Taking just a few minutes to be aware of your Lloyds of London renewal, for example, could reduce premiums by eliminating excess coverage. More importantly, this could avert financial ruin and heartache when you suffer a loss that you thought you were covered against.

Becoming familiar of the following eight elements found in your insurance policy will better help you determine whether you’re adequately insured.

1. Perils - What causes of loss are you covered against? Fire, wind, rain, hail are common covered perils. What if a tree or neighboring dwelling falls and damages your dwelling? It’s not always clear. Depending on your homeowners policy form, all perils may be covered except those specifically listed as exclusions. Other policies must specifically list the covered perils, with exclusions not being covered. Flood insurance is a common point of confusion - your homeowners policy almost certainly does not cover damage from flooding. An additional flood policy may be required, or at least made available to you, depending on the risk of your location. Be aware, and ensure you are covered to the extent you want to be.
2. Losses - Your policy will specify to what extent your real property is covered against loss. Also be aware of personal property loss – how much would it cost to replace your entire house contents in the case of a total loss? In the event of a catastrophic loss of your home, you will incur temporary residence expenses and possibly loss of income, while your home is being rebuilt.
3. Personal Property - Your policy may list personal property, or contents may be covered under a general blanket arrangement. Itemized lists must be kept up to date as you acquire and liquidate assets. Also be aware of claim limits on special household items like cash.
4. People – The named insured or homeowner(s) are usually covered under homeowners policies. Plus, family members, employees, guests and visitors, will normally be covered. Tenants probably won’t be covered under your standard homeowners policy. If fact, you will probably be over-paying for insurance if you utilize a standard policy while leasing your house to renters. Renters can obtain their own policy to cover their property, but be sure to research whether you have sufficient liability coverage to protect you and your tenants.
5. Location – This may seem obvious for a single-family residence. However, be sure that separate structures such as storage sheds or detached garages are covered. In an apartment complex you should be aware whether theft from a shared garage is covered, for example.
6. Time Period – Your policy will specify the beginning date and time of coverage, and when this concludes. Lapses could be devastating to your personal finances.
7. Loss Control – What are your responsibilities for limiting losses? Are you required to lock the doors, or ensure smoke detectors are functioning, for example?
8. Amount – How much will your policy compensate you for in the event of a loss? Generally, homeowners are required to maintain a coverage amount of at least 80% of the replacement value of the dwelling. The claim formula for policies with less than adequate coverage is brutal, and will leave you well short of being able to replace your home to its former value.

Being aware of the inclusions, exclusions, limits, and requirement of your homeowners policy are crucial to maintaining control of your personal finances. After a quick review you may identify excess coverage that could be eliminated by simply contacting your insurer, and that will save you money.

The notion of “the portfolio” is bogus. Because we each save and invest for a range of goals, it is madness to simply think of a single portfolio as a means of achieving all financial goals.

The main differentiating factor for our goals is time. A long-term goal like retirement should be diversified very differently to short-term goals, like a real estate deposit. To lump all your resources into a single investment, no matter how diversified, wouldn’t efficiently achieve all your objectives.

Short-Term Targeted Diversification

For financial goals within the 12-month time-frame, you should consider low-volatility and liquid investment vehicles. If you aim to purchase a car, take a vacation, or make a deposit on your dream home, then you simply must have those resources available to you when you need them.

High-yield deposit accounts, CD’s, and money-market accounts are examples of liquid stores of cash where you have very little chance of losing your capital to any sort of volatility. With interest rates currently at record lows there’s a good chance that your yield will be close to zero, and this carries a risk of you losing some purchasing power to inflation. However, you can be confident of having the money you need, when you need it.

Medium-Term Targeted Diversification

Goals in the 2-15 year range lie somewhere between short and long-term objectives. Saving for a child’s college education is a good example. In this range we can accept more volatility with our investments as market gyrations won’t impact our ability to meet this objective in the short-term. In fact, greater volatility will increase the chance of capital growth over the mid-term, helping us achieve our targeted goal.

However, as we approach the target date it is critical to transition to less-volatile investments and lock-in our gains. For example, within 5 years of your goal it may be prudent to move from stocks to bonds, and from bonds to cash equivalents.

Long-Term Targeted Diversification

With an extended investment time-frame we can accept volatility, knowing that this movement will help our invested capital grow towards achieving our goals. We can confidently invest in the stock market, and international stock markets to chase the growth necessary to build a nest-egg that will be with us throughout life.

Again, it is critical to reduce volatility as we approach the time that we need to access these funds. However, balancing immediate retirement needs and not outliving our money may require accepting some volatility well into retirement. Discuss this with you financial advisor, but it really is not necessary to convert your entire retirement portfolio into income producing assets.

