Partial Payments – Advances. Partial payments and advances are not an obligation of you home insurance company. The practice of advance payment is an industry standard, but is not necessarily a service your insurance company must provide.

Most insurance companies will advance payment for living expenses and emergency repairs before you are able to obtain receipts. Remember that any advance payment or partial payment will be deducted form your final settlement.

Your Mortgage Company Is On The Check

Most homeowners have a mortgage on their home. All of the standard homeowner’s policies contain a mortgage clause that requires the insurance company to name the mortgage holder on payment drafts. The reason for the clause is simply to protect the mortgagee’s interest in the property.

An individual or firm holding a mortgage on a piece of property has a vested interested in seeing that the property is secure and kept in god repair.

When a mortgage company is named as a payee on a settlement draft or check, problems can arise because the mortgage company can choose to hold on to all of the funds until the repairs are completed. This can be hard on you, especially if you are dealing with a contractor who is not financially solvent enough to completely the work before getting paid.

Also, it is essential that you keep your mortgage payments up to date. If you don’t, it may give the mortgage company justification either to call your loan in or to take the proceeds of the settlement and apply them toward your mortgage. If the amount of your rebuilding settlement is greater than the amount of your mortgage, the mortgage company should release the difference to you. The mortgage company generally has no legal basis for holding more than you owe.

Keep in mind that if you have hired a top quality restoration contractor to do you loss rebuild or repair, he/she will generally completed the work before expecting payment form the insurance company for their services. This take the financially load off of you, and you can most likely rest assured that you are dealing with a solvent company who can perform your work request immediately.

If you are dealing with other types of repair persons, the mortgage company may only advance approximately 10% of the monies held to commence the work. The rest of the payments throughout the job will be distributed in progress payments as work is completed. Usually, the mortgage company will require inspections to be performed to verify that the work has indeed been done.

Some states have laws that require mortgage companies to deposit insurance settlements into interest-bearing accounts. But in states that lack such a law, contact your mortgage company and suggest alternatives to release the money that may be withheld. If necessary, you can contact an attorney for assistance.

Taxes and The Internal Revenue Service (IRS)

An insurance claim filed by you may be something you should consider on your tax return. As a taxpayer, you may be allowed to “write off” certain losses. These losses might include those not covered by insurance, or portion of losses that are not covered.

The law generally does not allow deductions for losses that would be covered by insurance but were not claimed.

If the insurance company does not pay the full value of the loss, you may be able to deduct the difference between what you received from the insurance company and the value of the loss (as a tax write off). In many cases, the amount you paid for your insurance deduction is a tax deduction as well.

You should consult your accountant or tax preparer for information and advice on deducting insurance losses.

Compare Home Insurance Quotes

After a home insurance claim settlement, your home insurance rates may increase depending on the circumstances of your claim. In some cases, this may be the right time to research and compare home insurance quotes and make the switch to cheaper, more affordable home insurance coverage. NationalLenderList.com can show you some of the home insurance companies available in your area and provide rate quotes to help you decide which home insurance company best fits your needs. Additionally, compare life insurance quotes and car insurance rates to buy multiple policies from the same insurance company to get discounts. We offer consumers the ability to compare whole and term life insurance quotes so you can save money when you buy an insurance policy in the future.

If you browse through the yellow pages of your telephone directory you’ll be amazed at how many appraisers offer this type of service. However, you are not looking for a jewelry appraiser if you need someone competent in the field of property damage claims.

The appraisal process requires an individual with skill and knowledge in the construction field, the appraiser should not just evaluate damage but have a thorough knowledge of the complete construction/rebuilding process. The following are some basic concepts the appraiser should understand and have experience with to provide an accurate assessment of the situation and appraise accordingly:

• All facets of the construction trade
• Knowledge of engineering requirements
• Knowledge of material pricing
• Knowledge of material sources
• The labor and time elements related to repairs and reconstruction
• Specialty conditions and circumstances

The individual you choose as your appraiser will be required to represent you in the appraisal process through documentation and oral argument in front of the umpire assigned to hear the dispute.

Your appraiser must be:

• Articulate
• Persuasive (he or she will be conducting an argument on your behalf and in your best interest)
• Believable (he or she will have to convince the umpire that your position is right and the insurance company is wrong)
• A disinterested party (he or she should not have a financial connection to you, with the exception of the fee for his/her services. This also means that the appraisers cannot work for the company that will be doing the work on the damaged property or s in any way connected to the supplier of materials.)

If you have a problem finding a qualified property damage appraiser, you can hire an appraiser from the following fields for the purpose of representing you at the appraisal process:

• Attorneys (with knowledge of the construction trade)
• Architects
• Engineers
• A good restoration contractor who does not have a financial interest in the outcome of the appraisal.
• Remember again, any appraiser that you hire must not have a financial interest in the outcome of the appraisal process, with the exception of their normal fee for their services as an appraiser.

If you have a problem locating an appraiser, consider contracting a qualified restoration contractor, since they work with insurance companies on a daily basis. You may also, in addition to checking your local yellow pages, consider library sources, real estate brokers or mortgage offices. To determine a state approved appraiser, you can contact your state’s Office of the Insurance Commissioner for assistance.

One last thing to consider when interviewing your prospective choice for appraiser is that you ascertain their “track record” and experience in their dealings with insurance carriers. Ask if they have ever been part of an appraisal process with your insurance carrier. Also determine what their history ahs been as far as the position they have taken in the past; for example, have they worked on behalf of the insurance company or on behalf of the homeowner claimant?

