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Home Warranties Versus Homeowner’s Insurance: Why You May Want Both

Tue, 07 Sep 2021 22:51:54 GMT

Home Warranties Versus Homeowner’s Insurance: Why You May Want Both

If you’re new to home buying or homeownership, you may be a little bit confused about the must-haves and the nice-to-haves in home protection. Home warranties and homeowner’s insurance come in several varieties. They share some common features, but they’re definitely not the same thing. Let’s look at some of the similarities and differences between these two products so you understand your responsibilities as a homeowner and choose the products that best suit your needs.

What’s the Same?

Both home warranties and homeowner’s insurance involve paying a monthly or annual premium for protection for a specific amount of time. Both will protect you financially by covering certain kinds of damage to your home. When you make a claim, you will be charged a deductible, which is generally customizable with both products. But that’s pretty much where the similarities end.

What’s the Main Difference?

Home warranties, while they’re commonly referred to as policies, are not insurance plans. Insurance plans of every variety are heavily regulated by the National Association of Insurance Commissioners, a body made up of representatives from all 50 states. Regulations vary from state to state, but the NAIC sets rigorous standards that states must adhere to. Regulations stem from a historic act of Congress, the McCarran-Ferguson Act of 1945. The NAIC performs an important consumer protection function.

Compared to homeowner’s insurance, home warranties are the wild, wild west. Every home warranty company sets its own rules, just like every Italian restaurant makes its special version of marinara sauce. It’s up to consumers to protect themselves when they purchase a home warranty by understanding the specific terms of the plan they select. Careful comparison shopping is a must when it comes to home warranties.

The other primary difference between home warranties and homeowner’s insurance is that one is mandatory for any homeowner who has a mortgage. The financial institution that lends you money to purchase your house will insist that you carry homeowner’s insurance as a condition of borrowing. You have a choice, on the other hand, about purchasing a home warranty.

You Get Different Kinds of Protection

Homeowner’s insurance comes in two basic forms: liability insurance and property insurance. Your mortgage company will require you to carry both kinds. But property insurance is the type that’s analogous to a home warranty. So we’ll compare the two.

Both property insurance and home warranties protect against damage to your home. But for the most part, they cover different things. Homeowner’s insurance protects you when your home is damaged by such factors as fire, wind, and fallen tree limbs. Home warranties protect you if certain appliances and systems in your home need repair. Let’s take one example to illustrate the difference.

Let’s say a water pipe in your house breaks and the carpet in your home is damaged in the process. The property insurance section of your homeowner’s policy will cover the cost of replacing your carpet. It won’t cover the cost of replacing your faulty plumbing. By contrast, a home warranty plan will pay your plumbing bill (up to the limits of your policy). But it won’t pay for you to replace your carpet.

Property insurance also covers your possessions if you are burglarized and damage to your home if you are vandalized. Home warranties do not offer that protection.

Coverage Type and Deductible Options

Both home warranties and homeowner’s insurance allow you to tailor certain policy features to suit your needs. For example, with a home warranty, most companies allow you to select coverage for systems, appliances, or both. Some offer pre-set packages, while others let you pick and choose the items you need covered. If you own a pool, you can elect pool repair coverage. Homeowner’s insurance companies also permit you to add “riders” to your policy to cover items that are not normally covered in a basic policy. If you keep a lot of expensive jewelry or antiques in your home, it’s a good idea to look into adding riders to your policy, so you’ll be fully protected.

Many home warranty and all homeowner’s insurance companies allow you to customize your deductible. In the case of a home warranty, the deductible you pay is actually a service call fee. Home warranty deductibles generally range from $60 to $125. Homeowner’s insurance policies usually offer deductible choices between $500 and $2000, but some policies establish your deductible based on a percentage of your home’s value. Choosing a higher deductible will bring the cost of either type of policy down.

