A company may be run by a large group of people with the responsibilities spread out evenly between different departments.
Other companies rely heavily on one or two people.
If one of these highly important people were to pass away, these companies would have difficulties keeping the company in business.
Otherwise stated: They would be screwed!
You would think that most businesses are prepared if something happened to one of its key personnel.
A survey by AMA (America Management Association) says otherwise finding the following:
Only 14% of those surveyed said that their companies were well-prepared for the loss of a key person.
It’s these type of businesses that would benefit from key man life insurance.
What Is Key Man Life Insurance?
The concept of losing a close friend and colleague can be very difficult for business partners to imagine, but they must do so if their plan is to continue operating the business after the death of an important partner.
The key man insurance policy is a life insurance policy that business partners can purchase against the possibility of losing a key partner. If these particular people mean life or death for the company, they are exactly the people who need key man insurance.
Owners of small businesses may have life insurance policies that name their spouses or other family members as beneficiaries. These policies take care of the business partners’ personal expenses, such as the mortgage on the house and other debts.
Business partners often purchase disability insurance and make this available to their employees as well.
The disability insurance pays the expenses in the event that people experience an injury or are diagnosed with an illness that makes it impossible for them to work and earn their salaries.
However, key man insurance covers a completely different area. With the death of a key person, the key man insurance policy covers the company. If you’re one of those essential people in the company, or you’re the owner of the business, then you know how detrimental the death of a key person can be. You’ve been in hours of hard work and sweat into helping your company succeed.
Key man life insurance will protect that from crumbling down if there were anything tragic to happen.
Key man insurance would not be beneficial to every business, but the owners will want to learn more about this insurance coverage to discern whether or not their companies fall under the category of those that would benefit from purchasing a key man insurance policy.
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Does The Company Have One Or Two People Who Are Highly Important?
The owner of the company would certainly fall under this category. The founders of a business may also qualify as key people. If the loss of some employees would cause the organization to experience difficulties in running the business, this company may want to have key man insurance on these employees.
Every company is different, some companies have a whole team of people that they rely on, and if anything tragic were to happen to them, the business would struggle. Other companies have one key person at the top that is essential to the whole operation.
Because every company is different, there is no one-plan-fits-all policy that you can buy.
You will need to look at your organization and decide which kind of coverage is going to work best for you.
Regardless of the setup of your business, it’s vital that your key people have the insurance coverage in place to protect against anything that would happen if they were to pass away.
How Does Key Man Insurance Work?
Key man insurance is a life insurance policy that works much like regular life insurance.
The business will purchase the policy and will also be named as the beneficiary.
This requires that the partners pay premiums that keep the policy active. If one of the key people in the company passes away while the policy is active, the business receives the pre-determined lump sum of money.
This amount may be $100,000, but it could also be as much as several million. The amount that an organization receives will depend on how much the company can afford to pay in premiums. For example, purchasing a policy for a $5,000,000 payment will require that the partners pay more to keep the policy active than if they chose a $100,000 payment.
The partners will not necessarily benefit from a policy that offers them $500,000. The amount of the death benefits will depend on how much money will be required to replace the key person who has died. If the partners in the company believe that $100,000 would suffice, purchasing a policy for this amount is a legitimate choice to make. The partners can also keep their premiums lower if they purchase a term policy that tends to be less expensive than whole life insurance through one the best life insurance companies we have to work with.
What Can the Company Do with the Death Benefits?
What is done with the money will be up to the remaining business partners, but it will be used for the benefit of the business. For example, the business partners can pay any debts that are remaining, or they may offer an amount to their shareholders. Some business partners keep a portion for the business and offer the other to the deceased partner’s spouse.
Who Actually Owns the Policy?
Most key man life insurance policies will have some sort of cash value build-up either a whole life policy for universal life. Here’s the biggest misunderstanding I see: The individual does NOT own the policy. The company does and is also the beneficiary.
The company may get a tax deduction in paying for the key man life insurance policies’ premiums, but they can only do so if they add the premiums paid to the individuals taxable income. This might not sound as attractive if your the individual, but most companies will offer the cash value build up as an added retirement benefit.
I had one client that worked for an old company that had bought a $400,000 cash value life insurance policy on him. He had retired from the company and they let him take the policy with him. The cash value was only around $20,000 which he ended up leaving in the policy to pay for the premiums until it expired.
Are you a business that is need of key man life insurance? Give my office a call and we can give you a free review to see where you might need some coverage.
When you’re looking to get a key man life insurance plan, there are dozens of different factors that you have to consider to ensure that you’re getting the best plan to fit your company’s needs. It can be a long and difficult process, but if you’re one of the main components in a small business, you know the importance of getting insurance protection and not paying more for that coverage than you have to.
Obviously, the most important factors are how much it’s going to cost your organization to replace you if anything tragic were to happen. Each business is different and every person’s responsibilities inside of that organization are going to vary.
For example, if you manage all of the finances of your business, you’ll need to hire another person to handle those or outsource the finances. Depending on how long you need to outsource the job, you could need thousands and thousands of dollars of life insurance.
You’ve worked hard to make your small business flourish. It’s your lifeblood. If you started the organization yourself, you want to be able to protect that business, regardless of what happens to you. The best way to ensure that your employees and business partners have the security that they need is to have a key man life insurance policy that will give the resources that they need, if anything tragic were to happen to you.
Additionally, your family probably relies on the business and the income that comes from it. If something were to happen to you, not only would your business suffer, but your family would struggle as well.
