Homeowners' insurance isn't a luxury, it's a necessity. In fact, most mortgage companies won't make a loan or finance a residential real estate transaction unless the buyer provides proof of coverage for the full or fair value of the property (most of the time this is the purchase price).

The good news is that although you can't (and shouldn't) avoid purchasing homeowners' insurance, there are ways to minimize the cost.  Here are six ways to make sure you get the right coverage and consequent compensation for your home:

1) Maintain a Security System and Smoke Alarms: A burglar alarm that is monitored by a central station, or that is tied directly to a local police station, will help lower the homeowner's annual premiums, perhaps by 5% or more. In order to obtain the discount, the homeowner must typically provide proof of central monitoring in the form of a bill or a contract to the insurance company.
Smoke alarms are another biggie. While standard in most modern houses, installing them in older homes can save the homeowner 10% or more in annual premiums. Of course, even more importantly, in case of fire, they could save your life!

2) Raise Your Deductible: Like health insurance or car insurance, the higher the deductible the homeowner chooses, the lower the annual premiums. However, the problem with selecting a high deductible is that smaller claims/problems such as broken windows or damaged sheetrock from a leaky pipe, which typically will cost only a few hundred dollars to fix, will most likely be absorbed by the homeowner.

3) Look for Multiple Policy Discounts: Many insurance companies give a discount of 10% or more to their customers that maintain other insurance contracts under the same roof (such as auto or health insurance). Consider obtaining a quote for other types of insurance from the same company that provides your homeowners' insurance. You may end up saving on two annual policy premiums.

4) Plan Ahead for Construction: If the homeowner plans to build an addition to the home or another structure adjacent to the home, he or she should consider the materials that will be used. Typically, wood-framed structures (because they are highly flammable) will cost more to insure. Conversely, cement- or steel-framed structures will cost less because it is less likely to succumb to fire or adverse weather conditions.  Another thing that most homeowners should, but often don't, consider is the insurance costs associated with building a swimming pool. In fact, items such as pools and/or other potentially injurious devices (like trampolines) can drive annual homeowners' insurance costs up by 10% or more. This may seem like a small price to pay given the joy these items bring, but it is still something that should be considered by the homeowner prior to purchase or construction.

5) Pay Off Your Mortgage: Obviously this is easier said than done, but homeowners that pay off their mortgage debts will most likely see their premiums drop. Why? The simple reason is that the insurance company figures that if you own the home outright, you'll take better care of it.

6) Make Regular Policy Reviews and Comparisons: Investors should, at least once per year, compare the costs of other insurance policies to their own. In addition, they should review their existing policy and make note of any changes that might have occurred that could lower their premiums. For example, perhaps the homeowner has disassembled the trampoline, paid off the mortgage, installed a burglar alarm or installed a sophisticated sprinkler system inside his or her home. If this is the case, simply notifying the insurance company of the change(s) and providing proofs in the form of pictures and/or receipts could significantly lower insurance premiums.  Look for changes in the neighborhood that could reduce rates as well. For example, the installation of a fire hydrant within 100 feet of the home, or the erection of a fire substation within close proximity to the property may lower the homeowner's annual premiums.

Additional Items
 
The following are characteristics that all homeowners' insurance policies should carry:

Guaranteed Replacement Value Insurance:  All homeowners should buy "guaranteed replacement value" homeowners insurance. This means that their home will be rebuilt in the event of a disaster - no matter what the cost. Of course, many of you may be thinking that this is what would happen anyway, right? Wrong. Because home values have increased substantially in recent years, it probably costs more to build a house than when you originally purchased your home and your insurance policy. The good news is that guaranteed replacement value policies will absorb the increased costs and provide the homeowner with a cushion if construction prices increase.

Endorsements: Legally speaking, an endorsement is an amendment to the basic homeowner's policy. Practically speaking, it is a way for homeowners to ensure that their high-priced possessions will be insured in the event of a disaster.For example, a woman wanting to insure her diamond engagement ring would obtain an endorsement to her homeowners' policy in order to prove not only that she owned the ring, but also its value. She would do this by obtaining a formal appraisal of the ring from a jeweler, and then sending the appraisal to the insurance carrier for special notation on the insurance contract. Formal endorsements such as these will help in the claims process and ensure that the homeowner gets the full dollar value of the item if it is lost, stolen or damaged in a disaster. Typical items that are endorsed in addition to jewelry include furs, antiques and collectibles.

Wrapping It All Up

To avoid any discrepancies and any delays in receiving your insurance money for your home, make sure you document everything. Photograph and videotape the entire contents of your home and the home itself. Then store these photos and videotapes in a fireproof box. In addition, consider storing a copy of the photos at a relative's house, and/or in a safety deposit box. Doing this will help homeowners compile an inventory of their possessions (which is what the insurance company will demand) after a disaster. It will also, by extension, dramatically shorten the length of the claims process if a disaster does occur.

