Lesbian, gay, bisexual, and transgender home-buyers and renters must pay a premium to live in states, cities and counties that offer legal protection from discrimination.
While it is unlikely that legal protections for LGBT people increase home values, the fact that these jurisdictions are more expensive has a disproportionate impact on LGBT buyers and renters who aspire to live there, Zillow reported.
To identify price differences across regions with and without local legal protections, Zillow analyzed the typical cost of buying a home in states, cities and counties that have laws in place to protect LGBT buyers from housing discrimination. Protections include being evicted, denied housing, or refused the ability to rent or buy housing based on sexual orientation or gender identity. While these premiums pertain to buyers, LGBT renters also feel the effects – given that high home values generally correlate with high rents. The same situation with condos for sale. Fodyo.com provides high quality service to protect your interest.
National housing and employment non-discrimination laws protect classes such as sex, race, age, color, religion, and national origin. The Supreme Court on Monday affirmed job protections for people who identify as LGBT, but explicit protections against housing discrimination do not exist at the federal level, and vary significantly based on local jurisdictions. Currently, only 22 U.S. states and the District of Columbia offer statewide laws explicitly prohibiting housing discrimination based on sexual orientation and gender identity.
Typical home values in those jurisdictions with legal protections are about $127,000 higher than home values in places without those laws – about $328,575 compared to $201,462. Many of these jurisdictions also offer the LGBT community legal protections beyond housing, including employment and public accommodation protections. While it’s not the specific legal protections bumping up home values in these states, those who identify as LGBT, among other buyers and renters, are paying more to buy or rent in areas that offer protections through anti-discriminatory policies.
LGBT buyers in Hawaii, Washington, D.C., and California can expect to pay the biggest premium to live in an area with those protections. Home values in Hawaii are about 219% higher than the typical home values in areas with no protections. Washington, D.C., is a close second at 218% higher, followed by California at 187%. Iowa is the only state with explicit protections for LGBT homebuyers where the typical home costs less than in places without protections – 23% less. More than 70% of LGBT buyers report making at least one sacrifice to stay at or below budget, compared to 58% of cisgender heterosexual buyers, according to data gathered for Zillow’s 2019 Consumer Housing Trends Report, and the 2020 edition scheduled to be released later this year. Such sacrifices include buying a home in worse condition, without desired finishes, and smaller than initially planned.
States without anti-discrimination laws for the LGBT community often have cities and counties that do provide legal protections, but those still largely come at a premium. For example, Austin, Texas, has local regulations protecting LGBT homebuyers from housing discrimination. The typical home value in Austin is $401,999 – 90.3% higher than the state overall, and 99.5% higher than the nation in areas without protections.
“In addition to providing legal protections, there are other steps local and state governments can take to create housing markets that are more inclusive and accessible for LGBT people,” said Skylar Olsen, senior principal economist at Zillow. “We know LGBT buyers – especially LGBT buyers of color – are more likely to purchase affordable home types such as condos and townhomes. More local governments should work to allow more of these types of homes, opening up areas and neighborhoods that historically priced out many LGBT buyers. Legal protections for LGBT become more meaningful when people can afford to access them.”
Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at [email protected]
Since the mid-1990s, inflation has stayed very close to the Federal Reserve’s benchmark of 2% per year, often dipping much lower than that. The upshot has been a long run in which prices have changed little from year to year, with the noticeable exception of an 8% overall jump in 2022. Fortunately, current inflation has largely stabilized and, while still high compared with recent years and the Federal Reserve’s target rate, is back within overall historic norms. All told this has created an environment in which consumers don’t usually think about changing prices all that often.
For retirees, on the other hand, the picture is very different. They have to think in terms of years and decades. For them, inflation is a very powerful force. As prices rise decade over decade it can meaningfully eat away at your retirement savings unless you have prepared in advance. A financial advisor can help you better protect your retirement savings from the effects of inflation and plan for the future.
What Is Inflation?
Inflation measures changing prices in the marketplace. Specifically, it measures how prices increase for the same goods and services over time. For example, when the price of milk increases from $2.85 per gallon to $4.04 per gallon, that’s inflation. The opposite effect, when prices fall, is known as deflation and it is counterintuitively a borderline disaster for most households and consumers.
There are as many ways to measure inflation as there are economists, but the standard measure is known as the Consumer Price Index or CPI. It measures how prices change on an annual basis for a representative group of goods and services across the United States, omitting energy prices and agricultural products. These last two, while essential to household spending, are left out of the inflation statistics because they’re extremely vulnerable to geopolitical and natural events, respectively.
Economists consider a little bit of inflation beneficial. It shows that the economy is producing at capacity, which encourages growth. This is why the Federal Reserve has its inflation benchmark set at 2%, not zero.
For most households, inflation is reflected in both costs and incomes. As prices rise, employers typically increase pay scales to compensate. This is why economists treat inflation as such an emergency because it can create a feedback loop of rising incomes and prices with no natural stopping point. This also makes inflation, under ordinary circumstances, a minor issue. Most households don’t notice small price adjustments over short time frames and pay increases help them keep up over the long run.
Costs of Living in Retirement
In retirement, your basic math is simple: money in vs. money out. If your retirement accounts can generate more money than you spend, you can afford to retire.
The problem with inflation is that it gradually changes the math in this formula. Each year, your “money out” gets a little bit more expensive. Up front, it’s hard to notice. If a gallon of milk goes up by $0.02, that doesn’t stand out. But in the aggregate, these changes add up. For example, say that your costs come to $5,000 in spending per month. With 2% inflation, the next year you would spend $5,100 per month. The year after that, $5,202. The year after that, $5,306.
Even with just a 2% annual price increase, within just three years of retirement, you’re spending $300 more per month than you initially budgeted. And since retirement lasts for decades, inflation has plenty of time to set in.
Some Areas Are Particularly Vulnerable
One of the biggest things to remember about inflation is that it often hits some areas harder than others. For example, a disproportionate and large amount of 2022’s high inflation came courtesy of astronomical prices in the used and rental car markets. For retirees, this can be a double-edged sword depending on how you have structured your finances. You might be safe from some of the worst sectors or you might be particularly exposed.
A few costs of living that are particularly vulnerable to inflation and price swings are:
Housing: In recent decades the cost of housing has risen sharply. If you own a home, whether it’s paid off or on a fixed mortgage, you’re safe from these rising costs. If you rent, particularly in a big city, this will be a huge cost sector as prices go up year-over-year.
Energy and food: These two sectors are omitted from the core inflation measure because they’re extremely volatile. However, that volatility tends to make them particularly sensitive to inflation across the marketplace at large. That’s a particularly big problem because, ultimately, utilities and groceries make up the bulk of most households’ bottom line and just because they’re not in the BLS’ official report doesn’t mean you won’t feel the squeeze.
Imports: Historically, imported goods tend to experience inflation earlier and sooner than most other products in the marketplace. If you buy or rely on products brought in from overseas, this will show up in your budget.
Travel: If you want to travel in your retirement, inflation can make that more expensive. Airfare often jumps during periods of inflation and if you are leaving the country a weaker dollar will make your trip that much more expensive.
Savings and Social Security
Most retirees rely on three sources of income for the “money in” side of their retirement: savings, investments and Social Security. Let’s take a look at each.
