Mortgage Life Insurance – Is There a Better Way?

Posted by Alex Boyer on Wed, Apr 27, 2016

mature-couple 

Many of our clients are bombarded with mailed solicitations for the purchase of Mortgage Life Insurance. A common question they ask us, particularly those for whom we write homeowner’s insurance, is:

"Do I need, or should I get, Mortgage Life Insurance?”

Our short answer is that, like much life insurance, Mortgage Life Insurance can be helpful in the right circumstance. However, there may be far better alternatives for you and your family.

Let us share 5 reasons why you should speak to E & K about Term Life Insurance, as compared to Mortgage Life Insurance, if you are concerned about how to leave your family without the worries of a mortgage should something happen to you.

  1. Unlike most Mortgage Life Insurance, with Term Life Insurance your coverage amount will not decline as your mortgage balance declines.
  2. Your family may use the proceeds of Term Life Insurance for whatever they deem necessary.  This may be to pay off your mortgage, but it doesn’t have to be. Your family may use the proceeds for other important household, medical or college expenses  It’s nice to have that flexibility when you never know what life may throw at you.
  3. As the owner of your Term Life Insurance, you can pick the beneficiaries. The beneficiary doesn’t have to be the bank holding your mortgage.
  4. Even though you pay the premiums of a Mortgage Life Insurance policy, the bank, not you, usually owns the policy and is the beneficiary – not your family.
  5. You may have to replace your Mortgage Life Insurance policy if you refinance your home. Aside from being a pain, health changes may make you less insurable in the future. With Term Life Insurance, you don’t have to replace your policy just because you refinance your home.

Let E & K help you make the best life insurance decisions for your family.  We can help you structure protection with the flexibility you want that makes sense with your budget.

Please call us to speak to one of our life insurance professionals and, as always, thank you for giving E & K the opportunity to service your insurance needs.

This is not an offer of coverage or a solicitation of insurance to anyone outside of the State of New Jersey. Policy descriptions provided here are not statements of contract. Please refer to the policy forms for full disclosure of all benefits and limitations. Please note that any life insurance offered by insurance companies through E & K as an agent of the companies is not a deposit, not FDIC or NCUSIF insured, not guaranteed by the institution, not insured by any federal government agency and may lose value.

Tags: Homeowner Insurance, E&K Insurance, Homeowner, Insurance, Homeowners insurance, term life insurance, mortgage, mortgage life insurance, life insurance

E & K Applauds this Win for all Insurance Consumers

Posted by Alex Boyer on Fri, Apr 17, 2015

The Asbury Park Press reports that "buyers of homeowners insurance policies will receive an easy-to-read, one-page summary of their coverage starting in June, according to an announcement Tuesday from the New Jersey Department of Banking and Insurance."

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The coverage synopsis is the result of a law passed in May 2013 as a reaction to some of the confusion surrounding homeowners insurance and superstorm Sandy.

E & K applauds this win for all insurance consumers.

 

"As we worked with New Jersey consumers following that devastating storm, we saw that some homeowners didn't fully understand their homeowners insurance policy," said Banking and Insurance Commissioner Ken Kobylowski in a statement. "For example, some consumers believed that that homeowners policy covers flood damage. It does not. Flood insurance must be purchased separately. This one-page summary is one way the state is working to raise awareness of insurance issues so consumers understand clearly what their policies do and do not cover."

Read the full article in the Asbury Park Press.

Tags: Hurricane Sandy, Homeowner Insurance, E&K Insurance, NJ, Homeowner, House, Insurance, New Jersey natural disaster, home, FEMA, Superstorm, New Jersey, Homeowners insurance, coverage, Emergency Storm Claim Center, homeowner policy, storm damage

Preventing Frozen Pipes This Winter

Posted by Alex Boyer on Fri, Jan 09, 2015

With the East Coast currently in a deep freeze, sub-zero temperatures can spell catastrophe for your pipes. It's important to know how to prevent your water pipes from freezing over during the harsh winter months. Luckily, WikiHow has a great set of instructions to prevent your pipes from freezing and to thaw out already frozen ones.

 

1: Insulate all water pipes from cold moving air and keep them dry. Locate the main water shut off in case you need it. Leaks often happen if the pipe is thawed out.

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2: Use either heater tapes wrapped around the pipes or a heated reflector lamp in a dry enclosed space. On cold nights, check the light to see that it is working. The heater tapes work by a built-in thermostat. In order to work, the tape must be wrapped between the pipe and the insulation. Some tapes do not allow insulation over heat tape. Follow manufacturer instruction.

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3: If electric power is unavailable or is lost, let the water run no faster than a slow constant drip; this is cheaper than repairing it. First start a slow drip on the hot side faucet, then a faster drip on the cold side faucet. There is no need to run a lot of water. Bathrooms can be cold, as long as they aren't freezing.

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4: Remember to insulate and heat the drain lines in crawl spaces and cold basements. Again, a heat lamp focused on the drain p-trap will keep it from freezing if it is also protected from moving cold air with a boxed enclosure that you can build yourself.

