RE/MAX 440
John F. O'Hara

John F. O'Hara
731 W Skippack Pike  Blue Bell  PA 19422
Phone:  610-277-4060
Office:  215-643-3200
Cell:  267-481-1786
Fax:  267-354-6973

My Blog

Can Homeownership Status Affect Auto Insurance Rates?

February 16, 2016 1:48 am

Recently released research has shed light on a startling statistic: auto insurance costs for renters may be up to 50 percent higher than those for homeowners.

According to an analysis by the non-profit Consumer Federation of America (CFA), auto insurance premiums average 7 percent higher—about $112 per year—for a 30-year-old safe driver who rents a home instead of owning it. The CFA argues that weighing homeownership status when determining auto insurance rates disadvantages low- and moderate-income drivers—Federal Reserve Board data show the median income of renters is $27,800 and $63,400 for homeowners.

To conduct the analysis, the CFA solicited premiums for a basic policy from eight of the nation’s largest insurers, across 10 cities, for a 30-year-old, female motorist with a perfect driving record operating a 2005 Honda Civic. The CFA altered homeownership status during the test, discovering that premiums assigned to renters were significantly higher—even by double-digit percentages in some areas, like Baltimore, Md., Louisville, Ky., Newark N.J., and Tampa, Fla.

Notably, Geico was the only insurer tested that did not consider homeownership status in any city analyzed.

Consumer protection laws in California prohibit auto insurance companies from considering homeownership status or other socio-economic factors when setting premiums.  The CFA confirmed compliance through a separate analysis focused in Oakland, Calif.

Source: Consumer Federation of America

Published with permission from RISMedia.


Home Gone Green? You May Be Eligible for Tax Credits

February 16, 2016 1:48 am

Did you make your home more energy-efficient last year? You may be eligible for tax credits when you file your return, according to home energy evaluator Homeselfe.

"If you upgraded your home in 2015 by adding insulation—one of the most cost-effective upgrades you can make—you already know you are saving on your utility bills every month, plus you may be eligible for a tax credit on that investment," says Ameeta Jain, co-founder of Homeselfe. "Not taking advantage of that is throwing away your hard-earned cash.”

Jain explains that there are two types of major tax credits available to homeowners: the Residential Energy Efficient Property Tax Credit, which benefits those who have incorporated renewable energy features into their home, and the Nonbusiness Energy Property Tax Credit, which benefits those who have installed materials that meet the U.S. Department of Energy’s energy efficiency standards.

Homeowners who have invested in energy-efficient upgrades, such as fuel cells, geothermal heat pumps, small wind turbines, solar panels and solar-powered water heaters, may be eligible for the first credit. Homeowners who have invested in energy-efficient improvements like insulated roofing, windows and doors may be eligible for the latter.

Tax credits up to $500 are also available for some improvements, such as installing advanced, main air-circulating fans, a biomass stove, an energy-efficient HVAC system or water heater, insulation, or metal or asphalt roofing.

Source: Homeselfe

Published with permission from RISMedia.