Homeowners Insurance Lowdown

High waters near your home?

Rivers lakes and other water front property owners should be a wiser lot when it comes to homeowners insurance right? However, surprisingly homeowners with flood insurance cover are fewer than 15 percent taking both homes and other buildings along the river, a state official of Boise River country said last week.

Flood insurance is not cheap, especially along the river's edge but the rate goes down as you move away from the river. In some places flood insurance can go up to $350 a year. But as spring thaws the snow peaks the river waters are rising and making homeowners nervous.

So what can the waterfront homeowner do? The answer is simple make sure you have flood insurance and yes you need to get this insurance separately and it is not included in the regular homeowners insurance.

However, looking at the stats in some river areas there is a startling percentage of people who still have no flood insurance. Homeowners in a 100-year flood plain are required to get insurance but how can only 15 percent be the bothered about floods? This is despite the fact that state law requires Realtors to tell their clients "all adverse material facts actually known or which reasonably should have been known." Mortgage companies also require flood insurance to finance property within a 100-year flood plain.

So as waters rise people are slowly going in for flood insurance but the longer you drag your heels the lesser your chances of having flood insurance before the floods come in and cause your home several thousands of dollars of damages. Please remember that there is a thirty-day waiting period for flood insurance so if you don’t hurry up you might just end with no insurance when the flooding happens.

Come on people it’s not just the hot weather that can flood the rivers even a couple of days of rain can be enough for flooding. So go figure!

DIY Home Projects anyone?

Are you are DIY fanatic who is always chalking out projects for your home? Chances are that you have answered in the affirmative as more and more homeowners are plucking up enough courage for do-it-yourself home improvement projects.

So why do I say that chances are so? DIY is big money, the industry is growing and the stores are doing great business everywhere. We now have all TV channels with atleast one DIY show not to mention the other lifestyle channels with a growing fan base. These shows either have a group of people or an expert like Nate Berkess telling you how to DIY.

Stay with me now… So all this DIY on your home and any what if you are not successful? This could be bad as DIY jobs themselves are often expensive and if you mess up that's double the expense. So what can a DIY fledgling do? You guessed it right get homeowners cover just for that. Now keep in mind that you don’t have cover for the slip-ups you make with DIY with your standard perils included in your homeowner’s insurance.

DIY homeowners in the UK can take out accidental damage cover as an add-on to buildings and contents insurance. This will typically add between £20 and £60 to an annual premium and cover for damage to fittings or the home itself caused by disasters.

The most common DIY disaster in the UK is spilling paint on carpets, with replacements costing about £1,250. Repairing damage caused by nails being knocked through pipes can cost as much as £2,000. No small amount this and if you are accident-prone you may want to pay for some add-ons to your homeowners insurance.

You may be lucky if you have full accidental damage insurance and in this most common DIY disasters will be covered. However bigger projects like putting in a roof or building a new bathroom you may want to check with your insurer first. The last thing YOU WANT is to end up with a DIY disaster that could have had cover for a small add-on.

Citizens Hike Condo Rates in Florida

Now it’s Citizens turn… The state backed insurance company and insurer of last resort has released details of its board’s decision to increase the rate on windstorm insurance for condominiums and homeowners associations.

The aim is to discourage homeowners from homeowners to be forced to look for private insurers. So a hiked citizen rate may encourage you to look for insurance elsewhere the truth is that there is really no private insurers coming forward.

With as many as 36,554 condo associations statewide, and more than half of those amounting to 20,749 policies are located in Miami-Dade, Broward, Palm Beach and Monroe, in Citizen’s kitty. So this is more monetary trouble for homeowners with condos with Citizen cover.

This rate hike covers its high-risk windstorm policies -- about 12,000 in South Florida. This is the first rate increase for this group of policies since Citizens was created, said Justin Glover, Citizens spokesman.

Though these rates are not approved yet it is expected to go through soon so depending on where the property is located and how it is constructed, the rate hikes in South Florida will range from:

Miami-Dade has a hike from 30 percent to 48 percent, Broward from 51 percent to 83 percent, Palm Beach from 71 percent to 87 percent and Monroe from 158 percent to 206 percent. The numbers speak for themselves.

Citizens is definitely being pressured to do so as other private insurers are doing just that and are even going up to a 35 percent increase. There is also that little problem of the state law which requires the state backed Citizen to be charge more than other insurers.  All this anyway does nothing to help the homeowner here as windstorm insurance and other insurance cover for homeowners is non-existent and that’s the hard reality here. 

Hurricane Insurance Bill

In Florida the House has begun debating on the hurricane insurance bill knowing fully well there are no easy answers or assurances to give the people. Not surprising as no one has control over the weather and hurricane season is around the corner.

