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Re-Inspection: The Insurance Loophole

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Loophole may not be the most accurate term to describe a scenario you may happen up during your home buying experience. However, we’ve heard many clients call it that – a loophole offered by the insurance company based on the re-inspection. Here’s what you need to know if you ever wander into this territory.

The scenario you may run into

After getting a home inspection report you find out the house you want to buy did not pass the four point inspection. Now you need time to get the issue(s) fixed while also trying to stick to your closing date. That’s not always easy. In addition, you cannot receive home insurance on a home that does not pass the four point inspection. So, how do you close on the home without the house insurance?

The common solution to the problem

Most home insurance companies will work with you. They want you to close on your home too, keep that in mind. So this is the offer they will make: we will give you home insurance on a 30 day conditional. This means you have 30 days from the day you sign off on your home insurance to have the issue(s) fixed and the home reinspected. As long as the house passes the re-inspection the policy will continue as agreed upon. Seems like a good deal? It can be.

Giving you home insurance based on your re-inspection

There are two potential results of this route. The first is you say yes, you have the issue(s) fixed, and the home passes the re-inspection. The best part is you don’t have to delay your closing. You can close on the home and do whatever needs to be done after. Keep in mind, once you close on the home all issues are now your responsibility. So if you need to have something fixed and it turns out to cost more than you expected, you will be footing the bill. The second potential result is you are not able to make the fixes necessary to keep your policy within the 30 days. You still get to keep your house, but likely the home insurance policy will change and they exclude the issues from your coverage. So in other words, if you need a new roof and you are not able to have it replaced within the 30 days, the insurance company will not cover your roof until it is replaced.

On the upside, it does mean that you are able to close on the home. So that’s a done deal. You also have home insurance for everything else. And you can always renew or change your policy once you’ve made those changes. The most important step is to make sure you have a very thorough home inspection to begin with. Be sure to call Divinity Inspections for your home inspection needs.

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When And How To Landscape Your Home

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Are you ready to make significant improvements to your landscaping? That time of year is quickly approaching. The temperature increases, the sun comes out and your lawn transitions back to the beautiful green color. Many homeowners use this season to make major landscape changes or start a garden. However, there is so much more you should be doing to improve your landscape and the functionality of your home.

Don’t forget to check your gutters

We never seem to remember the gutters until the rain comes down and flooding starts. As it warms up and before the rainy season begins, now is the time to clean out your gutters. Make sure you’ve removed all the leaves that have fallen during winter, any branches or debris and make any repairs that are needed.

Make a landscaping plan first

Now that your gutters are in good shape, it’s time to make a landscaping plan. The blooming flowers might entice you to just buy a bunch of them but you may quickly regret that decision. Before you purchase anything, first plan out your vision. Then, to bring your vision to life, price out the materials you need to create the look. Third, prep your property for the changes. This could mean removing existing plants, trees, etc. or clearing out space. Make your preparations in some cases before you buy anything. Lastly, purchase your landscape materials and plant.

Maintenance will make or break

Your landscape design doesn’t stop with planting. In fact, the hard work comes after you’ve finished making all your changes. Now it is time for the maintenance. Proper maintenance can make or break all the work you’ve just finished. Be sure to check the weather, frequently water ( or not water, depending on your gardens’ needs) and weed as needed.

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What Does Your Home Inspection Report Mean

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Any new first time home buyer who is unfamiliar with the home inspection process will have many questions. Some of the most common questions are about the home inspection report. This is not just about the process but what to do with this long list home inspection details. Here are three things you should absolutely do with your home inspection report.

Use your home inspection report as a negotiation tool

This will not apply to everyone but does apply to most. Very likely you will discover at least one major concern during the home inspection. A concern big enough that you will either want it addressed before you close on the house or you will want to adjust the closing costs to address the problem. Either way, the inspection report is your most important tool in making these negotiations. Your real estate agent will help you navigate these waters, so don’t try to do it on your own. Keep in mind, no matter what the report uncovers you always have the option to back out of the sale or adjust the terms.

Print a copy of your home inspection report

Any good home inspector will tell you the company will keep your inspection report in their records for up to a year. But you would be surprised how quickly a year flies by. Especially when you are busy settling into your new home. As soon as your report is available, print and keep a copy for your records. There will likely come a time when you will need to reference back to the report.

Look at your report after you move into the home

We always tell our clients that their report is like a home to-do list. Some of the findings will need to be addressed immediately. Others you will want to address eventually – so, not quite as pressing but still important. And lastly, some issues you will consider optional. Either you want to address it or you don’t, and either way it’s up to you. No matter what timeline you decide on, make it a point to look at your inspection report within six months after moving into your new home. Most homeowners will completely forget about home inspection findings they deemed important at the time. Use the report to create a home to-do list that you can tackle in your own time.

