| It is generally a bad idea to place or to receive other peoples’real estate into the names of any person other than the name of the true owner. There is a long tradition of this in the so-called Latino community. This is often done out of “trust”or confidence in the person receiving the title. Generally speaking,the person receiving the title is the new owner,with few exceptions. It is surprising to hear so commonly,“it is my house,but it is under my cousin’s name.” It is normally the case that the house now actually belongs to the cousin. The cousin can gift the deed back if he chooses and,most importantly,if he is able. The problem is that often the cousin finds himself unable to do so. There are many reasons people decide to do this. Often,this is a bad idea for many reasons,but here is one reason why. These names are fictitious,but the facts are very close to a real case. We do not represent any party in this story,and do not write about our clients without permission. Nonetheless,it is based on real-life events. Mr. and Mrs. Arce were happily married. They purchased property A,and everything was fine. Years later,Mr. Arce was approached by Mr. Barrientos,a friend of his,to place property B in Mr. Arce’s name. Mr. Barrientos needed a loan,but he was not credit worthy. Mr. Arce was credit worthy. Mr. A agreed to accept property B,procure the loan,give the loan funds back to Mr. B,and Mr. B was supposed to pay the loan. Mr. B did pay the loan. There was less than $10,000 owed when Mr. A and his wife decided to get a divorce. Mrs. A is now claiming property B,the property supposedly belonging to Mr. B,as part of her community property. The biggest mistake is always assuming that trust between two parties can solve anything. Mr. B trusted Mr. A. He did not see the divorce coming,just as he could not have seen any potential IRS judgment coming or many other things which often limit the ability of the grantee to grant the property back to the former owner. Trust is often irrelevant when the original owner is unable or finds it difficult to claim ownership of “his” property. Our building,located at 2702 Little York has roughly between 1000 and perhaps up to 2000 square feet available. Ideal businesses for this location are a barber shop,cel phone store,bridal shope,photographers,professionals or any other business which can take advantage of Little York’s traffic and our existing foot traffic. Please call 713-695-3072 for more information. Friends:If your resolution has to do with money,time or the job,please read. I got into insurance in 2007 as a way to replace the income that I lost as a result of the mortgage crisis. Though reluctant at the time,it was one of the best career decisions that I have made. After three years,I had replaced enough of my income to be able to spend as little as five hours a week working on insurance. This has left me a lot of time to pursue writing,family,another business and activism. The renewals offer a steady,predictable income,and my accounts are an asset that I can sell or borrow against. If you want more time,independence or a low-maintenance business,I want to speak with you about considering this as an option. This is not a get-rich quick scheme. You will work hard until you achieve the income level that you are looking for. This could be three to six years. Chances are that you are working hard now anyway,without the future incentive of free time or more money. You must be self-motivated. If you have to be pushed to perform things that aren’t fun or entertaining,this probably isn’t for you. There is selling involved,but it is more about consulting families about their needs than about convincing someone to buy something. If this sounds interesting to you,please call me. You can start as simply as selling in your spare time or as committed as buying your own branch,and many other strategies in between. Call me tomorrow at 713-695-3072. If you the ideas of unlimited income potential,financial independence or spending little time working appeal to you this could be something for you to consider. The Chavana Office will be closed December 23-26 and January 3. Happy Holidays. If you might want to sell your insurance agency in the Houston area,we might want to buy. Please call Hector Chavana Jr. 713-695-3072. Tax prep businesses will also be considered. Rental Car Insurance:To Buy or Not to Buy?
As the holiday season approaches,millions of Americans will take to the roads to visit family and friends. Since many will make the trip in a rented car,it’s an appropriate time to discuss one of the most frequently asked questions of agents and brokers all over the country:“Should I buy the insurance from the rental car company?” Following are a few considerations when mulling this important decision: DAMAGE WAIVER &YOUR PERSONAL AUTO POLICY
First,the good news:In many cases,a personal auto insurance policy will cover damage to a rented vehicle. That said—don’t get too comfortable! There are other costs associated with damage to a rented vehicle that the policy will not cover. For this reason,careful consideration should be given to purchasing the damage waiver offered by the rental car company. On your personal auto policy,“Collision” insurance covers your vehicle for damage resulting from a collision with another object. “Comprehensive” (sometimes called “Other Than Collision”) covers your vehicle for theft,vandalism,falling objects and other causes not resulting from a collision. If you have a car loan,your lender will require you to purchase both. If you pay the loan off,the choice to purchase collision or comprehensive—and both or neither—is up to you. Your personal auto policy will only cover damage to the rental car if you have the appropriate coverage type on at least one vehicle you own. For example,if you damage the rental car in a collision,you must have “collision” coverage on at least one vehicle covered by your personal auto policy. But if the rental car is stolen,vandalized,or damaged in any way not resulting from a collision,you must have “comprehensive” coverage on at least one vehicle covered by your personal auto policy. The key point:If your personal auto policy excludes the coverage type that damages the rental car—and you reject or violate the damage waiver—you will become personally responsible for paying all costs related to the damaged rental car out of your own pocket!
