By Ralph Dibugnara December 12, 2024 Boomers Have a New Retirement Problem Published Dec 09, 2024 By Aliss Higham Baby boomers have benefited from skyrocketing house prices over recent decades, with millions of homeowners born before 1964 watching their equity rise over recent decades. But now, thanks to a glut of unfavorable conditions in the U.S. housing market, boomers face a new retirement problem: affordable and accessible homes in which to age. As a result, boomers are now "aging in place" in their current homes—a trend likely to induce a knock-on effect for younger generations. According to a recent study conducted by Redfin, 78 percent of all boomers plan to stay in their current home for retirement. Another 2022 report from Redfin found that empty-nest boomers take up 28.2 percent of all "large homes"—three bedrooms or more—compared to 14.2 percent of millennials, who are much more likely to have their children still living at home. While data isn't available indicating how much this has changed over recent years, the tradition of downsizing into smaller homes designed with retirement in mind is becoming a distant, if not completely unlikely, prospect for America's aging boomer population. While some may not want to move on from a house they've lived in for years on end, retrofitting existing homes for the sake of accessibility is a costly endeavor, particularly for older Americans living on fixed incomes. "Baby Boomers are increasingly choosing to 'age in place,' meaning they remain in their homes longer instead of selling to downsize or relocate," New York City real estate broker Alexandra Gupta told Newsweek. "This trend is contributing directly to the housing shortage, as millions of homes that would otherwise be available to younger buyers remain occupied." A composite image created by "Newsweek" is shown. Boomers are aging in place, triggering a knock-on effect for other generations. Photo-illustration by Newsweek Shortage of Accessible Homes A lack of accessible homes required for some as they age are scarce—and a slowdown in new homes being built is a major factor. According to a report by CNBC in 2023, less than 5 percent of the U.S. housing supply is accessible. But the problem is not just restricted to accessible homes. U.S. housing inventory and the speed at which new homes are being built have still not recovered to the levels seen before the 2008 financial crash. In January 2006, some 2.2 million new units were started. That dropped to just 490,000 in January 2009. In October 2024, 1.3 million units have been started—still nearly 1 million shy of the 2006 level. The lack of homes for sale is a significant factor in today's high housing prices, which Ralph DiBugnara, founder and president of Home Qualified, told Newsweek is a key reason why boomers want to stay put, despite their homes likely being worth considerably more than when they bought them. "The biggest problem I see facing homeowners today is they are equity rich, cash poor and without as many options to fix it because of high interest rates and high home prices," he told Newsweek. "Baby Boomers are at a stage where they want to move or downsize but cannot because of the lack of homes for sale which has driven up prices. That combined with the high cost of a new home due to increased interest rates and insurance costs are keeping them locked in homes with equity. This is also a major factor in the inventory shortage problem the market is facing." Making Homes Accessible Fewer stairs, lifts, wider hallways, ramps and other modifications may come to be a necessity for many Americans as they grow older. And with them comes significant cost. While the size and scope of each refitting project is different, according to Thrive Homes, installing a stair lift can cost from $3,500 to $6,000. Concrete ramps can cost up to $500 per foot, and door widening could set you back as much as $2,500. As expensive as they are, home modifications can also be considered unattractive to prospective buyers if the time comes when a move is absolutely necessary, thus potentially pushing down the price of the property. In a 2021 National Association of Home Builders survey of homebuyer attitudes, 56 percent of respondents said they would not buy a home if it had an elevator installed—a necessity for wheelchair users living in multiple-floor properties. But other modifications such as wide hallways and step-free entries were considered desirable by the majority of those surveyed. Knock-on Impacts With boomers choosing to stay in place instead of buying new homes at high prices, younger generations are feeling the effects in an already squeezed housing market. Boomers own the lion's share of U.S. housing, a trend that has broadened since the 2008 financial crash and the ebbing away of their parents in the Silent Generation. It again expanded during the coronavirus pandemic and its aftermath, with Gen X and millennials also widening their share of America's real estate market. "Boomers' control over a large share of the housing market also has a broader economic effect," Gupta said. "Many Boomers hold substantial home equity, which has allowed them to leverage their property for wealth or to secure retirement. Younger generations, however, may struggle to build similar wealth through homeownership. As real estate remains increasingly out of reach for younger buyers, the wealth divide between Boomers and subsequent generations may widen, with homeownership becoming an even more