Q. What kind of home insurance should I get?
A. A basic policy, otherwise known as an 'all-risk' policy will cover everything except earthquakes, floods, war and nuclear accidents but you can expand these policies to include additional coverage.
Experts recommend that you obtain insurance equal to the full replacement value of the home. They advise that on a 2,000 sq.ft. home, for example's sake, if the replacement value is $80 per sq. ft., that the house be insured for at least $160,000. You can also add an inflation rider that will increase your coverage as the home increases in value.
Q. If I am now under contract with a home, when should I start inquiring about insurance?
A. In Florida, it is recommended that you start shopping for insurance as soon as you are under contract.
Q. Can a homeowners association ban pets?
A. Yes they can. A homeowners association can enact and enforce such pet restrictions. You find this mostly when purchasing a condominium. Pet restrictions will appear in the cove
Q. What sources are there where I can obtain information on remodeling?
A. There are several sources you will find helpful. Here are two sources:
1) National Association of the Remodeling Industry - 703.575.1100
2) Remodeling Magazine publishes a 'Cost vs. Value Report. Call
202.736.3447.
Q. Can I get a list of architects?
A. Yes, contact American Institute of Architects at 202.626.7300
Q. Can the cost of home improvements be deducted?
A. Items such as new windows can be added to your home's cost basis, or the amount of money you have invested in the home. This reduces capital gains when the home is sold. Capital gains are determined by the difference in price from the time a home is bought and the time in which it is sold, less the cost of any permanent improvements. It is advised that you save all receipts for permanent improvements.
Q. Who has to disclose relevant information about a property?
A. Obligations for disclosure vary from state to state. In Florida, it is the obligation of the seller and the seller's broker to disclose all facts materially affecting the value or desirability of the property which are known or accessible. You should check your state's disclosure laws prior to a home purchase.
Q. Should I have a professional home inspection?
A. Yes, you should.
Q. What repairs will the seller make?
A. Most sellers will make all minor repairs prior to putting their home on the market. Most all purchase contracts include a buyer contingency for inspections. The remedy is different for all contracts and the items to be repaired in negotiable.
Q. When do I need a building permit?
A. Building codes are established by local authorities to set out public-safety standards minimums. They are issued for all buildings, plumbing, electrical and remodeling. When purchasing a home you should always ask to see permits if the home has been remodeled to protect yourself from liability fines.
