Homeowners Insurance Lowdown

Purchase homeowners insurance policy online

Most things are now barely a mouse click away. And same is the case with homeowners insurance policies. Most companies now offer these policies online.

The good part about this is that you get the opportunity to compare the policies offered by different companies at your own pace. At the same time your decision is not affected by salesmen who are looking at making a commission out of selling a policy.

On the other hand, a salesman can also act as a consultant and help you in determining which policy works to your advantage and would also be able to advice you on the type of coverage that you require. This might not be possible if you are considering purchasing a homeowners insurance policy online.

So, whether you buy a policy through the internet or through a salesman, there are certain basic advantages and disadvantages, the choice is ultimately yours.

Preparing Ahead of a Disaster

The homeowners in U.S. are getting a crash course in filing claims with the insurance companies and with the government especially in Southeast area after the devastation caused by hurricanes and floods last year. Many people who suffered losses due to the natural disasters have not claimed their money for the recovery or repair of the damaged property. The reason behind this vary from inadequate information about coverage to unresponsive insurers.

This remains a talked about topic these days. It’s advisable to prepare your paperwork before time to ensure that you are all ready to face the situation if the disaster strikes. To get more information in case of sudden disasters, you can visit the Insurance Information Institute's Website, www.disasterinformation.org, which offers a good starting point.

Create a detailed inventory of valuable property. Also, photograph your each and every item, the interior and exterior of your covered residence etc.  Always ensure the photos get filed with the policy and copied by your insurance agent.

Buy separate coverage for personal items

Most homeowners insurance policies only offer a particular amount of coverage for personal items. So, if you are looking at having proper coverage, you would need to buy separate coverage.

Usually the articles included under the list of personal items are jewelry, furs, watches, silverware, valuable papers and securities, and so on. Additional coverage can be purchased for these items through a Personal Articles Form or other additional applicable policy.

Ideally you should check with your insurance company or with the agent to know the exact coverage available in your homeowners insurance policy. They would also be able to advise you on the additional coverage that you require.

Keep a dog, lower your homeowners insurance premium!

Did you know that if you have a dog, this might lower the premium that you have to pay for your homeowners insurance policy? Well it s a fact. This is because dogs are considered to be a natural alarm system and are known to safeguard homes against theft. In certain cases, the breed of the dog is taken into consideration to determine if your premium can be lowered or not.

Homeowners insurance rates expected to rise

Hurricane Katrina besides causing havoc has also left a deep impact on companies offering homeowners insurance policies. Companies are planning to hike insurance rates to make up for the losses suffered due to the Hurricane. The hike could be up to 25 per cent. Areas that are more susceptible to hurricanes in the coming season would see an even steeper hike.

Homeowners filing lawsuits against insurance companies to get claims

Insurance companies are meant to be our friend in times of need. Yet, victims of Hurricane Katrina are seeing a completely different picture. And this is largely reflected in the fact that homeowners are now filing suits in order to get their claims. Southeast Texas Live reports:

About 18 times more lawsuits against homeowners insurance companies have been filed in the Jefferson County District Clerk's Office since the beginning of the year as compared to the same period last year. In fact, last year only three lawsuits were filed in the period.

Public hearing organized to look at the impact of AllStates decision

AllStates decision to reduce the number of homeowners insurance policies that would be offered on Long Island, New York City and Westchester County , has led to a number of question and doubts. To address these and also voice the opinion of the people, the State Insurance Department, would be holding a public hearing. This is to be held in Manhattan where insurance industry representatives, trade organization officials and consumers are expected to testify and present their views. Newsday.com reports:

Allstate announced in mid-January that it will no longer offer new homeowner policies in eight counties, seeking to limit its exposure to intense storms predicted to hit coastal areas in coming years. Two weeks later, the company said it will increase the number of homeowners' policies it decides not to renew when they expire.

Myths About Renter’s Insurance

Ownership: What if you don’t own enough?

Most people's belongings are often worth more than they think. That's one reason why you need renters insurance. However, it's important for you to know how much you really require.

Affordability: Is renters insurance too expensive?

Renter’s insurance is not expensive. Policies offered by insurers like State Farm can provide affordable basic protection to your personal property, and can protect you in case of a liability lawsuit.

Landlord: Does the landlord's insurance covers you?

The landlord's insurance generally covers the building where you live – not your personal belongings and your liability.

Responsibility: Do you really need liability insurance?

The policy of your landlord is most likely to exclude liability for something that occurs in your rented residence. If an incident occurred within your rented residence, you could be held responsible for injury to another person or damage to another person's property. Without liability coverage, your current and future earnings could be at risk. Renters insurance may also provide legal defense costs.