Can I Sue For “Bad Faith?”

Your insurance company is said to have a fiduciary relationship with its customers. This means the protection of the policyholder’s property is held in trust by the insurance company, and therefore, the company owes the policyholder fair treatment. The insurance company is required to deal with you fairly and cannot take advantage of your lack of knowledge or deprive you of claim payments you are entitle to as an insured.

When an insurance company violates the fiduciary relationship with its customer and neglects to provide the protection called for by the policy, the company may be seen as acting in “bad faith.”

In order for bad faith to exist, there usually must be conscious wrongdoing on the part of the insurance company and not merely an honest mistake.

In order to determine if your claim warrants a bad faith action you usually have to meet a number of requirements. It should be noted that bad faith action are unique to their own circumstances and evidence, and the following list should not be an indication or suggestion that this is all you are required to prove in order to file a bad faith claim, or to be successful in the outcome. Items to consider include, but are not limited to:

• Determining coverage at the time of loss and were you covered by the applicable policy?
• Does your insurance contract subject the insured to damages over and above whatever may be due under the contract?
• Has the insurance company failed to perform its implied duties under the contract?
• Has the insurance company committed fraud, negligent misrepresentation, intentional infliction of emotional distress, etc.?
• Are punitive damages applicable?
• Has the insurance company withheld benefits, denied benefits due, paid less than due, or unreasonably delayed payment?

Because the insurance company’s officers, agents and representatives are not a party to the insurance contract, you usually cannot sue them individually. You are not suing your insurance company directly on the basis of the conduct or “unreasonable practices” of the company’s representatives.

The following conduct by an insurance company has been held admissible to show it acted “unreasonably”:

• Failure to investigate claim thoroughly
• Failure to evaluate claim objectively
• Unduly restrictive interpretation of claim form
• Using improper standards to deny claim
• Dilatory claims handling
• Deceptive practices to avoid payment of claim
• Abusive or coercive practices to avoid payment of claim
• Disregard for the insured’s rights
• Unreasonably low settlement offers
• Unreasonable litigation or litigation tactics to avoid payment of claim

In most jurisdictions, if you sign a release with the insurance company you may waive your rights to pursue an action of bad faith against your insurance company.

Please note that in order to undertake a lawsuit for bad faith; you should consult legal counsel because of the complexities and legal theories that are required to bring such an action.

Legal Counsel

The use of lawyers often is an economic decision. If you have followed the recommendations contained in this book, you will have laid the groundwork in an organized fashion for the lawyer to take over. This should provide you with a great deal of savings of both money and time.

Lawsuits are an action of last resort. You can win, or at least get the amount you think you’re owed, but it should take years, especially since insurers may certainly appeal any verdicts against them. It doesn’t make sense to file suit if you’re going to end up having a lawyer more than the amount t of your claim.

In some limited cases, there may be provision in your insurance policy allowing the prevailing party to recover their attorney fees.

Homeowner Insurance Quotes

National Lender List provides homeowners with access to some of the best nationwide home insurance companies and can help owners get the cheapest home insurance quotes and make the switch to a better insurer. NationalLenderList.com has also partnered with other insurance quote websites to offer cheap life insurance quotes, cheap car insurance, term life insurance, and the best life insurance rates available in the U.S.

Some state insurance departments offer mediation services. In addition, most policies allow for an independent appraisal or arbitration process to resolve disputes over money. The decision of the appraiser or the arbitrator is often binding. The decision, however, doesn’t always close the door to mediation or litigation on other issues, such as “bad faith.” It is an important point to continually maintain your claim file. This file may prove invaluable if your claim is contested or if you bring forth an action of bad faith.

Contacting the Insurance Commissioner

Each state has an Insurance Commissioner. Most commissioners are appointed by the Governor of the state, although some are elected officials. The Insurance Commissioner’s office is given the task of monitoring the activities of insurance companies, assuring proper compliance with state laws regulating insurance companies, and evaluation whether the insurance companies are solvent.

If you have any kind of question or problem regarding insurance in general, or a claim in particular, the Insurance Commissioner’s office is available to offer you assistance. If you have a valid complaint against your insurance company, or you feel you are not being treated fairly, the Insurance Commissioner’s office will investigate the issue. If there is a problem with your claim, the Insurance Commissioner’s office can be a powerful force. Contract your own individual state’s Department of Insurance and request to speak to someone on the staff of the Insurance Commissioner.

Alternative Remedies – Appraisal, Arbitration, Lawsuit

Perhaps the most neglected section of any homeowner policy is the “Appraisal Clause.” It can be found under the “Conditions” portion of any property insurance policy. It is such an important section of the policy for you, the policyholder, that it bears close scrutiny.

The appraisal process is usually the most economical procedure to take rather than to immediately seek legal counsel. There is no guarantee that the appraisal will allow you to settle with the insurance company for the amount you feel is fair and reasonable for your damages. But, there is a good chance that you will at least settle far better than you would have if the appraisal process was not initiated at all.

If your policy contains an appraisal process clause, your insurance company might try to force you in to the appraisal process. They may possibly send you an “official looking” letter saying you have 20 days or less to retain an appraiser. Do not be intimidated by this kind of pressure. A letter notifying you of your right to the appraisal process is not necessarily a demand by the insurance company to engage in one. You have the option to initiate the appraisal process but so does your carrier. The carrier will rarely initiate the appraisal process, but if they do, take not of the time for you to respond.

