Homeowners Insurance Lowdown

Buy Flood Insurance Advises State Department Of Public Safety

South Dakotans, whether they live in flood plain area or not, are being urged by the state Department of Public Safety to consider buying flood insurance. According to Federal law it is necessary for people with mortgaged property in flood plain to buy insurance.
Aberdeen News.com reports:

State officials have indicated that it's a good idea even for people not within a flood plain to purchase a policy, as homeowners policies don't cover flood damage. Nearly a third of flood insurance claims within South Dakota each year are from property outside of a flood plain, officials said.

Buying A Homeowners Insurance Policy? Get An Agent Or Contact The Company Directly?

Need to purchase a homeowners insurance policy? The obvious question that comes up next is would you like to go through an agency or approach the company directly? Both the options come with their advantages and disadvantages.

In case of the former, you would be able to leverage the advantage of the expertise of the agency. With the knowledge and the understanding of the market that the agent holds, he would be able to advise you on the policy that you require and the kind of coverage that you need. Further, the agency would also help you in contacting the insurance companies and will help you to get the homeowners insurance policy. If you decide to take the assistance of an agency then the agency would interact with the insurance company regarding your claims and any other issues.

The biggest limitation in this case is that usually insurance companies give a commission to the agent for getting new accounts, now this might not work to your advantage. At times an agent might try to push a company just because it offers a better commission. This problem would not arise if you are looking at dealing with the insurance company directly. Also, most insurance companies offer service 24 hours a day.

The catch here is that you would have to research on your own and select a company and a suitable policy that fulfills your requirements.

With both the options clearly defined with their advantages and disadvantages, at the end of it, its your choice.

Homeowners Insurance Policies Offer Limited Coverage On Personal Items

Most homeowners insurance policies offer limited coverage on personal items. Also, these limit the kind of coverage that they offer. So, when you buy a homeowners insurance policy read it carefully, understand the coverage that it offers for personal items, assess it and analyze if it is sufficient for you. In most cases, you would need to buy a floater or a personal item policy to protect individual items.

The rate that you would have to pay for these policies depends on the item for which you are purchasing the policy, where and how are these stored and the company from which you are buying the policy.

In fact you can lower the premium if the item is stored in a safe deposit box or if you have an alarm system at home.

To get an insurance policy for personal items, you would have to submit the sake bill or get an appraisal. These policies cover all types of losses, so once an item is insured you need not worry about it!

Rising Homeowners' Insurance Rates Lead to a Decline in Real Estate Deals

The increase in the homeowners insurance premiums resulting from the disastrous hurricanes in the past, has had an impact on the real estate market as well. Due to an increase in the cost, there has been a visible fall in the number of people purchasing houses. In fact it has been reported that the home sales dropped by nearly 20 percent in the last month as compared to the sales made in last year.

Also, because of the losses in the past, homeowners have to pay an assessment to keep the Citizens Property Insurance Company alive. Last year, homeowners paid nearly 7 percent.

This year the figure is expected to rise to 10 per cent. With an increase in the overheads, it seems a more sensible decision to abstain from purchasing a house in the region.
Wesh2Wesh.com reports:

The state has granted at least 68 homeowners insurance companies rate increases over the past two years. The most recent statistics show Florida is the fourth most expensive state in the nation for homeowners' insurance, behind Texas, Louisiana and Oklahoma.

Trial Necessary For Case Against Allstate

Recently a case was filed against Allstate Insurance Company on the basis that representatives from the company led homeowners to falsely believe that flood damage would be covered by their hurricane insurance policy. Following this, a federal ruling has been issued denying a request from the Insurance Co. to dismiss the case. The Jurist reports:

US District Judge LT Senter held that a trial would be necessary to determine the facts; if a jury believes the homeowners, Allstate will be liable for the damages that homeowners believed were covered. Senter also determined that damages caused by wind and rain must be covered under the hurricane insurance policies, even if the jury determines that flood damages are not covered.

