By Steve Cook, With Permission

The financial regulatory reform bill signed into law this week could result in more accurate home valuations, higher appraisal costs, faster closings, more completed transactions and maybe even higher prices, according to critics of a controversial quasi-governmental regulation that the legislation eliminated.

Enacted a year ago last May, Fannie Mae and Freddie Mac enacted the Home Valuation Code of Conduct (HVCC), meant to reduce mortgage fraud and collusion. However, instead the HVCC generally caused chaos, increased costs and delays in the closing process.

The bill eliminated the HVCC and creates a new Bureau of Consumer Financial Protection that takes over from the HVCC and that is charged with carrying out the first modernization of real estate appraisal regulations in more than 20 years.

“This bill will mean good news for consumers because they should see more reliable home appraisals,” said Appraisal Institute President Leslie Sellers. “It will encourage the use of highly trained and competent real estate appraisers and will provide much-needed resources for oversight and enforcement.”

Critics of the HVCC said the regulation forced lenders to use appraisal management companies that charged less and lacked the manpower to provide timely appraisals, often using appraisers from outside the local marketplace who were unfamiliar with market conditions.

A study by the National Association of Realtors released a year ago found that more than three quarters of Realtors reported the time to get an appraisal increased after the HVCC took effect, ,most said the waiting tine increased more than eight days. More than a third said they lost sales as a result.

Eighty-five percent of appraisers and 55 percent of Realtors reported a decline in appraisal quality.

Many also have charged the HVCC with encouraging appraisers to issue valuations on the conservative side. ” The HVCC has distanced the appraiser from both the buyer, buyer’s agent, and loan originator, while at the same time reducing the amount of money an appraiser can expect to earn per appraisal by as much as 50%, and appraisers today are now more conservative than ever before,” said Phoenix Realtor Steve Belt last year.

In New York City, the Real Deal blog reports many New York brokers and appraisers say HVCC has wreaked havoc on the city’s residential real estate landscape because it’s resulted in a great number of lowball appraisals, often determined by appraisers with limited experience in the New York market.

Low appraisals aren’t necessarily good news for buyers. When appraisals come in under the purchase price, buyers must come up with the cash to make up the difference or lose the home. Today many buyers already are stretching to make down payments and closing costs, which must be paid out of pocket.

Ironically, during its short life, the HVCC did not reduce appraisal fraud. Incidents of mortgage fraud and misrepresentation increased by 7 percent from 2008 to 2009, according to the Mortgage Asset Research Institute.

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A study conducted by Stratamark Research and Clopay Door, a garage door manufacturer, sought to determine just how much an impact the garage door made on the selling price of a home. Over 300 Realtors nationwide were surveyed. They were shown before and after images of different homes with different styles of garage doors; garage doors ranging from inexpensive to high end. They were then asked to assign a selling price to each of the houses, having been told the only difference in the photos were the garage doors.

So how much of an impact did the garage door make on a homes listing price? Depending on how well the door fit with the architecture of the house and its style, listing prices increased from 1 to 4 percent. Assuming a $400,000 home with a garage door in San Diego, that corresponds to an increase of $4,000 to $16,000. That’s a big impact!

These findings do not mean that homeowners need to run out and buy a custom made garage door. But it does mean that if you are looking to sell your home, you should consider making a smart purchase on a garage door that will provide a return on investment. There are many beautiful garage doors that can be purchased and installed for under $2,000… Even $1,500. Many San Diego garage door repair and installation companies will even provide you a quote free of charge, so you can make sure you are getting the best deal.

With the economy and housing market still dragging for the foreseeable future it’s a buyers market. Increasing your homes curb appeal with a new garage door can yield big dividends, attracting buyers and increasing selling price.

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“Cash for Caulkers” is nearly here. Last month the House of Representatives passed H.R. 5019 – also known as the Home Star Energy Retrofit Act of 2010 or “Cash for Caulkers” – to kick-start construction, create jobs and cut back carbon emissions. While the bill still needs to clear the Senate, supporters predict it will pass this summer.

This is great news for homeowners and contractors alike. The bill provisions $6 billion for energy-efficient or “green” retrofits. It is expected to fund renovations for 3 million families, create 168,000 new jobs and save consumers $9.2 billion on energy bills over the next 10 years.

