An Easy Guide To Keeping Your Home And Assets Protected
Securing your home and assets is probably the most important thing you can do for yourself, even more so than anything else you would do to enjoy your financial freedom. A majority of people on their deathbeds regret not protecting their homes and assets properly even though they had plenty of warning signs that things weren’t okay.
Keeping your home and property protected doesn’t have to break the bank, but it does take some effort. This article will outline how you can keep your homes and assets protected.
One of the most important things you can do to protect your home is to purchase a warranty on it. The Michigan home warranties will typically cover anything that would go wrong with your home, but they are oftentimes limited to big-ticket items. There are several companies that offer warranties on homes in Michigan, and they all tend to have their own rules.
The most common type of warranty covers damage from “acts of God” such as rain, wind, and hail. Most contractors will not work on a house that is damaged by any of these things because they can’t be held liable for it, but a warranty will (usually) cover that damage and reimburse you for both repairs and the cost of buying new materials.
Cover Your Assets With Insurance
You’ll also want to make sure your property is insured if it includes valuable items. You should get a rider on all insurance policies that would pay for the loss of any valuable items, including expensive collections, because otherwise, you may find yourself out of luck when there’s a break-in or some other crime against your home.
Also, if you keep any valuable assets in your home like art, antiques, or other valuables, make sure they’re insured too. An inexpensive way to do this is to get an appraisal done on each item and get them all appraised by the same person using standard deduction tables. Then use that figure as your base price for replacement.
This way, when you need to make a claim, all you have to do is provide the appraiser with the receipt and the insurance company will cover it up to that amount. You can also get a rider on your homeowner’s policy for several thousand dollars of coverage if you’d like additional protection against natural disasters and other things out of your control.
Consider Getting A Life Insurance
You should also get Life Insurance, which is basically a policy that pays off your debt and provides for your family if you were to pass away. This one is an especially important option for single parents who are raising children alone on the income of another parent.
You will want to get final expense insurance so your loved ones aren’t left with the burden of paying off your debt once they’ve lost their job due to your death. These policies will pay off everything you owe up to a certain amount and leave the rest of your estate for your family to split as they see fit.
Another thing that you need is insurance on anything that earns money or produces an income, such as rental properties, stocks, bonds, 401ks, and other types of investments. If you have anything that earns money, you need to make sure it’s insured.
Get An Estate Plan
You need to get an estate plan. You’ll want to make sure that there is an executor of your estate here and that all bills and assets are covered. You will want to get a living trust for this and you’ll need to be sure it’s recorded.
Finally, you’ll want to make sure you keep your affairs intact by checking if there are any loopholes that could be used against you. For instance, marital assets become community property at the time of divorce even if they were purchased before marriage. Also, prenuptial agreements can be broken under certain circumstances.
All things considered, there is no room for error when it comes to protecting your home and assets, but the effort is well worth it when you consider how much stress and headache will be eliminated once you have everything in order.