Pearland Real Estate Expert

Does it surprise you that Texas homeowners pay more for homeowners insurance than residents of any other state in the U.S.? You may wonder why residents of Florida, with all of its hurricanes, and California with earthquakes, mudslides and wildfires don't pay more. Average Texas rates easily surpass those states, though, according to information from the National Association of Insurance Commissioners. Weather is a major factor in the cost and Texas has historically had hail, hurricanes, tornadoes and floods.

Although insurance companies determine your rate by looking at data across the state as well as by zip code, there are steps you can take to make sure you're getting the best deal possible.

Consider the property
When purchasing a house, you may want to consider its age. The newer the home, the cheaper it usually is to insure. Also, when you purchase a new home, some insurance companies will give you a discount because they believe fewer problems will occur. Now that doesn't mean you should buy a new home solely because of insurance costs. But it is a factor to keep in mind.

When purchasing an existing home, you may want to inquire about that property's CLUE report (Comprehensive Loss Underwriting Exchange). Only the homeowner can order this report, so you must request it from the seller. The CLUE report will enable you to learn about the history of insurance claims for the property. Not only will a lengthy list of claims be of interest to you regarding the property's condition - it might have some bearing on premium costs and your ability to secure coverage.

Increase the amount of your deductible
The deductible amount you choose makes a significant difference in your premiums. The deductible is the amount of money you have to pay toward a loss before the insurance company will begin covering your claim. If you choose a higher deductible, you will save money on your insurance premiums. Basically the more risk you take on, the lower your premium will cost. But make sure you have the means to pay your deductible if a loss should occur.

Don't over-insure
When you are considering how much coverage to buy, don't include the value of the land. The land, for the most part, is not susceptible to damage like the structure of your home is prone to, such as hail, wind, theft, etc.

Use security devices
Many insurance companies will offer a discount - sometimes as high as 20 percent - when you install a security system that includes a burglar alarm to call the police. Even just installing deadbolts and smoke alarms can save you a few dollars. Before making a major change in your security measures, talk to your insurance company about what kind of discounts they offer and how much it would lower your premium.

Retire or kick the habit
Smokers typically have higher premiums because their homes are more susceptible to house fires than nonsmokers. Also if you are 55 years or older, ask your carrier if they offer a discount for seniors.

Use the same company for multiple policies
Some insurance companies give you a discount if you buy more than one policy from them, such as homeowners insurance and automobile insurance. This multiple policy discount can save you as much as 15 percent.

For more information about homeowners insurance, you can find a wealth of resources on the Texas Department of Insurance Web site, http://www.tdi.state.tx.us.  

You can also talk with your Realtor. Realtors are knowledgeable about homeowners insurance and may be able to help guide you into making a decision that could save a substantial amount of money. Your Realtor understands insurance as well as all of the aspects involved with purchasing or selling a home.

Whether you're interested in buying your first home, your next home, or just want to know more about home-ownership in general, I encourage you to check out a couple of great online resources: http://www.texasrealestate.com/ or http://www.har.com/ and for all of your Pearland TX and Northern Brazoria and Galveston County real estate needs, please visit my site at http://www.danfrankrealty.com/. All of these sites offer tons of useful, real estate-related information geared specifically for Texans.

Danny Frank is a local Pearland TX Real Estate expert! You can see my entire blog at http://www.pearlandrealtyblog.com

My column was also published in the 23Aug09 edition of the Galveston County Daily News

Interested in a green home? I'm not talking about paint color. I mean green as in environmentally friendly.

Many consumers today consider the environment when making purchases. Just look at the popularity of hybrid vehicles, alternative fuels, locally grown produce and a host of other products designed to use fewer resources and reduce pollution and waste. Add housing to the list.

What pollutes more - a car or a house?
You don't think of houses being responsible for carbon emissions, but they are - to a significant degree. The energy you use for heating, cooling, appliances and lighting most likely comes from a source that produces carbon emissions. Other factors, like water use and building materials used to construct or remodel a home, can also significantly affect the environment.

You might think the best way to "go green" in housing is to start from scratch. And it's true. If you're building a new, custom home, you can make decisions that will greatly increase energy and water efficiency. You can also select the most environmentally friendly building materials and construction methods. But if you're not building a new home, there's no need to throw up your hands. There's still plenty you can do to make a difference.

How low can you go?
When looking to purchase an existing house, it's possible to assess some aspects of its energy use. How old is the air conditioning unit? Does the landscaping consist of native plants? You might even be able to secure energy bills from the current owner to review electricity and water usage (but keep in mind that your usage may vary considerably).

You can also hire a professional to better determine just how energy efficient or inefficient a home may be.

