are receiving a monthly sum and not paying a monthly amount while you live in your home. However, this loan must be repaid and repaid with interest should you sell, die, no longer live their as your principal residence or reach the end of the pre-selected loan period. You remain responsible to pay real estate taxes, insurance and all attendant maintenance expenses which, of course, you would have to pay with, or without, a reverse mortgage. With this explanation, the picture becomes more focused, right? You enjoy a monthly sum, tax free and non-repayable until a date sometime in the future, while remaining in your home. As close to a win-win situation as one can get in this day and age. It doesn’t take a rocket scientist to realize anyone who is cash poor but house rich should at least investigate this tool. However, like any other instrument involving your signature on the dotted line involving financial obligation, you must have some preliminary information. I mentioned there are three types of reverse mortgages. The first is the single purpose reverse mortgage. These are offered by some sate and local government agencies and nonprofit organizations. They may not be available in your area. Call your county’s Department of Senior Services. Their phone number is in the white pages under the listing for your county. Single purpose means exactly that. The proceeds may be used for only the purpose specified by the lender and generally are only made to people with low or moderate incomes. If you call your county, be sure to ask if their reverse mortgage is a single purpose and what are the limits. The second type of reverse mortgage is called a Home Equity Conversion Mortgage (HECM). The federal government insures these mortgages and they are backed by the Department of Housing and Urban Development (HUD). The up front costs are generally high especially if you plan on staying in your home for a short period of time but they carry no income or medical restrictions and can be used for any purpose. HECMs also require all applicants to meet with a counselor from an independent government approved housing counseling agency. The FTC says, “The counselor must explain the loan’s costs, financial implications, and alternatives. For example, counselors should tell you about government or nonprofit programs for which you may qualify, and any single-purpose or proprietary reverse mortgages available in your area.” An additional benefit of an HECM mortgage is the nursing home clause. Should a borrower have to move out of her home and into a nursing home or other medical facility, she has up to 12 months before the loan becomes due. This enhances financial planning. The third type is called a proprietary reverse mortgage. These are private loans backed by the companies offering them. In other words, they are NOT government insured. Like HECMs, the upfront cost could be high for a proprietary reverse mortgage. A reverse mortgage, cost wise, is like a non-reverse mortgage. The lender usually charges loan origination fees, closing costs, insurance premiums (for insured loans) and service fees which are all set by the lender. Fortunately, like non-reverse mortgages, the federal Truth In Lending Act (TILA) applies to reverse mortgages. This means the lender MUST disclose the costs and terms of the reverse mortgage you are considering. The annual percentage rate (APR) and payment terms must be prominently displayed and not in the fine print. If you choose a credit line as your loan, lenders must tell you the charges related to not only opening but using this credit account. Another word about the interest rate since it too mirrors the non-reverse mortgage. Just as with a non-reverse mortgage, an interest rate can be fixed or variable with variable rates tied to a financial index. This means the rate will change as the index changes. TILA forces the lender to disclose this information. TILA does not force the lender to tell you the reverse mortgage may, or may not, use up all of your equity. If a “non-recourse” clause is included in the contract, and most have them, you must be told you will not owe more than the value of your home when the loan is repaid. This is a good thing. Of the three, the HECM is the most flexible. It lets you select the way you receive your money. For example, you can receive fixed monthly cash advances for a specified period or for as long as you live in your home. Or, if you choose, you can receive a line of credit. A line of credit allows you to draw on the loan proceeds when you want and how much you want. The HECM allows a combination of the two choices. You can receive a monthly payment plus a line of credit. The key is to read and understand every clause in the contract before signing and do not be afraid to ask questions about what you don’t understand. Don’t let a huge monthly payment cloud your judgment and decision making ability.
About the Author
Hopefully you found this article helpful, it was provided by JVM Lending, the leader in
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