Reverse Mortgages - reverse your monthly payments.

One of the most frequent questions that we receive when assisting with Reverse Mortgages is, "If I already have a mortgage, can I still do a Reverse Mortgage?" The consensus seems to be that most people believe the answer to this questions is no. In reality, however, the Reverse Mortgage is a system that allows the borrower to reverse their mortgage payment. Instead of paying from out of their pockets every month, the borrower uses a Reverse Mortgage to end their mortgage payments forever.

Reverse mortgages are federally guaranteed.

Now because the Reverse Mortgage is a Federally guaranteed and regulated program, there are some limits that should be talk about with the Reverse Mortgage. One is the fact the Reverse Mortgage is designed to utilize the equity in the home, there are limits to the amount of money that a Reverse Mortgage can produce, and of course, how much mortgage can be paid off. A good way to know if a Reverse Mortgage will perform efficiently for you is first judge whether or not your current mortgage is under 70% of your home's appraised value. This is the maximum lending ceiling for most cases.

Mortgage Quote: A Glimpse of Your Actual Mortgage

In all major purchases and undertakings we make, quotes are essential to see if we can afford a certain program or project and if we are able to get the best deal from among the numerous deals various companies are offering to address what we need and want. This is also true if we have plans of getting a mortgage.

A mortgage quote is an estimate or offer made by lending companies to potential borrowers for a home mortgage. It usually contains the estimated monthly payments you need to give for a home mortgage.

A mortgage quote is influenced by a number of key factors such as the type of the loan you want to avail of, the number of years you need to pay the mortgage and your credit report. Mortgage quotes vary from one lender to another so, it is good to check and try out the various mortgage quotes offered by various lenders. The Internet is a very good source to get each online lender's mortgage quote.

Aside from being able to get the best deal among lending and mortgage companies, mortgage quotes are essential in purchasing or refinancing such that you also get to know the latest mortgage rates in the market. Mortgage rates fluctuate and change every time even every hour for every state (if you did not know this, mortgage rates vary from state to state). Because of this, it is important that you check the mortgage rates frequently and check if there is an expiration date coupled with the mortgage quotes you got.

100% Mortgage financing.

Ideally, traditional mortgage lenders want new homebuyers to have a 20% down payment when purchasing a new home. Thus, if purchasing a $200,000 home, you should be prepared to have $40,000 as a down payment.

Unfortunately, many people do not have this kind of money lying around. For this matter, private mortgage insurance (PMI) was created as a way for mortgage companies to recoup their money if a homeowner defaults on the loan. There are various loans available to assist people with down payments. In some instances, homeowners can obtain 100% financing, and avoid PMI.

What is private mortgage insurance?

Because Americans are earning less money, and home prices are steadily increasing, the majority of the population is unable to save the recommended down payment of 20%. In order to make owning a home possible, mortgage companies created a particular mortgage insurance, (PMI), for people with less than 20% to put down on a home. This insurance protects the lender if you default on the mortgage.

Home Mortgages - making the Australian dream come true.

Getting a house of your own is a lifetime achievement and home mortgage helps you in achieving this milestone much earlier than it would otherwise have been possible. In fact, the first home mortgage is also filled with a lot of emotion. Home mortgage is really something that makes dreams come true.

Understanding what a home mortgage is?

Home mortgage is something that allows you to buy a house even if you don't have enough money to pay for it right away. This is made possible by borrowing money from someone and paying it back in monthly installments.

The person who lends you money is called the home mortgage lender. The home mortgage lender lends you money for a specific period of time (up to 30 years) during which you are expected to pay back the money in monthly installments.

There are certain terms and conditions associated with the home mortgage agreement and these terms and conditions govern the home mortgage throughout its tenure. Among others, the most important thing is the interest rate that the home mortgage lender charges you. Interest charges are the means through which the mortgage lenders earns on this financial transaction called home mortgage.

Getting a Good Mortgage Lead on the Internet

Sometimes, mortgage brokers often fall into prey on mortgage leads that could only waste their time, effort and money in trying to work it out. Some mortgage leads could be filled with data that is inaccurate, incomplete and not completely true. Some leads could not also be new or fresh and could have been handed out already to other mortgage brokers.- the name of the applicant
- the co-applicant's name
- street address
- city
- state
- Zip code
- E-mail address
- Work phone
- Home phone
- Type of house
- Current value
- Purchase price
- Year purchased
- First mortgage balance
- Interest rate
- Type of Loan: Fixed or Adjustable
- Second Mortgage Balance
- Second Interest Rate
- Type of Second Loan: Fixed or Adjustable
- Monthly Payment on Second Mortgage
- Behind on Payments
- Number of Late Payments
- Credit Rating
- Employer
- Years There
- Income
- Monthly Debt
- Loan Type
- Ln Amount/Cashout Desired
- Call time
- Comments and Questions

Getting a Home Mortgage

So, you're interested to get a mortgage for your dream house. In order to do this, there are some steps you need to get the right home mortgage for you.