Also worth noting, smart co-owners will set up buy-sell agreements and fund them with life insurance
Getting Better Key Man Life Insurance Rates
Just like any other type of life insurance policy, there are several things that you can do to ensure that you’re getting the best price for your coverage. You should always compare the rates from dozens of companies before you choose the one that works best for you. You compare the prices of TVs, why wouldn’t you do the same for a key man insurance plan?
Every insurance company is different, and all of them are going to have different medical underwriting requires and guidelines for how they determine their premiums amounts, which means that you could get drastically different rates from two separate companies. The best place to start your search is with the insurance company that you already hold policies with. Just about every insurance company gives discounts for having more than one policy. Getting a bundled discount is a great way to save a couple of extra dollars on your key man insurance policy, and could save you money on your other plans as well.
When you apply for a key man life insurance policy, just about every insurance company is going to require a medical exam. The results of the medical exam are going to play a major role in how much you’re going to pay every month for the policy. It’s important that you or the person being insured is in excellent health. One of the best ways to get lower rates for your key man policy is to cut out the tobacco.
If the person that is getting the plan is a smoker, then you’re going to be paying much higher rates. Anyone that uses tobacco is going to have a higher chance of heart attack and cancer, which means the insurance company is taking a great risk. They are going to offset all of that risk by charging you twice as much for that insurance coverage.
Don’t wait any longer to get the key man life insurance policy that your business and family deserve. You can’t predict the future, which means that you never know what’s going to happen tomorrow.
Does this sound disturbingly familiar? Skyrocketing home prices have very suddenly leveled off. Recession fears are swirling. The number of home sales has dropped. Is it 2006—the year that saw the ramp-up to America’s housing crash two years later—all over again?
Just like in the mid-2000s, experts are adamant that the correction in the housing market is simply that: a correction and not a catastrophe. Many news reports from early 2006, which often downplayed the risk of a severe housing crash, seem like they could be written about what’s happening today.
But back then, the pundits were wrong. We all know that a housing bubble burst, ushering in the Great Recession and taking down the global economy with it. Hindsight is 20/20.
So is the housing market in for a repeat performance? Or is this just some temporary pain for both buyers and sellers?
“Parallels can be drawn because of how quickly home prices have risen over the past few years,” says Yelena Maleyev, an economist at KPMG. “But that’s where the comparisons would end.”
Housing experts are quick to point out that the foundation of today’s housing market is stronger than it was in the mid-2000s. This time the downturn is due to higher mortgage interest rates, which rose rapidly from below 3% in 2021 to the high 6% range.
Today’s buyers have monthly mortgage payments that are basically double what they were just before the COVID-19 pandemic began. So many aren’t buying, or they’re unable to bid up prices like they did over the past few years.
But the most important difference between then and now is there are many more buyers than there are homes available this time around. The acute housing shortage will likely keep prices from falling off a cliff.
During the Great Recession, there were plenty of available homes—and no one to purchase them—so prices dropped about 26% over five years for existing homes. Today, buyers are still willing to bid over the asking price for move-in ready homes in desirable neighborhoods despite the financial challenges they face.
In addition, mortgages made over the past few years are much safer than those made nearly 20 years ago when lenders joke that their dogs could have gotten loans. The worst of the subprime mortgages that got homeowners in trouble when their payments suddenly doubled—or even tripled—have largely been eradicated. Borrowers have been thoroughly vetted, and only the strongest have been approved. And today’s homeowners are generally sitting on record amounts of equity.
“There are a lot of similarities that we should not ignore just because this time is different. … We do have some of our fundamentals that are out of whack,” says Ali Wolf, chief economist of the building consultancy Zonda. “But I don’t think it’s going to be a crash because the undersupply of homes is so different.”
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Watch: The Best Cities in the U.S. for Home Sellers Right Now
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Will home prices crash?
The question on the minds of homebuyers, sellers, and homeowners is what is going to happen with home prices.
They’ve already come down from their peaks last summer, which is typical. But they’ve also dipped a bit in some of the markets that got the most heated during the pandemic.
That’s reflected in the new-construction data from John Burns Real Estate Consulting. The price of newly built homes in Phoenix fell 15% year over year in March, according to the data. (The price includes incentives and concessions.)
In Boise, ID, another pandemic destination, prices were down 14% year over year for newly constructed homes. Prices dropped 10% in San Antonio, TX, just outside of Austin.
“It’s substantial,” says Devyn Bachman, senior vice president of research and operations at John Burns.
These places where prices rose the most or were extremely expensive to begin with might be the most vulnerable to larger price corrections, says Lisa Sturtevant, chief economist of Bright MLS. That includes the priciest parts of many housing markets, such as the downtowns of large cities.
Even with the affordability challenges, more than half of the sellers in the mid-Atlantic region received multiple offers in March, according to Sturtevant. About a third of all of the home sales went for more than the list price.
And home prices could continue to rise in the more affordable markets, such as in the Midwest. Homes in the lower price tiers could also see prices go up. Demand is so high for those more affordable properties that the competition often results in higher prices.
“We should expect some price corrections, not a price crash in these places where prices ran up the fastest,” says Sturtevant. “Everything seems to be slowing down a little bit … but everything still seems very competitive.”
The shortage of homes for sale is also keeping prices high. Builders have slowed down construction as their pool of buyers has dried up. And homeowners who would have listed their homes have been reluctant to do so thanks to the high mortgage rates. Most sellers are also buyers, many of whom will need to get a new mortgage at today’s rates. That means significantly higher monthly payments.
