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5 Tips for a Worker’s Compensation Case

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Anyone that gets injured at work is entitled to receive workers’ compensation benefits until they’re able to return to work. Follow the tips below to ensure that you don’t get denied what’s rightfully yours in your workers’ compensation case.

1. Get the Names of Witnesses

If you’re in a state to write anything after your injury, it’s advisable to note down all the witnesses who may be present at the time. This will help you pursue your case successfully in case any issues arise. These issues include having to prove that you got injured while at work and not somewhere else. Clearly, this can make a big difference to the outcome of your case because an injury that typically qualifies for worker’s compensation is one that occurs during the scope and course of employment. These injuries could be cumulative trauma or a single event, something that will be detailed in your medical report.

2. Report Your Injury As Soon As Possible

The laws for workers’ compensation require that any work-related injury be reported within a short period of 30 days or fewer when possible. While you may not be legally barred from getting compensation due to failing to report your injury immediately, your claim may be delayed as a result. For this reason, make sure to immediately report any injury you suffer at work to your immediate supervisor, especially if you feel like it may cause you to miss work.

3. Seek Medical Treatment

If you suffer an injury while at work, seek medical treatment immediately. This is because if you delay or don’t go to the doctor after an injury, it may be assumed that you weren’t injured enough to deserve any compensation. If you’re able to take yourself to the emergency room, go immediately or request to be taken if you’re unable to do so. Once you undergo treatment, you will be able to deal effectively with the rest of the procedure.

4. Fill Report Forms Accurately

When you receive your accident report or insurance form, make sure that you fill it out as accurately as possible. If you’re not in a state to do so when it’s presented to you, request to fill it out at a later date. This is important in order for you to make sure that you can concentrate on the task and do it well without omitting any important details and being as clear as possible.

Note down any time and similar information as well as you can remember it, and make sure to be consistent in what you write and what you say to the relevant parties by ensuring to remain truthful. You may be able to get your compensation fast enough to carry on with other activities in your life, such as paying your mortgage.

With the average sales price for condos in existing buildings standing at $1.9 million in the third quarter of 2017, for example, you may have responsibilities that need to be death with without delay. It will be in your best interest to have the case proceed fast and favorably.

5. Talk to a Lawyer

Finally, if you feel like any of the steps in your workers’ compensation case may be complicated or cause issues, you can always talk to a workers compensation attorney. With 87% of consumers, according to recent estimates, reading online reviews for local businesses in 2020, which was an increase of 81% since 2019, you can look for a lawyer online. Go for a lawyer with a proven track record and experience in this field so you can be sure of a fast and successful exercise.

These tips should make it possible for you to get a positive outcome from your workers’ compensation case, so follow them as closely as possible.

How Does Past Crime Affect Your Insurance Rates?

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If you want to drive anywhere in the United States, you need insurance. Insurance is a fact of life. You need proof of insurance to drive, you need health insurance, you need life insurance. The list of reasons why you may find you are on a search for insurance is extensive. The search for auto insurance is one of the most searched for items. If you have a felony conviction, you may find that conviction is affecting your insurance rates.

The Cost of a Criminal Record

Most people know that a criminal record can have some serious repercussions. It can affect where you are able to rent an apartment. A criminal record can affect your ability to get a job. A little-known fact is that a criminal record can affect your auto insurance rates. Unfortunately, it is not only felony convictions that will affect your auto insurance rate. A misdemeanor conviction can also affect your rates.

However, not every conviction will affect how much you pay for auto insurance. The type of crime you were convicted of plays a bigger role in whether you can expect to pay more than whether it is a felony conviction or a misdemeanor conviction. In any case, crime truly does not pay when it comes to how much you are going to pay to keep your car legally on the road.

Big Influence On Your Rates Includes These Convictions

At the top of the list of convictions that are going to raise your rates is a DUI conviction. Driving Under the Influence or Driving While Intoxicated convictions make you a high risk to an insurance company, and because of that risk, you are going to have to pay higher rates for a while. However, even in the case of a DUI conviction, the circumstances of the arrest will play a role in exactly how high those rates climb.

If you are pulled for a DUI on the open road after smashing into a few mailboxes and causing property damage, the charge is different from when you are stopped at a DUI checkpoint. About 25% of DUI arrests in California happened in LA County, and many of those arrests were at checkpoints. Being stopped at a checkpoint means that there are no “aggravating” factors.