But in order to cash in on upcoming rebates, homeowners and contractors will need to do their homework. There are 13 types of retrofits eligible for funding. Each retrofit has unique eligibility requirements and set rebate amounts. You can read the full text here.

We made it really easy to wade through the legalese. Below is a table that breaks down the 13 retrofits of the bill, along with the requirements and rebate amount for each. In addition to the requirements we listed, each retrofit must comply with Building Performance Institute (BPI) standards or other procedures to be approved by the Secretary of Energy.

Retrofit Requirements Rebate Amount
Air sealing Rebate covers both interior and exterior sealing and includes use of the following products: sealants, caulks, insulating foams, gaskets, weather-stripping, mastics, and other building materials. $1,500

Attic insulation Must meet the attic portions of the Department of Energy (DOE) or Environmental Protection Agency (EPA) thermal bypass checklist. You must add at least R–19 insulation to existing insulation, and it must result in at least R–38 insulation in DOE climate zones 1 through 4 and at least R–49 insulation in DOE climate zones 5 through 8. Finally, it must cover at least 100 percent of an accessible attic or 75 percent of the total conditioned footprint of the house.
$1,000
Duct replacement and sealing Sealing must be installed in accordance with BPI standards or other procedures approved by the Secretary of Energy. For duct replacement, you must replace and seal at least 50 percent of a distribution system of the home. $1,000
Wall insulation Insulation must be installed to full-stud thickness or add at least R–10 of continuous insulation. It must covers at least 75 percent of the total external wall area of the home. $1,500

Crawl space or basement insulation Insulation must cover at least 500 square feet of crawl space or basement wall and add at least R–19 of cavity insulation or R–15 of continuous insulation to existing crawl space insulation; or R–13 of cavity insulation or R–10 of continuous insulation to basement walls. For rim joist insulation, you must fully cover the rim joist with at least R–10 of new continuous or R–13 of cavity insulation.
$250 for rim joist insulation
Window replacement Must replace at least 8 exterior windows, or 75 percent of the exterior windows in a home, whichever is less, with windows that are certified by the National Fenestration Rating Council. Must comply with criteria applicable to windows under section 25(c) of the Internal Revenue Code of 1986 or, in areas above 5,000 feet elevation, have a U-factor of at least 0.35 when replacing windows that are single-glazed or double-glazed with an internal air space of 1/4 inch or less.
$1,000
Door or skylight replacement Must replace at least 1 exterior door or skylight with doors or skylights that comply with the 2010 Energy Star specification for doors or skylights. $125 per door or skylight with a limit of 2 doors and 2 skylights
Heating system replacement See second table below $1,000
Air-source air conditioner or heat pump installation
Must be installed in accordance with ANSI/ACCA Standard 5 QI–2007. The air-source air conditioner must meet or exceed SEER 16 and EER 13; or SEER 18 and EER 15. The air-source heat pump must meet or exceed SEER 15, EER 12.5, and HSPF 8.5.
$1,500
Geothermal heat pump installation
Must be an Energy Star qualified geothermal heat pump that meets Tier 2 efficiency requirements and that is installed in accordance with ANSI/ACCA Standard 5 QI–2007. $1,000
Water heater replacement
See third table below $1,000
Storm windows or doors installation
Must be installed on at least 5 existing doors or existing single-glazed windows. Must comply with any procedures that the Secretary of Energy may set for storm windows or doors and their installation.
$50 for each window or door with a minimum of 5 windows or doors and a maximum of 12
Window film installation
Window film that is installed on at least 8 exterior windows, doors, or skylights, or 75 percent of the total exterior square footage of glass in a home, whichever is more, with window films that are certified by the National Fenestration Rating Council. Must have a solar heat gain coefficient of 0.43 or less with a visible light-to-solar heat gain coefficient of at least 1.1 for installations in 2009 International Energy Conservation Code climate zones 1–3; or a solar heat gain coefficient of 0.43 or less with a visible light light-to-solar heat gain coefficient of at least 1.1 and a U-factor of 0.40 or less as installed in 2009 International Energy Conservation Code climate zones 4–8. $500

We also decided to combine these retrofits into three packages that will help homeowners get the best bang for their buck. But first, let’s review the program details.