The initial step is to order your credit report from the country's three major credit reporting agencies which are Equifax, TransUnion and Experian. Your credit report is very important in your home mortgage because this determines your ability to pay off the home mortgage you are applying for. Your credit report reflects how up to date you are on paying your credits, your outstanding balance and the amount of money you still owe. A good standing on your credit report assures the lenders that their risk in investing with you will assure them that they will get their money back and assures you that your home mortgage loan gets approval.

In relation to this, financial experts recommend that it is wise for you to check the credit reports once you have them for errors before submitting these to lenders.

The Basics of Mortgage

Let's face it, not everyone has enough money on his bank account to buy a house. If you are an average American, chances are you need a mortgage loan.

There are many types of mortgages and these can be classified into 2 categories. These are conventional and governmental loans. Mortgages from both categories can be further categorized as fixed rate loans, adjustable rate loans and different hybrids or combinations from these mortgage loans.

The US government provides mortgages which can be found from three government departments. These are the US Department of Veterans Affairs (VA), US Department of Housing and Urban Development (HUD) and The Rural Housing Service (RHS) of the U.S. Dept. of Agriculture. Aside from these, other mortgage plans for low cost to moderate housing plans are also available in different cities, states and counties. Most of these provide fixed rate mortgages and low interest rates.

Mortgage plans that are not included among these are under conventional mortgages. There are 2 kinds of mortgage under this category. These are conforming mortgage loans and non-conforming mortgage loans. Conforming mortgage loans follow the guidelines and conditions that were set up by 2 stock-holder owned corporations: Fannie Mae and Freddie Mac. These two companies purchase mortgage loans from lending institutions and package these into securities that are then sold to investors.

Mortgage Application.

Buying a Home and committing to a Mortgage can be very scary! A home mortgage loan is the largest debt that most Americans will take on in their lifetime. As such, making the decision to take out a mortgage is not one that most first time homebuyers take lightly.

A home mortgage loan can have a staggering, and sobering effect on the first time home buyer.

Not only will your monthly mortgage payments probably be the largest bill that you face each month, but the total amount of debt realized with a home mortgage loan can have a staggering, and sobering effect on the first time home buyer.

I can remember the months leading up to my decision to fill out a mortgage application. I had nightmares about loosing my job, not being able to keep up with my payments and finding myself homeless. And those were on the good nights when I was able to sleep at all!

Committing to a Home Mortgage Doesn't Have To Cost You Your sleep Get the Best Rate on Your Home Mortgage Loan. Home mortgage interest rates hit record lows in 2004 and have remained at record lows as we go through 2005. It is possible today to get a thirty-year fixed rate home mortgage loan for under five percent, and an adjustable rate mortgage can be found for under four percent if you look hard enough!

Mortgage Approval.

What is important to lenders? Not every applicant is approved for a home loans the first time he or she applies. For a variety of reasons, even after a lot of hard work, sometimes a loan just can't be approved. It may have to do with the applicant's credit or savings history, employment stability, debt structure, or the value of the home.

The good news is that a denial is merely a detour, not a roadblock. Purchasing a home takes planning, discipline and hard work! Follow these tips and with our assistance, homeownership is not out of reach.

Before applying for a home loan establish a constent record of paying bills on time.

Before making a loan the size of a home loans, most lenders will want to review how you have handled your credit in the past. This includes all credit accounts, including utilities, revolving debt (credit cards, etc.), and installment debt (car loans, student loans, etc.). It is critical for you to bring all overdue bills up to date immediately and begin paying them on time in a consistent manner.

Frequent employment changes are normal.

Lenders are more likely to look favorably on an applicant who has been in the same (or similar) line of work for generally two or more years. If you have been working steadily for less than two or more years, expect the lender to ask why. There are many acceptable reasons, including:

Reduce Your Mortgage to 10 Years or Less.

With all the talk lately about Mortgage Cycling versus Bi-Weekly Mortgages which one is really right for you? Choosing the correct one could literally save you thousands of dollars and shave off approximately 20 years on the life of your 30 year mortgage.