Underwriters may look more favorably on you if there were no aggravating factors. About 110,400 underwriters in 2018 worked directly with insurance carriers (about 42% overall) to write policies. They are the people that make decisions about your rates.

Less Impactful but Still Has An Effect

There are some misdemeanor convictions that will drive your rates up, including reckless driving, speeding, and fraud. The underwriters will look at the complete picture when they are making decisions about what type of risk you are and then adjust the rates accordingly. There are a lot of convictions that can affect how much you will pay.

There is Hope

It is not all bad news. Insurance rates can vary widely, even with a conviction on your record. You may have to dig a little deeper to find a plan that will fit into your budget, but it is possible to find a plan that will provide you with coverage and stay within the high-end of your budget. It is easy to get your research done online before you make an appointment with an insurance agent. On average, about 48% of people will research for two weeks before they make an appointment.

Another good piece of news is the further away you get from that conviction the lower your rates will go. Time can play a big factor in taking some of the heat off, as long as you do not get into the type of trouble that will affect your rates. Once you have paid your dues and some time has passed, giving you an opportunity to prove yourself, your rates will go way down.

It can be a hassle for a little while to have to pay top dollar to be insured but as time moves forward your rates will come down. You do want to be sure that you search for the right plan as your new plan is getting ready to expire. You may be surprised how much you can save after a year of paying for a policy without having any incidents.

Finance Lessons Learned from the Pandemic

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The Covid-19 pandemic changed life for two years and there are definitely still elements of what life was in the world today. No doubt there were some terrible things that happened. People lost their lives and their jobs. But there were also positives that came out of it. We’re going to highlight the lesson we can learn from this pandemic, particularly some personal finance lessons we can learn.

Working from home

This new type of work does not apply to everyone and I don’t like leaving people out, but this needs to be talked about. Working from home and articles about it took over during the pandemic and continue to be discussed.

Working from home, at least from some of those articles and studies, appears to be a net positive for employees and employers. Let time commuting, less overhead costs, more productivity thanks to no commute, increased job satisfaction, and improved work-life balance.

Thanks to the work-from-home setup, people who were able to do that moved out of the city or rented an Airbnb for an extended amount of time. In either case, those people were, likely, able to reduce their housing costs by moving to the suburbs or giving themself a little vacation/change of scenery.

Savings rate

A lot of people saved money during the pandemic thanks to stimulus payments. In April of 2020, the personal savings rate for Americans was 33%. In March of 2021, the personal savings rate for Americans was 26.6%.

The savings rate has fallen since then but is still above 12% which is higher than it was before the pandemic (less than 10%).

Stimulus payments

According to the National Bureau of Economic Research (NBER), most Americans either saved or paid down debt with the majority of their stimulus payments. 40% of the stimulus payment was spent, 30% was saved and another 30% was used to pay down debt.

Personal finance lessons

I think there were a lot of personal finance lessons that can be learned from the pandemic. Here’s a list of them below:

People saved more money

The future was very uncertain so people were more conservative with their spending and less conservative with their savings. That mindset shouldn’t change. The future, in principle, is uncertain. We do not know what tomorrow holds, so saving for a rainy day/goals/retirement is very important.

You don’t need to spend money to have fun

At the very beginning of the pandemic, you couldn’t go anywhere. Quarantine and lockdown orders came in right away. Instead of getting together in person, people utilized Facetime, phone calls, and Zoom. I, personally, had group Zooms with family members where we played and had conversations like we would if we were in person.

Diversification is important

Early in the pandemic, the market tanked. We lost over 30% in six weeks. Granted, it came right back up not long after, but that might not always be the case. If you don’t have time to ride out the ebbs and flows of the market, it’s important you get your asset allocation right. Talk with your adviser to make sure your investment matches your time horizon and risk tolerance.

Get rid of debt

You never know when your job and your ability to earn can be taken from you. Some people lost their jobs, some people were furloughed, and some people just weren’t able to go to work. If you don’t have an income, the only other part of the balance sheet you can affect is your expenses. Get rid of your debt. That’ll help you reduce your expenses in case that happens (you can also save more).

Protect your loved ones

Get life insurance. A lot of people passed away during the pandemic. If you contribute income to your household, you need to make sure you financially protect the people that rely on your income.

