Alternate name: Special Form policy Different homeowners insurance forms, such as HO-1, HO-2, and HO-3 policies, have different levels of coverage and correspondingly higher or lower premiums. An HO-3 homeowners insurance policy includes six different coverage sections: Dwelling: Covers damage to your dwellingOther structures: Covers damage to other structures on your property such as a garage or shedPersonal property: Covers damage to personal possessions such as electronics, furniture, or appliancesLoss of use: Provides living expenses if your dwelling becomes uninhabitable temporarilyPersonal liability: Covers financial loss if you are sued by someone injured on your propertyMedical payments: Covers the medical care expenses if someone is injured on your property...

Acronym: UFMIP How UFMIPs Work If you were to take out a conventional mortgage, you may pay as much as 20% or more as your down payment. This type of expense may be out of reach for some homebuyers, so FHA loans exist to help borrowers who otherwise can’t afford a mortgage. If you wanted to get an FHA loan, you’d apply through a lender, and the FHA would guarantee the loan....

Cash in: Cash comes in from customers or clients who buy your products or services. If customers don’t pay at the time of purchase, some of your cash flow is coming from collections of accounts receivable. Cash out: Cash goes out of your business in the form of payments for expenses, such as money to vendors, rent for office space, monthly loan payments, taxes, and other accounts payable. The best way to keep track of cash flow in your business is to run a cash flow report....

What Is the Yuan or Renminbi? China’s currency is called the “yuan” or “renminbi.” The terms have slightly different usages. Renminbi means “people’s currency” and describes Chinese currency in general. The yuan is a unit of measure. One good way to think of the difference is “cash” versus ”dollars.” How the Yuan and Dollar Affect Each Other China used to peg its currency to the U.S. dollar (USD), its largest trade partner....

Bond investors often receive fixed interest payments called coupons. Coupon payments are paid on a regular schedule. They’re most often paid semiannually, although some bonds offer annual, quarterly, or even monthly payments. Clean price is the quoted price of a bond. It fluctuates with changes in economic conditions, interest rates or even a change in the issuer’s creditworthiness. How Clean Price Works Bonds are frequently issued at a face value of $1,000....

By opening many cards, you can rack up a significant number of miles or points or a hefty sum of cash back within a short period. As such, the strategy can be rewarding for savvy credit card users albeit risky for the average consumer. In recent years, credit card issuers have put practices in place that limit churning. How Credit Card Churning Works Many credit card issuers offer attractive sign-up bonuses on credit cards to entice consumers to apply for cards and put a significant amount of spending on them soon after account opening....

A prequalification can be a helpful research tool for consumers since it doesn’t ding your credit score with a hard inquiry like a full application does. However, being prequalified isn’t a guarantee that you’ll get the card. What Is Credit Card Prequalification? A credit card prequalification is an offer that a credit issuer gives you based on preliminary information, such as your estimated credit score range. Prequalifications can happen in one of two ways: Prequalified mail offers: Most people are probably familiar with mailed prequalified credit card offers....

The IRS therefore recaptures your depreciation, requiring that you pay the taxes you didn’t pay during your period of ownership because you were claiming a deduction. Depreciation recapture can cause a significant tax impact if you sell a residential rental property. Part of the gain can be taxed as a capital gain, and it might qualify for the maximum 20% rate on long-term gains, but the part that’s related to depreciation can be taxed at the 25% depreciation recapture rate....

Definition and Examples of Electronic Bill Payment and Presentment Electronic bill payment and presentment (EBPP) is an online billing and payment system used by companies and service providers. Bill presentment simply means delivering bills electronically to customers for their review. Companies (billers) use EBPP to send billing statements or invoices to their customers, subscribers, or clients using technology as an alternative to sending a paper bill by mail. Along with the electronic bill, customers typically receive instructions for submitting payments electronically....