Who is Eligible and How to Qualify?
The Home Star bill offers two rebate programs, the “Silver Star” program and “Gold Star” program. Here are details for each:

Silver Star – Unless another amount is specified in the “Rebate Amount” column above, homeowners will receive a $1,000 rebate for each retrofit listed in our table. The maximum amount of rebates paid out will be $3,000 or 50% of the total cost, whichever is lower. For example, if a homeowner spends a total of $4,000 on eligible retrofits, they will get $2,000 or 50% back as a rebate. If they spend $8,000 on eligible retrofits, they would only receive $3,000 in rebates instead of $4,000 (which would be 50% of the cost).
Gold Star – To qualify for the Gold Star program, homeowners must reduce their total home energy consumption by 20%. A $3,000 rebate will be rewarded for this reduction. Homeowners can receive an additional $1,000 for each additional 5% reduction, up to a total rebate of $8,000 or 50% of the total retrofit cost. Rebates may be provided for any of the retrofits listed under the Silver Star program, or for any other energy-saving measure, including: home energy management systems, high-efficiency appliances, highly reflective roofing, awnings, canopies, and similar external fenestration (window) attachments, automatic boiler water temperature controllers, energy-efficient wood products, insulated vinyl siding, and mechanical air circulation and heat exchangers in a passive-solar home.
The Home Star bill also includes rebates for do-it-yourself (DIY) homeowners that are confident in taking on the renovations themselves. DIY’ers can get up to $250 in rebates for products purchased without installation service. This rebate is limited to attic insulation, crawl space insulation and/or air-sealing retrofits.

Seal Your House Envelope and Improve Insulation
Before carrying out any serious retrofit, homeowners need to weatherize and seal their house “envelope.” The envelope includes outer walls, windows, doors, floors and the ceiling. If the house is not properly sealed and insulated, then subsequent HVAC retrofits won’t be as effective.

Common Air Leaks
In some cases, savvy do-it-yourselfers may be able to handle these projects themselves. There are plenty of books and great online resources (e.g. ACEEE.org) that provide instructions. However, you should seriously consider hiring an auditor beforehand. Special diagnostics equipment will show where air is escaping and to what extent. For example, thermal imaging devices detect areas in walls that are poorly insulated and dispersing heat. This information would be unavailable without such devices.

So how much does it cost to seal all the air leaks in a home? Prices will obviously vary based on where you live, how big your property is and the scope of the retrofit. But it will likely cost a few thousand dollars to hire a contractor for this type of renovation. In this example from the New York Times, the author spent $3,760 for insulating and sealing the envelope of his 1,200 square foot home.

How much can homeowners expect to save? The Environmental Protection Agency (EPA) estimates that homeowners can save 20% on heating and cooling costs by sealing leaks and adding insulation. In New York – one of the most expensive places to heat a home with an average annual cost of $1,513 – this would be a yearly savings of $300 just for heating.

Continuing with the example from the New York Times, the Silver Star program would provide $1,880 (50%) in rebates for their retrofit. At an annual savings rate of $300, the renovation would pay for itself in six years (or less if you include cost savings from reduced air conditioning bills).

Repair and Replace Leaky Ducts
Ducts are notoriously leaky and inefficient. They are one of the usual suspects in a crime of high utility bills, or when rooms are difficult to heat and cool. The EPA calculates that 20% of air moving through ductwork is lost due to leaks, holes and poor connections. Other sources put estimates closer to 40%. So while suffering from “leaky ducts” may sound innocuous, it can have a big impact on the efficiency and costs of heating and cooling your home.

Fortunately, duct replacement and sealing is eligible for funding under the Home Star bill. Many homeowners will want to outsource this project to a qualified HVAC contractor. Contractors have equipment to detect leaks that otherwise may not be immediately visible. They also have methods to seal ducts that are inaccessible. For example, by spraying an adhesive or sealant through the duct work.

Replacing and sealing ducts can also be a DIY project, especially when ducts can be easily accessed in an attic or basement. Leaks should be sealed with mastic sealant or metal tape (not duct tape), then insulated to reduce heat loss and to further improve efficiency. The Lawrence Berkeley National Laboratory has an excellent guide on how to seal and insulate ducts.

