Ron Berue
 |
Here's how insurance works:
MANY people put relatively small amounts of money into a "pool". When there is a claim, the insurance company has to pay the claim - according to the terms and conditions of the insurance policy.
Believe it or not, insurance companies & mortgage companies, together with most other lenders AND just about every municipality, have agents and representatives who do nothing else, except ride around to the different areas their particular investments are in, doing “windshield inspections“.. Just like your BF and perhaps you, these folks have a job to do: to make absolutely certain the property is maintained according to the terms and conditions of the insurance policy.
When a property isn't maintained according to the policy, the mortgage and/or local building code and ordinances, problems begin happening - not only with that particular property, but the street and eventually the neighborhood.
That old expression, "Monkey see. Monkey do." applies to real estate as well as just about every other situation.
Here's an Example: Mr. & Mrs. X worked very hard, saved their money and bought their home many years ago. Mr. X LOVES cutting the grass, puttering around the yard; raking leaves, cleaning the gutters, painting, etc.
Mrs. X LOVES gardening, LOVES seeing the birds come to the birdbath and LOVES - more than anything else - having their children, grandchildren, friends and family over for cook-outs, parties, dinners, etc. Between the two of them, their home is very well-maintained. In fact, over the years, the property's value increased. This is true - to one degree or another - for most of the other properties on the street and in the area.
BUT, across the street and down a few properties, a not-so-well maintained house, which has been vacant for quite some time, is sold to a real estate speculator for rehab and possible sale or renting.
He/She/They are busy with their other investments, apparently too busy to even start working on "the neighborhood eye-sore" or “the dog“. For a very long time, Mr. & Mrs. X, as well as the other residents, have been calling City Hall, complaining about the property.
About a month after the property goes to settlement/closing/escrow [they all mean the same], the insurance company sends an alert to their inspector for that area.
He/She rides to the property, does "a windshield inspection", completes the necessary document and files the report with the insurance company.
On a monthly basis, the property becomes one of those properties the inspector rides to, inspects, completes a document for and files to the insurance company.
Each and every passing second, minute, hour, day, week and month, the property becomes a higher risk to the insurance company and its policyholders.
1] A fire could occur - due to spontaneous combustion or mischievous people.
2] Because the walk wasn't shoveled or salted after the last snow and ice storm, someone could trip on the sidewalk.
3] The grass could grow so high, its a great attraction for rodents and other vermin. They mate, have babies, grow, mate, have babies, etc, THEN they don’t have any place else to go but to another property.
4] How about squatters, drug dealers and other undesirables? Vacant, poorly maintained properties are “magnets”
4] I'm sure you could think of others.
Believe it or not, it ALL starts with a broken window or uncut grass or unshoveled snow.
The reports begin accumulating and they are checked - the most recent against the previous ones. The same situations consistently appear. If the insurance company doesn’t look-out for, protect or do anything about its interest in the property, who will?
If you lived in a great neighborhood, wouldn’t you want something done with “THE black eye”?
Looking at it from this perspective, wouldn’t you be happy to have someone send a reminder/warning - instead of a foreclosure notice?
I wish you well!
VTY,
Ron B. |
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