Leavenworth Real Estate

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Shopping for Leavenworth Insurance: Tips from a Pro

The following is a guest post from Eric Kossian of Leavenworth Insurance

Home insurance pricing is affected by a number of factors; I will try to discuss in order of importance, with those factors that affect the rate the most listed 1st.

Credit Score: a good credit score will give you up to a 50% discount because it is the single biggest statistical determinate for future claims.

Size of the Home: a mansion will cost more than a bungalow.

Location of the Home: Is the home within 5 miles of a fire station and if so, what is the quality rating of that station. For example, a home in Seattle is a class 2 whereas a home in a small town is usually a 4 to a 6 rating. The higher the rating the higher the premium. Homes without hydrants within 1000 ft or outside the fire district 5 mile limit will pay significantly more. Location also determines if the home is in a flood zone and how severe the flood risk is. I would think very seriously before buying a home in a 100 year flood zone as a flood will severely disrupt your life for at least 6 mo. and you will be required to pay flood insurance (the Federal subsidy of which is getting smaller and smaller) which is expensive because it is a known loss waiting to happen.

Condition of the Home: If the home has any one or more of these items: pressurized pipe that is galvanized metal, has electrical that has not been completely updated to romex wiring and at least a 100 amp breaker panel ( no knob and tube or cloth wires), a roof that is not in good condition or over 25 years old, the home is not on a cement perimeter foundation, or the home is not in good upkeep, then you will pay 2-3 times the premium and likely be in a secondary insurance market that is not as well regulated and the coverage will not be as broad.

Prior Claims at the Home: You may be just buying the home but if the previous owner had insurance claims in the last 5 years, you will likely pay more for a few years.

Which Insurance Company You Select: Believe it or not, there really is big differences in prices between insurance carriers for home insurance, with a price swing of about 30% for a preferred home. Even more importantly, unlike care insurance which has pretty much the same coverage no matter the insurance carrier chosen, coverage on homes varies greatly so be sure to ask for Guaranteed Replacement Cost, Comprehensive Perils, Ordinance and Law Coverage, Back Up of Sewer and Drain Coverage and Additional Living Expense of at least 25%. You won’t necessarily pay more for these due to all other factors listed above but you’ll certainly save many thousands if you have a claim and have these options.

A Educated Insurance Agent: If they don’t know what the options are in the above paragraph are or if they don’t seem to really be shopping for you, then move on to a different agent. In the real estate arena, a good real estate agent, good mortgage broker and good insurance agent are worth taking the time to find.

Eric Kossian, Wash. State Insurance Agent

Underwriting Specialist

Leavenworth Insurance

InsurePro

Ph: 509-548-5488

Ph. Toll Free: 1-877-548-5488

NEW TOLL FREE FAX # 1-888-548-6592

[email protected]

[email protected]

Leavenworth Events–May 2011

 The following events are happening in Leavenworth this month:

May 3: Broadway Soiree Gala–Canyon Wren Recital Hall

A fundraiser for the New Plays Festival, this evening features dinner, wine, and silent auction.  There will be many Broadway and Seattle based performers in attendance.  6pm-9pm, $75.

May 5-7–Icicle Creek Writers Retreat

This retreat at the foot of Wedge Mountain will be lead by Hugo House Writer in Residence Ryan Boudinot with evening workshops, readings and outings, while the day is reserved for private workshops and a time to deeply explore your work.

May 6 & 7–Jewelry Trunkshow and Sale–Barn Beach Reserve

Unsure of what to get mom for Mothers Day?  Local jewelers with sustainable crafted  jewelry will be having a sale at Barn Beach Reserve on this weekend.  15% of proceeds go to Barn Beach to contribute towards their programming. May 6th, 4-8pm, May 7th, 10am-4pm.

May 6–Michele Longo Eder–Leavenworth Library

Michele Longo Elder presents her book  Salt In Our Blood: The Memoir of a Fisherman’s Wife about a family on the Oregon coast.  8pm.  FREE

May 7–Michele Longo Eder–A Book For All Seasons

Michele will be signing her book Salt In Our Blood at A Book For All Seasons.  1-3pm.  FREE.

