Home Sales Edge up .4%

Home Sales Edge up .4%
"The National Association of Realtors reported Monday that sales of existing single-family homes, condominiums and townhouses rose 0.4 percent in November from October, to a seasonally adjusted annual rate of 5 million units. Over the last 12 months, however, existing home sales have plunged 20 percent, underscoring the troubles in the housing sector....." Home Sales Edge Up

Home Sales Edge up .4%

Home Sales Edge up .4%
"The National Association of Realtors reported Monday that sales of existing single-family homes, condominiums and townhouses rose 0.4 percent in November from October, to a seasonally adjusted annual rate of 5 million units. Over the last 12 months, however, existing home sales have plunged 20 percent, underscoring the troubles in the housing sector....." Home Sales Edge Up

Americans Facing Foreclosure

"The thousands of Americans facing foreclosure because of the ballooning interest rates on their subprime mortgages would get help from the federal government under legislation overwhelmingly approved by senators Friday.
The legislation, approved 93-1, is the Senate's first attempt to address the looming subprime mortgage crisis through stand-alone legislation. Sen. Jon Kyl, R-Ariz., was the lone senator to vote no.
The bill would allow the Federal Housing Administration to back refinanced loans for tens of thousands of borrowers who are delinquent on payments because their mortgages are resetting to sharply higher rates from low initial "teaser" levels." Foreclosure

Americans Facing Foreclosure

"The thousands of Americans facing foreclosure because of the ballooning interest rates on their subprime mortgages would get help from the federal government under legislation overwhelmingly approved by senators Friday.
The legislation, approved 93-1, is the Senate's first attempt to address the looming subprime mortgage crisis through stand-alone legislation. Sen. Jon Kyl, R-Ariz., was the lone senator to vote no.
The bill would allow the Federal Housing Administration to back refinanced loans for tens of thousands of borrowers who are delinquent on payments because their mortgages are resetting to sharply higher rates from low initial "teaser" levels." Foreclosure

Major Changes Ahead for the Insurance Industry?

Welcome back. I hope everyone had a great Thanksgiving. This post will not be about the New York auto or home insurance coverage that we usually cover. This time I will be highlighting some larger trends that in some cases have already come to affect other industries but may now be coming to an insurance policy near you.

One such new area is that the 'capital markets' are starting to make eyes at the insurance industry. When I say capital markets, I'm talking about monies raised by the giant investment firms like Merrill Lynch or Goldman Sachs. Up until now, insurance companies raised the money needed to back their insurance products by selling stock, and collecting premiums and investing them. But now these super-sized financial companies have become experts at raising literally billions of dollars quite quickly and efficiently, in their constant efforts to find investments to sell to their clients.

Traditionally, these financial companies would raise money for other companies by underwriting offers of their stocks and bonds. So if General Motors wanted to raise a billion dollars to invest in a new vehicle product line, for example, they could have Merrill agree to make good faith efforts to sell enough shares of GM stock (remember that stock represents an ownership interest) or GM could offer corporate bonds (debt that has to be repaid, but does not give up any ownership) for a similar amount. They would have to weigh the plusses and minuses of each.

Now, however, with the advent of things like hedge funds, and giant pension funds and even major individual investors looking to put their money to work, enough capital can be raised to start whole new companies and industries. The capital markets were a major force behind the growth of sub-prime mortgages over the past several years, as investors chased higher yields which could only be had by coming up with the many strange variations of mortgages, and in many cases giving them to people who, it turns out, couldn't afford them and are now facing serious financial problems.

These companies could end up having a huge impact on major insurance coverages such as catastrophe insurance. For instance, billions could be quickly raised to offer reinsurance (the kind of insurance that insurance companies buy for themselves against major events like hurricanes) except that instead of insurance companies buying their reinsurance from traditional markets like Lloyds, or SwissRe, they might look for better deals from the capital markets.

Competition is generally good in that it reduces costs. For instance, it would help us here on Long Island right now if insurance carriers could lower their cost of reinsurance for windstorms and hurricanes. That's what is causing all the disruption in the insurance market for waterfront homes these days. On the other hand, the capital market's tendency to use overly aggressive sales pitches, and only shoot for short term profit as opposed to long term viability, can make for quite a mess. Right now we are going through a mortgage and real estate crisis that was made much worse by predatory lending practices and speculation, fostered by these 'capital markets' chasing down an extra per cent or two of interest on their money through sub-prime mortgages.

The one thing about insurance that is different from almost any other kind of product, is that you can have catastrophic, once-in-a-lifetime events like Katrina or the four hurricanes in 3 weeks that hit Florida a couple of years back. These require careful long-term planning and an industry with plenty of real money behind it. I'm not sure I want to see insurance get the same kind of treatment as the mortgage industry has gotten this year as a result of reckless short term practices over the past couple of years.

Next up, will the next Presidential election bring a total change to our health insurance system?

Long Term Mortgage Interest Rates

"Long-term mortgage interest rates moved lower Monday, and the benchmark 10-year Treasury bond yield dropped to 4.07 percent.
The 30-year fixed-rate average dipped to 5.9 percent, and the 15-year fixed rate slipped to 5.46 percent. The 1-year adjustable, however, rose to 5.48 percent.
The 30-year Treasury bond yield was down at 4.48 percent.
Rates and bonds are current as of 7:15 p.m. Eastern Standard Time.
Mortgage rate figures are according to Bankrate.com, which publishes nightly averages based on its survey of 4,000 banks in 50 states. Points on these mortgages range from zero to 3.5.
In other economic news, the Dow Jones Industrial Average tumbled 218.35 points, or 1.66 percent, finishing at 12,958.44. The Nasdaq lost 43.86 points, or 1.66 percent.... Long Term Mortgage Rates

Long Term Mortgage Interest Rates

"Long-term mortgage interest rates moved lower Monday, and the benchmark 10-year Treasury bond yield dropped to 4.07 percent.
The 30-year fixed-rate average dipped to 5.9 percent, and the 15-year fixed rate slipped to 5.46 percent. The 1-year adjustable, however, rose to 5.48 percent.
The 30-year Treasury bond yield was down at 4.48 percent.
Rates and bonds are current as of 7:15 p.m. Eastern Standard Time.
Mortgage rate figures are according to Bankrate.com, which publishes nightly averages based on its survey of 4,000 banks in 50 states. Points on these mortgages range from zero to 3.5.
In other economic news, the Dow Jones Industrial Average tumbled 218.35 points, or 1.66 percent, finishing at 12,958.44. The Nasdaq lost 43.86 points, or 1.66 percent.... Long Term Mortgage Rates

Campaing to help homeowners begins

An alliance created to combat a rising flood of mortgage foreclosures began a nationwide mail campaign Monday, offering help to homeowners who may be having trouble meeting their mortgage payments..... Homeowners

Campaing to help homeowners begins

An alliance created to combat a rising flood of mortgage foreclosures began a nationwide mail campaign Monday, offering help to homeowners who may be having trouble meeting their mortgage payments..... Homeowners

Countrywide Loan Production increased in October

Countrywide Home Loans
"Countrywide Financial Corp. boosted October loan production by 4 percent over the previous month, to $22 billion, funneling more than 90 percent of loan production through its banking division.
Nonpurchase loans represented the majority of mortgage loans funded in October, at $12.7 billion, with Countrywide facilitating an additional $9.3 billion in purchase loans.
Compared to a year ago, October loan production was down 48 percent, and delinquencies and foreclosures in Countrywide's $1.47 trillion loan servicing portfolio continued to grow, the company announced today.
Delinquencies as a percentage of unpaid principal balance rose to 5.94 percent, compared with 3.97 percent a year ago. Foreclosures pending rose to 1.28 percent, more than double the 0.58 percent registered at the same time last year.".....Countrywide Loan Production Increases in October

Countrywide Loan Production increased in October

Countrywide Home Loans
"Countrywide Financial Corp. boosted October loan production by 4 percent over the previous month, to $22 billion, funneling more than 90 percent of loan production through its banking division.
Nonpurchase loans represented the majority of mortgage loans funded in October, at $12.7 billion, with Countrywide facilitating an additional $9.3 billion in purchase loans.
Compared to a year ago, October loan production was down 48 percent, and delinquencies and foreclosures in Countrywide's $1.47 trillion loan servicing portfolio continued to grow, the company announced today.
Delinquencies as a percentage of unpaid principal balance rose to 5.94 percent, compared with 3.97 percent a year ago. Foreclosures pending rose to 1.28 percent, more than double the 0.58 percent registered at the same time last year.".....Countrywide Loan Production Increases in October

