Homeowners Insurance Lowdown

Repairs before renewal of homeowners insurance policy

You might be required to make repairs to your home before the homeowners insurance company agrees to renew your insurance policy. In this case, the company would give you six months to a year to carry out the required repairs. If the damage that needs to be repaired has been caused by an insured loss, then the company would pay for it. On the other hand, if the repairs arise from an uninsured loss, then you would need to carry them out on your own.

Protecting your house against crime

A lot of times, insurance companies do not insure homes that are susceptible to crime. As a result, it is important for homeowners to take precautions so as to negate this possibility. These steps can also help in lowering the insurance premiums that you would need to pay.

First of all, it would make sense to contact crime prevention officers and take their advice. After inspecting your home, an officer would be able to give you customized guidelines to protect your home.

It is important to install dead bolts, burglar alarms and other security devices on doors and windows. The area around your house should be well lit as most burglars strike at night. Also try keeping trees and shrubs well trimmed as these are the ideal place for a burglar to hide.

With these points in mind and taken care off, an insurance company would gladly offer you an insurance policy and might even lower the premium.

Points to be kept in mind while making a claim

When you purchase a homeowners insurance policy, make sure that you understand the policy properly. In case you have any doubts, clarify these with your insurer at the very beginning as this would largely simplify the claim process. Following that, in case of a loss, you should notify your agent or the insurance company at the earliest possible. Next would come making a list of the damages and ideally a visual proof would work to your advantage when you file the complaint. Try not to make too many repairs till the time that someone from the company has not surveyed the damages. To avoid further damage or to make the conditions livable, try to make temporary repairs else the insurance company might deny your claim. It is important to keep these little details in mind else your insurance policy will not come handy when required.

Home owners insurance policy claim

You got your homeowners insurance policy and ensured that you paid all your premiums in time. Now you have a claim, so it becomes the responsibility of the insurance company to second your efforts.

The company must start investigating your claim within 15 days of receiving a written notice from you. Before beginning the investigation or during the investigation, the company may ask you for some more information. Essentially, it would be your responsibility to process this information at the earliest possible and pass it on to the company so as to ensure that the claim is processed as soon as possible.

Once you provide the requisite information, the insurance company has 15 business days to accept or reject your claim. If the company accepts the claim, then the payment towards the claim has to be made within five business days. On the other hand, just in case your claim is rejected, the insurer would have to give a written explanation for taking the decision.

In certain cases, the company might need an extension on the period for taking a decision. This can be stretched up to 45 days but the company would need to give you a proper notice while elaborating on the reason for the delay. In case of an arson being suspected by the insurer, the company can reject your claim within 30 days of receiving the information and the duly completed paperwork.

In case the company takes too long to pay, you can file a suit. In this case the insurer would be liable to pay the attorney fees and the damages that are usually taken as 18 per cent of your claim, if you win the case.

On what basis can an insurance company deny insurance coverage for your home?

When you are planning to buy a homeowners insurance policy, it is largely up to you to decide which insurer would you like to work with. In certain cases, an insurance company might deny or refuse to work with you.

In this case, it is important for you to know that an insurance company cannot deny, refuse to renew, limit, or charge more for insurance coverage because on the basis of your religion, caste, color, nationality and so on. At the same time, this denial can also not be based on your age, gender, marital status, and so on.

Also, an insurance company cannot deny insurance coverage just because your house is old. Instead, it can raise your insurance cost and leave the decision to you if you want to take up the offer or not. Even in this case, the offer made to you has to be logical and reasoned out.

In case an insurance company does deny you insurance cover, it would have to give a valid statistical evidence to declare that your home presents a greater risk for loss as compared to the other properties that have been insured by the company.

Cancellation and renewal of homeowners insurance policy

Once you have a homeowners insurance policy, in most cases you can rest in peace. At times, you might land into trouble in spite of the policy. This could be in the event of cancellation or non renewal of your policy by the insurer.

In case of cancellation, either you or the insurance company could withdraw or stop the coverage before the insurance policys expiry date. In this case, the insurance company is entitled to refund the premium that you have paid so far. In case during the period of the policy so far, you have received any coverage, then that would be deducted before you receive your premium.

A company has the authority to cancel your insurance policy within the first 60 days only if it identifies an undisclosed additional risk of loss that is not the subject of a prior claim. After the first 60 days, the company can only cancel the policy on grounds of fraud, an increased risk, or default in terms of paying the premium.

In case of ‘non renewal’, the insurer can refuse to renew your policy when it expires. In this case, the insurer has to give you a written notice at least 30 days before the expiry date of the policy. In case the insurance company has not given you a notice then it would be obliged to renew the policy at your request. A company can take the decision not to renew your insurance policy in case you file three or more than three non weather-related claims in a span of three years. At the same time, if the company has not notified you after the second claim, it cannot decide not to renew your policy after the third claim.

Oregonians urged to buy flood insurance

Governor Kulongoski is urging Oregonians to purchase flood insurance at the earliest possible. This comes in wake of the heavy rain fall expected in the area in the near future.
Katu.com reports:

Regular homeowners insurance does not cover flood damage. Further, a flood insurance policy can protect a home from being ruined at a relatively low cost.