Follow these Tips to Get Easy Claims

o Make an effort to know your coverage. You can find the dollar limits of your policy and benefits on your policy’s declarations page. Ask your agent or company representative to help you out.

o Notify your agent or insurance company immediately in case of a loss. Report losses involving theft or crime to the police.

o Make a list of your damaged property. Photograph or videotape the damage before making any repairs, if possible.

o The insurance company may deny your claim if you make permanent repairs before it inspects the damage. So, make only temporary repairs to protect your house and belongings. Contact the insurance company before beginning repairs, if you are not sure whether a repair is considered permanent. The cost of these repairs and for storing personal belongings is covered by your policy.

o Keep receipts. For personal property claims, you must provide evidence that you bought the replacement items. If you bought materials for temporary repairs, receipts will help you get reimbursed quickly.

Lower Your Home Insurance Cost

If you are thinking of buying a homeowner insurance policy just take care of a few things to get the best available policy suiting your requirements and that too at lower cost.

o Get more and more information about the policy through different sources. Before selecting any homeowner insurance policy, it is advisable to check consumer guide, insurance agents, companies and online insurance quote services.

o Buy a combination of two or more policies from one company.

o Maintain a good credit record to cut down your insurance cost.

o Last but not least, you can save money on your by staying with same insurance company.

Cancellation and Nonrenewal of Your Policy

Cancellation of the policy means either you or the insurance company stops coverage before your policy’s normal expiration date. If the company cancels your policy then it should refund your premium minus the portion paid for coverage actually received.

Nonrenewal means a company refuses to renew your policy on its expiry. A company must give you written notice at least 30 days before your policy´s expiration date. If the company does not notify you in writing in the required time, it must renew the policy at your request. A company cannot nonrenew or raise your premium because of a claim you filed that was not paid or was not payable under your policy.

Losing Your Insurance

You should know your rights as they can help you in case you’re rejected for homeowners insurance or lose your coverage. A company must explain in writing its reason for declining, canceling, or not renewing your policy on your request.

Companies cannot deny, cancel, or refuse renewal of your policy solely on the basis of your credit due to the prohibition from Texas law. You can file a complaint with TDI if your insurance has been improperly denied by a company.

Having Trouble Insuring Your Home?

Sometimes, it can be really difficult finding adequate and affordable insurance. If you are having difficulty finding a homeowners policy, read on:

· Remove Potential Risks

Make your home more insurable by changing things that insurance companies and agents interpret as signs of potential risk. Look around your home for problems that could cause damage or injury, such as a heavy tree limb hanging over your roof, loose porch railings, or cracks in your walkways.

· Maintain Your House

When you’re looking for insurance, your home’s appearance becomes important. Agents look for signs of poor maintenance, as companies want to avoid losses from injuries or accidents. A cluttered yard and faded paint might suggest an unsafe home. The outside of your home will be inspected when you apply for insurance, often when you are not at home. Insurance companies have the right to cancel a policy within the first 60 days, and some may reject new customers because an inspection revealed a home in need of repair.
o Fix any obvious signs of damage, such as rotting boards, sagging screens, or a loose front door.
o Keep your yard clean and trim.
o If your paint is peeling or faded, consider repainting.

· Watch Out for Crime

Theft is a common cause of homeowners’ claims. Insurers may not be willing to insure homes that seem vulnerable to crime. Take precautions to make yourself less vulnerable. These precautions could also lower your insurance premiums.
o Call the crime prevention officers of your local police force. They can inspect your home and give you specific advice on protecting it.
o Install dead bolts or other security devices on doors and windows.
o Work with your neighbors to start a Neighborhood Watch Program. Your local police department has helpful information.
o Install a burglar alarm that alerts the police or a security company.

Avail Maximum Discounts on Your Policy

Discounts can help you save money on your insurance. If you take steps to reduce the chances of a loss, companies may offer you premium discounts. Each company sets the amount of the discounts if offers to its policyholders. A few common discounts are:
· Noncombustible roof
· Age of house (companies set own standards)
· Other policies with same company or group
· Premises in good condition (companies set own standards)
· Impact-resistant roofs
· Good claims experience for three consecutive years
· Marking personal property with an identifying number (inspection required)

Factors that Affect Your Policy Premium

· Your home’s replacement cost: Since your policy will pay to rebuild your home if it is destroyed by a covered loss, premiums are more expensive for homes with a high replacement cost.