Know Your Coverage Limits

With a homeowner’s policy, you can generally choose your coverage limits. Your mortgage lender will require that you carry insurance that meets or exceeds the fair market value of your home. If you live in a home that wouldn’t necessarily fetch a high price on the market, but would cost a great deal of money to rebuild—such as in the case of a historic home that features high-quality or unique craftsmanship—it’s best to choose coverage limits that exceed your home’s value. There are two types of property insurance: Actual Cash Value (ACV) and Replacement Cost Value (RCV) . Here’s the difference. Let’s say your home suffers a catastrophic fire. If your home features expensive but older appliances, ACV would cover the cost of buying a used gourmet fridge or stove. RCV would cover the cost of purchasing a brand new stove with the same features as your old stove. Similarly, if your home features elaborate plaster molding around your light fixtures, ACV coverage would pay to have a store-bought product installed in your home. RCV coverage would pay out enough for you to hire an expert plasterer to rebuild your molding to original spec.

Home warranties, by contrast, usually have very specific limits around how much they will pay out to repair or replace specific items like a washing machine or heating system. Often those limits will not cover the entire cost of replacing an appliance or system. That’s why you should carefully study the coverage limits of any home warranty. RCV coverage is not an option with home warranties. Furthermore, many home warranties limit the total amount they will pay out in a single policy term, which is usually one year. It’s up to consumers to decide whether a home warranty is worth the price. The good news is that home warranties cost less than homeowner’s insurance. A comprehensive systems and appliances plan could cost you as little as $500, while the average cost of homeowner’s insurance on a $250,000 home is around $1400. Of course, that includes both liability and property insurance. Home warranties provide no liability protection. But they do cover items not covered by property insurance. That’s why many homeowners decide to carry both.

Get Some Expert Advice

If you’re new to homeownership, your realtor can be an invaluable resource, helping you make smart financial decisions throughout the home buying process. For example, you may be able to negotiate with a home seller and persuade him or her to include a home warranty in your purchase and sale agreement. That’s a growing trend but not all sellers follow suit. In addition, realtors often have relationships with homeowner’s insurance companies and can steer you in the direction of a great agent. Financial advisors are also typically well-versed in insurance. Your home is likely one of your largest financial assets and a financial advisor can help you protect it and afford it . And that’s what home warranties and homeowner’s insurance are all about.

Pool Water Level Dropping? Is It a Leak or Evaporation?

Tue, 30 Mar 2021 00:32:47 GMT

Pool Water Level Dropping? Is It a Leak or Evaporation?

Did you know that the number one way swimming pools lose water is through evaporation? According to the Department of Energy, 70% of water loss in pools and spas is through evaporation. Of course, you also have leaks - which probably accounts for the second reason. But, how can you tell the difference? How do you prevent swimming pool evaporation?

Are you losing water because of everyday science or are you losing water because you have a leak somewhere? Honestly, both answers warrant an explanation, don’t you think? Let’s dig a little deeper.

Losing Water Through Evaporation

Everyone knows that evaporation is just the process of liquid forming into vapor. But, how does that fit in with our swimming pool? Evaporation occurs whenever you expose wind or air to the surface of your pool. So in short, this applies to every pool, all the time. Water molecules rise to the surface, form into a vapor and eventually get released into the air.

What causes pool water evaporation?

There are three main factors for evaporation: Exposure, temperature and humidity levels.

• Exposure. The more your pool is exposed to the sun and wind, the more evaporation you'll see. A screened pool will evaporate less than an unscreened pool. A pool surrounded by a fence, trees or a structure will evaporate less than a pool that is facing an open sky. A pool that isn't on a lake, golf course or other large piece of land will evaporate less than a pool that is.

• Temperature. Throughout our cooler months in Southwest Florida (typically mid-December thru February), we see a significant contrast between the high and low temperatures, sometimes more than 25 degrees. This allows your pool to heat up during the day and evaporate all night. In fact, if the sun is down and you turn on your pool light, you will likely see a mist above the pool. This is the water evaporating and it does this all night, every night.