Divinity Inspection Services takes a slightly different approach to home inspections. Our goal is to educate you on the house you want to purchase in as much detail as possible. Not only do we take the time to complete a thorough inspection of the property, but we also take the time to discuss the inspection with you in detail. This gives you the opportunity to ask for clarification on anything. Be sure you attend the home inspection and be sure you hire the right company.

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5 Homeowner Tax Breaks You Should Be Taking Advantage Of

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2019 comes with some tax reform and specific changes that you and your CPA should be aware of. Regardless, there are specific tax breaks you as a homeowner should be taking advantage. The tax changes did not affect these write-offs, but it is always good to check with your accountant before assuming you can receive a credit for anything.

Interest on home-improvement loans

The IRS considers the interest on a home-improvement loan fully deductible, up to $100K in debt. So if you’ve been holding off on making those home changes, consider using a loan so you can write off the interest. In addition, interest paid on a home equity line of credit (HELOC) is also tax-deductible. However, keep in mind that any home loan that is worth more than the value of the property is not deductible.

Property Tax

You might think all of your property taxes are deductible, and in most cases you would be right. Though, there are some specific things on your settlement document that might look like taxes but aren’t. You cannot deduct your attorney and appraisal fees, title insurance and credit report costs either.

Residential Renewable Energy Tax Credit

If you made efforts to make your home more energy-efficient then you could qualify for the energy-efficiency tax credit. This credit includes solar, wind, geothermal and fuel-cell technology. So, if you installed solar panels, solar-powered water heaters, wind turbines or geothermal heat pumps then you may qualify for this tax credit.

Non-business Energy Property Tax Credit

In addition to the major energy-efficient renovations, you could also qualify for the nonbusiness energy property tax credit. This would include more minor upgrades to the home, such as home insulation, exterior doors, exterior windows or certain roofing materials.

Home improvements for medical purposes

This is an interesting one and many times overlooked. If you made any home improved that were related to a medical necessity then you can deduct the cost of the home improvement under medical expenses. Let me give you two scenarios in which this could be applicable:

A first time homebuyer has to remove all the carpets in their new house because the carpets were so full of pet dander from the previous owners. As a result, the new homeowner was having asthma attacks or trouble breathing. Removing the carpets and replacing them (with whatever they choose) would be deductible under medical expenses if you can provide documentation proving the medical issue.

In another scenario, and elderly woman had an accident and fell in her shower. She broke her hip and would be in recovery for months. Medical recovery prevented her from climbing stairs or climbing into a bathtub. The issue was the only walk-in shower she had was upstairs on the second floor. As a result she had to remodel one of her down stair bathrooms into a walk-in shower. This could be deducted under medical expenses as long as she provided all necessary documentation.

We hope all this information was helpful as you work on your tax return this year. Don’t forget to check everything with your accountant. And don’t forget to hire Divinity Inspection Services for your residential or commercial property inspection needs. 

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Should I Attend My Home Inspection?

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Should I attend my home inspection? This is one of the most common questions we hear. You should definitely attend the home inspection of a home you are wanting to purchase. While you’re there, here are some things you can do and questions you can ask.

What to expect

Home inspections take some time. Three hours on average, all depending on the size of the home. You won’t be following your inspector around so bring something to do while you wait. A good home inspector, like us, will give you some reading materials about home inspections that you might benefit from, which you can read while you wait. In the end, the reason you’re there is to walk through any findings the home inspector will want to explain to you.

Also keep in mind that you’re not alone. By law, a real estate agent must attend the home inspection as well. This is for the safety of the homeowner. Especially since most homeowners don’t choose to stay for the home inspection. They certainly don’t have to stay. While you are with your agent this could be a good time to ask her any questions you have about the home, home inspection, or closing.

Questions to ask

At the very least, you want to speak with the home inspector at the end of the inspection. A good home inspector will walk you through their findings and any concerns that came up in the inspection. These could be small findings or big ones. The important is up to what’s important to you most the time.

If the inspector finds a big issue, such as a flaw in the foundation or mold, this doesn’t automatically mean you can’t buy the home. If anything, you should use this information to renegotiate the deal, assuming you still want to buy the house. This is another reason having your real estate agent with you could be very beneficial.

What to do with the inspection report

The inspection report is certainly worth hanging on to. Not just because you need it for closing, but because it also makes a great to-do-list for the house. Once you have your inspection report you can go back at any time and address the many things that will be on the report. Most of those things are small things but everything would be worth taking the time to do.

Don’t hire a mediocre inspector to take care of your home inspection. Hire Divinity Inspection, a five-star inspection company in Tampa. We go above and beyond not only in our inspection but in our service as well. From the moment you call us to the completed inspection, and everything in between, we will make sure you are happy with our service.