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For Rebound Renters, a Few Things to Remember
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Once you have a list of your possessions, you'll want to think about how much it would cost to replace them, if your home is destroyed. You might think all you need is a couch, table, chairs, television, computer and new cell phone. But what about plates, glasses and silverware? What will you cook with? Do you need a new toaster oven? And, what about clothes and jewelry?
Add it all up and you could easily spend $20,000 to $50,000 replacing the contents of a one- or two-bedroom home.
Next, shop around for the best renter's insurance policy you can find. Your credit score will play a role here, so pull a copy of your credit history at AnnualCreditReport.com (and buy a copy of your credit score for about $7 at the same site). The higher your score, the better terms, conditions and price you'll be offered for your renter's insurance policy.
Be sure to shop around and talk to a number of insurance companies about their rental insurance policies. Some may offer discounts if you buy your auto insurance and renter's insurance together. Stacking insurance policies can sometimes net you as much as a 15 percent savings.
Renter's insurance typically costs about $15 per month, or about $180 per year for a $30,000 policy.
Q I am trying to decide how to take title to our new house. One of our options is joint tenancy. Because my wife is in the medical profession, if there's ever a malpractice suit against her, her creditor could come after the home. Would owning title as joint tenants help us?
A Consider another way of owning this property that might provide better creditor protections: tenancy by the entirety, which is available only to married couples.
Tenancy by the entirety means that each owner owns the whole property. So, you don't own half, you both own the whole house. The key difference between joint tenancy and tenancy by the entirety is this: If you own property as tenants by the entirety, both spouses must agree before the property becomes subject to one spouse's creditors.
Neither spouse can do anything that would create a claim or lien on the marital property. So, as long as you and your spouse stay married, and you own the property, tenancy by the entirety protects each of your interests. That provides better protection against creditors.
For example, let's say your wife gets sued for malpractice. If the plaintiff wins, the creditors could not force the sale of your house because each of you owns the entire property. The creditors would have to wait until you divorce or the property is sold. If the property is sold, the creditors could stake a claim to your spouse's share of the proceeds.
Tenancy by the entirety isn't available in all states. For more details on whether this is an option for you and how to retitle your property as tenants by the entirety, please discuss the issue with a real estate lawyer.
When I was going through bankruptcy about five years ago, I quitclaimed my name off of my property with my husband to avoid having the house taken. Now, some years later, I want my name back on the property but my husband and I don't know how to do it. Can you help?