Whether purchasing a home or wanting to make the best of the house you already own, there are many steps you can take to improve energy efficiency. Here are some examples:

• Install rain barrels to collect roof runoff and use that water for irrigation.
• Replace water-thirsty plants with landscaping that requires little additional irrigation.
• Replace old windows with energy-efficient windows.
• Seal air leaks around windows, doors, and other areas that may have gaps.
• Seal air ducts.
• Install additional installation.
• Replace appliances with newer models that have earned the EPA's Energy Star designation.
• Replace heating and cooling units.
• Replace the water heater with a more efficient model.
• Change out incandescent bulbs with compact fluorescents.

You probably know that efforts like these offer benefits beyond helping the environment. They also save money. Yes, you pay more on the front end to make improvements such as those listed above, but each one of them reduces your expenses - often paying for itself in short order. As energy costs continue to rise, the more you can do to cut consumption, the more it pays off.

Be informed
You can find information online about how to lower your energy consumption and make wise environmental choices in housing. The EPA's Energy Star Web site, EnergyStar.gov, offers resources and tips about new homes, home improvements and more. You can find advice, calculators and other helpful tools on other sites as well.

Your Realtor also can help you make informed, green decisions. Some agents have even taken courses specifically designed to help their clients reap the benefits of environmentally friendly practices.

Whether you're interested in buying your first home, your next home, or just want to know more about home-ownership in general, I encourage you to check out a couple of great online resources: http://www.texasrealestate.com/ or http://www.har.com/ and for all of your Pearland TX and Northern Brazoria and Galveston County real estate needs, please visit my site at http://www.danfrankrealty.com/. All of these sites offer tons of useful, real estate-related information geared specifically for Texans.

Danny Frank is a local Pearland TX Real Estate expert! You can see my entire blog at http://www.pearlandrealtyblog.com

My column was also published in the 16Aug09 edition of the Galveston County Daily News

The home or condominium that you're thinking of buying may be governed by a homeowners association (HOA). These legal entities are common and growing in popularity across the country. According to the Community Associations Institute, more than 57 million residents in 23.1 million housing units were governed by HOAs in 2006; that's up from 45.2 million residents and 17.8 million housing units in 2000.

These associations provide many benefits, such as property maintenance and amenities that individual residents couldn't otherwise afford, and their rules often protect property values. But the dues HOA members must pay and the covenants, conditions, and restrictions (CCRs) they must follow rub some people the wrong way.

Look past the pool and golf course
Your perfect condo may have a great pool or your dream home might be sitting on the first tee, but remember that those things are only part of the HOA's scope. When you purchase a property governed by an HOA, you enter into a legal contract with the association. You agree to abide by the association's regulations and pay its dues. In exchange, you get a community guided by an HOA and the access to its facilities and perks.

Read before you buy
Make sure that any uses or freedoms you expect to come along with your property are allowed in the CCRs. Do you store your boat trailer in your driveway? I doubt your CCRs will allow that. Want to paint a bright color? Check the color palette allowed by the HOA.

You may have heard horror stories of home repossessions and other legal squabbles involving property owners and HOAs. A common theme among many of these cases is homeowners not understanding the regulations or ignoring them. Review the CCRs carefully before you purchase the property and you'll be less likely to run afoul of your HOA.

About those dues ...
HOAs run on dues - your annual fee for living in the community. These fees range from tens to thousands of dollars, depending on the neighborhood or building and what amenities it offers or what things are covered. Ask how much the dues are and if they've increased during the past few years.

Find out what the dues cover and what they don't. For example, your condo association may perform all exterior maintenance. That means when the roof leaks, your dues pay for its repair - even if you live on the ground floor of a three-story building.

Who's in charge?
When you review an HOA's documents, be sure to inquire about its finances. Is the HOA solvent? Does it have a reserve fund? Who controls the money? What kind of oversight is that person subject to?

Find out who manages the HOA and what role residents have in its governance. There may be a board or other group of property owners who manage the association. Take some time and talk to people who currently live in the community. How do they feel about the neighborhood or building? Find out their impressions of how the HOA is run.

Perform some due diligence before you sign a contract to purchase a property governed by a homeowners association. You will be able to make an informed decision about the HOA's pros and cons without jeopardizing your real estate transaction.

For expert advice about HOAs and all kinds of information about owning, buying, or selling a home, contact a Realtor.

Whether you're interested in buying your first home, your next home, or just want to know more about home-ownership in general, I encourage you to check out a couple of great online resources: http://www.texasrealestate.com/ or http://www.har.com/ and for all of your Pearland TX and Northern Brazoria and Galveston County real estate needs, please visit my site at http://www.danfrankrealty.com//. All of these sites offer tons of useful, real estate-related information geared specifically for Texans.

Danny Frank is a local Pearland TX Real Estate expert! You can see my entire blog at http://www.pearlandrealtyblog.com

My column was also published in the 09Aug09 edition of the Galveston County Daily News