Friday, November 30, 2012

Getting the Maximum Benefit Out of Employee Benefits

For 2013, our family's employee benefits bring less benefits and more paperwork. However, I am planning carefully during our annual open enrollment period and making changes to 401(k) contributions, medical, dental and vision insurance, FSA withholding, and commuter expenses for 2013 so we can get the maximum benefit out of employee benefits, whilst saving on income taxes. Read the Yahoo Finance article on way you can get the maximum benefit out of your employee benefits.


First Person: Getting the Maximum Benefit Out of Employee Benefits


Photo courtesy: sxc.hu

Thursday, November 29, 2012

Financing Post Hurricane Sandy Reconstruction

As Treasurer of our condominium association, given the 4-5 month expected turnaround for getting any flood losses reimbursed from NFIP insurance, I had the misfortune of researching financing options for repairing and rebuilding any damage from Hurricane Sandy. It is important to note that there are rules stated in the by-laws that require a certain majority for either an assessment or a loan, with the latter being more stringent.

First and foremost, request an advance from your insurance adjuster (this requires signing a form). You can read about the claim filing process by clicking "How to File a FEMA Flood Loss Insurance Claim." You can expect to receive an advance of no more than 10% of what the adjuster thinks is going to be your damage. Yet, I have seen advances of $5000-10000 being made on the spot during the loss scoping. Unfortunately, those who are filing repeat flood loss  claims cannot get an advance,  as noted in "Getting Paid for a Repeat FEMA Flood Loss Insurance Claim Is Going to be Tougher".

Besides this, there are the three choices of financing post hurricane construction.

Special Assessment to supplement General Reserve funds

Most condominium associations have a general reserve fund that can take on small repairs or unexpected costs. Of course, Hurricane Sandy's losses exceeded most reserves. A special assessment generally requires a majority vote, as explained in each condominium association's by-laws. A special assessment is the path of the lowest resistance, although it is most onerous to owners.

A bridge loan for construction from a bank

For Hoboken residents, a bridge loan can be a viable alternative since banks in town can help. Other than Hudson City Savings bank, which declined to provide a business loan for reconstruction, many local banks do provide loans to condominium associations, with monthly or quarterly maintenance as collateral. Loans are given for a period of six months to 5 years, plenty of time to recoup losses from flood insurance. A friend has had success with First RepublicNational Bank. BCB Community Bank's Bayonne office also underwrites these types of loans. Rates are a few basis points over prime, and collateral requirements vary, so contact the banks directly.

A SBA Disaster Loan for HOAs

If all else fails, you can contact the Small Business Administration for a disaster loan. Rates are much higher if you do qualify for other loans, so understand that this federally backed agency is the lender of last resort. You need all estimates for repairs, as well as some sort of documentation from your adjuster. You can read more here: http://www.sba.gov/content/fact-sheet-associations

According to their website:

Before SBA will disburse any loan funds, we must have confirmation that all the money necessary to complete the repairs is available. Therefore, we must have documentation supporting the total project cost of the repairs and the amount of anticipated insurance recoveries. The damages to the common areas must be clearly separated from the damage to the individual units to establish eligibility.

For additional information, please contact our Customer Service Center. Call 1-800-659-2955 (TTY: 1-800-877-8339) or e-maildisastercustomerservice@sba.gov

For additional tips please read: "5 Money Saving Tips for Hurricane Sandy Victims"

Tuesday, November 20, 2012

Getting Paid for a Repeat FEMA Flood Loss Insurance Claim Is Going to be Tougher

Devastated by Hurricane Sandy after being hit by Irene? Filing a repeat FEMA flood loss insurance claim? Do your homework!

The process of filing a flood loss claim is explained in my article, “How to File a FEMA Flood Loss Insurance Claim.” Owners file the claim over the phone, providing their date of loss, flood insurance, property and contact information. The case is assigned a claim number, and an adjustment company. The adjuster sends a field agent, who scopes the damage, with input from the owners. In a few days, he prepares and estimated proof of loss (POL), with allowances for damages room by room, including cost of clean up, drying, and repairing.

There is however one major difference for insured people filing a repeat flood loss claim on the same property. Homeowners and businesses must demonstrate that any allowance they received from a prior flood loss claim was indeed spent doing the necessary repairs. This calls for meticulous documentation of the prior loss' expenses, while owners are struggling with current repairs while being displaced from their homes.
Photo copyright: Dalia

Let's assume that an owner did in fact make all necessary repairs. However, the owner lost the contractor's receipt in the second flood. The insurance adjuster would be less than sympathetic if the claim is not substantiated, solely because of the existance of a prior flood loss claim.