Upgrade Your Furnace and Water Heater
Heating is the largest energy expense in homes, according to the American Council for an Energy-Efficient Economy (ACEEE). In colder parts of the country, it makes up 30 to 50% of annual energy bills. So improving the heating efficiency of your home will have the biggest impact on lowering your energy costs. Sealing air leaks is a good start, but replacing your heating system could provide real leverage towards cost savings.

If your furnace or boiler was purchased before 1990, then it is time to consider an upgrade. Modern furnaces are much more efficient than those that are older than 20 years. You can use rebates from the Home Star bill to replace your furnace, but you will need to meet their guidelines:

Type of Replacement Requirements Rebate Amount
Replacement with a natural gas or propane furnace The furnace must have an AFUE rating of 92 or greater; or an AFUE rating of 95 or greater. Must be installed in accordance with ANSI/ACCA Standard 5 QI-2007.
$750

Replacement with a natural gas or propane boiler
Boiler must have an AFUE rating of 90 or greater. Must be installed in accordance with ANSI/ACCA Standard 5 QI-2007. $1,000
Replacement with an oil furnace
Furnace must have an AFUE rating of 86 or greater and use an electrically commutated blower motor. Must be installed in accordance with ANSI/ACCA Standard 5 QI-2007.
$1,000
Replacement with an oil boiler
Boiler must have an AFUE rating of 86 or greater and temperature reset or thermal purge controls. Must be installed in accordance with ANSI/ACCA Standard 5 QI-2007.

$1,000
Replacement with a wood or pellet furnace, boiler, or stove
The new system must meet at least 75 percent of the heating demands of the home; and in the case of a wood stove, but not a pellet stove, replace an existing wood stove, but not a pellet stove, and is certified by the Administrator of the EPA. The home must have a distribution system (such as ducts, vents, blowers, or affixed fans) that allows heat to reach all or most parts of the home. In the case where an old wood stove is being replaced, a voucher must be provided by the installer or other responsible party certifying that the old wood stove has been removed and rendered inoperable or recycled at an appropriate recycling facility. An accredited independent laboratory recognized by the Administrator of the EPA must certify that the new system has thermal efficiency (lower heating value) of at least 75 percent for wood and pellet stoves, and at least 80 percent for furnaces and boilers; and has particulate emissions of less than 3.0 grams per hour for stoves, and less than 0.32 lbs/mmBTU for outdoor furnaces and boilers.
$500 for a wood or pellet stove that has a heating capacity of at least 28,000 Btu per hour. $1,000 if it provides 75% of the heating demands of the home.

Water heaters are typically the second largest energy users after home heating and cooling systems. Replacing convention oil-fired water heaters with high-efficiency gas or electric heaters can save homeowners thousands of dollars over a 10 to 15 year period. The Home Star bill includes a variety of replacement options eligible for rebates.

Replacement options Rebate Amount
Replace with a natural gas or propane condensing storage water heater with an energy factor of 0.80 or more, or a natural gas or propane storage or tankless water heater with thermal efficiency of 90 percent or more.
$1,000
Replace with a tankless natural gas or propane water heater with an energy factor of at least 0.82.
$750

Replace with a natural gas or propane storage water heater with an energy factor of at least 0.67.
$400

Replace with an indirect water heater with an insulated storage tank that has a storage capacity of at least 30 gallons and is insulated to at least R–16; and is installed in conjunction with a qualifying boiler described in the previous table.
$1,000
Replace with an electric water heater with an energy factor of 2.0 or more. $1,000
Replace with an electric tankless water heater with an energy factor or thermal efficiency, as applicable, of .96 or more or a thermal efficiency of 96 percent or more, that operates on not greater than 25 kilowatts.
$250 each for a maximum of 4 electric tankless water heaters

Replace with a solar hot water system that is certified by the Solar Rating and Certification Corporation or that meets technical standards established by the State of Hawaii.
$1,000
Replace with a water heater installed in conjunction with a qualifying geothermal heat pump – as described in our first table – that provides domestic water heating through the use of a desuperheater or year-round demand water heating capability. $500 for a desuperheater

Ground Source Heat Pump
An alternative to furnaces and boilers are ground source heat pumps (GSHPs). Also known as geothermal heat pumps, GSHPs are one of the most efficient systems for heating and cooling buildings. According to the International Ground Source Heat Pump Association, GSHPs are 50 to 70% more efficient than other heating systems, and 20 to 40% more efficient than traditional air conditioners. They can also be used as an alternative water-heating system and save up to 50% on water-heating bills.