Homeowners Insurance: Tips For Policy Shopping

It always pays to shop around for the policies as rates vary widely among companies. Following are some useful tips to help you find the best deal for your money:

• Before shopping, decide the specific coverages and coverage amounts you need.

• Always ask several companies and agents for price quotes as the rates vary. When comparing rates, make sure they are for the same coverages.

• If possible, try to choose the highest deductible you can afford. This deductible will be the amount you must pay yourself before the insurance company will pay. Higher deductibles can lower your premium, but you’ll have to pay more if you have a claim.

• Answer questions truthfully when getting a price quote or applying for insurance, Wrong information could lead to a denial or cancellation of coverage or could cause you to get an incorrect price quote.

• Consider factors other than price, including a company’s financial rating and its complaint index. Financial ratings indicate a company’s financial strength and stability, while the complaint index indicates a company’s customer service record.

• Buy only from licensed companies and agents. You can take extra efforts and find out whether the chosen company or agent is licensed and can also learn about company’s financial rating and its complaint index calling from an independent rating organization.

Meeting to Discuss the Rising Homeowner Insurance Rates

The homeowner insurance rates are soaring due to hurricanes and sinkholes. State Sen. Mike Fasano said, “ The hikes are outrageous and are one most important issues in front of the homeowners.” Hernandotoday.com reports:

Fasano has also arranged a meeting in the town hall to help the homeowners express their thoughts and get insurance officials the chance to offer some answers. The forum is slated for Wednesday, March 1, at 10 a.m. at Spartan Manor, 6121 Massachusetts Ave. in New Port Richey.

Does your mortgage company pay your homeowners insurance policy premium?

A lot of times, your homeowners insurance premium is paid through the mortgage company, and as a result, we don’t even bother to find out the details of the policy.

This can lead to trouble when you file for a claim as you might realize that you don’t really have the coverage that you need. On the other hand, you might realize that you are paying more than you need to.

In either case, you are the loser so it makes sense to go through your policy in detail no matter who is making the payment.

Time to renew your homeowners insurance policy?Keep these tips in mind…

Is it time to renew your homeowners insurance policy? Well, then it is also time to sit back and take stock of the situation and determine the exact coverage that you require.

Now, before deciding what you need you would need to analyze what you already have. It is important to know the details of your existing policy so that you know what all is covered and what is not.

At the same time, it is equally important to ensure that all your personal details stated in the policy are accurate. Even a small error can create trouble when you file for a claim. So when you are planning to renew your policy go through all the personal details and make sure that the information is accurate.

Next you would need to take stock of the annual premium that you have been paying and the coverage that that entails. You would have to decide if the coverage is sufficient or do you require more coverage. Your policy would have to be altered accordingly. If you have carried out any remodeling in the year or have made any new additions to the home, you would need to ensure that these are covered by your policy.

Similarly, you might have purchased expensive appliances or electronics in the year, at the time of renewing your policy, ensure that these are also covered.

Following that you would also have to reconsider the peril and disaster coverage that your policy offers. You might need to make a few additions and subtractions in this respect as well.

Remember that renewing your policy is not just about signing a few documents and taking a basic decision, it is about taking stock of the situation and ensuring that you have the kind of coverage that you require.

Mediation program for resolving homeowners insurance policy disputes kicks off well

The mediation program set up by Mississippi Insurance Commissioner George Dale has created a lot of interest amongst homeowners looking at resolving insurance disputes. In fact it has been reported that more than 950 homeowners have signed up for the program. 
Sun Herald.com reports:

It has been reported that twelve of 19 homeowner insurance disputes were resolved during the first four days of mediation in Mississippi. Dale had wanted mediation conferences held on the Coast, but so far conference space has been available only in Hattiesburg, where it is being donated by the University of Southern Mississippi.

State Farm profits fell due to hurricane related claims

The hurricane season last year, adversely affected the profits of homeowners insurance companies. According to recent reports, the profits of State Farm Insurance Co., fell by 39 percent last year. This has been attributed to an increase in the claims due to the hurricanes that hit the Gulf Coast and other Southern states. KansasCity.com reports:

The Bloomington-based insurer posted earnings of $3.2 billion - down from $5.3 billion the year before - after a flurry of major hurricanes including Katrina. State Farm reported record hurricane losses of $6.3 billion to cover claims and expenses in the aftermath of Katrina, Rita and other tropical storms.

Getting funds after the approval of your claim

Have you got an approval for the claim that you filed with your insurance company? If yes, then you would be getting the funds in two installments.

