If you're an emerging company with the next great product, sometimes you need an angel on your side.
A study by the University of New Hampshire's Center for Venture Research showed that "angel investors" - high-net-worth individuals willing to invest in entrepreneurial companies at an early stage - shelled out more than $18 billion into early-stage companies last year alone, compared to $304 million by venture capitalists.
Finding an angel investor, however, is not an easy task. Safer Smokes Inc. is one company that understands the challenge of attracting the right investors.
This development-stage company is tapping the smoking cessation market with a unique tobacco-free, nicotine-free smoke called Bravo, which has the appearance of a traditional cigarette and burns like tobacco, but is actually made from lettuce fibers.
"Bravo lets you smoke your way out of the tobacco habit gradually," said Puzant C. Torigian, chief executive officer of Safer Smokes.
For companies like Safer Smokes, it may be too soon to approach large venture capital firms, yet time to move beyond networking with family and friends. Angel investors to the rescue.
"The challenge for raising capital in today's market is in harnessing the courage and vision of the angel to see through to the real investment opportunity," said Torigian.
So how do companies like Safer Smokes attract their angel?
* Have a clear-cut target market for your product or service. For example, Safer Smokes is targeting the smoking cessation market, which has sales approaching $10 billion per year, up from $6 billion just three years ago.
Most angel investors prefer companies that are likely to show positive cash flow within their first 18 months, so having these kinds of statistics about your market can be an incentive.
* Match the business plan objectives to the angel's risk tolerance. Investors want to know the product or service will be unique and well-cultivated. Safer Smokes has a patented solution that company officials say will "affect the landscape of the health care industry."
vrijdag 18 september 2009
dinsdag 15 september 2009
Car Leasing Basics
Over the past few years, the popularity of car leasing has soared. When you compare leasing with buying a car and suffering the humongous monthly installment fees, leasing provides a better and more viable financial option.
For auto leasing, you need to know the tricks of the trade so that you will not end up paying more than when you directly buy the car. There are car dealers and manufacturers who can give you your money's worth if you want to go for this option.
You will get a better deal out of the car dealers if you appear knowledgeable about the auto leasing industry, so read up.
'Auto Leasing Defined'
You would "lease" a car by paying for the costs by which the vehicle depreciates in value. You can calculate depreciation costs by subtracting the car's value by the time that the lease ends, from its original value. There are cars which depreciate more than other brands. The rule of thumb is, the smaller the amount that your car depreciates, the lesser the costs to lease.
Once you decide to go for leasing over buying a vehicle, you may choose the one with the least depreciation value.
If you decide to go for this option, you need to learn about "lease term". This is the number of months that the vehicle is leased. Typically, leases last for 24, 36 or 48 months, depending on your contract.
'Leasing or buying: Which option is kinder to your pocket?'
-Automobile leasing requires you to have a good credit, so if your credit score is low, it is better to go for buying.
You may even be disapproved for a lease if your credit history is not good. Or, at the very least, you will be required to pay higher monthly dues.
-Leasing companies would need to profit from you.
They will invest capital on buying the car, then lease that car out. Just like with any loan, their money shoudl earn interest so you better consider this as well when considering the advantages of buying.
-Make sure that you get the best deal out of car leasing by comparing the monthly costs with the interest rates of your local car dealer.
By making a note and comparing both prices, you would more or less have an idea of which option to go for.
'Car Leasing Tips'
- When deciding on the model or make of the car that you will lease, choose the Japanese and European cars. These are basically the brands which have lower depreciation rates, as compared to the American vehicles.
You will find out that most luxury cars have the lowest depreciation values. Research, visit a local car dealer in your area or ask friends who are currently leasing cars. They should have some great tips to share with you on how to get the best deal out of leasing cars.
-Leasing a car may put a big dent in yur budget when it comes to car maintenance. You need to make sure that you are a "car-friendly" user when you opt to go for auto leasing.
-Definitely go for leasing if you are the type who wants to own the latest cars in the market. In the long run, leasing will be a better option for you as compared to buying the latest car model then trading in or selling the old one that you have.
-As much as possible, choose a shorter lease period. This is so that you can optimize the warranty of the vehicle.