Ground source heat pumps are more economical than using oil or air-source heat pumps, but there is still a lot of debate over GSHPs versus natural gas. Homeowners will need carry out their own due diligence beforehand. For starters, here is an academic report that compares the two options.

Year over year, a ground source heat pump is more cost effective than natural gas. It’s the initial cost that really drives down the return on investment (ROI) and makes natural gas a more attractive option. However, there are several rebates and tax credits available that help subsidize the upfront cost.

Additional Financing Resources
With other legislation in the queue, it might take weeks or months to hear the Senate’s final decision on the Home Star bill. In the meantime, homeowners can receive funding from other sources to pay for green renovations. The federal government, state governments, local municipalities and even utility companies offer several options.

For example, homeowners can still receive a federal tax credit for 30% of the cost of energy-efficient products (up to a total credit of $1,500). This includes the purchase of central air conditioning systems (both the product and installation), electric heat pumps, furnaces and boilers, and whole-house ventilation fans. Visit the US Department of Energy Energy Savers website for more information.

Another great resource is the Database of State Incentives for Renewables and Efficiency or “DSIRE” website. This allows you to view rebates, loan and grant programs, financing options and tax credits offered in your region.

Finally, new home buyers should consider an energy-efficient mortgage or energy improvement mortgage. These mortgages allow consumers to count savings from energy bills as additional income, ultimately giving them more buying power.

“This article was originally featured on Software Advice at: Cash for Caulkers – The Definitive Guide to the Home Star Energy Retrofit Act of 2010″

This article was originally featured on Software Advice at: Cash for Caulkers – The Definitive Guide to the Home Star Energy Retrofit Act of 2010

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A Loan That Can Last
Five Decades

Think a 50-year mortgage is highly unlikely? Think again. Banks in California and other parts of the country where home prices are relatively high are offering 50-year loans, developed to meet the needs of cash-strapped homebuyers.

Even though housing prices have declined recently, many Californians still are not able to afford to buy a home. The 50-year mortgage offers an additional option for these would-be purchasers.

While the monthly payments on this mortgage are low compared to shorter-term mortgages, there are two other major issues to consider.

First, a 50-year mortgage builds equity very slowly. If you were anticipating using your home as a revenue stream to finance your children’s education or home improvements, the money probably won’t be available when you need it.

The second factor to consider is that the 50-year loan is a hybrid, which combines fixed and adjustable rates. This provides lower monthly payments, at least during the initial years of the mortgage when the rate is fixed. However, at the end of that honeymoon period, it becomes an adjustable rate mortgage, and your monthly payments could rise, perhaps significantly over the life of the loan. What looks like a good deal now, could become troublesome as time goes on.
How Does a 50-Year Mortgage Compare to Other Loans for Cash-Strapped Buyers?

Fifty-year mortgages are similar to interest-only loans. The difference is you reduce some of the mortgage balance each month. Therefore, they aren’t considered as risky as interest-only mortgages, which sometimes allows borrowers to pay even less than the interest each month. In these cases, borrowers might not build any equity at all. They could end up owing more than a home is worth, which is sometimes called negative amortization or “going negative.”

Mortgage experts generally advise consumers that a 50-year mortgage works best for those who plan to stay in their homes for about five years, while the loan’s interest rate remains fixed. After that, borrowers are playing a game with their payments because interest rates are uncertain.

However, if you really need a longer term than the typical 30-year mortgages being offered, you might consider a 40-year mortgage. These fixed-rate mortgages were developed by several California savings and loan associations in the late 1980s, and have become popular with consumers across the country. Lenders are increasingly offering this mortgage product because they are now able to sell certain 40-year fixed-rate loans to Fannie Mae, the nation’s largest mortgage finance company.

The 40-year fixed-rate mortgage is a better alternative than interest-only loans because borrowers eventually build equity in their homes, although it is a gradual process. Another advantage is that borrowers are not subject to rising interest rates.

Before you decide on an extended mortgage, either 40 or 50 years, talk over your options with your real estate agent or trusted financial adviser. Homeownership may be the American Dream, but you want to make sure you choose the mortgage that is right for you.