You would receive a check for the contents damaged or lost and a check for home repairs. If you have a mortgage then the check for home repairs can be made out to both the owner and the lending institution. In this case the money is deposited in an escrow account and handed over when the repair work is completed.

Get the help of experts for calculating accurate claim amount

Do you need to file a claim with your homeowners insurance policy company? And is the claim quite large?

In that case, before you get an adjuster, you should take the advice of experts, including contractors, electricians and so on. They would give you the exact figure in terms of the loss suffered ad this would ensure that you can calculate the accurate settlement figure.

Further, in case of a large claim, you might face some trouble in getting it approved.  So, you can also consider employing an attorney to ensure that the insurance company does not take you for a ride.

These steps would prepare you to meet the adjuster and will also ensure that you can leverage the advantages of having a homeowners insurance policy when you need them the most. 

Stay prepared to face disaster

Sitting in the comfort of our own homes we feel quite protected and the thought of disaster striking our doorstep usually does not cross our mind. In my opinion, its time to wake up and face facts, and to prepare ourselves for any impeding danger.

Ideally, you should have the latest updated contact details of the company that you have purchased your homeowners insurance policy from. You should also have the contact details of the state insurance departments.

What is equally important is to maintain an inventory of all your personal belongings. As you keep adding new things to your home, you should also keep on adding them to your inventory list. If you don’t know exactly what all have you lost and what is the extent of the loss, then you would not be able to file a claim for the right amount. Ideally, your insurance agent should also have a copy of your inventory list. 

If you do file a claim you would also need to prepare to meet the adjuster. And this meeting would be beneficial only if you know the actual extent of the loss and have some supportive documents. With the inventory list in place, you would be able to tell the adjuster the exact details and this would insure that you get the money required to carry out the repair or buy replacements.

Of course your claim amount also depends upon the policy that you had purchased. It is important to understand the details of your policy when you purchase it so that in event of a loss you know what all is covered and to what extent.

Allstate limits its exposure to hurricane related losses

The last hurricane season was quite heavy for most homeowners insurance policy companies. So, after having dealt with the claims from the last hurricane season, Allstate recently announced that it would reduce the number of homeowners insurance policies that it sells in Texas.

This is largely an attempt to reduce its exposure to hurricane-related losses.

This implies that the company will not sell homeowners insurance policies for counties like Harris, Fort Bend and Liberty, to name a few. Also the company will not sell policies to new customers. At the same time, Allstate will also stop offering windstorm insurance on any new homeowners policies, for counties that front the Gulf of Mexico. Further, in certain counties like Montgomery and Waller, the hurricane deductibles will be raised from 1 percent to 2 percent. Chron.com reports:

Allstate, the state's second-largest insurer, suffered $500 million in losses from Hurricane Rita alone. The company, which has about 800,000 homeowners policies in Texas, is also trying to reduce its catastrophe exposure across the country.

Grant for Housing Plans for Hurricane Affected People

Blanco administration has outlined a $7.5 billion housing plan to support the hurricane affected people. The homeowners would be able to receive up to $150,000 of their hurricane-ravaged home’s pre-storm value. But, officials have already warned that they are not creating an entitlement program and many homeowners may have to go into debt to recover from the storms. 2theadvocate.com reports:

This plan will give four options ─ Repair, Rebuild, Relocate within the state or Sell to the homeowners. Atleast 128,000 homes were destroyed in the storm last year.

What is liability coverage?

When you buy a homeowners insurance policy, what is the meaning of liability coverage? A valid question… though your agent or the company from which you buy the policy might take it for granted that you understand what it means. To put it simply, liability coverage includes personal liability and medical payments.

Now if someone gets injured because of an accident on your property and this leads to a lawsuit, the claim would fall under the personal liability coverage. This does not include coverage for vehicle or business related incidents.

The latter, that is the medical payments coverage implies the coverage to pay medical expenses for the person accidentally injured on your property. This does not include coverage for any injury caused to you or your family members. You would need a separate policy for that.

Endorsements to ensure that you have enough coverage

Bought your homeowners insurance policy? Are you sure that it offers all the coverage that you require? If not, maybe you need to add a few extra clauses. Over and above your basic homeowners insurance policy, you can also add extra coverage through endorsements. These endorsements come at an additional cost.

You can add, a ‘Guaranteed replacement cost coverage’. This endorsement can be used to pay the cost incurred if you need to rebuild your home.

Further, an ‘Extended replacement cost coverage’ can be added. This insures your home for a specific value and adds a 20-25 per cent extended cover just in case the reconstruction costs exceed the limit.