Tips to Buy a Perfect Homeowner Insurance Policy

If you own a home or plan to buy a new home, then to get a perfect homeowner insurance policy is very important. The rates of the homeowner insurance have increased over a period of time. The premiums have risen by 7.4 percent in comparison to last year and are expected to rise this year too. But price is not the only concern. You need to keep in mind many more things before deciding to buy a policy for your home.

o Always get a home disclosure report from your agent or the seller's agent if you have bought a new home
o Maintain a good credit report to get coverage under affordable range
o Research for consumer-friendly companies to pick the best one for you
o Once you're in your own home, always be careful about making claims on your policy as frequent claims can make a ground for non-renewal of the policy

Just keep a track of the above mentioned points and get the best policy for you. Happy shopping!

Homeowner Insurance: Are You Underinsured?

With the beginning of the year 2006 we all must have surely made some new plans for future along with the New Year resolutions. But before you plan out other things for this year, take out some time to think and plan for those unexpected things such as a fire, theft, and so on which can throw your life out of gear. No doubt it’s a gloomy thought but it’s very important to keep yourself prepared in advance for any kind of unseen mishappening.

According to a recent survey carried out by Trusted Choice, a group of insurance agencies and financial firms showed that millions of Americans are underinsured in several critical areas. It also showed that many of them are paying for coverage they don't need.

There can be several such areas where you might be uninsured. According to Madelyn Flannagan, a spokeswoman for Trusted Choice many homeowners have taken advantage of low-interest home equity lines of credit to remodel their homes since 2003 but still around 40 percent of them haven’t still updated their homeowner's insurance after making improvements in their homes. Infact many of them aren’t sure if they have the policy or not. This can be really disastrous if your home gets destroyed due to any reason. If your policy is based on the value of your home before you remodeled, you may not recoup the money you spent to add a bathroom or update your kitchen, she said.

Also, many of the Americans don’t have adequate coverage of their valuable items. Almost half of the Americans owning expensive jewelry, fine art, wine or other valuables disclosed during the survey that they didn't have insurance to cover them. Most standard homeowner policies won't cover the cost of replacing such items, Flannagan said. You may need a "rider" or separate policy to insure those items, she said. In addition about a third of families with a new baby said they hadn't updated their life insurance.

So, its time for you to take an effort to review your policies once again to ensure that you are not underinsured!

Public Hearing on the Proposed Premium Raise by Citizens Property Insurance Corp.

After the proposed increase in homeowner insurance premium by Citizens Property Insurance Corp., a public hearing has been scheduled on February 1. The state insurance regulators have organized the hearing. Sun-sentinel.com reports:

The hearing will take place at the Manuel Artime Theater, 900 SW First St., Miami from 10 a.m. and 6 p.m. Anyone with questions about the hearing should call the Department of Financial Services at 800-342-2762.

Allstate Insurance Corp. Not to Pay Temporary Living Expenses of Texas Policyholders after Rita

The Texas policyholders who were living out of their homes after Hurricane Rita have to pay their temporary expenses themselves. Allstate Insurance Corp. would not pay any amount to the policyholders. The state district judge Lora Livingston rejected the request submitted by the Texas Department of Insurance that asked Allstate to pay for the temporary expenses of the policyholders who could not return to their homes because of power outages, impassable roads and other conditions. The policies sold by Allstate stated that the company would not be responsible for any kind of expenses from loss of use of a home unless the structure was damaged. DentonRc.com reports:

Jim Hurley, a spokesperson of Texas Department of Insurance said, the ruling of the court disappointed them but they will continue to fight for the homeowners of Texas. He also added that other major insurers, who use policy forms similar to Allstate's, paid the temporary expenses of policyholders that Allstate refused to pay.

Three Elected Representatives from New York Join Allstate

Steve Israel and Carolyn McCarthy have joined the State Senator, Mike Balboni and a representative from Allstate to urge the federal government to create a nationwide federal disaster reinsurance fund.  This alliance came as a result of increased government involvement in providing reinsurance for catastrophes. Insurancejournal.com reports:

The Homeowner's Insurance Protection Act of 2005 has been co-sponsored by Israel and McCarthy. It is a bill to create a federal reinsurance catastrophic fund as a federal backstop for future natural disasters.

AAA can now offer homeowners insurance policies to qualified members

The state insurance division has given a green to AAA, Hawaii's affiliated insurer to offer homeowners insurance policies to qualified members. The insurance would be sold by the company through local agents, and insurance payment plans and the facility of electronic payment would be offered through AAAuto Pay. Businesswire reports:

The company would offer discounts on homeowners insurance policy for smoke alarms and fire extinguishers, burglar alarms, newer homes, multiple policies and more. In addition, loss assessment coverage, personal property replacement coverage and extended replacement cost coverage would also be made available for consumers.

Hurricanes responsible for a staggering increase in amounts that insurance companies need to pay

The last year saw a staggering increase in the amount that US homeowner insurers and casualty insurers and  had to pay. With more than 90 per cent of the loss attributed to the hurricanes that hit Florida and the Gulf states, the companies are expected to pay close to $56.8 billion for 2005 catastrophes. Sun Herald.com reports:

According to the ISO's Property Claim Services unit, the tally for last year was more than double the previous record of $27.3 billion paid out in 2004 to cover the losses homeowners and businesses sustained in hurricanes and other storms. The organization also reported that the fourth quarter was the most costly on record in the past decade, with Hurricane Wilma responsible for $8.4 billion of the quarter's total $8.9 billion in insured losses.

Homeowners insurance policy not necessary when applying for a loan

A number of banks while offering a loan facility to consumers, make it compulsory for them to have a homeowners insurance policy. In reality, there is no law making homeowners insurance compulsory, instead the move is intended to secure the bank itself. In the bargain, at times homebuyers end up over paying for insurance. Helderberg.com reports:

It is expected that once the new National Credit Bill is enacted, within the next few months, homeowners will be able to exercise the right not to accept the bank imposed insurance. They would have the option of seeking a cheaper rate for insurance policies that could lead to a saving of up to 30 per cent.