-Finally, avoid the long-term leases, because the car's value will decrease by the time the lease ends, and this is mostly when engine problems begin.
For auto leasing, you need to know the tricks of the trade so that you will not end up paying more than when you directly buy the car. There are car dealers and manufacturers who can give you your money's worth if you want to go for this option.
You will get a better deal out of the car dealers if you appear knowledgeable about the auto leasing industry, so read up.
'Auto Leasing Defined'
You would "lease" a car by paying for the costs by which the vehicle depreciates in value. You can calculate depreciation costs by subtracting the car's value by the time that the lease ends, from its original value. There are cars which depreciate more than other brands. The rule of thumb is, the smaller the amount that your car depreciates, the lesser the costs to lease.
Once you decide to go for leasing over buying a vehicle, you may choose the one with the least depreciation value.
If you decide to go for this option, you need to learn about "lease term". This is the number of months that the vehicle is leased. Typically, leases last for 24, 36 or 48 months, depending on your contract.
'Leasing or buying: Which option is kinder to your pocket?'
-Automobile leasing requires you to have a good credit, so if your credit score is low, it is better to go for buying.
You may even be disapproved for a lease if your credit history is not good. Or, at the very least, you will be required to pay higher monthly dues.
-Leasing companies would need to profit from you.
They will invest capital on buying the car, then lease that car out. Just like with any loan, their money shoudl earn interest so you better consider this as well when considering the advantages of buying.
-Make sure that you get the best deal out of car leasing by comparing the monthly costs with the interest rates of your local car dealer.
By making a note and comparing both prices, you would more or less have an idea of which option to go for.
'Car Leasing Tips'
- When deciding on the model or make of the car that you will lease, choose the Japanese and European cars. These are basically the brands which have lower depreciation rates, as compared to the American vehicles.
You will find out that most luxury cars have the lowest depreciation values. Research, visit a local car dealer in your area or ask friends who are currently leasing cars. They should have some great tips to share with you on how to get the best deal out of leasing cars.
-Leasing a car may put a big dent in yur budget when it comes to car maintenance. You need to make sure that you are a "car-friendly" user when you opt to go for auto leasing.
-Definitely go for leasing if you are the type who wants to own the latest cars in the market. In the long run, leasing will be a better option for you as compared to buying the latest car model then trading in or selling the old one that you have.
-As much as possible, choose a shorter lease period. This is so that you can optimize the warranty of the vehicle.
-Finally, avoid the long-term leases, because the car's value will decrease by the time the lease ends, and this is mostly when engine problems begin.
vrijdag 11 september 2009
3 Pitfalls to Avoid When Playing in the Real Estate Game
So you’ve seen your umpteenth infomercial with the guy in his neatly pressed button-upped white T-Shirt grinning ear to ear waving his rock-solid no-money-down rags-to-riches real estate investment course for 3 easy payments of a gazillion dollars (but only if you call now) and now you are thinking, "wow this looks like a great deal, I better get it fast before the special offer expires." You notice how there’s always a special offer? Anyway, I am not saying this guy isn’t telling the truth, however regardless of which course or school of thought you buy into there are several key areas that one must avoid when engaging in any real estate related transaction.
Pitfall Number 1: Don’t Overpay!
The whole point in investing is to find properties that are undervalued. How does one find out what is undervalued versus overvalued? Without getting into technical details, the bottom line is you need experience. Yes much like shopping for anything else, real estate is essentially one of the highest ticket items in the shopping center of life. It’s advisable to stick with one market, perhaps the one closest to you in proximity as a starting off point. Through your experience and asking the right questions, you will eventually have a feel for the pulse of the market you are looking after, and of course identify what is considered a good buy.
Pitfall Number 2: Know the Market
Yes, you are actually going to have to do more work! This part is really common sense though, but executing it where the beauty and the payoff comes in. How do you make money in real estate? The most basic way is to buy low and sell high. So from the first step, you have identified general trends in the value of homes, and are pretty good at spotting undervalued homes. Assuming you acquire that home, you may want to profit from it by selling it off to someone else for a higher price. How can you do this? Well there are many ways. For one, most markets appreciate in value over time so if you want a longer term approach that will work. Making upgrades to the property will automatically raise the price of the home as well. Think in terms of what the market wants, not what you personally want. You aren’t the one buying it; you are trying to sell it to someone else for a higher price than you bought it.