Another endorsement that can work to your benefit is an ‘Inflation Guard’. This periodically increases the amount of your homeowner insurance to keep up with inflation. This ensures that you have adequate coverage to replace your home in case of a disastrous happening.

In case you possess another home, which could be a vacation home, you can add an endorsement for a Secondary residence. This would include coverage for the second property as well.

There are numerous other endorsements that can be added as per your requirements and your agent would be able to provide you details of these. So make it a point to discuss this with your agent when you purchase your homeowners insurance policy.

Are motorized vehicles included in homeowners insurance policy?

Homeowners insurance policies do not include coverage for most motorized vehicles. These are included in the policy only if they are unlicensed and used only at home. So if you own any motorized vehicles, don’t be under the misconception that these are covered too. Go and buy a separate policy.

What is property protection?

Planning to buy a homeowners insurance policy? Well, don’t be baffled by the terms and conditions. You would find respite in the fact that most homeowners do not have the patience to go through the details and end up simply following the directions given by the agent. One little piece of advice, you might trust your agent and rightly so, but it makes sense to know what you are getting into.

Now most insurance policies include property protection. The question is what is property protection and what all does it include?

Property protection is basically segregated into: dwelling, other structures, personal property and loss of use.

Dwelling basically implies your house, any attached structures, fixtures in the house, and so on. Fixtures can include built-in appliances, plumbing, heating, air conditioning systems, electrical wiring, and so on.

Other structures includes elements that are a part of the house but are not attached to the house. These usually imply garages, storage sheds, and fixtures like fences, driveways, sidewalks, patios, and so on. It is imperative to take into consideration the fact that detached structures that are being used for business purposes are not covered under a personal homeowners policy.

Personal property implies the personal items owned by you. This protection can be based on actual cash value or replacement cost. Ideally, as and when you purchase new items you should keep updating your policy so that your personal property is fully covered.

Loss of use implies living expenses that you incur over and above your normal living expenses if you cannot live in your home. This situation could arise if you are getting your house repaired or if you are denied access by government order.

Legislation Proposed Against Allstate

Allstate has recently announced that it will no longer offer homeowner insurance to residents of Long Islanders as well as New York State. Assemblyman Fred Thiele is proposing a legislation against this decision of Allstate which discriminates the provision of policies based on geographical location. Zwire.com reports:

Allstate has declared in January that it would no longer offer policies to residents in the five boroughs of New York State, as well as Westchester, Nassau and Suffolk counties.

Deserving executives promoted to post of Assistant Vice President by SSIC

Sunshine State Insurance Company(SSIC), a leading writer of homeowners' insurance and related lines in Florida, has promoted Michael Solano, Robert Thomas, and Michael Weis as Assistant Vice President. So far, they were functioning as underwriting executives.
Marketwire reports:

The announcement was made by John Rogan, President/CEO, Sunshine State Insurance Company (SSIC). This decision is aimed at awarding the three executives for their outstanding contributions to the growth of SSIC.

Got a homeowners insurance policy? Take care of the minute details

In most cases, our homeowners insurance policy premiums are paid by the mortgage company, so while we know that we do have an insurance policy, we ignore the minute details that can make a difference.

It is imperative to ensure that your policy actually offers the kind of coverage that you require. Over the year we purchase expensive items, but forget to update our policy. As a result, in case of a loss, our policy does not provide the funds that we would require to purchase those items again.

At the same time, it is imperative to ensure that the personal details listed on your policy are accurate. Even a small error can lead o trouble when making a claim.

So, while having a homeowners insurance policy is important, it is equally important to keep a tab on it. It requires a little effort, but believe me, it is important and would work to your advantage in the long run.

Texas Homeowners Policies

You can buy a homeowner policy that just covers the structure of your house. You can also buy a policy with five different coverages, which are common in Texas. The five coverages are as follows:

1.Personal property:  This includes damage to household items like clothing, furniture, or other valuable appliances. You will get your money back if any such item is stolen or damaged.

2.Dwelling: This includes payment for any type of damage done to your house or any outbuilding like garage or storage shed.

3.Liability: It protects you from any financial loss if you are found legally responsible for someone else’s injury or property damage. A homeowner’s policy automatically provides $25,000 in coverage. You can buy up to $1 million in coverage for an extra premium.

4.Loss of use: Under this you will get any expense on living out if your home is too damaged to live-in. The most common policy pays up to 20 percent of the amount for which your house is insured.

5. Medical payments: It pays medical bills for people hurt while on your property. A basic homeowners policy pays $500 in medical bills.

