Discover the New Shift in Homeowner’s Insurance

Insurance companies are shifting the financial burden of protecting a home to the homeowner. How?  The insurers like Allstate and State Farm are now requiring homeowners that live in states that are prone to hurricanes and wildfires to protect their homes by purchasing permanent storm shutters and/or installing fire retardant roofs.

Your question maybe is this legal.  The answer is yes, although states can mandate that the insurer requirements be modified or deregulated.  One state did just that.  Connecticut enacted a law that prohibited insurers from requiring permanent shutters as a requirement for the home to be insured.  The state felt that if the homeowner utilized a much cheaper alternative by using temporary plywood shutters the requirement of providing reasonable protection of the asset or home has been satisfied.

In states, that do not require permanent shutters or fire retardant roofs a homeowner can expect a substantial savings in premium if they make those improvements.

Remember that even if you can not afford to make all the recommended improvements right away the insurer is required to allow you time to do so.  Still yet, there may be low interest loan and/or grants available through the city or state that can help you comply to regulation changes by the insurer.

Mr. President, I Have a Solution

The crisis that this country is enduring has created many scars.  Many that can be patched by offering a solution to the financial burden that is burning a hole in the average American’s dream of homeownership. 

There are many offering there verison of solution.  Well, I too, feel that it is my turn to offer my solution.

My solution is for homeowners.  I think, a viable solution would be to allow the homeowner to use FHA/VA  insurance to pay the homeowner’s mortgage current.  The FHA/VA insurance provides protection to the lenders for losses if the homeowner defaults on the loan.  The homeowner who pays for this insurance to protect the lender should be able to use this insurance to bring his or her mortgage current if they can prove to the lender that he or she is capable of paying the mortgage once the mortgage is brought current.  Utilizing this insurance will remove the burden off of the tax payer for FHA/VA insured loans and put it on the insurer.

For all other mortgages, the mortgage can be renegoitated at the current value and at a better fixed rate. 

The  mortgage crisis is not going away, so no action will equal disaster.  Let’s think outside the box to keep the American Dream alive.