Related reading:

5 Personal Finance Tips from the Pandemic

How to Regain Control of Your Finances Amid the Pandemic

How to Save Money on Your Post Pandemic Vacation

Disclaimer:

**Securities offered through Securities America, Inc., Member FINRA/SIPC. Advisory services offered through Securities America Advisors, Inc. Securities America and its representatives do not provide tax or legal advice; therefore, it is important to coordinate with your tax or legal advisor regarding your specific situation. Please see the website for full disclosures: www.crgfinancialservices.com

Applying for a Mortgage

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applying-for-a-mortgage

There’s always talk about home-buying and mortgages, but with interest rates being at all-time lows over the past few years, I feel like the talk about those things have picked up. Not only that, interest rates are likely going up this year so people are trying to get in before it’s too late. In this post, I want to talk about mortgages, how they work, and what happens when applying for a mortgage.

What’s a mortgage?

A mortgage is a loan you get from the bank or another lender to buy a house. When you submit an offer to buy a house, you’ll apply for a mortgage, and it’s a very involved process. More on that later.

In a mortgage, you’ll have options for what your term is. Your typical options are 15-year, 20-year, and 30-year.

You’ll also have to make a down payment. Current trends show that a lower down payment is pretty common. Depending on the type of loan, you can put down 3+%. And how much you put down matters. If you put down less than 20%, you’ll have to pay Primary Mortgage Insurance (PMI).

Here are the pieces of your typical mortgage payment – principal, interest, taxes and insurance, and PMI (if applicable). Taxes and insurance are commonly put in an escrow account and paid when they’re due by the lender.

Mortgage application process

From application to closing, it’s about 45-60 days. During that period, you’ll go through underwriting. In underwriting, they’ll have you submit documentation to confirm your credit report, annual income, current assets and liabilities, employment information, prior tax returns, among other things.

After you’ve cleared underwriting and they’ve confirmed everything, you’ll head to closing. At closing, you’ll sign a lot of papers. You’ll likely need to bring your checkbook with you as well.

There are closing costs associated with your mortgage. Some of these can be added to your total mortgage and some of them need to be paid. Closing costs are normally 3%-6% of the total mortgage and can include real estate commissions, taxes, insurance premiums, title fees, and record filing fees.

And if you’re buying, you’ll also need to write a check for the down payment.

Who gets a mortgage?

There is a slough of factors you need to meet when applying for a mortgage. Credit score matters. Usually, you’ll need at least a 620 credit score (all else being equal) to get a mortgage. Though the better the credit score, the better interest rate you’ll get.

The debt to income ratio needs to be under 50%. The lower the debt to income ratio (all else being equal) the more you can afford. If you have a 45% debt to income ratio and can afford a $250,000 mortgage, you’d probably be able to afford a $300,000 if your debt to income ratio is 25% (this is just an example, I didn’t do the math on this).

Condition of the home. With an FHA mortgage, they are a little pickier on the condition of your home. Usually, it’s just the outside of the home they’re picky with. Chipped paint is a typical thing they take issue with, so just be aware of that.

Applying for a mortgage is necessary for most people so it’s important you understand how they work.

Related reading:

Understanding 15-Year vs. 30-Year Mortgages in the USA

What to do when you’re one month behind on your mortgage

Why Financial Literacy is Important

Disclaimer:

**Securities offered through Securities America, Inc., Member FINRA/SIPC. Advisory services offered through Securities America Advisors, Inc. Securities America and its representatives do not provide tax or legal advice; therefore, it is important to coordinate with your tax or legal advisor regarding your specific situation. Please see the website for full disclosures: www.crgfinancialservices.com

Here Are The Pros and Cons of Using Bestow

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pros and cons of using Bestow

When you’re looking for term life insurance, the number of options that are available is often overwhelming. However, if you’re looking for a company that doesn’t require medical exams and can provide you with fast coverage, Bestow might be your perfect match. If you are wondering whether Bestow is the best option for you, here’s what you need to know about the company, as well as a look at the pros and cons of using Bestow.

What Is Bestow?

Bestow is a term life insurance policy portal that uses a streamlined online application and algorithm-supported calculations to determine if a partner insurer can extend you coverage. It’s important to note that Bestow currently acts only as an agent or broker, so any coverage you get isn’t technically from Bestow. The company does have plans to become a fully licensed insurer, though it isn’t clear when that’ll occur.

At Bestow, speed and convenience are both priorities, something that may appeal to many prospective customers. However, as with all companies, there can be some drawbacks to going this route.