First let’s look at the problem in Florida – 13 million people live in the coastal belt and there has been no respite really for them. Nature’s fury on one side and skyrocketing insurance premiums coupled with bailing out insurance companies on the other side.

The problem has escalated so much that people have complained to their legislators about the 50 to 100 percent spikes in their annual premiums. "This is a very tenuous step of trying to bring back a market . . . with no guarantees. We take the first steps with this bill of trying to entice a market back”, said the bill's House sponsor, Rep. Dennis Ross, R-Lakeland, as the House began floor debate. So what are the aims of this bill?

Get more private insurers into the market will be the first aim. With more insurers coming into the market there is hope that premiums will come down. More private insurers will help lighten the load on the state backed Citizen Property Insurance the insurer-of-last resort for people with no private insurance.

But according to Senate President Tom Lee, if Florida continues to see four storms each year costing insurance companies $15 billion, government might not be able to do much to convince private insurers to stay.

The legislators may make it easier for private insurer to fall back on the state’s Hurricane Catastrophic Fund if their losses go over a certain limit. The bill is likely to be passed next week and no one is expecting any miracles. But it is a beginning!

It’s advantage small insurers in Florida

Citizens, the state-backed insurer of last resort in Florida, has run up more than $2 billion in deficits the past two years and Florida homeowners with insurance policies are expected to pay to cover this shortfall. But nearly one-third, or 1.7 million, will pay much less than others. Palmbeachpost.com reports:

Those who shelled out less did so because of a special exemption in Florida law that allows some smaller insurers, known as limited apportionment companies, to pay a small portion of the assessment. By extension, their policyholders — about a quarter-million of who are in Palm Beach, Martin and St. Lucie counties — pay less.

Read more: Small insurers hold advantage

Still repairing after Wilma?

South Florida homeowners with homeowners’ policies from Poe Financial Group's Atlantic Preferred Insurance Co. and Southern Family Insurance Co. with home repairs pending from the previous year’s hurricane will not get their policies renewed. Both homeowner’s insurance providers recently told state insurance officials they won't renew more than 186,000 policies statewide because of $2 billion in losses from the 2004 and 2005 hurricane seasons.

Numerous homeowners wait for their claims from these two huge companies to finish the restoration of their homes but now that there are not going to be any renewals they will face the tough task of finding other private insurers. Not surprising with the frequent hurricane onslaughts that Florida has seen.

So now it is a catch-22 situation as you are still doing up old damages while old provider has told you that they will not renew your policy and new providers will not take you as you still have repairs left. So what’s left is the insurer of last resort the state-backed Citizens Property Insurance Corp that will not be liable for the present damage.

Can it get any messier you may wonder? You are now waiting for your claim to be paid to repair your home and so have no funds and chances of further insurance still remains a big question mark.

Atlantic Preferred Insurance Co. and Southern Family Insurance Co both have resorted to this decision despite specific state rule that requires insurance companies to keep the policies of customers who have open hurricane claims. Both companies have stated they don’t have the money to keep their business running and therefore cannot afford to renew policies.

So the state-backed Citizens will most likely get these policies, which are to be discontinued, and therein lies the next problem – Citizens has a deficit of more than 1 billion dollars and how it’s going hold up remains to be seen. Florida residents are now reeling under their home insurance problems after the ridiculously insane value increases in their properties which were really too good to last long.

Respite for Floridians, but...

Homeowners with waterfront property are facing tough times as home insurance rates are zooming and insurance companies are either refusing insurance or charging the earth for a homeowner policy. There seems to be no solution to the hapless waterfront homeowner, as state owned insurance providers like Citizen for example are heaving under huge deficit.

Citizen is of course a last resort insurance provider and where else can you go? Are we to give up homes near lakes and rivers and move to low-risk areas? It’s bizarre how homeowners insurance that is there to provide us protection from loss or damage to property is itself now in need of a rescue.

The state of Florida came to the rescue of homeowners by channeling their budget windfall into its resident’s homeowners’ insurance deficit. Fiscal Council Chairman Joe Negron, a Republican from Stuart, Fla., said he was dropping his proposal for a one-week sales tax holiday in August in favor of the using $920 million to pay down the Citizens' deficit. He said that virtually eliminating a statewide insurance assessment on Florida real estate owners would be the equivalent of a major tax cut.

The $920 million will pay for a little more than half of the Citizens' deficit, while the remainder will be paid back over a 10-year period -- reducing the cost to consumers to about $10.70 per $1,000 in premiums annually over the next 10 years. The legislators have such a large budget because of the increased Florida property tax revenue.

So, the high value of properties and the revenue from property taxes will bail out Floridians from this mess for now. However, what’s going to happen if another storm strikes Florida? Analysts say it could run up a deficit of more than $25 billion as densely populated places are full of Citizens policies.