“Are there enough homes on the market for sale today? No,” says Matthew Gardner, chief economist at Windermere Real Estate. The Seattle-based brokerage covers much of the Western U.S. “Who is going to sell their home when they’re comfortably sitting on mortgage rates that are around 3%?”
Could higher mortgage rates deliver a death blow to the housing market?
Low mortgage rates were the fuel that caused the housing market to catch fire during the pandemic. Low rates meant buyers had more purchasing power—and could afford to bid higher than they otherwise would have. But when they rose, and buyers could no longer afford to buy, the housing correction commenced.
If the U.S. Federal Reserve keeps raising its rates to combat high inflation, mortgage rates are likely to keep climbing. That could scare off and price out additional buyers and put pressure on home prices to come down.
But many real estate professionals don’t anticipate mortgage rates to zoom up. They largely expect them to stay about where they are now—in the mid-6% range—at least through this spring.
Important to note: Historically, a 6% mortgage rate is relatively low. It’s a lot better than the peak of about 18.6% in September 1981, according to Freddie Mac data. The problem is home prices are high and memories of rates below 3% are fresh in the minds of many recent homebuyers and sellers. For every percentage point rise in rates, buyers can afford a whole lot less house.
Even though higher rates have led to a correction in the market, there are still buyers around the country queueing up at open houses.
“People have figured out how to make these mortgage rates work. They’re just looking for something to buy,” says Sturtevant.
Could there be another wave of foreclosures?
Foreclosures have been ticking up as pandemic-era moratoriums aimed at preventing homeowners from losing their properties have expired. But another tidal wave of foreclosures, like what happened during the 2000s, isn’t likely.
In the 2000s, “we had a huge amount of people using adjustable-rate mortgages with remarkably low interest rates. And there were also people who quite frankly should not have gotten a mortgage,” says Gardner, of Windermere. But when mortgage rates rose, “people found their mortgage payments doubling overnight and they had next to no equity. So what did they do? They walked away.”’
About 40% of homeowners currently own their homes outright without a mortgage, according to KPMG’s Maleyev. Many homeowners have record amounts of equity in their properties thanks to the rising prices over the past few years. So if they were having trouble making their mortgage payments, they choose to sell their homes instead—and often walk away with a profit. And most homeowners who have mortgages have 30-year fixed-rate loans, which don’t balloon in size over time.
There were more adjustable-rate mortgages in the early 2000s. So when mortgage rates ticked up and borrowers’ payments ballooned, “it didn’t take very much to burst that housing bubble,” says Maleyev.
Now, many real estate experts believe the nation is headed right into a recession—or will it be a near miss? A downturn with steep job losses would likely result in unemployed homeowners losing their abodes.
It would also discourage many folks, even those who remain employed, from purchasing property. Buying a home is typically the largest transaction that most people will ever make. And many people won’t feel comfortable doing so if they’re worried about the stability of their jobs.
“We will likely see some effects on the housing market going forward,” says Bachman, of John Burns. “Any time you lose jobs, there’s less demand for housing, for sale and for rent.”
But few expect another downturn would cut as deep as the Great Recession—or last nearly as long. Once the Fed gets inflation under control, it’s expected to cut rates to combat any turbulence in the economy. That will likely lead to lower mortgage rates, giving the housing market a boost. Many economists believe the housing market will begin recovering as early as next year, if not the year after that.
“It’s not the calm before the storm,” says Gardner. “This was just an important reset in the housing market.”
VICTORVILLE, Calif. — Century 21 Desert Rock Realtor Monica Lu’uga tells her clients to get their ducks in a row in the coming months, especially if they want to buy a home in the High Desert.
What You Need To Know
If the Federal Reserve pauses rate hikes, mortgage rates could drop and spur a homebuying run, experts said
The Federal Reserve is set to meet Wednesday
San Bernardino County’s High Desert is experiencing a commercial and residential development boom
San Bernardino has low inventory compared to its pre-pandemic numbers
With the Federal Reserve set to meet again this week, mortgage rates could drop in the next few months.
“If that happens, I think everything housing is going to go up again,” said Lu’uga to Spectrum News. “Sellers are going to have a field day again.”
The Federal Reserve will meet Wednesday to possibly raise interest rates for the last time as part of a yearlong effort to stem historically high inflation to 2%.
In March, the central bank met and raised interest rates for the ninth consecutive time since March 2022, going from nearly zero to just under 5%, according to reports. While interest rates and mortgage rates differ, the Federal Reserve’s actions on raising interest rates usually influence mortgage rates and long-term loans.
It’s still unclear which way the Federal Reserve will lean Wednesday regarding a rate hike. The latest consumer index report shows inflation cooled in March, indicating that the central bank’s hikes are working.
But if the Federal Reserve decides to pause rate hikes during this meeting or next, mortgage rates could drop and spur another homebuying run, many housing experts said.
The National Association of Realtors Senior Economist Nadia Evangelou said as inflation eases, mortgage rates could head below 6% in the coming months.
“Falling mortgage rates create opportunities for many buyers,” said Evangelou in a news release. “A lower mortgage rate brings down the monthly payment for a home loan. If rates drop to 6%, 3.1 million, more households will once again be able to afford to buy the median-priced home compared to the beginning of the year.”
Lowering the mortgage rate could spark more housing movements in San Bernardino’s High Desert, such as Victorville, Apple Valley, Phelan, Hesperia and other cities up the 15 North Freeway.
The area, more commonly known as the cities many residents in Los Angeles, Orange, and Riverside County residents pass as they drive to Las Vegas, is one of the few places in Southern California where a nicely sized home could be had for $350,000 and a mortgage less than $3,000.