significant driver of financial inequality." The result, Gupta explained, is likely to keep their children—millennials and Gen Z—in the rental market for longer, and could also put some boomers back in rentals if they cannot find an affordable property to buy with the right home modifications. This could have even further ramifications in the cost of renting. "As more Boomers age in place or choose to downsize into more accessible housing options, the rental market may see an uptick in demand for senior-friendly housing," she said. "Millennials and Gen Z, who are already delaying homeownership due to rising prices, may increasingly turn to rentals for longer periods. This could lead to rising rents, especially in desirable metropolitan areas, as younger people delay purchasing homes, further challenging their ability to save for down payments." Solutions in Sight While the federal government has some options on the table to ease housing woes, such as the U.S. Department of Agriculture's Rural Housing Service and special home-buying programs offered by the Department of Housing and Urban Development, Jesse Saginor, associate professor of real estate development in the University of Maryland School of Architecture, Planning and Preservation, said more needs to be done. "One solution is to significantly increase funding, subsidies, tax credits, and/or zoning flexibility to allow for the construction of affordable senior housing so that seniors have somewhere affordable to move, given that many may only live on Social Security and little else," he told Newsweek. "So, that solution focuses on building housing for seniors that is affordable, and, assuming they are willing to move, also attainable. It removes the cost-prohibitive nature of moving to housing given their fixed incomes." But Saginor added that "until we build for all segments of population in terms of income and age, there are bound to be shortages irrespective of mortgage rates and inflation, because the demand for housing tends to be dynamic while the supply of housing is largely static."

By Ralph Dibugnara December , 2024 By Mia Taylor and Michele Petry November 19, 2024 Key takeaways iBuyers are online companies that buy homes directly from the owner, typically in a quick all-cash transaction. Selling to an iBuyer speeds up the home-sale process considerably, making it a good choice if you’re in a rush or need the cash fast. However, they usually offer a much lower price for your home than you might make in a traditional home sale. Homeowners who want to sell quickly and skip the hassle of showings, repairs and wading through a lengthy closing can speed up the process by using an iBuyer. These speedy sale platforms — the “i” stands for instant — are online tech companies that purchase homes from sellers directly, without any third-party involvement (like a lender or a real estate agent). An iBuyer company can make an all-cash offer on your home within 24 hours, or sometimes even faster, and can typically close within two or three weeks. They can often schedule closing dates at your convenience as well. But, if this all sounds too good to be true, be aware that iBuying transactions do come with financial drawbacks. Read on to learn more. What is iBuying? The iBuying approach to selling a house has roots that predate the internet. Years before real estate websites came along, local companies would put up signs around town offering to pay cash for homes — they’d then flip the properties for a higher price, making a tidy profit. Today these companies can be easily found online, following the same general approach: making quick cash offers for homes and reselling them. “The iBuyer is typically a company whose business model is to buy properties from homeowners, do minor, usually cosmetic repairs, and then sell at a profit,” says Rick Sharga, founder and CEO of CJ Patrick Company, a market intelligence firm. “For the home seller, the benefits are speed — the transaction typically happens very quickly once the offer has been accepted — and certainty, as the deal closes immediately, as opposed to putting a property on the local multiple listing service and waiting for offers.” This approach can be very attractive to sellers who need to close a sale quickly, whether for lifestyle or financial reasons. If you need to relocate ASAP for work, inherited an elderly relative’s home and don’t want to keep it, or simply need the cash from the sale as quickly as possible, for example, an iBuyer can be a good choice. Popular iBuyer companies While iBuying grew amid the highly competitive post-pandemic housing market, it has receded since and represents a very small share of the overall real estate market. According to data from CoreLogic, iBuyers accounted for less than 0.5 percent of all home purchases in 2023, buying approximately 1,000 homes per month over the course of the year. In 2021 and 2022, that number ranged as high as 9,000 homes per month. “iBuying represents a pretty minuscule percentage of overall home sales,” says Sharga. Historically, just four companies have accounted for the lion’s share of iBuying business: Opendoor, Offerpad, Redfin and Zillow. Combined, they made up more than 95 percent of iBuyer purchases from 2017 to 2021, according to another CoreLogic study. However, while Opendoor and Offerpad remain two of the biggest players in the industry, Redfin and Zillow have since bowed out of this sector of real estate. Other popular companies offering iBuyer-like services