Multiple Portfolios Within Our Total Portfolio

To successfully achieve each financial goal, we need to think of our portfolio as a group of targeted investments. Each pool of money needs to be invested and diversified according to the goal. Specifically, diversification should be tuned to match the time-frame of your goal to ensure the funds you need will be there when you need them.

The question of whether to pay down the principal of your mortgage at a faster rate than laid out in your repayment schedule is well covered in the financial media. Generally, discussion begins with identifying how much interest can be can be saved, and how much sooner you can clear that horrendous mortgage obligation from your balance sheet. Most mortgage borrowers can realistically save tens or hundreds of thousands of dollars in interest alone, and the psychological appeal of nixing this massive loan can not be understated.

The pundits make it sound so straight forward. Simply arrange a bi-weekly payment schedule; contributing 13 payments annually instead of 12. Even paying an additional $100 or $200 per month will result in significant interest and time savings over a typical 30-year mortgage term. It seems easy enough, but family budgets can’t always afford this incremental expense.

Most balanced debates on this subject also include a comprehensive analysis of sticking to the planned repayment schedule; not accelerating your mortgage payments. Presumably this means you would have $100 or $200 or that 13th payment to do something else with.

What Would A Financial Planner Do?

A Financial Planner would tell you exactly how to maximize your economic utility with this additional cash. You’d likely be shown that your tax-effective mortgage interest rate is lower than you think due to the deductability of this expense. Plus, in this low-interest rate environment you can earn a much greater return by investing your money than paying down debt, and this too can be very tax efficient in various retirement vehicles like the Roth IRA.

Home buyers that compare home loans, in much the same way they compare homes, ensure that they find the very best mortgage available to them at the time. Knowing the cost of housing is a fixed monthly expense for the household allows for consistent financial planning, even if that mortgage takes 30 years to amortize.

Family Considerations

Families must be aware that the mortgage is just one piece of the sustainable financial plan. Additional mortgage payment must be secondary to realistic cash reserves. Nobody is immune to a faltering economy so it’s common sense to plan like your job could disappear for six (6) months. There are currently thousands of Federal Government employees suffering a 20% pay cut due to sequestration furloughs. These cut-backs can impact what we thought were the safest of occupations and industries.

The appeal of paying less interest to purchase your home is unmistakable. One major downside however, is the loss of flexibility. Financial resources committed to paying down mortgage debt can’t easily be withdrawn. Refinancing or opening a line of credit can be expensive or impossible if you are unemployed. However, if you saved your additional cash-flow you would have the ability to weather the financial storm without being foreclosed upon.

An Alternative Perspective For Families

If your household budget does have the capacity to make additional mortgage payments while simultaneously maxing out your retirement savings, 529 contributions, buying the car of your dreams, and meeting orthodontist expenses, then go ahead and accelerate your mortgage.

However, something your financial planner won’t tell you about is how to enrich the quality of your life and your children. It almost seems unfair that parents are saddled with so many competing financial obligations at precisely the time they are tasked with preparing their children to embrace the world. The child raising window is extraordinarily brief, much shorter than your 30 year mortgage note. Unlike your home loan, it’s not possible to refinance your child’s developmental years.

In my humble view, it’s better to spend your additional cash flow on fun family activities that can open your children’s eyes to all the possibilities that life has to offer, rather than squirreling away every last penny on mortgage acceleration.

Conventional boilers use a storage tank to supply hot water. If you’ve moved into a new home, you’ll know if you have a conventional boiler because you can’t really miss it. There’ll be a lagged hot water cylinder in a storage or airing cupboard somewhere as well as a cold water tank tucked away in the attic.

While newer models are being produced that are efficient and tailor-made for an individual home’s requirements, older types are typically less efficient. One of the major downfalls is that once the hot water is gone, it’s gone until the next batch heats up again, meaning it’s not very handy if you have a house full of people!

On the other hand, combination boilers supply water straight from the mains so hot water is unlimited. Modern homes are likely to have combination boilers fitted because they’re convenient and efficient. Some newer models include innovative condensing technology and ECO modes, too.

While these are predominantly the main considerations you need to make, there are alternative options available. Greener energy is definitely a thing of the future; if you want to be part of this, take a look at the Baxi Ecogen alternative that, apart from supplying the all-important hot water, also generates low-carbon electricity.

Summer is a perfect time to upgrade your boiler system. Take a look at the options and have a new boiler installed ready for the forthcoming winter months.

Shopping online is arguably the most profound innovation that the internet has brought to consumers. The rapid sharing of information has firmly improved the footing from which we negotiate for so many goods and services. Now, it’s common for us to shop for insurance, automobiles, job listings, the cheapest fuel, and even prescription drugs, all through high-quality trusted comparison web sites.