• Humidity. High humidity equals very low evaporation, whereas low humidity equals high evaporation. The air is like a towel or a sponge: The drier it is, the more water it can hold. The best way to describe this is from my wife, Kim, who is a Hair Stylist. Ladies, you know your perfectly styled curls will fall as soon as you walk outside here in the summer, and you can expect very low evaporation from your pool.

These factors vary greatly from area to area and from season to season. Another example is: Arizona summers are dry, whereas, here in Southwest Florida, between daily showers and 100 percent humidity, summers are wet. Therefore, evaporation is high during an Arizona summer, but very low during a Florida summer.

Luckily for us, there are ways to fight evaporation.

1) Cover Your Pool and Spa

The best way to prevent evaporation is by purchasing a pool cover. According to a study by the National Pool Industry Research Center (NPIRC), pool owners can save a considerable amount in water savings by covering their outdoor swimming pools.

In fact, pool covers can reduce evaporation by 95%! Honestly, that alone is enough proof for me to consider purchasing a pool cover. However, there are other benefits to adding a cover to your pool.

In addition to preventing pool evaporation, pool covers also keep the warmth inside your pool. I mentioned earlier that when you’re losing water via evaporation, you’re also losing a lot of the heat generated by your heater or heat pump. The cover traps the heat inside the pool and reduces the energy demand on your pool equipment. Additionally, owning a pool cover reduces the number of chemicals you’re using, reduces the debris in your pool, and reduces the amount of time you operate your pump and filter.

Keep in mind, there are several different covers you can purchase for your swimming pool. Here is some more information on the types of covers and their benefits. You can invest thousands in a high-end automatic cover that extends across the pool with the push of a button. Or, you can drop about a hundred bucks for a lightweight solar blanket. These thin plastic blankets float on the pool surface and go onto the pool manually or with a reel.

2) Turn Your Pool Water Features OFF

I love pools that have extra cool features like waterfalls and jets. However, if you want to help prevent pool evaporation, we recommend turning them off from time to time. Waterfalls and jets increase the amount of water exposed to sun and air. As a result, they are also more prone to evaporation. Laminar jets or cascading waterfalls have the greatest chances of higher evaporation. We recommend turning your water features off, especially when they are not in use. This can save you money on water and on chemicals. Of course, when you’re ready to entertain guests again, turn those babies on again!

3) Lower Your Water Temperature

As we now know, warmer water evaporates at a faster rate than cooler water because the molecules are moving faster. As the temperatures drop, the warm water evaporates even faster. In warm water, molecules turn into mist, which evaporates quickly. This process accelerates when the temperature of the pool water is higher than the air’s temperature. Cold water is more resistant to evaporation. Keep this in mind if you are trying to prevent evaporation and save money on water, however, if you are like me, I hate cold water! If this is the case for you too, my recommendation is to purchase a pool cover!

How Can You Tell If You’re Losing Water From Evaporation?

One sure way to determine whether your pool is losing water from evaporation or from a leak is to perform a water bucket test. To perform a bucket test, complete the steps below.

1. Fill your pool to its normal level. Using a standard bucket, fill it to 1 inch from the top with pool water.

2. Place the bucket in the pool at about five inches. You can set it on the first or second step of your pool.

3. Mark the water level inside the bucket and the water level outside the bucket. (You can use a marker or piece of tape)

4. Return after 24 hours to compare the inside water level on the inside to the water outside.

If the water level outside of the bucket dropped more than the water level inside of the bucket, then you likely have a pool leak. At this point, we recommend calling a professional.