Legal Defense Costs Covered By Your Homeowners Insurance Policy?

In case you are sued, is that covered under your homeowners insurance policy? Yes it is. Your homeowners insurance policy would cover the cost arising from your legal defense. In fact the insurance company would also provide the legal counsel.

Is Your Home-Run Business Covered Under Your Homeowners Insurance Policy?

If you are running a business from your home, would that be covered in your homeowners insurance policy? Most policies do not offer coverage for a business that is being run from home. So as a result, you would need to purchase a separate policy for this purpose.

At the same time, some insurers do offer the option of including this coverage in your policy. To find out details, you would need to speak with the representative of the company. Also, if the coverage offered does not suit your requirements then it would make sense to purchase coverage from another insurer.

Take Rebuilding Cost Into Consideration While Buying A Homeowners Insurance Policy

When you are buying a homeowners insurance policy, remember you need coverage for the physical structure and not for the land that the house is built on. As a result, you would need to determine how much would it cost to rebuild your house?

An agent can help you in determining the basic costs. At the same time there are certain factors that have an effect on the rebuilding cost. These include the location of your house, in terms of the city and the basic rebuilding cost here. Next would come determining the kind of roof that you have and its cost.

You would also need to take into consideration the number of floors that your house has and the number of rooms and bathrooms. Ideally, you should take the advice of a contractor or a builder while determining the cost so that you have an accurate figure and can buy your homeowners insurance policy accordingly.

Urging Insurers To Write Homeowners Insurance Policies

Jim Donelon, the State Insurance Commissioner, is trying to get more companies to write homeowners’ policies in Louisiana. This would help in making the premiums that have to be paid, more reasonable for the residents. 2The Advocate.com reports:

Currently, there are 20 insurance companies in the state that each write 1 percent or more of the homeowners’ polices in the state. All Louisiana residents have the option of getting insurance through the Louisiana Citizens Property Insurance Corp., which was created by the state Legislature in 2003 to act as a safety net for those who can’t get policies from private insurance companies.

Homeowners Insurance Policies

Homeowners’ insurance policies often differ according to the coverage provided.  Protection is provided in different levels to the homeowner.

Actual Cash Value protection is given to your property’s replacement value at the time of loss after depreciation. This is the most common form of homeowner’s insurance coverage.

As a homeowner you can also opt for a policy that has specified cap coverage. So what you can do is insure your home for $100,000 at a cap of $150,000 so if you suffer a total loss and you need $150,000 to rebuild, you have what is called an Extended Replacement Coverage.

Then you have Guaranteed Replacement Coverage and as the name implies this type of homeowners policy guarantees the replacement costs in the event of damage or loss. So as expected the premiums are high but it also gives coverage to the increased worth of a home accrued after the home improvement changes done by the owner.

So a home which was worth $ 100,000, which with some style changes is now worth $200,000, will be given the $200,000 in the event of fire or other loss. Guaranteed Replacement Coverage, will payout the loss even if you are under insured and are especially great when you are not sure how much re-building your home will cost.

Inflation protection clause is also great option for a homeowner, as the policy will adjust the policy to account for increases in cost of rebuilding. The key is not to be over or under insured and remember the land value should not be added while calculating home value. 

Most homeowners have expensive collectibles like paintings and other art items that may be of considerable value. Often people also keep jewelry and other valuables at home and in the event of fire or other eventualities that may cause a total loss of property make sure that you opt extra coverage for jewelry, collectibles and other valuables.

Pointers to win back a denied claim

What do you do when homeowner insurance company denies your claim? Don't give up, as there are a few things you can do to fight back.

Don’t take the “no” as the last and final word chances are that going back to the insurer can get you a reversal in decision. Stats say you have a 50% chance in getting back the claim and only 1% claimants question the denial!   

Another handy trick is to ask for the denial in writing with ample explanation for denying the claim. You may have guessed by now that most insurance providers are really not comfortable in giving anything in writing.

Now that you have the reasons in writing comb your policy for the reasons for denial and note down points that don’t seem valid enough. Make a query in writing to the insurance company quoting the policy wherever required.

Insurance companies have a claim filing process, which dictates the time frame within which claims should be filed. Claims may be denied stating “claims process errors” arising out of forms not being filled correctly or delay in filing for claims.

Always contest "claims process errors" as an insurance company cannot usually refuse to pay a claim that is otherwise valid just because of a claim filing error in most legal jurisdictions, unless it can show that your error either harmed the company, or prevented it from investigating adequately.

Call the State Insurance Department or the Department of Insurance and know your rights.

Keep in touch with your insurer every week make sure to talk to supervisor’s and managers and follow up with letters referring to phone calls. Keep records of names and copies of all communications with the insurance company.