May 8–Recipe For Justice–Canyon Wren Recital Hall

Local Leavenworth author Susan G. Butruille presents her newest play on Women’s Suffrage in Washington State.  The two act musical presents the events leading to women’s right to vote in 1910, paving the way for national suffrage in 1920.  2:30pm. $7-$14.

May 12-15–Bird Fest

Time to tweet it up at one of Leavenworth’s first festivals of the year.  This years Bird Fest features keynote speaker Terry L. Root, a Senior Fellow at Stanford University.  Sign up for your favorite field trip early as space is limited.

May 13–PK Dwyer

Artist PK Dwyer takes the stage at the Leavenworth Coffee House.  Come hear his eclectic mix of blues, folk, roots, and rock ‘n roll.  $3 cover.  7pm. Barn Beach Reserve.

May 13-15–Maifest

May 14th–Flower Pot Painting

Join Icicle Arts at the Gazebo to paint your way to spring.  $2/pot.

…..To Be Continued…….

Water Damage From Leaks Is 7 Times More Likely Than Fire Damage

The following is a Guest Post from Eric Kossian of Leavenworth Insurance.

Most people believe that fire damage is the most likely cause of loss to their home but the data proves homes are much more likely to be damaged by water than by fire.

Travelers Insurance analyzed its homeowner’s insurance claims in one state, excluding claims related to catastrophes or weather, and found that damage caused by water accounted for 23 percent of its property claims, compared with just three percent for fire. Annual inspections could save you thousands of dollars as property insurance does not cover for losses that are considered maintenance issues such as all the resulting damage from a slow leak behind a shower wall.; policies only cover “sudden and accidental” water losses. Water losses from any flooding are only covered by a separate flood policy.

photo © 2008 Thirteen Of Clubs | more info (via: Wylio)

After examining the most common causes of water damage, I suggest the following list of preventive measures homeowners can take to help avoid extensive non-weather-related water property damage.

(Note: Eric recommends, when replacing pressurized hoses and pressurized hoses behind toilets & washing machine etc, buy only the woven steel mesh variety. They not only last longer but are much less likely to spring a leak and are only a small extra cost – much lower cost than your $500 deductible. When buying these it is also a good time to buy a good fire extinguisher too – one that can be used on any type of fire. It should have the code 2A10BC on it –usable on any type of fire.)

• Leaks from washing machine hoses: Washing machine hoses should be inspected annually and replaced every five years (10 years if metal mesh type) – or immediately, if there are any signs of cracking, bulging or corrosion.
• Leaky plumbing around water heaters: Plumbing should be inspected annually and repaired if there are any signs of leaks or corrosion. When possible, water heaters should be installed in an area with floor drains, or a floor pan the water heater sits in, to minimize damage if leaks should occur. Water heaters only have a life span of about 8 years -12 years depending upon quality but if the water is hard it could really shorten the lifespan. The newer water heaters are much more energy efficient as well.
• Leaks from refrigerator ice machines: Ice maker connections, usually located behind the refrigerator, should be inspected annually and hoses replaced if they appear cracked or corroded.
• Clogged drain lines on air conditioning units: Air conditioning drain lines should be checked yearly.
• Plumbing Leaks: Check in crawl space along pressurized pipe and look for water damage from slow leaks to subfloor. Check ceilings below upstairs bathrooms for any visible water damage. Check under bathroom and kitchen sinks and if possible behind the dishwasher too. (one dishwasher claim which I heard about from a guy that was being canceled by his insurance co, had sprung a leak in the pressurized pipe to his dishwasher while he was gone for a week. The claim was over $200,000! The cost of his replacement policy was triple his prior premium.

Eric Kossian was an Underwriting Specialist prior to starting his own agency, catering to clients who own a home in WA. They specialize in offering the rare home coverage that includes no cap on replacement cost, back up of sewer and drain coverage, and a more comprehensive list of covered perils, usually for less premium than traditional policies. Email: [email protected]

Windermere’s Leavenworth Team Still Dominant

In 2009 Windermere closed the doors of our Leavenworth branch and consolidated all our agents and office staff in Wenatchee.

Our competitors have tried to tell their clients that we are out of business and it’s a question we get asked often when folks interview us to list their Leavenworth home.

