Steps for Homeowners to Consider

The housing market continues to be weak. If you’re in the process of buying, this is good. For those that already own a home, there are several programs available to help protect your property, your assets, and your ability to make mortgage payments:

Water Line Protection Plan

This is a situation that hardly anybody thinks about until they’re personally affected. Who is responsible for the water service system that brings water into your home from the water main in the street? You. Is this pipe covered under your homeowner’s insurance policy? Normally, it is not. I recently had a client in East Greenwich spend $5,000 repairing a leaky pipe that he had no idea he was responsible for. Contact the water company and ask them about obtaining a protection plan. I pay about $60 per year for $10,000 in coverage.

Title I Loan

The typical course of action for someone making repairs to their home is to take a home equity loan. But many of us no longer have home equity! There is a solution: a Title I Home Improvement loan. The maximum loan amount is $25,000 and you pay a fixed rate. There’s no appraisal, but the borrower does need to have good credit and show an ability to repay the loan.

Personal Umbrella

For people with assets to protect, this insurance coverage is a must-have. At a recent Financial Planning Association meeting, we heard horror story after horror story of lawsuits and huge judgments being brought against average people. Roughly one third of those suits are because of dog-bites. A personal umbrella extends coverage to your home and auto policies to protect against catastrophic disaster.

Hardest-Hit Fund – Rhode Island

This fund provides assistance for Rhode Island homeowners that make below a certain income and are paying more than 31 percent of gross income in mortgage, taxes, and insurance payments. For those that may have been laid off or suffered some other hardship, this is a good place to get help. Go to www.hhfri.org for more information.