Hire an agent to fight your claim and usually he will pay himself when he wins. The "no win no fee" arrangement is great but check how much you will pay if you win and who will pay before hiring the agent. Lastly, hire a lawyer - insurance companies are prompt whenever a lawyer gets on the scene but it can be costly.   

Homeowners insurance questions swirl after storm

Are you jittery and worried that your homeowners insurance is not good or adequate to withstand any more severe storms? The best thing you can do is take a personal inventory of your belongings on a routine basis so you’re not caught unprepared when disaster hits. Hendersonvillestarnews.com reports:

Homeowners might be wise to consider buying a policy that provides "guaranteed replacement cost," meaning the homeowner is covered for unexpected price increases in materials costs that can make it more expensive to rebuild.

Read more: Homeowners insurance questions swirl after storm

New Orleans homeowners may pay 52% more for insurance

If you live in New Orleans and have a homeowners’ insurance policy from Allstate Insurance Co, then get ready to pay almost 52 percent more for your insurance. Under a change approved by a majority vote of Louisiana Insurance Rating Commission, the change in insurance rates will be effective from June.

Allstate is Louisiana’s second-largest homeowners insurance company and has over 200,000 policyholders. According to the company, the increase was mandated because this year, there could be another busy storm season. Another reason was that the cost of reinsurance, the extra insurance carried by insurance companies to help them pay on catastrophe claims, is rising.

Allstate seems to have learnt some bitter lessons from last year’s storm and is probably not willing to take any risks this time around. The company did not have any reinsurance for Louisiana when Hurricanes Katrina and Rita hit the state. Following last year’s record hurricane season, the company bought a one-year nationwide reinsurance policy for all catastrophes.

However, not everyone is going to have to face the sudden price hike. Allstate policyholders in parts of the state such as Shreveport and Monroe will see decreases that will range from 13 percent to 16 percent. However, the exact amount of increase or decrease will depend on many other factors as well. The location of a home, its type of construction, its replacement value and the size of the policy's deductible are all factors that will be taken into consideration by the company when deciding the rate change.

$920 mn bailout plan for Citizens Ins.

What happens when your last resort is in a mess and requires immediate help? This is the situation that Citizens Property Insurance Corp, the state-run insurer of last resort finds itself in. And now, the Florida state House and Senate are moving on different bills with the same intention: cash for the insurer of last resort. Both chambers of the Legislature are attempting to pass a plan that will bail out Citizens – only that the price tag will be quite steep at $920-million.

The bail out plan is actually a means to ease homeowners' insurance costs statewide. At present, Citizens faces a $1.7-billion deficit due to hurricane claims. Under the legislation, while homeowners would still see rate increases, they would be on the hook for far less: as little as a $10.70 increase per $1,000 of premiums each year for a decade. House and Senate leaders will work out the final figure in private talks that will include other budgetary issues.

Condominiums troubled by high insurance costs

As hyperactive hurricane seasons become more of a norm than an exception, condominium associations in Florida now find that their single biggest expense is not the cost of operating and maintaining their facilities. It is hurricane insurance! And the worst part is that it is becoming increasingly difficult to find an insurance carrier willing to write a policy even if you haven’t been hit by a hurricane.

Many such associations are now forced to turn to Citizens Property Insurance, Florida's insurance of last resort. And the worst part is that the size and value of these properties usually make finding insurance difficult. Of course, there are still a few insurers who are willing to insure such properties. The only hitch here is that they charge exorbitant rates and sometimes, their rates even exceed that of Citizens. Bradenton.com reports:

The Florida Bankers Association and the Florida Association of Insurance Agents support a new House plan being examined. The plan would help bring insurers back to Florida by offering them incentives to take on more high-risk properties.

Read more: Condo conundrum: Insurance costly, elusive

Termite Damage Covered By Your Policy?

Have termites infested your home? Well, the sad part is that homeowners insurance policies do not cover damages that arise due to this.

So as a result, it is imperative to take the requisite pest control measures. At the same time, you can ask your pest control service provider if they offer any warranty in the case of infestation.

Damaged Fence – File For A Claim

What happens if your brick fence is damaged by a vehicle? And especially if it is a hit and run case? Would this be covered by your homeowners insurance policy?

The answer in this case is that yes, it would be. But only if the fence has not been damaged by your vehicle. You would need to pay your deductible and the remaining damage cost would be taken care off by the insurance company.

And in certain cases if there is an ambiguity regarding the cause of the damage, then your insurance company might refuse to pay for the loss. So make sure, that all the required proofs are in place before you contact the insurer.

Homeowners Insurance Policy Does Not Cover A Vehicle Stolen From Your Driveway

In case your car is stolen from your driveway, would that be covered in your homeowners insurance policy? No, it is not.

Ideally to ensure that your vehicle is safe, you must purchase a separate auto insurance policy. In fact, to avoid confusion, make it a point to read your homeowners insurance policy to know exactly what all is covered.

