The Importance of Capital

In general, capital is a term used to define resources used to make money. Basically, you use capital to make something else. If you are interested in economics, there is a lot to learn about the concept of capital as an input into the production process.

But we are talking about accounting and finance for your small business, so we will lean towards the accounting interpretation of fixed capital. In practical accounting terms, you can think of fixed capital as fixed assets. The fixed capital assets are used to make something which is then sold for revenue. This is how you convert your capital to cash.

If you want to see your capital, pull out your balance sheet and look on the asset side. Do you see machinery, buildings, trucks, or trailers? If your balance sheet does not include that level of detail you may need to ask the accountant for an asset listing. For those of you who are already hands on, you may have created the asset listing yourself.

In addition to your fixed capital, you should have some working capital. The working capital is what you use everyday in operations - think of it as your on hand capital. Remember from our earlier discussions that resources like inventory and raw materials are assets?

If you take your current assets, like cash, raw materials and inventory, then subtract your current liabilities, like accounts payable, you will get your working capital. Hopefully, the amount of working capital you have is enough to get you through a few weeks of tough times. The working capital is what you need to manage everyday because if you do not, it will diminish and you could run out.

Running out of working capital is bad because that means you are off balance. Your assets, including cash, will begin to pale against your liabilities. It is not easy, however, to manage the working capital. It takes hard work and understanding. We will talk a lot more about working capital in lesson two.

Most small businesses begin getting capital when they first start out. You plan to make money and you need to have some capital to use in making money. Some small businesses can take off from the beginning and do not need another infusion of capital.

If your business is growing at a rate that lets you reinvest earnings and keep growing then you might not need to look for more capital. But some business plans require regular infusions of capital, especially in the beginning growth stages, to stay on target.

It is okay to need more capital so long as your growth plans and future profits can support the payback of more capital. Some capital is secured through collateral and is not really at risk until you can not make a payment and the equipment is taken away. This could have disastrous effects on related parts of your production system.

Source : www.articlecircle.com/accounting/the-importance-of-capital.html

Read More

1:04 AM | 0 comments

Final Statements

Accounting does not end with recording transactions. The owner or the management needs useful information about whether the business made a profit or loss or how the financial position at the end of the accounting year compares with that at the start.

From the trial balance all the income and expense items are transferred to the income statement. Further, certain other items are also adjusted before transferring the balances. Consider rent. Now, rent becomes payable at the end of a month. Therefore, following the accrual principle the accountant posts the rent as payable outstanding and adds this amount to the rent expense. The rent payable appears as current liability in the balance sheet and squared off when the actual payment is made.

Similarly, insurance payments are made annually. But, they would not match the accounting year. On the date of the preparation of final statement, there could be some months of insurance remaining prepaid. This amount is deducted from the expense and shown as current asset in the balance sheet. It becomes expense for the next accounting period.

The excess of income over expenses represents profit while the reverse scenario would mean loss. Profit adds to the equity or owners' capital while loss erodes the same. In effect, profit means the assets have increased while liabilities have decreased. Loss means assets have decreased and liabilities have mounted.

To find out the exact position of assets and liabilities, the accountant prepares the balance sheet. Although one would know whether the business made profit or loss or the value of assets and liabilities have increased or decreased, there is a need for a statement that gives complete information about how the financial position was achieved. The Cash Flow statement serves this purpose.

The basic rationale behind the cash flow statement is that all operations of the business are connected with receiving and paying cash. This is also called the cash-to-cash cycle. The firm buys inventories, sells them, incurs expenses and pays off the dues. So, there is always a parallel run between the firm's debtors and creditors. There are also transactions like fresh infusion of capital, paying off loans and making investments.

Therefore, to get the correct picture about how the firm's operations and other non-operative items contributed to the changes in financial position, the cash flow statement is useful.

The starting point for the cash flow statement is the balance of cash at the start of the year. There are three segments in the cash flow statement: Operating, Investing and Financing. For the first segment, we knock off non-cash charges like depreciation and loss on sale of assets to derive the operative profit in cash terms. We also adjust the net increase or decrease in all current assets and liabilities except cash.

In the second segment, we include the investments in fixed assets or financial instruments. In the third segment, we show the dividend or withdrawal of capital. The net effect of all the three segments is adjusted with the opening cash balance to get the closing cash balance.