Pitfall Number 3: Know Your Budget
It may be a fine philosophy to go through life on a whim, but real estate is serious business, and thus diligent financial planning and budgeting is critical to your success. Don’t worry you don’t need to be a finance geek, however you need to be disciplined and know your budget from the onset, or you may be finding you are learning that you need to make certain renovations or upgrades, and didn’t anticipate it going over to a certain cost. Think ahead as to what is needed before actually going forth with investing in real estate.
Pitfall Number 1: Don’t Overpay!
The whole point in investing is to find properties that are undervalued. How does one find out what is undervalued versus overvalued? Without getting into technical details, the bottom line is you need experience. Yes much like shopping for anything else, real estate is essentially one of the highest ticket items in the shopping center of life. It’s advisable to stick with one market, perhaps the one closest to you in proximity as a starting off point. Through your experience and asking the right questions, you will eventually have a feel for the pulse of the market you are looking after, and of course identify what is considered a good buy.
Pitfall Number 2: Know the Market
Yes, you are actually going to have to do more work! This part is really common sense though, but executing it where the beauty and the payoff comes in. How do you make money in real estate? The most basic way is to buy low and sell high. So from the first step, you have identified general trends in the value of homes, and are pretty good at spotting undervalued homes. Assuming you acquire that home, you may want to profit from it by selling it off to someone else for a higher price. How can you do this? Well there are many ways. For one, most markets appreciate in value over time so if you want a longer term approach that will work. Making upgrades to the property will automatically raise the price of the home as well. Think in terms of what the market wants, not what you personally want. You aren’t the one buying it; you are trying to sell it to someone else for a higher price than you bought it.
Pitfall Number 3: Know Your Budget
It may be a fine philosophy to go through life on a whim, but real estate is serious business, and thus diligent financial planning and budgeting is critical to your success. Don’t worry you don’t need to be a finance geek, however you need to be disciplined and know your budget from the onset, or you may be finding you are learning that you need to make certain renovations or upgrades, and didn’t anticipate it going over to a certain cost. Think ahead as to what is needed before actually going forth with investing in real estate.
dinsdag 8 september 2009
Car Wash Fundraiser Ideas
Car wash fundraisers are a proven money-maker in virtually every community. All you need are willing volunteers, a high-traffic location with good visibility, and some attention getting signs.
You can put a car wash fundraiser together on short notice, but they work best with a little planning. Here's how to get started...
Things To Do List
1- Line up a location with good main road frontage
2- Ensure it has suitable water access
3- Assemble supplies list – hoses, buckets, wash towels, dry towels, squeegees
4- Assign each volunteer an item from the supplies list
5- Make 8-10 poster board signs in high-contrast colors
6- Arrange your volunteers in 2-hour shifts
7- Get advance publicity, if possible
How To List
1- Organize your group into teams - Promotion, Sales, Wash, Dry
2- Promotion team attracts new clients with signs
3- Sales team explains offer (use flyer for quick info) and up-sells clients
4- Wash team soaps, scrubs, and rinses each car
5- Dry team gets water residue off, vacuums, does tires, etc.
6- Have at least two lines so you can wash two or more cars at once
7- Wash cars for six to eight hours (Saturday 9:00 to 3:00 preferred)
Your fundraiser’s success will depend on the weather. If you can wash 12 cars an hour (one every 10 minutes in each line), you can raise $500- $1000 in one day.
Remember to put together a quick flyer that includes the reason why you’re raising funds and clearly states the price. You can even offer some extra services such as providing high-gloss tire treatment or vacuuming interiors for an additional fee.
Car Wash Fundraiser - Success Tips
1- Location, location, location!
2- Sell car wash fundraiser tickets in advance
3- Use a flyer that clearly explaining why you're raising funds
4- List all prices concisely in large, bold type
5- Up-sell to include additional services
6- Partner with another group if your head count is low
7- Increase revenue with an extra offering such as a 2-for-1 pizza savings card
Alternatively, you can advertise a free car wash and just ask for donations for your cause.