Recommended, a checklist for homeowners insurance policies

Getting a homeowners insurance policy isn’t as simple as it sounds, even though the options available are numerous. The jargon used in the documents for the policy can truly confuse people. And as a result, a lot of times, you might not realize what all is covered in your policy and what is not.

Keeping this in mind, last year state Chief Financial Officer Tom Gallagher assembled a task force. The task force has recommended that to deal with this problem of a lack of information communication, Florida lawmakers should make it mandatory for all insurance agents to review a coverage checklist with customers before selling the policy.

The layout of the three page checklist, compiled by the task force, is simple and includes basic information that is required by consumers alongside with a list of perils. The insurance company would need to indicate the ones that are covered under the insurance policy. This checklist would encourage discussions and clarify the doubts that a consumer could have while buying a homeowners insurance policy. Palmbeachpost.com reports:

Gallagher's office will submit the checklist to the Florida Office of Insurance Regulation, which will create the final version. Then the Financial Services Commission, made up of Gallagher, the governor and the attorney general, must approve it.

Homeowner Insurance: Steps to Prevent Losses

When a disaster strikes, unfortunately many homeowners suffer losses to their homes and possessions. But it can be always great if we take can take some steps to minimize the extent of loss and processing of a loss a little bit smoother.

You can easily file a claim for the losses by keeping an inventory. It’s really helpful to get your larger possessions engraved with an identifying mark in addition to the written inventory. You can get the etching equipment on loan from your insurance company or local police. You can also purchase this type of equipment in a hardware or locksmith store. This type of engraving will be important if any of your possessions are stolen as it will help to recover the stolen item fast. Don’t forget to record the serial numbers of any electronic or computer equipment.

Don’t forget to check the smoke alarms of your home. Always maintain them to get an early warning of a fire. This simple precaution can save your property from any damage from fire. Small fire extinguishers, strategically placed in your home, can help keep a small fire from becoming a much larger one.

Always make it a practice to inspect the locks on your front door or any other door that can give access in your home. Use electronic security systems to make your home safe. These systems set off an alarm whenever someone enters a home without using an appropriate security code.

It’s not very difficult to mange disasters if we are ready to tackle them with our management.

Homeowner Insurance: Tips to Avoid Scams after a Disaster

You need to be cautious if your home has been unfortunately destroyed by a natural disaster such as hurricane, wildfire, or any other disaster. If you are not cautious then you can fall a prey to the dishonest service providers. These providers can take easy advantage of the disaster victims and their mental state under which they are unable to think clearly if they have suffered severe losses of home and valuables. To avoid any such cheat, take to your insurance agent and take his or her advice. Ask your agent to recommend you some service providers operating in your area. Here are a few do’s and don’ts for hiring service providers:

Don’t take any hasty decision and sign any contract with any company.  Collect estimates from different companies for the proposed work.

Do not spend a big amount on temporary repairs on encouragement by building contractors. If you pay a contractor a large sum for a temporary repair job, you may not have enough money for permanent repairs.

Always investigate the track record of the builder or the contractor and look for the professionals with a good reputation.

Looking beyond the price while buying a homeowners insurance policy

When buying a homeowners insurance policy, the first criteria that we all consider is the price that we would be paying. take my advise, look beyond that.

Consider the insurance companys financial rating and complaint index before taking a decision. The financial rating will indicate the companys stability and financial standing while the complaint index would provide an insight into the customer service that the company offers.

A new home? Get a discount on the homeowners insurance policy premiums

A new home? Well, you qualify for a discount on the homeowners insurance policy premium. In case your house was built in the last 10-15 years, most insurance companies offer a discount. Also, a newly renovated house qualifies for a similar discount. The construction type of your house can also affect the insurance premium. Usually it costs more to ensure a house made of wood than of concrete. So find out the little details that can go a long way in affecting the premium that you pay.

No claim in the last few years, well, get a discount on the premiums!

Who does not want to save an extra buck wherever possible? Well, I definitely would want to. So homeowners, here is a little tip for you...

If you have not had a claim under your homeowners insurance policy in the last three to five consecutive years, you could receive up to 15 per cent discount on your insurance premium. The amount of discount varies from company to company. So go ahead and find out if you qualify and what is the discount percentage that your company offers.

Update your homeowners insurance policy before its too late

Are you safe just because you have a homeowners insurance policy. In my opinion, 'No'.

Homeowners in California are being urged to take the requisite measures to guard themselves against financial ruin in the event of a natural catastrophe.

Wake up people, before it is too late and update your homeowners insurance policy to ensure that your coverage is adequate. Take stock of your possessions and have a back up plan ready just in case...

Selecting the right company for a homeowners insurance policy

With the numerous options available, selecting the right company to get a homeowners insurance policy might pose a little difficulty. Remember, at the end of it, the policy should guarantee your convenience.

Select a company that ideally has a long standing reputation so that you know that you are in safe hands. Following that, pick an insurance company that has trained representatives who can patiently and knowledgeably address your queries.

Also, with time your insurance needs would change, so pick a company that offers a wide range of coverage.

In the end, make sure that you understand the policy and the coverage that it offers. Do not get taken in by fancy promises, research and analyze before you take a decision regarding the right insurance company and the ideal home owners insurance policy.

