Deductible

Apache is functioning normally

Apache is functioning normally

Your pet is part of the family, and you’d do anything to keep them healthy and happy. But what happens if they need surgery? Will your pet insurance cover the cost? The answer isn’t always straightforward. Here’s when pet insurance typically covers surgery and when it doesn’t.

Does pet insurance cover surgery?

Pet insurance can help pay for surgery if your pet gets hurt or sick. This could include surgeries for broken bones, cancer, objects stuck in their stomach, emergencies, ligament problems or some dental issues. If you buy a wellness plan, you may also have coverage for spaying or neutering.

But pet insurance almost never covers surgeries for preexisting conditions or elective procedures like tail docking or dew claw removal.

Surgical procedures that pet insurance typically covers

Pet insurance policies typically pay for surgical procedures needed to treat an accident or illness. Depending on your policy, this may include:

  • Cancer treatments like tumor removal.

  • Removing objects like rocks, toys or sticks that pets accidentally swallow.

  • Emergency surgeries for life-threatening situations like bloat or internal bleeding.

  • Dental surgeries like tooth extractions or root canals caused by an illness or accident.

  • Surgeries for ruptured knee ligaments or hip dysplasia.

  • Procedures to treat hereditary and congenital conditions such as luxating patellas.

🤓Nerdy Tip

Many pet insurance companies won’t cover certain orthopedic issues for the first several months of your policy. Also, if your pet had a bilateral issue like hip dysplasia on one side of their body before you bought their policy, it may be considered a preexisting condition if it happens on the other side of their body. Pet insurance generally won’t pay to treat preexisting conditions.

Surgical procedures that pet insurance typically won’t cover

Pet insurance plans usually have a wide range of exclusions and limitations. Accident and illness plans often won’t cover:

  • Surgeries to treat conditions your pet had before coverage began.

  • Cosmetic or elective procedures like ear cropping, tail docking, gastropexy (a surgery to prevent bloat), microchipping, declawing or dew claw removal.

  • Breeding-related procedures like cesarean sections, spaying or neutering.

Some pet insurance companies offer preventive care plans that will cover some of the procedures above (such as spaying, neutering, microchipping or gastropexy).

🤓Nerdy Tip

Many pet insurers will cover curable preexisting conditions like vomiting and gastrointestinal issues if your pet has been treatment- and symptom-free for a certain period of time. Check with your insurer to see if any of your pet’s previous conditions are considered curable.

Common pet surgical procedures

While pet insurance doesn’t cover every type of surgery, it can help you save money on many procedures caused by accidents or illnesses. Here’s a look at common pet surgical procedures and whether insurance generally covers them.

Pet surgery

Generally covered by insurance?

ACL or CCL repair

Amputation

Cancer surgery

Fractures and dislocation repair

Hip dysplasia

Intestinal obstruction due to foreign body

Mass or tumor removal

Skin lacerations

Spay or neuter

No, except with some wellness plans.

How does surgery coverage work?

Surgery coverage is usually a standard part of accident and illness coverage. So if your pet needs surgery for a broken leg, tumor or cataracts — and it’s not related to a preexisting condition — insurance will likely cover it.

However, having pet insurance doesn’t guarantee that all veterinary bills will be paid. These policies typically have a deductible, a reimbursement rate and a maximum coverage limit per year or per incident. Depending on your insurer, you may also be responsible for paying exam fees related to the surgery.

  • The deductible is the amount you must pay before your pet insurer will begin covering your vet bills. Most insurers charge an annual deductible, but some assess deductibles per condition.

  • The reimbursement rate is the percentage of your vet bills your pet insurer will cover once you’ve reached your deductible. The percentage you cover is known as a copayment.

  • The maximum coverage limit is the total amount your pet insurer will pay per year or per incident. 

Say you have a pet insurance plan with a $500 deductible, 80% reimbursement rate and $10,000 annual limit. Your pet needs surgery to remove a tumor, which will cost $3,000.

First, you’ll need to pay the $500 deductible out of pocket. After that, your insurance will cover 80% of the remaining $2,500, which comes out to $2,000. You’ll be responsible for the remaining 20%, which comes out to $500.

So in total, you’ll pay $1,000 for the surgery ($500 deductible + $500 coinsurance), and your insurance will cover $2,000. If your pet needs follow-up care later in the year, you’ll have $8,000 left of your annual limit to cover any additional medical expenses.

How to file a claim for surgery costs

There are two ways to file a pet surgery claim.

The first way is with direct billing. With this option, you won’t have to pay your insurer’s part of the bill out of pocket. Instead, your pet insurance company will pay your vet directly.

Direct billing isn’t that common. Pets Best, Healthy Paws and Trupanion are some of the only pet insurance companies that will pay your vet directly. Your vet must also be willing to accept payments directly from providers.

The more traditional way to file a pet insurance claim for surgery is to pay the full amount upfront and then submit the claim to your insurance company for reimbursement. To do this, you’ll generally need to fill out your insurance company’s claim form and provide a copy of the itemized receipt or invoice from your vet.

Your insurance company will review your claim to make sure it meets the terms of your policy. If everything checks out, your insurer will reimburse you the covered amount, minus any deductible or copay.

Can you buy pet insurance before surgery?

Yes, you can buy pet insurance before your pet needs surgery, but that doesn’t mean your policy will pay for the procedure.

Pet insurance doesn’t cover preexisting conditions, so any medical condition your pet was diagnosed with before you bought the policy won’t be covered.

Pet insurance plans also have waiting periods, the length of time between when you buy your plan and when insurance will start covering eligible treatments. Common waiting periods are 14 days for illness coverage and 48 hours for accident coverage.

How top pet insurance companies cover surgery

To give you an idea of how different pet insurance companies cover surgery, we looked at three insurers from our list of the best pet insurance companies.

Embrace surgery coverage

Embrace‘s standard policy covers exams, treatment, hospitalization and surgery for injuries and illnesses, including cancer. But you’ll need to add a wellness plan to get coverage for spaying and neutering. Embrace won’t cover surgeries arising from preexisting conditions, fighting, racing or mistreatment.

Figo surgery coverage

Figo pet insurance covers surgeries, prescription medications and diagnostic testing for accidents and illnesses. But preexisting conditions aren’t covered unless they’ve been cured and the pet is symptom-free for at least 12 months. Figo has wellness plans for things like vaccines, routine exams, dental cleaning, and spay or neuter surgery.

Pets Best surgery coverage

Pets Best’s surgery coverage is included in its accident and illness plan. The policy can also cover pre- and post-surgical care like diagnostic tests, prescription medication and physical rehabilitation. Add a wellness plan if you want coverage for spay or neuter surgery.

Source: nerdwallet.com

Apache is functioning normally

Apache is functioning normally

At the start of every new year, people set goals. Many of the most common resolutions set during the new year are financial in nature. For instance, some people resolve to pay off their debt before the year ends. Others want to decrease their spending and save money. 

If you’re one of those people who want to save money, decreasing your car insurance premium is one way to get closer to your financial goals. Here are seven hacks to help you save on car insurance this year.