If you decide to enter the appraisal process and are dissatisfied with the outcome of the appraisal decision, you can sue your insurance company. Keep in mind if you elect to sue, that the absence of evidence of wrong-doing on the insurance company’s representative part during the appraisal process, will be vigorously defended by your insurance company and can be very expensive.

Home Insurance Claim Arbitration

If there is not a mandatory arbitration clause in your policy, and your disagreement is based on the value of the claim, you can request arbitration with your insurance company. If arbitration is agreed upon by both parties and your policy has an arbitration provision, then you both must agree as to whether the decision of the arbitrator will be binding or non-binding. If the parties decide that the arbitration ill be binding, then the decision of the arbitrator will be final. If, however, the parties decide that the decision of the arbitrator will be non-binding, and you or your carrier receives an unsatisfactory result, you can elect to file a formal lawsuit and proceed to trial. Arbitration rules vary from state to state so it is a good idea to consult legal counsel when selecting this course of action.

After you file a lawsuit, a judge will review the case and determine the value of the claim. Next, based on the amount o the damages, the judge can determine whether the case may be arbitrated or tired in a court of law.

If the judge sends the case to arbitration, the parties must agree as to whether the decision of the arbitrator will be binding or non-binding. (If an agreement cannot be reached, the decision will be non-binding). As in a non-judicial arbitration, a binding decision is final. If, however, the decision of the arbitrator will be non-binding, and you receive an unsatisfactory result, you can then request a “Trial de Novo,” and the case will be put back into the trial court and either settled or tried. Arbitration is an alternative solution to a potentially costly trial.

Lawsuits are the absolute last resort if you have a dispute with your insurance company. Lawsuits are very expensive and demand a high level of commitment of your time and resources. They are often high-risk contests that usually don’t compensate for the economic loss you will have suffered as a result of the money you will have invested in bringing the lawsuit. You may be justified in filing a formal lawsuit if you have suffered a major loss and your insurance company is continuing to deny your claim.

A final note: Your insurance company is obligated to notify you (after you have filed a claim) of an impending statue of limitations deadline. Generally, you have within one year form the date of loss to file a formal lawsuit, However, you should consult legal counsel or check with your state’s Insurance Commissioner’s office to determine the applicable statue of limitations, to ensure you are filing your lawsuit in a timely manner!

Homeowner Insurance Quotes

If you're unhappy with your home insurance company, feel they do not have your best interests at heart, or think you may be overpaying for the coverage and service you are receiving, homeowners can always find and compare home insurance quotes online. NationalLenderList.com provides homeowners with access to many of the top best home insurance companies in the country and can help owners get cheap home insurance quotes and make the switch to a better insurer.

Read more about "Finding and Selecting Your Appraiser" for the litigation of your home insurance claim.

If you have experienced a broken pipe and you need assistance, immediately call a plumber. Water damage should be handled by a water extraction service. Wind damage can be repaired by a roofing contractor. These service companies can be easily located in your local telephone yellow pages. Be sure to ask these companies if they qualify to work with insurance companies, and what their experience is in doing so.

You must remember that most of these service companies demand payment immediately. This means that the money is coming out of your pocket before you can submit a claim to your insurance company. In other words, you are subsidizing your insurance carrier, wherein it should be the other way around. In a majority of cases the insurance company should be paying for your emergency expenses immediately.

You may also be inclined to contact a general contractor to repair or rebuild your loss. There are a number of differences between a general contractor and a restoration contractor. You may also be approached by what is known as a public adjuster. Beware!

Public adjusters are independents who generate their income by charging you, the homeowner, to adjust your claim. They are often aggressive disaster marketers, determined to arrive at your catastrophe even before emergency units arrive. They may also charge you anywhere from 15% to 50% of your claim, depending on the total amount. This means you will have to make up the difference personally to pay for their services. You may be losing in two ways: First, you will be paying a percentage for someone to handle your claim, which you could do yourself. Second, because you have already paid exorbitant fees to an adjuster, the reliability and professionalism of any contractor your hire will be limited due to the decreased amount of funds remaining to complete the work.

According to the general manager of Economy Restorations, a full-service restoration company in Orange, California: “qualified restoration contractors can save homeowners enormous amounts of time and money by acting as a liaison between he insurance company and the homeowner. They can also be the saving grace of a homeowner in distress-on the scene quickly to provide an emergency crew to secure the residence and make immediate repairs in order to void increasing the damage potential. Restoration contactors provide services such as a board-up of windows and doors, temporary roof coverings and, if necessary, secure the structure with steel beams. Furniture, carpet and upholstery may also be removed and emergency electricity added to provide temporary power if the occupants are to remain in the house during restoration.”

Even before the homeowner’s own insurance company is on the scene, the restoration contractor and his/her representative can quell the anxieties of the homeowner and begin the initial stages of recovery of the property.

A qualified restoration contracting firm can handle the devastating loss experienced by the homeowner no matter what the degree of damage. They can make life easier for the homeowner by bringing in the professionals that are needed to restore the house. The restoration contractor can arrange for painters, roofers, carpenters, and other specialists to perform work on the damaged house. Restoration contractors will also coordinate any additional subcontractors for the work to be done, and make sure that the people doing the subcontracted work are licensed, bonded, and insured, and will effectuate the repair of your home promptly.

Respected restoration companies usually look out for the best interest of all, including the home insurance company, and should be truthful in assessing the damaged items and replacement value needed.