Your Pet can Cost You a Raise in the Homeowner Policy Premium

Homeowners who have pets need to be more careful now. If the insurance company considers your pet as a vicious or dangerous breed, then you might end up paying higher premium. If gone far, there is a risk of not getting a policy even. Delmarvanow.com reports:

Jeanne Salvatore, Insurance Information Institute said, “Different companies have different policies regarding homeowner's insurance and pets. The policy can be cancelled or the rates hiked if your pet has a history of biting people, even if it’s not in the list of dangerous breeds.”

Rise in Homeowner Insurance Premiums due to Depleted State Catastrophe Fund

The homeowners in Florida will end up paying higher premiums due to a shortfall in the state fund that helps the homeowner insurance companies to pay the claims after hurricanes. The increase in premium is still not fixed but can vary from less than 1 percent to as much as 3 percent.

Two consecutive seasons have tapped the Florida Hurricane Catastrophe Fund and now a cash cushion needs to be rebuit before the year 2006 hurricane season. Tom Streukens, the state's deputy insurance commissioner said, “ The Fund has an estimated $500 million after payouts from Hurricane Wilma. The fund had about $3.1 billion before Wilma, and about $2.6 billion is set aside to pay insurance companies for their Wilma claims.” Sun-sentinel.com reports:

An average of 12 percent of the premiums paid by the homeowners goes into the catastrophe fund.  But, Jack Nicholson, the fund's senior officer said that this amount is expected to rise because of the hurricanes.

New Bills Approved to make Flood Insurance Clearer for Homeowners

As per a bill approved by the state house on Friday, the homeowners would be required to refuse flood insurance in writing. Mississippi lawmakers hope that after House Bill 982 or Senate Bill 2014 becomes law, the basics of home insurance will be clearer. Hattiesburgamerican.com reports:

Many homeowners were surprised to know that their insurance policies didn’t cover flood damage to their houses and the contents inside after hurricane Katrina ripped Mississippi Gulf Coast on Aug. 29.

Catastrophe fund nearly drained, effect expected to be passed on to consumers

Reports have indicated that the Florida Hurricane Catastrophe Fund is nearly drained after two back to back busy hurricane seasons. This also suggests that a cash cushion needs to be rebuilt to deal with the upcoming season.

Also, a shortfall in the state fund that helps homeowners insurance companies pay claims after hurricanes could imply higher premiums for homeowners. The exact increase has not been calculated as yet, but it could be anything between less than 1 per cent to upto 3 per cent.

On an average, 12 per cent of the insurance premium paid by homeowners goes into the catastrophe fund. Even, this percentage is expected to increase following the hurricane season. This additional cost would also be passed on to consumers. The catastrophe fund offers discounted reinsurance that is insurance for insurance companies, so as to enable them to pay losses should a hurricane cause more than $4.5 billion in insured losses. Sun Sentinel reports:

The catastrophe fund is starting 2006 with an estimated $500 million after payouts from Hurricane Wilma. The fund had about $3.1 billion before Wilma, and about $2.6 billion is set aside to pay insurance companies for their Wilma claim.

Atlantic Preferred proposes hiking homeowners insurance premiums

Atlantic Preferred, one of South Floridas largest homeowners insurer, is planning a state wide average increase in homeowners insurance premiums. The company is considering an increase of 18.2 per cent for single family home premiums, and 22 per cent for condo policy rates. This is in line with the request of other insurance companies, including Nationwide Insurance Co. and Allstate Floridian Insurance Co.. 

If the request is approved by the regulators, then the increase would be effective starting June 1. State regulators have 90 days to review the proposed increase and take a decision. Since the proposed increase is more than 15 per cent, the company is required to have a public hearing so that the customers can share their views regarding the increase.

The request to increase the premiums is based on the past losses suffered by the company and on computer models that predict impeding losses due to hurricanes. The companys last increase was approved in 2004. Sun Sentinel reports:

Atlantic Preferred insures more than 50,000 people in Broward and more than 33,000 in Palm Beach County. The company also insures more than 17,000 people in Miami Dade county, and intends to raise rates by an average of 22.7 per cent for single family homes and 23.4 per cent for condos here.

Homeowners insurance holders urged to re-evaluate possessions following the festive season

Following the festive season, homeowners should review their home insurance policies. They need to make sure that their policies they have enough contents insurance. A number of home insurance policy providers, including Halifax Home insurance, have warned the insurance holders that they might have household contents worth more than what is declared in the policy. This is largely attributed to the expensive gifts received during the festive season. This would imply that the insurance cover would be insufficient in the event of a fire or burglary. Many insurers increase their level of cover automatically following Christmas, yet many of these extensions would have expired by now. As a result, it becomes imperative for people to re evalute their possessions post the festive season. QCK.com reports :

A study by Cornhill Direct Home Insurance discovered that the average UK household gains an extra 600 pounds worth of goods over the festive season. It is vital for people to update their insurer with any changes to their contents value and be aware that some insurers, but not Halifax, penalize customers who underestimate the value of their belongings.

Does your insurance policy offer enough coverage for rebuilding your home?

Most homeowners do not carry enough insurance to cover the cost of rebuilding their homes. As a homeowner, when you are purchasing an insurance policy, it is important to understand that it is not enough to base your homes replacement value on what you paid for it, or what the market price for it is.

While rebuilding a house, you would also have to update it in terms of technology as well as trends, as a result, the cost is bound to increase. At the same time, the cost of building materials also increases with time.

You would also have to take into consideration the fact that your insurance agent may not necessarily do a good job of determining the insurance cover that you require. Ideally before selecting a policy, you should consult a number of insurance agents and also get quotes from different insurance companies. 

