Protecting Your Biggest Asset
Protecting Your Biggest Asset: If you have ever dropped your Iphone into water, or purchased a new car that malfunctions only a short time after, you are likely grateful for the all encompassing “warranty” that can resolve your problems at minimal cost. Protecting your assets is one of the smartest decisions you can make, and doing so can be a real life-saver on a rainy day. However, there is one asset that many people seem to overlook when it comes to securing protection, and for many of us, it is the biggest asset we will ever own: Your home or property. Losing your home can be devastating both financially and emotionally, making it ever-more important to ensure it is covered at every corner.
Fortunately, there are many different ways to preserve your home, maintain its value, and protect your asset.
One of the most important and essential ways to protect your home is through insurance. No matter which type of residence you own, whether it be a personal home, condo, commercial residence, recreational property, or investment property, it requires proper insurance in case of any unforeseen damage as a result of events like flooding or house fires. Without homeowners insurance, the outcome of this situation could mean losing your home and costing you a lot of money in damages. On the other hand, if you are properly protected with insurance coverage for your property, this policy could finance the repairs and ensure you have a roof over your head again.
If you buy a home with under a 20% downpayment, mortgage insurance is a must. However, mortgage insurance should be considered for everyone who owns a home or property. If anything, the onset of a global pandemic should prove that our situations can change in the blink of an eye. You may want to look into more widespread options for mortgage insurance to protect your home. Optional mortgage insurance may help to pay off the remainder of your mortgage in extreme instances such as job loss, illness, injury, disability, or death. We do not plan for these things to happen, but unfortunately, when they do, it could end up costing a lot.
When a lender issues you a mortgage, they come with a set of guidelines that must be respected. Making late payments, or missing payments can have a negative impact on your credit score and end up costing you more money, and potentially your home. If you find yourself in a position where you may be unable to make a mortgage payment, communication will be your best friend. Talk to your lender to work towards a solution. The worst thing to do in this situation is to not do anything at all. Before you know it, payments and interest can add up, and with other bills and expenses to consider, the snowball effect can be overwhelming.
Completing regularly scheduled and preventative maintenance, repairs, and upgrades on your home is an excellent way to protect your investment long-term and really showcase the pride of ownership. After all, a home will likely be the largest purchase you make in your life and is one of the best investments in terms of return. This is why taking care of it is so important. If a home appears neglected or if regular upkeep isn’t completed, the value of your home can decrease over time. If maintenance is not your strong suit, you may want to consider a condominium as your home of choice. Condominiums come with a monthly fee that covers most outdoor maintenance, alleviating the owner of the time and costs that coincide.
There are such a wide variety of smart home systems available to homeowners today that come with many different benefits. Whether you choose to install a security system, install up-to-date fire, carbon monoxide, and flood detectors, or invest in apps that alert you of potential hazards, this can trigger a reaction faster than ever before, potentially saving your home and family from damages. It is important to do your research and choose which systems work best for you.
In using these tips and methods to protect your home, you are also protecting your financial security and wellbeing. There is nothing better than peace of mind, especially if tragedy strikes. Use preventative measures, plan accordingly, and stay ahead of the game to keep your investment healthy, and your biggest asset safe and secure.
Lisa Fitzpatrick ABR, SRS
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