Investigate Damages

If your first assessment is that of severe damage, leave the premises immediately. Your first reaction to the severity of the damage is usually right. Don’t jeopardize your safety or that of your family. A large branch of a tree crashing down upon your roof can damage the internal components and structural support of the entire house. It is best to leave the house and go to a neighbor’s home or hotel until you can properly assess the damage.

It is also wise, at this time, to consider calling in a qualified restoration contractor or specific emergency service. Your choice is simple, either you and your family combat the disaster, such as a broken pipe or leaking roof, or you call in the experts.

A restoration contractor or an emergency service company can shut off water flow, cover the roof, extract flooded areas of your home, dry or remove wet carpeting, move furniture out of harm’s way, and more! They can also secure your home or business to prevent vandalism, trespassing, or any other condition that may hold you vulnerable to liability or affect the safety of others.

Mitigate Damages

To mitigate, according to Webster’s New World Dictionary, means to “make less severe, less painful.” To mitigate damages, in insurance jargon, is to use reasonable efforts to lessen the damages which have already occurred. Every insurance policy contains the express condition that the policyholder, upon suffering a loss, prevent further damage and to “mitigate” the situation. Generally speaking, your response to a loss will depend on the type of loss and the circumstances surrounding it.

Broken Water Pipe: This occurrence can happen at anytime. It doesn’t matter whether your home is old or new, piping within the structure can be a problem. Broken pipes can cause immediate flooding, damaging the contents and interior of your home.

Older homes utilizing galvanized plumbing components can age and deteriorate to the point that one day a rupture can occurs. Newer homes can have inadequately installed plumbing and piping which can cause leaks and pressure build-up resulting in fracture and flood.

When a broken pipe occurs, quickly assess the damage. Your primary response should be to turn off the main valve controlling the water flow into your house. A further step that should be taken to “mitigate” your damages in this case would be to mop up all exposed water and extract any water out of the carpeting to prevent further damage and avoid deterioration.

You should be prepared, in advance, to locate the water shutoff valve, and inform other members of your household how and where to turn off the water. There are a number of ways to curtail the flow of water to your residence.

1. Valve nearest to the source of the broken pipe;
2. Main input valve to residence; and
3. Municipal shutoff valve at curbside.

Have the right shutoff tool handy. Most under sink and toilet shutoff valves have the common spindle-wheel type valve closure handle. But others, such as your main-to-house or municipal water shutoffs have slot-turn valves.

A medium size adjustable crescent wrench will be the best preparation you can have in case of an emergency of this sort. If a pipe breaks, for example, under a sink or toilet, the valve nearest to the break is probably the appropriate shutoff. Under each sink in your home is either a two-valve assembly or, in the case of a toilet, a one-valve shutoff.

Shut Valves Off Immediately By Turning In A Clockwise Motion. Sometimes valves can be hard to rotate due to calcium build-up from the water, but a little effort back and forth can loosen and fee them up enough to allow you to close the water flow in a clockwise direction. It is also a good idea to periodically maintain the efficiency of the shutoff valve by spraying a threading lubricant, such as the commercially available WD-40, at the valve stem.

Pipe break occurrences normally involved under sink piping and fixtures, kitchen pipes and garbage disposal in-flows, and hot water heating units. Pipes can also break within a wall, floor or ceiling. If this is the case, and there is no valve located near the break, you must then shut off water flow to the entire house.

Home and Municipal Water Shutoff

The main input valve to your home is normally located at the front or side of your house. You will locate this spindle-wheel valve close to the ground or possibly in shallow dirt directly below ground level. Again, a clockwise turn will shut this valve off completely, stopping all water flow to the household.

The municipal water shutoff, or the valve that comes from your city’s supply to your house, is normally located at the site of the water meter. Most urban areas have this valve and meter box located on the parkway or that portion o your property at the city boundary located at a street site. It is the location where city officials and meter readers periodically check and account for your water use. A medium-sized crescent wrench can be used to deactivate water flow, but if you have difficulty in closing the valve, call your city’s water emergency service immediately.

Photograph Damages

The best way, by far, to document any loss for insurance claim purposes is to photograph or videotape the damages. It is vitally important that you obtain well lit photographs/videos of the damaged areas.

Water damage may dry quickly, and if there is no confirmable evidence of the interior stains to your ceiling or walls, they could go undetected. Flooded areas subside eventually, and the power of a detailed photograph/video showing the immediate disaster may enhance your insurance claim immensely.

Always request double prints when you get your film developed and keep the negatives in a safe place. This way you will have one set for your file and another set can be sent to the insurance company.

List Damages (Inventory)

The sooner you can list or inventory the loss, the better. At the time of the loss you are more aware of what has been damaged and the cause of such damage. There are items or components that you may miss after a day or two of contemplating your loss.

Photographs are indeed the best evidence in any insurance claim, but a detailed inventory of damaged or destroyed property will eventually become invaluable in processing your claim. Perhaps you already have photos or video tape of your home to show the “before” condition of your home.

Home Insurance

After a major disaster or significant home damage, it is always best to review your home insurance policy and make sure you are getting the best coverage for your premium rates. Comparing your home insurance coverage to plans offered by other leading home insurance companies and getting a home insurance quote will help you figure out if your insurance rates are justified by the coverage and customer service you are receiving.

1. Prepare the dwelling for occupancy. Your job at this point is to fix up, paint, clean, and dress your rental property home or apartment to make it attractive enough so that a good prospect will want to rent it from you for the rent you want to charge. You will always attract the best tenants and get the most rent from a rental home that shows well and smells good.