The home loan market is perhaps the most competitive industry vying for your business. A home purchase and mortgage commitment is still the largest financial agreement that we engage in. This has helped to push the financial sector to be the largest in our consumer driven society. The bottom line is that banking is big business, and with thousands of financial institutions competing for your home loan the very best way to shop around is by using safe online tools.

It sounds laughable today, but the thought of driving down to your local bank to apply for a mortgage is simply not an efficient way to seek the very best deal available to you. Looking beyond the bank or credit union where you hold your transactional account is the first step.

The very best online home loan comparison tools allow you to input the financial details relevant to your mortgage needs. Without the need to share your personal information, you can very quickly and safely learn what the market can offer you. In less than a second you can learn which mortgage lender wants your business, their best interest rate, your monthly payment, the total interest over the term of the loan, and any fees for closing.

This is a very quick and easy process that prospective home buyers should complete as they shop around for their home loan. Your mortgage shopping should be almost complete before you actually apply for credit. Arm yourself with the information that will give you the upper-hand as you engage with lenders. It really does pay to shop around, and when it’s free and convenient, you really have no reason not to compare home loans online.

Figure out how much you can spend

Creating your budget is the first step to finding the right holiday. Figure out how much you are willing to spend, and how much flexibility you have if you find a deal slightly above your price range, is important to know before you plan a vacation.

Before you start shopping, always remember you can start selling. Getting rid of old, unwanted things not only frees you up before you leave: it can be lucrative as well. Companies like musicmagpie.com buy unwanted CDs and DVDs, leaving you with some extra pocket-money that can go towards your vacation.

Do your research

With the abundance of travel websites and agencies offering excellent deals and competitive prices, simply searching the internet for deals can return surprisingly budget-friendly results. Last-minute and off-season deals can get you fantastic rates for both vacation packages and five-star hotels. Doing your research may take time, but finding the right deal makes it worth the effort.

Airlines often work with local hotels to secure fantastic deals for their fliers, and advertise budget-friendly packages. Buying directly from the airline also means you can put unused air miles towards your vacation, offsetting some of the cost.

Find alternatives to a hotel

Traveling doesn’t always mean having to stay at hotels, which can be overpriced and underwhelming. Small boutique hotels provide a chic take on typical hotels, while bed-and-breakfasts provide a less expensive, more homely alternative. Finding a luxury apartment to rent means you can sleep between luxurious linen counts and still save money by eating in rather than eating out.

Make compromises

While a trip to an exotic location across the Pacific or Atlantic may inspire wanderlust, staying closer to home means comparable luxury for a fraction of the transportation cost. The money you would have spent on airfare can be re-directed to a luxurious hotel instead.

Flying on low-cost airlines, or opting for a train or bus in lieu of a plane, can work wonders for your holiday budget. Getting there may not be an extravagant experience, but once you arrive, all the money you’ve saved on transportation you get to spend on a more luxurious hotel or more expensive meals. 

Shortening your trip may also be a money-saver. While the temptation to make a holiday last is hard to resist, remember that every extra day adds up—and with the right finagling, you can exchange a ten-day four-star holiday for a seven-day five-star one.

Unless you’re budgeting in the tens of thousands, making compromises as well as doing your research and considering alternatives can mean putting the same budget towards a more luxurious location. With these tips, you’re sure to find your ideal, budget-friendly vacation—with a touch of luxury, of course.

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Many argue that now is a great time to buy a home. Average home values are trending upwards, continuing the turnaround that began last year. Steady economic growth, declining unemployment, and reduced foreclosure inventories are all contributing to the positive trend.

Plus, persistently low-interest rates ensure the availability of credit to borrowers. The Federal Reserve has pledged to keep short-term interest rates near zero until unemployment drops to 6.5%. With the unemployment rate currently at 7.2% and trending lower, it seems that interest rates could potentially increase later this year, giving prospective home buyers even more incentive to act before this happens.

Comparing home loans is made relatively easy using online resources. Web tools that allow you to specify your borrowing needs, then produce a list of lenders offering the most favorable terms for your personal situation can save you time and money when shopping around. However, when given a list of lenders and what they can offer you, what are the variables that are most important to you? Of course, that question is unique to your needs, but here are some important factors for comparison.

Interest Rate

On the surface it’s reasonable to assume that a lower interest rate means lower payments and less interest overall, but there’s more to it. Identifying whether the rate is fixed or variable, adjustable, and then knowing the APR (annual percentage rate) to compare the real rate with fees as a consideration are also important points of comparison. Going further on this, some lenders offer interest offset accounts that combine your checking account with your regular income deposits with your mortgage balance. Managing this carefully can result in even less interest expense for you, it’s all about balancing the features and benefits of the complete interest rate dimension.