Labor can be categorized in many different ways. First is by skill level; the most basic is unskilled labor that does not require training. Though it’s usually manual labor, such as farmworkers, it can also be service work, such as custodial staff. The next type is semi-skilled labor, which may require some education or training. An example is manufacturing jobs. Labor can also be categorized by the nature of the relationship with the employer....

How Multi-Asset Investing Works There are several different ways you can carry out a multi-asset investing plan. Stocks and bonds make up the bulk of most portfolios, but you can also invest in: Cash (including foreign currencies) Real estate Commodities Precious metals Collectibles A truly diversified multi-asset portfolio will have a mix of many of these assets. You might even decide to invest in all of them. Any asset could outperform or underperform the others at any given time, and a well-diversified investor can handle any scenario....

A non-admitted insurer does not have to follow the same rules in underwriting. They also do not have to set the same rates as admitted carriers. One example of a non-admitted insurance provider is Lloyd’s of London. Lloyd’s is a non-admitted insurer in most of the U.S. In fact, Lloyd’s is not even an insurance company. It is an insurance market. But, they are one of the largest insurance providers in the world....

Alternative definition: Opportunity cost is the loss you take to make a gain, or the loss of one gain for another gain. Consider, for example, the choice between whether to sell stock shares now or hold onto them to sell later. While it is true that an investor could secure any immediate gains they might have by selling immediately, they lose out on any gains the investment could bring them in the future....

During probate, the court will determine whether the will is valid. It will also appoint an executor, locate and value assets, and pay the decedent’s debts out of the estate. The residue will then be distributed to the decedent’s beneficiaries and heirs. Probate laws vary from state to state. For instance, in California, estates under a certain amount can be passed to heirs via a simplified process. If the property is worth less than $20,000, the heirs can ask the court to “set aside” the estate....

Learn more about what Form 4 is, and how you can find and use them as an investor. Definition and Examples of SEC Form 4 Company insiders can acquire stock in several ways. They can purchase the stock with their own funds in a brokerage account, stock purchase plan, or retirement plan such as a 401(k). Or insiders also may receive stock or stock options as part of their compensation....

The form may include: Whom you appoint as an agent for your affairsAn alternate agent if the first is not availableA date, condition, or event that triggers the springing power of attorneyRequirements for proving the event or condition—such as doctors or psychologistsConditions or restrictions on the agentRevocations of any previous powers of attorneyWitnesses’ signatures The event that triggers a springing power of attorney is usually related to a condition that inhibits your ability to make sound decisions....

So what is the average student loan interest rate? Form 2006 through 2021, average federal student loan rates were 4.66% and 6.22% for undergraduate and graduate loans, respectively. However, your rate may be well outside this range, depending on the type of loan you take out, including federal and private student loans, as well as whether you had a cosigner. Here’s an overview of the average student loan interest rates you can expect, along with an explanation of how these rates are set....

The IRS will send you a refund for the difference if there’s any left over after it erases your tax debt. The earned income tax credit was intended to be just a temporary legislative provision, but it is still available today. The amount of credit varies, depending on your income and how many dependents you have. The EITC is calculated by a percentage of income called the “credit rate.” Taxpayers with the least income and largest families receive a greater credit as a result....

Learn more about the Patient Protection and Affordable Care Act, how it works, its advantages and disadvantages, and more. Patient Protection and Affordable Care Act Definition and Examples The Patient Protection and Affordable Care Act is a law that contains comprehensive health insurance reforms designed to help achieve near-universal, affordable health coverage. The law’s provisions create premium and cost-sharing subsidies, lay new rules for the health insurance industry, and create a new market for health insurance purchasing....

That’s where the risk-free rate of return comes in. It’s used as a benchmark to compare different types of assets. Learn more about what the risk-free rate of return is and how it’s used to help investors make important decisions. What Is the Risk-Free Rate of Return? When investors buy stocks, bonds, real estate, certificates of deposits, or any other assets, they expect to get a return on their money....