So a little background on the principal of each program needs to be told. Bi-weekly mortgages became popular a few years back when interest rates were extremely high and it made a lot of sense to pay as much on the principal of your mortgage as you can in a systematic way.

The way it works is that your mortgage payments are split in two every month so you end up paying (26) 1/2 payments instead of 12 whole payments which in effect ends up paying one additional month towards your principal.

Doing this ends up saving the average homeowner thousands of dollars on the interest payments over 30 years and shaves off around 7 years of payments. Not bad for back then. But as interest rates started to drop the net effect of savings are not as great now as they were when rates were higher.

But with the discovery of a recent mortgage loophole by Craig Romero, a senior mortgage analyst, Mortgage Cycling was born. Mortgage cycling allows a homeowner to build up 10 times faster then biweekly mortgages and allows you to pay of your 30 year mortgage in 10 years or less.

Mortgage calculator

Want to know how much you can borrow to purchase your new home or investment propert? Please use our online Mortgage Calculator to calculate the amount you may expect to borrow. The calculator will take your financial situation into mind, so please fill in all feilds for a more accurate calculation.

Home Loan Calculator

Mortgage loan calculators help you work out your ideal monthly payments. A lot home loan calculators can be used for a variety of uses like used home loans and refinancing loans. With this calculator, you can usually enter your own interest rate for your loan.

Online Home Loan & Mortgage Calculator

There's quite a lot of home loan calculators out there that you can use and you'll find links to online home loan calculators that can hopefully help you find the best deal.

Home improvement loans

Home improvement loans are loans specifically designed by loans companies to help you fund an essential home improvement project.

Home improvement loans provided by loans companies are secured on the value of the borrower's property. The amount available to the borrower is subject to the equity in their property and their ability to repay home loans when their outgoings and other loans are taken into account.

Loans to make improvements to your home that will increase the market value.

A home improvement loan is one that is issued by the lender on the basis that you use the amount of the loan to make improvements to your home that will increase the market value.

Typically a home improvement loan is offered by your existing mortgage lender, where the equity value in the house acts as security for the lender. Where this is the case, the amount you can borrow may be determined by the amount your improvements will add to the market value of your home.

Home improvement loans can be arranged at the same time as you are buying the property. This is as long as the total amount of mortgage and home improvement loan will not exceed the value of the property.

The reason why you would want to get this loan from your mortgage lender is that you may be able to obtain the same interest rate on the loans that you are paying on your mortgage, which cannot be beaten with a personal loan

Wizard home loan

Wizard offes competitive home loans, just like all the other major Australian banks and mortgage lending companies. And just like the other lending institiutions, buyers have to be aware of all the costs and pitfalls involved in securing a home loan from Wizard Home Loans.

What to consider when securing an Wizard home loan.

Here are some useful tips on what to consider before applying for an Wizard home loan. If you need money to pay bills or make home improvements, and think the answer is in refinancing, a second mortgage, or a home equity loan, consider your options carefully. If you can't make the required payments, you could lose your home as well as the equity you've built up. That's why it's important not to let anyone talk you into using your home to borrow money you may not be able to afford to pay back.

Contact several lenders - including banks, savings and loans and mortgage companies. Ask each lender about the best loan you would qualify for then compare the following:

The annual percentage rate (APR):

The APR is the single most important thing to compare when you shop for a loan. It takes into account not only the interest rate, mortgage broker fees, and certain other credit charges the lender requires the borrower to pay, expressed as a yearly rate.

ANZ Bank home loan

Australia and New Zealand Bank (ANZ) offer competitive home loans, just like all the other major Australian banks. And just like the other lending institiutions, buyers have to be aware of all the costs and pitfalls involved in securing a home loan from the ANZ Bank.

What to consider when securing a home loan from the ANZ.

Here are some useful tips on what to consider before applying for an ANZ home loan. If you need money to pay bills or make home improvements, and think the answer is in refinancing, a second mortgage, or a home equity loan, consider your options carefully. If you can't make the required payments, you could lose your home as well as the equity you've built up. That's why it's important not to let anyone talk you into using your home to borrow money you may not be able to afford to pay back.

Contact several lenders - including banks, savings and loans and mortgage companies. Ask each lender about the best loan you would qualify for then compare the following:

No deposit home loans

A few years ago, many of us would have had a light chuckle to ourselves if someone mentioned that you could borrow money to buy a house with only the promise of solid future earnings. But today this is a regular occurrence. Many of the industry's non-conforming lenders are selling these financial products to many happy consumers, with most of the major banks avoiding this riskier route.

