What You May Not Know About Homeowner’s Insurance

Homeowners insurance is an important way to protect one of the largest investments you own. In addition to providing assistance should you need to repair something in your home, it can also protect your financial future. Knowing what to expect when seeking out homeowner’s insurance is an important step in ensuring you are covered if the unplanned happens.

 

Policy types

While homeowner’s insurance is standard in most areas of the United States, there are special considerations depending upon where you live and your specific requirements.

 

• Perils coverage is an important insurance rider that protects against many types of disasters including theft, tornadoes, and fires. If you have named perils coverage, it will define the specific disasters that are covered. Open perils coverage protects both your home structure and personal property, while condo or co-op owners should select a policy that covers the structural parts of the building that they own as well as their belongings.
•  Cash value coverage will pay for or repair property and possessions based on the policy limits minus a deduction for depreciation.
•  Replacement cost coverage will pay to repair or replace your property or possessions based on the policy limits without a depreciation deduction.
•  Guaranteed replacement cost coverage gives homeowners the highest protection on their belongings because it replaces your home to its pre-disaster state even if it costs more than the policy limit.

 

Type of damage

It is important to know that not every type of damage will be covered by your homeowner’s insurance. For example, some policies will only cover something sudden or accidental but will not cover incidents that occur over several months such as water damage from a leaky faucet. Additionally, certain natural disasters might also be exempt if you do not have an additional rider. These might include earthquakes and floods.

 

Personal belonging coverage

It is important to ask if there are any limits on the amount of coverage for your personal belongings. Items of high value may only be covered for a certain amount. Additionally, possessions that are damaged or stolen while you away from your home also may not be covered.

 

At Alaska Management Group and Bonanza Realty, we provide our clients with guidance to make the right decisions about everything related to home buying and home management. Contact our team to learn more about our management services. 

Be Prepared Before the Next Earthquake

One fact of life about living in Alaska is that we have more earthquakes than any other region of the United States. While it is impossible to predict the timing or severity of the next seismic event, it’s a sure thing that major earthquakes will continue to happen here. Take the time now to prepare and protect yourself, your family, and your home. Your future self will thank you.

Practice, Practice, Practice

Just like the fire drills in elementary school, earthquake drills will help you and your family feel more prepared as well as improve your chances of survival. In most instances, you’ll have a better outcome if you practice Drop, Cover, and Hold On. This means that, the moment you feel a tremor, DROP to your hands and knees, COVER your head with your arm or crawl under a sturdy table or desk, and HOLD ON until the shaking ends. Prior to an earthquake, it’s important to identify safe spots in every room, like under desks or sturdy tables. Practice Drop, Cover, and Hold On in all of the rooms of your home, and make sure that your children’s school is holding drills as well. 

Build an Earthquake Kit

Actually, it’s best to build 2 or 3 - one for home, one for your vehicle, and one for your workplace. Your kit should include information on medications, first-aid supplies, a whistle to help rescuers find you, bottled water and snacks, a flashlight, ID cards, cash, a radio with extra batteries, medications, glasses or contact lenses, personal documents (medication list, passport, birth certificate, insurance information, and mortgage or lease information) and a list of family contact numbers. If you have small children, include a favorite toy or game, or other things to keep them occupied and calm during the emergency. 

After the Quake

As soon as the shaking stops, it’s critical to get away from large bodies of water and move to higher ground as soon as it’s safe to do so. Tsunamis can occur almost immediately after an earthquake, so residents will need to stay away from the coast for at least a few days. If you’re trapped underneath debris, use your whistle or cell phone to alert rescuers, or knock loudly every few minutes on something solid. If you are able, check to see if anyone is injured. Offer help or call 911 to report serious injuries immediately. 

Communicate 

If possible, let your family know that you’re safe by registering on the “Safe and Well” site. Text family members to let them know you’re ok, then stay off the phone so that the phone lines are available for first-responders. 

Bonanza Realty has been providing exceptional management services to homeowner associations and planned communities since 1978, the longest running association management company in Anchorage and surrounding areas. Contact us at 907-333-1244 or visit us online at https://www.bonanzarealty.net/

Gain Peace of Mind by Having the Right Condo Insurance

Imagine coming home from work and finding your condo’s front door broken and your new television missing. Once you recover from the shock, you’ll probably think to call your condominium association about replacing the door and lock, but what about your personal property and any damage inside the condo? Typically, the condo association’s policy will cover external areas and, depending on the association, may help with the interior damage. Personal property, however, must be insured by the condo owner. 

