The S&P 500 was down last week, as investors weigh the likelihood of interest rate increases and bond yields rose. Higher interest rates raise the cost of doing business for fast-growing companies, which can lower their stock price. And higher bond yields make them more attractive for investors than stocks.
Another major risk homeowners face is having someone work on their property that is not insured. It’s easy to have a friend who works for an electrician or HVAC company do a side job for you. Much less expensive, your friends gets some extra income, everyone wins. But sometimes, it’s expensive to be cheap.
What happens if they are hurt on the job, on your property? If it’s a company that is doing work, they should be licensed by the state. And more importantly, they should have workers’ compensation and liability insurance. You should ask for a Certificate of Insurance to confirm they have coverage.
If you have a sole proprietor working on your property, in many states they can file for an exemption from the need to have workers’ compensation insurance because it is just them and they are personally assuming that risk. In Maryland, having a single employee requires the business owner to have insurance. In Florida, insurance is not required until the fourth employee.
If an uninsured worker is injured on your property, you could be liable for medical bills and lost wages. There are a number of variables that would determine your liability. The easiest path is to avoid the potential risk altogether. Hire established companies. Ask for a certificate of insurance before they start work. And read the contract before you sign it.
Your action item this week is to confirm you have filed for your homestead tax credit. You can do an online search for your property.
If you have a question you want answered, email us at info@covingtonalsina.com. Be sure to check out our Facebook page or website to see our upcoming educational events.
CovingtonAlsina is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance. CovingtonAlsina does not provide legal advice.