Even so, don’t become overly concerned with sanitation or perfection when you are preparing a house for occupancy. Remember that you are appealing primarily to the senses of sight and smell. In this context, clean the appliances, stove hood, cabinets, and under the sink. Remove all non-adhesive shelf paper. Clean the showers, tubs, toilets, sinks, mirrors, and medicine cabinets. Dust the ceilings, baseboards, window sills, and closets, as well as wash the kitchen, bathroom walls, dry clean the draperies, etc. You get the idea, but just don’t go overboard. After all, you, the landlord, are not going to be living there.

In addition to preparing the place for occupancy by cleaning, make sure to make it smell good. Perfume the place by cleaning the kitchen and bathroom with a lemon or pine-oil scented cleaner, or use a commercial air freshener to make the place smell of honeysuckle, limes, or cinnamon. The sense of smell is very important. Those who study such things say that smell revives memories more than any of our other senses. Remember the wonderful aroma of homemade cookies and all the pleasant memories that go along with them.

2. Pre-qualify the prospects. This step is based mostly upon your tenant standards, whatever they happen to be, and consists of five or more determinations that can and should be made rather quickly, even over the phone, and will save you time, energy, and grief. This step serves to eliminate those people who are interested in renting from you but fail to qualify. You are prequalifying a tenant before showing them the rental property or having them fill out an application, so you won’t be frustrated to learn late in the process that they have too many people to fit into your rental or have pets when you don’t allow any.

You can’t very well determine at this stage whether someone will qualify according to all of your tenant standards. That questioning would be much too tedious to go into right now, and besides, it wouldn’t yield useful information anyway because there are certain things you need to observe and can’t ask about, like intelligent or cleanliness.

To avoid wasted time, effort, and possible embarrassment, you might prequalify prospects when you first speak with them by making these five essential determinations about them and their circumstances:

• When are they ready to move in?
• Whether they have enough money to move in and can afford a certain rent?
• Whether the number of people who intend to live there falls within your limit?
• Whether they have pets?
• Whether they operate a home-based business and what it may be?

If the prospects are not ready to move yet and your dwelling is ready for immediate occupancy, look for someone else in the meantime. If you require $750 to move in and they only have $400 to commit right now, don’t bother talking to them right now. If they are a family of four, and you’re looking for a maximum of three people, tell them.

However, unless you have a lie detector handy, establishing the truth regarding these particulars may take some time.  Ask your questions in a subtle way not to demonstrate the answer you are searching for. Let them just answer the question and see where it goes. With all of these matters settled to your mutual satisfaction, invite them to take a look at the place.

3. Showing the rental home or apartment. This step requires no great talent or skills, but you might wisely employ a number of ideas to make showing the dwelling less troublesome and more productive.

• After you have prequalified those who call and express an interest in renting your available rental property, answer whatever questions they may have while they’re still on the phone, and explain exactly where the rental is located so they aren’t astounded by the neighborhood if it’s not quite what they had expected.
• If you’re an absentee landlord who rents out a house or an apartment complex which is located far from where you live or work, you’ll want to refrain from making repeated trips there. Do so by encouraging people to drive by the building first and then call back for an appointment to see the inside, or do so by holding an “open house” for showing your vacancy at designated hours for multiple people. Tell those whom you have prequalified, and save yourself many wasted trips and hours of waiting around for a specific caller who may or may not even bother to show up.
• While holding an open house may be a real convenience for a landlord, it also has the benefit of stimulating greater interest in the property. When several people show up and express an interest in renting a particular place, each one feels all the more interested just because someone else wants it. The open house creates a kind of “auction atmosphere” which sirs the bidders’ blood and puts you in command. You need not negotiate rent and conditions as some crafty tenants would attempt. You may be in a position to dictate rent and conditions and most importantly, the ability to be super-selective in picking the best available applicant.
• Also, never rent to any person who has not seen the rental property. Some prospective tenants will tell you over the phone that they want to rent your place without even looking at it. If they’re that eager, don’t insist that they see it, but don’t rent it to them immediately either. Be wary of the prospective tenant who does not appear in person but is being represented by somebody else, say a social worker, parent, friend, or minister. The prospective tenant could be an ex-con or a mentally incompetent person who may be a real threat to you or your other tenants. Insist that the prospective tenant appear in person, after all, should this person become your tenant, you will have to deal with him specifically.
• If possible, accompany your prospects on their tour of the premises rather than handing them a key and telling them to look everything over by themselves. Consider the showing as something of an opportunity to talk with the prospects and subtly learn more about them. If you can’t accompany them, take precautions about getting the key back promptly.
• Avoid mentioning whether any one prospect is the first person to submit an application. Many people believe erroneously that landlords have to check rental applications by sequence of submission. A landlord reviews a number of people for an available occupancy and considers each equally over a period of time or until the person best suited for the landlord’s management style comes along. But it is important to offer all visitors and guests to the rental property an application. Tell them that you will be accepting applications over the next few days, and after that, you will check each of them out and pick one. That way you avoid potential arguments over your reasons for refusing to rent to somebody, and everyone saves face.

This state of affairs raises any number of questions, and you should have some answers so you can help your tenants understand renters’ insurance and buy it if they wish.

Why do so few tenants purchase renters insurance?

• They erroneously believe that their landlord carries insurance which will cover them and their belongings.
• They have never given it even a first thought because nobody has ever made them aware of renters insurance.
• They think they can’t afford it.
• They think their assets are too insignificant to be concerned about.
• They’d rather gamble that the premiums which they would pay over time would exceed whatever benefits they would receive.