Key Points:

• Make sure to check the bucket at the 24-hour mark to avoid inaccurate results. If it rains, wait until it stops to perform the test. It will obviously give you inaccurate results, as well.
• Remember, losing water to evaporation is normal - until it isn’t. Purchasing a swimming pool cover is the ideal method to prevent swimming pool evaporation. Not only does it prevent water from escaping your pool, it also traps any heat your heater or heat pump generates.
• If you’re losing more water than you think evaporation allows for, perform a water bucket test. The bucket test is the easiest and cheapest trick homeowners have available.

References:

https://www.angi.com/articles/pool-level-dropping-it-leak-or-evaporation.htm

http://osceolaaquaticsinc.com/is-your-pool-water-evaporating-or-is-it-leaking/

https://articles.bluehaven.com/saving-water-in-swimming-pools-5-ways-to-cut-pool-evaporation

What Is A Home Watch Professional?

Fri, 05 Mar 2021 03:36:59 GMT

A Home Watch Professional has been known by many names: house watcher, house checker, home concierge, caretaker, absentee home watcher, property watcher, and so on. Regardless of the name, a “Home Watch Professional” will perform scheduled visits to your vacant home while you are away. A ‘Real Deal’ Home Watch company will have specific Home Watch training and be an insured and bonded professional business.

A Home Watch Professional is trained to locate and report any issues they observe at your home back to you. There have been many ways to achieve this (i.e. phone calls, emails, text messages, paper checklists left at the client’s home, and computer software). There are several types of computer software/apps out there to aide in this process, but the preferred software utilized by Naples Premier Home Watch, LLC, is the Quick Report Systems. This software uses QR codes (QRIDs) that are assigned to each specific property. How it works is: the QRID can only be scanned while actually on location at the property that is specifically going to be checked. This is due to a Geo-fence around the property. This proves to the client that the user (Home Watch Professional) is actually on location and is completing the job they are being paid to do.

After the QRID is scanned with any Apple or Android device, it allows the checklist that was previously set up by the Home Watch Professional, to open and let the user, to check off each individual area that will be checked. Special notes, directions, questions and pictures related to questions can be added. Any irregularities located, can also be documented by adding notes and pictures to the report as well. After the report is completed it then will be sent to the site Administrator for final review, before it is sent to the client’s dashboard. For more information, click the provided link: https://youtu.be/4rJnFRhSC5c

When the Home Watch Professional visits your home, they will thoroughly check for any issues and send you a report on the status of each visit. The report will let you know that everything is OK at your home or bring your attention to any minor/major issue that should be taken care of and to prevent costly damages from occurring.

You should then be IMMEDIATLEY contacted, if the Home Watch Professional locates an issue that requires your immediate attention such as a leak, damage, or a rodent issue. You will be able to instruct them on how to deal with the issue at hand. They will be able to manage the resolution of the problem on your behalf using the contractors that you specify, or by using someone from their trusted network of subcontractors and professionals.

This is the difference between a true Professional Home Watch Reporter and any “Neighbors Doing Favors” or “Hobbyist Home Watchers”. The Truth is in the Pudding!! It does not matter if a friend, neighbor, or hobbyist home watcher has watched your home for ten+ years. It ONLY takes one time! If they miss something, go on vacation, decide they want to get a round of golf in, or perhaps go fishing for the day instead of checking your home small damage can turn into major damage very fast. Like Murphy’s Law suggests, “Anything that can go wrong, will go wrong” and that’s the time it will happen. Is your neighbor insured?!? Have they been watching your home according to what your homeowner’s insurance company requires?!? In 50% of Florida Homeowner’s Policies, it requires the home to be checked, no less then every 14 days, in some cases less. Failure to follow this requirement can result in an insurance claim being denied.

Did you know that a leak in an ice maker supply line can pump up to a gallon of water per minute?!? Easily, more than 1,000 gallons in 24 hours. Imagine if that leak is undetected for days, weeks, even months. Another scenario is: Does your untrained home watcher know the proper temperatures to maintain 50% humidity in your home?!? Failure to properly maintain this recommended humidity percentage could lead to a mold outbreak and/or humidity bloom, costing tens of thousands of dollars to repair, not to mention if the home has any valuable paintings and leather goods (i.e. purses) in it. A total loss is likely. Professional home watch services typically cost between $45-$65 dollars per visit. Checking a home based on this pricing, bi-weekly visits (twice per month), can protect you home for a month for the cost of a nice dinner here in Naples, FL.