1. Review Your Car Insurance Every Year

One of the simplest ways to reduce your insurance premiums is to shop around once a year. It may seem unnecessary, but comparing rates from a variety of insurance companies can be beneficial. Firstly, it gives you a sense of how much your car costs to insure on average. Secondly, doing your research lets you determine if you have the best car insurance for your budget. 

Remember to compare quotes from at least three providers before making a decision. But what if your current insurer is the cheapest option?

2. Get Rid of Coverage You Don’t Need 

Another way to decrease your car insurance costs is by dropping unnecessary coverage. In most states, drivers are legally required to have liability coverage and personal injury protection, or no-fault coverage. In states like New York and North Carolina, drivers must also have insurance that protects them against collisions with uninsured or underinsured motorists. Beyond that, rates vary by state and personal preference.

Types of Car Insurance to Consider

  • Liability Coverage: This coverage protects you against the costs of covering the medical bills of other drivers after an accident. Liability insurance may also reimburse you for damage to your car. If you don’t have a significant savings cushion or other assets to cover the cost of large claims, liability insurance will protect you financially in the event of an accident.
  • Collision Coverage: If you’re financing your vehicle, chances are the bank will require this coverage as well. Collision insurance will pay for damage to your car resulting from a collision with another vehicle. It does not cover car damage from potholes, broken windows, fire, or theft.
  • Comprehensive Coverage: This is like collision insurance, but it covers damage from non-collision incidents. The most common kinds of incidents are floods, vandalism, hitting an animal, or striking a non-moving object.
  • No-Fault Coverage: This type of insurance protects you against the medical bills of other drivers after an accident. Unlike liability insurance, your own insurer pays your claim; it then submits a claim to the other driver’s insurer. If you have this coverage, maintaining a high deductible can be beneficial because it reduces your premium.

As you review your vehicle insurance, make a list of your state-mandated coverage, bank-mandated coverage, and ones that make sense for your location. For instance, if you live in a town that is known for seasonal hurricanes, floods, or fires, dropping comprehensive insurance might not be the best idea. Consider working with an agent who is familiar with your area.

If your car is older, consider dropping collision and comprehensive insurance. Then, set aside an emergency fund that amounts to your car’s market value.

3. Ask Your Insurance Company about New Discounts

Your insurer may provide discounts for a variety of reasons. For instance, some insurers offer a “good student” discount for teens with good grades. Others may give discounts to drivers who are members of the military or attend certain types of college. If you are enrolled in an accredited driver’s safety course, contact your insurer about getting a discount for completing the class.

Save on Car Insurance by Paying Your Premium Annually

Payment methods can also affect your car insurance premiums. Most insurers offer a discount if you pay a year’s worth of premiums upfront. If you can’t afford an entire year’s worth of premiums at once, pay at least the minimum amount necessary to qualify for this discount.

4. Downsize Your Car

The most effective way to save money on car insurance is by driving a car that costs less to insure. The type of car you choose will depend on your budget and preference, but there are a few things to consider.

For instance, the cost of repairs and parts for some vehicles can be high. Secondly, there are insurance companies that offer discounts to drivers with hybrid cars or vehicles that use alternative fuel.

When you’re looking for a new vehicle, find a safe one with the lowest possible insurance rates. Talk with your insurer, and get online quotes from other car insurance providers to compare costs.

Related Read: What Credit Score Do I Need to Buy a Car?

5. Drive Safely to Save on Car Insurance

Driving safely is often underrated. If you’re a cautious driver, you might qualify for a reduced premium. When calculating your rate, insurance companies consider the following factors:

  • Age
  • Gender
  • The type of car
  • Your driving history

Improving your driving habits could save you money each month. Plus, it’s safer for everyone on the road. If your current vehicle doesn’t have an accident history, you might also want to consider increasing your deductible, which can save you money.

6. Increase Your Car Insurance Deductible

If you drive safely, you could lower your monthly premium by raising your deductible. Increasing your deductible from $200 to $500, for example, will decrease your monthly premium. And since you know how much your deductible is ahead of time, you can set aside the amount in an emergency fund.

7. Consider Usage-Based Programs

Another way to save on car insurance is by participating in usage-based programs. With this type of coverage, you put a device in your car that records your mileage and driving habits. This data is then sent to your insurer, who can use it to determine how much you should be paying for coverage. Among the common usage-based options are:

  • Pay-as-you-drive: This program charges you for the miles you drive. Your insurer will typically take mileage into account when calculating your premium.
  • Pay-how-you-drive: With this program, you pay for your insurance based on safe driving behavior. In some cases, your insurer might offer discounts if you’re an ideal driver.

Takeaway: Saving Money on Car Insurance

There are plenty of tactics to help decrease your monthly insurance costs if you take the time to assess your habits and your vehicle insurance needs. Once you know what must stay and what needs to go, contact your insurance company to make the necessary adjustments.

Source: credit.com

Apache is functioning normally

Apache is functioning normally

Buying insurance coverage helps keep you protected from the full financial fallout of an accident or injury. But even with insurance, you’ll probably still be responsible for some costs when you file a claim.

An insurance deductible is the amount of money the insured party is responsible for at the time of loss or damage: it’s the cost you have to pay before the insurance company pays out its share.

Here’s what you need to know about the different types of insurance deductibles and other insurance-related costs you may face.

What Is a Deductible?

When you buy insurance, you’ll encounter several different costs depending on the type of coverage you’re purchasing. These may include monthly premiums, copays, out-of-pocket maximums, and possibly others.

The vast majority of insurance policies, whether they’re auto, health, or homeowners, carry a deductible. So what is a deductible, and how does it work?

The deductible is a sum of money you, as the insured party, are expected to pay toward a loss. Another way to think about it: It’s the amount the insurance company deducts from the total claim and asks you to pay.

For instance, say you get into a car accident in which you sustain $8,000 worth of damage and you have a $1,000 deductible. When you file your claim, you’ll pay $1,000 toward repairs and the insurance company will cover the remaining $7,000 (or up to whatever limits are laid out in your insurance contract).

Your deductible can be a fixed dollar amount or a percentage, depending on your individual plan and the kind of insurance policy you’re talking about. Homeowners insurance, for instance, is commonly offered with deductibles calculated as a percentage of the property’s total insured value.

It’s important to understand that your deductible is separate from your premium, which is the amount of money you pay each month in order to keep your insurance policy active.

Also remember that you may also be responsible for other insurance-related expenses, like copays or coinsurance, so always read the fine print carefully.
💡 Quick Tip: If you have a mortgage, a homeowners policy may be required by your lender. Surprisingly, unlike auto insurance, there is no legal mandate to carry insurance on your home.

Copay vs Deductible

With certain types of insurance — primarily health insurance products — you may be required to pay a copay each time you go to the doctor’s office or receive a covered service. This copay is separate from your deductible, and, generally, your copay doesn’t count toward your deductible amount.

As with other types of insurance, the health insurance deductible must be paid by the insured person before the insurance company begins its coverage. However, individual health plans may cover certain services, such as regular check-ups, even before the deductible is paid in full.