Flexibility

Like interest rates, there’s a number of ways to gauge the flexibility of competing mortgage products. A 30 year mortgage is popular because it allows for lower payments than a shorter term, but it may also allow you to repay the principal ahead of schedule if you have the spare resources to do so. However, be certain that your mortgage offers accelerated payment options without penalty if this feature is important to you. Conversely, does your mortgage offer a re-draw facility? You might need to take back some of those extra payments, and it’s nice to know the option is already there for you.

Fees

Whether you pay the fees for your mortgage up-front or roll them into the principal balance, they ultimately have to be paid. While the Consumer Financial Protection Bureau is working hard to ensure comparison between home loans is uniform and clear, there are still many ways creative lenders can present their fees that are not always obvious to us. Know the sum total of all the fees, know what each is for, and don’t be afraid to ask for discounts. Competition for your mortgage business is strong, and this can give you leverage to negotiate a better deal for you.

A quality home loan comparison tool will clearly identify the lenders that are offering mortgages that meet your needs. Not only will they list the important elements of a mortgage, they will present them in a way that allows for quick and easy comparison, so you can make the best possible mortgage choice.

Before you jump in with both feet, consider the likelihood of you having a claim that’s worth considering. After all, why waste their time (and yours), claiming back PPI in a case that you know you wouldn’t have a chance of winning? The number of frivolous claims has risen alongside the increase in claims, wasting the resources available – it’s just not worth it. You should only claim if you genuinely believe you have a case but, how do you know if you’re owed?

If you have a bank account, have had credit cards, loans, mortgages or hire purchase agreements, you could have been paying PPI premiums without knowing about it. Did you read the smallprint? Or look through the breakdown of your finance agreement? PPI fees could have been added into the overall cost of your loan or credit card – it’s normal not to notice that kind of thing, especially if you had no idea what to look for.

Over the past year or so, banks have been contacting victims that they know may have been mis-sold PPI. As part of the initiative, the FSA has instructed the banks to liaise with individuals, by informing them in layman’s terms, what they are eligible to do. With an expected 4 to 12million letters being written in due course[1], you may have already received this correspondence and, if not yet, you may do soon.

The problem with PPI, although it certainly has its uses, is that in many cases, it was either sold without the customer being fully aware of it or, if the individual did willingly sign up for it, they weren’t even eligible. For example, if you’re self employed or retired, there’s no need to take out PPI – if you did, because the advisor didn’t tell you about this ineligibility, you have the grounds to claim.

The scandal is rife, with people all over the country laying claims – so much so, that the Financial Ombudsman Service (FOS) has had to hire 1000 extra caseworkers to deal with the volume of complaints they’re receiving[2].

Luckily, banks have put money aside to deal with these inevitable payments. Having paid out more than £1.9billion last year to successful claimants[3], there’s no sign of slowing down. In fact, the Bank of England has been warned that the final cost to banks for mis-sold PPI is likely to be approximately £25billion – that’s almost double the estimated £13.6billion that banks have put aside for the scandal, so far[4].

First and foremost, when money is involved in anything that you do, it is always advisable to create a budget. This is such an important factor mainly because if you end up gambling more than you can afford this will lead to debt and regrets of playing many fun games online that you don’t need to regret. This can be hard for many people who know how they could win if they just hit a jackpot and so they put in a little too much money, however you cannot always count on these bets to hit so you can easily waste your money. In order to make a budget all you have to do is look at how much you are earning each month and then how much of that you are willing to spend on playing games, then when you are getting to your limit have the will to stop yourself from playing till next month.

This can also be done with the amount of time spent playing the games, if you are playing them too much then you will be neglecting other aspects of your life which you shouldn’t. So you must work out how much time you really should be playing games for and then only play games for that long. This will also keep the games fresh and make sure they stay enjoyable for longer.

Move In With The Parents

As much as this may sound really difficult, moving in with parents can save you quite a bit of money in the long run, especially if you’re renting which is giving away deposit money to pay for someone else’s mortgage. You might end up swallowing your pride for a bit, but the long-term result is definitely worth pursuing.

Save As Much As You Can For A Deposit

Saving as much cash as you can for a deposit can mean the difference between acceptance and rejection by a lender. Also, the more you put towards your deposit the less you have to pay back to the bank in the long run!

Talk To A Mortgage Broker

Mortgage brokers are able to give you quality advice on your borrowing affordability. They can advise on what to look out for when dealing with mortgage lenders as well as act on them on your behalf to get the best possible deal for you. Getting a good quality mortgage broker can mean the difference between paying a premium or securing the best terms on your mortgage.

Buy Next To A Trendy Area

As much as it sounds really appealing, living in the hippest neighbourhood doesn’t necessarily mean you’ll get a great investment. The suburb may be really popular but the smart money (especially first time buyers) is on the suburb next door as more and more people settle in the area.

What other tips would you suggest to first home buyers?