· The age and condition of your home: Older homes and homes in poor condition generally are more expensive to insure. In addition, companies may refuse to insure homes in poor condition. However, they can’t deny coverage solely because of a home’s age or value.

·  Where you live: Premiums will likely be higher for homes in areas with a high frequency of storms, such as tornados or hailstorms, or with a high incidence of theft.

· Your claims history: Companies will charge more if you’ve filed claims in the past. Before filing a claim, it’s a good idea to ask your agent or the company’s underwriting department how it will affect your premium at renewal time. For less expensive losses, it may be cheaper in the long run to pay for repairs yourself rather than file a claim. This is especially true for repairs that wouldn’t cost much more than the amount of your deductible.

· The construction materials used in your home: Homes built primarily of brick are less expensive to insure than frame homes.

· Your credit score: Companies may consider your credit score when deciding whether to sell you a policy and what to charge you. However, a company cannot refuse to sell you a policy or cancel or non-renew your policy solely on the basis of your credit. Companies that use credit scoring must file their models with TDI.

· Availability of local fire protection: Homes with access to good fire protection services get better rates. If you live in an area with limited fire protection, your rates will be higher.

Hurricanes and Windstorm Insurance

The Texas Windstorm Insurance Association (TWIA) is the state’s insurer of last resort for wind and hail coverage in the 14 coastal counties and parts of Harris County on Galveston Bay.

You can buy TWIA coverage through local insurance agents if you need it. TWIA provides wind and hail coverage when insurance companies exclude it from homeowners and other property policies sold to coastal residents. You can no longer change or purchase new Windstorm coverage when a hurricane enters the Gulf of Mexico (80 degrees longitude and 20 degrees latitude).

Your builder should request an inspection by a TDI windstorm inspector or a Texas licensed professional engineer appointed by TDI. if you plan to build, add to, or renovate a home or other structure and want TWIA coverage. You can ask your agent about the way to get an inspection.

Your Homeowner Policy and its Dollar Limits

If you’ve insured your house for $50,000, that’s the maximum amount you can claim if your house gets destroyed. You’ll get the same amount even if it would cost you more to replace it. Notice, the declarations page on the front of your policy. It shows how much coverage you have.

Talk with your agent or company representative if you have any questions about your insurance limits. If a fire destroys your home, Texas law requires the insurance company to pay the full amount of the policy - even if this amount is more than the replacement cost. So, learn your policy’s limit without waiting for a claim.

Residential Policies

Renters: A renter’s personal property is not covered under a landlord’s insurance. Renters insurance not only covers your belongings but also provides liability protection and pays extra living expenses to you in case of a fire or other disaster forces which can force you to move out from your rented home temporarily.

Townhouses: They can be insured by either an association master policy or an individual homeowners policy. If a townhouse is owner-occupied and the townhouse association does not have a master policy on the building, you can purchase a homeowners policy on your individual unit. If the association has a master policy, you should get a Texas tenant homeowners policy to insure your personal property.

Condominiums: Condominium insurance matches the benefits of renters insurance. It also covers damage to improvements, additions, and alterations to the condominium unit.

Plumbing Problems? Contact your Insurer

Have you suffered losses due to plumbing problems? Well, there is news for you… Though most homeowners insurance policies don't cover the cost of repairs arising from plumbing problems, they usually cover the value of damaged property. This implies that you actually do not have to spend as much money as you had estimated… so the next time, do contact your insurer before carrying out repairs.

Homeowners in for a Tough Time

Homeowners are in for a tough time following a new stance taken by the Louisiana Insurance Rating Commission.

In a recent move, Farm Bureau Insurance Company has received a green from the commission to hike rates. The homeowners covered by Farm Bureau Insurance Companies are expected to see the insurance rates increase on an average of 49 per cent.

Also, a number of the policies held by Farm Bureau customers will be canceled in the mid of June, and new policies would be written for the homeowners. There would be no increase in the premiums that the homeowners have to pay for these policies just that these policies would not include coverage for wind or hail damage. As a result, homeowners who feel the need for this coverage would have to purchase it from Louisiana Citizens Property Insurance Corp. 2theadvocate.com reports:

Farm Bureau is the largest insurer to request a homeowners rate increase so far. The Insurance Rating Commission has also approved Fireman’s Fund Insurance and related companies’ request for a 19 percent increase, or an average of $673 per policy.