Often, this can raise more cash than stating a specific price, because people will see a group of volunteers working hard and having a good time, and may part with their money more easily.
Final Advice
Make sure to keep the event fun for all your participants and your customers. Play upbeat music. Provide soft drinks and snacks to keep the energy level up.
Keep safety in mind. Be sure to get volunteers to hold and wave signs toward passing traffic, not just volunteers to wash cars.
If you have time, get your car wash fundraiser some publicity coverage in the local newspaper, or by posting signs a day or two in advance.
You can put a car wash fundraiser together on short notice, but they work best with a little planning. Here's how to get started...
Things To Do List
1- Line up a location with good main road frontage
2- Ensure it has suitable water access
3- Assemble supplies list – hoses, buckets, wash towels, dry towels, squeegees
4- Assign each volunteer an item from the supplies list
5- Make 8-10 poster board signs in high-contrast colors
6- Arrange your volunteers in 2-hour shifts
7- Get advance publicity, if possible
How To List
1- Organize your group into teams - Promotion, Sales, Wash, Dry
2- Promotion team attracts new clients with signs
3- Sales team explains offer (use flyer for quick info) and up-sells clients
4- Wash team soaps, scrubs, and rinses each car
5- Dry team gets water residue off, vacuums, does tires, etc.
6- Have at least two lines so you can wash two or more cars at once
7- Wash cars for six to eight hours (Saturday 9:00 to 3:00 preferred)
Your fundraiser’s success will depend on the weather. If you can wash 12 cars an hour (one every 10 minutes in each line), you can raise $500- $1000 in one day.
Remember to put together a quick flyer that includes the reason why you’re raising funds and clearly states the price. You can even offer some extra services such as providing high-gloss tire treatment or vacuuming interiors for an additional fee.
Car Wash Fundraiser - Success Tips
1- Location, location, location!
2- Sell car wash fundraiser tickets in advance
3- Use a flyer that clearly explaining why you're raising funds
4- List all prices concisely in large, bold type
5- Up-sell to include additional services
6- Partner with another group if your head count is low
7- Increase revenue with an extra offering such as a 2-for-1 pizza savings card
Alternatively, you can advertise a free car wash and just ask for donations for your cause.
Often, this can raise more cash than stating a specific price, because people will see a group of volunteers working hard and having a good time, and may part with their money more easily.
Final Advice
Make sure to keep the event fun for all your participants and your customers. Play upbeat music. Provide soft drinks and snacks to keep the energy level up.
Keep safety in mind. Be sure to get volunteers to hold and wave signs toward passing traffic, not just volunteers to wash cars.
If you have time, get your car wash fundraiser some publicity coverage in the local newspaper, or by posting signs a day or two in advance.
dinsdag 18 augustus 2009
5 Tips for Investing in Penny Stocks
Investing in penny stocks provides traders with the opportunity to dramatically increase their profits, however, it also provides an equal opportunity to lose your trading capital quickly. These 5 tips will help you lower the risk of one of the riskiest investment vehicles.
1. Penny Stocks are a penny for a reason.
While we all dream about investing in the next Microsoft or the next Home Depot, the truth is, the odds of you finding that once in a decade success story are slim. These companies are either starting out and purchased a shell company because it was cheaper than an IPO, or they simply do not have a business plan compelling enough to justify investment banker's money for an IPO. This doesn't make them a bad investment, but it should make you be realistic about the kind of company that you are investing in.
2. Trading Volumes
Look for a consistent high volume of shares being traded. Looking at the average volume can be misleading. If ABC trades 1 million shares today, and doesn't trade for the rest of the week, the daily average will appear to be 200 000 shares. In order to get in and out at an acceptable rate of return, you need consistent volume. Also look at the number of trades per day. Is it 1 insider selling or buying? Liquidity should be the first thing to look at. If there is no volume, you will end up holding "dead money", where the only way of selling shares is to dump at the bid, which will put more selling pressure, resulting in an even lower sell price.