25% Yearly Raise in Homeowner Insurance Rates Proposed by Legislation

According to a legislation proposed by House Republican leaders, homeowner insurance rates can jump to as much as 25 percent a year, without government review. Sun-sentinel.com reports:

This decision is an effort to boost the competition in the state's property insurance market after the two hurricanes that have left insurers with huge shortfalls and record losses.

Residents Appeal Against New Flood Maps

Many homeowners in Walkersville’s Creekside development recently discovered that their homes were included in a revised map of Frederick County’s ‘‘100-year” floodplain. The homeowners said, they have not received any notification about the revised map from Frederick County until mid-January. The homeowners have been given just 30 days to appeal against the revisions. The ideal deadline is supposed to be 90 days. Homeowners believe that the draft map of the floodplain is inaccurate. Gazette.net reports:

Town Planner Susan Hauver said, “The inclusion of the people in floodplain means that homeowners have to purchase of flood insurance too and they will have difficulty receiving approval for additions to their homes.” He also added that the homeowners have to hire an engineer to certify their elevation is above flood level.

Determining Your Homeowner Coverage

You all work hard to gift yourself a home and it’s equally important to protect this dream house of yours. Before you purchase a new home, make sure that you determine the appropriate amount of coverage needed.

To find out the right coverage for your home, first of all you need to find out the replacement cost of your home. Secondly, you need to determine the amount of coverage that suits you best according to your requirements. It’s recommended to purchase an amount of coverage equal to the estimated replacement cost. Still, the choice remains yours…

If you have appraised your home, ask if a replacement cost estimate is available. You can also consult a builder for the estimation purpose. Once you find out your home's estimated replacement cost, it will be easier for you to know which all policy options are available to you. Since it is impossible to predict today what the exact cost will be to replace your home in the future, it's important to have enough coverage to account for unforeseen circumstances.

It’s good to have an understanding of the difference between market value and replacement cost. "Replacement cost" is the amount needed to repair the damage or to rebuild the home to its pre-loss condition. For insurance purposes, the replacement cost of a home is not the market value of the home, its purchase price or the outstanding amount of any mortgage loan. It also does not include the value of your land, but purely the cost of reconstructing your home.

Buy flood insurance to be prepared for the hurricane season

Homeowners in Mississipi are being urged to buy flood insurance. This comes in wake of the fact that the hurricane season is barely a few months away and to avoid trouble homeowners need to be prepared well in advance. Sun Herald.com reports:

The Federal Emergency Management Agency, which oversees the National Flood Insurance Program, has indicated that a new flood insurance policy takes effect 30 days after it is bought. According to sources from FEMA, only about 43,700 Mississippians carry flood insurance on their property.

What do to do if you are unable to get a coverage…

The face of insurance sector is changing with more and more insurance companies refusing to provide policies to the homeowners living in vulnerable and disaster-prone areas. Many of the insurers are canceling other homeowner policies in order to help their bottom line.

Here are a few tips which you may find useful in case you are unable to find a coverage.

 Consider more options

You need not worry if your insurer is refusing to renew the policy. The insurance industry is still rife with competition. You can opt for insurance companies like Amy Bach if you live in areas outside Florida or Texas. You should enquire about more insurance companies of the state that provide service in your area.
And if you do live in an area that has seen more than its fair share of natural disasters, chances are your state has set up a joint underwriters program that sells insurance to people who can't get coverage in the private market. But this should really be a last resort. These policies are expensive and don't give you as much coverage as a private insurer.

 Meet Your Needs

Make sure you know how much insurance you're going to need. You can calculate how much it would cost to replace your home by calculating how many square feet you have and multiply that number by the local construction cost per square foot for homes in your neighborhood.

 Shop for the policy

Get quotes from direct sellers and Web sites like insweb.com or insure.com. You can also check in with your state's insurance commissioner to see if there are any complaints that have been lodged against the company.

Insuring the Structure of Your Home

You can insure the structure of your home in three ways:
 Replacement Cost
 Guaranteed Replacement Cost
 Actual Cash Value

Replacement cost involves the cost that insurers pay to replace the damaged property without deduction for depreciation, but limited to a maximum dollar amount.

Guaranteed Replacement Cost involves the full cost of replacing damaged property, without a deduction for depreciation and without a dollar limit. Some insurers limit the coverage to 120 percent of the cost of rebuilding your home. This coverage is not available in all states. Guaranteed Replacement Cost provides you a protection against sudden rise in construction costs if there is shortage of building material supply.

Actual Cash Value involves an amount equal to the replacement value of damaged property minus an allowance for depreciation.