Here’s an example: Say you twist your ankle and visit your doctor, who orders an MRI. If your copay is $25, you’ll pay $25 at the office before or after you see your physician. If the total cost of the doctor’s care and imaging services is $1,000 and you have a $500 deductible, you may still be responsible for the full $500. Any copays you’ve paid along the way won’t be subtracted from your deductible.

Some plans may carry a coinsurance cost rather than a copay. The two are similar, but not identical. Coinsurance is an amount you pay when you receive a medical service, separate from your deductible. Unlike copays, which are charged at a fixed dollar amount, coinsurance is calculated as a percentage of the total cost of the service. Your plan might even include both copays and coinsurance.

All insurance policies are different, and your individual costs and experience may vary depending on the services you’ve received and the specific coverage you have. You can consult your insurance paperwork or contact your insurer for full details on what’s covered in your plan.

Out-of-Pocket Maximums

Health insurance policies in particular are subject to federally mandated out-of-pocket maximums. This is the highest total dollar amount you’ll have to pay toward covered healthcare over the course of a single year, including both deductibles and copays.

The out-of-pocket maximum does not include the amount you pay toward your monthly premium, however. Nor does it include out-of-network services or services that your plan expressly does not cover.

For 2023, the out-of-pocket maximum for a Marketplace plan can’t be more than $9,100 for an individual or $18,200 for a family. In 2024, that limit rises to $9,450 for an individual or $18,900 for a family. (The maximum is allowed to be lower, however, so consult your plan paperwork for full details.)

Do You Want a High or Low Deductible?

When shopping for insurance coverage, you’ll likely have a range of options to consider, including varying deductible costs. And when it comes to figuring out whether you want a high or low deductible, the answer is: It depends.

Generally speaking, the lower your deductible, the higher your premium will be and vice versa. This makes sense when you think about it. If you have a low deductible, the insurer will have to pay out a higher amount when you incur a loss. So in exchange for the promise of covering most of the costs when a claim is filed, the company expects you to pay more up front in the form of a higher premium.

While choosing a higher deductible can help you save money over time since your monthly premiums will be lower, it also means you’re assuming more risk. If something happens and costs are incurred, you’ll be responsible for a larger share of those expenses.

On the other hand, choosing a lower deductible means you’ll likely pay a higher premium each month. But you’ll also have less to worry about if you do need to file a claim, since the insurance company will cover more of the costs (assuming that all the damages and expenses are covered under your policy).

As with so many other financial matters, what’s right for you comes down to a number of factors, including your risk tolerance, budget, and even your lifestyle. If you participate in extreme sports, for instance, and are at risk for catastrophic injuries, you might want to pick a health insurance policy with a lower deductible and higher premiums.

Recommended: How Much Is Homeowners Insurance?

Zero-Deductible Insurance: Is It a Thing?

You may see ads for zero-deductible insurance policies and wonder if they’re too good to be true. While zero-deductible insurance policies do exist, they usually carry higher premiums than policies that do carry deductibles, and you may also be responsible for a one-time no-deductible fee or waiver.

Furthermore, some insurance coverages are required by state law to carry a minimum deductible, particularly when it comes to auto insurance.

Before you sign up for any kind of insurance coverage, be sure to read the contract thoroughly to ensure you understand what costs you’re responsible for.

Recommended: What Does Auto Insurance Cover?

Types of Deductibles

There are many different types of insurance policies with deductibles on the market. Common ones include:

•   Health insurance deductibles

•   Auto insurance deductibles

•   Homeowners insurance deductibles

•   Renters insurance deductibles

•   Life insurance deductibles

The deductible amount varies by type of insurance, company, and plan, among other factors.
💡 Quick Tip: Online insurance tools allow you to personalize your coverage for homeowners, renters, auto, and life insurance — all with zero paperwork.

The Takeaway

Purchasing insurance is an important — and sometimes legally mandated — step toward protecting yourself from the high costs of personal accidents, property damages, and medical bills. But most policies involve set costs, including deductibles. This is the portion of the claim the insured party is responsible for paying.

Whether you’re comparison shopping or switching from your current plan, it’s important to understand what your deductible will be. Having a full picture of all the costs involved can help you find coverage that fits your life and finances.

When the unexpected happens, it’s good to know you have a plan to protect your loved ones and your finances. SoFi has teamed up with some of the best insurance companies in the industry to provide members with fast, easy, and reliable insurance.

Find affordable auto, life, homeowners, and renters insurance with SoFi Protect.

Insurance not available in all states.
Experian is a registered service mark of Experian Personal Insurance Agency, Inc.
Social Finance, Inc. (“SoFi”) is compensated by Experian for each customer who purchases a policy through Experian from the site.


Coverage and pricing is subject to eligibility and underwriting criteria.

Ladder Insurance Services, LLC (CA license # OK22568; AR license # 3000140372) distributes term life insurance products issued by multiple insurers- for further details see ladderlife.com. All insurance products are governed by the terms set forth in the applicable insurance policy. Each insurer has financial responsibility for its own products.

Ladder, SoFi and SoFi Agency are separate, independent entities and are not responsible for the financial condition, business, or legal obligations of the other, Social Finance. Inc. (SoFi) and Social Finance Life Insurance Agency, LLC (SoFi Agency) do not issue, underwrite insurance or pay claims under Ladder Life™ policies. SoFi is compensated by Ladder for each issued term life policy.

SoFi Agency and its affiliates do not guarantee the services of any insurance company.

All services from Ladder Insurance Services, LLC are their own. Once you reach Ladder, SoFi is not involved and has no control over the products or services involved. The Ladder service is limited to documents and does not provide legal advice. Individual circumstances are unique and using documents provided is not a substitute for obtaining legal advice.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Source: sofi.com

Apache is functioning normally

Whether you’re moving out of your parent’s house or leaving the dorm life behind, becoming a first-time apartment renter is a big and exciting step. However, if you don’t know the ins and outs of the rental process, the task can seem overwhelming. Luckily, we at Redfin put together a list of 8 key tips to help first-time renters find their perfect first apartment and make the transition as smooth as possible. Whether you’re renting an apartment in Los Angeles, CA, or in Brooklyn, NY, these tips will be invaluable in your journey to securing the ideal rental space.

1. Your budget needs to cover more than just rent

If you’re a first-time apartment renter, knowing how to budget for your first apartment is crucial. Your monthly rent will, of course, be the most considerable expense you need to account for, but there are other one-time and ongoing fees that you should be able to pay. Let’s take a look at these costs more closely.

Initial, one-time costs

Before moving into your new apartment, you should save enough money to pay for the following upfront costs:

Recurring costs

Once you’ve moved into your first apartment, there are several ongoing expenses you’ll need to cover every month:

  • Rent
  • Utilities, such as electricity, garbage, water, sewage, etc.
  • Internet and phone
  • Parking
  • Laundry

As a first-time apartment renter, this might be the first time you’re responsible for these types of expenses. The last thing you want to do is misjudge what you can afford because you forgot to factor in these essential components of your cost of living. 