3. Does the company know how to make a profit?
While its not unusual to see a start up company run at a loss, its important to look at why they are losing money. Is it manageable? Will they have to seek further financing (resulting in dilution of your shares) or will they have to seek a joint partnership that favors the other company?
If your company knows how to make a profit, the company can use that money to grow their business, which increases shareholder value. You have to do some research to find these companies, but when you do, you lower the risk of a loss of your capital, and increase the odds of a much higher return.
4. Have an entry and exit plan - and stick to it.
Penny stocks are volitile. They will quickly move up, and move down just as quickly. Remember, if you buy a stock at $0.10 and sell it at $0.12, that represents a 20% return on your investment. A 2 cent decline leaves you with a 20% loss. Many stocks trade in this range on a daily basis. If your investment capital is $10 000, a 20% loss is a $2000 loss. Do this 5 times and you're out of money. Keep your stops close. If you get stopped out, move on to the next opportunity. The market is telling you something, and whether you want to admit it or not, its usually best to listen.
If your plan was to sell at $0.12 and it jumps to $0.13, either take the 30% gain, or better still, place your stop at $0.12. Lock in your profits while not capping the upside potential.
5. How did you find out about the stock?
Most people find out about penny stocks through a mailing list. There are many excellent penny stock newsletters, however, there are just as many who are pumping and dumping. They, along with insiders, will load up on shares, then begin to pump the company to unsuspecting newsletter subscribers. These subscribers buy while insiders are selling. Guess who wins here.
Not all newsletters are bad. Having worked in the industry for the last 8 years, I have seen my share of unscrupulous companies and promoters. Some are paid in shares, sometimes in restricted shares (an agreement whereby the shares cannot be sold for a predetermined period of time), others in cash.
How to spot the good companies from the bad? Simply subscribe, and track the investments. Was there a legitimate opportunity to make money? Do they have a track record of providing subscribers with great opportunities? You'll start to notice quickly if you have subscribed to a good newsletter or not.
One other tip I would offer to you is not to invest more than 20% of your overall portfolio in penny stocks. You are investing to make money and preserve capital to fight another battle. If you put too much of your capital at risk, you increase the odds of losing your capital. If that 20% grows, you'll have more than enough money to make a healthy rate of return. Penny stocks are risky to begin with, why put your money more at risk?
1. Penny Stocks are a penny for a reason.
While we all dream about investing in the next Microsoft or the next Home Depot, the truth is, the odds of you finding that once in a decade success story are slim. These companies are either starting out and purchased a shell company because it was cheaper than an IPO, or they simply do not have a business plan compelling enough to justify investment banker's money for an IPO. This doesn't make them a bad investment, but it should make you be realistic about the kind of company that you are investing in.
2. Trading Volumes
Look for a consistent high volume of shares being traded. Looking at the average volume can be misleading. If ABC trades 1 million shares today, and doesn't trade for the rest of the week, the daily average will appear to be 200 000 shares. In order to get in and out at an acceptable rate of return, you need consistent volume. Also look at the number of trades per day. Is it 1 insider selling or buying? Liquidity should be the first thing to look at. If there is no volume, you will end up holding "dead money", where the only way of selling shares is to dump at the bid, which will put more selling pressure, resulting in an even lower sell price.
3. Does the company know how to make a profit?
While its not unusual to see a start up company run at a loss, its important to look at why they are losing money. Is it manageable? Will they have to seek further financing (resulting in dilution of your shares) or will they have to seek a joint partnership that favors the other company?
If your company knows how to make a profit, the company can use that money to grow their business, which increases shareholder value. You have to do some research to find these companies, but when you do, you lower the risk of a loss of your capital, and increase the odds of a much higher return.
4. Have an entry and exit plan - and stick to it.
Penny stocks are volitile. They will quickly move up, and move down just as quickly. Remember, if you buy a stock at $0.10 and sell it at $0.12, that represents a 20% return on your investment. A 2 cent decline leaves you with a 20% loss. Many stocks trade in this range on a daily basis. If your investment capital is $10 000, a 20% loss is a $2000 loss. Do this 5 times and you're out of money. Keep your stops close. If you get stopped out, move on to the next opportunity. The market is telling you something, and whether you want to admit it or not, its usually best to listen.
