Eric Kossian, Leavenworth Insurance

When an affluent person buys homeowner’s insurance their lifestyle demands that they have insurance that matches their lifestyle.

For starters, an affluent client has a larger more expensive home ($400K market value+) that should be insured with no cap on replacement cost instead of limited “extended replacement” on 95% of policies offered.  They also need Comprehensive Perils coverage (everything that goes wrong that is not excluded is covered) instead of a list of Special or Broad Perils (only listed perils are covered).

An affluent client typically has fine art, jewelry, musical instruments or collectibles that they will have scheduled coverage for any direct physical loss to the item. Affluent clients typically have higher quantities of items that under typical policies limit coverage for theft of these items:

•  Firearms $2500 limit,
•  Jewelry, Precious Stones,Watches and Furs $1500,
•  Memorabilia $5000,
•  Securities $1500,
•  Silverware $2500,
• Personal Tools $5000

These theft limits are just way too low for most affluent clients since they often own 2 -10 times the theft limits of these items.

Home policies designed for affluent policyholders also typically cover ID Fraud Reimbursement of $25000 or more, Ordinance and law coverage ( to bring home up to current code after a loss) and include Personal Injury Liability.

Speaking of liability, affluent clients are also more likely to be sued because they are more in the public eye, more likely to own rental properties and more likely to have hired household help such as nannies, gardeners, cooks and housekeepers. They need much higher auto, boat and home liability via excess liability coverage of $1 – 10 million or more. Excess liability also covers the family for at fault skiing, snowboarding, boat, recreational vehicle and hunting accidents (think Dick Cheney!) as well as libel, slander, false arrest and defamation of character. An excess liability policy will also cover defense costs, lost wages, interest on unpaid judgments, and even premiums on appeal bonds. A good excess policy will include excess underinsured motorist coverage of a million as well.

Due to international travel a good policy will extend not just liability coverage but also auto physical damage coverage worldwide, so when renting a Mercedes on the Autobahn, the insured would be able to waive the expensive rental car coverage. The policy would also cover any loss of use or diminished value of the damaged rental car.

There are only a handful of carriers that cater to affluent clients with the broader coverage they provide. Believe it or not it might be only a few hundred more dollars a year, and is often a few hundred dollars less, due to large discounts provided by their high credit scores – the single biggest statistical determinate of loss.

Eric Kossian, is an Underwriting Specialist and Agency Principal for Leavenworth Insurance and InsurePro with affluent clients throughout Washington.  He can be reached at Eric@InsurePro.info or by calling 1-877-548-5488.

There have been a handful of properties over the years that would loosely fit that definition, but I have never seen a house that is inhabitable and that a bank would loan money on, for under $100,000 in Leavenworth WA.

Most consumers start their home search  these days on the internet.  It’s pretty common to think that you might have stumbled upon a great deal   that no one else has seen. I guess it’s possible, but there are a lot of folks looking at houses on the internet. Just on this website alone, we get between 1200-1500 visits a month of people looking at the homes on the MLS.

It’s pretty common that we tend to get lots of requests about the same properties over and over again. If the price just seems too good to be true, the house might be:

• Underneath the Bonneville Power Administration high voltage line
• Next to the Burlington Northern railroad tracks
• A former meth lab or drug house
• Within earshot of U.S. Highway 2
• Not accessible by car in the winter
• On U.S. Forest Service “leased” land with an annual rent
• One or more levels has less than 8 foot (or even 6 foot) ceilings
  

  Photo courtesy of Justanuptowngirl on Flickr

Timberframe Lodge Near Stevens Pass

The first place to look is our Stevens Pass real estate search page.   This will take you to a geographic search and show you the closest homes for sale to Stevens Pass.

Unfortunately, there aren’t many homes within 5-10 minutes of the pass. Those that are closest can be found in the Yodelin neighborhood.  Roads are not plowed in Yodelin during the winter so owning a cabin here means walking, skiing, snowmobiling or even using a snow cat for winter access.  The roads are often snow covered into June if not July each year.

Parking Snow Cats at Yodelin

Where should you look for a cabin close to Stevens Pass? (See Map Below)

Yodelin Near Stevens Pass

Stevens Pass Cabins Near Coles Corner

Your best chance of finding a ski cabin close to Stevens Pass is in the following neighborhoods:

•  Sunland Estates
• Highway 2 from Coles Corner to Merritt
• Reiche and Karl Road
• Pine River Ranch Neighborhood (Memory Lane, Conard, Nason)

Leavenworth’s 2011 Oktoberfest  is just around the corner and it’s prime time for vacation rentals in the city.  Many of the most popular vacation rentals in Leavenworth are condos so we thought this would be a great time to look at how the real estate market for condos was performing in 2011.

Leavenworth Condos For Sale

So far in 2011, only 8 condominiums sold in Leavenworth that were recorded in the North Central WA Multiple Listing Service (MLS).  This  is considerably less than last year when 15 had sold by this point in time.

 Four additional condos are under contract (pending) at this point in time. These include one unit at Kahler Glen on the golf course , two at Riverpark Homes (the “yellow building”), and 1 at Alpine Place.

What condos have been selling in Leavenworth?

Sales of Condos at Kahler Glen  have been very slow over the past two years. In 2010 only 0ne of the Kahler condos and one of the Natapoc townhomes sold and in 2011 we only have one sale pending.  Currently there are 4 two bedroom units for sale at Kahler Glen with  prices as low as $175,000.

 All 16 of the condos at Rivepark (The “Yellow Condos” across from the hospital) have now sold.  Two re-sale units are under contract and an additional two units are listed for sale.

New Construction Condos Still Available in Leavenworth?

New construction condominiums are still available at Ski View aka Ski Blick (on Titus Road).  Ten units are currently listed for sale out of the 24 originally listed, though I believe only nine units have actually sold. No units have sold in 2011.

 Just one unit remains available at The  Boulders on the Wenatchee River.  The original units first listed in 2006 have now all sold, including two sales in 2011.

Eight units are currently for sale at Icicle Village Resort. The majority of these units were built in 2005, though some were built in 2007. These are a mixture of re-sale condos and sales by the original condominium developer.

 No condos ever sold at Haus Wunderbar (across from Gustav’s).  According to Chelan County records, this building went back to the bank in June of 2010. In July the building was sold to EGN Legacy out of Wenatchee for $2,226,000.  There were 10 residential units listed here, in addition to some commercial space at street level.  The total listed value of these units was above $5 million.

Click Here to see all Leavenworth Condos for Sale

Condo Dreams Abandoned

A number of condo projects in Leavenworth were not built or have been delayed indefinitely. These include:

• Obststadl (At the Fruit Warehouse)
•  Sonnenterrassen

Construction is well underway at the Blackbird site overlooking the river, but we have unconfirmed rumors that the construction is going to be a hotel and not condos for sale.

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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.

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

Eric@LeavenworthInsurance.com

Eric@InsurePro.info