Insurance Claims Reach New Heights Post-Katrina

In Louisiana a staggering six times raise has been reported in the amount of the claims due to Hurricane Katrina. National Flood Insurance Program, supported by U.S. government has already paid $10.1 billion to homeowners in Louisiana. Newshouse News Service reports:

The Insurance Information Institute has already given $11.4 billion to meet the claims of the homeowners post Katrina. It is expected to pay $16.4 billion to meet the homeowners claims from the storm.

Proposed Hike by Allstate Accepted by State Insurance Officials

State insurance officials have approved the hike in the rates of premiums of Allstate’s homeowner insurance. Allstate Floridian Insurance Co. raised prices by 16.3 percent, or $163 per $1,000 of annual premiums paid, and Allstate Floridian Indemnity Co. raised rates by 24.4 percent, or $244 per $1,000 of annual premiums.

The new rates will be put into practice after the renewal of the policies. 640,000 customers of Allstate are already paying higher prices as the provision used by Allstate allowed it to collect the higher rates immediately. In case of denial by the regulators, Allstate would have been forced to return the money it has been collecting since Oct. 3. Palmbeachpost.com reports:

Plenty of rate hikes are expected in the coming months because of the hurricanes as suggested by the experts. In November, regulators approved an average 8.6 percent statewide increase for State Farm customers and 11 insurance companies with customers in Palm Beach County.

Fire District Formation Likely to Bring Down Homeowner's Insurance Rates

The Church Point City Council has decided to take steps to lower down homeowner's insurance rates and improve fire protection. This will see around 3600 people paying new taxes. Klfy.com reports: 

Chief Jene Daigle said, “The steps decided in the meeting will allow the fire department to collect taxes from areas surrounding Church Point that the city provides protection to.” Church Point City Council has given its blessing and support to the volunteer fire department to form a fire district.

Homeowners insurance claims should be cleared at the earliest: The problem so far…

After a catastrophe that has left your home damaged, even though you might hold an insurance policy, getting the money to start repairs might pose a problem. This stems from the fact that most homeowners insurance policies carry the name of the mortgage lender as well as the homeowner. As a result, the insurance checks also need a signature from both the parties. This spells trouble for homeowners who need to start repairs immediately.

In such a situation, homeowners need to tap their own savings or get credit from other sources so as to ensure that at least the repairs begin.

In my opinion, this needs to be addressed as frankly, what is the point of having an insurance policy if you cannot get the money when you require it the most. I would advice homeowners to question insurance companies about how would they deal in a situation like this before taking up an insurance policy. Sun Sentinel.com reports:

Keeping this problem in view, State Chief Financial Officer Tom Gallagher is pushing for legislation that would require companies to give 20 percent of an insurance claim's proceeds directly to policyholders. Companies would also be required to give checks for additional living expenses or to replace damaged belongings.

Britain homeowners need to gear up

According to a survey by Halifax Home Insurance, most homeowners in Britain are unprepared for a fire in their home. Most homeowners here do not have a smoke alarm, a fire extinguisher or a fire blanket.

This undoubtedly compounds the threat as without the basic measures, the home is vulnerable to fires that might be uncontrollable and therefore disastrous. Also, if these measures are not taken, the premium that a homeowner would have to pay to get a home insurance policy would also be very high.

Insurance companies while drafting out the policy and calculating the premium take into consideration if a house has a smoke alarm, a fire extinguisher and so on.

In my advice, it is important for homeowners to take the basic precautions to ensure their safety and at the same time lower the insurance premiums that they pay.

Getting insurance coverage for fire and flood

Have you been having trouble in getting a homeowners insurance policy because you live in an area that has a threat of floods? Or does your insurance company not offer coverage for damage caused due to fire. There are certain options available that you could explore in this case.

You could get in touch with the New York Property Insurance Underwriting Association This association is a pool of all insurance companies writing fire insurance in New York State. The Association offers all kinds of coverages that you might have trouble getting from individual insurance companies. The only catch here is that you would have to pay higher insurance premiums. At the end of it, the choice is yours. You can pick between not having coverage or paying higher premiums.

If you need flood insurance and the insurance companies that you have been in touch with refuse to include this in your policy, you can turn to the National Flood Insurance Program (NFIP). Homeowners can purchase insurance protection against losses from flooding through the NFIP. This is essentially available for people living in areas that have been labeled as flood hazard areas and a joint effort is being made by the homeowners in the area to ensure that future flood risks are reduced.

It is essential for you as a homeowner to analyze what all coverage would you require before taking up a policy. It my advice, do your homework before you contact the homeowners insurance companies this would work to your advantage in the long run.

