Deadline Newsroom: 12/20/2008

Don't 'eat your house' unless it's gingerbread

Holiday News That Really Hits Home: Home improvements, education for the kids and new business financing are relatively better uses of equity and much better gifts than buying under-the-tree presents, holiday parties and unplanned winter wonderland vacations.

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by Broderick Perkins
© 2008 DeadlineNews.Com

Unauthorized use of this story is a copyright violation -- a federal crime.

Deadline Newsroom - Unless it's gingerbread, don't "eat your house" this holiday shopping season.

Taking bites out of your home equity to pay for presents could lead to financial indigestion.

Home equity is the difference between your mortgage balance and the value of your home, not collateral for frivolous expenditures.

Any loan tied to your home's equity is, by nature, an equity-depleting loan. The best use of equity money, the experts say, is for capital improvements and investments that provide an equal or better return on your money than the cost of the loan.

Home improvements, education for the kids and new business financing are relatively better uses of equity and much better gifts, than buying under-the-tree presents, holiday parties and unplanned winter wonderland vacations.

Debt consolidation and emergency nest eggs can be other wise uses, provided those uses don't become habitual.

Saving for the holidays and the season beyond is always a much better financial approach.

Creating a holiday budget plan with a holiday savings-spending account is crucial, not only for the season of joy, but also throughout the year.

• List your monthly living costs, including essentials like house or rent payments, food, clothing, health care costs, transportation to work and utilities. Tally these necessary living expenditures help estimate how much discretionary spending -- if any -- you actually have.

• Prioritize. Shelter -- rented or owned -- is your primary and foremost cost. If extra debt burdens your ability to pay the rent, your mortgage or other necessities, accept that you can't afford the extra burden.

• If you have the discretionary cash, create a gift list that cuts back on gifts for "social" friends and acquaintances. Give a card or be creative and give home made individualized gifts.

• In the spirit of the holidays make donations to housing operations for the needy in honor of your family or friends instead of individual gifts.

It's the thought that counts. Especially the thought of hanging onto your home.

When it comes to home equity, don't leave your home without it by using your home to foot your gift-giving bills.

Like this story? See: Gifts that really hit home
Home safe home for the holidays
Eat, drink, be wary at holiday house parties

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Broderick Perkins, an award-winning consumer journalist, parlayed 30 years of old-school journalism into a digital real estate news service, the San Jose, CA-based DeadlineNews Group -- DeadlineNews.Com, a real estate news and consulting service and Web site and the Deadline Newsroom, DeadlineNews.Com's news back shop. Perkins is also a National Real Estate Examiner. All the news that really hits home from three locations -- that's location, location, location!

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Eat, drink, be wary at holiday house parties

Holiday News That Really Hits Home: Holiday house parties can be hazardous to your financial health and your guests' safety. If you are likely to host a holiday party this year, you probably don't know how risky it can be or if your homeowners insurance policy covers that risk.

by Broderick Perkins
© 2008 DeadlineNews.Com

Unauthorized use of this story is a copyright violation -- a federal crime.

Deadline Newsroom - Eat, drink, but be wary at home during holiday festivities.

Collect car keys at the door, check your insurance policy, skip the oxycontin sales, hire a host, serve no-buzz booze, do whatever it takes to assure that everyone has a good safe time at your holiday house party and that you don't get sued for negligence.

Holiday house parties can be hazardous to your financial health and your guests' safety. A very Brady Christmas or one from hell. If you are likely to host a holiday party this year, you probably don't know how risky it can be or if your homeowners insurance policy covers that risk.

Alexandria, VA-based Independent Insurance Agents and Brokers of America found in a survey of 1,000 party hosts, that more than two thirds of them mistakenly believed they were not liable for alcohol related crimes.

The survey also found that most of those who believed they were not liable were in households with incomes of more than $75,000 a year -- households most likely to host a holiday party. And households with deep pockets ripe for suing.

Party hosts indeed can be liable under local "social host" laws if someone drinks too much and is involved in an auto accident on the way home -- at which time the party is really over.

Nearly three dozen states have laws that hold social alcohol servers liable as a third party to drunken driving crimes and the laws apply. These laws apply to residential party hosts who both own and rent their homes. Holiday parties can range from small family gatherings to larger shindigs and business parties in the boss's home.

The survey also found that 86.8 percent of those surveyed answered "no" or "don't know" when asked whether or not they reviewed their insurance coverage or checked with their agent to ensure they have adequate liability coverage in the event they are sued and found liable for the actions of a guest who drank alcohol at their party. Again, those with household incomes of more than $75,000 overwhelmingly (96 percent) answered "no".

Before you send out holiday party invitations, review both your local social host ordinances and your home insurance policy. Be sure you have sufficient liability coverage in the event you are sued and found liable for the actions of an inebriated guest who had too much wassail with his or her sugar plums.

Here how experts say you can get the party started without decking the halls with boughs of folly.

• Before you send out the invitations, check your homeowners, renters or condo-owners insurance policy and discuss it with your insurance agent. Make sure it specifically provides sufficient personal-liability coverage for events from the negligence of the policy holder.

• If you don't wait for the winter solstice season and party hearty frequently, consider obtaining an umbrella liability policy to supplement your regular coverage at an additional premium cost of several hundred dollars more per year. Make sure there isn't a gap between the existing policy and coverage provided by the home owner's policy. For example, if your home owners insurance limits coverage to $300,000 and your umbrella policy covers costs above $400,000 you would have too make up a $100,000 difference if you file a claim.