include Clever, HomeLight, Orchard and Knock. How iBuyer companies work The iBuying process itself is very straightforward. In most cases, a seller provides some basic information about their home, or sometimes even just a street address, and within a short period of time, the iBuyer makes an offer — sight unseen. These companies use algorithms to base their valuations on a property. “Then, an iBuyer makes a cash offer, sometimes as quickly as within 24 to 48 hours,” says Jade Lee-Duffy, a San Diego–based Realtor. “This process is meant to streamline buying and selling property, essentially cutting out the middlemen of banks and real estate agents.” The process is indeed streamlined — iBuying transactions close much more quickly than traditional ones do. However, the convenience of this process comes at a price for sellers. Because iBuyers need to make a profit, they typically purchase homes for much less than their estimated market value. “Keep in mind iBuyers are not going to pay premium prices for homes, so the offer will most likely be low,” says Ralph DiBugnara, president of Home Qualified and vice president at mortgage company New American Funding. In addition, while an iBuyer’s offer is made sight unseen, if the seller accepts, the next step is typically an in-person home evaluation. If any unexpected or costly issues are discovered during the in-person visit, that will likely impact the initial offer. “It could cause them to lower the offer, or cancel it,” says DiBugnara. These types of companies can often be picky about what types of homes they’re willing to buy, as well. Since they need to make a profit on each transaction, they are not likely to be interested in homes that need major amounts of work or that don’t meet other specific criteria. iBuyers vs. other homebuying companies If you want to sell your home fast but are unsure whether iBuyers are the best approach, there’s another option: companies that proclaim, “we buy houses.” Similar to iBuyers, these operations will make a quick, all-cash offer for your home and can close the deal very quickly. And also similarly, the offer you’re likely to get could be far less than fair market value. Unlike most iBuyers, though, cash-homebuying companies will typically purchase homes as-is, meaning you won’t need to do any sprucing up or make any repairs at all, even if it’s in very poor condition. This can make them a good option for sellers whose property needs more work than they are willing, or able, to put into it. iBuying pros and cons The iBuying process is different from a traditional home sale in many ways. Here are the main benefits and downsides: Pros More certainty: In addition to closing more quickly than a typical transaction, which involves real estate agents and lenders and scheduling hassles, there are fewer uncertainties associated with iBuying. “There are [less] little headaches from a seller’s standpoint: no showings, no open houses and fewer potential contingencies to deal with,” says Bill Gassett, a RE/MAX Realtor and owner of Massachusetts-based Maximum Real Estate Exposure. No financing: Selling to an iBuying company means an all-cash deal that is not contingent on a buyer successfully securing financing. This eliminates the waiting time of the underwriting process, as well as the possibility that the loan won’t be approved. Greater efficiency: In these transactions, sellers deal directly with just the one company throughout, rather than a succession of mortgage lenders, real estate agents and others. Most importantly, the speed with which the deal goes through means the seller gets their money that much faster. Cons Lower profit: The flipside, however, is that a seller will net less money when working with an iBuyer than they likely would if selling the traditional way. In addition to the lower offer price, you could get hit with fees that can add up to the same amount you would have paid in real estate commissions, or even more: iBuyers can charge fees that amount to 6 to 8 percent of the home’s purchase price, says Gassett. You may still have to pay closing costs as well. More selectiveness: iBuyers don’t operate everywhere, so depending on your location, selling to one may not be an option. And even if an iBuying company does buy homes in your area, your home may not qualify — they tend to have very specific, and sometimes narrow, criteria for what types of properties they are looking for. Less personal attention: In iBuying, much of the process is done online with very little human contact. Sellers typically get less personal service or one-on-one attention than they would with a traditional sale, in which a real estate agent spends time consulting with and advising the homeowner over the entire course of the sale process. Is selling my house to an iBuyer worth it? Selling your home this way may be worth it if you have to relocate quickly, need the money fast, or don’t want to deal with the hassle of showings and a lengthy closing process. Selling to iBuyers also does away with any uncertainties about when your home will sell, and because they pay in cash, you don’t need to worry about a buyer’s financing potentially falling through. However, if your main goal is to earn top dollar for your property, iBuyers are not the best choice. If getting the best possible price for your home sale is more important to you than speed or convenience, the best option is selling the traditional way, with the help of a real estate agent who knows your local market well.