The Pros of Using Bestow

The main pros of using Bestow are speed and convenience. The application process only takes a few minutes and, since a medical exam is never a requirement, you can wrap everything up in no time. Plus, everything is online, so you can get it all done from the comfort of home.

Another benefit of Bestow is that your coverage – should you decide to purchase it – begins right away. There aren’t any waiting periods or setup delays, giving you immediate peace of mind.

Bestow doesn’t work on commission, so you don’t have to worry about being pressured into a plan that isn’t a good fit. Instead, you’ll get options that are selected for your situation, not the amount of money they generate for the company.

Finally, Bestow works with an A+ rated carrier. While there is a higher rating companies can get (A++), A+ is still incredibly reliable, which can make you feel more confident about moving forward with a longer policy if that’s what you’re after.

The Cons of Using Bestow

As with all term life insurance options, there are some drawbacks to using Bestow. One of the biggest is that coverage is only available up to $1.5 million. While that may sound like a lot, other places do offer policy options far above that mark.

Additionally, Bestow only supports term life insurance. If you’re looking for another kind of coverage, Bestow isn’t designed to meet your needs.

Even if you’re looking for term life, not everyone qualifies for coverage either. While there isn’t a medical exam, you do have to supply some details about your health history, and certain conditions make you ineligible for coverage.

Age restrictions do limit many people’s options, too. While the company does have term lengths as high as 30 years and can supply coverage to people up to 60 years old, that doesn’t mean everyone age 60 and younger has access to 30-year terms.

Instead, for a 30-year policy, you have to be a woman under the age of 41 or a man under the age of 40 and a non-tobacco user. For tobacco users, the age cutoffs are 31 and 30, respectively. The highest age for a 25-year policy is 45, and 20- and 15-year policies are cut off at 50 and 55, respectively. If you’re above the age of 55, a 10-year term is the most you can get.

When it comes to coverage amounts, Bestow isn’t necessarily the most expensive. However, there are more affordable options available.

Is Bestow the Right Option for You?

Generally speaking, Bestow could be a solid place for term life insurance for many people, particularly younger adults who aren’t tobacco users. However, anyone age 60 and under looking for coverage who doesn’t want a cumbersome application process or medical exams should keep Bestow in mind, too.

In the end, getting a quote from Bestow is completely free. As a result, you can find out what coverage options are available to you specifically, all without having to commit. Then, if there’s a plan that meets your needs, you can finalize the purchase, allowing you to have immediate coverage.

If you’re looking for term life insurance and you need it fast, Bestow could be your answer. You can find affordable plans with ease and get instant coverage upon approval, all from the comfort of your home. Head on over to the Bestow website to learn more today.

Can you think of any other pros and cons of Bestow that people should know about? Have you used Bestow and want to discuss your experience? Share your thoughts in the comments below.

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What Out Of Network Medical Services Mean to Your Financial Health

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Healthcare costs can add up quickly. However, if you’re using out-of-network medical services. The damage to your financial health could be significant. If you are wondering what kind of impacts out-of-network providers can have on your budget. Here’s what you need to know.

What Is an Out-of-Network Medical Provider?

An out-of-network provider is a healthcare facility or medical professional that isn’t affiliated with your health insurance coverage. They aren’t part of your insurer’s medical care network.

Medical networks are groups of doctors, hospitals, and facilities that have a contract with your insurance provider. That contract outlines various details about care. Particularly when it comes to the rates they can charge insured patients.

It’s important to note that out-of-network medical professionals can work for in-network facilities. When that happens, any facility-related charges are bound by the contract. However, services provided by the medical professional are not.

How Using Out-of-Network Medical Providers Costs You Money

When patients use out-of-network medical providers. They end up paying different rates for services than if they used an in-network provider. The out-of-network provider isn’t bound by a contract with your insurer. Thus, allowing them to set their own prices for services.

Insurers may also set separate coverage rates for using in-network and out-of-network doctors. For example, the percentage of the charge that the insurer will cover, copay amounts, and other details may be different. The rates are less favorable if you use out-of-network providers.

In some cases, insurers may not cover any of the costs associated with out-of-network care. When this happens, the patient is responsible for the full bill regardless of whether the insurer handles some of the expense if an in-network provider was used.

Cumulatively, this means that out-of-network medical services cost patients more money. Providers may charge higher prices, and the insurer may cover less of the cost. Anything not handled by your insurance company is your financial responsibility, so you’ll end up with a higher bill by not staying in-network.

