Sunrise Homes & Renovations, Inc.

Does Your Homeowner’s Insurance Policy Cover Storm Damage?

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Does Your Homeowner's Insurance Policy Cover Storm Damage?If you own a home, you must make sure it is properly protected. Hazards can change throughout the year, and one of the biggest threats during the spring is the arrival of frequent thunderstorms. If your home is damaged by a severe storm, it might be covered by your homeowner’s insurance policy. You need to take a closer look at your policy to see if you have the right coverage.

An Overview Of Home Insurance

An insurance policy is supposed to protect you against potentially severe financial consequences. For example, if your home is damaged, the repair bills could be tens of thousands of dollars. If you have home insurance, your policy may pay for this type of damage.

The right insurance policy can repair damage to your roof, fix your walls, and even replace the furniture that might have been damaged. Typically, your home insurance policy will have an initial deductible, which is an out-of-pocket expense. Then, once your deductible has been met, your home insurance policy should cover the rest up to the limit of its coverage. 

Does Home Insurance Cover Storm Damage?

It isn’t unusual for a home insurance policy to cover potential storm damage. At the same time, you need to understand the limitations of your policy and the circumstances under which a claim might be paid out. For example, your home insurance policy might protect your home in the event of a thunderstorm, but it may not protect your home in the event of a flood from a nearby river or lake. You should also make sure you have enough financial coverage in your home insurance policy to repair your home and replace any damaged property. 

How To Check A Home Insurance Policy

Start by reading through your policy to see what is covered in what is not. There might be a lot of jargon in the policy. If you have a difficult time understanding the wording, you should contact your insurance company and speak to a representative. 

You should keep a copy of your home insurance policy in a fire-proof container or safe. This will make it easier for you to refer back to the policy if you have questions later or in the event of an emergency. 

 

What’s Ahead For Mortgage Rates This Week – April 11, 2022

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What's Ahead For Mortgage Rates This Week - April 11, 2022Last week’s economic news included remarks given by Federal Reserve Board Governor Lael Brainard and the release of the minutes of the most recent meeting of the Fed’s Federal Open Market Committee. Weekly readings on mortgage rates and jobless claims were also released.

Federal Reserve Leaders Prepared to Address Inflation

Lael Brainard, a Governor of the Federal Reserve Board, addressed the central bank’s concerns over rapidly rising inflation in her remarks made at a financial conference in Minneapolis, Minnesota. “Currently, inflation is much too high and is subject to upside risks. It is of paramount importance to get inflation down” Ms. Brainard concluded. “The Fed is prepared to take further action if inflation indicators and expectations indicate that such action is warranted.”

Ms. Brainard described the Fed’s strategy for controlling inflation as a series of interest rate increases and rapid reductions to the Fed’s balance sheet that may occur as soon as the Federal Open Market Committee meets in May.

Federal Open Market Committee Meeting Minutes Indicate Plan for Slowing Inflation

Minutes of the March meeting of the Fed’s Federal Open Market Committee outlined the Fed’s plans for controlling runaway inflation. The plan is not set in stone yet, but “many” FOMC members were on board with the proposals for reducing the Fed’s portfolio by $95 billion a month after three months and raising the Fed’s key interest rate by 0.25 percent during future FOMC meetings. Committee members originally planned to raise the Fed’s interest rate by 0.50 percent at each meeting but reduced proposed rate hikes to 0.25 percent due to the potential impact of the war in Ukraine.

Mortgage Rates Rise, Jobless Claims Data Mixed

Freddie Mac reported higher mortgage rates last week as the average rate for 30-year fixed-rate mortgages rose by five basis points to 4.72 percent; the average rate for 15-year fixed-rate mortgages rose by eight basis points to 3.91 percent. Rates for 5/1 adjustable rate mortgages rose by six basis points and averaged 3.56 percent. Discount points held steady and averaged 0.80 percent for fixed-rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages.

Fewer new jobless claims were filed last week than in the prior week with 166.000 new claims filed as compared to 171,000 initial claims filed in the previous week. Continuing jobless claims inched up with 1.52 million ongoing jobless claims filed as compared to the previous week’s reading of 1.51 million continuing claims filed.

What’s Ahead

This week’s scheduled economic news includes multiple readings on monthly and year-over-year inflation and the University of Michigan’s consumer sentiment index. Weekly readings on mortgage rates and jobless claims will also be published. 

Renovating on a Budget? Check Out These Equity-boosting Inexpensive Home Upgrades

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Renovating on a Budget? Check Out These Equity-boosting Inexpensive Home UpgradesThe idea of embarking on home renovations may strike many homeowners as an expensive one, but there are plenty of ways that you can easily upgrade your home without spending a lot of money. If you’re looking for improvements that will truly (and frugally) improve the value of your home, here are a few do-it-yourself options you may want to consider.

Change The Lighting

There are few small fixes that will improve the look of your home like lighting, so one of the best things you can do for the overall look of your house is change out some of your bulbs. Instead of going for a light that will look dingy or orange, choose a tone that’s not too bright but will still illuminate your rooms and highlight their best features naturally. Much like a coat of paint, the right light can change everything about the way a visitor will view your home.

Consider A Cabinet Makeover

One of the most outdated features in a kitchen is the kitchen cabinets, and it’s also one of the first things that a potential homebuyer will notice when they enter the room. Fortunately, installing new cabinets doesn’t have to be a huge job that involves a lot of time. Instead of getting a floor-to-ceiling makeover and a construction crew, consider upgrading the doors and hinges or picking a new color for a difference that will instantly improve the room.