PMI Insurers may owe thanks to Piggy Back Mortgages

"The PMI companies pressured Congress and did get a limited short-term income tax deduction for PMI premiums but borrowers continued to flock to piggy-backs.
Well, talk about dodging a bullet. There were probably hundreds of thousands of buyers who opted for a piggy-back arrangement rather than PMI in the last half dozen years. The Federal Reserve has reported that 22 percent of new loans written in 2005 and 2006 used the second mortgage approach. Think of all of the potential foreclosures for which the PMI companies are not going to be on the hook....." Private Mortgage Insurance

PMI Insurers may owe thanks to Piggy Back Mortgages

"The PMI companies pressured Congress and did get a limited short-term income tax deduction for PMI premiums but borrowers continued to flock to piggy-backs.
Well, talk about dodging a bullet. There were probably hundreds of thousands of buyers who opted for a piggy-back arrangement rather than PMI in the last half dozen years. The Federal Reserve has reported that 22 percent of new loans written in 2005 and 2006 used the second mortgage approach. Think of all of the potential foreclosures for which the PMI companies are not going to be on the hook....." Private Mortgage Insurance

Beazer Home Builder reduces....

"Home builder Beazer reported this week that it cut 650 positions -- or 25 percent of its workforce, in October . Since peaking in March 2006, the company's workforce has been slashed by about 50 percent "through reductions in force and attrition," the company reported this week. The company referred to the major layoff and dramatic downsizing in workforce as "recent headcount reductions."
Meanwhile, an investment group that works with pension funds sponsored by affiliates of a group of unions that collectively represent about 6 million members is asking for another head to roll at Beazer: that of the CEO and president....." Inman News blog

Beazer Home Builder reduces....

"Home builder Beazer reported this week that it cut 650 positions -- or 25 percent of its workforce, in October . Since peaking in March 2006, the company's workforce has been slashed by about 50 percent "through reductions in force and attrition," the company reported this week. The company referred to the major layoff and dramatic downsizing in workforce as "recent headcount reductions."
Meanwhile, an investment group that works with pension funds sponsored by affiliates of a group of unions that collectively represent about 6 million members is asking for another head to roll at Beazer: that of the CEO and president....." Inman News blog

Investors Rental Home Soars in Value

Investors Rental Home Soars in Value:

"The octagonal home is in Dillon Beach, Calif., and was built in 1976. It's on a bluff with ocean views. The residence has three bedrooms, three bathrooms and a fireplace. The house includes a 400-square-foot garage for two small cars. Dillon Beach overlooks Tomales Bay and is popular with seasonal and full-time renters. The community is about 30 miles from Petaluma, Calif.... Investor Rental Homes

Purchase price: $450,000. Ms. Janssen bought the property with her son, Evan Blacksea, now 25, in 2000. She placed a 20% down payment and financed the purchase with a 30-year fixed-rate mortgage....." Invesors Rental Homes

Kentucky Insurance

Investors Rental Home Soars in Value

Investors Rental Home Soars in Value:

"The octagonal home is in Dillon Beach, Calif., and was built in 1976. It's on a bluff with ocean views. The residence has three bedrooms, three bathrooms and a fireplace. The house includes a 400-square-foot garage for two small cars. Dillon Beach overlooks Tomales Bay and is popular with seasonal and full-time renters. The community is about 30 miles from Petaluma, Calif.... Investor Rental Homes

Purchase price: $450,000. Ms. Janssen bought the property with her son, Evan Blacksea, now 25, in 2000. She placed a 20% down payment and financed the purchase with a 30-year fixed-rate mortgage....." Invesors Rental Homes

Kentucky Insurance

Rates on 30 year Mortgages Drop Sharply

Mortgage Rates Drop Sharply:

"Rates on 30-year mortgages fell to the lowest level in six weeks as financial markets grew more hopeful that the Federal Reserve will boost the sluggish economy by cutting interest rates further. Kentucky Insurance

Freddie Mac, the mortgage company, reported Thursday that 30-year, fixed-rate mortgages fell to 6.33 percent this week, down from 6.40 percent last week. It was the lowest level since 30-year mortgages dipped to 6.31 percent on Sept. 13, which had been the lowest point since last May..." Mortgage Rates Drop

Rates on 30 year Mortgages Drop Sharply

Mortgage Rates Drop Sharply:

"Rates on 30-year mortgages fell to the lowest level in six weeks as financial markets grew more hopeful that the Federal Reserve will boost the sluggish economy by cutting interest rates further. Kentucky Insurance

Freddie Mac, the mortgage company, reported Thursday that 30-year, fixed-rate mortgages fell to 6.33 percent this week, down from 6.40 percent last week. It was the lowest level since 30-year mortgages dipped to 6.31 percent on Sept. 13, which had been the lowest point since last May..." Mortgage Rates Drop

Foreclosures Increase , Investors

Foreclosures Increase, Foreclosure Process

"Smitha has been involved in real estate for 30 years as a licensed broker and agent, and has been a builder for the past 12. He said he has been an investor all along, but his pace has picked up during the past couple years as the market has declined.

"It presents some risks but on the other side of the coin in presents opportunities: The best time to buy is when everyone else thinks you shouldn't," he said. "The best time to sell is when everyone else thinks you should buy."

Smitha is among the more than half of auction buyers who are investors, not owner occupants. He awaits closing on it, then plans to fix it up and sell or lease it sometime next spring. Still, he said he expects to spend more than $40,000 to repair and renovate it.

That's an even greater risk in a down market — but he sees much the same upside that Tadeus and Lorraine Cyman saw 30 years ago, including a nice neighborhood, solid school district and ample living space.

"There are literally hundreds of these houses on the market in the Detroit area," he said. "It's sad but obviously I didn't create the problem. Someone has to buy these and fix them up. Rental Property Insurance

"Really, what people like me do, is return a house to the market in a livable condition that prior to that most people didn't want to walk through." Foreclosure Investors

Foreclosures Increase , Investors

Foreclosures Increase, Foreclosure Process

"Smitha has been involved in real estate for 30 years as a licensed broker and agent, and has been a builder for the past 12. He said he has been an investor all along, but his pace has picked up during the past couple years as the market has declined.

"It presents some risks but on the other side of the coin in presents opportunities: The best time to buy is when everyone else thinks you shouldn't," he said. "The best time to sell is when everyone else thinks you should buy."

Smitha is among the more than half of auction buyers who are investors, not owner occupants. He awaits closing on it, then plans to fix it up and sell or lease it sometime next spring. Still, he said he expects to spend more than $40,000 to repair and renovate it.

That's an even greater risk in a down market — but he sees much the same upside that Tadeus and Lorraine Cyman saw 30 years ago, including a nice neighborhood, solid school district and ample living space.

"There are literally hundreds of these houses on the market in the Detroit area," he said. "It's sad but obviously I didn't create the problem. Someone has to buy these and fix them up. Rental Property Insurance

"Really, what people like me do, is return a house to the market in a livable condition that prior to that most people didn't want to walk through." Foreclosure Investors

Homes in Cities With Large FSBO Sellers

Homes in Cities with Large FSBO Sellers:
"Charlotte, N.C., Orlando, Fla., and Cincinnati, respectively, top the list of the fast-growing market for independent home sellers—those who are choosing to sell their homes without a real-estate broker, reports ForSaleByOwner.com. Here are three FSBO homes...." FSBO Sellers

for more information : Kentucky Insurance

Homes in Cities With Large FSBO Sellers

Homes in Cities with Large FSBO Sellers:
"Charlotte, N.C., Orlando, Fla., and Cincinnati, respectively, top the list of the fast-growing market for independent home sellers—those who are choosing to sell their homes without a real-estate broker, reports ForSaleByOwner.com. Here are three FSBO homes...." FSBO Sellers

for more information : Kentucky Insurance

ZILLOW gets first ERA Listings....