Rain Damage Is Not Covered Completely By A Standard Homeowners Insurance Policy

Does you homeowners policy cover any loss or damage caused by rain? Well, the answer in this case is, yes and no.

In case of any damage caused due to rain, hail or snow, that would be covered by a standard homeowners insurance policy. But if the damage is caused by flood, landslide or a mudslide, then that would not be covered. As a result, if you live in a flood prone area, then it makes sense to purchase a separate flood insurance policy.

It is important to take into consideration, that a flood insurance policy becomes applicable only after 30 days of purchasing it. So make sure that you purchase the policy well in advance. Also, this policy would not cover the damage caused by a landslide or mudslide. You would need to consult your insurer or your agent on how you can protect yourself from losses arising from these.

Selecting The Right Insurer

Are you looking at purchasing a homeowners insurance policy for the first time? Well, do make it a point to select the right insurer. There are a few basic points that need to be kept in mind in order to make the ideal selection.

The first and the foremost in this case of course would be the coverage that you require and if the insurer offers that coverage. The next would be the rate that the insurer is offering. Ideally, you should compare that rates that are offered by different companies and select the one that is the best.

Following that, you need to take into consideration the service that the company offers and the complaint rate. The complaint rate is determined by comparing the number of complaints that are accepted or approved by the state's insurance regulators against a given company, as a percentage of the total amount of policies that are written by the company in that state. This would help you in determining if the company makes it a point to satisfy its customers. If this is not the case, then you should stay clear of such a company. Every company would have a few complaints as it is virtually impossible to satisfy all customers, but at the same time the higher the ratio, the more are the chances that even you would not be satisfied.   

Once you have selected the homeowners insurance company, make it a point to carry out an in depth study about the company. Research its background and also take into consideration the asset and the liability ratio.  This ratio can help you in determining the financial strength of the company and in determining that the company would be able to meet financial demands even in the case of a major disaster.

With these basic factors taken into consideration, you can rest assured that you would make the right choice.

Rain insured your home yet?

If you live in the Bay Area and have been watching the incessant rains drenching your home, you have probably been wondering if your homeowners insurance applies in the event of a flood, landslide or mudslide. Chilling answer is: It does not. Standard homeowners insurance does not cover damage caused by floodwaters or by landslides and mudslides. Insidebayarea.com reports:

To be protected from flooding, homeowners need to buy a federally backed policy from the National Flood Insurance Program. The program is administered by the Federal Emergency Management Agency. There are limits on coverage and it's also not cheap, which perhaps explains why there are only 255,000 flood insurance policies in California.

Read more: Rain insurance: A pipe dream?

Are insurance companies intentionally delaying Katrina claims? Hood thinks so

Attorney General Jim Hood is an angry man. He is upset about insurers' denial of Hurricane Katrina claims in Mississippi, and has been quoted as saying that these companies are “in lockstep like Nazis locking arms, coming at those people down there on the coast.” Hood has a lawsuit pending in state court over questions about what the insurance companies must pay.

He, like most others, believes that the insurance companies are trying to wriggle themselves out of this situation without losing any money in the bargain. Hood filed a lawsuit in September last against five major insurers. They had refused to cover damage caused by the storm surge. According to insurers, many policies do not cover damage covered by wind-driven water. They claim that contracts can't be changed after a disaster to force the coverage.

Have you been invited to the insurers’ party?

You probably don’t stay anywhere close to the Gulf Coast and the closest you got to the hurricanes, that ravaged the states along the coast, was through your telly. So why do you have to scramble around to get a homeowners insurance at a reasonable rate? Because the insurance companies are still reeling from the losses they incurred during the last bout of hurricanes and are no longer ready to face any additional losses. That probably still does not answer your question.

Actually, what we are experiencing is something of a trickle-down effect. But if I am to make myself any clearer, I will have to start at the beginning. During last year’s hurricanes, major insurers in the country suffered losses to the tune of $56 billion. They are now no longer ready to face such a huge loss. So what do they do? Drop policies or not writing new ones in coastal areas from Texas to Florida and up the Eastern Seaboard as far north as Massachusetts. In other words, they drop them like hot potatoes! They don’t want to handle the risk of fresh storms and the resulting losses. So, you are left to scramble around to find new coverage, often at higher cost. And guess what, some home insurers also are winning regulatory approval to raise premiums in states hit by hurricanes Katrina, Wilma and Rita – it’s something like getting legal approval to loot you.

And now that they’ve tasted blood, they don’t want to let go. So, rate increases are expected to spread far beyond coastal areas – you never know, a hurricane may hit these areas as well! And insurance companies are not without their cronies in this party. Reinsurance companies, who insure the insurers, have also begun charging sharply higher prices. They believe that hurricanes will become more frequent and more intense and hence the increased costs. So, the insurance companies now complain that they have no choice but to recoup these added costs from consumers.