Ideally, the individuals set to gain from this product have high incomes in industries with high job security. With this loan you are presuming that the benefits of immediate ownership and debt outweigh the costs of renting. This may not always be the case however. The risk to the lender is greater and so you will pay a premium interest rate for the privilege, usually about 2% higher than the current market rate.

With this is mind, it may be time to clean the dust of the old mortgage calculator and assess the long term financial gain or speak to a financial consultant to establish whether this is a sound option for you, and for many people it can be.

Of course, there is no such thing as a free lunch and strictly speaking, no deposit means "with enough money to cover initial expenses" such as stamp duty, loan fees and mortgage insurance. If you are lucky enough to be eligible for a government first home buyers' grant, you may have most of these expenses paid for you.

Home Loans after Bankruptcy

Attaining homeownership is a great goal. If you have a good credit rating, reaching this goal is easy. On the other hand, if you have a few credit blemishes or filed a recent bankruptcy, you may have to delay homeownership until your credit situation improves. Several lenders specialize in bad credit mortgages, and offer loans to people after bankruptcy. However, before accepting an offer, consider the following points.

After acquiring a credit card, maintain current payments. Keep balances low, and try to payoff the balance each month.

A good payment history will increase your credit score. Soon, you will qualify for unsecured credit cards. Try and get approved for three new credit accounts. As your credit improves, so do your chances for getting a low rate mortgage.

Choosing a Good Mortgage Lender

Depending on your credit rating, you may get approved for either a prime or sub prime loan. Prime mortgage loans are offered to individuals with excellent credit. On the contrary, sub prime loans are intended for those with lower credit scores. Prior to applying for a loan, request an online quote from a mortgage broker. Based on your credit information, a broker will provide multiple quotes from sub prime or prime lenders.

How To Get A Bank To Modify Your Home Loan

Lots of people are looking to modify their home loan in one of several ways, but not a lot of people know exactly what they have to do to start the process. Remember, there are actually several different ways a home loan can be modified. And while the government is encouraging banks and homeowners to work together, there’s been a lot of confusion on the part of many home loan customers about exactly what they have to do to get a mortgage modified and monthly housing payments reduced.

First, it’s important to understand that banks would rather have you living in your home and paying them something than not have you in the home at all. Banks don’t want to own a bunch of empty houses they may or may not be able to sell. They would rather get regular monthly payments from you, even if those payments are reduced from what they once were, rather than foreclose on your home and evict you.

That being said, some banks and some lending institutions are obviously better about modifying mortgages than others. Bank of America, one of the largest mortgage lenders after buying Countrywide, has a reputation of being reluctant to modify home loans. Larger banks will actually have entire departments devoted to home loan modification, while some smaller community banks may only have a few customer service reps who specialize in modifying mortgages. Yet smaller banks are often more willing to help individuals reduce their mortgage payments so they can stay in their homes.

Here, then, are some tips for what you can do to increase your chances of getting a bank to work with you to modify your home loan.

Call The Right Department: When you first try to contact your bank about modifying your home loan, you want to make sure you are speaking to the correct people. You can ask for a “Loan Modification”, “Homeownership Retention” or a “Loss Mitigation” department. Some banks have entirely different loan departments based entirely on the type of the home loan you have. Loss mitigation is the department in many banks that handles loan situations where defaulting on the loan is very likely. That should give you some indication of how serious you have to be modifying your home loan

Four Ways To Modify A Home Loan

With housing prices and values falling and with a record number of people out of work or underemployed there are a lot more people looking to modify their home loan or mortgage so that they can continue to pay the bills and stay in the house they have. You will most likely need to take the initiative in negotiating a home loan modification, though some banks will purposely try to work with you the minute you miss a mortgage payment.

It’s important to remember that banks that own mortgages and only make money if you they have someone in the home making regular loan payments. Banks often sell foreclosed houses for less than the value of the original loan they extended, so it’s in their best interest to work with the current owners and make modifications to home loans when possible.

Remember: banks make money on mortgage payments. Banks aren’t stupid: many would now rather modify your loan and keep you making payments you can afford rather than evict you and get stuck with an empty house that’s not bringing in any money at all for them. Home owners also benefit by modifying their home loans, even if their mortgage is underwater, because over the long term owning a home is still a better value than renting.

There are essentially four ways to modify a home loan:

Modify Your Home Loan Interest Rate: One of the most important aspects of any home loan is interest rate. The first option in any mortgage modification is usually to lower the interest rate. Interest rates of 8 or 9 percent were common five years ago, but now you can get a home loan rate of 5 or 6 percent if you can work with your bank to lower your rate. If you can change your mortgage rage to just one or two percent lower than your current rate you could save hundreds every month on a mortgage payment.