• Consider making guests hand over their car keys when they arrive as their ticket fun. They are much more likely to be reasonable about handing over keys before they start partying than they will be after a few good stiff ones. Put the request in the invitation.

• Don't serve alcohol to anyone under the legal age. Your insurance policy likely will not protect you in a suit.

• Don't let guests mix their own drinks. Consider hiring a professional host, caterer or bartender who is better skilled at knowing when to turn off the tap for someone who's had enough to drink. The person you hire should also be insured and you should inquire if your party can be added to me insurance for an extra layer of protection.

• Encourage group activities that focus on fun instead of booze -- spin the bottle beneath the Noble Fir instead of hitting the bottle under the mistletoe.

• Prepare plenty of foods to prevent guests from drinking on empty stomachs but avoid salty or spicy foods which tend to make people thirsty. This is a good time to through out the low-carb diet that's made you pretty cranky anyway.

• Offer a large variety of no-buzz beverages -- juice, soft drinks, sparkling water, tea, etc. Smoothies can be served up with festive edible decorations.

• Cap the tap and stop serving alcohol at least one hour before the party ends. Only time sobers an individual. Serving caffeine-laden drinks like coffee, tea, and colas does not speed sobering, but gives you wide-awake drunks who think they are sober.

• If someone obviously has had too much to drink, drive them home, arrange for alternate transportation, or otherwise do whatever is necessary to keep them from getting behind the wheel. They may hate you through the cloud of their drunken stupor, but when they sober up they will thank you for giving them nothing more than a pounding hang over.

• If an incident does occur, notify your insurer right away so that you are in compliance with any "timely notice" clause.

Like this story? See: Gifts that really hit home
Home safe home for the holidays
Don't 'eat your house' unless it's gingerbread

DeadlineNews.Com's Editorial Content Is Intellectual Property • Unauthorized Use Is A Federal Crime

Home safe home for the holidays

Holiday News That Really Hits Home: The key to any security effort is based on a simple premise -- if you don't make yourself a target, chances are, you won't be a victim.

by Broderick Perkins
© 2008 DeadlineNews.Com

Unauthorized use of this story is a copyright violation -- a federal crime.

Deadline Newsroom - It's buying time.

The holiday season includes more people carting more stuff around in their car and getting more deliveries left at their door than any other time of the year.

Theoretically, a Neighborhood Watch can put more eyes on the street, but you may not always know if that visitor is neighbor's guest or a prowler looking for a heist.

The key to any security effort is based on a simple premise -- if you don't make yourself a target, chances are, you won't be a victim.

• Never leave items in your car, even for brief periods, unless it's concealed in the trunk or other area out of sight. If there's nothing to see, there's nothing to steal.

Thieves don't have your value system. What you believe is worthless could prompt a crook to smash your window for a quick grab. Plain-view-goodies amount to a Vegas jackpot for thieves looking to score five-finger discounts without the sweat of shopping around.

• Don't have packages left at your front door, especially if your door can be seen from the street or outside the community. Have someone pick up packages for you when you know they are due to arrive. Know when packages will arrive by tracking them with online tracking services offered by the United States Postal Service (USPS), United Parcel, Fed Ex, DHL and other carriers.

• Likewise, stop package, newspaper and other deliveries when you are away on vacation, for business or for other extended periods. It gives your house sitter fewer tasks to perform, it gives you piece of mind and it gives potential pilferers nothing to grab.

Chris E. McGoey, the "Crime Doctor" offers these additional home security tips for all.

• Burglars look for occupancy cues like outdoor lights burning 24 hours a day, piled up newspapers, or advertising fliers hanging on the door knob. Use an inexpensive light timer.

• Burglars know to look for the hidden door key near the front entrance. Don't hide spare keys under rocks, in flowerpots, or above door ledges. Give the spare key to a trusted neighbor.

• Burglars prefer to enter through unlocked doors or windows. Sliding windows that are not secure can be seen from distance. Running outdoor Christmas light extension cords from an open window or door prevents it from being secured. Hire an electrician or handyman to install an inexpensive exterior outlet for your holiday lights.

• Don't post your family name on your mailbox or on your house. A burglar can call directory assistance, if your number is listed and call your home while in front of your house to confirm that you are away.

• Don't leave descriptive telephone answering machine messages that say you are away. Burglars appreciate knowing they have plenty of time to break in and ransack your home.

• After the holidays don't pile up empty gift boxes from your new iPod, high density DVD player, or big screen flat panel TV on the street for the garbage man and let burglars know what's inside your home. Break them down or cut them up to conceal the items better. After a lucrative burglary, the chances of being burglarized again are heightened. The crook assumes you've got replacement items.

• Keep your home fortified with solid core doors, heavy duty dead bolt locks, longer screws in the lock strike plates and door hinges, and secondary security devices on all accessible sliding windows.

For more info: Gifts that really hit home

DeadlineNews.Com's Editorial Content Is Intellectual Property • Unauthorized Use Is A Federal Crime

Saturday, December 20, 2008

Don't 'eat your house' unless it's gingerbread

Eat, drink, be wary at holiday house parties

Home safe home for the holidays

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