2. Make a list of needs, then prioritize them

Start with your dream apartment – what is your ultimate living situation? While you may not end up with everything on your list, it’s essential to understand what you value in your home. Some common needs for first-time apartment renters are:

  • Functional kitchen
  • Balcony, patio, or other private outdoor space
  • Closet and storage space
  • Proximity to work, nightlife, dog parks, or other amenities
  • Natural light and direction of exposure
  • Air conditioning
  • Building amenities, such as a gym, rooftop, or business center

Once you have your list, prioritize the items from most to least important. This will help you narrow down your choices and choose between similar properties. 

3. Ask a lot of questions during apartment tours

There are some things you just need to know when you’re shopping for apartments. You may direct these questions to your prospective landlord, or you might have to do some research on your own. Here is a list of must-ask questions, but you may choose to add others depending on your needs.

  1. How much is the rent?
  2. Are utilities included? If not, how much do they usually cost?
  3. How much is the security deposit?
  4. How do I pay rent and utilities?
  5. Is there a parking fee? 
  6. Is the apartment pet-friendly, and if so, what are the associated fees?
  7. Are any deposits or fees refunded at the end of the lease?
  8. Do I need proof of renters insurance?
  9. What’s the application process, and is there a fee?
  10. How long is the lease term?
  11. How often does rent increase and by how much?
  12. What alterations can I make to my apartment?
  13. How is apartment maintenance dealt with? 
  14. Is there a property manager?
  15. Am I responsible for any maintenance?
  16. What amenities are available nearby?
  17. Are there any particular policies I should know about?

These questions are just the beginning. You likely have special needs or preferences that should inspire additional questions. Keep a list of these questions with you when touring, along with a way of recording the answers. 

4. Know the rental application requirements

Each apartment will have a different rental process. Generally, your process will include some or all of the following:

  1. Fill out an apartment application
  2. Show proof of income
  3. Complete a credit check
  4. Complete a background check
  5. Provide rental history with the landlord’s contact information or a personal reference
  6. Add a co-signer if you have a low credit score or no credit history
  7. Include an optional cover letter

To show proof of income, you’ll likely need to provide your most recent pay stubs. You can also use an offer letter or letter from your employer if you’re moving for work. Many landlords or property management companies want to see that you have a reliable monthly income appropriate for the rent payment. While it depends on the apartment, there is often an income requirement that the renter needs to make 2 to 3 times the monthly rent amount.

5. Clarify the parking situation

Some rentals come with a designated parking area or parking spot(s). If you plan to live with a roommate and you both have cars, are there enough parking spaces to easily accommodate both of you? When there are not enough parking spaces or tandem parking, roommates will often switch off week to week or find another acceptable compromise. If the apartment complex does have parking spaces, be sure to ask if this comes at an additional cost. Parking fees are becoming increasingly common at rental properties. 

On the other hand, many apartments don’t come with parking, especially in bigger cities like New York City or San Francisco. In this case, pay close attention to the street parking. The street parking signs will tell you which days or times of day parking is limited or prohibited (usually for street-sweeping or snow plowing). But you should also note how many parking spaces are free on your street— is there plenty of room or are cars packed bumper to bumper? Streets with cars parked close together usually mean that parking is difficult to find. 

6. Know the best time of year to rent an apartment 

You can’t always control when you need to move, but if you do have flexibility, choosing the right time of year to rent an apartment could have a large impact. If your main concern is price, you’ll want to look for an apartment during the winter months. Typically, most people move in the summer months (college students moving away from home, etc.), so demand and prices are typically highest during this time and lowest in the winter. Keep in mind that while rent prices may be lower, there might not be a large selection of apartment complexes with availability. 

On the other hand, if your ideal apartment is your top priority, then moving during the summer may be a better option. Most renters sign 12-month leases in the summer. Therefore, most leases usually also end around that time. This means the highest number of new apartments are coming on the market, so you’ll have plenty of options to choose from. The main downside here is that rent prices will typically be higher, and you’ll need to act fast before the best apartments are off the market. 

7. Thoroughly read and understand the lease agreement

As a first-time apartment renter, reviewing your lease agreement is one of the most important steps to getting your apartment. Though the lease may contain complex language, it will outline the most important agreements you’re making by signing it. Here are a few things you should make a note of:

  • The length of your lease
  • The pet policy and any special terms (like additional fees)
  • Deposit requirements and how your deposit is returned
  • Sub-letting rules
  • Utility responsibilities
  • Maintenance procedures
  • Liens or claims to your property if you don’t pay rent

When in doubt, having your lease reviewed by a landlord-tenant attorney is a great idea. The attorney will be able to catch any illegal provisions, explain how provisions work, point out unfavorable provisions and their consequences, and suggest changes that provide you with a more favorable lease.

8. Get renters insurance

In many cases, carrying renters insurance may be required by your landlord, especially if you’re a first-time apartment renter. Even if it isn’t, it’s still a good idea to have it – regardless of if you’re a long-time tenant or a first-time apartment renter. A renters insurance policy protects you in three significant ways:

  • Personal property protection: If someone steals, damages, or destroys your personal belongings, you will receive a payout (minus the deductible). 
  • Personal liability: If someone gets hurt in your home, renters insurance will pay for medical bills and lost wages, depending on the terms of your policy. You may also be covered if you end up in a lawsuit. 
  • Loss of use: If your apartment becomes uninhabitable, loss of use coverage pays for your expenses, up to coverage limits, while you live outside your home. 

Always be sure to review your policy carefully. It’s a good idea to create an inventory of your personal belongings so that you both have a record of what you own and ensure your coverage limits are high enough to protect you in the event of a total loss. If you are unsure about any part of your insurance policy, speak with your agent. 

A final note on renting your first apartment 

Searching and finding a perfect apartment rental requires some diligence, patience, and preparation. By following these tips, you can avoid possible pitfalls and make your apartment hunting process as seamless as possible, especially if you’re a first-time apartment renter.

Source: redfin.com

Apache is functioning normally

A cash-out refinancing loan is treated differently by the IRS than a traditional mortgage. Although you receive a lump sum of cash, cash-out refinancing is considered a form of debt restructuring, and you do not pay taxes on the cash you receive.

With cash-out refinancing, you cash out a percentage of the equity that you have accrued in your home and replace your existing mortgage with one with a higher principal. You can use the cash for any reason, such as consolidating debt, paying for home renovations, or unexpected medical expenses.

Here’s what you should know about cash-out refinancing and the tax implications.

How Cash-Out Refinancing Works

When you refinance your mortgage, you cash out equity. Equity is the difference between your current mortgage balance and the value of your home today. Let’s say your home is worth $300,000 and the balance on your mortgage is $150,000, you have $150,000 in home equity.

A lender typically requires you to keep at least 20% of the value of your home in equity. In the above case, you would leave $60,000 in equity and have $90,000 to cash out. Your mortgage lender would also charge around 1% in closing costs.

First-time homebuyers can
prequalify for a SoFi mortgage loan,
with as little as 3% down.

