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Buying a condominium can be a smart start to being a homebuyer, without many of the maintenance hassles of owning a detached home.

Insurance through the homeowner association, or HOA, covers some areas of the complex, though each homeowner must have their own insurance to cover certain parts of their property and their belongings.

Heres a breakdown of how condo insurance works:

Group insurance: Condo association insurance usually covers common areas, such as a pool, lawn and building exteriors.

This insurance is called the master policy and doesnt include whats inside your condo unit ” such as a break-in, water damage to your kitchen walls, or someone slipping on your wet bathroom floor.

Condo unit insurance: Everything inside the walls, such as the plumbing and electrical wiring, is covered by your individual insurance policy, though some master policies may cover from the paint on the inside of your unit to the outside walls.

An individual homeowners insurance policy will also cover your belongings that you keep inside your condo, along with any fixtures or improvements you make to your unit.

When valuing your possessions, consider the replacement cost in todays dollars for new items, not what they originally cost. Some policies only reimburse for actual cash value, which is the depreciated value, and not the total replacement costs.

Insurance coverage for personal belongings and the physical building typically range from $25,000 to $100,000, with premiums at $400 to $600 per year. Owning artwork or other collectibles could require additional coverage.

Liability coverage included in condo insurance will typically cost $20 a year for $300,000 in liability coverage.

Loss-assessment insurance: This covers insurance expenses not covered by the condo association, or in excess of the group coverage. You may need it if the condo association insurance doesnt cover a major repair and the HOA doesnt have enough money to pay for the repair. Instead of paying extra for the fixes, your loss-assessment coverage would cover you.

Loss of use: This type of insurance pays for a place for you to stay if your unit is totaled or severely damaged by a tornado or some other disaster. Coverage may be limited to a dollar value or your actual costs for a specified time.

When determining how much insurance you need for your condo, start with your condo associations master policy and then fill in the holes from there. This real estate information will help ensure your investment and your belongings are well protected.

Published with permission from RISMedia.

Game rooms are all about fun, but creating the perfectspace for recreationin your new house is serious business. In this digital age,a lot of parents are opting to feature a game room in their homes in order to promote family time that doesnt involve a screen. Its also ideal for social occasions, as guests will love relaxing and enjoying some friendly competition.

Rack Em Up
Pool is perhaps the most popular table game around. Its not only fun, but it also takes real skill, making it a game you can really dive into. It can take years to master the game, but playing as a novice is also enjoyable, and there are many books and videos devoted to games like 8-ball, 9-ball and Bank Pool. There also are options in terms of cost and quality.

Other Table Games:
f youre interested in something thats a bit easier to play and is more kid-friendly, there are other games to consider. Foosball is a popular table version of soccer that is fast and fun, and kids love it.Other options includetable shuffleboards games, high-end air hockey and dome hockey setups.

Arcade Action, No Quarters Necessary
Many like to go retro with their game rooms by featuring a pinball machine or classic video games. Used pinball machines can be found on eBay at various price points. Also available are video games, such as Space Invaders, Pac-Man, Asteroids and Donkey Kong, and some arcade units offer multiple games. Put some thought into your choice; these arent cheap so you want to be sure the machine will be used often.

Bulls Eye
Darts isa great option for a game room because quality boards can be found at reasonable prices. And if you become passionate about the game, you can buy pricier, more precise darts and other equipment. There are even digital and electronic dart boards that keep score for various dart games.

Pick a Theme
One of the fun things about creating a game room is choosing how to decorate it. Sports is a popular theme that allows you to hang posters, signage and photos of your favorite team. You can also make your game room a shrine to movies, music, games or your favorite travel destination.

Thats Entertainment
Games and entertainment go hand in hand, which is why many game room retailers also sell theater-style seats. If your game room is sizable enough, consider adding a TV with comfortable seats. And for music, how about a jukebox filled with everyones favorite hits?

The right game room could turn out to be the most popular space in your house, because the family that plays together, stays together.

Published with permission from RISMedia.

Are you living with termites without even knowing it? The wood-devouring insects can often go undetected and wreak havoc on a home, potentially compromising its structural integrity and causing thousands of dollars worth of damage. Even worse, because termite damage is considered preventable, it typically isnt covered by homeowners insurance. That puts the onus of any necessary treatment and home repairs on you and your wallet.

Luckily, there are steps you can take to help prevent a termite infestation. Follow these 10 tips from the National Pest Management Association (NPMA):

1. Seal cracks and holes on the outside of the home, including entry points for utilities and pipes.

2. Keep basements, attics and crawl spaces well ventilated and dry. Termites need moisture to thrive.

3. Repair leaking faucets, water pipes and exterior AC units.

4. Repair fascia, soffits and rotted roof shingles. Some termites are drawn to deteriorating wood.

5. Replace weather stripping and loose mortar around basement foundation and windows.

6. Divert water away from the house through properly functioning downspouts, gutters and splash blocks.

7. Maintain an 18-inch gap between soil and any wood portions of your home.

8. Store firewood at least 20 feet away from the house and 5 inches off the ground.

9. Routinely inspect your homes foundation for signs of mud tubes (used by termites to reach a food source), uneven or bubbling paint, and wood that sounds hollow when tapped.