Homeowners' insurance is a must! There are ways to save money, but there are also some features that homeowners shouldn't skimp on. Make sure you know the difference.  Contact Modern Insurance Marketing, Inc. with any questions/concerns you may have regarding your homeowners' policy. 

Tips on Caring For Your Aging Parents

Do not feel alone if you are caring for your aging parents because you are one of 50 million Americans in the same boat. Whether they are staying with you or in another location, if you have the responsibility for their care, prepare yourself for a time consuming and emotional experience.

 

Tips for the Son or Daughter

Caring for your aging parents can be a very draining and exhausting ordeal. A support system between your brothers and/or sisters and friends will help lighten the load. Caring for aging parents is impossible to do on your own, especially if you work full time. You must come to the realization that at some point in time, one or both of your parents might have their normal thoughts, behavior, and attitudes changed radically by disease.  If this happens, caring for your parent can be like dealing with a complete stranger. For your own emotional and physical health, you will need an occasional break. Having your own parent not recognize you or think you are somebody else can come as a big shock to your system.

 

Tax Implications

Consulting with an accountant and/or attorney, if you are caring for aging parents, is time, energy, and money well spent. By making sure a will is drawn up and estate laws examined in detail, you will be free to give loving care for your aging parents. Depending on your circumstances, you may find that you can claim your parent as a tax deduction.

 

Taking Away the Car

This usually happens before the house is taken away. There are many things that have a negative effect on an older driver. Diminishing eyesight, physical handicaps, and mental disease can all make it very dangerous for these people to drive, both for their own safety and the safety of others. Very seldom does the parent voluntarily give up their car keys. Often times it is best just to make the car disappear over night.

 

Taking Away the House

Get ready for the battle of your lifetime when you determine, for their own safety, that your parents must be moved to a care facility. A home can be a very dangerous place for an older person who forgets things easily or has physical limitations. Falling down the stairs or leaving the stove burner on can have devastating effects.

 

You Are Not a Parent

While you are a care giver for your aging parents, you can never be a parent to your parent. The most that you can do is respond with love to their needs as they responded to your needs when you were young. Always remember that caring for your aging parents requires patience, patience, and more patience. 

Expert Tips for Healthy Dining Out

One of the hardest challenges dieters face is dining out and being social—without sabotaging their weight loss. Believe it or not, you can eat out 365 days a year and still maintain a healthy body weight. It all comes down to the choices you make—like watching portion sizes and ordering a piece of fish grilled, not fried. 

Try these 15 simple suggestions to make dining out a healthier, yet still fun, experience:

1. Choose the restaurant yourself. Instead of blaming someone else when you end up at a restaurant with unhealthy choices, take charge and be the planner. It's not always an option, especially if it's a business dinner, but at least make it happen the majority of the time.

2. Check the menu online. So many restaurants today have menus available online. Before you even step in the door, figure out what the healthy options are and if you should even bother going. Decide ahead of time what you're going to order, and stick with it.

3. Don't skip meals, but do grab a snack. Too many people feel that if they're going out to dinner, they need to starve themselves earlier in the day. Don't skip meals—in fact, have a well-balanced snack before you go. The last thing you want is to wind up in a restaurant feeling starved. If that happens, you'll almost definitely make poor choices.

4. Order first. If you can be the first person at the table to order, do it. As we all know, sometimes we're easily swayed by our peers; by ordering first, we're less likely to change our selection.

5. Read the menu carefully and don't be afraid to ask questions. There's nothing wrong with requesting changes to a menu. Remember, you're the one who is paying the bill. For example, if you see sautéed spinach on the menu but your dish comes with mashed potatoes, ask if you could substitute. But most importantly: Be nice about it.

6. Say no to bread. Bread at the table almost always means more calories for the meal. Simply say "no thank you" when the server wants to place some directly on your plate. If a basket is on the table, move it beyond arm's reach.

7. Start with a salad. The healthiest beginning to any meal is often a salad. It helps fill you up, so you're less likely to finish your entire entrée.

8. Order dressing and sauces on the side. No need to eat your food plain—but it's best to be the one in the driver's seat. When dressings and sauces are on the side, you can flavor your food while controlling how many extra calories you consume.

9. An appetizer can make a great entrée. Many places serve huge portions, and it's tough not to finish these, especially if they taste good. Some appetizers make really delicious entrées, and they're half the size. If you are in the mood for pasta, see if they have a half order available; to make up for the smaller dish, get an extra veggie on the side.

10. Go fishing. Fish is typically a reliable choice compared to many other entrées. But fattier fish, such as tuna and salmon, can still be high in calories, especially if the portions are huge. Opt for a leaner white fish if you dine out often, like flounder, shrimp, halibut, or scallops.

11. Remember that alcohol counts. It affects calories and your ordering skills. Having a snack beforehand is very important, because it helps keep alcohol from going straight to your head and making you more vulnerable to poor menu choices. Aim for a one cocktail mindset and stay away from any fruity drinks. (These are often highest in calories.)

12. The more forks, the merrier. If you must order dessert, share it. Dessert shouldn't be eaten on a regular basis unless you're dining out with a party of six and sharing just one treat. Even sorbet, served usually in three scoops, ought to be shared.