The Tax Implications of Mortgage Refinancing

A cash-out refinancing loan is treated differently by the IRS than a traditional home loan because it is considered a form of debt restructuring. You do not pay tax on the money you receive in cash, and you might also be able to deduct some of the interest you pay on that cash from your taxes.

Here’s a closer look at the tax implications of a cash-out refinancing loan.

Is a Cash-Out Refinance Taxable?

Because the IRS considers a cash-out refinance to be a form of debt restructuring, the cash you receive is considered a loan, not income, and is not taxed. In addition, you could receive additional tax benefits depending on how you spend the money you receive.

If you use the cash to increase the value of your home, such as putting on a new addition or replacing your heating or cooling system, you can claim the interest that you pay on the loan as a tax deduction.

Before you do this, however, consult a tax professional to make sure that the work qualifies. Simple repairs like painting or general maintenance do not qualify for tax deductions. You will also have to keep meticulous records and save receipts documenting what you spend so that you can prove your case when you file your taxes.

Requirements for Interest Deductions on a Cash-Out Refinance

Capital improvements to a property that increase its value will qualify for an interest deduction. Examples could include a new addition, a security system, or a new swimming pool. General maintenance and repairs will not qualify, nor can you deduct the interest you pay on the loan if you spend the money on a vacation, medical bills, or credit card debt.

How to Make a Cash-Out Refinance Tax-Deductible

Below is a list of home improvements that qualify for the interest deduction.

Qualifying Home Improvements

•   Renovating or adding on an addition, such as a garage or a bedroom

•   Putting in a swimming pool

•   New fencing

•   New roof

•   New heating or cooling system

•   Installing efficient windows

•   Installing a home security system

Improving your property’s value means you can also save money if you sell your home. Capital home improvements count toward the total amount you spent on the property and can potentially lessen your capital gains tax liability when you sell your home.

Deductions for Adding a Home Office

Adding a home office to your home is a capital improvement that qualifies for the interest deduction on a cash-out refinancing loan. There are also additional potential tax benefits to adding a home office for small businesses or the self-employed.

How Home Offices Can Impact Your Taxes

You can deduct the interest on your cash-out refinancing loan if you use the money to add a home office, because it will increase the value of your home and is considered a capital improvement. If you are a business owner or self-employed, you could also qualify for the home office deduction on your federal taxes.

The home office deduction is a benefit that allows you to claim a percentage of what you pay on your loan as a business expense. You must use the designated office space for business purposes only, and it cannot be used as a spare bedroom or family space or it will not qualify. Also, your home office must be the primary place where you conduct business.

Recommended: What to Know Before You Deduct Your Home Office

Tax Implications of a Cash-Out Refinance for Rental Property

Rental income is considered personal income by the IRS. If you use the capital from a cash-out refinance to improve or repair a rental property, the expenses are tax-deductible. Also, interest, closing costs, and insurance paid on a rental property can be deducted from your income as business expenses.

What Are the Limitations for Interest Deduction with a Cash-Out Refinance?

For the 2022 tax year, single filers and married couples filing jointly could deduct mortgage interest up to $750,000. Married taxpayers who file separately could deduct up to $375,000 each. (The limit is higher for debts incurred prior to December 16, 2017: $1 million or $500,000 each for married couples filing separately.)

Can You Deduct Your Mortgage Points?

Mortgage points, also known as discount points, are fees you pay a lender upfront so that you can pay a lower interest rate on your loan. One point is equal to 1% of your mortgage loan. With a cash-out refinance, you cannot deduct the money you paid for points in the year you refinanced until after 2025. But you can spread out the cost throughout the loan. That means if you accumulate $2,500 worth of mortgage points on a 15-year refinance, you can deduct around $166 per year throughout the loan.

Risks of a Cash-Out Refinance

Cash-out refinancing is a risk. You are taking on a larger loan than your original home mortgage, which means that your monthly mortgage payment will increase unless interest rates are lower than when you applied for your current mortgage. If your payments are higher and you can’t keep up with them, you could be at greater risk of foreclosure.

Alternatives to a Cash-Out Refinance

Two financing alternatives that also use equity in your home are a home equity loan or a home equity line of credit (HELOC).

A home equity loan is a second mortgage for a fixed amount that you repay over a set period while keeping your original loan. The payments include interest and principal, just like a traditional mortgage, but the interest rate may be higher than a primary mortgage. This is because the primary lender is paid first in the event of foreclosure, so the secondary lender takes on more risk.

A home equity line of credit (HELOC) is also a second mortgage but with a revolving balance. That means you can borrow a certain amount, pay it back, and then borrow again. As with a credit card, your payments are based on how much you use from the line of credit, not on the available credit amount. If you don’t need to borrow a large sum, this might be a cheaper option than cash-out refinancing because a HELOC tends to have a lower interest rate.

Recommended: Home Equity Loans vs HELOCs vs Home Improvement Loans

The Takeaway

Cash-out refinancing is a way to access the equity in your home and use it to pay for expenses, though it does mean taking on increased debt. The cash from this type of mortgage refinancing can be used any way you like, such as to pay for home renovations, college, or unexpected medical expenses.

When you opt for cash-out refinancing, your original mortgage is replaced by a larger mortgage. If interest rates are lower than when you took out your original mortgage, your monthly payments may go down, but it will take you longer to pay off the loan. Depending on how much cash you need, you can also consider a HELOC or a home equity loan to obtain the money you need.

Turn your home equity into cash with a cash-out refi. Pay down high-interest debt, or increase your home’s value with a remodel. Get your rate in a matter of minutes, without affecting your credit score.*

Our Mortgage Loan Officers are ready to guide you through the cash-out refinance process step by step.

FAQ

Is cash-out refinance tax-deductible?

Some of the interest you pay on a cash-out refinancing loan might be tax deductible if you use the money to make capital improvements on your home and you keep meticulous documentation to prove it. It’s best to consult with a tax professional to make sure the improvements you do on your home qualify for the deduction.

Do you pay taxes on a cash-out refinance?

No. The funds you receive from cash-out refinancing are not subject to tax because the IRS considers refinancing a form of debt restructuring, and the money isn’t categorized as income.

How do I report a cash-out refinance on my tax return?

You don’t need to report the cash you receive from a cash-out refi as income, so the refi would only show up if you record the interest you are paying on the new mortgage on an itemized return.

What are the tax implications of a cash-out refinance on a rental property?

Rental income is taxed as personal income by the IRS. The good news is that if cash from a refinancing is used to improve or repair a rental property, the expenses are tax-deductible. Also, closing costs, interest, and insurance paid on a rental property may also be deductible from your income as business expenses.

How does the timing of a cash-out refinance affect my taxes?

As long as you meet the requirements for capital improvements, you can deduct the interest paid on your refinanced loan every year that you make payments throughout the life of your refinance loan. So, if you refinance your mortgage to a 15-year term, you must spread your deductions over the 15 years. However, you can only deduct the interest you pay each year, and the amount of interest paid will become less as the loan matures and you pay more toward the principal.