Source : www.articlecircle.com/accounting/final-statements.html

Read More

1:02 AM | 0 comments

Payroll Outsourcing Choices

Outsourcing of payroll processes simply means that you transfer this traditionally in house function to another company. All of the tedious duties involved with payroll processing are shifted from the company itself, allowing more constructive use of staff time.

Once a firm entrusts its payroll processing to a reliable outsourcing company, they can be assured that not only will all the payroll be taken care of, but expert advice will also be available. The costs of setting up your own payroll systems, which include software purchasing, maintenance and upgrades is avoided. Using payroll processing outsourcing avoids many issues such as penalties, salary calculation errors and claims.

There are many payroll processing outsourcing firms to choose from. Make sure the company you decide to work with has the right experience in your locale and that their references are impeccable. A company can make a comparison of the methods of various vendors.

In addition to payroll processing, payroll outsourcing companies will provide the necessary accounting reports. Accounting data can be very tedious for companies to put together. In addition, there is a certain amount of risk around accounting reports since audit usually uses such reports. The last thing you want to take a chance with is messing up your audit data and getting yourself in trouble in that arena.

Outsourcing payroll services added that extra benefit and piece of mind that your accounting data and reports is accurate. Outsourcing payroll services provides this extra piece of mind. All data time capture and entry must be documented, and the company should provide round the clock help for employee assistance.

The lure of an economic solution for a tedious and time consuming chore should not be over shadowed by carelessness. It is imperative that the provider of these services can provide the maximum security to its clients through the use of encryption technology and password protection.

There are so many attractive benefits besides costs savings of payroll processing outsourcing. Increased productivity, employee satisfaction with online assistance, avoidance of late taxes and penalties are just a few additional benefits that add to the attractiveness of payroll processing outsourcing.

Best of all, a company may avoid going out of business by incurring a cheaper, more efficient system of operations through outsourcing. What better benefit could there be? If a companys competitors are outsourcing do to cost reasons, most likely they should outsource alos to ensure they can stay in business and compete.

Source : www.articlecircle.com/accounting/payroll-outsourcing-choices.html

Read More

1:02 AM | 0 comments

Tips On How to Make Profits Online

It is not just enough that you increase your sales or area of operations. You need to know whether you are actually making a profit or not. If you do not do this exercise, you will not likely judge whether your business is successful or not. Moreover, keeping track of your profit is the best way to measure effectiveness of other functions like production planning, marketing, advertising, etc.

There are many instances of businesses that did high volume, but lost their advantage because they ignored adequate profit planning. For small businesses especially keeping constant track of the profit plan is the best way to increase competitiveness.

So, we repeat again that the gross revenue is not that critical as the net profit is. You need to know what eats into your profits and how you can plug it.

The best way to keep track of your profits is to make a financial plan and measure actual performance on a periodic, preferably monthly basis. This allows you to detect problems early and correct them quickly.

Here are a few surefire strategies:

Make a realistic financial plan. This means put down in money terms how much revenue you project for the period. Factor in the corresponding expenses.
Install a suitable accounting process that records the transactions in a timely and accurate manner. Always set aside some time to review your accounting transactions. This prevents frauds.

Remember that time and money lost can never be recovered. At best, you can only recast your projections and work towards a more achievable target. This approach however does not allow for risk-taking. Therefore, a plan that combines aggression with pragmatism should be followed.

Analyze the loopholes and plug them right away. If your sales have not increased as expected, consider efficiency of marketing staff or effectiveness of the marketing strategy. Remember, accounting profit does not occur out of the blue. Make team work the cornerstone of business success. Brainstorm for ideas on improving efficiency and cutting down costs.
Always do a complete cost benefit analysis for any investment. Extra outgo for the purchase should be more than matched by sales inflow.

Increasing your profit should be the motto. Therefore, attempt measures to improve profit through reduction of costs or better utilization of resources. If your growing revenues were just about matched by soaring expenses, you would soon go out of business. Higher dollar inflow from sales should actually translate as higher dollar for keeps as profit.

Source : www.articlecircle.com/accounting/tips-on-how-to-make-profits-online.html

Read More

1:02 AM | 0 comments

Accounting Competition

There are numerous competitions that are currently going on around the world, but many of us don't know to life’s growth. As a responsible company, www.competearoundtheworld.com plays a vital role in bringing individuals, rich or poor, who may not have access to the global community, a chance to have an opportunity to participate, and win a competition.