Modify Your Home Loan Terms or Number of Payments: Most home mortgages are 30 year mortgages, but some banks now offer special mortgages that are 35 or even 40 year loans. By extending the length of the home loan there are more payments, which means each payment per month is lower. Some home owners who initially signed up for bi-weekly (typically twice a month) payments sometimes want to move to monthly payments to fit a change in income levels. Modifying a home loan’s number of payments is uncommon, but still done in some cases.

What is a Home Insurance Policy

The insurance policy is a contract and like any contract contains clauses and conditions. Claims are settled in accordance with the conditions detailed in the policy. Insurance works on the principle that everyone is exposed to risks but they only affect a certain number of people at any one time. However, some risks occur with great frequency than others, and if they materialise they can have varying levels of impact. When you report a claim, the Insurance Company needs to check that the policy covers the loss. Once the appropriate documents are produced to verify a claim called the process of settlement is quite fast.

These days there are many housing finance companies in India that offer home insurance. The home insurance rates differ from company to company based on the policies. The NRI insurance services are also quite different from what is available to Indian residents. The disasters that can be insured against are fire, earthquakes, storms, cyclones, tempests, tornadoes, hurricanes, floods or inundation, lightning strike, explosion, landslides, impact by vehicles or aircraft, and bursting or overflowing of water tanks and pipes. Home insurance covers almost all kinds of risks, from damages arising from terrorist attacks to breakdowns of water tanks.

Home insurance niche

Most of us do not go for home insurance. Why insure home, we ask. Only an insurance agent would tell you why you should go for insurance for your house. It may catch fire. We live in an earthquake prone zone and it is highest on the Richter scale. Your house may be exposed to burglary and there could be several reasons for you to go for insurance.

But then you give it a thought for a moment. You realize you have not heard even remotest of your family or friends having ever been affected by such accidents. If Gujarat quake had happened close by you would have immediately gone for insurance without the agent doing much selling. The region recorded one of the highest number of insurance policies sold in the history of insurance business after the quake.
But quake in Gujarat is a history now. Unless it repeats the spurt in the business is unlikely.

Home insurance in India is regarded as largely a safeguard of low significance. Often such are policies are institutional in nature or are ones availed by large business houses or top executives. Then there are big housing societies which would opt for home insurance.
Home insurance companies in India too give home sector a small consideration. The major chunk of the insurance business is taken by vehicle, life followed by insurance-cum-investment instruments.

The latter, insurance-cum-investment business, has come to stay as the fastest growing market as it is more closely linked with tax exemption regulations.
Says Ramanan, a business executive with a multinational, " I have never believed in long-term measly savings though I know even they add up to some tidy sums of money; I have invested in short-term insurance-investment instruments with lock-in as long as three years; and let me tell you I have done fairly well, call it luck or what you may."

Why is Home Insurance Mandatory?

The role of Banks/HFCs
On the demise of the borrower of a home loan, the burden of repayment of loan amount falls on the surviving members of the family. In the unfortunate event of a situation arising in which you would be unable to pay the outstanding loan amount of a home loan, insurance cover that comes on payment of a small premium seems like a godsend boon.

The insurance company repays the loan amount and prevents the bank/HFC from taking over the underlying house to recover the dues. Home loan insurance is meant for borrowers who have no alternate source of money to raise capital. Nowadays, most of the banks/HFCs have an insurance arm - directly or through an associate company – to offer the insurance product along with the home loan product. There is a nominal fee attached with the product. They may choose to give it for free.

Repayment terms
By virtue of being a term insurance product, the premiums are not high, and the borrower may opt for the product from the market at a low cost. As the loan amount increases the repayment amounts also increases. The repayment of the loan is made through equated monthly installments (EMIs). Repayments are made simpler this way. EMIs increase with the increase in loan amount.

Premium
There are single premium covers, i.e. the premium is payable only once, at the inception of the loan. It is however wise to take this cover at the time of taking the loan, as being a part of the loan package; the cost may work out to be lesser. The borrower can also negotiate and have the insurance premium reduced substantially.

Premium for your cover depends on quantum of loan, tenure, and age and health condition of the borrower. A higher loan amount implies a higher premium. It helps if you are a young borrower as the premium charged is less. A person with a medical condition like heart ailments will be charged more premium than a healthy individual.

Policy Coverage
Home insurance can be bought only for the building (structure) of your home, or only the contents (belongings) or both. The policy covers the losses to the structure and contents of your home due to any natural and man made calamities.