Photo credit: iStock/Jun

*Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

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Source: sofi.com

Apache is functioning normally

The average cost of homeowners insurance in Delaware is $875 per year, or about $73 per month, according to a NerdWallet analysis. That’s significantly less than the national average of $1,820 per year.

We’ve analyzed rates and companies across the state to find the best homeowners insurance in Delaware.

Note: Some insurance companies included in this article may have made changes in their underwriting practices and no longer issue new policies in your state. Even if an insurer serves your state, it may not write policies for all homes in all areas.

Why you can trust NerdWallet

Our writers and editors follow strict editorial guidelines to ensure fairness and accuracy in our writing and data analyses. You can trust the prices we show you because our data analysts take rigorous measures to eliminate inaccuracies in pricing data and may update rates for accuracy as new information becomes available.

We include rates from every locale in the country where coverage is offered and data is available. When comparing rates for different coverage amounts and backgrounds, we change only one variable at a time, so you can easily see how each factor affects pricing.

Our sample homeowner had good credit, $300,000 of dwelling coverage, $300,000 of liability coverage and a $1,000 deductible.

The best homeowners insurance in Delaware

If you’re looking to buy homeowners insurance from a well-rated national brand, consider one of these insurers from NerdWallet’s list of the Best Homeowners Insurance Companies.

More about the best home insurance companies in Delaware

See more details about each company to help you decide which one is best for you.

State Farm

Well-established insurer with a lengthy list of coverage options.

Coverage options

More than average

Average set of discounts

NAIC complaints

Fewer than expected

State Farm

Well-established insurer with a lengthy list of coverage options.

Coverage options

More than average

Average set of discounts

NAIC complaints

Fewer than expected

America’s largest home insurer celebrated its 100th anniversary in 2022. One useful endorsement you may be able to add to a State Farm policy is an inflation guard rider, which automatically increases your policy limits to make sure your coverage doesn’t fall short.

Chubb

Perks and high coverage limits for affluent homeowners.

Coverage options

About average

Great set of discounts

NAIC complaints

Far fewer than expected

Chubb

Perks and high coverage limits for affluent homeowners.

Coverage options

About average

Great set of discounts

NAIC complaints

Far fewer than expected

Chubb generally serves affluent policyholders with high-value homes, offering lofty coverage limits and plenty of perks. For example, the company covers water damage from backed-up sewers and drains, and pays to bring your home up to the latest building codes during reconstruction after a claim. (Many insurers charge more for these types of coverage.)

If you insure a secondary or seasonal home in Delaware with Chubb, you can sign up for the company’s Property Manager service at no charge. With this service, a Chubb representative will inspect your home after a hurricane, report its condition to you, submit a claim on your behalf and help prevent further damage.

Nationwide

For shoppers seeking a broad range of coverage options, Nationwide may fit the bill.

Coverage options

More than average

Great set of discounts

NAIC complaints

Close to expected

Nationwide

For shoppers seeking a broad range of coverage options, Nationwide may fit the bill.

Coverage options

More than average

Great set of discounts

NAIC complaints

Close to expected

We like Nationwide for its wide variety of coverage options. For example, its standard homeowners insurance policy generally includes ordinance or law coverage, which can help pay to bring your home up to current building codes after a covered claim. You can add other coverage for things like identity theft and damage from backed-up sewers and drains.

Depending on how much personal assistance you need, you can get a quote for homeowners insurance on the Nationwide website or work with a local agent instead. You can also use the website to pay bills, file claims or check claim status.

Travelers

Strong coverage and decent discounts.

Coverage options

About average

Average set of discounts

NAIC complaints

Fewer than expected

Travelers

Strong coverage and decent discounts.

Coverage options

About average

Average set of discounts

NAIC complaints

Fewer than expected

Travelers offers a robust online experience. You can use the website to get a homeowners insurance quote, file and track claims, make payments and learn about insurance basics.

Its coverage offerings are similarly strong. For example, you may be able to add extra coverage in case the dwelling limit on your home isn’t enough to rebuild your house after a disaster. One unique option is Travelers’ green home coverage, which pays extra if you want to use eco-friendly materials when repairing or rebuilding your home after a covered claim.

USAA

Offers perks and affordable rates for the military community.

Coverage options

Below average

Average set of discounts

NAIC complaints

Far fewer than expected

USAA

Offers perks and affordable rates for the military community.

Coverage options

Below average

Average set of discounts

NAIC complaints

Far fewer than expected

USAA sells homeowners insurance to veterans, active military members and their families. If that description fits you, you may want to consider a USAA policy. That’s because the company’s homeowners insurance has certain features that other insurers may charge extra for.

For example, USAA automatically covers your personal belongings on a “replacement cost” basis. Many companies pay out only what your items are worth at the time of the claim, which means you may not get much for older items. USAA pays enough for you to buy brand-new replacements for your stuff.

How much does homeowners insurance cost in Delaware?

The average annual cost of home insurance in Delaware is $875. That’s 52% less than the national average of $1,820.

In most U.S. states, including Delaware, many insurers use your credit-based insurance score to help set rates. Your insurance score is similar but not identical to your traditional credit score.

In Delaware, those with poor credit pay an average of $1,815 per year for homeowners insurance, according to NerdWallet’s rate analysis. That’s 107% more than those with good credit.

Average cost of homeowners insurance in Delaware by city

How much you pay for homeowners insurance in Delaware depends on where you live. For instance, the average cost of home insurance in Wilmington is $725 per year, while homeowners in Dover pay $790 per year, on average.

Average annual rate

Average monthly rate

Camden Wyoming

Georgetown

Middletown

New Castle

Rehoboth Beach

Wilmington

The cheapest home insurance in Delaware

Here are the insurers we found with average annual rates below the Delaware average of $875.

What to know about Delaware homeowners insurance

Delaware can see a range of severe weather that can spell disaster for homeowners. When looking for homeowners insurance in Delaware, consider the risk of coastal storms, flooding and hail.

Hurricanes and wind damage

Hurricanes and coastal storms can cause significant damage to properties, even if they don’t make landfall. Delaware is particularly vulnerable to coastal flooding and damage from high winds, as it is surrounded by water on three sides. Pay attention to your wind and flood coverage so you can make sure you have enough coverage for the damage these tropical storms can bring.

Your policy may have separate deductibles for hurricane and wind damage. Suppose your policy has a $1,000 deductible for most claims and a 2% deductible for wind claims. If your house has $250,000 worth of dwelling coverage, you’d have to pay for the first $5,000 of wind damage yourself.

Flooding

Coastal storms, snow melt and heavy rains can all cause flooding in Delaware. Standard homeowners insurance will not cover flood damage, which means people in at-risk areas should consider buying separate coverage.

To find out your risk, check out the Federal Emergency Management Agency’s flood maps and RiskFactor.com, a website from the nonprofit First Street Foundation. Even if your property is deemed low risk, it may be worthwhile to purchase flood insurance for extra peace of mind.