Savings: Savings generally refers to the money you have in cash or cash-like assets. Basically, this refers to the money you have in banking products like checking, savings and certificates of deposit. The appeal of keeping money in savings is a certainty. Just putting everything into a savings account is about the lowest-risk option short of buying Treasury bonds. However, it also exposes your money to near-constant erosion. This feels like the safe option, but keeping all your money in the bank is a good way to effectively lost it little by little rather than all at once.
Low-Risk Investments: Low-risk investments tend to include assets like bonds and annuities. These are the middle ground between growth and safety. You want some growth but are willing to sacrifice potential gains for the confidence that you’ll get your money back. These are a mixed bag when it comes to long-term inflation management. The biggest problem is that low-risk investments often define their gains up-front.
Higher-Reward Investments: The most common footprint for a high-reward investment in stocks is either buying shares of an individual company or buying into industry or index funds. These are the growth end of the risk-reward balance. You will get the strongest returns but with the most risk. High-reward investments are the best way to manage inflation in the long run, since strong returns are the best way to keep your investments current with rising prices.
Social Security: Finally, most retiree households depend on Social Security to one degree or another. When it comes to inflation, this is the good news. Each year the Social Security Administration issues its annual COLA or “Cost of Living Adjustment.” This increases the monthly benefits issued to all recipients based on the government’s benchmark inflation rate. The COLA is based on national inflation figures. When prices go up, they tend to increase more in some areas than in others.
How To Address Inflation
So this is what inflation does. It tends to erode the value of low-growth assets and income as prices increase faster than the value of investments. Here are two things you can do to address inflation.
1. Manage Investments
The best way to address inflation in your retirement is to plan for it upfront. Specifically, build your retirement portfolio with inflation in mind. This can mean a few different things, such as investing in:
All of these assets tend to be sensitive to inflation. Stocks and REITs tend to grow with the value of the market, as companies increase their prices to keep pace with inflation. Short-term bonds, meanwhile, mature every few years, allowing you to reinvest in new assets that may better reflect current pricing. And some annuities offer an inflation-adjusted payment schedule, allowing you to plan for long-term growth in your returns.
2. Manage Costs
The biggest issue here is housing. The cost of housing has soared in recent decades and that fever shows no serious signs of breaking. This is most prominent in the rental market. Buying a home before you enter retirement, even if that means downsizing from your apartment, can help you secure your housing costs going forward.
If you own a paid-off home, you won’t have to plan for housing payments. If you start a mortgage prior to retirement, you will at least have fixed rather than escalating costs. Beyond that, prepare a good cash reserve for the wide fluctuations common to the energy and food sectors. These two areas are most prone to volatile price swings, both up and down, during periods of inflation.
The Bottom Line
Inflation can significantly eat away at your retirement savings. It’s important to build a retirement plan that anticipates enough growth to offset this, otherwise, you can see your quality of life decline as your bills get more expensive year after year. It’s important to take the necessary steps to protect your retirement savings.
Inflation Management Tips
The other best way to make plans is with good, solid help. A financial advisor can help you determine how inflation will impact your ability to save what you will need for retirement. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
The best way to make plans is with hard, solid numbers. Run your retirement plans through our inflation calculator to get a sense of whether you’re on the right track.
Eric Reed
Eric Reed is a freelance journalist who specializes in economics, policy and global issues, with substantial coverage of finance and personal finance. He has contributed to outlets including The Street, CNBC, Glassdoor and Consumer Reports. Eric’s work focuses on the human impact of abstract issues, emphasizing analytical journalism that helps readers more fully understand their world and their money. He has reported from more than a dozen countries, with datelines that include Sao Paolo, Brazil; Phnom Penh, Cambodia; and Athens, Greece. A former attorney, before becoming a journalist Eric worked in securities litigation and white collar criminal defense with a pro bono specialty in human trafficking issues. He graduated from the University of Michigan Law School and can be found any given Saturday in the fall cheering on his Wolverines.
Do you want to make extra money by renting out your storage space? This Neighbor Review will show you how it works and how much money you can make.
Are you looking for a way to make some extra money with the unused space that you have?
Neighbor.com is a platform where you can rent out your space to those who are looking to store their stuff, such as boxes of their belongings, furniture, and even their cars.
You can rent out your driveway, garage, closet, and more on Neighbor.com. It’s like Airbnb, but specifically for storage.
You’re not hosting any people and no one is spending the night. Just their stuff!
By becoming a host on Neighbor, you can make passive income from the space that you are not currently using.
The Neighbor website is easy to use, and you can list your space and get started today.
Click here to learn more about Neighbor.com and sign up.
If you are interested in renting out your unused space on Neighbor.com and making extra money, please continue reading my Neighbor Review below.
Quick summary:
Neighbor is a platform for renting your unused storage space to make extra money.
You can earn $100 to $400+ each month. This depends on demand in your area and the type of storage you are renting out.
As a Neighbor host, you get to choose who, what, and when things are stored.
Neighbor Review
What is Neighbor.com?
Neighbor.com is a platform that offers an alternative to self-storage. Neighbor connects people who have extra space (such as an unused closet) with those who need to store their stuff.
Neighbor was started in 2017 by Colton Gardner, Joseph Woodbury, and Preston Alder, and is based in Lehi, Utah. The Neighbor platform is available on both iOS and Android devices, allowing you to easily manage your rented spaces via the app and online.
You can rent out your garage, driveway, parking lot, basement, bedroom, shed, warehouse, carport, closet, attic, street parking spot, unpaved lot, and more.
As a self-storage alternative, Neighbor.com helps you make passive income by renting out extra space in your home.
In short, Neighbor.com offers a modern and efficient way for you to earn extra income by renting out the unused spaces in your home, while providing an accessible and cost-effective storage solution for others who need to store their stuff.
How much money can you make from the Neighbor app?
With the Neighbor app, your earnings depend on the demand and supply for storage space in your area.
Some places will have much higher demand than others, and you may be able to charge more for your storage space. And, the opposite may be true as well – there may not be much demand and due to that you may have to lower your storage rates.
You can make anywhere from $100 to $400 per month or more for renting out your space. The more desirable your available space is, the higher your potential earnings.
Some types of storage will earn you more money. I did a quick search and I found someone near where I currently am, and they are renting out indoor storage that is climate controlled for $1,000 a month that is big enough to fit a large RV, along with whatever else you want to store.
Why would a person store their stuff at a stranger’s home?
This is a great question. Why would a person want to store their stuff at your house instead of just going to a traditional storage facility?
Renters like to use Neighbor.com because it is an alternative to traditional storage units.
With Neighbor, that have more options, and it may be more convenient for them to store their stuff at your place. There’s no paperwork for them either, and it can all be done through an easy app.
Plus, many traditional storage facilities may be full and even have a waitlist (I have needed to store my RV in the past and many times the waitlist is years long, for example.
How Does Neighbor Storage App Work?
The Neighbor platform is easy to use.
The Neighbor Storage App connects people who have available storage space with those looking for a place to store their items. If you have unused space, you can list it on the platform, and if you need extra storage, you can search for suitable options nearby.
The Neighbor app allows you to list your space, set your price, and collect monthly rent. Communication between hosts and renters is all done through the app as well.
As a Neighbor host, you’ll need to create a listing on the Neighbor website for the storage space that you are wanting to rent out. You’ll give them details about the space, such as the size, type (is it a driveway or shed?), location (what town are you in?), and any specific requirements for potential renters. You should take pictures of the space too, as they can help a renter determine if the space is good for them or not.
After you’ve created your storage space listing and received a booking request, you can talk with the renter through the Neighbor app.