Get a Quake Policy

Most homeowners in California have homeowners insurance policies, but do not have quake insurance, in spite of the fact that in the past the area has seen disastrous earthquakes. This can largely be attributed to the fact that most homeowners expect the government to support them in case of such an eventuality. Herald. Com reports:

State officials are hoping that next month's 100th anniversary of the 1906 San Francisco earthquake will inspire Californians to prepare. The 1906 quake and subsequent fires had destroyed 28,000 buildings and left 225,000 of the city's 400,000 residents homeless.

Make Your Home Safer

Homeowners have been facing a lot of trouble in getting insurance policies post the hurricane season. If you have gone through the trouble, you can now breathe a sigh of relief.

A number of companies are making materials that can make your home ‘hurricane-safe’. These might be expensive, but can increase the chances of getting a homeowners insurance policy if you live in an area that is prone to hurricanes.

So find out what would work to your advantage and make the investment required before you approach a homeowners insurance policy company. An answer to your troubles, isnt it?

Determining the Homeowners Insurance Coverage that You Require

Are you buying a homeowners insurance policy for the first time? Don’t get taken into buying more coverage than you require. Determine your needs and understand the policy before taking a final decision.

Remember that an insurance agent might talk you into buying more than you require. After all that’s what their job is, to sell insurance coverage and the more the sell, the better it is for them.  This does not imply that you can rule out the need for an insurance agent, it just means that you need to know what you are buying and what you require.

The first point that has to be taken into consideration and that would be taken up by the agent is the value of the home being purchased. This includes the value of the exterior and the interior of the house and not that of the belongings. It is important to consider the material that has been used to construct the house as even this effects the amount of coverage that you would require. 

Next, in the list are the basic appliances that are used in the house and also their age. If the plumbing and the electrical systems are old, then you would require more coverage. Following this, you would need to compute the value of your personal belongings as you would need coverage for these as well. Ideally, you should maintain an inventory of your belongings, in case you don’t have a list then take out time to make one before determining the coverage that you require.

Another important factor that affects the amount of coverage that you require is the location of the house. If you live in an area that is known for floods, hurricanes, hails, etc then you would require special coverage.

With these basic points in place, you would have a rough estimate of the coverage that you require and would be in a position to take an informed decision.

Insurance Market Facing big problems due to Hurricane

Florida's insurance market is facing a big problem as it     doesn't have enough property insurance available, especially when the state is one of the hurricane-prone states. The existing policies are getting costlier. Msnbc.com reports:

George Grawe, counsel for Allstate Floridian Insurance Co. says, “This is a crisis. There is no money left to pay hurricane claims.” Dave Cobb, a retired independent insurance agent echoes his concerns and said, “I don't think anyone ever anticipated this kind of shortfall.”

Trouble getting a homeowners insurance policy? Don’t worry, its just about a little extra effort…

Are you having trouble getting a homeowners insurance policy? Well, there could be two reasons for this, one could be that you are a defaulter, the second is that you are living in a high risk area. In case of the former, you would need to convince the insurer that the default was not intentional and that you can be trusted. In case of the latter, a little spade work might be required.

First of all, you need to understand the meaning of a ‘high risk’ area. If your home is located in an area that is experiences extreme weather such as hurricanes, windstorms, tornadoes or hail, it would fall into the category of a high risk area. An area is also labeled as a high risk location if it has a high crime rate. Also, if you are shifting into a house that has old systems that can lead to a fire or can cause water damage, your house would be labeled as high risk. In this case, you can take the necessary measures to upgrade the systems so that you can get a homeowners insurance policy.

As a homeowner, if your home qualifies as ‘high risk’ then you would have to go an extra mile to get an insurer. So be prepared to make the effort. Speak with the previous home owners and find out the name of the insurer who covered their house so far. If you are living in a high risk area, your neighbors could also provide leads for the right home insurer. In fact, even your current home insurer can help you in finding a homeowners insurance company that would be willing to offer coverage. You could even take the assistance of your current homeowners insurance agent.