Most homeowners insurance policies that are available now-a-days are called 'extended replacement coverage' or 'specified additional amount of insurance'. These provide coverage up to the dwelling limits specified in the policy and an additional amount of up to 20 per cent.

Even if you have a 'guaranteed replacement coverage', the chances are quite strong that your insurance policy would be converted to one with a limited coverage. As a result, this places a lot more responsibility on the homeowner to ensure that the coverage is adequate. Ideally, even if you already have a homeowners insurance policy, you should examine it closely to determine the exact amount of coverage. 

Renters insurance policy, a must for tenants

As a tenant, it is important for you to know that your landlord might have a homeowners insurance policy for the house that you are living in, but that does not imply that your personal belongings are also insured. Studies have indicated that almost two thirds of the Americans living in rented accommodation, do not have a renters insurance. In this case, if your personal belongings are damaged due to fire or for any other reason, the homeowners insurance would not be liable to pay for the damage.

The average renters insurance policy costs between $10 and $12 per month for $30,000 in property coverage and $100,000 in liability coverage. To determine the coverage that you would require, the first step would be to carry out a property inventory. This will also help you in deciding the appropriate level of deductible. Replacement cost coverage would give you the amount of money required to replace the damaged items while an actual value coverage reimburses only the current market value. Replacement cost coverage is more suitable if you possess equipment like computers and electronic devices as their value depreciates rather quickly. Also, before selecting the insurance policy, you would need to take into consideration the items that are included. If you live in a flood or an earthquake prone area, you would need to purchase separate coverage. Also, if your landowner has a policy that covers damage caused due to earthquake or floods, you might not need to purchase a separate policy. Ideally check with your landowners insurance company but just because your landlord has a homeowners insurance policy, do not ignore that as a tenant, you would require a separate policy.

Homeowners insurance policy should include wind damage if your house has trees in the periphery

Homeowners, when building a new house and purchasing a new homeowners insurance policy, should keep in consideration the proximity of trees. Most homeowners insurance policies include wind damage. And if your new house has trees in the periphery, you should ensure that your policy includes wind damage. In case a tree from your garden falls into the neighbors property because of wind, the neighbors insurance policy would cover the cost of the damage caused.

Californians urged to get flood insurance

With the onset of the wet season in California, insurance commissioner John Garamendi, has urged homeowners to get flood insurance in addition to their basic homeowners insurance. This stems from the fact that the chances of a flood in the area cannot be ruled out completely even though certain areas are categorized as 'moderate risk' or 'low risk ' areas. CBS 13/UPN 31 reports:

Only a handful of California policyholders, that is 213,000 of 13,000,000 residences have flood insurance. The Federal Emergency Management Agency urges Californians to get insurance now, as the flood policies do not go into effect until 30 days after the papers are signed.

Ameriprise and Costco renew partnership agreement

Ameriprise Auto & Home Insurance and Costco Insurance Agency Inc., a wholly-owned subsidiary of Costco Wholesale Corporation, have renewed their current partnership for five years. With this agreement, Ameriprise Auto & Home will continue to be Costcos exclusive source of auto and homeowners insurance for offers made directly to Costco members in participating states. Business Wire.com reports:

The opportunity to purchase insurance coverage from Ameriprise Auto & Home Insurance is available in 38 sates and Washington D.C. This co-branded program is available to more than 17 million Costco member households.

The Cost Of Insurance

The premiums of homeowner insurance vary from company to company. To get the best value of your insurance, take some time out to shop around.

Several factors decide the cost of homeowners and tenants insurance. These include the location of the home, the age and type of the building, the use of building whether its residential or commercial enterprise. In addition choice of deductibles, local fire protection, application of discounts, and the scope and amount of insurance coverage you purchased are also considered as important factors.

For example, if you live in a brick building rather than a frame building, it will cost you less to insurance your home against fire. Also, the location of your building contributes to the cost of fire insurance, as some of the places are more equipped against fire. Some residential areas have a greater protection against crime and vandalism which directly the cost of insuring against such losses.

Each of New York City’s five boroughs constitutes a separate rating territory for homeowners insurance. In the remainder of the State, rating territories are based upon the quality of the community’s public fire protection, ranging from Class 1 (the best protection) to Class 10 (unprotected).

With a deductible on your policy, the premium cost of your policy lowers down. By choosing a deductible amount, you can share the burden of the loss up to that amount which you can afford. Contact your insurance company to see if they offer higher deductibles, such as $500 and $1,000, on your homeowners’ insurance coverage.

Homeowner Insurance and Your Adjuster

The homeowner company at no extra charge provides an adjuster to you. You can also contact any independent adjuster who has no link up with your insurance company. But, in this case you’ll have to shell out extra money as a part of the fee of the adjuster. Such independent adjusters come under the category of public adjusters and can help you anytime in setting your claim. Following are a few points you need to know:

• Your public adjuster can charge you as much as 15 percent of the total value of your settlement in return of your services. This fee isn’t covered by your insurance policy. The insurance department of your state can set the percentage charged by the adjusters in case of natural calamities.
• Before deciding on any public adjuster, check for his or her qualifications by calling your state insurance department.
• It’s a good idea to avoid those adjusters who go from door-to-door after a major disaster, unless you are sure they are qualified.
  

Response of insurance companies to Katrina inept

Many insurance companies were ill equipped in their response to Hurricane Katrina, exhibiting patterns of callousness, unfairness, and generally inept performance, according to a report recently released by the Americans for Insurance Reforms (AIR). The report says that in some cases, the conduct of the insurers worsened the suffering of policy holders. 