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The House of Representatives has passed H.R. 5019, the Home Star Energy Retrofit Act of 2010, legislation that will incentivize home energy retrofits and increase employment in the energy related construction segment of the economy. The legislation is moving rapidly in the Senate and is expected to be enacted in mid-summer in time for the winter heating season.

Home Star will restart the assembly lines at factories that manufacture energy efficiency technologies and will put construction workers back on the job installing these improvements in the homes of millions of American families.

What is Home Star?
________________________________________
Home Star is designed to spur home energy retrofits by providing rebates to homeowners who install energy-saving products, such as insulation, windows, doors, and heating systems. Home Star includes two tracks to provide long and short-term benefits.

The Silver Star program will provide up-front rebates for the installation of specific energy-saving technologies, including insulation, duct sealing, windows and doors, air sealing, and water heaters. Homeowners will be able to receive up to $3,000 in rebates under Silver Star.

The Gold Star program rewards homeowners who conduct a comprehensive energy audit and implement a full complement of measures to reduce energy use throughout the home. Consumers will receive $3,000, or half the cost, for measures that reduce energy use by 20 percent, and can receive up to $8,000 when additional energy savings are achieved.
Home Star also creates an innovative financing program to be sure that energy efficiency investments continue after the program’s conclusion.

Why Home Star?
________________________________________
Home Star is expected to allow 3 million families to retrofit their homes to be more energy efficient. Consumers are predicted to save $9.2 billion on their energy bills over the next 10 years as a result of Home Star’s energy efficiency investments. And, Home Star will create 168,000 new jobs here in the United States. Construction jobs cannot be outsourced and more than 90 percent of energy efficiency technologies are manufactured here in America. In the future homes may be “tagged” as a “HOME STAR Approved Residence” thus making it more appealing at sale time.

What’s Next?
________________________________________
Nothing above will come about unless the Senate moves the legislation to the President’s Desk. Swift movement however is being seen

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These credits apply to the following if purchased between Jan. 1, 2009, and Dec. 31, 2010: Biomass stoves; insulation; heating, ventilation, and air conditioning upgrades; windows and doors; roofs; and non-solar water heaters. The credit allows homeowners every two years to claim 30 percent of the cost of the system, for a maximum credit of $1,500. This credit expires Dec. 31, 2010. Please note that some of these tax credits do not apply to installation costs, and not all ENERGY STAR products qualify for the tax credits. Please consult http://www.energystar.gov/index.cfm?c=tax_credits.tx_index for specifics.

If you’ve decided to purchase small wind turbines, a geothermal heat pump, or a solar energy system for your principal residence or a new home construction, you have until Dec. 31, 2016, to make the purchase. You also can receive a tax credit of 30 percent of the cost (no upper limit).

Check out the following resources:

• Database of State and Federal Incentives for Renewables & Efficiency (http://www.dsireusa.org/): Provides a comprehensive list of all local, state, and federal rebates, tax credits, and property tax reductions for green enhancements to homes and new construction.

• Better Than a Credit: If you participated in the Cash for Clunkers program and purchased a more fuel-efficient car, remember, your $3,500 or $4,500 rebate is not considered taxable income. If you actually purchased a hybrid, you may qualify for an energy tax credit (http://www.fueleconomy.gov/Feg/tax_hybrid.shtml). Cars purchased after Dec. 31, 2010, are no longer eligible for the energy tax credit.

• ENERGY STAR Rebates and Partners: Type in your ZIP Code and find tax exemptions, rebates, or discounts on ENERGY STAR-rated products in your local area–everything from DVD players to water heaters at http://www.energystar.gov/index.cfm?fuseaction=rebate.rebate locator.

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1. Determine how much

Insure your home for its replacement value, not what you paid for it. You want your insurance coverage to reflect what it costs to bring materials to the site and rebuild the home if it’s damaged or destroyed, says Sean Meehan, a vice president at Travelers Insurance. The home will likely cost more to rebuild because of inflation. If you have home on a large piece of property, be aware that the insurance company isn’t insuring the land, so the amount of your policy may be significantly less than what you paid for the home.

2. Know claims history

Ask the seller to provide a home’s insurance claim history report. Two companies keep databases used by the insurance industry. ChoicePoint has the largest database called CLUE (for Comprehensive Loss Underwriting Exchange), and Insurance Services Office Inc. maintains the other called the A-Plus (Automated Property Loss Underwriting System).