By Ralph Dibugnara November 14, 2024 By Homes.com Buying down your interest rate involves paying an upfront fee to your lender to reduce the interest rate on your loan. The key advantages of a buydown are that it increases your purchase power and reduces your total cost over the life of the loan. However, you must consider your long-term goals and if the expense is worth the cost. How Does Buying Down Your Rate Work? When you apply for a mortgage, you’ll be offered an interest rate that’s influenced by factors like market conditions, your credit score and the mortgage type. If you want to lower your rate, you can buy it down by paying a one-time fee at closing in exchange for a rate cut. “Buying an interest rate down is also known as paying discount points,” says Ralph DiBugnara, a mortgage banker and president of Home Qualified in New York City. “This is a way to get a lower interest rate upfront and it will give the applicant a lower rate than market rate or that they qualify for.” Understanding Points: The Cost of Buying Down When you buy down the interest rate on a mortgage, you’re buying mortgage points, which are also referred to as discount points. Points are essentially prepaid interest that can be purchased at closing to lower your mortgage interest rate for the life of the loan. One point, or 1% of the loan amount, typically reduces the interest rate by about 0.25%. How Much Will I Save If I Buy One Mortgage Point? “On a $500,000 loan amount, a 1% point discount buydown will cost $5,000,” explains DiBugnara. “And as an example, if this reduced the interest rate from 6.75% to 6.5%, the principal and interest mortgage payment would be reduced from $3,242.99 to $3,160.34.” That represents a savings of roughly $83 per month, which is about $992 per year and $29,754 over the course of a 30-year mortgage. If you buy down a mortgage with these terms, you will recoup the upfront cost of purchasing a discount point in a little more than five years. Lender Credits vs. Mortgage Points Some mortgage lenders may offer lender credits, which represent cash paid by the lender to cover some of your out-of-pocket closing expenses. However, lender credits will increase your monthly payments while buydowns will reduce them. You’ll typically be locked into a higher interest rate with a lender credit. Does Buying Down Make Sense with Current Mortgage Rates? Mortgage rates have made buying a home more challenging in recent years. Amid the current market, rates are ticking upward once again. The average interest rate for a 30-year conventional mortgage is currently 6.9%, while 10-year fixed-rate mortgages are offered at around 6.17%. There’s a similar trend with adjustable-rate mortgages (ARMs), where the average rate is currently 6.18%. For context, the average rate for a 30-year conventional loan in January 2021 was 2.65%. When combined with record-high home prices, some prospective homebuyers find that these interest rates have potentially priced them out of the market. Moreover, many homebuyers seek ways to make their monthly mortgage payments more affordable. The advantage of buying down your mortgage rate is that you can potentially reduce the total cost of your home over the life of the loan. What Is a 3-2-1 Buydown Mortgage? A 3-2-1 buydown mortgage is a home loan where the borrower receives a lower interest rate over the first three years. The interest rate is cut by 3% in the first year, 2% in the second year and 1% in the third year. After the buydown period ends, the borrower pays the full interest rate for the remainder of the loan. This type of mortgage is different from the process of buying down your rate. A lender, homebuilder, or seller typically covers the cost of a 3-2-1 buydown to make a home more affordable to potential buyers. How Much Should I Buy Down My Interest Rate? The decision to buy down your rate will depend on several factors, including your down payment and closing costs, the purchase price of the home, the interest rate you qualify for, and how long you plan to keep the home. Long and Short-Term Benefits There are two benefits to buying down your interest rate. The short-term benefit is an increase in buying power, and the long-term benefit is paying less interest over the life of the loan. Short-Term Benefits A reduced rate lowers the cost of monthly mortgage payments, which can make it easier to qualify for a home loan. A buydown can also help you qualify for a larger mortgage, allowing you to buy a more expensive home. Long-Term Benefits Over the long term, a mortgage buydown means you’ll spend far less on interest. “The long-term savings from a lower interest rate can be substantial,” says Carl Holman of A&D Mortgage. “Even a small reduction, like 0.25%, can result in thousands of dollars in interest savings over the life of the loan. For example, on a $300,000 loan with a 30-year term, lowering the interest rate from 6% to 5.75% could save you over $15,000 in interest payments.” A lower interest rate also has another benefit: It allows you to build equity in your home more rapidly than you would with higher interest payments. “Lowering your interest rate means that more of your monthly payment will go toward the principal balance you owe. This will build your equity more quickly,” says Rose Krieger, a home loan specialist for Churchill Mortgage, a national mortgage lender. Determining the Break-Even Point Another important factor to consider when buying down your mortgage rate is the “break-even” point for the money you’re spending to secure a lower rate. In other words, how long will it take for you to recoup the expense associated with the buydown? “The break-even point is when the amount you save on your monthly mortgage payments equals the upfront cost of buying down the rate,” explains Holman. For example, if it costs you $4,000 to buy down the rate and you save $50 a month on your mortgage, your break-even point would be 80 months into the mortgage, or just over six and a half years. If you stay in the home longer than the break-even point, the money saved will outweigh the upfront cost you paid to buy down your mortgage rate. The Opportunity Cost of Buying Down Buying down a mortgage interest rate can be costly. Before spending a large sum of money, it’s important to consider the expense in light of your overall financial plans and goals. You should determine if a reduced interest rate is the best use of your