HouseRaising introduces software for homeowners insurance companies

Homeowners insurance companies had a tough time dealing with the disaster caused by the last hurricane season. From claims that caused losses for companies to a shortage of manpower, there was a lot more that came along with the hurricanes.

In an effort to assist companies in dealing with homeowners insurance claims following any disaster, HouseRaising, Inc. is introducing a new version of its custom home project software that is designed to be used for disaster relief projects. This software would assist these companies in managing data that is required for claims and in assessing the claim amount, amongst other services. Local Tech wire reports:

The software is designed to deal with issues faced by homeowners, local officials, insurance carriers and builders in the wake of a disaster. The software is designed to be used in managing rebuilding efforts from the point of accumulating project data and cost estimating to designing replacement homes, clean-up, addressing and coordinating funding issues and managing the building process to completion and occupancy.

Large number of homeowners in flood plains do not have flood insurance

In spite of the havoc caused in the past by floods, a number of homeowners do not have flood insurance. According to a recent study carried out by RAND, about half of the homeowners who live in federally designated flood plains do not have the required flood insurance.
Ledger Enquirer.com reports:

Overall, the study concludes that between 50 percent and 52 percent of people who own single-family homes in flood plains carry flood insurance. But it found that a quarter of homeowners whose federally backed mortgages require them to be insured against floods actually are not.

NAB introduces a combined loan and insurance package for homeowners

Most homeowners do not posses enough insurance coverage. There is a dire need to educate homeowners in terms of the coverage that they require and at the same time to offer attractive insurance packages to ensure that they make the effort to purchase the required coverage.
Yahoo 7 reports:

Keeping this in view, National Australia Bank (NAB) is looking to tap into the growing sector of underinsured homeowners with the launch of a combined loan and insurance package. The bank's new protected loan offers housing finance coupled with general and life insurance policies. The product focused on protecting customers' assets and their repayments on their debt.

Upgrade Your Homeinsurance Policy With Your Home

It’s a popular practice to remodel your home during summers. Remodeling quickly increases your home's value. But, you should not forget to match it up with your insurance coverage. A recent survey of homeowners uncovered a coverage gap that can make for financial headaches if disaster hits.

Remodeling your home is a very good decision as it helps to keep your house up-to-date and comfortable. It also adds to the value of your house and property. In fact, with a kitchen or bathroom remodel, homeowners can expect to recover on average 90 percent of the cost of the project at resale. This is probably one reason why the U.S. Census Bureau of the Department of Commerce reports that expenditures for improvements and repairs of residential properties in 2004 were estimated at  $198.6 billion.

As you spend billions on improving your home and property, take some time out to adequately adjust your homeowners insurance to cover your home's new value. Home repairs can be a huge financial investment, and if you haven't adjusted your insurance policy to cover them, it could mean financial disaster.

According to a recent survey, a majority of homeowners do not upgrade their insurance when they upgrade their homes. The survey also revealed a troubling knowledge gap among a majority of affluent homeowners of their insurance coverage.

So, if you are spending the time and money making upgrades to your home and property this summer, don’t forget to give your insurance agent a quick call to ensure the true value of your home will be covered in the unfortunate event of a disaster.

Homeowners' Insurance — What all it covers?

Homeowners’ insurance generally covers the loss of your belongings in case of fire, theft, and certain other casualties. Your insurance will generally pay for all or part of the cost, if you must repair or replace property that is damaged, destroyed, or stolen. It also protects you against liability lawsuits. For example — if someone who is injured or whose property is damaged sues you, your homeowners’ insurance will usually cover a certain amount of that liability.

If you don’t own a home, then also it’s equally important that you maintain renters insurance. You should not neglect to obtain insurance just because you are not actually a homeowner. Studies show that about three-quarters of all those who rent a residence do not maintain renters’ insurance. Adequate replacement cost coverage and liability insurance can be obtained for about $200 per year.

Biloxi River Estates residents can soon be back to their homes

Very soon, Biloxi River Estates residents can come back to their homes. They were forced to stay away from there homes due Hurricane Katrina. A team of house-raisers are working to elevate their houses to meet FEMA's new flood elevations and to prevent them from being swallowed by storm surges in future hurricanes. Sunherald.com reports:

The new elevations aren't mandatory but still they are done. Some people are using a $30,000 elevation grant to cover the cost of building to the new heights.