Why is Home Insurance Mandatory?

The role of Banks/HFCs
On the demise of the borrower of a home loan, the burden of repayment of loan amount falls on the surviving members of the family. In the unfortunate event of a situation arising in which you would be unable to pay the outstanding loan amount of a home loan, insurance cover that comes on payment of a small premium seems like a godsend boon.

The insurance company repays the loan amount and prevents the bank/HFC from taking over the underlying house to recover the dues. Home loan insurance is meant for borrowers who have no alternate source of money to raise capital. Nowadays, most of the banks/HFCs have an insurance arm - directly or through an associate company – to offer the insurance product along with the home loan product. There is a nominal fee attached with the product. They may choose to give it for free.

Repayment terms
By virtue of being a term insurance product, the premiums are not high, and the borrower may opt for the product from the market at a low cost. As the loan amount increases the repayment amounts also increases. The repayment of the loan is made through equated monthly installments (EMIs). Repayments are made simpler this way. EMIs increase with the increase in loan amount.

Premium
There are single premium covers, i.e. the premium is payable only once, at the inception of the loan. It is however wise to take this cover at the time of taking the loan, as being a part of the loan package; the cost may work out to be lesser. The borrower can also negotiate and have the insurance premium reduced substantially.

Premium for your cover depends on quantum of loan, tenure, and age and health condition of the borrower. A higher loan amount implies a higher premium. It helps if you are a young borrower as the premium charged is less. A person with a medical condition like heart ailments will be charged more premium than a healthy individual.

Policy Coverage
Home insurance can be bought only for the building (structure) of your home, or only the contents (belongings) or both. The policy covers the losses to the structure and contents of your home due to any natural and man made calamities.

Are Your Downloads Insured Within Your Home Insurance

In this age of new technology consumers are increasingly using digital downloads to access music, games,films,computer software programmes and ringtones.

If your home were burgled and lost your iPod,mobile phone and laptop, your contents insurance should cover the loss of the actual items – but what about all the downloaded information contained on them? Would your policy cover you for the loss of your downloaded record collection built up over months or even years, or all the films you had previously paid to download ?

Some contents insurance policies include downloads cover as standard within the policy, but often do not confirm this within the terms and conditions section.Some do not include download cover in any form.It is important to check with your Insurer whether your policy covers you, or if you need to take out a separate policy for the downloaded films,software,games,television programmes and computer games stored on your PC,laptop,MP3 player, home entertainment centre or mobile phone.

You may also need to take additional cover for your mobile,laptop or MP3 player if you take these outside your home, for example to work or on holiday.

Always keep receipts, credit card statements or email invoices on file. These are vital as proof of purchase if you need to claim on your policy and will help make any claim easier to process.

If you download a large amount of information, check with your Insurer whether they have an upper limit.

Do you have the right cover ?

The digital download market is relatively new, and as such is evolving and developing very quickly. The Insurance market is also having to evolve to keep pace with this.

In a recent survey 22 out of 46 companies said their contents policies included download cover as standard. To remain competitive, other companies are expected to develop their policies to include downloads soon..

Before taking a separate policy, check your current Contents Cover section for a subsection called “Downloaded Information”

Nationwide and Direct Line policies for example, contain this section so it is worth checking the wording on yours.

According to Malcolm Tarling, a spokesperson for the Association of British Insurers; 'Music on your iPod or computer is the modern day equivalent of your record collection. Insurance companies continue to review their policies to fit in with modern lifestyles. Insurance companies have told me that they are looking at the situation.'

Why is Home Insurance so Important?

Your home is probably your single largest investment and your mortgage will be secured against it. If you’re uninsured and your home were to burn down, then not only have you lost your home and largest investment, but you’re still faced with paying back the mortgage in full.

For many that would mean financial disaster. Home Insurance avoids such risks.

Clearly, not many people are faced with seeing their home burn down but damage and loss to your home can occur in many ways. Storms, gas explosion, vehicle accident and flood may spring to mind. But don’t forget that a thief will probably damage your house whilst gaining entry or might cause damage to your doors or decorations whilst ransacking your home. They may even try to steal the strangest of items – yes your toilet could even be on their shopping list!

If you have a leak, you’re responsible for having the leak repaired, but the structural damage caused by the leak will be covered by your Home Insurance. Often the cost of repairing a leak is small compared with the cost of repairing the damage caused. For example, a big problem can occur in the winter if the owners go away and a burst develops because of the cold. If the burst is in the roof, ceilings will come down and the water will damage a large part of the house. This happened to someone we know who returned after a Christmas break to find a stream of ice cascading from their front door. The house took two months to repair.