Once the booking is confirmed, you’ll coordinate with each other to have the belongings moved into the storage space. The platform also offers built-in tools for tracking and managing rental agreements, so that the transaction is easy for both hosts and renters.
Signing up and getting started with Neighbor is simple:
Download the Neighbor app or visit their website
Create a free account
If you’re hosting storage space, set up your listing with details and images
If you’re renting, search for suitable storage options and send booking requests
Communicate with your match and finalize arrangements
The steps to make money on Neighbor.com
To make money on Neighbor.com, follow these simple steps:
Create an account: Sign up for a free account on Neighbor.com using your email address, phone number, and basic personal information.
List your space: Provide details about the available space you want to rent out, including the dimensions, type of space (e.g. closet, attic, garage), and any unique features or restrictions. Upload clear, high-quality photos of the space to attract potential renters.
Set your price: Determine a competitive monthly rent for your listed space. You are in control of the price, so consider factors such as location, size, and demand in your area. Keep in mind that Neighbor.com will take a small percentage of your earnings as a service fee.
Review and accept bookings: Renters will send you booking requests for your storage space. Review their profiles and accept bookings from those who meet your requirements. You can even talk with potential renters through the Neighbor platform if you have any questions or concerns.
Get your storage space ready: Before the renter moves their belongings in, ensure your storage space is clean and easily accessible.
Maintain communication: Keep in touch with your renters throughout the rental duration. If they have any questions, make sure to get back to them in a timely manner. For the most part, it is fairly passive income, so you won’t normally need to talk very often.
Receive payments: After a successful booking, Neighbor.com will handle the payment process for you and they collect the rental earnings directly from the customer for you. Rent is collected monthly and automatically deposited into your chosen bank account or PayPal.
As you can see, it is easy to make passive income with Neighbor.com.
The types of storage you can rent on Neighbor.com
There are many different types of storage space that you can rent out on Neighbor.com.
Some common storage options you can rent on Neighbor.com include:
Garage: Renters may need to store a vehicle in your garage. This can be for reasons such as going on a long vacation, needing to temporarily free up space in their driveway, and more. They may even store furniture or other equipment. Garages are in demand because they can protect belongings from bad weather and also help keep items safe from theft.
Storage space: Smaller spaces within a house, such as closets, cabinets, or attics, can be rented out for storing smaller items or boxes that don’t require a large area. Neighbor even says that you can rent out a shelf in your home!
Driveway: For those in need of a place to park their cars, boats, or RVs, renting a driveway can be an affordable and convenient choice.
Shed: Outdoor sheds are perfect for storing gardening tools, bikes, or other items that can withstand the elements.
Things To Think About Before Renting Out Your Storage Space
To become a host on Neighbor.com, there are some things that you will want to think about.
Space Requirements – To become a host with Neighbor, all you need to do is clear a space in your property. Think about what you have available, even if that means that you may have to clear out some room and shuffle some of your belongings around. Remember, the more attractive and functional the space, the higher the chances of attracting renters.
Responsibilities – Your main responsibility as a host is to provide a safe and secure space for renters to store their belongings. You will want to keep the area clean and safe for a renter. You will also need to communicate with renters to coordinate pick-up and drop-off times, and answer any questions that they may have.
Liability coverage – To give you peace of mind, Neighbor offers liability coverage for hosts up to $1,000,000. In case a renter’s belongings are damaged or lost under your care, you won’t be held liable for the damages.
Identity Verification – For the safety and security of both hosts and renters, Neighbor requires all users to verify their identity when signing up. This process entails providing your legal name, date of birth, and proof of identity, such as your driver’s license. By verifying your identity, this creates a safer community.
Theft Protection – You should take measures to protect the items stored on your property, such as using locks or installing security cameras. Also, renters’ items are covered up to $25,000 in case of theft.
Managing Renters and Payments
Neighbor strives to provide a safe and secure platform for hosts and renters. When a potential renter expresses interest in your space, you have the chance to review their profile and approve or deny the request.
Once a renter is approved, Neighbor handles all the payments by charging the renter’s debit card monthly and depositing the funds directly into your bank account.
Payment Methods
Neighbor offers various payment methods for both hosts and renters. As a host, you will receive your earnings via direct deposit to your bank account.
Renters can pay for their storage space using a credit card, debit card, or other supported payment methods.
Service Fees
Neighbor charges a service fee of 4.9% + $0.30 on each payment from the renter.
So, if your rental fee is $100, then Neighbor will withhold $5.20 as their service charge, and you will receive the remaining amount ($94.80).
Refund Policy
Neighbor does have a refund policy and cancellation policy. This means that a customer can decide not to store their stuff at your home.
In case a renter decides to cancel the contract before moving in, they might be eligible for a full refund depending on the timing. However, if a renter cancels after moving items into your space, they may only receive a partial refund, depending on the remaining paid rental period.
Insurance and Liability Protection
As a platform for storing strangers stuff in your home, you probably have questions about safety and security.
Neighor offers insurance for both hosts and renters, protecting you from potential losses due to theft or damage. As a host, you’re eligible for a $1 million host guarantee, giving you peace of mind when you’re sharing your space with others.
As a renter, Neighbor provides a $25,000 protection plan (their rental guarantee) for your stored items as well.
Prohibited Items and Restrictions
Now, you are probably wondering – “But what if someone wants to store things that I am not okay with?”
This makes complete sense, as you, of course, don’t want someone storing illegal drugs or garbage in your home, of course.
To maintain a secure environment for everyone using the platform, Neighbor has set guidelines on prohibited items and restrictions. Keep in mind that certain items are not allowed to be stored in Neighbor storage spaces.
Prohibited items include, but are not limited to:
Hazardous materials
Explosives
Pesticides
Firearms and ammunition
Illegal drugs
Waste
Animals
Perishable goods
Are Neighbor.com reviews positive?
Neighbor has received many reviews on Trustpilot, which have been a mix of both positive and negative reviews.
Some reviewers write about the excellent service they have received by renting out their space on Neighbor, while I did see some negative reviews with specific Neighbor hosts, for example.
Also, some people have had good experiences as renters and hosts, while others have faced issues with billing and customer service.
Common Questions About Neighbor.com Storage
If you have more questions about renting out your unused space on Neighbor.com, please read the FAQs below.
Is Neighbor.com legitimate?
Yes, Neighbor.com is a legitimate company that connects people looking for storage space with those who have extra space available.
It is a peer-to-peer marketplace, where hosts can list their garage, spare bedroom, attic, basement, driveway, or any other space that someone else can use to store their belongings.
Is Neighbor safe to use?
Yes, Neighbor is safe to use for both renters and hosts. The platform gives $1,000,000 in liability coverage for hosts and $25,000 in insurance coverage for renters.
Plus, they have a prohibited items list, so that can help protect you as well.
Are the fees on Neighbor reasonable?
Neighbor does charge a fee. This is because they have created a platform to make sharing your storage space easy.
As a host, Neighbor charges a 4.9% processing fee and $0.30 for every reservation. For renters, there is around a 15% service charge in addition to the rental price.
How does payment work?
On Neighbor, renters pay through the platform, and hosts receive their payments directly from Neighbor. This ensures a secure transaction for both parties, with agreed-upon terms.
Is Neighbor.com BBB accredited?
Neighbor.com is not currently BBB accredited. However, BBB accreditation does not guarantee a better experience or whether a company is legitimate or real.