Unbelievably atrocious? You bet. So, what do you plan to do about it?

Will state-run wind coverage proposal hurt Florida consumers?

According to some people like the Property Casualty Insurers Association of America, the problems in the Florida homeowners insurance market can be solved by the overly simplistic idea of establishing a state-run wind coverage program. Americans for Insurance Reform recently issued a report that concludes that wind coverage should be removed from the private market homeowner’s insurance policy and be provided through a state-run entity. Insurancejournal.com reports:

The report's solution to "remove the private market from the equation" in order to keep prices low for consumers fails to explain where the money will come from to pay claims. While it states that rates would be actuarially sound, that would mean that rates will remain high in order to reflect costs stemming from hurricanes and other losses.

Read more: State-Run Wind Coverage Proposal Would Hurt Florida Consumers

Maine homeowners’ insurance to go up

The possibility of a large hurricane seems to be enough to trigger off a raise in the homeowners insurance in Maine. According to some people, a large hurricane is overdue in Maine. And since this could wreak unforeseen damages, it is only fair that the homeowner’s insurance rates be raised to cover the eventuality. However, this is not the only reason Maine could see its home insurance prices skyrocketing. The rising costs of reinsurance, the backup insurance to cover carriers in case of major catastrophes, and poor returns on investments are blamed as the real reasons behind the move. The impact of reinsurance looms as a potential factor largely because of last year's three hurricanes Katrina, Rita and Wilma.

But what is interesting here is that Maine is not in the usual track for tropical storms. However, increasing fears that the Northeast is overdue for a major hurricane and the fact that tropical storms have been occurring more frequently and with greater intensity seems to have forced the citizens to do some real thinking. Boston.com reports:

"There is a need for our company to want a rate increase," said Charles Brakeley, vice president for insurance operations at Patriot Mutual in Brunswick. But the company has held off because of competitive pressures.

Read more: Maine homeowners may see higher insurance rates

State Farm Insurance Faces Charges

According to recent reports, a lawyer for U.S. Sen. Trent Lott alleged that State Farm Insurance Co. is destroying documents in order to remove evidence that the insurer denied claims on false grounds. These claims were made by homeowners who suffered losses due to Hurricane Katrina. The London Free Press reports:

Like thousands of Gulf Coast homeowners, Lott's claim was denied because State Farm concluded Katrina's flood water demolished his beach-front Pascagoula home. State Farm says its policies do not cover damage from rising water, including wind-driven water.

Basic Pointers To Get The Ideal Homeowners Insurance Policy

Buying a homeowners insurance policy? Don’t just take the advice of an agent or simply pick up the cheapest policy that seems to fill your needs. Instead, look at the policy in detail, consider the coverage that it offers and try cutting costs wherever you can. At the same time, make sure that you have enough coverage.

First and foremost decide the coverage that you require. Read the policy in detail, if you feel that there is certain coverage that you do not require, exclude it. In case you feel that there are certain areas that need to be addressed and covered through your insurance policy, get those included.

Review your insurance policy annually. You might have added certain things to your home that would imply that you need extra coverage. At the same time you might have purchased safety or security equipment that can help you in lowering rates. It is important to update your policy regularly.
Try purchasing your auto and homeowners insurance policy from the same insurer, this would help in reducing the premium that you have to pay. Also, if you have been with the same insurer for a while, then he might offer a discount to you when you renew your policy.

Also, remember that if you have a newly constructed house, you would probably have to pay lower premiums. And your homeowners insurance premium is also affected by the type of construction of your house. In case you have any doubts about this, you can consult the insurer or the agent.

But before, you finalize the policy, make sure that you have enough coverage and that too at the best rate.

Expensive Oklahoma

A recent study shows Oklahoma is the 3rd most expensive state in the country for home insurance. However, according to some, the high cost of insurance is worth it. Kotv.com reports:

“People are silly to go through life without insurance." Wayne Garris should know, 2 years ago, a storm struck Tulsa and damaged his mother-in-law's house. "And it put a hole about like that through it." Since then, the home has been repaired. "They fixed it and re-roofed the whole house and it's in tip-top shape now."

Read more: Price Of Homeowners Insurance Is Going Up

Planning Home Improvement? It's Not Late To Add Riders to Your Policy

Are you planning on a home improvement project? Have you budgeted for all possible expenses? You may not have catered for some unforeseen financial troubles that may crop up for which you really have options for in your homeowners policy.

Do you know that homeowners insurance only protects what is already there and not the appendages or improvements you may have planned for your home? 

What are the liabilities you need to cater for while doing a new project on your home?