Some condominium associations offer coverage  referred to as “all-in”, which covers not only the exterior of the unit, but also some of the things inside the condo, such as carpeting, appliances, and fixtures. Other associations offer coverage for only the exterior, which means that the condo owner is responsible for essentially everything within the unit. It’s critical to know what type of insurance coverage your condo association offers before you speak with your insurance agent. 

Not only will condo owners’ insurance cover loss or damage to your property, it should also cover damages in the event that someone is injured in your condominium. This would include someone slipping and injuring himself on a wet floor, for example, including resulting medical bills and possible legal actions. 

When purchasing a condo policy, first determine the value of your belongings. The best place to start is to make an itemized list of those belongings that would need to be replaced. Keeping serial numbers and photos of items will make things much easier if you ever need to make a claim. Bear in mind that most policies will pay “Actual Cash Value” (or ACV) for your belongings, which means that depreciation is taken into consideration. Replacement cost coverage is also available, typically at a somewhat higher cost. If you have items of very high value, like jewelry or artwork, you may need to purchase additional coverage. Insurance will cover loss or damage to your property for some weather events, with the exception of natural disasters like earthquakes, floods and landslides. If your area is in a zone that is prone to these events, you may need to purchase extra coverage.

Condo ownership is different from traditional home ownership in many ways, including insurance requirements. Your insurance agent can help you select the right policy and give you the peace of mind so that you can enjoy your condo. 

For over 35 years, Alaska Management Group has been meeting the property management needs of associations and planned communities throughout Alaska, including Anchorage, Palmer, Eagle River, Wasilla, and more. To learn more about us, please visit http://www.bonanzarealty.net/ or call (907) 333-1244. 

Water Conservation In and Around Your Property

Each year, we hear about ongoing droughts in various regions of the United States and around the world. Even if you live in an area where water still seems abundant, inefficient water usage can rack up large costs to your household budget as well as to your community. Taking steps to reduce water consumption protects an increasingly scarce resource.

Water conservation in the home

According to Eartheasy, three-fourths of the average American’s indoor water consumption took place in the bathroom, with toilet usage accounting for a large share of the total, at 28%. That’s why it is especially important to check for leaks in bathroom plumbing - one of the most common sources of water waste in the home. A leaky faucet or toilet can waste anywhere between 20-150 gallons of water per day.

• Test your toilet.
• Use food dye to color the water in your tank. Check back within an hour. If you see colored water in the toilet bowl, you have a leak that should be repaired.
• Fix leaky showerheads and faucets.
• Install low-flow shower heads and faucet aerators to reduce the number of gallons per minute. These do not require hiring a plumber, and oftentimes can be done without having to break out the toolbox.
• Only run the dishwasher when full.
• Don’t let the water run while brushing teeth, shaving, or rinsing dishes.

Yard conservation tips

Depending on you water your yard, green-space, or garden, these spaces can account for 60% of a household’s water usage.

• Keeping pools covered when not in use saves hundreds of gallons of water per month from evaporating.
• Consider replacing grass with native plants that need less water.
• Planting more trees, tall plants, and bushes increases shade and reduces the need to water as often.
• Grass cut too short dries out much more quickly and requires more frequent watering.
• Water your lawn only once per week when needed, using a deep soak method in the early morning.

Doing the math: it all adds up  

Maximizing efficient water usage can cut the gallons of water you use by tens or hundreds per day. When a community commits to water efficiency, it can avoid sewage spills that pollute local lakes and streams, as well as ease the burden of your local water infrastructure system. Treating used water takes a good amount of electricity, so when you reduce water waste, you can reduce your community’s electricity usage.

To learn more water usage facts, such as how many gallons it takes to produce a cup of coffee,do laundry, or even fly across the country, see here.

For over 35 years, Alaska Management Group has been meeting the property management needs of associations and planned communities throughout Alaska, including Anchorage, Palmer, Eagle River, Wasilla, and more. To learn more about us, please visit http://www.bonanzarealty.net/ or call (907) 333-1244.