Can I make money with Neighbor? Is Neighbor a good way to make money?
Yes, you can make money with Neighbor by renting out your extra space to others who need storage. As a host, you set the price for your space, and the platform helps connect you with potential renters.
You can make anywhere from $100 to $400 per month or more in passive income for renting out your space.
Related: 30 Best Money Making Apps
Neighbor Review – Is the Neighbor app worth it?
If you are looking to make passive income, then renting out your unused storage space on Neighbor.com may be something that you are interested in.
To understand how Neighbor.com works, think of it as an Airbnb of storage; you offer your spare storage space (garage, basement, shed, etc.) for renters as temporary storage units without having to deal with the work of hosting guests.
Instead, you are just storing their stuff and then they leave! So, all you need to do is clear out a space for them to put their belongings.
For hosts, one of the main positives of using the Neighbor app is how easy the website makes everything. As a host, you can list your storage space with a description, pictures, and price. You can also decide on the length of time you want to rent it out – whether it’s for a month, a few months, or even longer.
For renters, the Neighbor app provides an affordable and/or convenient alternative to traditional storage units. Renters can browse listings and find storage spaces near their location that fit what they are looking for. Once they find a storage space that they are interested in, they can rent it from you and start storing their items.
Neighbor does charge a fee for using their website, but they are relatively low. As a host, you set the price for your storage space and the platform takes a small commission from the rent you receive for the convenience of using the Neighbor platform.
If you have an unused storage space and are looking to earn some passive income, the Neighbor app can definitely help you make some extra money.
Click here to learn more about Neighbor.com and sign up.
Would you rent out your extra space? Why or why not? What other questions would you like me to answer in this Neighbor Review?
The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.
Almost as soon as Americans learned to deal with COVID-19, new stress slammed into their lives: inflation worries.
A flood of COVID-19 government incentives, supply chain issues and the war between Ukraine and Russia pushed inflation to levels Americans haven’t seen since the 1970s. In August 2022, the Consumer Price Index reported that, while inflation had slowed down slightly due to lowering gasoline prices, the inflation rate was still 8.5% above July 2021, the most significant 12-month increase since May 1979. For instance, groceries are now 13.5% higher than in July 2021.
Lexington Law Firm surveyed 1,000 people between the ages of 18 and 99 about their views and opinions on the current situation regarding inflation. Here’s a breakdown of some of the results.
1. 79% of Americans are panicked about inflation
The study found that most Americans are distraught about the current situation. Seventy-nine percent said they were panicked about inflation. That 79% breaks down into 40% who said they were “somewhat worried about inflation” and 39% who said they were “very worried.”
The difference can be explained by the two groups’ age and financial situation. The “somewhat worried” group is composed mainly of younger people less concerned about inflation and those who find themselves more financially secure. Those who are “very worried” tend to belong to groups that were less financially secure or have a lower income. While all Americans have been hit hard by inflation, this second group bears a much more significant burden. For instance, inflation hits seniors on a fixed income much harder than many other groups.
For all groups, inflation worries impact important factors like savings accounts, saving for college, making necessary home improvements and caring for elderly parents. Families can only stretch dollars so far when dealing with pressing expenses.
2. 1 in 5 Americans has experienced physical and/or mental health challenges because of inflation stress
Worrying about money can be one of the major stresses in a person’s life. The survey found that 21% of respondents said inflation “hurt my health,” while 20% said they were more “short-tempered,” which can lead to mental strain and problems with friends and family members. A separate survey conducted in March 2022 by the American Psychological Association found that 87% of those surveyed said inflation worries about everyday items like food, gas prices and energy bills created the most stress. Respondents also cited factors like supply chain issues and the war in Ukraine as other sources of stress.
Inflation worries can cause numerous health problems, including:
Low energy
Anxiety
Depression
Strained relations with a partner
Headaches
Loss of sleep
Difficulties concentrating
Muscle pains
Some symptoms can dramatically affect a person’s health if they continue over a prolonged period. It’s important to find ways to cope with inflation stresses, such as finding extra income, snowballing credit card payments or refinancing debt.
3. Women are more worried than men about inflation
Our survey also found a gender difference in how men and women respond to inflation. The survey reported that 82.5% of women are worried about inflation, 11.8% more than men. Women expressed higher levels of concern in almost all categories.
Several factors arising from the pandemic may explain this difference. MarketWatch reported that more women left their jobs for pandemic-related reasons than men, and the work situation has not yet returned to pre-pandemic levels. A May 2021 survey by the Kaiser Family Foundation found that concern about caring for children during school closures and unsafe workplaces were frequently mentioned as reasons that women left their jobs.
According to MarketWatch, this has resulted in an imbalance in household duties. Since women are more likely to be the household member who buys groceries, investigates childcare or plans for family events such as birthdays or holidays, they tend to bear the burden of stress more than their male partners.
Even women who remained in the workforce were more likely to be stressed by money and inflation. The survey found that 14.8% of men were more compelled by inflation to approach their employers about a raise, compared to 10.2% of women.
4. Adults 25 – 34 (18.3%) were least likely to rely on their credit cards
Another interesting result of our survey was that adults aged 25 to 34 were less likely to rely on their credit cards to help deal with inflation. One reason for this is that members of Generation Z and millennials often have lower limits on their credit cards, which prevents them from spending large amounts on items like groceries or gas. Meanwhile, credit card reporting company Experian found that members of Generation X, now middle-aged, and baby boomers in their 60s had the highest levels of credit card debt and the most credit cards.
It’s a bad habit to rely on credit cards to pay for increased costs during inflation. With the Federal Reserve rapidly raising interest rates, the cost of borrowing is becoming increasingly expensive. When people carry credit card debt, it increases a little every day.
Hefty credit card debt can lead to severe problems and impact the ability to buy a car, purchase or rent a house or pay for education. As a person’s credit worsens because of overspending on credit cards, it’s harder for them to undertake other critical financial transactions. As hard as it may be, working to reduce credit card debt, even during inflation, is the smartest move.
5. Adults 25 – 34 are the least concerned with inflation
The survey also found that members of Generation Z and millennials are the least concerned with the effects of inflation. One reason for this may be that many young people moved back in with their parents during the pandemic and thus don’t have the same living costs as other age groups. Pew Research found that between February and March 2020, 2.6 million young adults moved back in with a parent.
Meanwhile, the Federal Reserve of Cleveland found that most young adults who moved back in with their families came from high-income groups. Only 10% of those who returned home came from families that earned less than $27,000 a year. Thus, many young adults are protected from the worst ravages of inflation and may be less worried about it. Challenges will arise when they finally leave their parents’ homes to buy their own homes, start a family or pay for basic expenses, and they may be unprepared to deal with the high cost of inflation.
How to protect your finances from inflation
Experts say no one can predict how long inflation will last. Some economists predict inflation may persist until late 2023 or even longer. Recent interest hikes by the Federal Reserve aim to slow down inflation. The downside to these Federal Reserve interest rate increases is that using credit cards to pay for even small things becomes more expensive.
Maintaining good credit and using personal finance tools is a great way to help protect your money against rising credit rates during inflation. Consider working with a credit repair consultant who can help you get your credit where it needs to be.
The trusted attorneys of Lexington Law can help you increase your credit score in several ways. We can assist you with challenges to or disputes with a credit bureau, offer ID theft insurance or provide you with a personal finance management tool to help you with your expenses, to name just a few of our services. You can visit our website to learn more about our services.