Canadian Underwriter.ca reports:

Many insurers were unwilling to pay their policy holders anything. The report claims that the P&C insurance industry appears to be using disaster as a rationale for rate increases and for departure from certain areas.

Damages covered under homeowners insurance policies

When you purchase a home insurance policy, there are some basic disasters that are covered by the policy. These include damage caused by fire or lightning, windstorm or hail, explosion, riot or civil commotion. Also included are damaged caused by aircraft, smoke, vandalism or mischief, theft, volcanic eruption.

Certain policies also include loss due to falling objects, weight of ice, snow or sleet, accidental discharge or overflow of water or steam from within a plumbing, heating, air conditioning or automatic fire protective sprinkler system, or from household appliances.

However, flood coverage and earthquake coverage have to be purchased separately. Flood coverage can be purchased directly from your homeowners insurance agent. You can get replacement cost coverage for the structure of your home, but only actual cash value coverage is available for your possessions. Flood insurance is available for renters as well as homeowners.

Earthquake coverage can be a separate policy or an endorsement to your homeowners or renters policy. This coverage is available from most insurance companies. In earthquake prone areas like California, the policy comes with a high deductible.

As far as maintenance damage is concerned, it is your responsibility to take precautions to protect your home from damage. Your insurance policy will not cover damage due to lack of maintenance, mold, termite infestation and infestation from other pests.

Selecting the best home insurance policy

Getting a homeowners insurance policy is more or less a necessity and a number of choices are available for these. As a result, selecting the one that suits you the best might be tough. This essentially stems from the fact that different companies offer different packages and varied rates. Policies and protections differ and so do the costs.

To determine which policy is best for you, firstly you should make a list of valued possessions and the types of coverage you would like to have. Following that you can consult an insurance broker and understand which policy offers what. Real estate brokers, attorneys and financial planners would be able to recommend local insurance brokers. You may find all the coverage that you want in a general form or you may realize that you need special coverage. This special coverage might come at an extra cost.

There are certain basic facts that you would need to consult your insurance broker about before purchasing home insurance. You would need to find out which form works best in your case. Further, you would need to understand what is included in your form and what is excluded. If you have an office at home or run a home based business, you will have to ask your insurance broker if in this case you require any specific additional coverage. Also, as regards to your personal possessions, find out what all would be covered.

To ensure that you get the best rates, you can also ask your broker about the policy deductible. In case of certain insurance companies, if you buy both auto and home insurance from the same company, you might get a discount on the premiums. Certain home improvements carried out, can also lead to lower premiums.

So, before finalizing the home insurance policy, make it a point to take into consideration all these factors to determine exactly what rates are you getting and which policy is most suited for you.

Allstate decides not to offer homeowners insurance policy hereon

To limit its exposure to intense storms expected to hit coastal areas in the coming years, Allstate, the largest provider of home owners insurance in New York, is not offering any new homeowners insurance policies in Long Island, New York or Westchester County.

The Northbrook, Ill based company is the second largest home insurance policy provider in the US. Company sources informed its 600 area brokers that beginning this January, All state would no longer offer new home owners insurance policies.

Allstates decision has been largely influenced by the damage caused by Hurricane Katrina. According to reports, insurance companies, including Allstate, lost close to $40 billion due to Katrina alone. Meteorologists claim that the US is in a cycle of severe storms that may hit the coastal areas repeatedly in the next 15 years.

Allstate is the only one amongst the giant insurers that has ceased to offer homeowners policies in the downstate areas. Allstate did not need the permission of the state insurance department to take this decision. Newsday.com reports: 

Allstate that has 18 per cent of the homeowners insurance market in the state, and 25.9 per cent of the homeowners market in the eight affected counties, will continue to cover current policyholders and will still offer auto and other types of insurance. At the same time, business which would have gone to Allstate is being readily picked up by other carriers, thereby continuing the availability of insurance.

High deductible, low premium

When you purchase a home insurance, the insurance company takes into consideration a number of different factors before computing the premium. These also include the deductibles. The deductible is the amount of money that you have to pay towards a loss before the insurance company steps in.

Typically, home insurance deductibles start at $250. The higher your deductible, the more you save in terms of the premium. In most cases, if the deductible is up to $500, you save up to 12 per cent on your premiums, if it is $1,000 you can save up to 24 per cent. If the deductible touches $2,500 you can save up to 30 per cent and in case it is $5,000 you can save up to 37 per cent.

While deciding on the deductible to take the advantage of lower premiums, you would have to make sure that you have the capacity to pay the high deductible if the need arises.

Shift in the Line of Demarcation may lead to Reduction in Policies for the Homeowners of South Florida

The homeowners of South Florida can have a reduction on their policies if they have their properties located in a strip of land east of I-95. This comes as a result of a proposal which can be implemented due to the shift of the line of demarcation as a far east as U.S. Highway 1, or even A1A, which often runs within a few hundred feed of the Atlantic Ocean. Insurancejournal.com reports:

This proposal will help insurers of last resort in Florida to meet a state mandate to reduce its policy base by 25 percent by the end of 2006. Presently, all the homeowners with property in east of I-95 have wind insurance policies written by Citizens Insurance Corp.

Lawsuit filed against State Farm Insurance by Homeowners of Gulf Coast

A law suit has been filed against State Farm Insurance Company by a Biloxi attorney and the homeowners living along the Gulf Coast. The homeowners had purchased all perils homeowner insurance policy from State Farm. But, the company has simply refused to pay for hurricane damages. The lawsuit was filed by Attorney Richard T. Phillips of Batesville in U.S. District Court in Gulfport on behalf of attorney Judy Guice and homeowners in the area.