How Out-of-Network Medical Services Harm Your Financial Health

Often, healthcare insurance and medical bills are quite costly, even when you use in-network providers. However, if you go out of network, the out-of-pocket costs are even higher. That can put a significant strain on your budget, making it hard to cover your living expenses while you repay the debt.

In the worst-case scenario, the higher costs might actually be unaffordable. If that happens, you may fall behind in repaying your medical bills, causing the account to go into delinquency or leading the provider to send the account to collections. At times, it may become so burdensome that bankruptcy seems like the best option, a choice that can have long-lasting effects on your credit report and score.

Can you think of other ways that out-of-network medical services impact your financial health? Share your thoughts in the comments below.

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Hurricane Season-Here’s What Your Insurance Won’t Cover for Hurricanes

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Homeowners Insurance Won't Cover for Hurricanes

 

Hurricane season is currently well underway. While most people don’t want to think about a hurricane hitting their home.  If you live in certain areas of the country, the possibility certainly exists. That’s why having the right kind of insurance coverage is so critical. Without it, you may not have the proper level of protection if your house ends up in the path of a hurricane. If you are wondering what your homeowners insurance won’t cover for hurricanes. Here’s a breakdown based on insurance type.

What Typical Homeowners Insurance Won’t Cover For Hurricanes

While homeowners insurance can be fairly comprehensive, it does have limits. Certain types of damage are often excluded if you have a traditional homeowners insurance policy.

In many cases, hurricanes aren’t explicitly listed as non-covered events. However, the kinds of damage hurricanes often cause normally are listed as excluded.

For example, water damage caused by storm surges and floods isn’t covered by the vast majority of traditional policies. If you live in a hurricane-prone area, some forms of wind damage might also be excluded. In both of those cases, you may need supplemental policies for flood and wind damage to secure the proper coverage.

Additionally, sewer backups related to a hurricane aren’t usually covered events. In fact, you may have to have both flood insurance and sewer backup coverage to ensure you have all of the protection you need.

Finally, if you incur expenses during an evacuation, such as costs associated with temporary lodging, that isn’t covered by most traditional homeowners insurance policies. However, if you come back to find that your house is now unlivable. You may have some coverage that can offset any temporary housing costs.

Dealing with Hurricane Deductibles

It’s important to note that if you do have a policy that covers hurricane-related damage.  You may be subject to a hurricane deductible. A hurricane deductible is similar to a typical one. Since it outlines the amount you are responsible for paying to address the resulting damage.

However, hurricane deductibles are higher than your typical deductible. Additionally, they only apply under specific circumstances. Usually, a triggering event has to occur. For example, if a hurricane warning is issued by the National Weather Service, that may enable insurers to require hurricane deductibles.

Whether you may be subject to a hurricane deductible depends on where you live. They are only a factor if you reside in one of the areas that allow them. Currently, those locations include:

  • Alabama
  • Connecticut
  • Delaware
  • Florida
  • Georgia
  • Hawaii
  • Louisiana
  • Maine
  • Maryland
  • Massachusetts
  • Mississippi
  • New Jersey
  • New York
  • North Carolina
  • Pennsylvania
  • Rhode Island
  • South Carolina
  • Texas
  • Virginia
  • Washington, DC

Additionally, the amount of a hurricane deductible can vary. Typically, it’s based both on state law and the value of your covered property. It could be as little as 1 percent of your home’s value. On the other hand, it could be as high as 10 percent. This depends on applicable laws and what’s in your policy.

Addressing Supplemental Coverage

As mentioned above, certain kinds of hurricane-related damage aren’t usually covered by basic homeowners insurance policies. However, if you have the right supplemental policies or riders. You may have all of the coverage you need.

If you want reasonably comprehensive coverage for all kinds of damage a hurricane can cause. You may need the following extra policies:

  • Flood Insurance
  • Wind Insurance
  • Sewer Backup Insurance

Typically, by adding those three kinds of coverage, you can address most hurricane-related damage. However, as with all insurance policies. You’ll need to review the details to confirm what is and isn’t covered. Even those policies or riders can have exclusions. So you want to read through the policy carefully to make sure you have everything you need.

What Typical Renters Insurance Doesn’t Cover

Renters have a different kind of insurance coverage than homeowners. With a renters insurance policy, there’s never any coverage for the building’s physical structure. That’s because the renter doesn’t own the building.