In contrast,the damage waiver usually offered at the rental counter will cover the damaged rental car regardless of what’s covered by your personal auto policy. LIMITATIONS IN YOUR PERSONAL AUTO POLICY
What else could you possibly owe the rental company following an event or crash? These include administrative fees and the depreciated value of the vehicle after repairs—neither expense is covered by your personal auto policy. In addition,most personal auto policies only pay up to the actual cash value (ACV) of the damaged vehicle. If the contract requires the damaged rental’s replacement,the ACV payout may not be sufficient to cover the entire expense. Again,in contrast,the damage waiver will cover all such expenses. Also,the rental contract likely will require you to pay the rental company’s “loss of use.” These are expenses they incur resulting from the inability to earn income from the damaged rental. This cost could be hundreds of dollars or more. Some personal auto policies will pay a limited amount for this expense (such as $20 per day or $600 total). Others will not cover it at all. In contrast,the damage waiver will pay the full cost of the rental company’s loss of use. NO CLAIM NECESSARY
If something happens to the rental car,purchasing the damage waiver gives the rental agency management of the process. This will allow you to avoid filing a claim and possibly help keep the cost of your insurance from going up. It also will keep your deductible in your pocket. LIMITATIONS IN THE DAMAGE WAIVER
Don’t forget that the rental car company’s damage waiver is a contract. It will include a list of restrictions that,if violated,may terminate the waiver and leave you personally responsible for paying the costs associated with the damaged rental car. Examples of such restrictions may include: • Damage to rental while driven by someone not specifically named on the contract.
• Damage to rental while driven on unpaved roads.
• Damage to rental while it’s being occupied by more passengers than available seatbelts.
• Damage that occurs while pushing or towing. This list is only a sample;the typical damage waiver may include additional restrictions. Moreover,the car rental company’s loss damage waiver covers “diminished value,” the economic reduction in value of a repaired auto due to it having been damaged. Almost all auto policies and many credit card coverages exclude diminished value. What’s the impact to you? If you don’t take the damage waiver,you could get hit with a diminished value claim of $1,500 or more,depending on your type of damaged rental car. DAMAGE WAIVER COVERS VEHICLE DAMAGE ONLY
Perhaps the most important fact to remember is that the damage waiver only applies to damage to the rented vehicle. It is not a substitute for liability,medical payments,uninsured motorist,personal injury protection,and any other personal auto insurance coverage. OTHER PRODUCTS OFFERED BY RENTAL COMPANY
In addition to the damage waiver,most rental car companies offer a few optional insurance-type products. For example,some may offer a liability enhancement that gives you the option to increase the liability limits you already carry on your personal auto insurance policy. Depending on your available auto liability insurance,this option may be worth consideration. Others may offer options such as accidental death,trip cancellation,or damaged luggage insurance during the rental period. Such options vary by company and may provide insurance dollars you cannot get elsewhere. However,they should not be purchased without first reviewing your current home,health and auto insurance policies as there may be duplication. CONCLUSION
In light of the information above,you should seriously consider—and probably buy—the damage waiver from the rental car company. Deciding whether to purchase other products from the rental firm,however,depends largely on the insurance already available to you from other sources. For assistance in determining coverage you already have and comparing it to the rental company’s options,call your Trusted Choice® independent insurance agent today. Business Travel Note:When you rent a car on a business trip,that’s an entirely different set of decisions,so again please talk with your Trusted Choice® independent insurance agent. Call Chavana Insurance at 713-695-3072 to review coverage. As early as they start school,children become involved in extra-curricular activities. Adults charged with getting groups of kids from home or school to the ball field and back home again are usually more concerned with maintaining their sanity than auto insurance. However,hauling kids around could have a serious affect on your coverage. In an auto accident,drivers can be legally liable for their passengers’ injuries. Most personal auto policies will extend coverage for injuries to passengers when driving your own car. But what if you rent or borrow a large van to take the soccer team out of town for a weekend tourney? While most auto policies will cover your actions in a car that isn’t yours,many contain restrictions on the size and type of vehicle they will cover. School employees,such as teachers and coaches,who use their school’s vehicles to haul students and players from place to place have another reason to be concerned. In addition to possible size restrictions,there’s a concern with regular usage;specifically,your personal auto insurance policy may not pay for your liability from an accident