Both where to find them. In this scenario, www.competearoundtheworld.com offers you a resource full of information on various categories of competitions that is going on through out the world. Whether it is on writing, dancing, painting, drawing, mathematics, science, quiz, music, photography, poetry, or no matter what it is or where it may be, if you can name a competition this site finds it for you.

In this way, anyone, from a small village to a big city, can have access to find what they want. A healthy competition is a great way to build confidence, appreciate talent, and help to create new innovative ideas, while contributing winners and losers of competitions come away with valuable experience. This experience increases interest in their chosen field or talent, as well as encourages creativity and innovation.

While winners want to win more, losers strive to beat the winners after realizing their mistakes. This healthy environment gives a great boost for new talent, benefiting all of our society. Competitions also are instrumental in building a reputation for participants in their fields, both as individuals or as a group.

The goal of this site is to obtain all information about current competitions around the world, for both online and onsite competitions. This site wants to be a valuable resource for everyone in the future. The specialty of this site is that it bans all competitions that are not suitable for general audience, i.e., adult, sex, sweepstake, and lottery. Further this site follows strict guidelines and ensures reviewing of all reported competitions before making it available for the public.

It is a known fact that each and every individual has a unique talent. This site aims to play a role in bringing out that talent, providing a comprehensive resource of information to find competitions and competitors. This is purely a confidence building site; again, through healthy competitions. Practice makes perfect, people make mistakes and by correcting mistakes, improvement and success is achieved.

Competition in this world is a continuous process, whether its business, studies, or career everyone has some sort of competition in his or her life, and competing with others is a never ending job. Even before our birth we competed along with other sperms to get first place into our mother’s ovary. So we all have won a great competition even before our birth! Every one of us is a winner, a born winner, but we lose that confidence as we grow older, and we forget our past successes.

Competition is one of the best ways to identify the talent, innovation and growth for this world. This site aims to play a small role in that growth, by providing this rich resource. All you need it to log on to our website and join your preferred category of competition and win prizes and accolades from all over the world. This site and all its resources are offered freely to all who are interested.

Source : www.articlecircle.com/accounting/accounting-competition.html

Read More

1:02 AM | 0 comments

Tax Debt Relief Aid

In case you are among those individuals who need immediate tax debt assistance, there is nothing to concern yourself with. There are many solutions for you. Within this sort of scenario, the knowledge which you have is necessary and significant. The initial point you need to know is that if you actually need the tax debt relief support or in the event you need a straightforward guidance, an IRS tax attorney can help you out of the problem. The only issue regarding asking for recommendation, even it's from the IRS, it can nonetheless be incorrect and could charge you extra penalties.

As soon as a person determine regardless of whether or not you need further instruction, you have to get the correct organization to guide you on tax debt impairment management. Nevertheless, you have to be cautious. With the tax debt term comes along the actual tax preparers that are uncertified, preparing to obtain your final buck with all the guarantees of tax debt relief help.

You also have to be really specific that you simply will not end up stressed because frequently, these types of businesses regularly depart following tax audit season, causing you to be creating dealings with the federal government if tax relief support is not successful. You don't wish to be going through these types of circumstances.

The excellent factor is that during the last few years, the federal government was successful in cracking down the phony tax help scammers. It is best for you to personally work with an IRS tax attorney or certified representative to obtain beneficial tax debt relief aid. These agents are extremely a lot educated in the area associated with tax demands. Also, they are certified represent those who desires tax guide in front of the IRS. They're finest at planning your tax settlement and assisting you to prevent tax penalties. These types of tax relief help agents supply tax assistance from numerous diverse configurations.

CPAs is capable of doing tax debt help preparation. On the other hand, perhaps it will need you to check out pension preparation and property troubles. You'll notice a large number of methods to work with IRS tax debt relief the moment it's been validated. IRS tax obligation could be produced from back taxes due. The actual occasion the tax debt has been manufactured, it ought to be completed along with organized contact with the IRS. Instant Tax Solutions tax debt relief group offers efficient management and has covered numerous taxpayers to reduce their debt due via diverse strategies.