What else is covered? Falling trees, crashing cars, an aircraft landing on your house (or something falling from one), rampaging farm animals, earthquakes, explosions and lightening? Yes if your house is damaged you’re insured.

What about damage by vandals (insurance companies call them “malicious persons”) or a riot? Yes the structure of your home is well insured.

Are you covered for landslip, land heave or subsidence? Yes, and these can really cause major damage to your property. You are insured against all these perils but your insurer will want to know if your house is in an area known to be at risk from these problems. If you are, then these higher risks will be reflected by a higher premium.

Your Home Insurance cover allows you to claim for the cost of repairs or even the complete reconstruction of the property if it is damaged or made uninhabitable. If your home is rendered uninhabitable, most good policies will also allow you to claim for alternative accommodation during the repairs works.

When you consider the risks, no matter how remote some of them may seem, and the impact they’d have on you and your family, it’s best to be safe and insured.

And finally, if you have a mortgage, your mortgage provider will make it a condition of their loan that the property is insured and the insurance is maintained at all times. If you fail to do this, then they will probably require immediate repayment of the whole outstanding mortgage.

Home Insurance. Flood Alert

It's a high flood risk that's most likely to make your house uninsurable. According to a recent survey, 6.5 million homes are already at risk from flooding of which 1.5 million are in high risk areas. The government has completed flood defences in many such areas and protection for a further 80,000 homes is due this year. But concerns have also been expressed about a further 120,000 new homes planned for the Thames Gateway which are potentially in a high "at risk" zone. Yet many areas remain vulnerable. And if global warming continues, by 2030, the 1.5 million at risk could mushroom 3.5 million.

Back in 2003 the Association of British Insurers (ABI) agreed the principles which committed UK insurers to offering home and contents insurance for properties in areas which are assessed to be at a flooding risk once in seventy five years or more. The rider was that the flood defences had to be already in place or would be completed by the end of 2007.

The Department for Environment, Food and Rural Affairs (DEFRA) has the responsibility of developing and maintaining these flood defences but within the insurance industry there's widespread concern that insufficient progress is being made. As a result the insurers have has warned the government that there could be widespread withdrawal of insurance cover if progress is stepped up.

In the mean time, those in areas threatened by flood water could find their insurance premiums soaring. Whilst the insurance industry agreed to provide insurance cover, their commitment was simply to maintain premiums at "reasonable" levels. But there was no definition of what "reasonable" means. As a result premium increases of 60% have been common with up 400% increases in bad areas. In a tiny number of cases, cover has been withdrawn altogether, mostly in country areas where DEFRA considers the cost of defending a cluster of a few homes to be uneconomic.

Environmentalists warn that unless DEFRA gets it's skates on, the UK 's current bill for flood damage could rise from £950 million a year, to £3.2 billion. After all, the average insurance claim for household flood damage is £30,000 - that's even higher than fire damage. And localised events like the 2004 flood at Boscastle, Cornwall , can cost the insurers over £15 million.

If you are in any doubt whether your home or proposed home, is in a flood risk area, you should visit www.environment-agency.gov.uk. This is DEFRA's web site where you can check whether they think your home is at risk of flooding. Their maps were originally designed for planning purposes and provide information on a post-code basis.

Whilst many insurers use the DEFRA information, others like More Than, have their own flood maps. These assess homes individually rather than post code areas. This means that if your existing insurer increases your premium for flood risk and uses the DEFRA information, you may still be able to get a cheaper rate from an insurer using it's own flood data if its data identifies that your property is beyond the "at risk" zone.

The ABI has recently added to the pressure on DEFRA to accelerate the building and upgrading of flood defences. It has warned that unless the government increases its spending on flood defences, the insurance industry may not continue their commitment to the 2003 principles.

Home and Contents Insurance

The cost of repairing and rebuilding houses is a reflection of the rising price of labour and building materials. This means that cost to the insurers of claims under the buildings cover similarly rises. So as their costs rise, so do your premiums. And there's also the indisputable fact that cost inflation also affects the insurance companies own operating costs. Wherever possible, they're bound to add a little extra on for that!

Then there's that lovely British weather. Michael Fish could be forgiven for believing we don't live in a hurricane zone, but nevertheless it's a fact that storms, and especially floods, are becoming ever more frequent. Flood damage can be particularly destructive with, according to the Association of British Insurers, the average insurance claim ranging between £15,000 and £30,000. And during the last 18 months we have seen particularly destructive floods create headline news at Helmsley in North Yorkshire, Carlisle, and Boscastle in Cornwall. Those events must have cost the insurance companies multi-millions.