These reports outline previous fires, flooding and other claims that may have been made involving the home. They can tip you off to potential problems you might not be able to see, said Meehan. Certain problems such as previous water damage could make insurance more expensive on the home or in some cases, make it difficult to get insurance.

The reports must be purchased by the current homeowner. The CLUE report is $19.50 and can be purchased at: http://tinyurl.com/26m57uo. The A-Plus report is $9 by mail and $13 by fax and available at: http://tinyurl.com/293slq7

3. Understand what’s covered

Homeowners insurance typically covers the structure of your home, clothing and personal items. It also provides liability protection against lawsuits for injury or property damage to others on your property.

Also covered are living expenses in the event your home is damaged and you’re temporarily displaced. These coverages often have various limits in standard policies, but can be adjusted by paying more. You’ll need to think about levels appropriate for you given your location.

4. Consider special circumstances

Most policies protect you against fire, lightning strikes, wind or hail damage. Losses from vandalism and theft are also typically covered to varying degrees. Other coverages may be included, too. You should check the list of the perils covered by your policy and make sure you understand them.

Flooding and earthquake damage typically are not covered but you can buy coverage separately. You should consider if you’re in an area prone to such disaster and weigh the cost with the risk. Also not covered is damage caused by poor maintenance, mold or pest infestation such as termites.

5. Recognize that location matters

When looking at homes, keep in mind location can cut 5 to 15 percent off your premium costs. For example, a home near a fire hydrant may cost less to insure.

A home in a community with a professional fire department rather than volunteers also costs less.

6. Review other factors that cut the cost

–Raising your deductible from $500 to $1,000 could save you as much as 25 percent on your premium. Be sure, however, that you can come up with the deductible in cash if needed.

–Insuring your home and car with the same company can save up to 15 percent, said the Insurance Information Institute, a nonprofit industry trade group.

–Installing smoke detectors, burglar alarms and deadbolt locks can save you 5 percent. It can be expensive but installing alarms that alert police and fire of a break-in or fire can cut as much as 20 percent from the premium cost.

– Homes with electrical and plumbing systems less than 10 years old save on insurance costs.

Remember that San Diego County has many homes in rural areas that are subject to high fire danger and subsequent fires. Plan ahead early to make sure that you have complete and adequate coverage. We have had 1 home burn to the ground while we had it listed over the Xmas Holiday (due to lights left on the tree) and 2 of our clients lose homes during the recent wild fires.

Call us for reference to a great insurance company and representive.

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What Is Neighborhood Watch?
How to Start and Maintain a Neighborhood Watch Program

What Is Neighborhood Watch?

Neighborhood Watch is a crime prevention program that enlists the active participation of residents in cooperation with law enforcement to reduce crime, solve problems, and improve the quality of life in your area. In it you will get to know and work with your neighbors, and learn how to:

Recognize and report crimes and suspicious activities
Protect yourself, your family, and your property,
Protect your neighbor’s family and property, and
Identify crime and disorder problems in your area and work with SDPD personnel to solve them.
How to Start and Maintain a Neighborhood Watch Program

The following steps explain how to get a Neighborhood Watch program started and maintained in your area:

Talk to your neighbors. See if there’s interest in forming a Neighborhood Watch group in your area. If there is contact the SDPD for help.

Talk to the San Diego Police Department (SDPD). Contact the SDPD area station in your neighborhood and ask to talk to the Community Relations Officer (CRO) or Police Service Officer (PSO) who is responsible for Neighborhood Watch. SDPD division addresses and phone numbers are listed under IN YOUR NEIGHBORHOOD on this website. The CRO or PSO will suggest how you should proceed and discuss the crime and disorder problems that you will have to deal with.

Talk to your neighbors again. Tell them about the benefits of a program and the problems to be addressed. Ask about convenient times and places for the first meeting. Be sure to mention that Neighborhood Watch does not require frequent meetings or personal risks, and that a CRO or PSO will be invited to the first meeting to answer questions.

Planning the first meeting. Select a date, time, and place for the first meeting. Invite the CRO or PSO. Meetings are usually held at a home, school, church, or community center. They can also be held at a SDPD area station or storefront office. Send out meeting announcements a few weeks ahead of the date. You can distribute fliers, make phone calls, or send emails. Send out reminders a few days before the meeting.