Why should you as a landlord even be concerned about whether your tenants have a renters’ insurance policy?

• You should show a positive, caring attitude toward your tenants whenever you can.
• Tenants who have insurance are less likely to sue their landlords after a tragedy than tenants who don’t have insurance. Tenants who have insurance don’t have to turn to you for compensation. They turn to their own insurance company for reimbursement.

What does a renters’ policy cover (some offer fire coverage only, while others offer general coverage, including fire, earthquake, and flood coverage)?

• It may cover tenants’ personal goods which are damaged or stolen on the premises.
• It may cover losses to their goods when they are off the premises, such as gold clubs or a camera stolen out of their locked car.
• It may cover them in case someone holds them up, forges their checks, or steals their credit cards.
• It may cover personal liability in case they are negligent as tenants and cause damage to the dwelling.
• It may cover personal liability for non-auto bodily injury claims brought by others.

Where can they buy a renters’ policy?

• Almost all the big general insurance companies sell it – State Farm, Allstate, Safeco, Farmers, etc.
• Tenants might start by asking the company which provides their car and home insurance policies. Always important to compare renters’ insurance quotes before purchasing a policy.

How much does it cost (rates vary by regions; one company has different rates for nine different regions in a single state)?

• Typically a renters’ policy will cost around $25 per month for $25,000 worth of coverage and a $250 deductible. Personal liability on such a policy is $300,000.
• Policies which offer minimal coverage cost as little as $100 per year.

Can they pay for it in installments?

• Most insurers offer a variety of payment plans – monthly, quarterly, semi-annually, and annually. Ask about their installment plans when you are getting renters’ insurance quotes to compare policies. There may be a service charge for the extra paperwork in billing for installment payments.

What discounts are available?

• Discounts are available for those who have any combination of the following – dead bolt lock, smoke alarm, fire alarm, sprinkler systems, or fire extinguisher.

How can you best make your tenants aware of the benefits of a renters’ policy?

• Mention when you first rent to them that they should secure a renters’ insurance policy if they want coverage, and remind them of their exposure to risk once in awhile.
• Make them aware that their possessions are indeed worth something, probably more than they think.
• Tell them that they would be liable if they caused a fire at the property or building, and the place burned down. A renters’ policy would cover them, and also includes much broader coverage than they might think.

Are there any ways you can help them get a renters’ policy?

• You can buy a policy for them in their name and include its cost in their rent. Remember that it becomes their policy. Should they move out six months after you the paid annual premium and ask the company for a refund, they will get the refund, not you, because the policy has to be in their name.

Overall, be prudent whenever you buy insurance affecting your income property business. You’ll save on the premiums and you’ll protect your assets. Making your tenants aware of the benefits of having a renters’ policy is just one way to ensure your business, homes, and buildings are protected.

The most important factor in the smooth operation of rental properties is getting good tenants. If you become adept at this, all your landlording troubles will be little ones. No matter what procedure you follow for selecting tenants, if it’s working for you, keep at it. No one can argue with success. But if you should have reason to doubt the effectiveness of your tenant selection procedure or need an expert’s opinion, consider learning from the following.

The Ten Steps To Picking A Good Tenant

Just as anyone can pick a horse to bet on in a race, anyone can pick a tenant, but picking winners isn’t easy. It requires a lot of diligence and patience, as well as a little luck and some good intuition. Fortunately, though, the odds improve exponentially if you follow these tens steps, which are arranged chronologically.

1. Prepare the dwelling for occupancy.
2. Pre-qualify the prospects.
3. Show the dwelling.
4. Accept and scrutinize all applications.
5. Check references and qualify the applicants.
6. Visit applicants’ current home.
7. Review your rules, requirements, and policies.
8. Fill out and sign the Rental Agreement.
9. Request all money or a deposit.
10. Create a record of the dwelling’s condition and contents before occupancy.

These ten steps are hardly what one might call difficult, but they do require time and attention, some of them more than others. Take the time and give them the attention, some of them more than others. After the first seven steps, you might choose to reject the prospective tenants, and you shouldn’t be afraid to do so. You are not obligated to rent an available home to the first person who expresses an interest in renting it. I repeat, you are not obligated to rent an available rental dwelling to the first person who expresses an interest. Keep looking until you are thoroughly satisfied that you have found an applicant who will be a good tenant for your building and for you, someone with whom you might have a reasonably friendly and enduring relationship.

Exercising Discrimination - Legally

Be as discriminate as you can possibly be in your selection, but by all means, DO NOT discriminate based on race, color, religion, sex, national origin, age, or physical handicap. Such discrimination is illegal throughout the United States, as a matter of Federal Law. In addition to federal discrimination criteria, some regions have specific laws prohibiting discrimination regarding marital status, sexual orientation, source of income (occupation), personal appearance, political affiliation, place of residence, place of business, matriculation (student status), and family responsibilities. Other regions have less specific but more encompassing anti-discrimination laws which prohibit discrimination in rental housing unless it is based on legitimate business grounds.

Now with all these discrimination categories to worry about, you might think that you would have to rent to the first person who expresses an interest in your vacant home rental just to avoid a discrimination lawsuit. What is left to discriminate about anyways? A lot actually, such that you may still discriminate based on your tenant’s ability to pay, willingness to pay, past record as a tenant, pets, waterbeds, number of vehicles, types of vehicles (you may not discriminate against motorcyclists, but noisy ones are another matter), recommendations, number of co-tenants (even though you may not discriminate against children, you may still limit the number of people you will allow to occupy the premises), intelligence, honesty, attitude (use care with this one), smoking or drinking habits, permanence, noiseness, cleanliness, etc.