Zillow gets ERA listings
"In a pretty important precedent for the real estate industry, Zillow has signed an agreement with ERA Franchise Systems LLC, a real estate brokerage company, to display a bulk load of property listings on its website. About 80,000 property listings will be fed to Zillow from ERA

for more information : Kentucky Insurance Blog

on a daily basis. Terms of the deal gives ERA prominent placement for its listings on Zillow’s site, which has quickly become a useful resource for individuals researching various aspects of the real estate market on their own......"Zillow Real Estate Listings

ZILLOW gets first ERA Listings....

Zillow gets ERA listings
"In a pretty important precedent for the real estate industry, Zillow has signed an agreement with ERA Franchise Systems LLC, a real estate brokerage company, to display a bulk load of property listings on its website. About 80,000 property listings will be fed to Zillow from ERA

for more information : Kentucky Insurance Blog

on a daily basis. Terms of the deal gives ERA prominent placement for its listings on Zillow’s site, which has quickly become a useful resource for individuals researching various aspects of the real estate market on their own......"Zillow Real Estate Listings

Credit Crunch Still Has a Way to go in Kentucky

Credit Crunch Still has a way to go in Kentucky
"
Like most investors, I'm delighted when markets rise — even when, for the life of me, I can't figure out why. Until last week, that's how I was feeling. Since the market bottomed on Aug. 16, in the midst of a credit meltdown and market turmoil, it had soared to new highs. It was as if Fed Chairman Ben Bernanke had pulled out a magic wand, waved it to produce a half-point rate cut, and poof! The credit crisis was gone.
Then came Friday's 366-point decline in the Dow Jones Industrial Average, which ended the week down over 4%. ...." from SmartMoney

Credit Crunch Still Has a Way to go in Kentucky

Credit Crunch Still has a way to go in Kentucky
"
Like most investors, I'm delighted when markets rise — even when, for the life of me, I can't figure out why. Until last week, that's how I was feeling. Since the market bottomed on Aug. 16, in the midst of a credit meltdown and market turmoil, it had soared to new highs. It was as if Fed Chairman Ben Bernanke had pulled out a magic wand, waved it to produce a half-point rate cut, and poof! The credit crisis was gone.
Then came Friday's 366-point decline in the Dow Jones Industrial Average, which ended the week down over 4%. ...." from SmartMoney

Sweet Deals on New Homes in Kentucky

"During the housing boom, new-home builders were like the hosts with the hottest invitation in town. They could raise prices with every newly opened phase of a development and display a "take it or leave it" attitude toward buyers. Now, amid the downturn, homebuilders are the hosts everyone avoids. In July, new-home sales nationwide were down 10% from the previous year, and the National Association of Home Builders expects them to continue falling until the second half of 2008......" Kiplinger Personal Finance

visit Kentucky Insurance Blog

Sweet Deals on New Homes in Kentucky

"During the housing boom, new-home builders were like the hosts with the hottest invitation in town. They could raise prices with every newly opened phase of a development and display a "take it or leave it" attitude toward buyers. Now, amid the downturn, homebuilders are the hosts everyone avoids. In July, new-home sales nationwide were down 10% from the previous year, and the National Association of Home Builders expects them to continue falling until the second half of 2008......" Kiplinger Personal Finance

visit Kentucky Insurance Blog

Foreclosure Bargains Kentucky Insurance

Kentucky Insurance

"You've heard a lot (probably too much!) about real estate market problems and especially the rapid rise in foreclosures. But as a real estate investor you're picking up big-time "bargain" signals on your antennae. visit Kentucky-Insurance.com

The headlines are ominous: some 243,000 foreclosures in August, up 36% from July and 115% from August 2006. There's blood in the streets.

So how do you get from "there must be bargains out there" to "how much will I save, and where are the best bargains?"

I like to guide any buying decision as much as possible with the facts. But while lots of foreclosures are out there, how good an opportunity they might be was hard to know. Until now....." Bargain Foreclosures Vacant Homes

visit Kentucky-Insurance.com

Foreclosure Bargains Kentucky Insurance

Kentucky Insurance

"You've heard a lot (probably too much!) about real estate market problems and especially the rapid rise in foreclosures. But as a real estate investor you're picking up big-time "bargain" signals on your antennae. visit Kentucky-Insurance.com

The headlines are ominous: some 243,000 foreclosures in August, up 36% from July and 115% from August 2006. There's blood in the streets.

So how do you get from "there must be bargains out there" to "how much will I save, and where are the best bargains?"

I like to guide any buying decision as much as possible with the facts. But while lots of foreclosures are out there, how good an opportunity they might be was hard to know. Until now....." Bargain Foreclosures Vacant Homes

visit Kentucky-Insurance.com

Can a company cancel if my home is Vacant?

Yes, your insurance company may decide to cancel an existing policy on an insured property that becomes vacant. You will need to review your insurance policy to see if occupancy is a condition for coverage. Are you going to rent it? You'll need to acquire an insurance policy designed for rental units. The point is that your situation regarding that residence has changed and so you'll need to review your insurance options given the new scenarios. In some cases, you may need to find a new insurance company willing to insure the "property" under these new conditions. If your home is now vacant, contact Dick Watts for a Vacant Home Insurance Quote...502-245-3625

vacant home insurance

Can a company cancel if my home is Vacant?

Yes, your insurance company may decide to cancel an existing policy on an insured property that becomes vacant. You will need to review your insurance policy to see if occupancy is a condition for coverage. Are you going to rent it? You'll need to acquire an insurance policy designed for rental units. The point is that your situation regarding that residence has changed and so you'll need to review your insurance options given the new scenarios. In some cases, you may need to find a new insurance company willing to insure the "property" under these new conditions. If your home is now vacant, contact Dick Watts for a Vacant Home Insurance Quote...502-245-3625

vacant home insurance

Property Sales Outshine the Gloom and Doom

"The big question on the minds of real estate leaders is: "Can the velocity of sales continue in the fourth quarter and in 2008?"
"When 2007 is behind us and we look back in the rear-view mirror, I think it will be a year of two markets: the first half of the year, which was a continuation of the white hot real estate market characterized by rising prices, fierce competition, high leverage, and abundant debt and equity capital at historically low cost; and the second half, which was marked by a severe tightening of credit, widening spreads, lower leverage, and more stringent underwriting," the chairman of the national real estate practice at Greenberg Traurig, Robert Ivanhoe, said. "The pipeline for investment sales coming to market is way off, and this is not surprising. Unless an owner has a compelling reason to sell, why would it sell into an uncertain and perhaps falling market and capture significantly less in price than just three or four months ago?" from Property Sales

Property Sales Outshine the Gloom and Doom

"The big question on the minds of real estate leaders is: "Can the velocity of sales continue in the fourth quarter and in 2008?"
"When 2007 is behind us and we look back in the rear-view mirror, I think it will be a year of two markets: the first half of the year, which was a continuation of the white hot real estate market characterized by rising prices, fierce competition, high leverage, and abundant debt and equity capital at historically low cost; and the second half, which was marked by a severe tightening of credit, widening spreads, lower leverage, and more stringent underwriting," the chairman of the national real estate practice at Greenberg Traurig, Robert Ivanhoe, said. "The pipeline for investment sales coming to market is way off, and this is not surprising. Unless an owner has a compelling reason to sell, why would it sell into an uncertain and perhaps falling market and capture significantly less in price than just three or four months ago?" from Property Sales

Louisville bucks a national real-estate downturn

Louisville Kentucky Real Estate

"The median price of a home in the Louisville area has risen nearly 5 percent a year over the past two decades -- better than inflation, and about the same as the national rate.

And even this year -- in the midst of a national housing downturn -- the metro area is on track for a median price increase of at least 1 percent, according to the Greater Louisville Association of Realtors.

But as the national housing slump deepens, properties are sitting on the market longer, making sellers nervous and prompting some to slash asking prices and throw in such incentives as free wide-screen televisions or refrigerators to close deals......." Courier-Journal Louisville KY Real Estate

visit Kentucky-Insurance.com

Louisville bucks a national real-estate downturn

Louisville Kentucky Real Estate

"The median price of a home in the Louisville area has risen nearly 5 percent a year over the past two decades -- better than inflation, and about the same as the national rate.