Source : www.articlesbase.com/taxes-articles/tax-debt-relief-aid-3266245.html

Read More

12:59 AM | 0 comments

IRS Tax Relief- Resolving Tax Problems is a Game

Reporting your income and telling the government how much tax you owe is your own responsibility. The U.S. income tax system is established on a self-evaluation theory. Every time you register a tax return, you evaluate your own income tax. This does not intend that that you have a legal option whether or not to evaluate taxes against yourself or that the system is willful. You must register a tax return if you bring in above stipulated annual minimum income despite what some tax protestor or organizations postulates.

By accounting all your income, submitting the correct amount of taxes due, and compensating the taxes due, the IRS ascertains whether or not you conformed to the self-evaluation principle and the tax code. You may be scrutinized and charged for an extra evaluation if the IRS distrusts that you have gone against your self-evaluation obligation. The IRS is authorized to figure and evaluate the tax for you if you do not charge a tax return.

This is one battle you would very well want to win. You are already succeeding in the IRS game if you register and pay your taxes on time and never get an IRS notice. The rest of us who run into the IRS still have an opportunity to succeed, or at least to not fall out disastrously. This entails remaining out of jail and holding on to your income and keeping your assets away from the IRS.

But you won't succeed in the IRS stake unless you are knowledgeable of the rules. One person that can help you is an IRS tax attorney. An IRS tax attorney is a representative who functions with taxpayers to attempt to resolve their troubles with the IRS. In reality, they concentrate merely on tax problems and relief. A tax debt attorney will help a taxpayer in hardship and all through his scrutiny. They act for you in talking terms of your earning specifics to the government. Experienced tax attorneys are qualified to have an adept know-how about tax laws.

Unlike most IRS tax relief companies and IRS tax attorney firms, Instant Tax Solutions do not make false promises and take your money. Our team of IRS tax attorneys, CPAs and IRS enrolled agents prides itself on providing honest IRS tax relief information.

Our goal is to resolve your IRS tax problem, reduce your IRS tax debt, and relieve your anxiety and stress. Please call for a free tax relief consultation to find out how we can help you.

Source : www.articlesbase.com/taxes-articles/irs-tax-relief-resolving-tax-problems-is-a-game-3016476.html

Read More

12:57 AM | 0 comments

Proper Tax Negotiation via a Tax Attorney

We simply cannot cover up the reality that making use of a tax specialist like tax attorneys can be extremely highly-priced seeing that it will cost on customized premiums however, get to consider it, fighting for your rights with the IRS and purchasing a agreement for your personal IRS tax debts is not going to stem from an individual endeavor particularly when you are unable to fully grasp the manner in which the course of treatment takes place.

It's not possible to stand for yourself to the IRS pretty much all the time period even when they permit it should your tax hardships demands supplement when compared to a taxpayer can certainly deal with, you will want a highly trained tax attorney who is going to bargain on your behalf.

If you achieve the agreements and data necessary, you can expect to easily take a seat all over and hesitate even though the IRS tax attorney exercises an understanding in your part. It is actually an extreme comfort and low cost method which means that think about the underlying part money of performing it exclusively by you.

It's really no point in becoming stalked because of your tax complications and never acquiring a sufficient amount of slumber. Unquestionably, tax challenges is definitely a toughest problem that you need to face up to and search for tax relief assistance in advance of finding yourself in the bottom part of despair. Truth be told there can be something you possibly can accomplish ahead of IRS changes right into an animal and consumes you while still living, retain the services of IRS tax attorneys or an IRS tax relief firm.

Quite a tremendous amount of proper tax professionals along with respectable internet sites are on the web to provide absolutely free appraisal. Take always into account to measure or search for a selection of their authentic accounts of success in addition to their registration. You would possibly come face to face with tax relief scams thus be warned and stay gone them.

You may not prefer to get caught in the particular possession of such people that will solely deceive funds away from your wallets. Repeatedly think about the internet pertaining to suppliers on prospective IRS tax attorneys or IRS tax relief firms to engage.

When it comes to presenting the particular requirements of each and every tax arrangement, the IRS possessesa recognized list of procedures. A tax attorney or tax specialist would not solely make a deal on your behalf but in addition hold you up to date together with your continuous tax condition and the worthwhile promises you happen to be proficient for to ensure you may have some sort of reasonable placement in attending to your tax disorder. You ought to be knowledgeable of just what exactly your current probable tax judgment substitutes are.