1. Let’s assume you add an awning to your porch and it accidentally falls into your neighbors’ property and cause some damage. This is a new part to your home and therefore not covered by your homeowners insurance.

2. While the project is going on you may face the threat of materials being lost, damaged or stolen which will need to be replaced. This will not be covered by your standard policy.

3. I’ve known homeowners who have had to deal with injured workers and neighbors while such projects are being executed with no insurance help. Sometimes even passers-by can end up having a fall as a direct result of the work being done in your home. You can imagine having to worry about this expense while doing a project on your home.

However, it is not too late! Check with your insurance agent and have an open talk about your home improvement projects and work out an added rider that is to be paid for the time of the project. Often these riders don’t cost too much and what you get is peace of mind to focus on your home.

Of course, you can be sure that costs for this added security would vary with size of the project and will be somewhere between $200 to $ 750. Remember that part of your project will be covered by your contractor’s policy and so have a talk with them about it and get their know-how on this.

Atlantic Preferred Insurance Co. To Cancel Policies

Atlantic Preferred Insurance Co. has announced that it would be canceling approximately 140,000 homeowners insurance policies held by homeowners in Florida. The decision has been taken to cover up losses faced in the last two years in the hurricane season. Az Central reports:

The company will begin dropping the policies July 13, as they come up for renewal, to curb losses from hurricanes in 2004 and 2005. The company had hoped to raise enough money to prevent the need to cancel policies, but that did not happen.

Enough Homeowners Insurance Coverage?

According to a recent survey carried out by Marshall & Swift/ Boeckh, two out of every three homeowners in Edmond do not have enough insurance coverage.

This can largely be attributed to rising cost of construction. As a result if you have not updated your homeowners insurance policy in the recent past, you are probably under insured. At the same time if you had made improvements in your house or have modified it and this is not reflected in your policy, then it probably means that you once again, do not have enough coverage.

Also, a number of insurers have modified their guaranteed replacement policies in order to serve their interests. As a result, this negatively affects the coverage that you hold.

So ideally, instead of waiting till disaster strikes, take heed of the warning and take the necessary steps.
The Edmond Sun reports:

Each year this company estimates construction costs and annually reviews three million insurance polices.  The most recent analysis revealed that the typical homeowner is 27 percent underinsured.

Re-evaluate Homeowners Insurance Coverage

Do you have enough homeowners insurance coverage? Don’t just say yes, instead evaluate your policy. Read the details given in your policy and in case you have any doubts, clarify those with your insurer or the agent.

The homeowners insurance coverage should be on your house and not just on the land or the mortgage. In fact, the coverage may or may not include the cost of the land, but the house should definitely be covered. This is because in the case of a disaster, in most probabilities, your house would be affected and not the land on which it is made.

You can also take the advice of builders or contractors regarding the kind of coverage that you require. They would be able to give you updated figures for reconstruction of your house.

In case you have trouble computing the exact coverage required, hire an appraiser. This might cost a little, but would ensure your protection in the long run.

The Process Of Making A Claim

Homeowners insurance is in the news now regularly thanks to hurricanes and storms coming one after the other. So what do you do when you have to make a claim? The claim could be theft or damage to property.
 
If there was a theft in your house the first thing would be to report it to the police, lodge a report and make a note of the names of the officers that you spoke to.

Photographing or taking a video of the damage is a good idea and taking stock of whatever is left or damaged by making a list is a must. Make copies of the list for the insurance company and for yourself. It is ideal if you have the insurance personnel see all the damage so don’t throw out anything till it is seen.

Call up your agent and ask the following questions:

1. Are you covered?
2. What is the time limit on filing claims?
3. How long to process claim?
4. Should you need to produce estimate for repairs?
5. Will the claim be more than your deductible?

After all this is done make temporary repairs to prevent further damage. Remember to keep the receipts of all such repairs as they can be submitted to the insurance company for reimbursements.

Homeowners’ insurance policy also covers other expenses like “loss of use” of your home. So, if you move to out to make repairs you can claim the expenses of for your temporary accommodation showing receipts.

The insurance company should send you the claim forms within a specified period, which can change from state to state.

Send the filled claim form and then the adjuster comes for an inspection. Once this is done you can come to an agreement and according to state law you should given payment immediately. Remember to contact your state department of insurance for any further queries.

Hurricane losses force insurers to drop Florida policies

You begin to wonder if it is your fault that a hurricane happens. I mean there you are with a proper homeowners insurance covering your home and everything in it. If you live in hurricane country, you are especially careful to ensure that your home is insured. Last year’s hurricanes Katrina and Wilma left nothing to imagination as to the destructive powers of hurricanes.