If your plan was to sell at $0.12 and it jumps to $0.13, either take the 30% gain, or better still, place your stop at $0.12. Lock in your profits while not capping the upside potential.
5. How did you find out about the stock?
Most people find out about penny stocks through a mailing list. There are many excellent penny stock newsletters, however, there are just as many who are pumping and dumping. They, along with insiders, will load up on shares, then begin to pump the company to unsuspecting newsletter subscribers. These subscribers buy while insiders are selling. Guess who wins here.
Not all newsletters are bad. Having worked in the industry for the last 8 years, I have seen my share of unscrupulous companies and promoters. Some are paid in shares, sometimes in restricted shares (an agreement whereby the shares cannot be sold for a predetermined period of time), others in cash.
How to spot the good companies from the bad? Simply subscribe, and track the investments. Was there a legitimate opportunity to make money? Do they have a track record of providing subscribers with great opportunities? You'll start to notice quickly if you have subscribed to a good newsletter or not.
One other tip I would offer to you is not to invest more than 20% of your overall portfolio in penny stocks. You are investing to make money and preserve capital to fight another battle. If you put too much of your capital at risk, you increase the odds of losing your capital. If that 20% grows, you'll have more than enough money to make a healthy rate of return. Penny stocks are risky to begin with, why put your money more at risk?
vrijdag 14 augustus 2009
3 Things To Look For In A California Mortgage Lender Online
Want to buy a home in California? If so, chances are you'll need a California Mortgage Lender to help finance your new house. Fortunately, the Internet has made the mortgage process easy. You can even find a lender online with very little hassle! Here's how to find a reputable California Mortgage Lender online:
Ask friends, family and neighbors
If you already live in California, some of the people you know in the state may have used a California Mortgage Lender online when they financed their home. Ask around among close friends and acquaintances to see if anyone can make a personal recommendation. Check with co-workers, family members and neighbors, too. A referral like this is often a good way to hear about the good--and bad--experiences people have had with various online mortgage lenders.
Watch out for predators
"Predatory lending" is a term generally used to describe any lender that is trying to take advantage of the borrower. Examples include charging high, unnecessary fees, pushing borrowers into a loan they can't afford, or using lies and deception to obtain clients. Carefully review all fees and charges--your lender is required to give you a "good faith estimate"--plus the fine print, like loan terms and prepayment penalties. Be on the lookout for any false or misleading information, or any terms that are vague and unspecific. If the fees seem too high or too numerous, look for a different lender.
Check with officials
All California Mortgage Lenders and Brokers should be licensed with either The California Department of Real Estate or The California Department of Corporations. To help ensure your California Mortgage Lender is legitimate and reputable, check with these agencies to see if your lender is licensed. Avoid any lending company that is not licensed or has allowed its license to expire.
Be sure to check with your city's Better Business Bureau office, as well. They'll have a record of any complaints that may have been filed against your California Mortgage Lender.
Ask friends, family and neighbors
If you already live in California, some of the people you know in the state may have used a California Mortgage Lender online when they financed their home. Ask around among close friends and acquaintances to see if anyone can make a personal recommendation. Check with co-workers, family members and neighbors, too. A referral like this is often a good way to hear about the good--and bad--experiences people have had with various online mortgage lenders.
Watch out for predators
"Predatory lending" is a term generally used to describe any lender that is trying to take advantage of the borrower. Examples include charging high, unnecessary fees, pushing borrowers into a loan they can't afford, or using lies and deception to obtain clients. Carefully review all fees and charges--your lender is required to give you a "good faith estimate"--plus the fine print, like loan terms and prepayment penalties. Be on the lookout for any false or misleading information, or any terms that are vague and unspecific. If the fees seem too high or too numerous, look for a different lender.
Check with officials
All California Mortgage Lenders and Brokers should be licensed with either The California Department of Real Estate or The California Department of Corporations. To help ensure your California Mortgage Lender is legitimate and reputable, check with these agencies to see if your lender is licensed. Avoid any lending company that is not licensed or has allowed its license to expire.