For peace of mind that your home is being protected properly, hire a Home Watch Professional! Damage will occur but Home Watch Professionals are the difference between damage and disaster!

Contributor Vincent Saputo

What Is Home Watch?

Fri, 05 Mar 2021 03:29:43 GMT

Home Watch is a service offered to people who own multiple homes. It is very popular in areas that have a large percentage of seasonal residents like Florida, Arizona, California, North Carolina, South Carolina and many others with a heavy seasonal, and tourist, population. It was originally considered assistance by “Neighbors Doing Favors.” These were the individuals who lived in a community year-round and would offer a helping hand to their snowbird friends.

As it gained popularity, many started to take payment and promote Home Watch as a business. Unfortunately, these individuals often did not establish a business entity, get insurance coverage, or operate with an agreement or contract with their clients. They gained the name of “Hobby Home Watcher.”

This started to change around 2008 when Home Watch became more popular. The first trade organizations were launched as well as companies that offered professional training and consulting. The seasonal homeowners became better educated and learned to vet a business before handing over the keys to their investment property.

Home Watch is not a regulated business as of the writing of this article in 2018. Many companies state that they are Licensed, Insured, Bonded. There is no specific license for home watch and stating such is considered misleading. However, the homeowner should confirm that the Home Watch provider is properly insured, bonded, and expect to sign a contract that defines their responsibilities as well as those of the homeowner.

A vacant home is a vulnerable home. The homeowner needs to learn about the proper care of their home based on the Home Watcher’s knowledge of potentially damaging situations. There are now many trained, qualified, Home Watch Professionals operating excellent businesses. Their job is to conduct a systematic, comprehensive, visit of the home looking for any irregularities. A trained Home Watch Reporter knows how to recognize damage in the early stages before it becomes a disaster. They have resources to help remedy the situation.

There was a tipping point in the world of Home Watch in 2017 when Hurricane Irma hit South Florida. It was estimated that the storm caused at least $50 billion in damage, making Irma the costliest hurricane in Florida history, surpassing Hurricane Andrew. Many people did not have a Home Watch service or engaged a company that did not know how to prepare homes in advance of the storm or who were ill-prepared to help in the aftermath.

This event catapulted the awareness of the importance of working with a “Real Deal” Home Watch Company.

Home Watch is often confused with House Sitting, Home Inspection, and Property Management.

Home Watch is now a true, recognized, and respected profession. It is on the way to becoming an actual industry. Homeowners can find many resources to learn about the service as well as how to locate a qualified, credentialed, Home Watch Reporter.

The Ultimate Home Watch Interview Guide

Fri, 05 Mar 2021 01:34:12 GMT

Helping the seasonal homeowner hire the right home watch provider.

There are more people who own second, third, and fourth homes than ever before. Those who own these homes are known by many names: Seasonal Homeowner, Snowbird, Absentee Homeowner, Seasonal Resident, and Winter Visitor.

There can be many challenges with multiple home ownership. Your unoccupied home is a vulnerable home. Engaging the services of a Home Watch Professional is an excellent way tohelp protect your investment.

If you recently purchased your seasonal home; this guide is for you!

If you already have a seasonal home and are looking for a Home Watch provider for the first time; this guide is for you!

If you have used a Home Watch provider, in the past, and are looking for a change; this guide is for you!

"You don't know, what you don't know, until you know what you don't know."

It is all about making an informed decision before you hand over the keys to your home.

The Ultimate Home Watch Interview Guide, is designed to help you do just that.

Contributor Diane Pisani

Click Image Below for Full Guide