And even this year -- in the midst of a national housing downturn -- the metro area is on track for a median price increase of at least 1 percent, according to the Greater Louisville Association of Realtors.

But as the national housing slump deepens, properties are sitting on the market longer, making sellers nervous and prompting some to slash asking prices and throw in such incentives as free wide-screen televisions or refrigerators to close deals......." Courier-Journal Louisville KY Real Estate

visit Kentucky-Insurance.com

Insuring Vacant Homes

Insuring Vacant Homes Can be Tricky

At a time when houses are taking longer to sell, some people must move into a new home before their old one is sold, leaving it to sit vacant with a for-sale sign out front.

Lost in the shuffle of furniture and belongings may be a crucial detail: your homeowners' insurance policy typically requires that you live in the home. So unless you make some changes, you may not be covered if there's a fire, agents say.

"They don't think about it," said Chris Oehrle, senior vice president of Weichert Insurance Agency in Morris Plains. "They have a lot of other things going on in their lives, and calling their insurance agent isn't the first thing on their mind."

There are options. Insurance companies offer policies that cover vacant properties for fire, vandalism, storm damage and even frozen pipes, said Keith Taege, account representative at Turton Signature Insurance in Point Pleasant Beach.

Oehrle said Weichert has written 20 percent to 25 percent more of this type of policy so far this year, compared with last year.

Why? Homes are not selling as fast as they did previously.

"People still need to move. You get a new job. You are transferred to another city," Oehrle said. "Since houses sit on the market a lot longer, the need for a vacant-home policy is greater."

Taege said he, too, has seen an increase in plans for vacant homes, but "not anything dramatic."

"Many people don't know if their coverage is in jeopardy because their property is vacant," Taege said. "They are not going to call an agent up and say, "By the way, my house has been sitting vacant for six months.' "

An insurance company might find out about a vacant home if it is inspected as part of the sale process, or if the owner files a claim, which could be rejected, Taege said.

Sharon Cooper, a spokeswoman for Selective Insurance Group Inc., said homeowners and insurers often find out as part of the process of signing up for homeowners' insurance for a new home. "You would be talking with your insurance company or your insurance agent anyway."

Homeowners' policies don't cover vacant homes. Often, insurers can delete vandalism coverage if a house has been vacant for more than 30 days, Taege said. State law says that an insurer can suspend homeowners' coverage when a property is vacant or unoccupied beyond 60 days.

Companies consider a vacancy a major change in the use of a home. It also increases the possibility of damage, including vandalism or frozen pipes.

"They become neighborhood clubhouses sometimes," Oehrle said.

Some insurers have different ways of handling the situation.

Selective tries to work with policyholders who move into a new home before the sale of their old home by continuing coverage with a dwelling policy for a "reasonable amount of time for the sale to occur," Michele Aromando, vice president of personal lines, said in an e-mail.

How long a policy is continued would be determined by factors including whether a contract is pending, if the home is checked regularly and if the utilities are on, she said.

Once notified by an owner or an agent, State Farm Insurance Co. generally gives a policyholder six to nine months to sell a vacant home or may extend it to the policy's expiration, spokesman John J. Baldino said in an e-mail.

"The company does understand that the real-estate market is cooling down," he said. "We will evaluate each unique case."

But if it is vacant for more than 30 days, the policy may only cover major losses, such as from fire, and not smaller problems such as vandalism or broken windows, he said. People can buy add-on coverage for vandalism and malicious mischief.

"Certain losses may go unnoticed for an extended period of time, which will escalate the severity of damages, whereas if the dwelling was occupied, the issue could be more readily identified and addressed," he said.

But State Farm won't renew a homeowner's policy if a house is vacant, and the company does not insure vacant homes, he added.

Taege said there are speciality insurance companies that cover vacant homes. The policies can be more expensive than a traditional homeowners' policy and can cover fire, storm damage and vandalism.

"If their house is sitting vacant for sale, it is important that they get in touch with their agent to make sure they get the proper coverage," he said.

As a last resort, homeowners also have the option of applying for vacant home coverage from the New Jersey Fair Access to Insurance Requirements Plan, or FAIR. Created by the state Legislature in 1968, it offers property coverage for major losses, such as fire and storm damage, said Steven Mutterperl, vice president of underwriting.

More expensive than insurance in the general market, it also includes a requirement that an owner board up a home to reduce the possibility of damage." from : Vacant Home Insurance

Call Dick Watts Insurance 502-245-3625 for a Vacant Home Insurance Quote

(disclaimer: Every insurance contract is different. Consult your own insurance policy and insurance contract for specific coverages. If you have a question about coverage in your specific policy contact your insurance agent. Coverages above are not included in all insurance policies.)

Vacant Home Insurance Kentucky 502-245-3625

Insuring Vacant Homes

Insuring Vacant Homes Can be Tricky

At a time when houses are taking longer to sell, some people must move into a new home before their old one is sold, leaving it to sit vacant with a for-sale sign out front.

Lost in the shuffle of furniture and belongings may be a crucial detail: your homeowners' insurance policy typically requires that you live in the home. So unless you make some changes, you may not be covered if there's a fire, agents say.

"They don't think about it," said Chris Oehrle, senior vice president of Weichert Insurance Agency in Morris Plains. "They have a lot of other things going on in their lives, and calling their insurance agent isn't the first thing on their mind."

There are options. Insurance companies offer policies that cover vacant properties for fire, vandalism, storm damage and even frozen pipes, said Keith Taege, account representative at Turton Signature Insurance in Point Pleasant Beach.

Oehrle said Weichert has written 20 percent to 25 percent more of this type of policy so far this year, compared with last year.

Why? Homes are not selling as fast as they did previously.

"People still need to move. You get a new job. You are transferred to another city," Oehrle said. "Since houses sit on the market a lot longer, the need for a vacant-home policy is greater."

Taege said he, too, has seen an increase in plans for vacant homes, but "not anything dramatic."

"Many people don't know if their coverage is in jeopardy because their property is vacant," Taege said. "They are not going to call an agent up and say, "By the way, my house has been sitting vacant for six months.' "

An insurance company might find out about a vacant home if it is inspected as part of the sale process, or if the owner files a claim, which could be rejected, Taege said.

Sharon Cooper, a spokeswoman for Selective Insurance Group Inc., said homeowners and insurers often find out as part of the process of signing up for homeowners' insurance for a new home. "You would be talking with your insurance company or your insurance agent anyway."

Homeowners' policies don't cover vacant homes. Often, insurers can delete vandalism coverage if a house has been vacant for more than 30 days, Taege said. State law says that an insurer can suspend homeowners' coverage when a property is vacant or unoccupied beyond 60 days.

Companies consider a vacancy a major change in the use of a home. It also increases the possibility of damage, including vandalism or frozen pipes.

"They become neighborhood clubhouses sometimes," Oehrle said.

Some insurers have different ways of handling the situation.

Selective tries to work with policyholders who move into a new home before the sale of their old home by continuing coverage with a dwelling policy for a "reasonable amount of time for the sale to occur," Michele Aromando, vice president of personal lines, said in an e-mail.

How long a policy is continued would be determined by factors including whether a contract is pending, if the home is checked regularly and if the utilities are on, she said.

Once notified by an owner or an agent, State Farm Insurance Co. generally gives a policyholder six to nine months to sell a vacant home or may extend it to the policy's expiration, spokesman John J. Baldino said in an e-mail.

"The company does understand that the real-estate market is cooling down," he said. "We will evaluate each unique case."

But if it is vacant for more than 30 days, the policy may only cover major losses, such as from fire, and not smaller problems such as vandalism or broken windows, he said. People can buy add-on coverage for vandalism and malicious mischief.

"Certain losses may go unnoticed for an extended period of time, which will escalate the severity of damages, whereas if the dwelling was occupied, the issue could be more readily identified and addressed," he said.

But State Farm won't renew a homeowner's policy if a house is vacant, and the company does not insure vacant homes, he added.

Taege said there are speciality insurance companies that cover vacant homes. The policies can be more expensive than a traditional homeowners' policy and can cover fire, storm damage and vandalism.

"If their house is sitting vacant for sale, it is important that they get in touch with their agent to make sure they get the proper coverage," he said.