in a vehicle that is not yours but is provided for your regular use. In addition to uncertainty with whether or not your policy will even respond,another serious concern is adequate limits of insurance. A serious injury to a single passenger could mean thousands of dollars in medical and other costs stemming from the injury,and those dollars increase with the more passengers that are involved. There are published accounts of accidents involving adults driving in a car pool in which damages greatly exceeded $1 million. Yet,many adults continue to purchase auto liability limits based on the minimum required by state law. In some states,this required amount may be as little as $10,000 per person and $20,000 total for all injuries in an accident—not likely sufficient when you consider the severity of certain injuries and the number of passengers involved. Remember also that this limit applies for all injuries caused by an accident for which you are liable,including passengers of other cars. Adults driving kids to athletic and other events should consider maintaining the highest liability limits possible,as well as a personal umbrella policy. The umbrella can provide much higher limits of liability,some well over $1 million. Today’s drivers are faced with a multitude of distractions that pose a risk for accidents. Understanding your personal auto insurance could help bring at least a little peace of mind – talk to your Trusted Choice® insurance professional if you have any questions. Chavana Insurance is a Trusted Choice Agency. Manage the “Four C’s”of Winter Fire Risks:Thanksgiving,Christmas,and New Year’s Eve—these holidays mean celebrations,many of them in decorated homes filled with merry-making family members and friends. Trusted Choice® independent insurance agents also know that the winter holidays bring greater-than-usual risks of fire in homes. The National Fire Protection Association reports that,over the course of a calendar year,the 10 worst days for fires in homes fall between December 24 and January 6. Fortunately,these risks can be reduced with safe practices that address the “four Cs” of winter fires:chimneys,candles,Christmas trees and children. Chimneys
Buildup or blockage within a chimney can catch fire. Chimney fires are unpredictable:they can be noisy and fierce,or can smolder undetected. Common-sense tips:
• If you haven’t checked or cleaned the chimney in the past two years,don’t use it.
• Have a pro inspect the chimney for creosote (which is what builds up in a chimney and fuels a chimney fire)
• Use dry wood. This minimizes creosote buildup.
• Don’t burn wrapping paper,boxes,trash or Christmas trees.
• Don’t use liquid to start a chimney fire. Use kindling. Remember fireplace basics,too:use a screen to contain sparks;and let ashes cool before disposing of them in a metal container. Candles
Home-candle fires happen on Christmas Day more often than any other day,according to the National Fire Protection Association. Next worst:New Year’s Day and Christmas Eve. How do they start? Half of home-candle fires begin because an item is left near a lit candle. Four of 10 home candle fires start in bedrooms,with bedding,furniture,and curtains igniting. Common-sense tips:
• Make sure all candles are out before you leave a room or go to bed.
• Keep clothing,curtains,furniture,and other flammable items away from candles and flame.
• Use candle holders that don’t tip over. Christmas Trees
The National Fire Protection Association notes that 300 home fires start each year with Christmas trees. It’s not just live trees;artificial trees also burn. Three major reasons Christmas-tree fires start:electric malfunctions,heat too close to the tree,and children playing with matches,candles,or fireplaces. Common-sense tips:
• Buy a cut tree that has green,fresh needles.
• Buy a fake tree that is fire resistant.
• Use a secure stand.
• Locate trees a minimum of three feet from heat sources such as fireplaces and radiators.
• Water live-cut trees every day.
• Use lights listed by an industrial laboratory. Link together,at most,only three strands of bulbs.
• Throw out lights that have frayed or broken cords.
• Pull the plug on lights before going to bed or leaving home.
• When a tree starts dropping needles,it’s time to dispose of it (outside,not in the house,garage or basement). Children
Perhaps the most unpredictable risks for winter fire are those young people who are,naturally,exploring and experiencing the wonders of the winter world for the first time. Remember that lights and flames are fascinating to children. Common-sense tips:
• Watch the wires. Keep kids away from light strands and power cords.
• Matches,candles,stoves and ovens often get extra use during the holidays,at a time when adults are occupied with cooking,cleaning and entertaining. Stop and ask:“What might draw a child’s curiosity in this house?” Then shield children from those items,physically and through discipline and direction.
• Put matches/lighters out of children’s reach. Use lighters that have a child-resistant safety feature.
• Train children to tell an adult if they see matches or lighters. Trusted Choice® independent insurance agents stand ready to assist consumers with a claim. The best claim is no claim,though. Use these common-sense practices to prevent home fires. The Woodlands Financial Group,Chavana Insurance Branch is a Trsusted Choice Agency |
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