free cash. “The funds used to buy points could instead be invested elsewhere, like in retirement savings or paying down higher-interest debt,” says Holman. “It’s important to weigh the potential returns from those other uses against the long-term savings from buying down your mortgage rate. Sometimes, those other goals might offer a better return on your investment.” Additionally, it’s wise to speak with a lender to determine if there is a better way to use the money as part of your home purchase. For example, using the funds to provide a more substantial down payment could have a bigger financial benefit. “Putting a larger down payment on the home may reduce the mortgage interest rate anyway and depending on the amount, it may eliminate the requirement for mortgage insurance, which would in turn, lower your overall monthly payment,” says Krieger. When to Buy Down Points There are indeed times when buying down mortgage points can be beneficial. A mortgage buydown is generally worth it if you plan to stay in the home for a long time since a lower interest rate means you’ll recoup the upfront cost. If you plan to sell in a few years or refinance to obtain a lower interest rate, a mortgage buydown is much less likely to pay off. It’s also important to ensure that you have sufficient cash reserves to handle emergencies as a homeowner before depleting savings in pursuit of a lower interest rate. Review your financial picture and establish a firm understanding of your cash flow, savings and homeownership goals. If you have questions about the best approach, consult a mortgage professional for personalized advice. Is it Worth it to Buy Down Your Rate? Buying down the interest rate on a mortgage can reduce monthly mortgage payments and allow you to qualify for a larger mortgage. However, you should weigh the expense against your long-term goals before spending the money to bring your rate down a quarter-point or more.

By Ralph Dibugnara November 7, 2024 By Brian OConnell Home insurance seems to be a low priority for new homeowners, but adopting that mindset could be a serious mistake. Why? Because of costs related to home insurance and the reasons homeowners need insurance in the first place. You're going to want to protect yourself and your assets. Do you think you need home insurance? If so, you're going to want to evaluate your personal finances and determine how to budget for home insurance payments. Before you get out your wallet, here's what you need to know. How much does home insurance cost? Price-wise, new home buyers can expect to tack on $1,200 to the cost of a new home, in the form of proper home insurance. That cost, however, depends on several key factors including: Age and price of the home Amount of cash put down via a down payment State or municipality where the home is located Since real estate is primarily about location, where you buy your new home largely dictates how deeply you’ll have to dig in your pocket for home insurance payments. For example, homeowners in Louisiana face the highest home insurance rates in the U.S., at $1,958 (on average) per year. Compare that to $677 in Oregon or $692 in Utah. RECORD-LOW MORTGAGE RATES WON'T LAST — REFINANCE BEFORE IT'S TOO LATE What does a typical homeowners policy cover? No matter where you live home insurance shares some basic commonalities. "Good home insurance policies will mainly cover two types of liabilities - loss of personal property as well as liability for any other damages," said Ralph DiBugnara, president at Home Qualified, a digital platform for home buyers, sellers, and investors. "Yet every carrier has some common standards as well as items and scenarios that they deem to be high risk or low risk." That’s why it’s important a shopper should get at least three quotes because costs and coverages will vary from carrier to carrier. The idea is for shoppers to compare different rates from different companies, and the best way to accomplish that is by going online. To get the best home insurance policy at the best price, DiBugnara advised asking – and answering – three key questions before signing on the dotted line: How much insurance coverage do you actually need? What exactly does that coverage protect me from happening? How much of a deductible should I take and still be safe? "Answering these questions correctly can help you avoid major issues in case of disaster or damage to your home," he said. HOW TO FIND THE BEST MORTGAGE RATES AND FASTEST CLOSINGS What type of home insurance coverage do you need? Some home insurance experts say homeowners put too much emphasis on monthly payments and not enough on getting the right coverage. In that scenario, costs escalate in the form of high out-of-pocket expenses when a disaster strikes and the house incurs major damage. "Just like auto insurance, there can be great variance in the cost from one home insurance company to another," said Jeff Zander, founder of Zander Insurance, in Nashville, Tenn. "In many cases, people have paid less attention to their home insurance cost since it is often included in the escrow payment portion of the mortgage." "For most people, a home is their greatest asset, but the bank is only concerned about getting them their money and not about any of their contents, personal property, or liability risks that arise from owning a home," Zander said. Homeowners looking for quality home insurance at a decent price also need to make a distinction between covering select risks or covering all risks. Fortunately, home insurance policies have you covered. "There are really two types of home insurance policies," Zander noted. A "named perils" policy: This lists the perils that are covered. "If the peril is not listed, then it is not covered," he said. An all-risk policy: "This is the most preferred homeowner insurance policy since it lists the exclusions," Zander added. "Basically, if it is not excluded then it is covered. An all-risk policy is a much broader policy form and includes better protection." The takeaway on getting good home insurance for the best price? Think value and not cost. "Don’t cut corners when purchasing home insurance," said Orlando Frasca, an insurance specialist at Rogers Insurance Services in Danville, Cal. "Consumers often look at the lowest price as opposed to what they are getting for that price, only to find out certain coverages they thought they have were not included on the policy."