As a last resort, homeowners also have the option of applying for vacant home coverage from the New Jersey Fair Access to Insurance Requirements Plan, or FAIR. Created by the state Legislature in 1968, it offers property coverage for major losses, such as fire and storm damage, said Steven Mutterperl, vice president of underwriting.

More expensive than insurance in the general market, it also includes a requirement that an owner board up a home to reduce the possibility of damage." from : Vacant Home Insurance

Call Dick Watts Insurance 502-245-3625 for a Vacant Home Insurance Quote

(disclaimer: Every insurance contract is different. Consult your own insurance policy and insurance contract for specific coverages. If you have a question about coverage in your specific policy contact your insurance agent. Coverages above are not included in all insurance policies.)

Vacant Home Insurance Kentucky 502-245-3625

Best Markets for Landlords

Best Markets for Landlords

"Whether they're waiting out the housing storm, or smack in the middle of it, an increasing number of Americans are choosing to rent, not own. And that's good news for landlords and investors.

Foreclosures and risky lending have dogged the housing market. As lenders have tightened their standards, attractive mortgages have grown harder to come by. Yet rental fundamentals have remained strong, especially in the 10 areas that made our list of Best Markets for Landlords. from Forbes

Best Markets for Landlords

Best Markets for Landlords

"Whether they're waiting out the housing storm, or smack in the middle of it, an increasing number of Americans are choosing to rent, not own. And that's good news for landlords and investors.

Foreclosures and risky lending have dogged the housing market. As lenders have tightened their standards, attractive mortgages have grown harder to come by. Yet rental fundamentals have remained strong, especially in the 10 areas that made our list of Best Markets for Landlords. from Forbes

Can't get a Mortgage, Try Credit Union

Can't get a mortgage? Try your credit union...
"As many mortgage lenders tighten loan underwriting standards and interest rates on jumbo mortgages rise, consumers may be able to find a friend in their credit union.
One reason: Many (although not all) of the mortgage loans made by credit unions are held in their own portfolios and therefore don't need to be sold to investors, said Bill Hampel, chief economist for the Credit Union National Association and Affiliates. ...." from Real Estate Journal

Can't get a Mortgage, Try Credit Union

Can't get a mortgage? Try your credit union...
"As many mortgage lenders tighten loan underwriting standards and interest rates on jumbo mortgages rise, consumers may be able to find a friend in their credit union.
One reason: Many (although not all) of the mortgage loans made by credit unions are held in their own portfolios and therefore don't need to be sold to investors, said Bill Hampel, chief economist for the Credit Union National Association and Affiliates. ...." from Real Estate Journal

Foreclosure help may be available

Foreclosure help may be available from Mortgage News...
"A lot of people are getting nervous about their mortgages, and some have real reason to worry as they approach the reset dates on their adjustable rate, interest only, or option payment loans.
We have talked before about avoiding foreclosure but it is probably time to do so again. Fortunately, there are a few new options out there for homeowners who are in trouble or fear they soon may be.
KNOW WHAT YOU ARE GETTING IN TO
Not knowing what may happen is a sure reason to panic. Get as much information as you can while you are still in control of the situation, i.e. before you ever miss a mortgage payment. The more you know the calmer and more responsive you can be; the sooner you know it, the more options you have. ...." learn more from Mortgage News

Foreclosure help may be available

Foreclosure help may be available from Mortgage News...
"A lot of people are getting nervous about their mortgages, and some have real reason to worry as they approach the reset dates on their adjustable rate, interest only, or option payment loans.
We have talked before about avoiding foreclosure but it is probably time to do so again. Fortunately, there are a few new options out there for homeowners who are in trouble or fear they soon may be.
KNOW WHAT YOU ARE GETTING IN TO
Not knowing what may happen is a sure reason to panic. Get as much information as you can while you are still in control of the situation, i.e. before you ever miss a mortgage payment. The more you know the calmer and more responsive you can be; the sooner you know it, the more options you have. ...." learn more from Mortgage News

Another Hurricane Season

Welcome back. I have not had time to post in a while but today as I was doing some "homework" I found that I needed to change the look of the blog, because with Google's new system, they had new template designs, and I had to choose one. I hope you like the look, though I know I don't have that many 'regular' readers. After all, not many people choose to while away their hours reading about insurance. I do have some regular readers of my other blog, www.aroundbabylon.com, but that's because I write about local happenings in our Village.

But while I'm here, I will write a short post. The market for homeowners insurance on Long Island is continuing to change. This past week we had our first call from someone who's being canceled by State Farm. They were told that State Farm is canceling people within a half mile of the water. I had heard that they stopped writing new business within a half-mile of the South Shore of Long Island but not that they were canceling anybody.

I say this not to pick on State Farm in any way. I happen to think they are pretty good company, and they are the biggest in auto and home insurance. Unfortunately, I just point it out to show what is happening in the Suffolk County and overall Long Island insurance marketplace. Even the largest insurance carriers do not have the capacity to absorb the business being shed by their competitors.

We need a lot of changes in not only the insurance business but also in the codes for new home construction and in other government regulations. But in the meantime, what we need most is a number of new carriers to come in the market and each take a small percentage of the business.

A big part of my job these days is keeping my eyes and ears open all the time for these new players. We wrote our first policy with one such insurance program this week. Our agents Association works hard on this issue all the time but Independent Insurance Agents only represent about 35% of the personal insurance market (meaning car and house insurance). And so we are not the "big players."

That would be Allstate, State Farm, Farmers and a few others. The problem is that, as I pointed out above, size is not an advantage here, because of the massive damage that would be possible in a Katrina size hurricane. Allstate is in favor of a government 'backstop', which is the only thing that would help them because of the sheer volume of business they wrote in coastal areas. But that idea has not caught on with most of the other companies, who would rather see a competitive market with risk-based pricing.

And while the public may debate about global warming, and whether it's caused by humans or not, the fact remains that sea levels are rising and temperatures are going up. And so the insurance companies simply don't know what's going to happen. Even if there is no such thing as global warming (and I personally think there is such a thing), we are at the very least in a period of rising temperatures and increased storm activity, even if it's just a natural cycle that will go away at some point. That point may still be 20 or 50 years away during which time we may or may not have some pretty strong storms. When you add that in to the amount of property value there is here on Long Island it's a pretty scary scenario.

Meanwhile, there are also a number of major insurance companies, who need no introduction here, who are chasing just the automobile insurance market without taking any share of the risk 0f catastrophic loss that mainly affects the property market. As these companies suck dollars from the insurance buying public, the effect is to weaken the financial positions of those companies who also take their fair share of the property insurance market.

We live in interesting times. As always, more information is available by visiting our web sites at www.NYInsuranceWithService.com and www.FloodInsuranceNY.com.

Free Credit Report

You can get a free credit report from AnnualCreditReport.com

""You can get a free credit report three times a year -- one from each of the three major credit reporting agencies. One of the newest FACTA provisions allows you to go online to AnnualCreditReport.com, the ONLY federally sanctioned service, and obtain a free credit report from Equifax, Experian and TransUnion.

If you obtain the free report from one company, say in January, another report from another company in May, and another from the remaining company in September, you've set up your own free monitoring system to keep tabs on what's doing on your credit report.

Don't be fooled by other websites with similar names. AnnualCreditReport.com is the ONLY federally approved website to get your free credit reports. Others will give you a free report, but only after you buy their services....." from RealtyTimes

Free Credit Report

You can get a free credit report from AnnualCreditReport.com

""You can get a free credit report three times a year -- one from each of the three major credit reporting agencies. One of the newest FACTA provisions allows you to go online to AnnualCreditReport.com, the ONLY federally sanctioned service, and obtain a free credit report from Equifax, Experian and TransUnion.

If you obtain the free report from one company, say in January, another report from another company in May, and another from the remaining company in September, you've set up your own free monitoring system to keep tabs on what's doing on your credit report.

Don't be fooled by other websites with similar names. AnnualCreditReport.com is the ONLY federally approved website to get your free credit reports. Others will give you a free report, but only after you buy their services....." from RealtyTimes

Coastal Homeowners Insurance - Has it stopped getting worse?

Apologies for not writing in a while. I'm not unhappy to say that it's because our office has been very busy. We're having other adventures as well, having just installed a new 'paperless office' software and hardware system. There is still paper on everybody's desk, but the piles are slowly going down and will not return.