13. Try fruit for dessert. Sometimes fresh fruit isn't listed on the menu, but if you ask, you might be surprised that it's available. Just pass on the whipped cream.

14. Don't finish everything on your plate. Being a member of the clean plate club is passé. If you're a fast eater and finish before anyone else at the table, don't hesitate to ask a server to remove your plate before you eat more than you should. Maybe it isn't proper etiquette to have your plate removed before anyone else's, but that's OK.

15. Bring home leftovers. Leftovers are nothing to be ashamed of. On the contrary, they're something to be proud of. They make a statement that says "I was able to stop when I was full"—a really hard thing for most of us to do. However, if you made a poor meal choice that night, no need for a doggy bag. Just leave it behind. 

On some occasions, it's OK to overlook these tips—for instance, on a birthday or anniversary. But if you go out weekly, it's time to buckle down and make some changes. Don't let dining out sabotage your health; but rather, embrace it.

Five Insurance Tips for College Students and Their Parents

As you send your son or daughter back to school with a U-Haul full of expensive items, it's a good time to make sure all of their items are covered. While most of the time these items are covered under the parent's homeowners insurance, find out what you need to know about insurance on campus.

Most students are already covered -- For many students living on campus, there is no need for additional coverage since they will be covered under their parent's homeowners policy. This coverage is dependent on the student still calling mom and dad's address their primary residence and parents should call their insurance company or agent to double check that their student is covered. 

But, you may want to buy extra coverage -- For students with expensive laptops, HDTVs and other expensive items in the dorm room, you should consider investigating a "Valuable Items Endorsement," which provides blanket coverage between $10,000 to $20,000. The price, and name, of this coverage will vary from company to company, but you should expect to pay in the neighborhood of $100 to $120 a year.

Don't forget about that engagement ring -- If your son or daughter got engaged over the summer, now would be the perfect time to make sure that they insure the engagement ring against loss, theft and accidents that could dislodge the stone from its setting. Depending on the value of the ring, it may be covered under a Valuable Items Endorsement, but if the value begins to approach $10,000, you should be sure to have it covered separately.

Discount for the car left at home -- If your child can't take their car to campus for the first year or two, and the car will sit in the driveway at home for most of the year, call your agent and ask for a discount. While you are on the phone, find out if the company offers a good-student discount to further increase your savings.

It's a different ballgame off campus -- The second your student moves off campus, the situation changes and they are no longer covered under their parent's homeowners policy. Instead, they will need to purchase a tenant's or renter's policy to cover the items in their apartment or rented house. These policies can be quite affordable -- at $15 to $20 a month.  This type of policy covers all the stuff you own that would fall out of your apartment if you "turned it upside down and shook it." You can also add the valuable items endorsement to a renter's insurance policy if you need the additional coverage.

Bottom line - contact an agent at Modern Insurance Marketing, Inc.  Given the variances from policy to policy and from company to company, it's important to have a conversation to make sure you have the coverage you need. It should only take a few minutes, and it will save you a headache down the road if something does happen.

Finally, take basic steps to protect your investments. Invest in an inexpensive laptop lock and use it when you leave your laptop on your desk. Also, keep track of the items in your dorm room by taking a picture of all of your gadgets and their serial numbers in case something does happen and you need to file a claim.

National Grandparents Day is this Sunday!

Here are five gifts we suggest you consider giving for Grandparents Day, coming up on Sunday, Sept. 8:

1) A home-made card.
Sure Hallmark may say it more eloquently, but nothing comes close to your kids making a card. If they are too old to draw pretty butterflies, how about just pasting a family photo on the cover? Home-made cards rule in retirement villages and find permanent homes on refrigerator doors. The ones from Hallmark get relegated to the drawer with last year's holiday cards, never to be looked again until they are tossed out.

2) Your time.
Nothing beats spending time with Grandma and Grandpa. And do it on their terms. Yes, you may prefer to throw a big bbq and invite the neighbors and other friends over, but that makes it more about you and less about Grandma and Grandpa. How do you know what the grandparents want to do? You ask them, that's how.

3) Listen.
Sometimes we treat our elderly relatives like problems that need to be managed. We stop seeking their wisdom and engage with them on a very superficial level. They, in turn, tell us what hurts them. They complain about the loud woman next door, the rude desk clerk at the doctor's. Make Grandma happy and ask her opinion on something. Ask what she would do about some situation you are facing. And listen to her answer.

4) Get them on Skype and/or teach them to text.
The Internet helps shorten the distance between us and our older relations. And if grandparents are willing to meet the teen-agers half-way, communications will be more frequent and pleasant. A Skype call where you can see the caller far surpasses a phone call where you are talking to a receiver. And a quick text -- "how'd you do on that chem test you were worried about?" -- brings Granny closer into your teen's life.

5) Make a family video.
Encourage your kids to ask Granddad to talk about his life as a kid and make a video of his answer. It's a memory you will cherish forever.