FEMA advocates purchasing Flood Insurance for all the Homeowners

FEMA is reminding at-risk Northern Californians about its affordable flood insurance. John Treanor, agency public information officer said, “What people don't realize is that their homeowner's policy does not cover flood insurance”. Homeowners can recover their losses through Federal flood insurance even if the federal government does not declare an event a disaster.

According to a FEMA news release, floods are stated as the most common natural disaster. The average annual flood insurance premium costs about $400 for about $100,000 of coverage. Preferred risk policies could cost as little as $100 a year for low- to moderate-risk areas. Policies take effect 30 days after purchase. The National Flood Insurance Program is offering separate policies for structure and content coverage for participating and eligible communities. Contracostatimes reports:

$250,000 and $100,000 are the policy limits for residential and content properties while $500,000 has been fixed as the limit for structure and content policies of nonresidential properties.

Home Inventory

We all live with a threat of loss of property from fire, theft or other causes. But, you can pat away from your fear by an accurate inventory and proof of ownership which can make claim settlement easier and faster at the time of a loss. In case of a personal property loss, you will need to provide an inventory of the lost, stolen or damaged items to your claim representative. You can also provide the information your representative needs to settle your claim by giving away a filled up personal property form.

Personal property form can be filled out online or you can fill it by hand. After you complete the form you can take a print and mail it to your claim representative. Don’t forget to keep a copy of the completed form for your records.

What kind of coverages apply when someone gets hurt on my property?

Your home insurance policy includes Personal Liability which protects you and your relatives who are part of your household. Personal Liability also safeguards you from any legal liability for injuries to other people either on or off your property, or if you cause damage to anyone else's property.

The insurance company will also pay the costs to defend lawsuits brought against you. You can typically choose from a range of limits beginning with $50,000 as offered by companies such as Metlife.

In addition liability coverage, Medical Payments to others also covers a person outside of your household if injured by you, or if they get hurt on your property. Under this medical payment you cab get reasonable medical expenses, regardless of fault, up to $1,000 for each insured person. This limit can also be increased.

Homeowner Policy Shopping

1. 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.

2. Decide the specific coverage and coverage amounts you need.

3. 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.

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

5. 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.

6. Higher deductibles can lower your premium, but you’ll have to pay more if you have a claim.

7. 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.

Flood Insurance and your Homeowner Policy — Keep a close check

If as a homeowner you think that you need not have separate flood insurance as it is covered under your homeowner policy, then it’s time to update your pool of information. Read your policies carefully for all the terms and conditions to avoid any confusion. Your homeowner policy only covers wind-blown rain or water damage caused by plumbing malfunctions.

Since in the past few years the frequency of floods has increased in U.S., you should seriously think about getting your home insured against floods. It was reported that more than 28,000 flood-insurance claims were made during the 2004 hurricane season. Around $1.4 billion were paid to the claimants.

Homeowner Insurance — Covering Your Personal Items

If you are looking at having proper coverage for your personal items, you would need to buy separate coverage as most homeowner insurance policies only offer a particular amount of coverage for personal items. Personal items can vary from jewelry, furs, watches, silverware to valuable papers, and securities, and so on. You can always purchase additional coverage for these items through a Personal Articles Form or other additional applicable policy.

To know the exact coverage available in your homeowners insurance policy check with your agent or with the insurance company. Don’t forget to ask them to advise you on the additional coverage that you require.

Homeowners demand more accountability

In a recent poll carried out by South Florida Sun-Sentinel, the consensus clearly suggested that the voters in the area are highly frustrated and upset with the support system offered by homeowners insurance companies. This dissatisfaction largely stems from the reaction of these companies to the back to back hurricane seasons. The poll was conducted in the last week of February.

A large number of voters indicated that the state's appointed insurance commissioner should be an elected post. The voters are now demanding higher accountability so that it is ensured that the companies fulfill their duty in the wake of any disaster. Further following the claims filed due to the loss caused by hurricanes in the last season, a number of homeowners insurance companies have hiked their rates. This has also contributed to the increasing dissatisfaction and rightly so.

There is an urgent need for these insurance companies to become more responsible and responsive.