The other area where costs have been rising is burglary. The average burglary claim has now risen to around £1,400. There seem to be two reasons - firstly burglars are finding pickings easier to come by and move on. Modern family homes are packed with valuable electronic gismos - from laptops to I pods, digital cameras and flat screen TV's. The other reason is that burglars are targeting well-off neighbourhoods more and more.

Against this background the insurance companies are able to price home and contents insurance down to individual postcodes. If their records show a problem with flooding, or subsidence, or an increasing incidence of burglary in you immediate area, their computers will load your premium to reflect the additional risk.

Your no-claims discount will only serve to offset these upward pressures to a certain extent. And don't forget that once you have a five years no-claims record, your discount doesn't increase, it's capped. Thereafter, all the premium increases will land fully in your lap.

So what can you do to save money?

The most important step by far, is to shop around every year for the best available deal. Maybe it's a chore, but thirty or forty minutes on the Internet (including ten minutes on this web site!) will yield you results. Within that space of time you'll have found the cheapest insurer and, as an online customer, you'll probably have qualified for an additional 10% discount. Then you can always agree to pay by direct debit - that'll also trim off a bit more.

Of course there are other things you can do, especially in the arena of home security. Join the local neighbourhood watch scheme, install security locks on your windows, fit external security lighting, up-grade the locks on your doors and get a burglar alarm. Added security will earn you discounts on your insurance but will cost you money to install! Perhaps the added peace of mind alone will be worth the cost. Only the local neighbourhood watch scheme arrives free!

The best general rule is don't stick with the same insurance company too long. Keep them on their toes. They have a tendency to take loyal customers for granted. Yes, it really does pay to shop around - try it and prove it to yourself!

House Insurance - Forcible and Violent Entry

Most home insurance policies will cover you for theft claims made with no forcible and violent entry. That is to say that despite their being a theft there was no sign of break-in such as a broken window or door.

Common claims follow doors or windows being left open or workmen stealing from the household.

Often home insurance companies also restrict the level of non-f&ve cover available to residents of the home living away in temporary accommodation. The most typical example is students who are covered under their parents home insurance policies. Not having their possessions covered for theft without f&ve is not in keeping with student lifestyles where students are used to coming in and out of each others rooms. Our student claims experience suggests that over a third of theft claims follow no sign of break in to the property. Specilaist student insurance is available in these circumstances from companies like http://www.endsleigh.co.uk who can cover students under a specialist policy.

On a standard home policy covering non students, non - forcible and violent entry cover is normally provided but their can be exclusions with cash being the most likely exclusion.

To find out what cover you have, you should always check your policy. You should also be aware that their is a fine line between a non f&ve claim and negligence on behalf of the policyholder which can invalidate claims.

Tim Larden writes for yourhomeinsurance.co.uk a site with information about the UK House Insurance and is a site specialising in cheap contents insurance. Their policies include cover for forcible and violent entry. For a quote on contents insurance , you can use that specialist area of the site. If you live in shared home or flat - there is a lot of specific information relating to forcible and violent entry on the site.

5 Tips For Cheaper Home Insurance

Home insurance is a basic term for two different types of insurance policy. Buildings insurance to cover the construction of your property and home contents insurance to protect your valuables and other household objects.

The problem is that not all home insurance policies are created equal making it difficult to compare like with like. The areas and level of cover provided vary from policy to policy along with the premiums. So having a definite idea of what you need to insure and for how much will help minimise the overall time and money spent buying it.

TIP 1: Cut the risk, cut the cost

All insurance policies protect against the risk of financial loss. So to cut the cost, cut the risk to the insurer and you'll get a lower premium. To give you an idea, here's a quick summary of the most effective tactics...

. Contact your home insurance company or local neighbourhood watch scheme and they will send you a list of steps to make your house more secure and less likely to be targeted by thieves.

. Fit locks to all windows and level 5 (BS3621) mortise deadlocks locks to the doors. Most insurance companies will give you up to 10% off your home contents insurance if you have these kind of locks fitted around your house.

. Having a good alarm fitted by a recognised alarm fitter, which your insurance company can recommend, can give you up to 10% off your policy. Bear in mind that these are expensive alarms which require an annual check up.

. Higher policy excess. You will usually have to pay the first £50 of any insurance claim, but if you're willing to pay more then, your premium will fall now.

. Neighbourhood watch schemes. Some home insurers offer discounts if you live in a neighbourhood watch area; however this is less common.