Homeowners in flood-prone areas may need to purchase separate flood insurance. Remember that while you can purchase flood coverage at any time, there’s typically a 30-day waiting period before the insurance takes effect. Here’s more information about flood insurance and waiting periods.

Thunderstorms and hail

While Delaware weather is often mild, severe thunderstorms bring strong wind and hail, which can cause extensive damage to roofs, siding or windows. Standard policies generally cover storm damage but keep in mind that, as with wind, hail damage may have a separate deductible.

Delaware insurance department

The Delaware Department of Insurance oversees the state’s insurance industry. In addition to providing consumer information, the agency’s website is also a resource if you’re having a dispute with your insurer. You can file a complaint using its online form. You can also reach out to the department with questions or to get support with your complaint at 800-282-8611 or [email protected].

Frequently asked questions

Is homeowners insurance required in Delaware?

Homeowners insurance is not required by Delaware state law. However, your lender may require you to purchase homeowners insurance.

Does Delaware homeowners insurance cover flooding?

Standard homeowners insurance in Delaware does not cover flooding. If you live in a high-risk area, you should consider buying a separate flood insurance policy.

How can I save money on homeowners insurance in Delaware?

There are several ways to save money on home insurance in Delaware:

  • Shop around to make sure you’re getting the best rate.

  • Choose a higher deductible. In case of any claims, you’ll pay more out of pocket, but your premiums will be lower.

Amanda Shapland contributed to this story.

Source: nerdwallet.com

Apache is functioning normally

The average cost of homeowners insurance in Maine is $1,020 per year, or about $85 per month, according to a NerdWallet analysis. That’s less than the national average of $1,820 per year.

We’ve analyzed rates and companies across the state to find the best homeowners insurance in Maine.

Note: Some insurance companies included in this article may have made changes in their underwriting practices and no longer issue new policies in your state. Even if an insurer serves your state, it may not write policies for all homes in all areas.

Why you can trust NerdWallet

Our writers and editors follow strict editorial guidelines to ensure fairness and accuracy in our writing and data analyses. You can trust the prices we show you because our data analysts take rigorous measures to eliminate inaccuracies in pricing data and may update rates for accuracy as new information becomes available.

We include rates from every locale in the country where coverage is offered and data is available. When comparing rates for different coverage amounts and backgrounds, we change only one variable at a time, so you can easily see how each factor affects pricing.

Our sample homeowner had good credit, $300,000 of dwelling coverage, $300,000 of liability coverage and a $1,000 deductible.

The best homeowners insurance in Maine

If you’re looking to buy homeowners insurance from a well-rated national brand, consider one of these insurers from NerdWallet’s list of the best homeowners insurance companies.

More about the best home insurance companies in Maine

See more details about each company to help you decide which one is best for you.

State Farm

Well-established insurer with a lengthy list of coverage options.

Coverage options

More than average

Average set of discounts

NAIC complaints

Fewer than expected

State Farm

Well-established insurer with a lengthy list of coverage options.

Coverage options

More than average

Average set of discounts

NAIC complaints

Fewer than expected

State Farm is a great choice for homeowners who like to work directly with a representative, as the company sells policies through a wide network of agents. And its attention to customer service has paid off; the company has fewer customer complaints to state regulators than expected for a company of its size.

State Farm offers a free Ting device as a perk for home insurance policyholders. Ting is a smart plug that monitors your home’s electrical network to help prevent fires.

Chubb

Perks and high coverage limits for affluent homeowners.

Coverage options

About average

Great set of discounts

NAIC complaints

Far fewer than expected

Chubb

Perks and high coverage limits for affluent homeowners.

Coverage options

About average

Great set of discounts

NAIC complaints

Far fewer than expected

Chubb generally serves affluent policyholders with high-value homes, offering lofty coverage limits and plenty of perks. For example, the company covers water damage from backed-up sewers and drains, and pays to bring your home up to the latest building codes during reconstruction after a claim. (Many insurers charge more for these types of coverage.)

Chubb policyholders may also be able to take advantage of the company’s HomeScan service, which uses infrared cameras to look for problems behind the walls of your home.

Vermont Mutual

4.5

NerdWallet rating 

Regional insurer since 1828, selling homeowners insurance in the Northeast through independent agents.

Coverage options

About average

Very few discounts

NAIC complaints

Far fewer than expected

Vermont Mutual

4.5

NerdWallet rating 

Regional insurer since 1828, selling homeowners insurance in the Northeast through independent agents.

Coverage options

About average

Very few discounts

NAIC complaints

Far fewer than expected

Founded in 1828, Vermont Mutual sells homeowners insurance through local independent agents. The company stands out for service, drawing far fewer complaints than expected for an insurer of its size.

You may be able to add coverage for major appliances such as water heaters, laundry machines or solar energy systems. Other endorsements may be available to cover identity theft, damage to underground service lines, backed-up drains and theft of expensive jewelry.

Hanover

Best for homeowners looking for many ways to customize their policy.

Coverage options

More than average

Average set of discounts

NAIC complaints

Far fewer than expected

Hanover

Best for homeowners looking for many ways to customize their policy.

Coverage options

More than average

Average set of discounts

NAIC complaints

Far fewer than expected

The Hanover gives homeowners lots of choices. You can opt for an auto/home package, a policy designed for high-value homes or a standalone policy for a standard house. You can further customize your policy with a range of coverage options for things like guaranteed replacement cost coverage, which will pay as much as it takes to rebuild your home after a disaster.

The Hanover sells policies exclusively through local independent agents. That means online quotes aren’t available, but you can get personal service to help you choose the right coverage.

How much does homeowners insurance cost in Maine?

The average annual cost of home insurance in Maine is $1,020. That’s 44% less than the national average of $1,820.

In most U.S. states, including Maine, many insurers use your credit-based insurance score to help set rates. Your insurance score is similar but not identical to your traditional credit score.

In Maine, those with poor credit pay an average of $2,085 per year for homeowners insurance, according to NerdWallet’s rate analysis. That’s 104% more than those with good credit.

Average cost of homeowners insurance in Maine by city

How much you pay for homeowners insurance in Maine depends on where you live. For instance, the average cost of home insurance in Portland is $1,035 per year, while homeowners in Bangor pay $1,000 per year, on average.

Average annual rate

Average monthly rate

Scarborough

South Portland

Waterville

The cheapest home insurance in Maine

Here are the insurers we found with average annual rates below the Maine average of $1,020

NerdWallet star rating

Average annual rate

Vermont Mutual

4.5

NerdWallet rating 

Concord Group

4.0

NerdWallet rating 

Union Mutual

Patriot Insurance

Patrons Oxford

What to know about Maine homeowners insurance

When shopping for home insurance in Maine, homeowners should consider the risks they could see, including severe winter weather, flooding, coastal storms and wildfire.

Winter weather

Maine’s snowy season can run from October to May, which means heavy snowfall and freezing temperatures. Both of these can spell disaster for homeowners, including roof damage, burst pipes and structural issues caused by the weight of snow and ice.

Homeowners insurance generally covers winter storm-related damages, but some types of winter weather damage may require extra coverage. For instance, you’ll typically need a separate flood insurance policy to cover flood damage caused by snowmelt.