However, like homeowners insurance policies, renters insurance coverage does have limitations. In most cases, damage caused by floods created by hurricanes isn’t a part of a typical renters insurance policy. Instead, the renter would need a separate flood insurance policy or a rider that addresses that type of water-related damage.

If you have a basic renters policy. Adding flood insurance or an appropriate rider may be enough. However, you’ll want to review the policy details to confirm.

Additionally, it’s important to note that renters aren’t typically subject to hurricane deductibles. As a result, if you owe a deductible. It’s typically the standard one in the policy.

What Vehicle Insurance Doesn’t Cover

Both homeowners and renters insurance policies don’t extend coverage to your vehicle. Regardless of whether the damage is related to a hurricane. As a result, you need a separate auto policy.

Unlike homeowners and renters insurance, comprehensive vehicle policies do provide hurricane-related coverage. With comprehensive coverage, damage that isn’t related to a collision is covered. Which includes damage caused by severe weather.

However, if you only have liability coverage on your vehicle. Damage related to a hurricane isn’t a part of it. In that case, you would have to handle any related expenses yourself.

Can you think of anything your homeowners insurance won’t cover for hurricanes? Share your thoughts in the comments below.

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Every Homeowner Should Have Flood Insurance-Here’s Why!

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every homeowner should have flood insurance

No homeowner imagines being the victim of a natural disaster. A serious flood can be devastating. Floods can damage your home and personal property with surprising speed. However, not having flood insurance can make the entire situation worse. Without the right coverage, your losses may not be covered. If you’re wondering why every homeowner should have flood insurance. Here’s what you need to know.

What Flood Insurance Is and What It Covers

Flood insurance is a type of coverage that is separate from a traditional homeowners insurance policy. Anyone who lives in an area with flood risk can potentially purchase this supplemental policy.

It specifically focuses on flood-related damage caused by natural disasters, as well as other causes. Usually, flood insurance covers damage in specific categories.

First, flood insurance will commonly handle structural damage to your home. This includes the actual building, as well as some related systems, like electrical, plumbing, and HVAC.

Second, flood insurance may cover your personal property. This includes damaged furniture that isn’t salvageable and similar household items, as well as clothing. However, this isn’t always part of the starting flood insurance policy, so you may need to request it be added if you want this protection.

Now, certain high-value items may not be fully covered by base flood insurance. This can include art, antiques, jewelry, firearms, or electronics above a certain value. In those cases, you may need flood insurance riders to add that coverage, just as you do with traditional homeowners policies.

Additionally, it’s important to note that every policy is different. Before you make assumptions about your coverage, review your flood insurance policy carefully. Ask questions about what is and isn’t protected, and request add-ons if needed to provide you with the level of protection you’re after.

Why Homeowners Need Flood Insurance

Typically, flood insurance fills a gap that many homeowners have in the primary policy. While homeowners insurance does cover some types of water damage under the hazard insurance segment of their policy, flooding events usually aren’t classified as the covered kind of hazard. As a result, damage caused by a flood may not be covered, leaving you without financial support to repair your home or replace your personal property.

Essentially, if you don’t have flood insurance, you’ll have to handle all related costs out of pocket. For most homeowners, this simply isn’t feasible. Flood repairs to a structure can be incredibly costly. Similarly, replacing all of your damaged personal belongings could take thousands and thousands of dollars.

It’s also important to note that homeowners with mortgages who live in higher-risk areas may be required by their lender to have flood insurance. This is especially true for anyone who uses government-backed financing sources, as there are federal laws requiring the coverage for properties they finance in high-risk zones. However, other lenders often follow suit, even if there isn’t a legal requirement.

The mandate for flood insurance through a company like this Minneapolis water damage restoration service, is similar to them requiring homeowners insurance in general. It ensures the property is protected should a flood event occur and, since the lender is technically the owner until you pay off the mortgage, they have a vested interest in protecting its value.

How to Find Out if You’re in a High-Risk Flood Area

If you want to see if a property is in a high-risk flood area, the simplest way is to use the Federal Emergency Management Agency (FEMA) Flood Map Service Center. Simply enter your address into the search bar, and the site will display a map that identifies your home’s risk level.

You may be able to turn to other state and local resources as well. State emergency management agencies may have flood maps, for example, so they can be worth checking if you find the FEMA results lacking.

Should Low-Risk Property Owners Skip Flood Insurance?

No, homeowners in low-risk areas shouldn’t skip flood insurance. Even if you live in a low-risk area, going without flood insurance means you aren’t protected should the unexpected occur.