In any event, there is news, and some rumors, to report. In the very short term, like right now, insurance companies are still tightening up and cancelling or non-renewing homeowners insurance for many people on Long Island and other coastal areas. In the past two weeks, two fairly large players shut off new business in Suffolk County and most of Nassau. This is a matter of how much capacity they have overall, not a fear of any one house getting damaged. Another major carrier, one of the biggest in the country, in fact, stopped writing within a half mile of the shore and rumor has it they may start canceling those within 1000 feet of tidal water.

Insurance companies can buy reinsurance to protect themselves from major catastrophes. But how much they can buy is limited to some extent by their overall size and capital reserves (that's grossly oversimplified but the longer explanation is so boring that it hurts). And the insurance regulators as well as the financial companies that give insurance carriers their precious A and A+ ratings are threatening to lower them if they don't reduce their waterfront and coastal insurance exposure.

Add in to those issues that there are a number of large carriers that have come in to the market just writing car insurance, taking no part of the risk in the homeowners insurance department, and most especially not the coastal properties. That has also reduced the capital and reserves of the remaining companies that write both auto and home insurance. That's why one of the big criteria that a certain company is using to decide who to cancel is whether they have their car insurance with them or somewhere else. They are giving preference to customers who also insure their cars along with the home, and why not? Most businesses are expected to give some discount or other incentive to those who buy more from them.

But there may be some light at the end of the tunnel. For the first time in a long time I heard at a meeting the other day some news of early discussions with insurance carriers who are not in the Long Island homeowners insurance market at all. That's what we need, some companies who can balance their exposure in other parts of the country against some new business in Nassau and Suffolk Counties. This will still take probably the rest of this year to show any real progress, but at least it's a rumor in the right direction.

Market Expert predicts end of real estate slump

"While part of the real estate downturn is behind us now, the buyer's market will likely continue for at least two more years, foreclosures are likely to surge and "we're heading into a year with some more price declines," a real estate consultant told an audience of building-industry professionals on Thursday.

John Burns, a consultant who presented a housing market outlook during the annual Pacific Coast Builders Conference in San Francisco, said that a combination of factors, including low interest rates and unconventional mortgage products, dug deep into the pool of future home buyers during the prolonged real estate boom. And the market is still adjusting, he said...." from Real Estate Slump

Market Expert predicts end of real estate slump

"While part of the real estate downturn is behind us now, the buyer's market will likely continue for at least two more years, foreclosures are likely to surge and "we're heading into a year with some more price declines," a real estate consultant told an audience of building-industry professionals on Thursday.

John Burns, a consultant who presented a housing market outlook during the annual Pacific Coast Builders Conference in San Francisco, said that a combination of factors, including low interest rates and unconventional mortgage products, dug deep into the pool of future home buyers during the prolonged real estate boom. And the market is still adjusting, he said...." from Real Estate Slump

April Pending Home Sales Index Fell

"The National Association of Realtors said its Pending Home Sales Index, based on contracts signed in April, fell 3.2 percent to 101.4 from an upwardly revised level of 104.8 in March. The index registered 99.3 in February 2003...." Home Sales
rental property

April Pending Home Sales Index Fell

"The National Association of Realtors said its Pending Home Sales Index, based on contracts signed in April, fell 3.2 percent to 101.4 from an upwardly revised level of 104.8 in March. The index registered 99.3 in February 2003...." Home Sales
rental property

Real Estate Rates Steady

"Long-term mortgage interest rates were mostly flat Wednesday, and the benchmark 10-year Treasury bond yield dipped to 4.87 percent.

The 30-year fixed-rate average held at 5.98 percent, and the 15-year fixed rate edged up to 5.69 percent. The 1-year adjustable was also up at 5.69 percent.

The 30-year Treasury bond yield sank to 5 percent.

Rates and bonds are current as of 7:15 p.m. Eastern Standard Time.

Mortgage rate figures are according to Bankrate.com, which publishes nightly averages based on its survey of 4,000 banks in 50 states. Points on these mortgages range from zero to 3.5...." Real Estate News

Real Estate Rates Steady

"Long-term mortgage interest rates were mostly flat Wednesday, and the benchmark 10-year Treasury bond yield dipped to 4.87 percent.

The 30-year fixed-rate average held at 5.98 percent, and the 15-year fixed rate edged up to 5.69 percent. The 1-year adjustable was also up at 5.69 percent.

The 30-year Treasury bond yield sank to 5 percent.

Rates and bonds are current as of 7:15 p.m. Eastern Standard Time.

Mortgage rate figures are according to Bankrate.com, which publishes nightly averages based on its survey of 4,000 banks in 50 states. Points on these mortgages range from zero to 3.5...." Real Estate News

Housing Correction Continues per Fed Reserve

"The correction in the US housing market will "probably persist longer than previously anticipated",

Federal Reserve policymakers judged at their last meeting, according to minutes released on Wednesday.

The minutes show that Fed officials meeting on May 9 were concerned by the decline in new home sales and the rise in the inventory of unsold homes relative to the rate of turnover...." Housing Correction Continues

"Since May 9, new home sales have ticked sharply up. However, with median new home prices sharply lower and existing home sales weak, the Fed may still think housing adjustment is likely to be more drawn out than it originally thought.

Fed officials said they expected that a flattening out of house prices nationwide would produce a "gradual increase" in the savings rate over the medium term. ..."

Housing Correction Continues per Fed Reserve

"The correction in the US housing market will "probably persist longer than previously anticipated",

Federal Reserve policymakers judged at their last meeting, according to minutes released on Wednesday.

The minutes show that Fed officials meeting on May 9 were concerned by the decline in new home sales and the rise in the inventory of unsold homes relative to the rate of turnover...." Housing Correction Continues

"Since May 9, new home sales have ticked sharply up. However, with median new home prices sharply lower and existing home sales weak, the Fed may still think housing adjustment is likely to be more drawn out than it originally thought.

Fed officials said they expected that a flattening out of house prices nationwide would produce a "gradual increase" in the savings rate over the medium term. ..."

Home Sales Soar

Sales of new homes surged in April by the biggest amount in 14 years, but the median price of a new home dropped by the largest amount on record. The mixed signals left no clear picture of whether the worst of the nation's housing slump is over....Home Sales Soar

Home Sales Soar

Sales of new homes surged in April by the biggest amount in 14 years, but the median price of a new home dropped by the largest amount on record. The mixed signals left no clear picture of whether the worst of the nation's housing slump is over....Home Sales Soar

Keep Cool While on the Road

Preparedness starts before you leave the drive way. Many extra cars will be on the road this summer. Accidents can happen at any time. Here are 10 steps to be prepared for an Auto Accident

1. Put a disposable camera and pen, paper in your glove box.Car insurance claims can be settled more quickly with good documentation.
2. Move your vehicle out of the roadway
3. Turn on Flashers or Emergency Lights
4. Check for injuries in the vehicle. If there is an injury call 911 immediately.
5. Call local police to report the accident.
6. Call your insurance company to report the accident.
7. Start documenting what happened.
8. Exchange Insurance Company Information
9. Exchange vital information.
10. DRIVE SAFELY
    

Keep Cool While on the Road

Preparedness starts before you leave the drive way. Many extra cars will be on the road this summer. Accidents can happen at any time. Here are 10 steps to be prepared for an Auto Accident

1. Put a disposable camera and pen, paper in your glove box.Car insurance claims can be settled more quickly with good documentation.
2. Move your vehicle out of the roadway
3. Turn on Flashers or Emergency Lights
4. Check for injuries in the vehicle. If there is an injury call 911 immediately.
5. Call local police to report the accident.
6. Call your insurance company to report the accident.
7. Start documenting what happened.
8. Exchange Insurance Company Information
9. Exchange vital information.
10. DRIVE SAFELY
    

NAR counters segment on Discount Agents

NAR countsers segment on Discount Agents:

"It didn't take the National Association of Realtors (NAR) long to come out swinging at CBS after the network aired a report on discount real estate brokers. The report, anchored by Leslie Stahl was aired on 60 Minutes last Sunday and can be seen in its entirety by visiting our the video link at the bottom of this article.