According to an affordability calculator created by the National Association of Realtors, the average monthly mortgage payment in San Bernardino is currently $2,664, compared to last year’s $1,630.
Like many cities and counties across Southern California, San Bernardino County is experiencing a record-low inventory level. Demand has fallen only slightly because of high-interest rates and the low number of homes for sale, according to Reports on Housing, a data site that covers Southern California’s housing market.
“If more homes were available, pending sales would rise,” said Steven Thomas, an economist at Reports on Housing. “Buyers cannot buy what is not available. This scarcity of homes will continue as long as rates remain elevated.”
Spring is usually the start of the homebuying season and continues upward throughout the summer before it slows when school resumes. However, the lack of homes for sale has muted the housing market. Several people have hunkered down, either happy or handcuffed to the low-interest rates offered during the first couple of years of the COVID-19 pandemic.
Lowering mortgage rates could incentivize people to sell, experts said. San Bernardino sits at around 2,900 homes for sale in April, its lowest level since April last year, when it had about 2,600 homes on the market, according to Reports on Housing. Before the pandemic, San Bernardino averaged nearly 4,900 homes during the spring market.
“This is the latest bottom,” said Thomas to Spectrum News. “It’s no different than what’s happening across Southern California.”
Thomas said the market is growing hotter as buyers willingly jump into the fray despite the higher rates and low supply. According to Mortgage Daily News, the 30-year-fixed rate is 6.7% as of Monday.
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A look at Redfin’s latest seven-day sold listing shows homes that have sold less than a month after being listed and for above the list price.
“Buyers entering the market today are blown away at just how fast homes that are in good condition and priced according to their fair market values are flying off the market with dozens of offers to purchase,” Thomas said. “Open houses are bursting at the seams. In some cases, inspection and appraisal contingencies are once again being waived like they were when mortgage rates were below 3%.”
Lu’uga, the real estate agent specializing in this market, said people should expect the market to heat up again, especially if mortgage rates fall. She noted that San Bernardino County is experiencing a commercial and residential boom, which is good for the economy.
The e-commerce boom is fueling the county’s growing industrial and warehouse businesses. Brightline West is beginning work on an electric train that could travel 200 miles per hour from Apple Valley to Las Vegas.
The San Bernardino Airport is looking to attract more airlines to the regional airport to serve the county’s residents. More are coming.
“Aside from being affordable, we have a lot of commercial and residential developments being built,” Lu’uga said as she rattled off the projects like the Brightline train and industrial buildings. “I think we’re going to be a hot market again. We have a lot going for us.”
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Dependable Home Warranty was founded in California in 1974. When they became a subsidiary of Old Republic International in 1982, they continued to provide reliable coverage to all of their customers.
They have since earned a spot among the top three home warranty companies in the country with an A+ rating from the Better Business Bureau.
Old Republic offers efficient and friendly service with comprehensive plans and straightforward pricing.
Their goal is to be a long-time service provider for your household by building a relationship with your family and earning your trust.
Old Republic Home Protection Review: Main Features
Table of Contents
Old Republic offers many ways to protect your investment by covering common home repairs to help keep your house safe and sound.
With Old Republic, you can expect to find a variety of plans tailored to meet your coverage needs. Across plans, there are a number of features that stand out.
The following are some of our favorite Old Republic coverage features included in all plans, features which put it on our list of top home warranty companies.
Heating System
Heating units not exceeding five tons are covered under all of Old Republic’s warranty plans, and they don’t limit the number of units you can cover.
Most companies only allow coverage for one unit, and you have to pay extra for additional units, so this is a really excellent coverage option.
If you have multiple heating units in a large house or you have an outbuilding you use for your hobbies and projects, this coverage provides you with a great solution. Heating system coverage includes parts like the heat pump, ducts, thermostat, floor heater, and drain pumps.
Plumbing System
When a part of your plumbing isn’t working, it can disrupt your entire routine from dishes to showers to bathroom breaks.
Old Republic’s plumbing system coverage includes the following:
Drain line stoppages
Toilet tanks
Pipe leaks
clogs/leaks: in your water heater, water dispenser, garbage disposal, sump pump, and water pressure regulator parts
Electrical System
You use your electrical system for almost every part of your day. Making toast for breakfast, watching TV in the afternoon, and playing games with your kids in the evening all require electricity.
To keep the lights on, Old Republic covers your outlets, switches, panels, breakers, wiring, fuses, fans, and more.
If something goes wrong with your electrical system, they’ll restore power quickly so you can keep moving.
Home Appliances
Old Republic covers home appliances like your oven, cooktop, range, dishwasher, exhaust fan, built-in microwave, and trash compactor.
Every component of these systems is included in the event you experience normal wear and tear or an unexpected outage.
With this coverage, you can keep your kitchen in proper working order to cook meals, do dishes, or gather with family and friends.
Old Republic Warranty Plans
Old Republic offers customizable warranty plans based on location. While there’s not a standard set of plans for you to preview, Old Republic has brochures available that detail the specific coverage in your area.
Old Republic offers location-based plans to provide better coverage based on common problems in your region.
For instance, you won’t pay for air conditioning coverage when your home doesn’t have an air conditioner.
They can provide superior options and more valuable service by segmenting their warranty plans this way. Experts servicing your location will be more knowledgeable about the problems you encounter and be able to fix them more quickly.
The Good – Old Republic Home Protection
Old Republic offers some benefits in addition to their exceptional features, giving you not only great coverage but fantastic conveniences that make your life easier. Here are just a few of our favorites.