Overall, don’t worry about anti-discrimination laws too much. You should always be able to find a legal reason not to rent to those who are objectionable. Set your own standards well within the law, and then set about getting good tenants you can work with. Your standards for a particular rental might look like the following:

• Gross income - needs to be four times rent.
• Income stability – needs to be at least six months with the same employer or source of income.
• Assets – fives time rent (bank account and/or automobile equity)
• Credit – established, nothing negative
• Rent punctuality – prompt, never late
• Pets – none
• Waterbed – one queen-size OK
• Vehicles – one car, no motorcycles louder than an automobile
• Personal recommendations – one available (preferably local)
• Number of tenants – maximum of four
• Intelligence – average or above
• Attitude – cooperative
• Smoking – no
• Drinking – moderation
• Permanence – at least six months in each of last two residences
• Cleanliness – average

Naturally some of the standards you use are relative to a given dwelling, to you, a particular state and municipality, and others are commonly accepted rules. Be reasonable in determining standards or you’ll never find anyone you can rent to.

One of the most important factors to consider is an acceptable number of occupants based on the size of the home. A reasonable guideline to follow is one fewer than the number of bedrooms available. Exceeding this number increases the population density to a point where maintenance and repair costs increase considerably. Floors show more wear, toilets flush more frequently, doors swing open and closed, faucets, switches, outlets, windows, heaters, garbage disposers and all the other parts of a rental home just get a lot more use and hence wear out more quickly. Although HUD, otherwise known as the US Department of Housing and Urban Development, has its own estimates, fortunately, you don’t need to agree with them and follow their figures. Unless local housing regulations state otherwise, this is purely what you, as a landlord, are comfortable with, assuming you don’t make it overly restrictive.

One Los Angeles landlord restricted his rental homes to one occupant per bedroom and ran afoul of the Fair Employment and Housing Commission for being too restrictive. This same landlord would make no exceptions to his occupancy guidelines when children were involved, but he would make exceptions when adults were involved. You can see why he ran into trouble – he was discriminating against children, and that’s against the law.

Some additional basic guidelines which should help landlords avoid trouble are the following: 1) No child will share a bedroom with the parents; 2) No more than two children will share a bedroom; 3) A child six years or older will not share a bedroom with a child of the opposite sex; and 4) A child ten years or older is entitled to a separate bedroom.

Home Insurance and Refinancing Mortgages For Landlords

For landlords, the cost of a mortgage and home insurance are business expenses, and therefore affecting their profits and cash flow. Find and compare home equity, refinance rates, and home insurance quotes to make sure you are getting the cheapest quotes and working with a top homeowners’ insurance company. National Lender List helps homeowners and landlords compare home insurance quotes, mortgage rates, and home loans to find the most affordable home insurance and the best mortgage rates. Also save on auto, health and life insurance quotes with our partner sites.

Get more details on The Ten Steps To Picking A Good Tenant.

• You may obtain emergency services to safeguard your property from further damage after a loss, and you may be fully compensated for the cost of such services. In fact, after a loss, you have the obligation to safeguard and mitigate your property from further damage. Your insurance company may not be liable for additional expense if you fail to provide such protection. This is called mitigating your damages.
• You have the right to have a professional loss consultant, or public adjuster, lawyer, etc, represent your interests and guide you in the presentation of your claim to the insurance company’s adjusters (at your expense).
• If you have secured adequate coverage, you should be entitled to be paid for the market value of fully restoring your property to its pre-damaged condition. However, you are not insured for the repair of unrelated problems, code deficiencies or prior damage.
• You are entitled to employ a full-time restoration professional who is licensed, insured, of good reputation, and can demonstrate his/her capabilities, availability, skill, and experience in insurance damage repair.
• The repair contract and its performance is strictly between you and the contractor. Generally, your insurance company does not warrant or guarantee the performance of any firm you hire. So be sure to have the contractor put any agreement into writing.
• You are entitled to materials and workmanship fully equivalent to your existing installation in like kind and quality. The home insurance company has no obligation to improve your existing installation.
• You are not required to accept the lowest bidder. Nowhere in your policy do the words “cheapest”, “low”, or “low price” appear. However, repair rates should correspond to prevailing standards in your area for work of good quality.
• Before work begins, you entitled to receive from both the adjuster and contractor, a detailed listing of the scope of repairs and quantities of materials to be provided. Provisions for hidden or latent problems relating to the damage should also be spelled out in as much detail as possible.
• You are entitled to a contract that provides all federal, state, and local requirements for construction work. However, you must be familiar with these requirements in order to enjoy the protection the law provides.
• If there is a disagreement between you and the home insurance company which cannot be resolved, you are entitled to request arbitration and/or appraisal subject to the terms of your policy. The standard policy spells out the procedures for settling differences without resorting to a lawsuit.
• The insurance company must pay you within the time specified in the contract. State insurance regulations vary with respect to the time requirements. The “time” clause is designed to prevent insurance companies from using delay and/or personal hardship as a tactic to compel a lower settlement. However, the policy also has time requirements for you, the policyholder, within which you must prepare and submit your “Proof of Loss” paperwork. Know about these in advance so that you can be in compliance.

The Art of Negotiation

Negotiating a settlement with an insurance adjuster demands a business-like attitude, a good understanding of the claims process, and preparation. To prepare for such negotiations, there are three things to remember: know your rights, have thorough documentation, and be able to verify your claim. By being prepared in this way, your negotiating skills will be utilized most effectively.