NAR certainly has some reasons to be aggrieved. Stahl started her segment by stating that real estate agents pulled in $60 billion in commissions last year. "They charge," she said, "a 6 percent commission on the price of every house they sell." She called the 6 percent "sacrosanct" and "sacred" and said that the rate has remained constant even as the price of houses had quadrupled over the years...."from Mortgage News Daily

NAR counters segment on Discount Agents

NAR countsers segment on Discount Agents:

"It didn't take the National Association of Realtors (NAR) long to come out swinging at CBS after the network aired a report on discount real estate brokers. The report, anchored by Leslie Stahl was aired on 60 Minutes last Sunday and can be seen in its entirety by visiting our the video link at the bottom of this article.

NAR certainly has some reasons to be aggrieved. Stahl started her segment by stating that real estate agents pulled in $60 billion in commissions last year. "They charge," she said, "a 6 percent commission on the price of every house they sell." She called the 6 percent "sacrosanct" and "sacred" and said that the rate has remained constant even as the price of houses had quadrupled over the years...."from Mortgage News Daily

Construction, Mortgage Sectors hit by lay off

Construction and Mortgage Jobs are down as a result of the slow down in the housing market. 45,000 residential housing construction jobs were eliminated in 2006.

"The downturn in the housing market appears to have caused more layoffs in construction and mortgage lending than real estate sales, the Mortgage Bankers Association reports.

"In a new analysis, "Trends in Housing-Related Employment," MBA researchers say that 45,000 residential housing construction jobs were eliminated in 2006, while employment in the mortgage lending industry in March was down by 19,000 jobs from a year ago.

Meanwhile, industries related to home sales experienced a net job gain averaging 6,900 a month in 2006, the MBA reports.

Dick Watts Insurance 502-245-3625 Rental Property

Insurance, Vacant Home Insurance, Landlord Liability

MBA researchers expect housing starts and home sales will "continue to moderate well into the first half of the year, reaching their troughs around the end of the third quarter or the beginning of the fourth."

Housing related employment will continue to decline in 2007, .." from Real Estate News

Mortgage Bankers Association

Link to Recent Employment Report

Mortgage News Daily

"We can insure your rental property, investment property, vacant home today, call Dick Watts Insurance @ 502-245-3625 for a free quote" Dick Watts Insurance

Construction, Mortgage Sectors hit by lay off

Construction and Mortgage Jobs are down as a result of the slow down in the housing market. 45,000 residential housing construction jobs were eliminated in 2006.

"The downturn in the housing market appears to have caused more layoffs in construction and mortgage lending than real estate sales, the Mortgage Bankers Association reports.

"In a new analysis, "Trends in Housing-Related Employment," MBA researchers say that 45,000 residential housing construction jobs were eliminated in 2006, while employment in the mortgage lending industry in March was down by 19,000 jobs from a year ago.

Meanwhile, industries related to home sales experienced a net job gain averaging 6,900 a month in 2006, the MBA reports.

Dick Watts Insurance 502-245-3625 Rental Property

Insurance, Vacant Home Insurance, Landlord Liability

MBA researchers expect housing starts and home sales will "continue to moderate well into the first half of the year, reaching their troughs around the end of the third quarter or the beginning of the fourth."

Housing related employment will continue to decline in 2007, .." from Real Estate News

Mortgage Bankers Association

Link to Recent Employment Report

Mortgage News Daily

"We can insure your rental property, investment property, vacant home today, call Dick Watts Insurance @ 502-245-3625 for a free quote" Dick Watts Insurance

A Quick Update

Just a quick update, not a whole new post, but I found it interesting. One of my main jobs is seeking out new markets for clients that we already have or might come across. In this vein, the other day I saw a market for various types of youth programs. We write a few of those, so I contacted the company.

I was told that they made a decision not to write anything on Long Island. This is related to the catastrophe storm stuff, but it's not like there are thousands of youth groups on Long Island in the same way that there are thousands of expensive homes. This is just another example of companies that are in panic mode.

Our First Storm Scare of the Season

This past weekend, Long Island and the surrounding areas got our first scare of this season. For those who don't realize it, we are already in the beginning weeks of what is considered hurricane season for our part of the world.

Here in Nassau and Suffolk counties, we got pretty lucky this past weekend. New Jersey was not so lucky and they continue to dig out of the mess. This was a nor'easter, as opposed to a tropical storm. There are a couple of things that were different. One is that it came from over the middle of the country, as opposed to tropical storms and hurricanes, which originate (strangely enough) in the tropics, out over water.

So that means that our deluge of rainfall was preceded by a bunch of snow being dropped on the middle part of the country. Usually they are laughing at us when we get hit by a tropical storm, because those rarely make it far inland. Once they do go over land, they quickly lose much of their strength.

The other thing that makes nor'easters so treacherous, especially here on Long Island and in the sort of inverted coastal corner that is the New York metropolitan area, is that the wind comes from a different direction than what is normal for us. Typically, our winds are the 'prevailing westerlies'. (Wind is named for the direction where it originates). That's why our weather patterns usually run from west to east. So if it's raining in central Pennsylvania, most times you can watch as the weather forecasters tell us how long it will be until that reaches us.

Even in this nor'easter, it came from the west relative to us. But the wind is from the northeast instead of the usual west. That means that to a certain extent, these high winds are blowing water in towards our south shores as they circulate around the storm's center! That's why nor'easters can cause heavy flooding even though it might not seem, walking out into our back yards, that things are all that horrible.

Let's hope this does not portend a more active hurricane season here on Long Island. In the past few weeks several more major insurance carriers have stopped writing in Suffolk County. The markets that are open are getting more expensive. And a couple of bad storms could really cause a crisis. We shall see.

As always for more information please visit our web sites at www.NYInsuranceWithService.com and www.FloodInsuranceNY.com.

Our new customer service blog

We are excited to announce our all new CUSTOMER SERVICE BLOG
Focused on your Customer Service stories & experience. Extremely satisfied with our service? Extremely dissatisfied visit us at CUSTOMER SERVICE

Our new customer service blog

We are excited to announce our all new CUSTOMER SERVICE BLOG
Focused on your Customer Service stories & experience. Extremely satisfied with our service? Extremely dissatisfied visit us at CUSTOMER SERVICE

Foreclosure Homes...

Foreclosure Homes:
"Some 900,000 homes in the U.S. are currently in foreclosure and real estate experts are forecasting as many as 1.5 million homes across the nation could go into foreclosure in 2007".....Foreclosures Increase

Foreclosure Homes...

Foreclosure Homes:
"Some 900,000 homes in the U.S. are currently in foreclosure and real estate experts are forecasting as many as 1.5 million homes across the nation could go into foreclosure in 2007".....Foreclosures Increase

KREIA - Real Estate Investing...

KREIA- The next KREIA meeting is scheduled for Thursday March 22 in Louisville KY featuring speaker Scott Britton "The Real Estate Rebel" and author of "The University of Real Estate Letter

more information about KREIA here: KREIA Real Estate Investors Louisville KY

National REIA Association

CincinnatiREIA

Kentucky Rental Property Insurance -we can insure your vacant home, Dick Watts Insurance 502-245-3625

Update:

Real Life Real Estate Investing Podcasts-
This is a podcast from a Cincinnati Real Estate Investor, covers wide variety of topics for property investors including commercial and residential....
'"
visit our all new calendar for Dick Watts Insurance

KREIA - Real Estate Investing...

KREIA- The next KREIA meeting is scheduled for Thursday March 22 in Louisville KY featuring speaker Scott Britton "The Real Estate Rebel" and author of "The University of Real Estate Letter

more information about KREIA here: KREIA Real Estate Investors Louisville KY

National REIA Association

CincinnatiREIA

Kentucky Rental Property Insurance -we can insure your vacant home, Dick Watts Insurance 502-245-3625

Update:

Real Life Real Estate Investing Podcasts-
This is a podcast from a Cincinnati Real Estate Investor, covers wide variety of topics for property investors including commercial and residential....
'"
visit our all new calendar for Dick Watts Insurance

The Homeowners Insurance Adventure Continues

These days, the insurance industry, especially in catastrophe hurricane exposed areas like Long Island, is changing very quickly. This is very different from not too long ago. Insurance companies and their employees tend to be very conservative, resisting changes sometimes for years before caving in. Agents tend to be the same, because our job is to protect against risk of loss, as opposed to many other business and personal models, where taking risks is part of the fun.

