We are always looking to benefit more financially from Real Estate. We also
Need to realize that the whole intent is for us to be more financially better off.
We need to look at all aspects of our expenses and be savier when it comes
to what we are spending our funds on. In so doing we discussed today insight on
spending less on typical types of insurance so that we can have better coverage with
less costs in premiums.
Home Insurance Insight:
Look at our dwelling coverage amounts for our home and potential rental properties.
The $ amount should not equal the value of what the property could be sold for. It should
Be a lower amount that equals the true cost to rebuild the structure of the property.
-Determine the true cost to rebuild the home by comparisons from agents.
-If the insurance company will write the policy for less than we are 100% covered.
-If the dwelling coverage is for 80% or more of the true replacement cost then the insurance company will pay for 100% of the replacement costs.
Auto Insurance Insight:
We want to have the right coverage without over paying for insurance premiums.
-Generally most people can have coverage of 1000 per person and 30000 per accident for
bodily injury insurance.
-Look to have a higher deductible like 1000 if you carry collision and comprehensive insurance. This will lower your premiums.
-Consider dropping collision and comprehensive insurance when the value of the car drops to $3000-$4000 dollar range. At that point the insurance company is more likely to total the car then repair it anyway.
Small Business Insurance:
When claiming a home business and having either clientele in the home or when storing inventory we should acquire small business insurance through a reputable agent.
-Put your business under business structure and have ample insurance so that if someone claimed a liability suit you would have ample protection.
-If you didn’t have business insurance and your inventory for your business was the cause of a fire, you home owners insurance would not cover the loss.
Summary:
Get educated on the right coverage’s to have for all types of insurance. This will help us not only personally but in our real estate investing as well. This can help us to be more liquid and give us to make more in our real estate investment opportunities.
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