The dynamics of good negotiation are characterized by six interrelated elements: preparation, common sense, objectivity, principle, communication, and compromise.

1. Preparing is a must! Have all your documentation close at hand in order to substantiate your claim.
2. Common sense or good sound judgment will always be your best ally. Recognize what is relevant vs. irrelevant, material vs. immaterial, fact vs. fiction.
3. Be objective. Objectivity is the concentrated effort to see things clearly and without bias or prejudice. Be being objective, you can easily identify whether the adjuster’s statements are made in good faith. How do you maintain this objectivity? The most effective way is by sticking to the relevant issues of the claim, recognizing how your views are similar or dissimilar to the adjuster’s, avoiding the sway of emotion or pressure, not relying on unsubstantiated statements, and verifying the adjuster’s statements through qualified sources. At times, it can be very challenging to maintain an objective attitude while negotiating. Your objectivity will be borne out by your open-mindedness toward the issues and your ability to recognize the adjuster’s perspective.
4. When settling your claim, use a principled approach. Be sure the adjuster is maintaining the professional standards his/her insurance company advertises. Be straight-forward in your communications and do not become emotionally affected by unreasonable assertions. Never yield to pressure, intimidation, evasion, or unreasonable negotiation procedures.
5. Effective communication is a product of accessibility, having a positive attitude, and concentration. Accessibility is maintained by first finding out the adjuster’s daily routine. Adjuster’s work schedules are open. They do not punch a time-clock and are usually available at any reasonable hour. Speak optimistically as though your every statement is simply a breath away from happening. Show confidence, carry a look of success, and espouse an attitude that the claim will be resolved only through fairness, honesty, and reasonableness.

Home Insurance Quotes, Mortgage Interest Rates, and Home Loans

To protect yourself after negotiating a claim from your home insurance company, find and compare home insurance quotes to make sure you are getting the best rates and working with a top homeowners insurance company. Sometimes after a claim, your insurance rates may increase, and you will be ready to negotiate a lower rate if you've done your research and compared multiple home insurance quotes and companies. National Lender List helps homeowners and landlords compare home insurance quotes, mortgage rates, and home loans to find cheaper home insurance and the best mortgage rates. Also save on auto, health and life insurance quotes with our partner sites.

Most adjusters that you encounter are upstanding, fair and ethical individuals who have a true concern about your loss with the main objective of restoring your property. But some can create real problems and consume your time, energy and efforts.

You may meet the adjuster who is primarily operating under his or her own agenda. That is, they possess an arrogance about themselves as a result of the position they hold or the personality they have developed. This type of individual will make deliberate attempts to confuse and confound you and may even be trying to thwart the progress of your claim for their own specific reasons. It may be they are overwhelmed by their work load, or just feel that intimidating claimants decreases their efforts in adjusting claims.

Be aware that this type of troublesome adjuster may either show up too early or too lat for a scheduled on-site inspection to catch you “off guard.” This tactic is sometimes deployed to make sure your contractor or some other advisor is not in attendance when the adjuster arrives. These troublesome adjusters tend to have overt characteristic traits which may be indicated by the following:

• Intimidating remarks as to the cause and coverage of your loss.
• A suspicious attitude of the reason you are filing a loss claim.
• Being accusatory toward you – “Didn’t you help create this situation?”
• “Low-balling” the settlement amount.
• Delaying the claims process.
• Not returning calls or inquiries.
• Unethically pressuring you to use his or her contractor to do your repair work.

These types of red flags should give you an indication that you are dealing with a troublesome adjuster. Sometimes just by communicating with the adjuster, you may find that he or she may be overworked, frustrated in their position, “climbing the corporate ladder” or operating outside of the insurance company’s service policies.

Even inexperienced adjusters can be categorized as troublesome at times. Sometimes their case workloads exceed their ability to manage such volume of work, or their lack of knowledge translates into an arrogant attitude of defensiveness rather that empathy toward the policyholder.

If problems continue to persist between you and the claims adjuster, start with calling the claims office and ask to speak to the adjuster’s supervisor. In most cases, this is all that will be necessary. Candidly and politely explain to the supervisor your problem. Tell him/her that you have already made a number of calls to the adjuster with no response and that you are perplexed as to why. Further explain that the repairs to your dwelling are being delayed as a result, because the contractor has stated that the repairs to your dwelling cannot commerce or proceed until you and the adjuster work out your differences.

If your call to the supervisor results in the supervisor doing nothing more than supporting the adjustors position, immediately write a letter to the claims manager and send a “cc” copy to the Vice-President of the Insurance Company.

In any situation, be sure to completely document any and all conversations. Have any adjuster who denies coverage put their denial in writing! This is what they are required to do. Also, document the damages thoroughly and keep complete records of everything? You should also take note that if you are faced with a troublesome adjuster this is probably the appropriate time to being to consider going up the chain of command and solicit the assistance of someone at a higher level of management. If necessary, do not hesitate to utilize the chain of command and to inform the upper management of the company of your grievance and ask for their intervention.

Home Insurance Quotes and Mortgage Rates

When homeowners are in need of home insurance quotes or mortgage rates, National Lender List provides easy access to affordable home insurance quotes and the lowest mortgage interest rates today. By comparing rate quotes, homeowners can save thousands of dollars with cheap current mortgage rates, and afterwards, save even more with a home owner insurance quote.

Read about The Games Some Adjusters Play.