The Neon Pink House on the Block: The Benefits of Homeowners’ Associations (HOAs) vs. Restrictions

“Why can’t I raise goats in my backyard?” “Turn the rooms of my home into an inn?” “Paint neon pink murals on my siding?” Homeowners’ associations (HOAs) can sometimes be viewed by the individual homeowner as stifling expression and creativity. In reality, the main goal of an HOA is to maximize property values and create a positive neighborhood environment based upon shared understanding.

An HOA is a community association that serves the greater interests of a neighborhood and its residents. As such, having an HOA can give a community more political advocacy and power, as well as be a collective force for maintaining stability in resale value, community, and structural integrity. Alaska Management Group has been working with and managing homeowners’ associations in the Anchorage area for decades, and as we say in our mission statement, the goal is to “ensure a safe and comfortable lifestyle while maintaining the value of the community for all residents.”

HOAs will have agreed-upon CC&R’s (covenants, conditions, and restrictions) to meet their goal of maintaining home values, neighborhood amenities, and property stability among their residents. These will usually include:

- Fees and membership dues.

- Ordinances and rules, such as architectural, usage, parking, and noise restrictions.
- Responsibilities of the homeowner and the association.

Although HOA’s will most likely put an added layer of restrictions on the individual homeowner, on top of the local government’s zoning and neighborhood ordinances, an HOA serves the collective interests of its community. HOAs can be a powerful voice for the greater interests of their residents, and allow homeowners to have access to amenities as a group that they would not be able to afford individually. Many homeowners appreciate the added stability and the financial protection of assets that an HOA provides. Finally, HOAs can create an added sense of community and neighborhood identity. For more benefits of an HOA, visit here.   

Alaska Management Group is the longest-running association management company serving communities in Anchorage, as well as surrounding cities such as Palmer, Wasilla, and Eagle River. We provide exceptional management services and association-specific websites that facilitate shared information, communication, and access between residents, Board members, and our team. We provide both full service and financial management as well as Board of Directors consultation services. Let us know if we can assist you in maintaining the value and comfort of your home and association by completing our management request form.  

Hiring A Management Company

When hiring a management company for your condominium, townhouse, or other types of property in a planned unit development like a gated community or subdivision, a number of factors come into play. How big is your property? Are the duties a lot to take on? Do you have people within your elected board of officials who can handle certain aspects, like accounting? Property management companies provide a range of services, most are equipped to handle monthly collection of homeowners association (HOA) dues, fines and fees; management of HOA financials; creation of an annual budget; development of long-term capital improvement/replacement plan; ongoing maintenance; finding and managing contractors; and monthly reporting to the HOA board.

Are you unsure whether your HOA would benefit? Here’s a list of common situations that may make you want to consider hiring a management company:

●      Homeowners don’t have the time or experience necessary to serve on the HOA’s volunteer Board of Directors. Members of the Board should usually have some background in areas like finance, operations, law, vendor management, and conflict resolution.

●      The HOA is responsible for managing complex building systems, amenities, or multiple properties and facilities.

●      The HOA has a significant membership and routine billing, correspondence, enforcement of HOA rules, and management of complaints that is particularly time-consuming.

●      A property management company can leverage its existing relationships to get the HOA discounts on services like insurance or with contractors like lawn maintenance companies.

Hiring a property management company shouldn’t feel like a daunting task. Typically, both the HOA or community board and the management company want the same thing - a healthy working relationship that runs smoothly and leaves everyone happy. It’s important to keep in mind that hiring a management company doesn’t mean you give up any of the power over your property. The board still sets the policies and makes the rules, it’s just the management’s job to enforce them and handle the day-to-day operations of the building or community. As the owner or HOA, you also have the option to set the terms. If there are certain duties you want to stay within the board of directors’ responsibility, you can hash out which tasks you’ll be needing the management company to tackle.

A well-matched management company should understand the HOA’s values and long-term goals, and strive to meet them. At Alaska Management Group, our mission is to continually provide unsurpassed management services to ensure a safe and comfortable lifestyle while maintaining the value of the community for all residents. We provide both full-service and financial management as well as Board of Directors consultation services. Let us know if we can assist you in maintaining the value and comfort of your home and association by completing our management request form here.