These days, change is fast and drastic. I have not posted here in about a month and a half, but in that time, several more carriers have stopped or severely cut back on writing home insurance on Long Island, especially within a half mile of the water. The latest one I heard about was State Farm, who stopped writing new policies within 2500 feet of the Bay. Adirondack Insurance recently severely limited their new policies in all of Suffolk County regardless of distance to water, and New York Central Mutual is not only limiting new policies, but they recently became part of the group that is actually canceling people.

Allstate continues to cancel thousands of policyholders, though they have made some efforts to bring other companies to the table so that their Long Island agents still have something to sell. There are almost no new players coming in to the New York market, except for some 'excess lines' carriers such as Lloyd's of London and Lexington Insurance Company. These carriers write policies at a much higher price, but at least they make coverage available.

If it turns out you are forced to seek insurance from one of these non-standard companies, be sure the agent you are dealing with has experience with them, especially with waterfront home insurance issues, and knows what to look for. We have seen policies that COMPLETELY EXCLUDE wind damage! What is the point of having insurance if you are not covered for a hurricane, which is just a big windstorm with a name? Some of these policies also carry exclusions for pets, underground oil tanks, and other unusual clauses. We have also seen policies that offer 'actual cash value' coverage on the structure itself, which takes depreciation based on age, as opposed to a 'regular' homeowners insurance policy which insured at replacement cost.

Of course, these policies still do not cover flood damage even though they may cost 2-3 times more than what was considered normal for Long Island home insurance only a couple of years ago. Flood insurance continues to be available through your local agent via the FEMA National Flood Insurance Program, and excess flood insurance is available from a number of companies, when the $250,000 maximum building coverage through the FEMA program is not enough.

Remember also that if your policy is through an excess and surplus insurance company, you are NOT protected by the New York State Guaranty Fund. That fund provides up to $1,000,000 in coverage if an insurance carrier defaults or becomes insolvent. Lloyd's prides itself on never having defaulted on a claim in over 100 of years of existence. And Lexington is part of AIG, the world's largest insurer. Still, the fact is they are not subject to regulation by the New York State insurance department, nor backed by the Guaranty Fund.

Another solution that is being used is the New York Fair Plan, otherwise known as NY Property or NYPIUA. That is a state-run operation that was designed to provide basic fire insurance for properties in blighted areas or which have other problems. But the policies provide NO liability insurance, no theft coverage, no coverage for burst pipes, and have many other restrictions. Again, in some cases, this may be your only practical option, but you need to be aware of just what you are buying. We have come across insurance offices here on Long Island telling their clients that they are getting a homeowners policy from NY Property, and nothing could be further from the truth.

As always, for more information, visit our sites at www.NYInsuranceWithService.com or www.FloodInsuranceNY.com.

How Good AreZillow's Home Price Estimates?

How Good Are Zillow's Home Price Estimates?...many of Zillow's estimates are fairly accurate according to this article.

In the year since its launch, Zillow Inc. has made millions of Americans familiar with computer-generated estimates of home values, created a new online addiction and become a staple of dinner-party chatter.But just how accurate is it? A Wall Street Journal analysis of 1,000 recent home sales shows that Zillow's "Zestimates" often are very good, frequently within a few percentage points of the actual price paid. But when Zillow is bad, it can be terrible -- off the mark by more than 25% on one in 10 homes. In one case it was off by $2 million.Zillow, based in Seattle, operates a Web site that offers free estimates and other online tools for real-estate buyers and sellers. It draws revenue from online advertising.

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RealEstateJournal | How Good Are Zillow's Home-Price Estimates?

technorati tags:realestate, mortgage, insurance, homeowners, insurance, kentucky

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How Good AreZillow's Home Price Estimates?

How Good Are Zillow's Home Price Estimates?...many of Zillow's estimates are fairly accurate according to this article.

In the year since its launch, Zillow Inc. has made millions of Americans familiar with computer-generated estimates of home values, created a new online addiction and become a staple of dinner-party chatter.But just how accurate is it? A Wall Street Journal analysis of 1,000 recent home sales shows that Zillow's "Zestimates" often are very good, frequently within a few percentage points of the actual price paid. But when Zillow is bad, it can be terrible -- off the mark by more than 25% on one in 10 homes. In one case it was off by $2 million.Zillow, based in Seattle, operates a Web site that offers free estimates and other online tools for real-estate buyers and sellers. It draws revenue from online advertising.

Free Homeowners Insurance Quote

RealEstateJournal | How Good Are Zillow's Home-Price Estimates?

technorati tags:realestate, mortgage, insurance, homeowners, insurance, kentucky

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Housing Starts Sink 14.3%

"Home construction fell to its lowest point in nearly 10 years during January in an unexpectedly large decrease that erased hopeful gains posted in two prior months.A separate report showed wholesale prices fell last month, after two strong months of gains, suggesting that underlying inflationary pressures remain broadly contained and are in line with the Federal Reserve's expectations. Core prices, however, which exclude volatile food and energy costs, rose slightly, suggesting there is potential for inflation. A third report showed a drop in consumer sentiment in a mid-February reading....."

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RealEstateJournal | Housing Starts Sink 14.3% To Lowest Point in 10 Years

technorati tags:homeowners, insurance, kentucky

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Housing Starts Sink 14.3%

"Home construction fell to its lowest point in nearly 10 years during January in an unexpectedly large decrease that erased hopeful gains posted in two prior months.A separate report showed wholesale prices fell last month, after two strong months of gains, suggesting that underlying inflationary pressures remain broadly contained and are in line with the Federal Reserve's expectations. Core prices, however, which exclude volatile food and energy costs, rose slightly, suggesting there is potential for inflation. A third report showed a drop in consumer sentiment in a mid-February reading....."

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RealEstateJournal | Housing Starts Sink 14.3% To Lowest Point in 10 Years

technorati tags:homeowners, insurance, kentucky

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What is a Hurricane/Wind deductible and why is it on my Homeowners Insurance policy?

If you are a resident of the Long Island area and have not looked at your homeowners insurance policy lately, you probably should. One of the big changes that has come about over the last couple of years is the addition of a special, higher deductible for hurricane damage. Sometimes the higher deductible is for 'wind and hail', not just specifically hurricane. It depends on the insurance company.

So what does this mean? Quite simply, it means that if Long Island is hit by a hurricane, instead of your standard policy deductible of $500 or $1000 (the amount you have to pay in a property loss, after which the insurance company pays) may instead be tens of thousands of dollars! Usually, the deductible is a percentage of the amount of insurance on your house, ranging from 2% to as much as 10%. By law, the insurance companies must put both the percent and the dollar amount on the face of your policy.

These are being dictated by the reinsurance companies, the place where insurance carriers go to protect themselves againts catastrophic losses (those that affect large numbers of policy holders at the same time). These are your giant off-shore companies, many based in Bermuda or in the London market. They are not subject to the same state regulation as our 'domestic' carriers, and so they can decide what they want to charge and what coverages they will provide, and our Long Island homeowners insurance carriers pretty much have to live with it or assume more risk themselves, which they don't want to do.

As an example, if your house is covered for $400,000 and you have a 5% hurricane deductible, you would have to shell out $20,000 after a hurricane before your insurance company would be involved. And one of the biggest problems is that there is no standardization among the insurance carriers. Some have deductibles that activate with ANY hurricane that hits Long Island, some for category 2 storms, some just for any wind or hail whether or not it's associated with a hurricane.

There has been some talk in the state legislature about allowing a tax deductible savings plan that people can put money into each year to prepare for paying these large deductibles if a hurricane hits. The Small Business Administration (SBA) may also get involved in offering low interest loans but that is not guaranteed at this point in time. You can also buy an insurance policy to cover the deductible, from Lloyd's of London, for about 10% of your deductible. So in our example above, it would cost $2000 a year to cover your $20,000 deductible, not a very good bet.

This is an evolving area and as insurance agents here on Long Island, and in particular in Suffolk County, we need to be paying attention. But as consumers, readers of this article need to look at their own policies and make sure you understand what coverage you have so it doesn't come as a surprise when the inevitable storm hits.

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