When house hunting, the price of homeowners insurance probably isn’t top of mind. But homes with hidden risks can make getting coverage difficult, expensive or both. Learning how to identify them could save you a bundle.

This could be a particularly important concern for first-time home buyers and those moving from cities to suburban or rural areas who may not be aware of common hazards, says Jennifer Naughton, risk consulting officer for North America for Chubb, an insurance company.

Three out of 10 city dwellers told a Chubb survey in early August that they were considering moving out of the city because of the novel coronavirus outbreak. Meanwhile, the number of first-time home buyers in the first half of 2020 rose 4% compared to a year earlier as lower interest rates made mortgages more affordable, according to Genworth Mortgage Insurance.

 

WHERE’S THE NEAREST FIRE HYDRANT?

A homeowners insurance premium can depend in part on distance to the nearest fire hydrant and fire station, Naughton says. Homes that are on narrow roads or otherwise difficult for firetrucks to access also could be more expensive to insure.

“If they have to cross over a bridge, it’s not only a consideration of can a car go over that bridge, but also can a fire engine,” she says.

Some homes are at such high risk of wildfires and severe weather — hurricanes, tornadoes, windstorms and hail — that private companies won’t insure them. Without insurance, you can’t get a mortgage, so you’d need to turn to state-run risk pools such as Beach and Windstorm Plans or Fair Access to Insurance Requirements Plans, better known as FAIR. These policies typically cost more and cover less than regular homeowners insurance.

Also, many homeowners policies in storm-prone areas have hurricane deductibles that are higher than the normal

Value Stocks Could Be Cheap for a Reason

Many investors are—sensibly—considering rebalancing their portfolios away from the large-cap tech and growth stocks that have driven market performance. The search is on for strategies that may potentially lead the next leg of a rally. Value stocks are one example, as they tend to trade at lower prices relative to their fundamentals. While value stocks are indeed less expensive, they may represent a “value trap”—cheap for a reason. As a group, the companies in the S&P 500 Dividend Aristocrats Index offer a compelling alternative of historically attractive valuation, higher quality—as measured by credit ratings, price/earnings (P/E) ratios and return on assets (ROA)—resiliency, better total return and higher historical dividend growth.

Definitions: Price/earnings (P/E) ratio shows how much investors are paying for a dollar of a company’s earnings. Return on assets (ROA) indicates how efficiently a company utilizes its assets, by determining how profitable a company is relative to its total assets.

Large-Cap Tech and Growth Stocks: Some Considerations

What’s not to love about large-cap tech and growth stocks? The tech sector accounts for nearly 40% of the market-cap weighted S&P 500 Growth Index. If you include Facebook, Google and Amazon, that figure rises to more than 55%.

Shouldn’t these companies be driving the market? The pandemic alignment is clear: Working from home, e-commerce, cloud computing and other transformative business changes have helped buoy technology-related companies. Low interest rates help, too. In fact, low interest rates disproportionately help growth stocks by increasing the value of big cash flows out into the future. The fear of missing out—or more formally, “momentum”—has also supported tech stocks. If fundamentals are important to you, note that, as opposed to 20 years ago, most of these high-flying tech companies are highly profitable. So what’s the problem?

Figure 1:

When house hunting, the price of homeowners insurance probably isn’t top of mind. But homes with hidden risks can make getting coverage difficult, expensive or both. Learning how to identify them could save you a bundle.

This could be a particularly important concern for first-time homebuyers and those moving from cities to suburban or rural areas who may not be aware of common hazards, says Jennifer Naughton, risk consulting officer for North America for Chubb, an insurance company.

Three out of 10 city dwellers told a Chubb survey in early August that they were considering moving out of the city because of the novel coronavirus outbreak. Meanwhile, the number of first-time homebuyers in the first half of 2020 rose 4% compared to a year earlier as lower interest rates made mortgages more affordable, according to Genworth Mortgage Insurance.

WHERE’S THE NEAREST FIRE HYDRANT?

A homeowners insurance premium can depend in part on distance to the nearest fire hydrant and fire station, Naughton says. Homes that are on narrow roads or otherwise difficult for fire trucks to access also could be more expensive to insure.

“If they have to cross over a bridge, it’s not only a consideration of can a car go over that bridge, but also can a fire engine,” she says.

Some homes are at such high risk of wildfires and severe weather — hurricanes, tornadoes, windstorms and hail — that private companies won’t insure them. Without insurance, you can’t get a mortgage, so you’d need to turn to state-run risk pools such as Beach and Windstorm Plans or Fair Access to Insurance Requirements Plans, better known as FAIR. These policies typically cost more and cover less than regular homeowners insurance.

Also, many homeowners policies in storm-prone areas have hurricane deductibles that are higher than the normal deductible,



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India’s largest lender, the State Bank of India (SBI) has made an important announcement for its bank account holders. SBI through its official Twitter handle has said that customers are now being targeted on WhatsApp. “Don’t let cyber criminals fool you! Please be aware and stay vigilant,” SBI said in a tweet.

Here is what all SBI’s IMPORTANT ANNOUNCEMENT says: TOP POINTS

-Cyber criminals are approaching customers via WhatsApp calls and messages

-Informing customers about winning lottery ad asking them to contact and SBI number

-There is no lottery scheme or lucky customer gift offers going on – please stay safe and think before you fall into any such traps



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-Cyber criminals are waiting for just one mistake – please do no trust such fake callers or forwarded

-Please share this message with people to save them from any such frauds

Meanwhile, State Bank of India on Wednesday said it will raise up to Rs 5,000 crore through debt instruments in the current financial year. The central board of the bank in a meeting held on Wednesday accorded the approval for raising of capital by way of issuance of Basel-III compliant debt instruments in Indian rupees during FY21, SBI said in a regulatory filing.

The board said it has approved “raising of additional tier-I (AT1) bonds to the extent of Rs 5,000 crore by way of issuance of Basel-III compliant debt instruments in INR, within the overall capital plan earlier approved by the board for raising equity during FY21,” SBI said. The issuance of the additional