Replacement cost policies and extended replacement cost policies for homeowners

If your home is damaged beyond repair, most homeowners insurance policies will pay to replace it up to the limits of the policy. In case you have been updating your policy regularly to ensure that you have coverage to deal with the increasing costs, your policy should provide you with adequate money to rebuild a new house.

In case of certain policies, the insurer also gives you the assurance that in case of complete damages, you would be given a certain percentage over the limit to rebuild your home. This could be up to 20 per cent or more. This implies that even if the rebuilding costs escalate suddenly, your claim would be enough to ensure that your house can be rebuilt. These policies are known as extended replacement cost policies.

Now whether you have a basic replacement policy or an extended replacement policy, the insurance company will not pay for you to build a better house than the one that was damaged.

Stated amount mobile homeowners insurance policies

If you have a mobile homeowners insurance policy with a stated amount, in case of a claim you would get the amount that was agreed upon when you signed the policy. In this case the depreciation over time of your home would not be taken into consideration. In case of these policies, a homeowner should update the policy annually to ensure that he does not suffer any losses in case of damages and is fully covered by the policy.

What is the difference between a replacement cost policy and an actual cash value policy?

The terms replacement cost and actual cash value policy might confuse you when you buy a homeowners insurance policy, but these can greatly affect the compensation that you get when you file a complain. So get your facts right.

In case of a replacement cost policy, you would be given the cash to replace the damaged item. This would not take into consideration the depreciation over a period of time or the fall in the value of the item because of wear and tear.

In case of an actual cash value policy, factors like depreciation due to age, wear and tear, etc would be taken into consideration while computing the value of your claim. As a result, when you get the claim, you might not be in a position to purchase the damaged item.

Not satisfied with the way your homeowners insurance company dealt with your claim? Take remedial action…

You filed a claim with your homeowners insurance company but are not satisfied with the way that they dealt with it? Well, you can take certain remedial steps.

The best thing to do is to contact the agent or the company representative who sold the policy to you. As they are the ones who made the promises to you, they would try to ensure that your problem is solved and you are satisfied with the action taken. But for them to do so, you would first have to tell them the exact cause of your dissatisfaction. Ideally, if you can, provide them with a copy of any supportive document that you have while also submitting a written complaint to them. Retain the original documents with you as might need them again at a later date.

In case you are insured with a small company you can even take the matter in your hand and directly contact the top officials. This might spur them into taking action to ensure that your problem is resolved.

If both these options donot work, you can even contact the state insurance department. At the end of it, if none of these suggestions can help you, then the last resort is to speak with an attorney.

Homeowner Insurance: Why do you need it?

Our home is the most important part of our lives. We all can go to any length to protect our home from any destruction. The first step to materialize this thought is to go and get the home insured. It is very hard to replace your home and the belongings in case of any destruction as it can leave a big hole in your bank balance. A homeowner's insurance policy can protect you against such a loss.

Sometimes it can be very confusing to know or understand the contents of the policies if you are new to them. You should choose the policy very carefully to cover all the valuables and your home. Many times it happens that homeowners buy the policies without realizing that they are under insured. Of those studied in 1986, 2 percent of the homeowners and 8 percent of the renters weren't sure if they were insured.

If you are new to buying a homeowners’ policy you must be having several questions in your mind. How do you pick the right homeowner's insurance policy? How much coverage is enough? How often should you review and update your policy? What insurance do you need when you rent an apartment or own a condominium? Do exhaustive research to find answer to these questions. Talk to your friends and colleagues who already have homeowner policy to get the information. Collect sufficient information about the insurers and the policies offered by them before actually buying any policy.

Here are a few tips which can help you to buy the best policy.

 Maintain a good credit report to get coverage under affordable range.
 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.
 Always get a home disclosure report from your agent or the seller's agent if you have bought a new home.
 Research for consumer-friendly companies to pick the best one for you.

Insurance Tips for Homeowners

It can be very stressful and challenging for any homeowner to deal with the aftermaths of a residential burglary, fire, or a destructive storm. You can prevent or lessen the destruction in case of damages caused by fires and other such disasters by appropriate planning and precautions.

Following tips can help you to prevent losses, and minimize the damages when losses occur:

 Install and maintain smoke alarms
 Place small fire extinguishers in strategic locations in your home
 If feasible, install a sprinkler system
 If feasible, install a security system
 Keep your home and land maintained and free of debris

Buying a homeowners insurance policy is not a compulsion

If you do not want to purchase a homeowners insurance policy, as such, there is no compulsion for you to do so. These policies are only aimed at protecting you and if you do not feel the need of having a policy, you do not need to buy one.