Easy Quotes
You don’t have to call Old Republic to request a quote, and you won’t be hassled by their representatives.
They provide online brochures listing the coverage options in your area so you can do the research on your own and find what’s right for you.
The quoted estimate is highly accurate and lists the service call fee along with the warranty plan price.
Online Claims
Most of your home warranty claims can be handled online, adding convenience to the process. If you find faulty wiring in the basement and you can live without spending time in that space for a few days, the online option is easy to use and eliminates the need for you to pick up the phone.
You should always call instead of filing a claim online in the event of an emergency or if you need to make multiple requests like bringing up previous services or getting the status of an existing claim.
Great Reputation
Old Republic prides themselves on having an outstanding reputation, and they do everything they can to maintain it. They’re reliable, professional, and competent.
The company lists their values online so you can always see how important it is to them to provide you with the best possible service.
They value honesty, and they are always open with their customers. With this kind of transparency, you can rest assured they’ll do whatever they can to give you the best service at the best prices.
Online Resources
Old Republic’s website includes a number of educational tools that can help you make an informed home warranty purchase.
With a blog full of home improvement tips, real estate marketing tools, information about home warranties, and more, you’ll be able to find what you need quickly.
The FAQ page includes answers to the questions that customers ask Old Republic most frequently, so when you’re on the hunt for more information about the company or their plans, it’s all right there.
Real Estate Professional Options
For real estate professionals who prefer to add perks to their sales, Old Republic has packages just for you.
You can cover all of the homes you sell with a fantastic starter warranty, enticing your buyers and giving you an edge.
These plans include extensive tools like customizable e-cards and newsletters, open house kits, and other marketing items.
The Bad – Old Republic Home Protection
As with anything you buy, Old Republic has some downsides, none of which are too significant.
Coverage Areas
They don’t provide nationwide service, so their warranty plans aren’t available everywhere.
However, Old Republic has chosen to focus on areas where they feel they can offer the best value, so in the areas where service is available, it’s the best service you can get.
Customer Support
Old Republic doesn’t offer email or online support. Sometimes the most convenient thing you can do is hop online and chat with someone if you have a quick question.
Support Options Limited
The lack of online support forces you to call in a situation where it would typically be simpler to chat.
However, they do have phone representatives, and their online help section is more comprehensive than many other providers. They have an extensive FAQ section as well as a blog that provides even more advice and answers.
Pros
Cons
Comprehensive Coverage
Old Republic Home Protection offers a wide range of coverage options, including for major appliances, systems, and optional add-ons such as pool and spa coverage.
Ease of Use
Old Republic Home Protection makes it easy to request service and track claims online or through their mobile app. They also have a network of pre-screened contractors to provide service.
Strong Reputation
Old Republic Home Protection has been in business for over 45 years and has a strong reputation for customer service and claims handling.
Customizable Plans
Old Republic Home Protection offers a variety of plans and optional add-ons, allowing customers to tailor their coverage to their specific needs and budget.
Alternatives to Old Republic
Old Republic is one of several great home warranty companies. Take a look at the top alternatives below to decide which provider is best for you.
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The Bottom Line – Old Republic Home Insurance Review
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While Old Republic doesn’t have online chat support or coverage in all areas, they do have a fabulous reputation for being honest and upfront with customers.
Their integrity standards are some of the best in the business, giving you peace of mind that your warranty coverage will be honored.
Their quotes are easy to find without having to reach out to a representative, they have a no-pressure sales process, and they offer location-specific coverage for more comprehensive plans and solutions.
When it comes to home warranty coverage, Old Republic provides excellent options for all of your home warranty needs.
FAQs – Old Republic Home Insurance
What does Old Republic Home Protection cover?
Old Republic Home Protection offers a range of coverage options, including for major appliances, heating and cooling systems, plumbing, and electrical systems. Optional add-ons, such as pool and spa coverage, are also available.
How does Old Republic Home Protection work?
If a covered item in your home breaks down, you can file a claim with Old Republic Home Protection either online or over the phone. Old Republic will then send a pre-screened contractor to your home to assess the problem and perform any necessary repairs.
How long does a contract with Old Republic Home Protection last?
Old Republic Home Protection requires a one-year contract. The contract automatically renews each year unless canceled.
Product Description: Old Republic Home Protection is a home warranty company that offers coverage for home systems and appliances.
Summary of Old Republic Home Protection
Old Republic Home Protection is a home warranty service that offers coverage for major repairs and replacements for important home systems and appliances. It provides coverage for items such as heating and cooling systems, plumbing, electrical, water heaters, and more. The company also offers additional services such as repair scheduling, 24/7 emergency service, online account management, and an annual maintenance plan.
Cost and Fees
Customer Service
User Experience
Product Offerings
Overall
3.9
Pros
Predictable Coverage: A one-year contract with automatic renewal means that homeowners can count on having coverage for a set period of time without having to worry about renewing the contract themselves.
Continuous Coverage: Automatic renewal ensures that there is no gap in coverage, which is especially important for homeowners who rely on their home systems and appliances.
Budgeting: With a one-year contract, homeowners can budget for the cost of the home warranty and plan accordingly for the renewal.
Cons
Long-Term Commitment: A one-year contract means that homeowners are locked into the service for a set period of time, even if they are dissatisfied with the coverage or service provided.
Cancellation Restrictions: Cancelling the contract before the end of the term may result in penalties or fees, depending on the terms of the contract.
Automatic Renewal: Automatic renewal means that the contract will renew automatically unless cancelled, which may catch some homeowners off-guard if they forget to cancel before the renewal date.
