70 West Afton Avenue

Yardley PA 19067

NEWS RELEASE

CONTACT INFORMATION:

Andy Raffle

215.917.3937(Direct)

215.493.9080 x130 (Office)

THE ART OF THE DEAL: TIPS FROM ANDY RAFFLE

ANDY RAFFLE RECOMMENDS ENSURING AGAINST DISASTER

WITH THE PROPER HOMEOWNERS INSURANCE

Yardley, PA – May 15, 2008— Navigating all of the options available for homeowners insurance can be a daunting challenge at first. Yet, as “Mother Nature” reliably makes her appearances across the country year after year, selecting the proper insurance is absolutely critical to protect perhaps the largest purchase one will make over the course of a lifetime. It is a good idea to review your policy annually to ensure you have the best coverage for your geography and your possessions. To help, Andy Raffle of Coldwell Banker Hearthside. Realtors offers the following primer on homeowners insurance.

The Fundamentals: The standard policies should reimburse for basic damages including burglary and destruction to the home caused by fire, smoke, lightning, ice, snow and frozen pipes. In addition, traditional policies often offer liability coverage for medical claims to third parties and legal damages should you be named the defendant in a lawsuit.

Be Prepared for the Worst Case Scenario: It is likely that before agreeing provide you a loan, the lender required you to purchase at least a basic insurance plan. However, homeowners should be prepared for the worst, such as a disaster that could destroy the home. Find out exactly how much it would cost to restore the home from top to bottom, and then contemplate insuring it for that amount.

Although the policy will provide the funds to rebuild the structure, it still needs to be refurbished inside with all new appliances, furnishings, etc. There are two options for replacements: actual cash value and replacement cost. Actual cash value should provide reimbursement for the value of the item, minus depreciation for the length of ownership of the item. Replacement cost, which comes at a pricier premium, should provide reimbursement for the full value of the item at current pricing.

To best prepare for refurbishing the inside, put together a detailed home inventory of all of the items in your home you would want to replace in the event of a tragedy. Include everything, from jewelry to artwork to carpets to computer equipment to tools to sporting equipment, just to name a few. A list with receipts attached is ideal. Also consider doing a photographic or video inventory (date stamp the tape) in which the key information is narrated. Whether you compile a written or visual property catalogue, be sure to include: a description of the item and quantity, brand name, model or serial number, name of the vendor, date of purchase, purchase price, current value and replacement cost. Another tip, keep this documentation in a separate location in case tragedy should strike the home.

Water, Water, Everywhere? According to the National Flood Insurance Program (NFIP), flooding is the most common natural disaster in the U.S., yet it is typically not covered by traditional homeowners insurance policies. However, it is offered by the National Flood Insurance Program (NFIP) for many areas of the country and can be purchased through local agents. In fact, if a property lies in a flood hazard area (determined by the Director of the FEMA have a one percent chance of being hit by a flood in a given area), the borrower will likely be required to purchase flood insurance. If you live in an area prone to flooding, consider purchasing such a policy. It is not wise to rely on federal disaster funds, as these loans must be repaid to the government.

Sometimes floods are brought on by hurricanes. “Katrina” and “Rita” are stark reminders of this possibility and hurricane insurance has become pricier and more difficult to obtain. If you live in a hurricane prone area, shop around for the most comprehensive, and most affordable, policy you can find from a reputable provider.