Hail Insurance Information

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If you live in the Omaha metro region, then you were most likely startled on Tuesday evening as a powerful storm brought golf-ball sized hail that pounded trees, cars and homes. As the storm passed and the light of the next morning showed the damage, many people’s thoughts turned to what their next steps will be. The Mortgage Doctor recently spoke with Justin Miller of American National Insurance to discuss how you should handle the recent storm’s effects on property.

Assess the Damage

The first thing you should do after you suspect there may be wind or hail storm to your property is find out if there is any damage and, if you suspect there to be damage, then you will need to assess the extensiveness of the damage. The initial signs of roof damage could include a collection of sand or other debris at the bottom of your gutter or if there are shingles scattered on your yard or in your driveway. The next thing you can do is find out if your neighbors are bringing roof inspectors or insurance agents to assess the damage on their roofs. If they are, then it is a good idea to contact someone to inspect your property. Most insurance companies will let an adjuster come out to inspect your property for free to see if you will need to file a claim.

Call Your Agent, NOT the Company

When contacting your insurance company to get an assessment on the damage of your property, it is important to contact your individual agent and not the company. If you just call the company, then it is possible that this contact could show up as a claim before you know if you will need one. If you contact your agent, then they can find out if there is damage to the property and if you will need to file a claim.

Homeowners Insurance Deductible

It is very important that you know what your homeowners insurance deductible is. There are a few options. Your deductible could be a flat deductible or a percentage deductible. If it is a percentage deductible, then it is likely to change from year to year. You may have a different priced deductible for fire damage then you do for wind or hail damage. Before proceeding with any repairs, it is important to know what your deductible will be and then you continue onward.

Actual Cash Value for Roof Replacement

Insurance companies treat claims for roof replacement the same way that they would a car. If you have a car that is a 2004 model and you get in an accident, then the amount of money you will receive damages based on the current value of the vehicle, not the initial value. It is the same with your roof. If you have a roof with 30 year shingles and it is 15 years old, you may only get 50 percent of the value of the roof after you pay the deductible and tear off cost.

Get Everything Your Insurance Company Offers You

You may be missing discounts from your insurance company if you have not informed them on any recent renovations you have made to your home. One of the biggest discounts you can receive is if you have replaced your roof in the last five years. If so, make sure to notify your insurance company. By replacing your roof, you can receive one of the biggest discounts you possibly can for your homeowners insurance and yearly premium.

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If you are in an area that recently received heavy hail and would like to have an assessment of the damage to your property, then contact your insurance agent right away. It is beneficial to have an experience insurance agent on your side that could save you hundreds of dollars. If you have any questions regarding insurance or any mortgage questions, feel free to contact the Mortgage Doctor at (402) 301-4500. Thanks!

Financial Reasons to Buy a Home NOW!

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Taken from http://www.kcmblog.com/2013/03/26/3-financial-reasons-to-buy-a-home-now-part-ii/

This week, we are going to look at the three financial reasons to buy a home now instead of waiting: prices are rising at an accelerated rate, interest rates are increasing and rents are skyrocketing. – The KCM Crew

Interest Rates Are Increasing

A big component in the cost of a home is the mortgage interest rate a purchaser pays. Understanding where rates are headed will help in making a decision whether to buy now or wait.

So, Where Are Rates Headed?

No one can know for sure. The Fed has been artificially holding rates down to stimulate the economy. However, as the economy improves, many experts expect rates to creep up. As an example, HSH Associates, the nation’s largest publisher of mortgage and consumer loan information, recently explained:

“The stronger the economy becomes, the higher rates may grind; the Federal Reserve is keeping them low to goose the economy, but an economy responding to the Fed’s medicine will soon see less of a need for it in order to function. If not otherwise manipulated, higher rates are the natural result of a growing economy, as rising demand for available credit supply and concerns about inflation allow costs to rise.”

The Mortgage Bankers Association (MBA) agrees. They were quoted in HousingWire late last year regarding their thoughts on where rates would be headed in 2013.

“After reaching record lows in 2012, mortgage rates are expected to creep up slowly in 2013, the Mortgage Bankers Association predicted.”

In the MBA’s latest Mortgage Finance Forecast they forecast that the 30 year interest rate will be 4.3% by the end of the year. This represents an increase of almost a full percentage point from the 3.4% rate available at the end of 2012.

For example, we show the impact a one percent increase in rate will have on the monthly principal and interest payment on a $200,000 mortgage.

Freddie Mac’s Weekly Primary Mortgage Market Survey reveals that rates have increased by 2/10ths of a percentage point already this year.

As we mentioned, no one knows for sure where rates will be a year from now. But, many experts think they may be as much as a point higher. With rising residential real estate prices and the possibility of higher mortgage rates, waiting to buy a home makes no sense in our opinion.

Real Estate Is Heading Back to Its Better Days In Omaha and Other Areas

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After the housing bubble burst in 2007, there was no telling how long it would collectively take the nation to bounce back – much less the Greater Omaha area. After several years of difficult times, including countless foreclosures, short sales, bankruptcies and setbacks to our economy, we can finally say that it’s time to move on – literally.

Home Prices Expected to Rise Annually for the Next Five Years

More and more consumers are reaping the benefits of a stronger economy and it is apparent in the very strong numbers showing up on the newest Fiserv Case-Shiller Price Index. Across the board in the country in many markets, including our local marketplace, homeowners are enjoying increased values. What’s more, the Fiserve Case-Shiller index cites potential increases to the tune of more than 3% annually moving forward through the next five years.

Taking a close look at the relatively recent past of our housing market, we saw an increasing inflated bubble from the late 1990s to 2006, at the height of the market’s boom. But it didn’t take long for the harsh impact of our real estate crisis to hit home, with prices plummeting almost 40% to as late as September last year.

Recovery On the Horizon in Many Major Metro Areas Across the Nation

Sometime in the fall of 2011 we started to see some improvement, more so in some areas than others. Among those once hardest hit areas that have come back with a bang from September 2011 to 2012 are Detroit, San Jose, California and the strongest comeback metro area, Phoenix with a 21% increase in prices during that time.

The news isn’t all that good in some regions where foreclosures are still a concern and the housing market has a long ways to go before calling it a recovery. Prices declined in Long Island at just over 8%, two cities in Georgia also faced a continued downturn on home values. In each there was a significant increase in the number of foreclosure filings.

Homes Prices Increase Predicted As High As Ten Percent

Moving forward, Fiserv Case-Shiller predicts more of the same that we have been seeing in Omaha in other parts of the country, with a rise in prices as high as ten percent.

What does this mean to residents of Omaha? It means that as prospective buyer, now is definitely the time to get in before prices go further up. Interest rates are still phenomenally low and FHA has not implemented the new changes to take place in early June of this year.
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For a comprehensive look at your options, contact the Mortgage Doctor today! You’ll be on your way to making your real state dreams come true!