The lawsuit says that State Farm is committed to pay the homeowners to cover up all the losses done to their homes by the hurricane especially if they have purchased all perils policy. Guise said, "The policy states that all the damages will be covered by the insurers covered unless it would have occurred only as a result of the tidal surge. Since the wind damage is a covered peril which contributed to the damage, so the insurers should pay for the damage." Consumeraffairs.com reports:

According to State Farm, any damage done to the property by water that includes tidal surge is not covered under Guice's homeowner's policy. The argument in both cases is whether a wind-driven storm surge is the same as flooding.

Buying a home insurance while purchasing a new house

At the time of buying a new home, you should also consider buying a home insurance. In a new house, the electrical, heating, and plumbing systems and overall structure are likely to be in a better condition than those of your old place. This can lead to a discount on the premiums that you need to pay for the home insurance. Also, if you have been with the same company for several years, you may receive special consideration. Most insurers reduce the premium by 5 per cent if you stay with them for three to five years. Some insurance companies even offer a discount of 10 per cent after a period of six years of continued association. As a result, it can be beneficial to take a home insurance while buying a new house. Ideally, get quotes from different insurance companies but at the same time do not rule out the possibility of staying with your old insurance company. 

Bush supports Overhauling of Citizens Property Insurance

Gov. Jeb Bush is likely to suggest the state lawmakers to consider the overhauling of Citizens Property Insurance which is considered as the last resort by many homeowners. Citizen had run up huge deficits due to the hurricanes. Bradenton.com reports:

Bush has completely opposed the idea of using tax dollars to cover up the huge claims which the company has faced in the last two years. This overhaul is likely to invite a controversy.

Slashing home insurance costs

Getting a home insurance is not a tough task, but selecting the right insurance is definitely difficult. The options available are numerous and undoubtedly each one of us would want to make an effort to cut the cost of our home insurance as much as possible. Following a few simple guidelines and keeping a few pointers in mind can truly help you in achieving this.

Nowadays a wide variety of discounts are available, and these are determined on the basis of the different criteria ranging from the type of building material used to construct your house to how close you live to the fire station.

The discounts also vary across states and insurance companies. Ideally, you should get quotes from several insurance companies and then select the one that suits you the most. A number of companies offer a higher discount and a better deal if you buy both, your home insurance and auto coverage from them.

Remember, your house and its contents rae at risk from seasonal threats, natural calamities, thefts, fire, etc. On the other hand, the land is not. So, when calculating the amount of insurance that you need to buy, do not add the cost of the land.

Insurance companies take into account items such as dead bolt locks, burglar alarms and smoke detectors installed in the house and offer discounts accordingly. If you install a sophisticated home security system you might be able to get an even higher rate of discount. Smoking accidents account for a large number of accidents, so if no one in the home smokes you might get a discount too. 

Once you have selected the insurance company to deal with, you can pick each of these points and determine the different deductions applicable to you. This would substantially lower your home insurance cost.

Read more at Insure.com.

Homeowners’ to Pay Extra Premium in 2006

All the homeowners may have to shell out extra premium in the coming months. This can be attributed to the devastation caused by the hurricanes in the year 2005. The property taxes are also expected to rise due to a raise in higher real estate values as forecasted by Bob Allsbrook, the chief economist of AmSouth Bank. Clarion-Ledger.com reports:

The consumers will end up paying higher credit card payments and higher mortage payments for mortgages with variable interest rates in the year 2006. Overall, the economy is expected to rise by 3 to 3.5 percent.

Mississippi Homeowners to Receive Grants to Cover the Damage Caused by Hurricane Katrina

Gov. Haley Barbour of Mississippi has assured that the homeowners who lost their houses in Hurricane Katrina can apply for grants by February despite not being in the flood zone. An amount of $10 billion federal aid allotted for the recovery of the damage caused by Hurricane Katrina. Mississippi will need to scrape together several hundred million dollars to match up the amount of this aid. The aid will help to reimburse the debris cleanup costs and grants for homeowners. Around 35,0000 homeowners can qualify for the grant, but the number is expected to rise. According to Rep. Diane Peranich, D-Pass Christian, the criteria to aid owners of water-logged homes is too narrow. Clarion-Ledger.com reports:

Barbour said,"An amount of $4 billion will be spent on the grants to enable recovery of the homeowners living on the Coast." The coastal homeowners can apply to a maximum of $150,000 grants.

Sales-Tax Money To Be Used To Cover Up Citizens Deficits

The homeowners of Florida may not have to pay Citizens Property Insurance Corp. if the state-backed company faces any losses in case of future storms. This may come as a result of the approval of a plan by the Legislature, which will be pushed by two South Florida lawmakers in upcoming session this spring. Sun-sentinel.com reports:

The company will utilize extra sales tax money from hurricane-related spending toward paying down Citizens deficit. The legislation is sponsored by state Sen. Steve Geller, D-Hallandale Beach and state Rep. Tim Ryan, D-Dania Beach.

Home Inventory: An Essential Part of Homeowner Insurance

It always pays to keep your home inventory up-to-date. If some mishappening like a fire happens in your house, you won’t be able to remember all your belongings which you must have accumulated over years. Keeping an updated home inventory will help you to get your insurance claim faster. In addition to this, you can verify your losses for filing your income tax returns and can also purchase the appropriate amount of insurance as per your requirements.

