When the water in your pipes freezes in cold weather, there is a good chance that one or more of your pipes will crack due to the expansion of the liquid water into ice. When the ice inside these cracked pipes melts, it has an annoying tendency to leak all over your house. If this happens under normal circumstances, you can reasonably expect your home insurance provider to pay for any repairs, although you check the exact terms used in your policy documents before making a claim. Similarly, if any of your assets become flood damaged by a leak of this type, your contents insurance provider should, in theory, foot the bill for replacements.
Your water tank counts as part of the building structure itself, so if this should burst due to cold weather conditions, it is the responsibility of whoever owns the building, or more likely their buildings insurance provider, to pay for any necessary repairs. If your property suffers any damage while you are away for a month or more, you will have to have informed your insurer beforehand of your planned absence and have come to an arrangement with them regarding the insurance of the empty property. Otherwise, you may not be covered by the terms of your buildings or contents insurance policy.
Damage that is caused to properties by icy weather is usually covered by most buildings insurance, although if the problem was caused, or at least abetted, by a pre-existing flaw with your property, such as an insecure roof, you may not turn out to be in line for compensation, as it is the responsibility of the owner of a building to keep it wind and water tight. However, what counts for pre-existing damage in a dispute of this type is less than clear, as the ultimate responsibility may lie with the factor of the building you are staying in, or the construction company that built your home. This is why it's important to keep any receipts pertaining to work done on your property by tradesmen or construction firms.
Confusion can creep in when making insurance claims, especially if there is a third party involved, so it pays to have some help from the legal profession. Many insurance firms offer free legal advice as part of a home insurance plan, and even cover some of the legal costs involved with a dispute. For instance, Co op insurance offer a free legal help line to all of their home insurance customers, and offer up to ?50,000 worth of legal expenses insurance for free, as well as a 1/3 discount on the total bill when you take out one of their buildings insurance policies alongside one of their contents insurance products.
Your debts can be secured or unsecured. Secured debts usually are tied to an asset, like your car for a car loan, or your house for a mortgage. If you stop making payments, lenders can repossess your car or foreclose on your house. Unsecured debts are not tied to any asset, and include most credit card debt, bills for medical care, signature loans, and debts for other types of services.
Most automobile financing agreements allow a creditor to repossess your car any time you're in default. No notice is required. If your car is repossessed, you may have to pay the balance due on the loan, as well as towing and storage costs, to get it back. If you can't do this, the creditor may sell the car. If you see default approaching, you may be better off selling the car yourself and paying off the debt: You'll avoid the added costs of repossession and a negative entry on your credit report.
If you fall behind on your mortgage, contact your lender immediately to avoid foreclosure. Most lenders are willing to work with you if they believe you're acting in good faith and the situation is temporary. Some lenders may reduce or suspend your payments for a short time. When you resume regular payments, though, you may have to pay an additional amount toward the past due total. Other lenders may agree to change the terms of the mortgage by extending the repayment period to reduce the monthly debt. Ask whether additional fees would be assessed for these changes, and calculate how much they total in the long term.
If you and your lender cannot work out a plan, contact a housing counseling agency. Some agencies limit their counseling services to homeowners with FHA mortgages, but many offer free help to any homeowner who's having trouble making mortgage payments. Call the local office of the Department of Housing and Urban Development or the housing authority in your state, city, or county for help in finding a legitimate housing counseling agency near you.
You may be able to lower your cost of credit by consolidating your debt through a second mortgage or a home equity line of credit. Remember that these loans require you to put up your home as collateral. If you can't make the payments ? or if your payments are late ? you could lose your home.
What's more, the costs of consolidation loans can add up. In addition to interest on the loans, you may have to pay "points," with one point equal to one percent of the amount you borrow. Still, these loans may provide certain tax advantages that are not available with other kinds of credit.
Both Craig Davies & Lar are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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