Methodology
Note: This survey was conducted for Lexington Law Firm using Suzy.com. The sample consisted of a total of 1,039 responses per question and is not statistically representative of the general population. This survey was conducted in September 2022.
Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.
Reviewed By
Vince R. Mayr
Supervising Attorney of Bankruptcies
Vince has considerable expertise in the field of bankruptcy law.
He has represented clients in more than 3,000 bankruptcy matters under chapters 7, 11, 12, and 13 of the U.S. Bankruptcy Code. Vince earned his Bachelor of Science Degree in Government from the University of Maryland. His Masters of Public Administration degree was earned from Golden Gate University School of Public Administration. His Juris Doctor was earned at Golden Gate University School of Law, San Francisco, California. Vince is licensed to practice law in Arizona, Nevada, and Colorado. He is located in the Phoenix office.
Last Updated: May 25, 2023 BY Michelle Schroeder-Gardner – 54 Comments
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Last month, I published Frugality And Ethics – When Is It Stealing? The post was very popular and everyone had an opinion on what was stealing and what was not. Also, many of you gave me new ideas, and I wanted to hear everyone’s input on the situations below. So, I, of course, wanted to publish a Part 2 to the post!
I don’t think that there is anything wrong with saving money (this is a personal finance blog after all), but I do wonder how far people will go to save money – whether it be $1 or $2 or a few hundred dollars.
No one is perfect, and I definitely am not. However, when does frugality or cheapness cross the line and turn into stealing?
Using another person’s wi-fi.
This is something that probably a lot of people are guilty of, or have been guilty of in the past. This is where you use someone else’s wi-fi so that you can get on the internet for free.
Some of you said that if there is no password to the internet account, that it’s free range for anyone to use.
However, I think that you should always pay for your own wi-fi. You might be slowing down the internet for someone else, and they might not even realize that their wi-fi isn’t password protected.
Always protect your wi-fi account!– I also remember discussing a case when I was in college about someone who had unprotected wi-fi and it turned out that their neighbor was searching something illegal. The SWAT team showed up at their door, created a huge scene, took the computers, and destroyed the person’s house all because the neighbor was searching something illegal.
Sharing accounts with others.
This is where someone has an account and multiple people/households share that one account so that only one person is actually paying for the service or product. I have heard of many people doing this with Netflix…
Netflix and other companies have specifically stated that it’s stealing, so yes, I believe it is stealing.
Drinks at a restaurant.
There are three different situations that I would like to share with this one…
1. Paying for one drink and sharing it between two people. The first person might order a soda and the second person orders a water. However, the second person never actually touches the water and only drinks the soda. – I think this is stealing.
2. Asking for a water cup but filling it up with something besides water (such as a soda). – I think this is stealing.
3. Asking for water, a bowl of lemons (I’m talking 4 or 5 whole lemons), and sugar so that you can make your own lemonade. – I think this is being cheap/frugal. I wouldn’t do this though… I know waiters and waitresses hate it when customers do this.
Signing up for something to get something for free.
There are a couple of situations that this applies to. This is when you sign up for something knowing that you won’t buy anything, so that you can get a product or service for free for trying something out. Since Wes used to work in sales, I wouldn’t do either of the situations below just because I don’t like to waste people’s time…
My first example applies to timeshares. Many people listen to timeshare presentations even though they know they will not buy a timeshare, so that they can get whatever it is for free that the timeshare workers are pitching (free movie tickets, free vacation, etc.).
My second example applies to getting professional makeup done. Usually makeup counters/companies at the mall and/or department store will offer free makeup applications as long as you buy something for from them. Some require that you pay upfront, whereas others give you the “option” to pay at the end. I have heard of some people getting a free makeup application knowing full well that they do not plan on buying any makeup afterwards.
Learn more at How To Get Rid Of A Timeshare – Stop Wasting Your Money!
Taking condiments.
This is where you go to a restaurant and take a bunch of condiment packs so that you can bring it home and put it in your fridge.
I have received extra packs before (such as from a takeout order), but I have never gone out of my way to take condiments.
Disputing items on your credit card.
In many cases, you can dispute a transaction on your credit card bill that is less than $25 and your credit card company will just automatically refund you because it’s not worth their time to investigate the problem.
I have heard of people who dispute many transactions each year and take advantage of this…
I don’t do this. I believe it is stealing. I have only ever disputed one item on my credit card bill before, and that was because a restaurant accidentally charged me twice for the same meal.
Have you ever done any of the above? What do you think of these situations?
Hawaii is an exciting place to call home. It offers incredible weather, scenic views, friendly people, and a slow-paced lifestyle. If you’re lucky enough to live or work in Hawaii, you might be looking for the best banks in the state.
While the Aloha State has fewer banks than other states, there are still plenty of reputable, member FDIC options available to you.
12 Best Banks in Hawaii
To make your search for a bank a bit easier, we’ve done some research and compiled this list of the best banks in Hawaii.
1. First Hawaiian Bank
First Hawaiian Bank, the oldest bank in the state, holds the distinction of having the most branches in Hawaii. This makes it a convenient choice for many people looking to open a checking account, as it provides three different options.
Their first option, Pure Checking, offers a straightforward, fee-free experience, complete with a complimentary debit card. The second, Priority Banking Gold, expands on these features by offering free checks and online bill pay, as well as discounts on loans.
For those seeking the most benefits, the Priority Banking Platinum provides an extensive list of perks, including a credit card with unlimited rewards and cash back, travel points, and no restrictions on redemption dates.
Beyond checking accounts, First Hawaiian Bank also caters to various other personal banking needs. They offer savings accounts, mortgage services, and wealth management solutions, among other things.
2. SoFi
SoFi serves as a top-notch alternative to traditional banking, catering to individuals seeking the convenience and flexibility of online banking. The SoFi Checking & Savings account offers a unique combination of checking account accessibility and high-yield savings account returns in a single, streamlined account.
There is no minimum balance requirement, no monthly fees, and no overdraft fees, positioning SoFi as a cost-effective solution for a broad spectrum of users. There’s also an enticing offer of earning up to $250 with qualifying direct deposits.
One of the most compelling aspects of SoFi is the impressive interest rates it offers. The savings account yields a 4.30% APY, while checking account balances earn 1.20% APY, both rates far outpacing those offered by most traditional banks. What’s more, deposits are insured by the FDIC up to $2 million, providing an added layer of financial security.
With SoFi Checking & Savings, accessing your money is both straightforward and convenient. Over 55,000 Allpoint® Network ATMs across the globe offer fee-free withdrawals, ensuring you can easily access your money whenever you need it.
3. Ally Bank
Ally Bank is an online bank that serves residents in every state, including Hawaii. It’s worth considering if you’re seeking an interest bearing checking account or competitive rates on high yield savings accounts, CDs, and money market accounts.
While deposit accounts are Ally’s bread and butter, the bank also offers mortgages, auto refinancing, and investment products. As an Ally account holder, you won’t have to worry about any monthly fees or minimum opening deposits.
Since Ally is an online-only bank, there are no local branches in Hawaii. Fortunately, it’s part of the Allpoint ATM network that will give you free access to more than 43,000 Allpoint ATMs. If you do use an out-of-network ATM, the bank will reimburse you up to $10 per month.
4. First American Trust
First American Trust operates one branch in Honolulu. If you have a particular interest in wealth planning, it should definitely be on your radar. It provides several wealth planning services, such as financial planning, retirement planning, and estate planning for individuals and families.