Pull Out The Paint Brush

Painting may be one of the least popular household tasks because it takes so much time, but outside of lighting, few things will improve the look of your home like a new coat of paint. While it’s important to ensure that you stick with a relatively neutral shade so that it doesn’t overwhelm the viewer, it will easily upgrade the look of your home and hide any unsightly damage to the wall. It’s also a good idea to remember the front door since it’s the first thing homebuyers will notice!

The word ‘renovation’ often makes people see dollar signs, but it doesn’t have to cost an arm and a leg to upgrade your home. By adding a new coat of paint or upgrading the lighting, you’ll be well on your way to a more modern look. If you’re currently renovating your home and are hoping to put it on the market soon, contact your trusted real estate professional for more information.

How Can You Invest in Real Estate?

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How Can You Invest in Real Estate?Many people believe that investing in real estate is something reserved only for the super-wealthy. In reality, this is not the case. Investing in real estate is a smart idea because property can generate a consistent cash stream while providing significant capital appreciation combined with tax breaks. There are multiple ways to invest in real estate, and no single path is better than the others.

Consider Real Estate Investment Trusts (REITs)

A real estate investment trust is a low-cost alternative to buying an entire property. Usually shortened to REIT, this is a company that allows investors to pool their money together before the company purchases multiple properties. REITs bring in money by renting, leasing, or selling the properties they own. Instead of individual investors having to purchase properties on their own, they can pool their money with other investors, reducing the barrier to real estate investing. 

Rent Out Residential Properties

When people think about real estate investing, this is usually the first thing that comes to mind. You can purchase a residential property and rent it out to people. This generates recurring income that can cover overhead expenses tied to the house, such as the mortgage. Then, as the property goes up in value, you build wealth. You can decide to rent the property out for short-term stays, which is a popular option with a vacation home on the lake or the beach. Or, you can have long-term renters if you want more income security.

Think About Flipping Houses

If you have ever watched a TV show about houses, you have probably run into flippers. This is the practice of purchasing a distressed property, fixing it up, and then selling it for a significant profit. If done correctly, you can make a lot of money with a much shorter time horizon; however, this requires a lot more time and effort, as you will need to coordinate a lot of contractors to fix the property and list it in a reasonable time frame. 

Consider Investing in Real Estate

These are just a few of the many ways you can invest in real estate. Think about the benefits and drawbacks of each option, and decide which is best for you. 

 

Advice For Purchasing A House On A Single Income

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Advice For Purchasing A House On A Single IncomeEven though a lot of people have two incomes they can use to purchase a house (theirs and their partner’s), this is not necessarily required. There are lots of people who want to take advantage of current interest rates to purchase a house, and some people are trying to do it on their own. Even though it can be a challenge to buy a house with only one income, it is certainly not impossible. There are several tips that can make it easier for everyone to afford a house with just a single income. 

Always Check Your Credit Score

If you want to buy a house on a single income, make sure you check your credit score first. Your credit score is a reflection of your financial health. The higher your credit score is, the better your chances of having your loan application approved. You can check your credit score for free once per year from any of the major credit bureaus. You need to know what your credit score is and you need to correct any inaccuracies on your credit report before you apply for a home loan. 

Explore Government Loan Programs

Next, if you are buying a home for the first time, you should explore government loan programs. For example, you might be able to apply for an FHA loan, which could allow you to purchase a home for as little as 3.5 percent down. That way, you do not necessarily need to save up a 20 percent down payment to buy a house. Depending on your location, there could be other government loan programs that can make it easier for you to buy a house.

Ask For a Co-Signer To Help 

Even if you plan on paying for the mortgage yourself, you may find it easier to buy a house if you have someone who can co-sign for your loan. This is particularly helpful if your credit score isn’t quite high enough to qualify for a loan. As long as your co-signer has a solid credit score, they might make it easier for you to get your loan application approved. Furthermore, you might be rewarded with a lower interest rate than you could otherwise get on your own. 

 

The Top Ways To Use Home Equity

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The Top Ways To Use Home EquityEquity is a powerful tool. As homeowners pay off the mortgage, the amount of equity in the house grows. As the house appreciates in value, homeowners accrue even more equity. Then, homeowners can tap into this equity for a variety of purposes. What are a few of the ways homeowners might be able to use this equity? 

Purchase A New House

One of the top ways homeowners can use the equity in their existing home is to purchase a house that better suits their needs. Even though homeowners may find a house that is right for them now, it might not be right for them 10 years from now. For example, homeowners may have children, meaning they need more bedrooms. In this case, homeowners can leverage the equity in their house to purchase a bigger home. 

Complete A Renovation Project

Homeowners can also use the equity in their home to complete a renovation project. If homeowners have a significant amount of equity in the home, they might be able to refinance their house, tapping into the equity to complete the project. For example, homeowners might want to renovate the kitchen. Or, they may want to add a gym or a home theater. They might even want to complete an addition. Instead of having to save up the cash to do so, homeowners might be able to tap into their equity to do this.

Launch A New Business

Some homeowners might decide to use the equity in their homes to launch a new business. Getting a new business off the ground can be expensive, and the cost of taking out loans can be daunting. Instead of having to take out a loan, homeowners can use the equity in their existing house to launch that business. 

Fund Higher Education

The cost of higher education can also be expensive. Even though parents might save up to send their kids to college, the cost of education is growing quickly. Instead of having to take out a student loan, consider tapping into the equity in the house to pay for that college education. Homeowners may want to work with a financial advisor that can help them make the right decision for themselves and their children.