Be sure to check with your city's Better Business Bureau office, as well. They'll have a record of any complaints that may have been filed against your California Mortgage Lender.
dinsdag 11 augustus 2009
4 Things To Remember When Renewing Your Home Contents And Home Buildings Insurance
Each year when our renewal notices come through the post for our home contents insurance and/or home buildings insurance, most of us automatically sign the form and send it back to the insurance company – after all, we already know how much the premiums are going to be. Big financial mistake, and here are 4 reasons why:
Did You Buy Anything New In The Last Year?
If you bought anything new in the last year, say a new television or video recorder, then the value of this new purchase will not be included in the renewal notice you just sent off to the insurance company. Likewise, if you sold anything of value over the last year, and have not informed the insurance company, then you are paying home contents insurance for something you no longer own. Either way, your not paying the right amount of insurance premiums.
Did The Costs Stay Static?
If you have home contents insurance then you are insuring your personal property for the replacement cost of buying the same thing new. On the other hand, part of your home buildings insurance should cover the cost of labour and materials. Now ask yourself, would the cost of replacing the picture hanging in your living room be the same today as it was last year? If the answer is that it would cost you more, tough luck, you’ll only get paid out what you said the cost of replacing it would be! The same can be said of your friendly builder, would he charge you the same for an hour of his time and for his materials today as he would have done last year? If the answer here is no, then you should be expecting to pay him the difference.
Did The Value Of Your Home Stay The Same?
Similar to the above, with your home buildings insurance you need to be asking yourself whether or not the value of your home stayed the same this year as it was last year? You need to be asking yourself this question even if you didn’t do any work to the house – such as building an extension – that would naturally automatically add value to your home.
Is Your House Any Safer Today?
Here the question is, have you done anything to your house over the last year that would mean your home would be considered safer today than last year? For example, did you add any deadlocks to your doors or windows? If so, then there’s a very good chance your home contents insurance premium would be reduced, as the security in your house is a major consideration in assessing your premium (along with the crime rate in your neighbourhood, so you may also want to check and see if this has gone up or down also).
Keep in mind that time stands still for no man. As such, you need to read your home contents insurance and/or home buildings insurance renewal notices very carefully to make sure that they reflect, as accurately as possible, your life today and not your life of yester-year.
Did You Buy Anything New In The Last Year?
If you bought anything new in the last year, say a new television or video recorder, then the value of this new purchase will not be included in the renewal notice you just sent off to the insurance company. Likewise, if you sold anything of value over the last year, and have not informed the insurance company, then you are paying home contents insurance for something you no longer own. Either way, your not paying the right amount of insurance premiums.
Did The Costs Stay Static?
If you have home contents insurance then you are insuring your personal property for the replacement cost of buying the same thing new. On the other hand, part of your home buildings insurance should cover the cost of labour and materials. Now ask yourself, would the cost of replacing the picture hanging in your living room be the same today as it was last year? If the answer is that it would cost you more, tough luck, you’ll only get paid out what you said the cost of replacing it would be! The same can be said of your friendly builder, would he charge you the same for an hour of his time and for his materials today as he would have done last year? If the answer here is no, then you should be expecting to pay him the difference.
Did The Value Of Your Home Stay The Same?
Similar to the above, with your home buildings insurance you need to be asking yourself whether or not the value of your home stayed the same this year as it was last year? You need to be asking yourself this question even if you didn’t do any work to the house – such as building an extension – that would naturally automatically add value to your home.
Is Your House Any Safer Today?
Here the question is, have you done anything to your house over the last year that would mean your home would be considered safer today than last year? For example, did you add any deadlocks to your doors or windows? If so, then there’s a very good chance your home contents insurance premium would be reduced, as the security in your house is a major consideration in assessing your premium (along with the crime rate in your neighbourhood, so you may also want to check and see if this has gone up or down also).
Keep in mind that time stands still for no man. As such, you need to read your home contents insurance and/or home buildings insurance renewal notices very carefully to make sure that they reflect, as accurately as possible, your life today and not your life of yester-year.
Abonneren op:
Posts (Atom)