10. Monitor all exterior areas of wood, including windows, doorframes and skirting boards for any noticeable changes.

If you suspect a termite problem, the NPMA urges you to contact a pest professional right away to confirm that a problem exists and determine the best course of action.Also, consider scheduling a professional inspection annually to catch potential termite problems before they get any worse and, thus, more expensive to fix.

Published with permission from RISMedia.

A mortgage lender looks at several factors when deciding whether to approve a loan application. A lending institution wants to know that a borrower has both the ability and the will to repay debts. If you have a high income and a low credit score, a lender may have reservations about approving your mortgage application.

How a Lender Looks at Income and Credit Score
A lender adds up the costs of housing, car payments, student and other loans, and credit card payments and divides the total by an applicants gross monthly income to arrive at a percentage known as the debt-to-income ratio. Some lenders require a low debt-to-income ratio, while others are much less stringent.

A credit score reflects a persons payment history and use of credit. Someone may have a high income, but that doesnt mean much if the individual spends money frivolously instead of paying bills. A low credit score is a red flag that can cause a lender to think that a loan applicant doesnt know how to handle money responsibly. A person with a low credit score is more likely to make payments late or miss them altogether than someone with a higher credit score.

How to Qualify for a Mortgage With a High Income and Bad Credit
Credit reports sometimes contain errors because information was reported incorrectly, wasnt reported at all, or got mixed up with someone elses information. Youre entitled to receive a free copy of your credit report from each of the three major credit bureaus once a year. Check your reports for errors that could be lowering your scores. If something doesnt look right, dispute it so the mistake can be corrected.

You can also hold off on buying a house and take some time to pay down debt and boost your credit score before you apply for a mortgage. Thatll help you get a better interest rate and avoid paying tens of thousands of dollars in additional interest over the life of your mortgage.

If you want to buy a house soon but are concerned about your low credit score, you can apply for a mortgage through a lender that is forgiving. The Federal Housing Administration, U.S. Department of Veterans Affairs, and U.S. Department of Agriculture offer loans to borrowers with low credit scores. If you have bad credit, you should expect to pay a higher interest rate than someone with a better credit score. Making a large down payment could reduce the loan-to-value ratio and make the loan less risky for the lender, which might help lower your interest rate.

Explore Your Options
Lenders will look at your entire financial picture when deciding whether to approve your mortgage application. A combination of a high income and a low credit score may be a red flag. Work on improving your credit, explore options for borrowers with poor credit, or save as much as possible for a down payment to improve your chance of being approved for a home loan.

This article is intended for informational purposes only and should not be construed as professional or legal advice.

 

Published with permission from RISMedia.

Homeowners insurance companies adjust rates from time to time based on a variety of factors. Some of those factors are directly related to individual policyholders, and others have nothing to do with specific homeowners. If youve received a letter from your insurance company informing you that your rates will go up soon, you might be able to get them back down.

Why Do Insurance Companies Raise Rates?
If your insurance company sent an inspector to your home and shortly afterward informed you that your premiums would go up, its probably because your home needs repairs. For example, damage to the roof and foundation can make your house more likely to suffer serious damage in a storm. If you make repairs now and provide proof to your insurance company, it may consider your home less risky and reward you by lowering your premiums.

Filing several claims, especially in a short period of time, can cause an insurer to raise your premiums. In addition, a large number of claims submitted by people in the same town or neighborhood can raise your rates, even if you didnt file a claim yourself. An area that is prone to severe storms or has a lot of burglaries often means higher insurance rates for everyone.

Your insurance score, which companies use to set rates, depends partly on your credit score. If your credit score has dipped, paying down credit card balances and making payments on time can boost your score and may eventually lead to lower homeowners insurance premiums.

Sometimes insurance companies raise rates across the board if they paid out unusually large sums of money for claims related to natural disasters. Insurers may also increase premiums if construction costs have risen substantially because settling claims will be more expensive. Companies want to spread the cost around to everyone so they can still earn a profit.

What to Do About a Planned Premium Increase
If your homeowners insurance company has notified you that it plans to raise your rates, call to ask why. If the insurer mentions any reason specifically related to your home or your area, look for changes you can make. For example, if there have been a lot of break-ins in your neighborhood recently, offer to install deadbolts and a security system in exchange for a reduction in premiums. Repairing your home to make it less susceptible to storm damage can also lower your rates.

You might qualify for discounts if you have multiple policies through the same company, havent filed a claim in several years, or are a first-time homebuyer or a senior citizen. Ask your insurance company if you qualify for any discounts. If you currently have a low deductible, raising it could automatically lower your premiums. Explore all options with your insurer.

Published with permission from RISMedia.