Last minute home improvement projects with tax benefits
December 27, 2009
Homeowners looking for year end home improvement projects, should look at the benefits of many of the energy savings rebates the government offers for projects that are environmentally friendly and help reduce overall energy consumption. The process of improving your home is likely an ongoing adventure for the majority of homeowners that seem to have a never ending list of projects to complete.
The government has been issuing tax rebates for many years to help spur consumers to choose energy efficient products and projects. This past year the government extended energy efficient rebates into a number of new areas including, windows and insulation. Products that are eligible for energy efficient rebates are clearly identified by the manufacturer and meet heightened guidelines to reduce the consumption of energy in your property.
Through the government’s energy star program, consumers are eligible to receive a tax credit equal to thirty percent of the product purchase price, up to $1500. These tax credit are eligible on:
New Windows
Insulation
Furnaces
Air Conditioning Units
Water Heaters
Roofs
The tax credit is in place through the end of 2010 and is considered a one time only benefit, per household. The credit is eligible for use on the products and labor, allowing you maximum benefit for your taxes. It is important that the manufacturer provides you the appropriate paperwork to submit with your taxes to be eligible to receive your energy tax rebate. If you are looking for a last minute home improvement project, this could be a great way to lower your tax obligation and cross another item off of your improvement to do list this year. If you have specific tax questions, it is always a great idea to consult a tax attorney prior to finalizing your project contract and purchases to ensure you receive maximum benefit for your specific financial situation.
Review your insurance policy to find the loopholes
December 7, 2009
Time to do some end of the year homework, a good place to start is to thoroughly review your homeowner’s insurance policy. The sudden surprise of a home disaster is the worst time to find out you lack the necessary coverage with your insurance policy. Dwelling and homeowners insurance is often required for homeowners who have properties that are financed or secured through a mortgage loan. There are a number of areas of insurance coverage that are often taken for granted by unsuspecting homeowners and could lead to items lacking sufficient or total coverage.
One good place to start is to review your coverage for items damaged by water and storms. Storm damage can often lead to flooding in your home, you would likely find that your insurance companies has very limited coverage when it comes to flooding in a property. As a general rule of thumb, your insurance company does not cover flooding that is a result of a storm or enters your home through the foundation or walls of your property. Water damage that is a result of broken pipes, sump pumps or sewage back ups tend to be covered within most insurance policies. The option to extend coverage to cover these unexpected disasters is available with almost every insurance carrier. Property owners may elect to expand their coverage to include flooding or water damage, this is typically referred to as an insurance rider to your coverage. The expanded coverage will likely raise your premium, but in many cases will be well worth the investment if an unforeseen disaster occurs to your home. If you have the unfortunate luck to live in a FEMA declared flood zone, you may be required to purchase separate insurance to cover this. Flood insurance is different than a rider of coverage on your insurance policy and is endorsed by the flood smart program. This will add another expense to your monthly housing budget, but is necessary to recover damage if your home is unexpectedly caught in a flood from severe storm or hurricane.
The evidence of water damage can also bring on another key area of water problems in your home. Mold can begin to grow in as little as forty eight hours after your home has been exposed to extreme moisture. Insurance companies have varying degrees of coverage for mold in your home, so be certain to review this coverage in your policy. A common tactic for insurance companies to try to avoid paying a claim is citing that the condition was a pre-existing condition, that occurred or appeared prior to their responsibility of coverage. This can often shift the burden of proof onto the homeowner to demonstrate that the mold was not hidden or a result of neglect by the property owner. Careful review of your insurance policy should help to provide direction as to how mold is treated with your coverage, as well as your responsibilities and guidelines to follow.