We’re pretty sure that you’ve heard it all before – spring is for renewal and a fresh start. However, this phrase will probably never get old because spring and our wish to change things up a bit is such a huge part of being a human (well, eating might be first on the list, but all that spring renewal stuff is also pretty high up), that this phrase always rings true. Now, about that ‘changing things up a bit’ part – we all do it differently, but why not apply this rule to all new and fresh home decoration ideas? After all, it’s the easiest (and usually almost free) way to give your surroundings a new look and make a fresh start for yourself. And if you’re looking for some home decoration ideas to inspire you, you’ve clicked on the right link, for this is our list dedicated exactly to that!
So here’s what you’re about to see: basically everything from bathroom decoration ideas to wall decor ideas! Yup, it’s a pretty extensive list covering all the bases of your home, so whether you’re looking for something specific – like fireplace decoration ideas (because we all know you’re not lighting that thing like ever) – or just browsing around without any particular ideas of your own, you’re bound to find some pretty cool home decor inspo right on this list. And that’s a promise!
Right, ready to dive deep into the world of home decoration? Sure you are! Scroll down below until you reach the submissions, vote for the ideas that you liked the most, and may you create the most unique home decor with the help of this list!
By Peter Anderson7 Comments – The content of this website often contains affiliate links and I may be compensated if you buy through those links (at no cost to you!). Learn more about how we make money. Last edited June 16, 2009.
Hi, I’m Pete And I Love Gadgets..
As someone who loves gadgets, and who can never get their fill of the newest and latest technology, having self control and not buying all the latest toys isn’t an easy thing to do.
If there is a new Ipod, I would love to find a deal and get my hands on one. New DSLR camera? Put me on the waiting list! For some reason I’ve never been one to wait a year or two until the gadget can be had for a fraction of the price. I have to have it when it’s new, it’s cool and it’s in demand.
Electronic gadgets seem to be one of my main spending downfalls.
Reining In The Spending
Once my wife and I started watching what we were spending a little closer, I realized that I wouldn’t be able to continue with always having the newest and the greatest. Once in a while? Maybe. But not every time that I really wanted to.
Part of the problem that I kept running into when I was trying to stop spending was that the things I wanted were always in front of me, a constant source of temptation.
When I would check my email, I would get email alerts for deals on all the newest electronics. I would open my web browser and it would always go to my homepage – a hot deals website always trumpeting the best deals on the hottest electronics. I would check my RSS reader, and I had an entire section devoted to hot deals, electronics and coupon sites. When talking with friends they would always talk about the newest gadget that they had as well.
After realizing just how much temptation was bombarding me every day, I realized something. I needed to remove the temptations to buy wherever I could. Part of the reason I was having a hard time stopping the spending was because things were constantly being offered to me, when I could in fact remove those temptations.
Removing The Temptation To Buy
Here’s what I did to remove several sources of temptation
I changed my browser’s homepage from a electronics deals site, to my gmail page. No more temptation every time I logged on!
I unsubscribed from email lists for major electronics retailers that I had purchased from before.
I removed many of the electronics and deals sites from my daily reads section in my RSS reader so I wasn’t bombarded with new deals on the hottest items every day.
I counted my blessings, and started enjoying the things I already had! Often the need to pursue the next best thing, and the need to just “have things” becomes more important than the items themselves. It’s then that we know that it’s time to take a step back.
When the temptation isn’t in front of you, it isn’t top of mind. When it isn’t top of mind, it’s a lot easier to realize that you don’t really need it.
I think it’s important to remember that we need to be careful not to become owned by our possessions. If we consistently want more, bigger, better things, they can begin to take over our lives. I believe we need to take the advice given in the bible in order to live better more rounded lives:
And he said to them, “Take care, and be on your guard against all covetousness, for one’s life does not consist in the abundance of his possessions” – Luke 12:15
Have you ever noticed that you are surrounded by temptations, and everyone is offering you ways to spend your money? Have you found that removing the temptation makes it easier to not spend? Tell us your thoughts in the comments.
Through all phases of life you are likely to see something or someone that you feel looks better than you or has something you want.
Let me paint a picture for you; You show up to a party and your girlfriend has on a beautiful dress with the purse, shoes and accessories to match and there you are with a dress that is 5 years old and flip-flops.
Meanwhile, your husband is downstairs checking out the finished basement, with a high definition TV and movie style seating. Now what?
Do you completely blow your monthly budget, head to the department store and duplicate her outfit?
Does your husband want to empty out your savings account or charge your credit card so he can have a movie theater in the basement?
OR are you happy that you both have friends to visit, dress and shoes to wear and that fit, a means of transportation to the party, and a house to live in?
I hope you choose the latter, but chances are you will be pulling out the credit card!! It’s natural to feel envious and jealous, but these are also 2 of the 7 deadly sins.
If we are constantly being jealous of others, how are we being thankful for what we have? God wants us to be like Paul and Job, who were content when they had everything and when they had nothing.
Comparing Our Worst To Someone Else’s Best
A celebrity once said that we need to stop comparing our worst to someone else’s best. That struck a nerve because it completely exposed what I have been doing for years.
I am a mother of four children. I lost all my pregnancy weight, but still have the mommy tummy and I am constantly looking at mothers with flat stomachs! I was sick of looking 4 months pregnant and my husband and I visited the plastic surgeon’s office for our free consultation about me getting a tummy tuck. I found out it would cost $5,000 for the procedure. I was ready to schedule my appointment. Two days later, I was laid off.