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5: To thaw a frozen pipe, first check the pipe in the area of the freeze. Some plastic or copper pipes will split and will flood the area when thawed. If the pipe looks busted or has a slit in it, call a plumber. If the pipe is all metal, it can be thawed by connecting a welder onto the pipe on each side of the frozen part. After a while it will be running again. This is just like connecting starter cables to the car battery, but with much longer cables.

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6: It is far better to heat the area around the frozen part with an electric space heater, a hand-held hair dryer, or a heat lamp in a reflector to prevent a fire. Use care when placing heat generating devices. Space heaters, heat lamps and reflective lamps can generate high temperatures which may cause combustion of certain materials, Never leave these devices unattended for any amount of time when in use. If this is a problem, call the plumber. Some of them don't mind if you watch them as long as you are quiet and not in the way.

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7: Always disconnect your water hose from your outdoor spigot in the winter, or before the temperature in your area drops below freezing. The water inside the hose can freeze, and the freezing continues back into the spigot until it reaches your pipes. If you have PVC plastic piping leading to this spigot, it will burst.

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8: Use a temperature-controlled thermal convection powered hot water recirculation valve (which does not require electricity to operate) to continuously circulate warm water throughout your hot and cold waterlines anytime the temperature is below the user chosen set point 77F-140F. Unlike heat tape which only heats the pipes, this process circulates water non-stop to prevent crystallization and freezing no matter where the pipes are hidden. Note: This method requires that the valve be installed at a higher level (2nd - 3rd floor) than the water heater. Circulating water throughout your system "non-stop" will also increase your water heating bill. Anytime circulation,is not desired uninstall the valve.

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9: Use a product called ICE LOC which prevents pipes from rupturing by taking up the expansion of the frozen water. It's an elastomer that fits inside pipes that are in trouble areas.

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10: Use a RedyTemp, a device which utilizes an internal water contacting temperature probe to monitor the temperature of the water inside the pipes. Depending on the temperature set point you choose on the unit's temperature dial, it will intermittently circulate water throughout both hot and cold water lines "as needed" to maintain the selected temperature. Intermittent circulation typically results in 5 minutes of actual circulation per hour causing far less water heater demand compared to continuous demand from thermostatic valves. The RedyTemp optimizer installation is a DIY project and takes twenty minutes to install under a sink. Disconnect one end of the existing faucet supply lines and connect to the RedyTemp. Connect the two faucet supply lines which come with the RedyTemp. Plug the unit into a standard wall socket and set the desired temperature set point. Users can gauge the effectiveness of their chosen set point by opening cold water faucets upstream and feeling how cool/ambient/warm the water is coming out the tap, and adjust the set point accordingly until optimized. An optimized set point is achieved when cool or ambient temperature water is maintained in the cold water pipes or the portion of pipe requiring protection. RedyTemp's low 40 watt / 0.52 amp intermittent power consumption allows using a uninterruptible power supply for continuous protection during power outages. Owners of tankless on-demand water heaters require RedyTemp TL4000 series model rather than the ATC3000 depicted in the illustration. During off seasons when circulation is not desired users simply lower the temperature set point to prevent circulation.

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All images and instructions are courtesy of WikiHow. To read the complete article on their site, click here.

Tags: Homeowner, House, home, winter, prepare, storm damage

What to Look for in a Contractor

Posted by Rachel Auerbach on Thu, Mar 13, 2014

According to the New Jersey General Contractor, “There is no state licensing board for the General Contractor, HomeBuilder and Home Improvement Contractor. However, there is a state registration program.”

So be extra careful when choosing a contractor. Make sure you check references and referall services like Home AdvisorAnother good resource to check out is Better Business Bureau. This lets people files complaints against contractors.

Talk with family and friends about contractors they would recommend. Don’t always go with the lowest offer, sometimes it's worth it to pay a little more for good quality. And once you find a good, credible contractor, do not let tasks be delegated to inexperienced subcontractors. 

Ask for a WRITTEN estimate with a complete breakdown of exact costs, which should include material and labor. In addition, get reviews from the contractor's previous customers.

 

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(U.S. Army Corps of Engineers photo by Marc Barnes)  

According to the Professional Insurance Agents of New York, the standard price to pay upfront for a contractor is 33 percent. You don’t want to end up in a situation like Mark Zarrilli. Zarrilli had to take his case to the Monmouth County Prosecutor’s office when he paid $7,000 upfront, and then his contractor dragged his feet to complete the project. 

Have a contract drawn up with start and end dates, the specific work that will be done, payment agreements and warranty information. Make sure to include a hold-harmless clause. This guarantees (with respect to your liability) that the contractor will compensate damages done to people or property while on the job. If it’s not in writing, you won’t have proof if something goes wrong.

Make sure the contractor is bonded and properly insured. It’s OK to ask for certificates of insurance for workers’ compensation or general liability policies. 

If the contractor finds something like asbestos, the contractor must be licensed to deal with hazardous materials in order to proceed. If not, you should hire a licensed professional, or else you could be held liable if the material is not disposed properly.

 

Tags: Contractor, Homeowner, House, Work, Construction, Insurance, Liability