Its advisors can also help you set up a trust and protect your greatest assets. Additionally, First American Trust is a great resource if you’d like to build a diversified investment portfolio.
5. Bank of Hawaii
Headquartered in Honolulu, Bank of Hawaii is a regional bank and the second-oldest bank in the state. It serves local communities with a comprehensive suite of products and services as well as sponsorships and volunteerism. The bank’s lineup of personal banking products includes checking accounts, savings accounts, certificates of deposit (CDs), credit cards, personal loans, and insurance.
In addition, it supports small business owners with business deposit accounts, business credit cards, merchant services, and small business loans. The bank also specializes in investment services and long-term financial planning to help you meet your personal finance goals. If you’re interested in Bank of Hawaii, you can chat with a banker online or in-person at a local branch.
6. Central Pacific Bank
Central Pacific Bank has been around since 1954 and has physical locations in Hawaii, Oahu, Maui, and Kauai as well as mobile banking services. It was originally founded to help immigrants build a safe life.
Today, the Hawaii bank offers a wide range of products and services to individuals and small businesses in the Aloha State. Central Pacific Bank stands out for its diverse savings account options, high rates on CDs, and low minimum balance requirements.
It also provides personalized, high quality wealth planning services from a team of wealth advisors. You can download the bank’s mobile app to pay bills, send money through Zelle, check your online statements, set notifications, track your budget, and keep tabs on your financial activity.
7. CIT Bank
CIT Bank is a digital bank with several attractive products for Hawaii residents. Savings Connect is a savings account that offers a competitive interest rate you might not be able to find elsewhere.
Another savings account you may want to consider at CIT Bank is the Savings Builder. While the Savings Builder has a lower annual percentage yield or APY than Savings Connect, it can encourage you to save as you must deposit at least $100 per month from your paycheck or elsewhere to secure the highest APY.
Unlike many brick-and-mortar financial institutions, CIT Bank doesn’t charge monthly maintenance fees, overdraft fees, ATM fees, or excessive transaction fees. You can open a new account and manage it via the online portal or mobile app. If you have any questions or concerns, you can contact phone support on weekdays and Saturdays during select hours.
8. Hawaii National Bank
Hawaii National Bank is a local bank that made its debut in 1960 and has branch locations in Oahu, Maui, and Hilo. It offers several checking accounts, including the Household Checking, Personal Checking, 55+ Checking, Super NOW, and VIP Money Market Deposit. Even though some checking accounts come with monthly fees, the bank may waive them if you maintain a certain balance.
Savings account options include the traditional Personal Savings account with a variable, competitive interest rate, Kids’ Savings account for kids ages 5 to 17, and Christmas Savings account that can help you save for the holiday season.
In addition to checking accounts and savings accounts, you may turn to Hawaii National Bank for personal loans, credit cards, home loans, CDs, and retirement accounts. The bank also serves small business owners with deposit accounts, business loans, and commercial mortgages.
9. American Savings Bank
Known as the third-largest bank in Hawaii, American Savings Bank serves the Aloha State with a wide range of offerings. You can choose from three checking accounts, six savings accounts, and several credit cards with cash back rewards or points. American Savings Bank also offers CDs, student loans, mortgages, and credit cards.
If you open a checking account, you’ll reap the benefits of Overdraft Courtesy, which protects you from overdrafts that may occur from checks and electronic payments. Additionally, the bank’s advisors can assist you with investments and insurance.
If you become an American Savings customer, you may take advantage of online banking, which allows for mobile check deposit, automatic bill pay, Zelle payments, eStatements, and more.
10. Synchrony Bank
Synchrony Bank is an online bank you might want to explore as a Hawaii resident. With Synchrony, you can expect high interest rates on savings accounts and CDs, no monthly fees, a variety of credit card options from popular retailers, and reimbursements for out-of-network ATM access.
If you join the Synchrony Bank Perks Rewards program, you can earn elite status if you meet certain criteria. You’ll reach Diamond status, which is the top level if you deposit more than $250,000 or stay with the bank for five years. This status comes with perks like three free wire transfers per statement cycle and unlimited reimbursements for domestic ATMs.
11. Territorial Savings Bank
Territorial Savings Bank has served Hawaii customers since its inception in 1921. If you open a checking account, you’ll be able to earn interest as long as you deposit $100.
The bank also offers numerous CDs with competitive interest rates, special mortgage rates for first time homeowners, and discounts from local merchants, like hotels, car rental companies, and restaurants.
If you’re a small business owner, you may select from a number of business deposit accounts, business credit cards, and business loans.
12. Finance Factors
Headquartered in Honolulu, Finance Factors has 13 branches throughout the Aloha State. The bank’s deposit products are savings accounts, CDs, and retirement accounts.
It also specializes in a wide range of home loans like conventional mortgages, government-backed mortgages, jumbo mortgages, and investor mortgages. You can stop into a local branch or log into the online portal to manage your account.
Bottom Line
As you can see, there are a variety of banks in the Aloha State. Before you move forward with one, it’s a good idea to weigh the pros and cons of all your options. Factors like your particular banking needs and whether you prefer an online or in-person banking experience will help you make the best choice for your unique situation. Good luck with your search for the best bank in Hawaii.
Frequently Asked Questions
What is the largest bank in Hawaii?
First Hawaiian Bank holds the title as the largest bank in Hawaii, establishing a significant presence with a total of 49 branches scattered across the state. Founded in 1858, it boasts a long history and deep roots in the local community.
Should I choose an online bank or a traditional bank in Hawaii?
An online bank is your best bet if your goal is to land the best interest rate and lowest fees. However, if personalized service is important to you, you’d likely be better off with a traditional bank. Fortunately, most traditional banks offer mobile apps and online portals.
Is a credit union a good option in Hawaii?
If you find a credit union with the ideal loan or the products and services you need and qualify for membership, you may want to join it. But you may find a wider range of offerings at a bank.
Why are there no national banks in Hawaii?
National banks aren’t in the Aloha State due to its small population and the high cost of real estate. Smaller banks are your only option if you live or work in Hawaii. The good news is you’ll find many local banks that offer just as many products and services as big banks.
We all want to save as much of our hard earned money as we can. Luckily for those shopping for a mortgage, there are several steps you can take to ensure you are saving money and getting the best deal possible.
Step 1: Get Lots of Estimates
Home loans are available from many different types of lenders, such as credit unions, big commercial banks, private mortgage companies, and thrift institutions. It’s worth your time to contact various types of lenders to see which has a program that best fits your needs.
Most of these lenders have forms that you can fill out online to get a custom rate estimate. If they don’t, you can always shoot them a call to give them your information. Make sure you give each lender the same personal information so that you can compare rates directly. Most lenders will require you to give them different variations of the following information:
Your name
The loan amount
Your social security number (so they can get your credit score)
The address and price of the house you want to buy
Your income
When you compare rates, make sure that you are comparing the same type of loan (the rates for a 30-year fixed will be different than a 15-year adjustable loan). Also, rates change frequently so try to compare them on the same day to get the most accurate information.
Another thing to consider is working with a mortgage broker who will help you find a lender and arrange transactions. They usually have connections with lots of lenders and can provide you with a wide variety of products and terms—for a fee. However, like lenders, you should consider contacting more than 1 broker to ensure that you are getting the best deal.