By Ralph Dibugnara November 7, 2024 By Brian OConnell Home insurance seems to be a low priority for new homeowners, but adopting that mindset could be a serious mistake. Why? Because of costs related to home insurance and the reasons homeowners need insurance in the first place. You're going to want to protect yourself and your assets. Do you think you need home insurance? If so, you're going to want to evaluate your personal finances and determine how to budget for home insurance payments. Before you get out your wallet, here's what you need to know. How much does home insurance cost? Price-wise, new home buyers can expect to tack on $1,200 to the cost of a new home, in the form of proper home insurance. That cost, however, depends on several key factors including: Age and price of the home Amount of cash put down via a down payment State or municipality where the home is located Since real estate is primarily about location, where you buy your new home largely dictates how deeply you’ll have to dig in your pocket for home insurance payments. For example, homeowners in Louisiana face the highest home insurance rates in the U.S., at $1,958 (on average) per year. Compare that to $677 in Oregon or $692 in Utah. RECORD-LOW MORTGAGE RATES WON'T LAST — REFINANCE BEFORE IT'S TOO LATE What does a typical homeowners policy cover? No matter where you live home insurance shares some basic commonalities. "Good home insurance policies will mainly cover two types of liabilities - loss of personal property as well as liability for any other damages," said Ralph DiBugnara, president at Home Qualified, a digital platform for home buyers, sellers, and investors. "Yet every carrier has some common standards as well as items and scenarios that they deem to be high risk or low risk." That’s why it’s important a shopper should get at least three quotes because costs and coverages will vary from carrier to carrier. The idea is for shoppers to compare different rates from different companies, and the best way to accomplish that is by going online. To get the best home insurance policy at the best price, DiBugnara advised asking – and answering – three key questions before signing on the dotted line: How much insurance coverage do you actually need? What exactly does that coverage protect me from happening? How much of a deductible should I take and still be safe? "Answering these questions correctly can help you avoid major issues in case of disaster or damage to your home," he said. HOW TO FIND THE BEST MORTGAGE RATES AND FASTEST CLOSINGS What type of home insurance coverage do you need? Some home insurance experts say homeowners put too much emphasis on monthly payments and not enough on getting the right coverage. In that scenario, costs escalate in the form of high out-of-pocket expenses when a disaster strikes and the house incurs major damage. "Just like auto insurance, there can be great variance in the cost from one home insurance company to another," said Jeff Zander, founder of Zander Insurance, in Nashville, Tenn. "In many cases, people have paid less attention to their home insurance cost since it is often included in the escrow payment portion of the mortgage." "For most people, a home is their greatest asset, but the bank is only concerned about getting them their money and not about any of their contents, personal property, or liability risks that arise from owning a home," Zander said. Homeowners looking for quality home insurance at a decent price also need to make a distinction between covering select risks or covering all risks. Fortunately, home insurance policies have you covered. "There are really two types of home insurance policies," Zander noted. A "named perils" policy: This lists the perils that are covered. "If the peril is not listed, then it is not covered," he said. An all-risk policy: "This is the most preferred homeowner insurance policy since it lists the exclusions," Zander added. "Basically, if it is not excluded then it is covered. An all-risk policy is a much broader policy form and includes better protection." The takeaway on getting good home insurance for the best price? Think value and not cost. "Don’t cut corners when purchasing home insurance," said Orlando Frasca, an insurance specialist at Rogers Insurance Services in Danville, Cal. "Consumers often look at the lowest price as opposed to what they are getting for that price, only to find out certain coverages they thought they have were not included on the policy."