Just in case, you are planning to purchase a new house and would need a mortgage to do so, the mortgage company might need you to purchase a homeowners insurance policy. This essentially stems from the mortgage companys need to protect itself.

At the same time, if you are living in a flood or earthquake prone area, it is advisable to buy an insurance policy.

At the end of it, in most cases, it is up to you to decide if you want to purchase a policy or not. So take the important factors into consideration and decide what would work to your advantage.

Higher premiums for flood insurance

In the coming times, homeowners across US might have to pay higher flood insurance premiums. So far, a number of homeowners have been paying subsidized rates and this has also encouraged homeowners to build their homes in areas that are flood prone thus increasing the liability of insurance companies. With the rising flood insurance claims, companies are bracing themselves to deal with future threats through this move. Mlive.com reports:

The Federal Emergency Management Agency expects to pay at least $23 billion in flood insurance claims for damage caused by hurricanes Katrina, Rita and Wilma. FEMA only collects about $2 billion a year in flood insurance premiums and fees, so taxpayers probably will be on the hook for most of this money.

Homeowners insurance claim? It helps to have a proper inventory of your possessions…

You have a homeowners insurance policy, but in case of a theft, a fire or a natural disaster, would you be able to list out all your possessions? In most cases, not… You might be able to list out most of them but you are sure to omit a few. And this would definitely reflect in your claim. So as a result, in spite of holding a policy and paying your premiums on time, you would still have to bear losses.

So what do you do? Ideally maintain an inventory of the items. Yet, invariable when we sit down to make a list, we are sure to omit details that could actually be useful later. Keeping this in view, a new free software is being offered by the national Insurance Information Institute.

This software prompts homeowners to maintain an inventory room by room. It also offers the facility to add photographs and scan and save receipts. It also instructs users to add information regarding where and when were the items purchased, along with their brands and model numbers.

In most cases, we do not keep a track of our possessions because it is time consuming. This software simplifies the process and makes it much quicker. The Oakland Press reports:

The software, offered by the national Insurance Information Institute, can be downloaded from the Web site of the group's Michigan affiliate, the Insurance Institute of Michigan, at www.iiminfo.org. A home inventory will help you to obtain a fast and fair settlement with your insurer, and can be used to verify losses filed on your income tax return.

Grants Available for Hurricane Sufferers

The residents of coastal area hit by Hurricane Katrina can apply for the grants in February month. An estimated 55,000 homeowners are expected to apply for the grants, out of which around 35,000 probably will be approved. Clarionledger.com reports:

Mississippi Development Authority spokesman Scott Hamilton said, “ The agency wants to include all insured homeowners who lived outside federal flood zones, no matter what level of damage their homes sustained. But HUD could enforce its guidelines, which would limit funding to homeowners with more than 50 percent damage to their homes.”

Citizen Insurance Corp. Applies for Loan to Payback the Claims

Citizen Insurance Corp. can get a loan by February 10 from JP Morgan to keep itself afloat. The insurance company is on the verge of going bankrupt within a few weeks owing to the rate of claims payment due to the hurricanes. Nola.com reports:

Terry Lisotta, secretary of Citizens said, “ The plan to take a loan will allow the company to pay the claims without a break. The company has around $64 million of cash on hand and is already paying an average of $5 million in claims a day, but the number is fluctuating and has now slowed down.”

Allstate Offers Voluntary Termination to Employees

Allstate Corp. has offered its employees to take up voluntary termination to cut down its rising expenses after Hurricanes Katrina and Rita. The company informed the employees about this voluntary termination plan on January 24th. Mike Trevino, the spokesperson of Allstate said, “The company is planning to cut down the work force by 10 percent or 600 to 700 workers.”

The company has registered a record quarterly loss due to the devastation caused by Hurricanes. It has purchased billions of dollars in reinsurance to help cover auto and personal property claims nationwide. This reinsurance will help in the reduction of the volatility of future earnings of the company. It will cost around $600 million a year, triple of the amount currently paid by Allstate. Insuarncejournal.com reports:

In order to cover the cost, Allstate has planned a rise in the premiums in certain areas of the market. The residents of Chicago should not expect any rise as their chance of facing a natural disaster are slim.

Insurance company holds the discretion to suspend coverage for damage

Are you planning to take an extended vacation? Just remember that if your house remains vacant for 60 days or longer, most homeowners insurance companies automatically suspend the coverage for damages. Find out if your insurance company also has similar rules. Usually in this case, while the coverage for damages is suspended, the liability coverage continues.