The owner would also not get the benefit of the doubt from the insurance adjuster if he made all necessary repairs, but the contractor did not break down every repair in as detailed a manner as the proof of loss from the insurance company. For example, if the insurance reimbursement was for a door, a frame and a threshold, but the invoice just shows the door installation, the other parts not being broken out, the homeowner may not get reimbursement from the insurance for the other parts

It could also take longer to process the claim, as the adjuster needs to investigate that all the repairs the previous claim paid for were indeed made, essentially meaning twice the paperwork for him as well.

So filing a repeat FEMA flood loss insurance claim? Gather all the Irene receipts and match them against the insurance proof of loss. Check off what was repaired, and add up what was not. Even if the latter items were badly damaged from Hurricane Sandy, FEMA will not pay for them again and you must budget for out of pocket repairs.




 

Monday, November 19, 2012

Choosing A Disaster Resistant House

Investing in a disaster resistant home can help protect owners now, and maintain market value later. Are trees good? Is a hill top house good? Are basements bad? What to look for, what to avoid.



Read more at Yahoo Finance: First Person: The Disaster Resistant House

Photo: A medieval fortress in Jaipur, India by Dalia

Thursday, November 15, 2012

How to File a FEMA Flood Loss Insurance Claim

So your home got damaged during Hurricane Sandy. You need to file a loss claim from your FEMA flood insurance policy.
Photo copyright: Dalia

Will it cover your basement, where the damage occurred? Will it cover your contents?

In my experience, filing a successful FEMA flood insurance claim requires understanding the rules, and doing diligence documentation of the flood loss.

Read more on Yahoo Finance: First Person: Navigating a FEMA Flood Loss Insurance Claim

Monday, November 12, 2012

Hurricane Sandy Ravaged Hoboken Finally Celebrates Halloween

Halloween in Hoboken, NJ a mile square town battered by flooding from Hurricane Sandy, finally came on November 12.

Enjoying the unseasonably warm 65 degree weather, hundreds of families upheld the Hoboken tradition of marching down in costume along Washington Street, once voted "Top 10 Great Streets in the Country” (American Planning Association), in the Annual Ragamuffin Parade.


Princesses, superheroes, witches and zombies went trick or treating prior to the start of the parade. By 4 pm, many Washington Street storefronts, the primary source of Halloween candy in "the most walkable city in America (WalkScore.com)" were posting the "sorry no more candy" sign.

As numerous residents evacuated after Hurricane Sandy submerged parts of the town in flood water and left a Herculean clean up task and week-long power outages, Halloween celebrations had to be rescheduled thrice, adding to some confusion. Several businesses missed the memo, which was publicized on City of Hoboken (@cityofhoboken) Twitter account and via email, and many parents had already packed costumes away. Working parents who had missed a week of work lamented the Halloween parade should have been held on a weekend instead of a Monday. A few stores, like Aspen Marketplace, had given out candy on October 31, when the flood waters from Hudson river still submerged parts of the town and most of Hoboken was dark.

Stores on First Street, which were ravaged by crippling floods, generally opted out of the festivities. Since Hurricane Sandy, a handful of businesses on First and Newark street, have decided to permanently close.

Still Halloween spirit was on display as kids beamed in their costumes, and businesses, especially the realtors, handed out high value chocolate goodies instead of mints and sugar candies. Since early November, bagged candy had been on sale at neighborhood retailers like Target for 70% off.

The daylight savings time change likely cut into the participation in the costume contest, which awards trophies in various age categories, as well as for best dressed family and carriage. Even then families from Hoboken and out of town decked out in creative costumes such as “Pirates of the Hudson,” “Beekeeper and his bees,” and “Sesame Street.” New to the mix was a vintage car reminiscent of “Chitty Chitty Bang Bang.”

In a town that still has FEMA and American Red Cross outposts scattered along with dozens of utility vans and sanitation trucks, Hoboken's belated Halloween celebration was one more step towards residents moving on from the devastation caused by Hurricane Sandy. To donate to rebuild Hoboken, please visit the Rebuild Hoboken Relief Fund website.

Note: Also published at Yahoo Voices. Author retains copyright.