If you live in the eastern states, you recognize the former concept—mortgage. If you live in the western states, where there is a different legal usage, you recognize that the lender on your home is a holder of your mortgages trust deed as the security interest on your home loan. Either way, the fundamental concept is the same. You, the named insured under your homeowners policy, have a home loan. You want to insure your interest in your home. Your home loan lender, which holds a security interest in your home to the extent of the unpaid loan balance, wants you to assure that you insure your home so as to protect its security interest. Not only that, your lender requires that you do so and that you cause it to be named an additional insured in the loan documents of your home loan. (more…)

You may choose to insure your property with a dwelling policy (the three major dwelling policies are commonly known as DP-1, DP-2, and DP-3). The major problem with a dwelling policy is that it does not automatically provide liability coverage, as homeowners insurance does. If you are trimming a tree on the property and a branch falls and damages a neighbor’s house, (more…)

The Browns’ case stresses the dangers of not understanding your insurance coverage, not having a copy of your life insurance policy on hand to review, and most importantly, counting on anyone a mortgage lender, a personal attorney, a financial adviser or an accountant to make decisions about life insurance coverage for you. (more…)

Sometimes older people transfer their homes, in full or in part, to their children as gifts, for tax purposes or in preparation for becoming eligible for some state-funded health care programs. While your accountant or financial adviser might have solid reasons for recommending you do this, he or she may be unaware of the insurance implications. (more…)

Perhaps you already chose homeowners insurance coverage to protect your home from damage or even a financial loss in case of injury. Remember that insurance is a service and service only. And as with any other service out there, you should always analyze the insurance market value for money they spend. (more…)

Pay particular attention to issues involving liability. This coverage protects your assets against lawsuits. Review the liability limits of your insurance policies. In the past most of the personal liability risks you faced probably came in some degree from your business or work. For most people, homeowners insurance coverage offers their main protection from non-work related personal liability. As you spend more time away from work, (more…)