The only thing I can do now is change my mindset and be thankful that my body did what it needed to birth my healthy children.
Not being content with the blessings God has given us has cost many people hundreds, if not thousands of dollars.
Trying to keep up the Jones almost cost me $5,000. How much has it cost you?
Money Can’t Buy Happiness
Now, let me tell you something about the Jones, they are in debt up to their eyeballs.
My husband was a mortgage consultant for over 5 years before he went into banking and worked in a very upscale neighborhood.
Many customers, who made well over $200K, were looking to either refinance their home, get a HELOC, or cash out just to pay off their $100,000 credit card bill.
To make matter worse, during the application process, many husbands learned about their wives spending habits and would end up divorced.
The Jones might have every material possession imaginable, but are they happy? NO, because money does not buy happiness; if it did celebrities would not divorce as often as they do…think about it.
To be clear, there is nothing wrong with having money, the problem is when money has you.
Do you really need the 5,000 square foot house, a $40K wedding, a new Coach bag, the 65″ TV, the newest Apple device, or the trophy Starbuck’s cup?
I can go on and on, but I think you get the point. All these unnecessary materialistic possessions will cost a small fortune.
Saving Money Is Like Going On A Diet
Saving money can be compared to dieting. It is a slow process and you will begin to see changes immediately if done right. BUT, if you are not mentally prepared and committed to eat right AND exercise then all your efforts will be in vain.
The same applies to money. In order to reach financial security you have to save more AND spend less. You might be able to save the money, but will you go off and spend what you have saved as soon as your friend buys a TV bigger than yours or your girlfriends flaunt a new pair of Jimmy Choo sandals.
The act of being content is a challenge that one cannot face alone.
Prayer is one of the most powerful tools God has given us, so use it. When you are feeling envious or jealous, pray for God to remove those thoughts and allow you to be more thankful and content for what you have.
Instead of thinking about everything you don’t have, think about everything you DO have. Be happy that you are alive, have a family, can see, hear, walk, talk, drive a car, have a car to drive, clothes in your closet, food in your refrigerator, water in your faucet, a computer to read this article, the money to pay for the internet, a bed to sleep in, sheets on the bed, and most important a God in Heaven to call Father.
When you see someone with something nice, be happy for them. Tell yourself that they work hard and God has blessed them and will bless you!
Last Updated on February 24, 2022 by Mark Ferguson
Getting a loan on one or two rentals is not difficult if you have good credit and a decent job. However, many banks will tell you it is impossible to get more than four loans. The fact is there are many ways to get loans on multiple rentals, but the big banks don’t like to do it. There are ways to get loans on 10, 20, or even 100 properties. There are traditional banks that will finance more than four properties and portfolio lenders that will lend on multiple properties if you know where to look. There are even national lenders that specialize in rental property loans who prefer to lend on huge packages of rentals. When you hear a bank tell you it is impossible to get a loan on more than four properties, they are only talking about their bank. Don’t give up hope!
What is a portfolio lender?
Local lenders who offer portfolio financing are another option (my favorite) for investors. It can take some research, time and networking to find a portfolio lender, but they have much looser lending guidelines. Portfolio lending means the bank is using their own money to fund deals, and they don’t have to use Fannie Mae guidelines. My portfolio lender has no limits on how many loans they will give to investors as long as they have the cash reserves and income to support the mortgages. They allow 20% down on those properties and don’t require your life’s history to give you the loan.
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There are some drawbacks with a portfolio lender. My local bank does not offer a 30 year fixed mortgage. They offer a 15 year fixed, a 5/30, or a 7/30 ARM (adjustable-rate mortgage). I prefer to use ARMs with a 30-year mortgage instead of 15-year mortgages because the payments are much lower, which gives me much more cash flow. I can save that cash flow and keep buying more and more rentals that make much more money than the 4% or 5% interest rates on the loans. It does not hurt me to get an ARM and it is so much easier working with a local bank than it is working with the big banks.
Every local bank will have different terms and rates when they lend money. Some will not offer 30-year loans, some will have balloon payments, and some will not want to lend on rentals at all. It can take some time and work to find great investor-friendly banks.
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Why don’t big banks like to lend on rentals?
I think long-term rental properties are one of the best investments. Part of my retirement strategy is buying as many long-term rental properties as I can. The problem with buying many properties is most lenders don’t like lending to an investor who already has four mortgages. Most big banks will tell you it is impossible for them to give the fifth mortgage to anyone. The big banks have strict policies about loaning to investors because their primary business is lending to owner-occupied buyers. There is no law that says they cannot give investors more loans, it is simply the bank’s policies.
Most big banks will sell their loans off to other banks or as mortgage-backed securities. Because they sell their loans and do not keep them in-house as a portfolio lender does, the big banks have much stricter guidelines.
When are big banks a good option?
I used a conventional loan to finance my first rental that was from Bank of America. The loan was not easy to get, but I got it. I am a real estate agent and it is tougher for self-employed people to get loans, especially right after the housing crash (2010)! It was a 30 year fixed rate loan with an interest rate of right around 4 percent and I had to put 20 percent down. It was a great loan and I wish I could have continued to get loans like that, but Bank of America would not lend to me after I had four loans in my name. When starting out with less than 4 mortgages a big bank may be a good option.
How to get started investing in rentals.
Can you get a conventional loan on more than four properties?
It is possible to finance more than four properties with a traditional bank. Technically Fannie Mae guidelines say investors should be able to get a loan for up to 10 properties. Even with these guidelines in place, many lenders still won’t finance more than four properties because it is too risky for their investors. If you are diligent and make enough calls you should be able to find a lender who will loan up to ten properties. If you want to try an easier route, call a mortgage broker who can help you find a lender who can get it done. These are the requirements for most lenders that will finance from four to ten properties.