Low-risk doesn’t mean risk-free. Many natural events are unprecedented. But even if they weren’t deemed likely, your base homeowners policy won’t cover the related damage if it is excluded in your policy.

Additionally, risk levels can change over time. An area that wasn’t previously flood-prone can suddenly become so for a variety of reasons. Climate change, land development, and similar shifts can alter water flow through regions, turning areas that previously didn’t experience flooding into moderate or high-risk areas.

Where to Get Flood Insurance

If you need flood insurance, you can call your homeowners insurance company to see if they offer it. Some insurers have flood insurance riders, while others may require a separate policy for that specific kind of coverage.

However, not all insurance companies offer flood insurance. If that’s the case, you may not be able to secure flood insurance through your homeowners policy provider. Instead, you’ll turn to the National Flood Insurance Program, a system run by FEMA, that can help you find a provider that covers homeowners in your area.

Do you think every homeowner should have flood insurance?  Have you decided to risk it and go without flood insurance? Has flood insurance ever saved you from financial hardship? Share your thoughts in the comments below.

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How Much Cash Is Needed to Start a Pawnshop?

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How Much Cash Is Needed to Start a Pawnshop

So you want to start a pawnshop. Where do you start? What do you buy? How much is this all going to cost?

A pawn shop can be a very cash-positive business. While doing research for this post, I stumbled onto a Quora thread that showcased how much money can be made with such an operation. The profits ranged from $30,000 per year to $60,000 per month.

But, you have to get started. In today’s post, we’ll highlight what you need and what it’s going to cost.

What do pawn shops do?

First off, we have to talk about what a pawnshop actually does. Pawnshops buy, sell, and trade items. These items can come from the owner’s personal collection, something they acquired via purchase, or something they acquired via loan collateral.

When someone comes to a pawn shop to borrow money, they have to bring something of value for collateral. When the pawnshop lends money to this individual, they retain that valuable item until the principal (plus interest) is repaid. If they fail to repay, the pawnshop keeps the item.

Legal and location

There are many things you need to obtain when you start a pawn shop.

You need to take care of the legal requirements first. This includes licenses, articles of incorporation for your business entity, and permits.

Licenses include a pawnbroker’s license, precious metal dealer license, secondhand dealer license, and Federal Firearms License (if you plan on selling firearms) from the ATF.

The next thing you need is space. Where you set up shop is an important decision. The right location can bring in a lot of traffic and improve your earning potential. However, the right location comes at a cost.

Areas with high foot traffic cost more. Often, pawnshops will choose a space that’s close to a popular area, far enough away that it’s not too expensive, but close enough to make it convenient for the consumer.

Assets

There’s a minimum asset requirement needed to open. That number depends on the municipality, state, and country you plan on setting up shop in. For example, Texas has a $150,000 minimum requirement.

What do you need?

After you have all of the proper licenses and permits and pick where you’ll operate, you need to buy things to be operational.

These items include a computer (computer system/network), cash register, signs, equipment to display your products, record keeping, insurance, lockable cases, and a state-of-the-art security system.

What you’ll also need is an adequate amount of capital to purchase more inventory and lend money to consumers.

What’s going to cost

Depending on the size of your pawnshop and the anticipated foot traffic, your start-up costs will vary. If you’re a larger shop with a high probability of having a lot of visitors/customers, your starting capital could be between $50,000 and $75,000. A smaller shop with lower projected traffic can get by with $15,000.

Last bit of advice

When you start a pawnshop, you need to refine and learn some new skills. You have to educate yourself on how to assess the value of goods so you can acquire sellable items, but not at a cost that eats into your profit margin.

Also, you have to come up with a business plan. What interest rate will you charge on your loans? How much will you mark up the items you sell? How much are you willing to pay for inventory?

All of these questions need answers. Keep in mind, that this planning process should take place prior to buying the necessary licenses and other items to get the business started.

Related reading:

3 Ways to Get Financing for your Small Business

4 Ways to Use Business Loans

Some Often Overlooked Tax Deductions for Business Owners

Business Retirement Plan Guide

 

**Securities offered through Securities America, Inc., Member FINRA/SIPC. Advisory services offered through Securities America Advisors, Inc. Securities America and its representatives do not provide tax or legal advice; therefore, it is important to coordinate with your tax or legal advisor regarding your specific situation. Please see the website for full disclosures: www.crgfinancialservices.com