The first step to update your home inventory is to make a list of all your possessions. You can describe each and every belonging and add more details by describing from where you bought it, its make up and model number, and so on. It is important to attach any sales receipt or purchase contracts if you have any. For items like electrical equipments, it’s a good idea to note down the serial number found on the bottom or back of the appliance. For clothing, you can note down the number of the items by dividing them in different categories such as pants, shoes, and coats and make special notes for those which are highly valuable.

A few useful tips to make your inventory list :

1. If you are setting up a new home, making an inventory list is an easy job. But, if you have been living in the same house creating a list can be a difficult task. Still, it’s better to have an incomplete inventory than nothing at all!
   
   
2. Start with recent purchases and then try to remember what you can recall about older possessions.
   
   
3. The market value of items such as artwork, jewelry keeps on changing. Check with your agent if you are having the appropriate coverage for these items or not.

Is Jewelry Covered Under Homeowner Insurance Policy?

A standard homeowner insurance policy provides coverage to valuable items like jewelry and other precious items. If you lose these items because of fire, windstorm, or theft, you can claim the loss under your homeowner insurance policy.

But, there are certain limits set for items like jewelry. As per this limit, the insurer will not pay you more than a fixed amount as specified in the policy. You can increase your coverage by raising the limit of liability for individual pieces by purchasing floater policies. This is one of the cheapest available option, though there is a limit on the amount which you can claim if you happen to lose any individual piece. You should get your jewelry items professionally appraised before you buy any floater policy. You can also schedule each piece of your jewelry. This can be expensive in terms of premiums but offers a broader protection in comparison to the floater policies.

What is Renters Insurance?

If you do not own a home and live in a rented place, it’s always a good idea to have sufficient knowledge about renters insurance. It aims at providing financial protection to you against any loss or destruction of your possessions if you stay in a rented house or apartment.

Any burglary, fire, or destruction or loss of possessions is not covered under your landlord’s insurance. Renter’s insurance will cover all your possessions against losses from fire, lightning, theft, vandalism, windstorm and water damage. It also covers your responsibility towards other people if they are hurt at your home by you, your pet, or any family member just like the usual homeowners’ insurance policy.

If you are unable to live in your apartment or home because of some mishappening such as fire, water logging, or any such trouble your renter’s insurance will cover your additional living expense. Your additional living expenses in comparison to the normal expenses will be reimbursed in most policies under certain set limit.

Homeowner Insurance: What to do if you are unable to get a coverage?

It can be a difficult for you to obtain a homeowners’ insurance policy, if you live in an area considered as a high risk zone or plan to move to any such area. Your home is considered to be in a high risk area if it is located in area prone to extremities of weather such as hurricanes, tornadoes, or windstorms. In addition to this, if your home has an old heating or plumbing system or you live in an area where crime rate, theft, and vandalism are high, your chance of getting a homeowner’s policy reduces.

You need not panic if you have been turned down by a few insurers. It’s a good idea to look for some other options. If you are shifting to a new home, ask the real estate agent, builder, or the mortage lender to help you in getting the names of the companies which write in that particular area. On the other hand, if it’s an existing home it’s advisable to ask the previous owners who insured the same house.

Incase you are still unable to get your home insured consider the following points:

• Enquire about the insurers from the neighbors.
  It’s a good option to take help from people who are already living there. You can get the names of the agents who may have adequate knowledge about the risks in your neighborhood.

• Ask for help from your current insurance professional.
  You can take advice from your agent who previously insured your home, car, or business. If you have problems in the condition of the house rather than the place try to find out what all improvements or disaster-management features are required to make your home come under coverage.

If none of the above described things work, you can find out if your state has a special insurance plan known as shared market, which has two types of plans namely fair plan and beach and windstorm plan.

An Investigation to Avoid Withholding of Insurance Checks in Louisiana Announced

Charles Foti, Attorney General of Louisiana has announced an investigation to ensure the withholding of insurance checks of people whose homes were damaged in this year’s devastating hurricanes. The victims are forced to borrow money or take out their savings to repair their homes which are covered under homeowner insurance. ArgusLeader.com reports:

People of Louisiana are still struggling for their settlements with the insurance companies. On receiving their settlement, they have to fight with the mortage company to
release it in on timely basis.

Two Allstate Units Agree to Re-Evaluate the Coverage Needs of Homeowners After Arizona Fire

Consumers can have a sigh of relief after two Allstate Insurance units, Allstate Insurance and Allstate Indemnity have decided to re-evaluate the coverage needs of homeowners. Allstate Insurance is one of the leading insurance provider of U.S. the step came after the consumer complaints after a destructive 2003 wildfire on Mount Lemmon. The two Allstate units are the latest of the seven major insurers to agree to similar consent orders with the Arizona Department of Insurance. Allstate has agreed to contact the policyholders to get the information on property improvements, to recalculate, and to allow policyholders to change their policy limits accordingly. Azstarnet.com reports:

There is a possibility of more major wildfires in Arizona. The department hopes to reduce the homeowner complaints by application of new practices and procedures.

Legislators Propose A Ban On Using Credit Scores For Homeowner Insurance

The issue of using credit card history to set homeinsurance premiums in Minnesota is back in limelight. Attorney General Mike Hatch, Sen. Larry Pogemiller, Rep. Joe Mullery, all DFLers, said "They plan to push a proposal in early 2006 which will prohibit the insurance companies to use credit scores to accept or deny applications." Twincities.com reports:

According to Loretta Worters, Vice President of the Insurance Information Institute said that this proposal can have a devastating effect on consumers. It can force responsible homeowners to subsidize those with poor loss histories by hundreds of millions of dollars each year.