Flooding

Heavy rain or snowmelt can cause flooding across the state of Maine. Significant water damage can result in high repair costs for homeowners, and standard home insurance policies do not cover flooding. As a result, homeowners in flood-prone areas should consider buying separate flood insurance.

To find out your risk, check out the Federal Emergency Management Agency’s flood maps and RiskFactor.com, a website from the nonprofit First Street Foundation. Even if your property is deemed low risk, it may be worthwhile to purchase flood insurance for extra peace of mind.

Remember that while you can purchase flood coverage at any time, there’s typically a 30-day waiting period before the insurance takes effect. Here’s more information about flood insurance and waiting periods.

Hurricanes and coastal storms

Hurricanes are less frequent in Maine than in the more southerly states, but coastal storms of all kinds still damage Maine property. Standard home insurance typically covers damage caused by storms, but read your policy carefully, as you may have separate deductibles for hurricanes and wind.

Hurricane deductibles can be from 1% to 10% of your dwelling coverage, or sometimes they can be a flat fee. For example, your policy may have a $1,000 deductible for most claims and a 2% deductible for hurricane-related claims. If your home has $200,000 of dwelling coverage, you would be responsible for $4,000 before your insurance pays for the rest of the hurricane-related damage.

Remember that you will also need a separate flood insurance policy to protect against flooding due to coastal storms.

Wildfire

Wildfires are common in Maine, especially in wooded and rural areas. While the damage caused by fire is typically covered by standard home insurance, it’s essential to understand the limits of that coverage.

Residents of high-risk areas should read their policies closely to understand any exclusions. Pay particular attention to the dwelling coverage limit, which is how much the insurance company will pay to rebuild your house. Check with your insurer to ensure you have enough coverage to rebuild if necessary.

Maine insurance department

The Maine Bureau of Insurance oversees the state’s insurance industry and maintains a website that provides consumer resources on homeowners insurance.

If you need to file a complaint against your insurer, you can do so online or by mail. Don’t hesitate to contact the bureau with questions or for help with your complaint at 800-300-5000 or [email protected].

Looking for more insurance in Maine?

Frequently asked questions

Is homeowners insurance required in Maine?

Homeowners insurance is not required by Maine state law. However, your lender may require you to purchase homeowners insurance.

Does Maine homeowners insurance cover flooding?

Flooding is not covered under standard Maine homeowners insurance. You will want to purchase a separate flood policy if you live in a high-risk area.

How can I save money on homeowners insurance in Maine?

There are several ways to save money on home insurance in Maine:

  • Shop around to make sure you’re getting the best rate.

  • Choose a higher deductible. In case of any claims, you’ll pay more out of pocket, but your premiums will be lower.

Amanda Shapland contributed to this story.

Source: nerdwallet.com

Apache is functioning normally

A fallen tree can significantly damage your home and other property. Homeowners insurance will likely cover the damage caused by the tree, but you may wonder if your policy will cover the cost of removing it. The answer is: It depends.

Does homeowners insurance cover tree removal?

If a tree falls for a reason covered by your policy, like strong winds or lightning, and damages your home, garage or other insured structures, your home insurance will likely cover the cost to remove the tree as well as the damage to your home.

There’s usually a limit to how much your insurance company will pay to remove debris, which includes fallen trees. This limit is typically around $500 to $1,000.

When doesn’t home insurance cover tree removal?

Home insurance won’t always pay for tree removal. Here are a few scenarios where you’re unlikely to have coverage.

No damage to property

If a tree falls as a result of snow, wind, hail or another covered event, but doesn’t damage structures such as your home or fence, you’ll likely be responsible for the cost of removing it.

One common exception is if the tree is blocking your driveway or a wheelchair ramp. In this case, your insurance may help cover the cost of removal.

Preventive tree removal

Home insurance normally won’t cover the cost of removing trees that pose no immediate threat to your property. This includes clearing sick or dying trees to prevent possible future damage. That’s considered part of your responsibility as a homeowner.

Events not covered by your policy

If a tree falls due to an event not covered by your policy, like a flood, earthquake or mudslide, you may need to pay for the removal out of your own pocket. It will likely not be covered by insurance.

How much does tree removal cost?

You can expect to pay between $200 and $2,000 for tree removal

. The exact price depends on the size of the tree, its location and job complexity. For example, trees under 30 feet may cost $200 to $450 to remove, while trees over 80 feet can cost $1,000 to $2,000 or more, depending on whether a crane is needed.

Even smaller trees can be expensive to remove if they’re near buildings, power lines or other structures. Similarly, trees with multiple branches or pest infestations can increase the total expense.

🤓Nerdy Tip

Weigh the cost of removal against your home insurance deductible, which is the amount you pay out of pocket before insurance covers the rest. If the cost of removing the tree isn’t much higher than your deductible, it may make sense to pay out of pocket instead of filing a claim. That way you can avoid premium increases or losing any claim-free discounts you might have.

Does home insurance cover damage caused by your neighbor’s tree?

If your neighbor’s tree falls onto your property and damages your home or another insured structure, like a garage or fence, you’ll typically need to file a claim with your own home insurance. Your insurance should cover the damage and removal costs, even if the tree was on your neighbor’s property.

If your neighbor’s tree was dead, diseased or poorly maintained and it falls on your property, your neighbor may be liable for the damages and removal costs. However, proving your neighbor knew the tree posed a risk before it fell can be a challenge. If you have proof that you informed your neighbor about the tree’s condition before it fell, it can strengthen your case. An example of proof would be a certified letter from a tree expert stating the tree needs to be removed.

Does homeowners insurance cover tree damage to your neighbor’s property?

If a tree on your property falls and damages your neighbor’s house, their insurance policy should cover the cost of repairing the damage. You shouldn’t need to file a claim with your own insurance.

That said, you could be responsible for the removal if your neighbor told you the tree was at risk of damaging their property and they have a paper trail to prove it. This could be considered negligence on your part.

What if a tree lands on your car?

Home insurance generally won’t cover a tree crashing onto your car. Instead, this type of situation falls under your auto insurance policy. If you have comprehensive auto insurance, it should cover the damage from the fallen tree. Comprehensive coverage pays for damage from non-collision events, like storms, falling trees, theft and vandalism. You may be responsible for the damage if you don’t have comprehensive coverage.

How to protect your home from tree damage

If you have trees on your property, these tips can help protect your home from damage:

  • Regularly inspect your trees. Look for signs of damage or disease, such as cracks, splits or dead branches. If you notice any issues, consider hiring a professional arborist to take care of the problem.

  • Trim your trees. Regular pruning can prevent branches from falling and damaging your home. Remove any dead or diseased branches, and trim trees so the remaining branches are a safe distance away from power lines and other structures. You may want to hire an arborist to trim branches near power lines.

  • Choose the right trees. Consider the size and location carefully when planting new trees. Ensure the tree is appropriate for the space and won’t cause damage to your home or other structures as it grows.

Source: nerdwallet.com