While our support staff is located in Wenatchee, we do maintain a conference room in Leavenworth (at Mittenwalder Platz below Dr. O’ Briens Dentistry) and we have lots of agents who still live and work in Leavenworth.

Looking at the 2011 sales numbers, it’s clear that our lack of office isn’t slowing us down. So far in 2011, Windermere agents have sold more houses than any other company.

Single Family Home Sales in Leavenworth 2011 YTD (sides)

• Windermere Real Estate 8 (25%)
• Leavenworth Properties 6 (20%)
• Prudential Mike West 6 (20%)
• The Johns 3 (10%)
• Lake Wenatchee Properties 3 (10%)

Thanks for your trust and dedication. It’s our loyal clients and friends that keep us coming back to work each day.

 

 

 

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Required Disclaimer

NOTE: This representation is based in whole or in part on data supplied by the North Central Washington Association of Realtors or its Multiple Listing Service. Neither the Association nor its MLS guarantees or are in any way responsible for its accuracy. Data maintained by the Association or its MLS may not reflect all real estate activity in the Market.

Chiwawa River Pines Home Prices

The recent article in the Wenatchee World about the court of appeals decision concerning vacation rentals in Chiwawa River Pines  has received 33 comments so far. It’s obvious that this remains a very contentious issue in the neighborhood.

Among the comments, Monte Karnes had a request:

Geordie,if you get a chance and you read this I would be very interested in your “professional opinion” on the effects of the rental ban in C.R.P. the rental ban has existed for a period of time and there should be some data available. I would like to know if values have increased, is there a demand from buyers that there be no “rentals” in a community they would buy in? The H. O. A. position is that by eliminating “rental’s” that we become a “exclusive ” community and there for more desirable property. I have worked with another realtor in the Lake Wenatchee area, we wanted to know the same thing,I had him ask five of the local broker’s the same question. The five all agreed, the ban is harming values in C.R. P. One said that, of there last three client’s they all wanted the ability to rent.(they all spoke off the record).

To answer Monte’s question I looked at single family homes that sold in the Chiwawa River Pines neighborhood in 2009 and 2010. I then compared these sales to that of the rest of the Leavenworth zipcode – including Plain, Lake Wenatchee and Fish Lake and also to sales in the Ponderosa Estates  neighborhood which is probably the most similar neighborhood in the area.

In 2009 and 2010 a total of 129 homes sold in the Leavenworth zipcode.  The median price during this time period was $320,000 with an average sales price of $387,000.

During 2009 and 2010 only 14 homes sold in the Chiwawa River Pines neighborhood.  The median price was $289,500 and the average sales price was $278,000.

Prices in the Ponderosa Estates neighborhood (which does allow nightly rentals) were slightly lower.  Nine homes sold in the Ponderosa Estates with a median price of $285,000 and an average price of $269,000.

However, this isn’t the entire story.

Lot sizes in Chiwawa River Pines are considerably bigger than in Ponderosa Estates. The lots in Chiwawa River Pines ranged in size from .35 to 1.4 acres, while the Ponderosa lots ran from .25 to .39 acres.

Similarly, the house sizes are different too.

The average home in Chiwawa River Pines was 1540 square feet in size while the average Ponderosa cabin was 1205 square feet.

Looking at average Price Per Square Foot, we see that Chiwawa River Pines houses sold for $191 per square foot while Ponderosa Estates cabins sold for $236 per square foot. 

Much of this price discrepancy comes from the effect of foreclosures in the Chiwawa River Pines neighborhood. During this time period there where 4 bank owned (REO) properties that sold in Chiwawa River Pines. In the Ponderosa Estates, there were none.

 I predicted in 2008 that a prohibition on vacation rentals would have a negative effect on prices in the neighborhood.

What do think? Do you think property values are affected by the vacation rental ban?

 

 

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Required Disclaimer

NOTE: This representation is based in whole or in part on data supplied by the North Central Washington Association of Realtors or its Multiple Listing Service. Neither the Association nor its MLS guarantees or are in any way responsible for its accuracy. Data maintained by the Association or its MLS may not reflect all real estate activity in the Market.