Source : www.articlesbase.com/taxes-articles/proper-tax-negotiation-via-a-tax-attorney-3711158.html

Read More

12:54 AM | 0 comments

When the Time is Right for a Tax Attorney

Tax attorneys are legal professionals who are experts in the sophisticated as well as specialized industry of tax legislation. Tax attorneys are ideal for working with elaborate, complex, and lawful difficulties. Here are a few instances where you would definitely need a tax attorney:

1. - You intend to file a lawsuit up against the Internal Revenue Service.
2. - You intend to search for impartial report on your situation before the US Tax Court.
3. - You happen to be within felony investigation by the Internal Revenue Service.
4. - You have committed tax fraudulence, for instance declaring fake deductions and loans, and require the defense associated with your rights.
5. - You possess a taxable property, desire to make intricate property organizing techniques, or perhaps ought to report a property tax return.
6. - You happen to be establishing an enterprise and need to have lawful advice in regards to the framework as well as tax management of your enterprise.
7. - You happen to be carrying out global enterprise and require assistance with legal agreements, tax procedure, along with other lawful issues.
8. Tax attorneys will need to have a college degree in law not to mention they ought to be accepted to the state bar. Those would be the least specifications for applying law. Furthermore, a tax attorney must have highly developed learning tax law. Nearly all may have a master degree of in taxation.

A number of tax attorneys in addition have a history in accounting. In case you are dealing with a complicated accounting issue in addition to legal problems, you may wish to search for an IRS tax attorney who's likewise a Certified Public Accountant.

Using the services of the suitable tax attorney isn't as uncomplicated as it appears. A lot of people make use of diverse techniques and strategies to decide on what they comprehend to be the most appropriate one and then later on think that they ought to have spent additional time carrying out their research and required groundwork.

Nevertheless other folks make use of an endorsement coming from a good friend which usually on the outside, is targeted on exterior talents, she or he is a fantastic individual, extremely well informed and also performed an admirable job for me personally.

It's unlikely that any of such aspects can often be effortlessly in comparison from one tax attorney to another and lots of people have no idea of precisely what things to ask to be able to decide if presently there genuinely is an excellent match involving the client's requirements and the tax attorney's skills and niche.

Source : www.articlesbase.com/taxes-articles/when-the-time-is-right-for-a-tax-attorney-3377476.html

Read More

12:52 AM | 0 comments

What Requires a Tax Attorney

With a little luck you will not ever need the expertise of an IRS tax attorney, despite the fact that it is by no means an awful idea to refer to with one on a normal schedule so that you can have her or him examine your documents to make suggestions. However in the event you in reality need the assistance of a tax attorney, you should definitely devote more time to meeting with a variety of legal professionals so that you can pick one up who is able to tackle your distinctive requirements and with whom you really feel secure.

And just before you decide to take advantage of the expertise of a CPA or accountant rather than a tax attorney, keep in mind that a tax attorney is needed to preserve your entire data private while a CPA just isn't. Check out circumstances where you will probably find yourself that call for the expertise of a tax attorney:

- Financial Audits. This is actually the most apparent explanation behind working with a tax attorney. When you are exposed to an audit, the IRS has observed an issue with your tax return. Regardless of whether you put together your taxes yourself or employed an individual to get it done for you, the time has come to engage an IRS tax attorney. Tax attorneys can assist you to browse through the audit procedure and can negotiate in your part.

Even though the IRS would really like you to reckon that tax laws and regulations are monochrome, they truly are not. A tax attorney is aware of this and will make certain that those numerous hues of gray function for your benefit by utilizing loopholes and a finer, present comprehension of tax laws and regulations.

A tax attorney will also subject any kind of communication and telephone calls from the IRS, which could get rid of plenty of anxiety from you and release lots of your time. IRS representatives are daunting and apply formidable dialect to terrify taxpayers into basically providing them with almost everything they request devoid of a struggle. Tax attorneys are not afraid of auditors, however, and may communicate with the auditor in your stead.

Unpaid Back Taxes. Individuals who have a shot at doing negotiations with the IRS without the assistance of attorney generally wind up paying out a more substantial portion of the taxes they are obligated to pay compared to individuals who acquire the aid of a tax attorney. For the reason that information and facts you supply to your lawyer is privileged, it is possible to confide in your attorney about precisely why you did not pay taxes to begin with. Along with that data, the attorney can function to help you get the perfect end result.

