Protecting
Your Real Estate Investment
How can you better protect your Real Estate
Investment? Here are a few steps I
strongly suggest.
1. Homestead
When you record a Declaration of Homestead, Nevada law protects
the equity in your home up to $550,000 from general creditor claims (unpaid
medical bills, bankruptcy, charge card debts, business/personal loans,
accidents) but would not preclude a seizure or forced sale of your residence
from general creditors if your equity exceeds the $550,000.
The Homestead law does not
protect you against debts secured by a mortgage or deed of trust, payment of
taxes, IRS lien, mechanic's lien, child support or alimony payments.
2.
Homeowners Insurance
Typical homeowner’s
insurance policies offer coverage for damage caused
by fires, lightning strikes, windstorms and hail. In
addition they cover losses/damage due to theft and accidents that occur on your
property. However, it's important to know that not all natural disasters are covered by homeowners insurance. For example, damage caused
by earthquakes and floods are not typically covered by homeowners insurance.
Verify your coverage with your insurance agent and we suggest doing this
annually.
3. Home
Warranty
A home warranty is a
one-year, renewable service contract that covers repairs and replacements of
most major home appliances and system components due to failure, standard usage
and other problems that happen due to age.
What does it cover? A home warranty will typically cover most major components of large home systems, such as your HVAC (central heating ventilation air condition), hot water heaters, plumbing, electrical and more. It may also cover regular appliances such as washers, dryers, refrigerators and stoves. Some plans allow you to purchase optional add-on coverage for your spa, second refrigerator, swimming pool, pumps and more. Always ask about roof coverage, as some warranties do not include this as a standard item.
What does it cover? A home warranty will typically cover most major components of large home systems, such as your HVAC (central heating ventilation air condition), hot water heaters, plumbing, electrical and more. It may also cover regular appliances such as washers, dryers, refrigerators and stoves. Some plans allow you to purchase optional add-on coverage for your spa, second refrigerator, swimming pool, pumps and more. Always ask about roof coverage, as some warranties do not include this as a standard item.
4. Credit
Protection / Life Insurance
Mortgage Payment Protection typically covers
your loan payments if you lose your job or become disabled, and/or it pays off
your mortgage when you die. These products are often times frowned upon and not
as easy to obtain as they once were sold with the mortgage, but with a little
research, you can usually find a reputable agent to explain the pros and
cons. I am a fan of insurance and have
seen many homeowners stay in their homes when they were disabled due this type
of coverage.