Step 2: Know the Costs Involved With Taking out a Mortgage
Unfortunately, there are some lenders out there who play games. They might offer you a lower rate but compensate by giving you higher closing costs (or vice versa). Instead of falling for their tricks, it is important to know all of the fees involved with taking out a mortgage so that you can insure you’re getting the best deal.
Rates:
Every mortgage will have a mortgage rate, or the rate of interest that a lender will charge you on your loan. They normally come in fixed or adjustable options. With a fixed interest rate, you will be paying the same amount of interest throughout the life of your loan. With an adjustable rate, your rate will remain fixed for a certain period of time and then adjust at intervals according to the benchmark interest rate.
Another factor that adds to your monthly interest is the annual percentage rate (APR). APRs are based on credit charges, broker fees, and points. Be sure to ask your lender how much you will be paying per month in APR.
Points:
Points are fees paid to a lender for the loan. Each point is equivalent to 1% of the loan amount and there are two types.
Origination points are used to pay loan officers for their efforts in closing a loan for you. Ask lenders how many origination points you will have to pay for the loan as these will add to your total cost.
Discount points are paid up front in exchange for a lower interest rate. Usually if you buy one point the lender will lower the interest rate by around 0.25%. These can be used to decrease your long-term cost.
Private Mortgage Insurance:
Some lenders offer low down payment options. However, if you put less than 20% down, it is likely that they will make you get private mortgage insurance (PMI) to protect them from damage if you default on the loan. PMI will add to your monthly payment, so be sure to ask if you need to take it out.
Closing Costs:
Closing costs are all the fees related to getting your loan. These include title search and insurance, appraisal fees, government recording and transfer fees, and escrow charges. Lenders are required to estimate these closing costs accurately using a “good faith estimate” so be sure to ask for one.
Step 3: Compare Lenders and Choose One
Now that you know the fees involved with taking out a mortgage, compare your potential lenders. Though obtaining the best deal financially will likely be a priority, make sure you also consider these three things below.
Prepayment Penalties
Some lenders charge borrowers a fee if they pay off their loan early. There are two types of prepayment penalties. A “soft” penalty is only charged if the borrower pays back the loan early with a refinance while a “hard” penalty is charged if the loan is payed back for any reason. Be sure to ask if your loan has a prepayment penalty, especially if you don’t plan on staying in your house for the entire life of the loan.
Rate Lock Period
When a lender offers you a rate, they will usually designate an amount of time in which you have to close loan and receive the rate, called the “rate lock period.” A longer lock period will give you more time to complete the process, and since most of us are pretty busy, this can be helpful. Some lenders charge a fee if you ask to extend the rate lock period, so make sure you ask lenders if they do.
Comfort with a Loan Officer/ Lender
The mortgage process can be tedious, so you want to be sure that you are working with a loan officer that you trust to get the job done in a timely and accurate manner. A slightly lower rate might look appealing, but it may not be worth it if it comes from an untrustworthy source.
Step 4: Negotiate
Many prices that come with a mortgage can be negotiated, especially since you can use all the offers you got from other lenders to increase your bargaining power. Even if your lender doesn’t lower their prices, it doesn’t hurt to ask. You can’t negotiate about transfer taxes, appraisal fees, and government recording fees, however, you can negotiate interest rates and closing costs.
Now that you know how to find yourself the best deal, it’s time to get started. Be sure to check out what Total Mortgage can offer you at https://www.totalmortgage.com.
Congratulations on buying a house! Now what? You may be wondering how
to be adequately insured in case in case you ever get sued and protect your
new, and biggest, asset. As a personal
injury attorney in New Haven County, take it from me it is important to
know the basics of insurance coverages when buying a new home.
Homeowner’s Insurance
For starters, you are going to need homeowners insurance. Homeowner’s
policies mainly protect you against any property damage to your home, such as
storm damage, fire, or even theft protection in case your home is burglarized.
More specifically, there are six (6) basic protections included in a standard homeowner’s
insurance policy including the following:
1) Dwelling – protects against property
damage to your house
2) Other structures coverage – protects
against damage to any other structures on your property such as a shed or
detached garage
3) Personal property coverage – protects
you against loss in case there is damage or certain losses to your personal
belongings
4) Loss-of-use coverage – protects you
for out of pocket costs if you are displaced form your home
5) Personal liability coverage – protects
you in case someone is injured on your property, for example slips and
falls on ice, and then sues you
6) Medical payments coverage – this
covers payment of medical bills in case someone is injured on your property
In addition to the above, home owner’s insurance can sometimes offer
additional coverage with certain elective add-ons or through other insurance
vehicles.
What’s not covered under a
Homeowner’s Policy?
There are many things that home owner’s policies do not cover. Some
things that are typically not covered under a homeowner’s policy include some
or all of the following:
Certain natural disasters (such as earthquakes,
landslides, sinkholes, and so on)
Flood or certain water damage
Mold, fungus, or rot
Neglect
Intentional loss (such as starting fire to your
home)
Eminent domain or other government action
War
Nuclear hazard
Insect of vermin damage
Damage or harm caused by animals/pets
Many insurance policies have exclusions under the policy for dog bites
or for ownership of certain breeds. In other words, if you own a dog or are a
dog lover and thinking about getting a dog, you should pay close attention to
the coverage as it relates to dog bites or dog ownership.
In Connecticut, under Conn. Gen. Stat § 22-357, homeowners can be held
strictly liable for a dog
bite injury whether or not it occurs on your property or not. Even if you
have a homeowner’s policy that protects against dog bite injuries, you may want
to consider additional coverage that will protect you in the event that a dog
bite occurs off property.
Many homeowners’ policies only cover you for from $100,000 up to
$500,000 in liability. This may seem like a lot but this coverage may not be
sufficient in the case of an accidental death or
serious injury occurring on (or off) your property. If you’re lucky enough to
have a pool or own a trampoline, you would be wise to increase your coverage as
your risk and liability exposure is much higher.
Umbrella Policy
An umbrella is an insurance policy that offers broader liability
coverage that protects you against liability for an accident death or serious
injury whether it occurs on or off your property. Additionally, with an
umbrella policy, you can get higher coverages for one million ($1,000,000) or
even much more if you have additional assets to protect.
An umbrella policy can also act in conjunction with your car or auto
insurance policy. This offers additional protection and peace of mind if you’re
ever at fault for a car
accident causing death or serious bodily harm.
As always you should contact an insurance expert or your local
insurance agent for what is and what is not covered under any given insurance
policy, but it is important to have a baseline of information when deciding
what the right insurance coverage is for you. Remember, as a new homeowner, it
is always better to be safe than sorry!
Carter Wessman
Carter Wessman is originally from the charming town of Norfolk, Massachusetts. When he isn’t busy writing about mortgage related topics, you can find him playing table tennis, or jamming on his bass guitar.
“Last month, ProPublica reported about a real estate flipping company that is targeting vulnerable homeowners, and using deception [and] coercion to close sales,” Smith told Chopra during the hearing. “You [previously indicated] that the CFPB does have a role to play in preventing such issues from going nationwide.”
When asked about what he is seeing and what the Bureau is doing to stay on top of such things, Chopra responded that there is something new that the CFPB has been hearing related to these recent stories.
“I actually met with some Minnesota community leaders about contract-for-deed targeting certain immigrant groups across the country,” Chopra said. “And I think what we want to make sure is even where we might not have jurisdiction to go after a scam, we want to tell the Justice Department and the state [attorney general].”
Chopra worries, he said, that because of the housing shortage and affordability issues playing out across the country, people are turning their attention in greater numbers to older homeowners sitting on a lot of equity who may be widowed, or who have limited English proficiency, and targeting them for scams.