Source : www.articlesbase.com/taxes-articles/what-requires-a-tax-attorney-3377463.html

Read More

12:52 AM | 0 comments

Texas Home Insurance Money Saving Tips I

10 Ways to Save On Your Texas Home Insurance

Now that you know the basics of a homeowner's insurance policy, here are 10 ways you can pay less. In many cases, you can get the same level of coverage for fewer dollars.

1. One Insurer, Multiple Insurance Policies - Do you have a Houston auto insurance policy?

o Is your auto insurance insured with the same company that provides your home insurance?
o If the answer's no, you're paying too much for both policies. Almost every insurance company that sells home insurance wants its policyholders to also buy auto insurance from them. These insurers offer so-called multi-policy discounts. These discounts can be as much as 27% and some insurers apply the discounts to both the auto and the homeowners/renters policy.

2. Raise Your Deductible! - The deductible is the amount you pay before insurance kicks in if you have a claim. For example, if you have a $500 deductible and you file a claim for $1,500 in damage to your home, you pay the first $500 and your insurer pays the balance, $1,000. The higher the deductible you choose, the more you pay. However, the higher the deductible, the lower your policy premium. Depending on the insurance company, you can save between 12% and 37% if you have a deductible of $1,000 to $5,000.

3. New Is Better! - Insurers really like newer homes. That's because it's less likely something will go wrong with the electrical, heating and plumbing systems. In addition, the structure itself is in better shape. Insurers offer discounts of as much as 8% to 15% if your residence is new.

4. Location, Location, Location! - Where do you live and what is your home made of? If you're in the Eastern United States, it's better from an insurance perspective to have a brick or masonry residence because such a structure has a greater resistance to wind damage. By contrast, frame homes are better in the earthquake-prone West. The right structure in the right region can save you 5% to 15%.

Further, if your home is near a fire station, you will pay less for homeowners insurance. If you live in an area that is prone to flooding, you may be required to buy a flood insurance policy. If you are not required to buy the coverage and still live in a flood-prone area, your Texas home insurance policy will not provide coverage for losses arising from flooding.

5. Insure the House, Not the Land! - Nobody is going to steal your land. Fire and high winds won't destroy it. As such, when deciding how much homeowner's coverage to buy, don't include the value of the land. You should only cover the value of the house and any other buildings on the property. If you include the value of the land, you're paying too much.

6. Don't Insure What You Don't Have! - Each year, you should review your policy to see what coverage you have for your possessions. If you have made a major purchase, you will want to increase your limits of coverage, but what if you sell something or something's? You don't need as much coverage. Pay particular attention to items that are covered by endorsements or floaters to your policy, items such as jewelry and computer equipment.

7. Better Safe Than Sorry! - Smoke detectors, burglar alarms and deadbolt locks are usually worth discounts of at least 5%. You can get even bigger discounts, 15% to 20%, if you install a sophisticated sprinkler system or an alarm system that rings at the police station or a security company. However, not all of these systems qualify for discounts. Before you install one, check with your insurer to find out what type of system qualifies for a discount and how much you would save on your premium if you installed the system.

8. Where There's Smoke There's fire! - Smoking (unattended cigarette butts, etc.) produces more than 23,000 residential fires in this country each year. That's why some insurers have discounts if all the residents in a home are nonsmokers.

9. Group Discounts! - Some insurers offer discounts to certain business or alumni associations. If you are a member of such an association or associations, ask the directors of the associations if there are any insurance companies providing discounts to members.

10. Don't Jump Around - If you've been with an insurer for a while and you like that insurer, stay put. Some insurance companies automatically have discounts for policyholders who have been with the company for a certain number of years. For example, 5% for at least three years, 10% for at least five years.

Source : www.articlesbase.com/insurance-articles/texas-home-insurance-money-saving-tips-3035788.html

Read More

3:58 AM | 0 comments

Texas Home Insurance Money Saving Tips III

So how much insurance should you have?

Basically, unless you want to pay some of the costs yourself, you should insure your home for what it would cost to rebuild it if your residence were destroyed.
How do you find this out?