Own between 5-10 residential properties with financing attached
Make a 25 percent down payment on the property; 30 percent for 2-4 unit
Minimum credit score of 720
No mortgage late payments within the last 12 months on any mortgage
No bankruptcies or foreclosures in the last 7 years
2 years of tax returns showing rental income from all rental properties
6 months of PITI reserves on each of the financed properties
These guidelines are much stricter than when you are getting a loan and have fewer than four mortgages.
Refinancing rentals
If you want to refinance any of your properties and you already have four mortgages, most banks will only allow a 70% loan to value ratio and probably won’t allow you to take any cash out. One of the keys to my rental strategy is being able to take cash out when refinancing my rentals. I then take that cash out money and invest in more rental properties. Lenders will say it is too risky to do a cash-out refinance for investors with more than four mortgages. In my opinion, if an investor has the cash to put 20% down and has the cash reserves needed, they are less risky than the first-time home buyer putting 3.5% or less down.
Just because the big banks will not do it, does not mean it is impossible to do! I have been able to complete many cash-out refinances with a 75% loan to value ratio with local banks. I have done this on residential and commercial rental properties.
How to find a great lender
In order to find a portfolio lender, it takes some work. The first step is to ask everyone you know in the real estate industry. Ask Realtors, lenders, title companies, property managers, and other investors. Local real estate investor clubs may be able to provide information on portfolio lenders as well. If you can’t find a portfolio lender through word of mouth, try calling local banks. Ask banks if they loan their own money, what their policies are for investors, and if they don’t offer the right terms ask them who might.
National lenders
There are some new programs available from national rental property lenders that are built for investors to get loans on their rental properties. The lenders base their loans on the properties, not the investors. They have slightly higher rates than conventional lenders but are a great option for those who cannot find other financing. They often are much easier to work with if you have a high debt to income ratio, bad credit, or other issues. They usually do not have any limit on the number of loans you can obtain.
If I ever run into a problem finding a local bank to finance my rentals, I would look into using some of the national companies to finance me.
You can see a list of some of the lenders here.
Conclusion
There are ways to finance more than four properties even though many people will tell you it is impossible. Try talking to a mortgage broker who can get you in touch with banks that will finance more than four properties. If you have a big goal like myself like buying 100 properties in the next ten years, then you will need a portfolio lender who will finance more than four, more than 10, and more than 20 properties.
By Peter Anderson6 Comments – The content of this website often contains affiliate links and I may be compensated if you buy through those links (at no cost to you!). Learn more about how we make money. Last edited March 15, 2012.
Weekend Away
This past weekend my wife and I got away to the woods of Northern Wisconsin for a few days of fun and relaxation on the lake (see a picture of the lake below). My wife’s family used to own a beautiful cabin on a gorgeous lake near the town that we visited, and going there for vacation really got all the old memories flooding back of fun times at the cabin, and of being on the lake in her parent’s boat.
We walked through the town, and visited the cute little shops up and down main street. We ate lunch at an awesome outdoor cafe. We played mini-golf and rode the go-karts. We had a really good time. Then while we were sitting at dinner, we started dreaming about owning our own piece of lakeshore in this great little town.
Cabins, Boats And Other Things We Don’t Need
We talked about how we had always had such good times when we were at the cabin, and how some of our fondest memories of our young relationship had been out on the lake, and sitting on the dock at the lake house. We dreamed of buying our own piece of real estate on a lake in the area, and talked about how we could then get a boat, and store it there at the lake. We started thinking of all the ways we could make this piece of Wisconsin our own, and turn the summers at the cabin into a reality.
We even started looking around at places while we were driving around, thinking about how the market was down right now, and we could probably get a great deal on a cabin or townhouse on the lake right now. Prices are probably cheaper on lake real estate than they have been in years!
The cabin fever started creeping in, we really wanted to make the move!
In reading a post this morning on another blog, it looks like we’re not the only ones who were thinking about moving forward on a large goal, although I’m not sure I agree with how this person went about it (doing it without first talking to his wife).
Not Now, Maybe Later
After talking about it all weekend, we started to come to our senses and realize that we aren’t in any position to be buying a lake home right now. We still have a nice hefty mortgage on our principal residence, and adding another mortgage on a vacation home would just be silly. We realize that it just isn’t the right time for us to be buying a cabin.
On the other hand, I think it’s ok for us to dream, and set a future goal of one day owning a cabin on a lake. It is something that we enjoy, and that we could share with others. Is it something we can do right now? No. But it is something that can motivate us, and push us towards achieving in our professional lives? I think so. I wrote about using goals to motivate you a while back. Goals can have an extremely strong motivating power – and the funny thing is, a lot of the time once you are able to attain the goal, it doesn’t seem as important anymore.
So for us, I think that moving forward on a vacation home or a boat just aren’t good ideas right now. They will however be good motivating goals for us to work towards. Who knows, our views of living at the lake may change by the time we’re ready to go down that road ( I doubt it, I mean, look at that picture of the lake above? Doesn’t it just feel relaxing?). In the meantime having that goal will have a strong motivating pull for us, and will help us to reach our goals, whether it ends up being a cabin, or something else.
Do you have a big goal that you’re working towards attaining? Have you ever moved ahead on one of your large goals before you were ready, and were sorry later on because of it? Tell us about your big life goals, and how they have worked out for you.