Insurance Advice and Assistance

Threat to home equity

The biggest threat to home equity is impulse buying and keeping up appearances in a consumer society. Have you taken out a second mortgage even though you consider home equity your retirement nest egg? Many people run up credit card debt and then refinance it at a lower rate with a second mortgage. At some point, though, the nest egg disappears. Impulse buying and keeping up appearances can turn savers into spendthrifts.

Still, there is some justification for using a home as a savings vehicle. We all need to have a residence. The purpose of saving is to create a sense of financial security in our lives. Renters are subject to rent increases and the whims of landlords. A long-term saver able to pay a mortgage and not take out second and third mortgages will not have rent increases. A longterm saver able to pay off the mortgage will dramatically increase the sense of financial security in his life. Investors and speculators will have little interest in this type of security.

Home ownership works best for long-term savers who are not interested in the value of their home, but the security of their lifestyle. They are able to ignore the ups and downs of home prices, interest rates, and the economy, and focus on paying down the mortgage one payment at a time.

Often, true savers double their mortgage payments to eliminate the mortgage at a faster, orderly pace, whereas investors would not dream of using their excess cash to increase a mortgage payment.

Tips for homeowners

The liability for domestic and landowners is an absolute must, because the owners of land required to enhance safety on and around the land around guarantee. A private liability insurance usually ranges from – but there are exceptions costly.

Munich – The protection is usually even then, if an accessory or single rooms in the house rented out. But another housing unit to protect endangered, as a ruling of the Appeal of Bamberg (AZ: 1 U 34/08) shows. Who owns another property, it must be separately insured, even if they were empty.

In this specific case the insured had a second house in which a pipe when neighbors caused a considerable damage. Although the house is not rented out as usual, had to the private indemnity insurance, according to the judges do not step in because the house was precisely during the vacancy not to own residential purposes.

That is according to the insurance conditions, however, a prerequisite for an injury takeover by private insurance.

The decision shows that the owner of several properties in the liability is not on their private liability insurance should leave. This applies also for multi-family houses with rented housing – even here, the only private liability insurance for the self-utilized housing access. For the rented units must, however, a separate house and property-casualty insurance to be completed.