Your insurance agent can provide you with this information. If you don't have an insurance agent and you should, you can contact your local builders association. In the home construction world, building costs are calculated on a square foot basis.

As such, to determine the cost to rebuild your home, take the square footage of your house and multiply by the average per square foot building rate in your area.

Your possessions are also insured on a replacement cost or actual cash value basis. Again, unless specified otherwise, the coverage in your policy is actual cash value.

Home insurance policies also have limits on coverage for such items as jewelry, fine art and computer equipment. Read your policy and see what these limits are. For example, the standard policy will provide a maximum of $1,000 coverage for your jewelry if it is lost or stolen. If you have lots of jewelry, fine art or computer equipment, you should consider purchasing a special personal property endorsements or floaters that provides the coverage you need.

Speaking of needs, you need to take a written and a visual (still pictures or video) inventories of everything you own in your home and in other buildings on the property.

* Include all furniture -

o Indoor and outdoor, appliances, stereos, computers and other electronic equipment, hobby materials and recreational equipment, china, s
ilverware, kitchen equipment, linens, jewelry and clothing. For the major items (computers, televisions, stereo systems, etc.).
o Write down the serial number, make or model number, purchase price, present value and date of purchase of each item.
o If you have the receipts for the items, attach them to the inventory.
o Make at least two copies of the inventory and store one of those copies offsite a safe deposit box is a good place.
o Store the pictures or video of the inventory offsite as well.


Source : www.articlesbase.com/insurance-articles/texas-home-insurance-money-saving-tips-3035788.html

Read More

3:53 AM | 0 comments

Texas Home Insurance Money Saving Tips II

Texas flood insurance and earthquake coverage are two perils for which there is no coverage.

* You can get coverage for earthquake and flood damage in a separate policy or as an endorsement to your homeowners insurance Texas coverage.

Replacement Cost or Actual Cash Value

Your Texas home policy does not provide coverage for all potential catastrophes that could damage or destroy your home. Earthquake and

There is also no coverage for damage caused by water that seeps into your home from the ground.

You do have coverage for losses related to fire, smoke, lightning, wind storms, hail, explosions, vandalism and theft.

There are different ways to insure your home. Generally you insure both the structure and your personal property. Let's take the structure first.


There are two types of coverage: replacement cost and actual cash value.

Replacement cost coverage is highly recommended for all Texas homeowners. Under replacement cost coverage, the insurance will cover the cost of replacing the part of the structure that is damaged, up to a maximum dollar amount.

Under actual cash value coverage will cover the cost of replacing the damaged structure minus the depreciation. If you have an older home, this maybe the coverage you want. Unless your policy specifically says it provides replacement cost coverage, the coverage is for actual cash value.


Source : www.articlesbase.com/insurance-articles/texas-home-insurance-money-saving-tips-3035788.html

Read More

3:50 AM | 0 comments

Texas Home Insurance Money Saving Tips I

How would you like to save money on your Texas homeowners insurance

As Texas home insurance specialists we understands that your home is probably your most valuable asset. It is also a huge risk for you financially. What if a catastrophe strikes? What if you suffered from a fire, flood, vandalism or any other catastrophe? What if someone visiting you slips falls and suffers a serious injury? And sues you? An accident like that could put a real big dent in your financial security.

For most people, insurance is a mystery. They know they need to have insurance for their homes (mortgage lenders require it), but they don't understand the coverage provided by the policy. And they don't know which insurance companies offer the best prices. Because most people don't fully understand the insurance policy they are purchasing, many people think insurance is a rip-off.

Texas home insurance is not created equal. In fact, almost none of it is. There are thousands of different products out there, from hundreds of insurance companies. How do you find the insurance and the insurance company that is best for you? You read this special report and tap into my vast knowledge of the products and the companies that offer them.

Insurance Over Texas is a local Houston insurance agency specialized in Texas home insurance. With over 20 of Texas insurance experience I know what kind of insurance fits your needs best. I also know what insurance companies sell quality insurance at the lowest price. Since I am specialized in the insurance needs of homeowners and their families for over two decades, I have decided to dedicate myself to solving some of the mysteries of homeowners insurance quotes Texas.

Source : www.articlesbase.com/insurance-articles/texas-home-insurance-money-saving-tips-3035788.html

Read More

3:49 AM | 0 comments