The Insurance Doctor

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  • Three Important Percentages To 
Remember When Buying A Home

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    You just finished watching the latest installment of House Hunters on HGTV and begin to think to yourself why not me?   Purchasing your first home is not only the American Dream, for many young Americans it signifies a real transition into financial adulthood and responsibility taking on potentially the largest debt you will ever carry in your entire life.  If you are going to buy a new home, there are three financial rules you should consider before you sign on the dotted line.

    percentage-manThe 20% Rule
    I am a big fan of putting down 20% for two reasons.  One, by saving this 20% it will put you more into a forced habit of what you can save monthly which will likely indicate that you are ready to take on the new mortgage payment coming up with the home purchase.  Two, in most cases, you will avoid paying the Private Mortgage Insurance (PMI) which can make your monthly payment more expensive at the time you purchase the first home.  Far too often, new homebuyers stretch themselves by making a lower down payment, not recognizing how these extra costs will affect them.

    The 10% Rule
    It’s been my experience that when you purchase a new home you will tell yourself that you have your whole life to fix up the home.  However, after you start watching a few more HGTV shows and make a few trips to Home Depot, you’ll find yourself craving to make some renovations or buy some new furniture.  Beyond the down payment you need to save, plan that about 10% of the home value (i.e. a home at $300,000) will cost you an additional $30,000 in home improvements and furniture in the first year.

    The 1% Rule
    Beyond your mortgage payment, you should plan that if the home is valued at $300,000, you should set aside a kiddie of 1% to plan for the unexpected.  I couldn’t tell you today if it will be the roof, the water heater, or the A/C, but invariably there are going to be year to year blow ups that will cost you money from your savings.

  • 7 reasons New Yorkers should shop homeowners insurance now!

    Hurricane Sandy did $19b of damage to the city in 2012!  Many people (my family included) lost their coastal homes and were shorted 100’s of thousands of dollars from big-name insurance carriers that also raised rates.  We were offered $16,000 for shingles on a demolished $2m+ beach house.  With 520 miles of coastline, NY has more people living in high-risk areas than any city in the USA.  Now there’s a homeowner’s insurance solution, here’s why:homeowners insurance new york disaster

    1. One of our insurance carriers just dropped NYS rates over 30%. Some places in NYC by 38% off of already competitive rates to gain market share!
    2. They don’t care how near or far away you are from the water!
    3. My analyst who tracks this says they are the lowest NY rates he has seen in his 20+ year career!
    4. Product features include liability up to $1mil. Water back-up up to $25,000 on the policy.  Home system protection (covers the pipe that runs under the ground from home to city line).  90% of big name carriers don’t cover it.  Equipment breakdown coverage includes mainly hot water heaters, boilers, and central AC units that malfunction due to blackouts.
    5. All new clients will keep low rates the 2nd year as the carrier will revise new business rates based on their market share and loss ratios.
    6. This carrier will also work very well for 2 family homes as long as they are owner-occupied.
    7. The ONLY homes they won’t write are; Flat roofs, non-owner occupied and Fire Island homes. Rates are slightly credit driven.

    The time to shop is NOW, don’t wait for your renewals!

  • 4 Things We Can Learn from the Pope

    What We Can Learn from the Pope: 4 Tips

    The Pope toured Cuba and is now in the USA. He is discussing many controversial topics with class and poise while connecting with people of all ages. Here are fourlessons learned principles we can learn from the Pope:

    1. Deliver your message with clarity: He’s touched on sensitive issues such as global warming and gay marriage. Think of what your intended outcome is when delivering your messages at work and even at home. Message clarity comes from prior planning and concise delivery.

    2. Use the sandwich method when critiquing: Open with a positive statement or sincere compliment to connect with your audience. In the middle deliver your criticism without tone and then close in a positive manner with a smile. The Pope regularly employs this technique.

    3, Be humble by example: Instead being transported in the $1 milion limousine that President Obama rides in, Pope Francis requested a black FIAT crossover vehicle to show he is of the people. Be mindful of the impression you leave with others.

    4. Utilize social media: Pope Francis is connecting with younger generations like none of his predecessors by using social media. Consider making it a part of your daily routine.

    Contact Robert today for your free consultation or insurance review.

  • Tips on Buying Homeowner’s & Auto Insurance

    By Robert Intelisano, The Insurance Doctor

    Following these valuable tips can save you upwards of 20-25% on premiums paid as well as properly protecting the assets you have worked so hard to build.

    FH-Hibu-April2014
    As seen in the April 2014 edition of Forest Hills Life magazine

     

    • Choose a higher deductible. The odds of a 35 year old having a homeowners claim by age 65 are over 1400 to 1. If your mailbox was broken by a delivery truck and the cost to fix it was $600 most people wouldn’t even submit a claim out of fear of either being dropped or a rate increase. So why not have a $1000 deductible in this situation?
    • Check your uninsured/under-insured limits. This coverage is very inexpensive and is one of the only ways to collect money on your own policy. If somebody crashes into your car and has either no insurance or very low limits you can collect the difference from your own policy. I suggest 100/300 coverage, meaning if somebody hits you and you have $50,000 of damages and they have $10,000 of coverage you can collect the $40,000 difference from your own policy. Ask any personal injury attorney about this.
    • Shop around. Examine rates from several companies and make sure to compare plans providing identical coverage. I suggest consulting with an independent broker who can “shop the market” for you and provide spreadsheet comparisons. This is especially important after hurricane sandy as many of the larger well-known companies have either dropped existing clients or stopped writing new business in Zone 1 and 2 areas. This has created opportunities for smaller niche companies to enter the market. Just because you might not have heard of the company doesn’t mean they are not financially strong with a good claims paying history. We are seeing this in abundance now in NY and NJ.
    • Review annually. People tend to be creatures of habit and it’s easier to just pay your renewal when it surfaces each year. Ask your broker to “shop the market” every policy anniversary as rates change every year. In many cases rate increases are based on claims paid the previous year. If company A had a lot of claims that year their rates would noticeably increase and perhaps now company B would have lower rates. This is why it’s critical for brokers to shop around for better rates each renewal year.
    • Assess the need. Determining if you need property and casualty insurance is simple. If you have assets like a retirement account, financial investments and/or a home with equity, then having property and casualty insurance may be a good idea. It helps protect you from being held financially liable for an accident that causes damage to another person or another person’s belongings. It may also help you pay for a person’s injuries or any legal costs you incur as a result of the person being injured on your property due to your negligence. This insurance usually comes into play with auto, homeowners and even renters insurance.
    • Consider umbrella insurance. Also called “excess liability insurance” this can be a wise purchase for high net worth individuals and/or business owners with a value above the primary limits of policies selected. An umbrella policy can cost relatively little compared to the protection it provides.

    For more information and/or competitive quotes feel free to contact me at robcintel@aol.com or 917-359-3985.

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