Prepare an agenda and sign-in sheet for the first meeting. Ask the CRO or PSO to talk about the crime and disorder problems in your area, how to get crime and crime prevention information on the SDPD website at www.sandiego.gov/police, and how the partnership with the SDPD will work. The meeting should last about one hour. Consider providing refreshments, e.g., cookies and coffee. The agenda should allow time for questions, answers, and other topics.

First meeting. The first meeting is critical in forming of a group. All attendees should introduce themselves and sign a sheet with their names, addresses, phone numbers, and email addresses so they can be contacted about future meetings and activities. They should be assured that their personal information will not be given to anyone without their permission. The CRO or PSO will talk about the topics listed above and answer questions. Then the group should define the area to be covered and select a Block Captain or Co-Captains.

The area covered by a group in a neighborhood with single-family homes can range from several homes on one side of a street to several blocks with homes on both sides of the streets. The area can also include neighborhood parks, canyons, etc. The area covered in a neighborhood with apartment complexes can range from a single complex to several complexes.

The initial duties of the Block Captain or Co-Captains are listed below:

Compile a membership list
Develop an area map with home addresses
Collect money for Neighborhood Watch signs, and post and maintain the signs
Neighborhood Watch signs and sign hardware approved by the SDPD can be obtained from CSI Signs at (858) 277-3858. They are located at 7450 Ronson Rd., San Diego 92111. However, Neighborhood Watch groups are free to buy signs from any company and do not need SDPD authorization to do so. The signs can be installed with permission on private property or utility poles, with perforated metal tape on City street light poles, or at least 7 feet above the grade level on City street signs. They cannot be installed on any traffic control sign or City tree. After installation the exposed bolt threads should be crimped to prevent theft of the sign.

Continuing duties of the Block Captain or Co-Captains. After the group is formed their duties will depend on their organizational skills and interests, and the nature and objectives of the group. The following are some possibilities:

Recruit new members
Maintain a membership list and area map with home addresses
Keep members informed about area crime and disorder
Try to see group members frequently
Establish and maintain a phone tree with home and work numbers that group members can use to contact residents in an emergency
Develop an area activity profile to help members recognize unusual or suspicious activities in the area. This could include vehicle descriptions, work hours, school hours for children, and scheduled services, e.g., gardening
Act as a spokesperson for the group
Serve as liaison with the SDPD
Plan, announce, and facilitate meetings
Organize crime prevention activities, e.g., watching homes when residents are away
Subsequent Meetings and Activities. Meetings of the whole group should be held at least once a year. They can be held more often if there is information to be distributed and discussed, a problem to address, or a special event to be planned and held. The key to keeping a Neighborhood Watch group active is maintaining interest over time and communicating with members.

Meetings can be scheduled to discuss specific crime prevention or other topics. The SDPD can also provide officers to talk on domestic violence, workplace violence, gangs, child and adult abuse, alcohol and drug abuse, identity theft, landlord/tenant relations, bike safety, homeland security, etc. Check with your CRO or PSO first and then call the Speaker’s Bureau at (619) 446-1018 to request a talk.

Meetings can also be scheduled to address a serious incident in the area, or two or more less-serious incidents of the same type. Problem solving usually proceeds in the following steps:

Definition. What is the problem? Some examples are car break-ins and thefts, home burglaries, speeding, unlicensed solicitors, graffiti, panhandling, and trash dumping.

Analysis. What are the common elements of the problem? They could be time of day, location, kinds of offenders and victims, kinds of targets, access to targets, methods of defeating security measures, etc.

Response. How can the problem be addressed? What can be done to prevent recurrence or reduce the damage if it does recur? What agencies or organizations are responsible and should help in solving the problem? What are the best things to do for short- and long-term results?

Assessment. Did the problem go away? Was the damage reduced? If not, what else should be done?

Special events are another good way to keep the group active. The following are some possibilities:

Neighborhood walks to identify potential crime and disorder problems
Socials, e.g., parties or potluck dinners
Cleaning streets, vacant lots, canyons, parks, etc.
Graffiti paint outsFund raising to buy signs, e.g., by collecting recyclables
Bicycle safety and licensing rodeoPainting address numbers on curbs and alley fences or garages

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