“You mentioned that ProPublica article that obviously had some very troubling allegations, I don’t want to comment on that in too much detail,” Chopra said.
Chopra did say, however, that CFPB is relying on data including through consumer complaints and discussions with consumers in different regions to determine its potential action on different issues.
“One of the big mistakes in the lead-up to the Financial Crisis is federal regulators ignored stories from the ground,” Chopra said. “And that proved to be a pivotal mistake.”
The day after the Senate hearing, Sens. Smith and Cynthia Lummis (R-Wyoming) sent a letter to the National Association of Attorneys General recommending that state attorneys general “take steps to protect homeowners from predatory home-buying practices.”
“Senators Lummis and Smith were concerned by recently reported allegations that some franchises of HomeVestors of America, commonly recognized by their advertising catchline, ‘We Buy Ugly Houses,’ were targeting elderly and ill homeowners,” the senators said in a joint statement. “The letter details alarming and misleading practices wherein some franchisees allegedly targeted vulnerable homeowners and communities, using deception and coercion to close sales, and employing complex legal maneuvers to prevent their victims from backing out of sales despite unfair conditions.”
Within the original report, HomeVestors representatives told ProPublica that its reporting “represent[ed] a tiny fraction of the company’s overall transactions, which have totaled more than 71,400 since 2016,” according to the report. A spokesperson “denied the company had targeted the elderly and pointed to a 96% approval rating among homeowners who sell to HomeVestors, which was calculated internally from what the company says was ‘over 500’ customer reviews.”
The company added that it had “already taken action in some of the cases” highlighted by the report, and is “investigating others in light of the reporting.”
Shortly after the report’s publication, HomeVestors CEO David Hicks posted a response to the story.
“While we regret any transaction in which we fall short of our high standards, we must view these instances within the larger context of the nearly 150,000 seller experiences we have provided during our nearly 30-year history,” the response said in part. “We have thousands of encouraging stories of franchises going beyond expectations to help sellers and their communities.”
HousingWire reached out to HomeVestors for comment but did not hear back before this article was published.
Let’s be honest, reading the fine print of your renters insurance policy isn’t exactly fun.
After all, your insurance company doesn’t exactly hire John Green to write it, and trying to wrap your head around a bunch of legalese can be, well, exhausting.
But if you are one of the lucky ones that do read the policy, you may find that your renters insurance policy covers (and doesn’t cover) more than you originally thought.
What’s Ahead:
Surprising things that are covered by renters insurance
Items stolen from your car
Many renters insurance policies include off-premises renters insurancecoverage. This typically covers belongings that are outside of your home and provides the same coverage as your inside possessions. For instance, if your car is broken into and your laptop is stolen, you’ll be covered.
However, it’s important to note that your renters insurance will not protect your car against damage or theft (that’s a car insurance thing), it only covers the stuff inside the vehicle.
To be sure that you have all of the auto insurance that you need, check out our guide: What Type Of Car Insurance Do You Need?
Items stolen while traveling
Your off-premise coverage may also cover you in the event that you are traveling and your personal possessions are stolen.
This means that if your laptop, or iPad, is stolen from your hotel room while you’re on vacation, it’s likely covered by your renters insurance. This is because the stolen item is considered “insured property” and it will be covered whether it’s in your rental or not.
To ensure that your personal belongings are covered, it’s a good idea to contact your insurance provider before you leave on your vacation. Your insurer can help you determine if the personal property that you plan is protected under your policy or better left at home.
Living expenses
If your home is destroyed by an insured disaster and you can no longer live there, temporary living expenses like a hotel room, rent, meals, and the costs associated with storing your stuff may be covered by your additional living expenses (ALE) coverage.
Basically, ALE (not the beer) covers all of the expenses that you wouldn’t have had to pay for if you were still able to live in your home. However, if your home is destroyed by an uninsured disaster, let’s say water damage due to a flood, then you will not receive ALE coverage.
Other people’s injuries
If someone has an accident in your home, your renters insurance can help to cover that person’s medical expenses.
For you, this means that your clumsy best friend can finally come over for a visit without the worry of becoming a liability. After all, if she trips over a rug (or let’s face it, thin air) and takes a nasty fall, your renters insurance will have your back when it comes to medical bills.
This perk alone, which is typically covered under bodily injuryinsurance, is a great reason to get renters insurance.
Other people’s property
Your renters insurance may also cover damage to other people’s property and prevent you from having to pay for broken items out of pocket.
Let’s say your child throws a baseball through your neighbor’s window. Your renters insurance, thanks to personal liabilitycoverage, may help to cover some of the costs associated with repairing or replacing the damaged property.
Your family
You may be surprised to learn that many of the top renters’ insurance companies can cover anyone living under your roof that is related to you by blood, marriage, or adoption.
This means that if your mom comes to live with you for a few months, she will be automatically covered by your policy, as long as you have enough coverage!
However, if your house gets broken into and your roommate’s things are stolen, your insurance won’t cover their personal property. That is unless your roommate is also your sister.
Your pets
If you go to your friend’s house and your dog destroys her beautiful new couch, your renters’ insurance will cover it.
However, if your cute little pup destroys your new couch, your rental insurance will not cover the expense of replacing it (more on this below).
Surprising things that aren’t covered by renters insurance
Certain disasters
Most renters insurance will not cover disasters like floods and earthquakes. You may be able to purchase additional flood insurance coverage from a private provider.
If you are thinking about buying flood insurance, make sure that you know what it covers by reading our guide: What Is Flood Insurance? (And What Does It Cover?)
Similarly, you may be able to add earthquake coverage to your policy.
If your personal property is destroyed due to a volcanic eruption, wildfire, or tornado, you are likely already covered under your renters insurance policy.
Replacement costs
If your rental was robbed and the expensive sound system you bought five years before was stolen, you may be surprised to learn that you won’t get back enough money to fully cover the replacement cost, even though personal propertycoverage comes standard in most renters insurance policies.
This is because unless you have purchased replacement costcoverage, regular renters insurance will cover your personal belongings at their actual cash value (ACV).
For example, if your sound system cost you $2,500 five years ago, the insurance company might only offer you $1,000 to cover what it is worth today.
Expensive jewelry, art, or antiques
If you have expensive valuables like jewelry, art, or antiques, be aware that your renters policy might not cover these items. You may be required to purchase a “floater” policy to provide additional coverage for expensive possessions.
Most insurance policies will come with maximum limits for each type of coverage. So, let’s say you have a ring that costs $5,000, but your policy has a maximum coverage limit of $2,500 for jewelry, then it would be up to you to cover the difference.
You could also consider engagement ring insurance. You can learn what it does and does not cover in our article: Engagement Ring Insurance – Everything You Need To Know.
Property damage from pests
In the unfortunate event that your personal belongings are damaged by rats, bed bugs, or other rodents, bugs, or vermin, most renters insurance policies won’t cover the damage. This is true even if your infestation is so bad that you are required to leave your rental and find temporary housing.
Some renters insurance policies may offer bed bug insurance, but it is not usually considered part of a standard renters insurance plan and would come at an additional cost.
Summary
If you rent and assume that your landlord’s insurance policy will cover you in every situation, you may want to think again.
Renters insurance is the best way to ensure that your finances aren’t set back by a clumsy friend or major damage to your rental. While it’s an additional living expense, it’s often well worth the (low) cost.