So, there you are, a diligent house owner who does not grudge his regular payments. And then, when your policy comes up for renewal, you realize that your policy has been dropped. You’re not alone in your predicament. Around 140,000 Floridians will soon be losing their homeowners insurance as one more insurer decides to drop Florida policies unable to bear hurricane losses. Atlantic Preferred Insurance, a subsidiary of Tampa-based Poe Financial Group, will begin dropping its policies July 13th as they come up for renewal. The company claims that it needed to lure investors to help cover a $2 billion hit from claims in the 2004 and 2005 hurricane seasons.

Florida residents asked to replenish catastrophe fund

If you live in Florida and have a home insurance or any other type of insurance, get ready to contribute quite a tidy sum of money to the Florida Hurricane Catastrophe Fund. This fund is a pool of money that is has been set up to help insurers offset major hurricane losses. Presently it is running a deficit of $955 million.

The problem with this bit of news is that it comes on the heels of another bit of unpleasant news. Florida homeowners are facing an assessment to cover an estimated $1.7 billion deficit of Citizens Property Insurance Corp., the state's insurer of last resort. The catastrophe fund will issue bonds to cover the shortfall in funds. The cost of issuing and paying interest on those bonds will be passed on to all of Florida's property and casualty insurance policyholders, including homeowners, automobile owners and businesses. Palmbeachpost.com reports:

The catastrophe fund is something few Floridians have heard of, but it has been vital in maintaining the state's shaky homeowners insurance market. Created after Hurricane Andrew in 1992, the fund offers reinsurance for insurance companies at one-fourth the private-market price, giving them an incentive to do business in the state. The companies pay into the fund annually and, after they pay out about $4.5 billion in property claims, they can tap it.

Read more: Insured? Get ready to dig deep to replenish catastrophe fund

Do you Have A Beach House Worth A Fortune?

Who wouldn’t want to own a beach house one day? Everywhere the dream is perpetuated - in movies,magazines and even television commercials. So, if real estate people and web sites succeeded in getting you to take the plunge and purchase one, you may now have, with home values zooming, a million-dollar abode!

The million-dollar-house paradox: Home values soared and now we have a growing number of million dollar houses that were bought for a fraction of its present value. We also have million-dollar homes owned by people who have lost out their 'Millionaire' Tag owing to the huge homeowner insurance they have had to cough up for their beach houses.

In fact the hurricanes have done their bit to skyrocket homeowners insurance premium so much that owning a million-dollar home in Miami Beach or Palm Beach does not guarantee homeowners insurance.

High-risk factor: The recent hurricane and tsunamis are also making beach houses in the high-risk group. What happens here is that every year as people panic with more hurricanes hogging the news, insurance providers are hiking their rates with yearly “hurricane surcharges”.

If you're totally rejected by all insurers, you can usually get coverage through your state's insurance pool -- which often costs about 25% more than if you could have qualified for the average homeowners policy.

Owners of million-dollar homes might also choose to go without insurance because they often don't have mortgages.

The taxpayers in up market Florida Palm Beach and other beach counties are now an up-in arms against premium rises made to keep high-risk insurers who provide last resort homeowner insurance afloat. The government is now stepping in to stop high-risk home insurance providers from extending homeowner insurance to the super rich.

What can a regular homeowner with a million-dollar home do? I’d say do up the home and put it on the market and hope a multi-millionaire takes it away from you.

Storm insured your home yet?

In some parts of the country, storms are a way of life. One moment you have a home to call your own and the next instant, the roof over your head is blown away in a tornado. Most people living along the coastline have seen the devastating effect storms can have on their homes and consequently, on their resources. If you live along the coastline, one of the first things you ought to do is take a storm insurance on your home. So, even if a storm strikes, you have most of your stuff insured.

While this is something most people know and do, there is something about the storm insurance taken by most people that is worrying insurers. According to insurance agents, a large number of people forget to update their insurance policy with everything inside the home, like the new TV or refrigerator… So, while almost all homeowners have the same insurance policy, the difference lies in keeping the policy up to date. And here’s where problems can crop up. According to insurance agents, your basic homeowners policy will rebuild your home. However, unless you’ve documented all your belongings within the house, your policy won't replace what was inside.

And how are you supposed to document your stuff. Agents say the best way is to either take a picture of it or videotape it in your home. Follow this up with a written list of all the items. Once you’ve done this, meet your insurance agent who will now be able to help you get everything important added to your policy.

New Flood Insurance Policy has a $15 million limit

The Chubb Group of Insurance Companies recently introduced Personal Flood Insurance to help homeowners protect their homes and possessions from damage due to hurricanes and other natural disasters. The policy is offered with limits up to $15 million for a home and its contents. It provides a much broader coverage than what is available through the National Flood Insurance Program (NFIP). Usually, most homeowners’ insurance policies exclude flood losses. Biz.yahoo.com reports:

The Chubb policy can provide up to $15 million in property coverage, including home and possessions, compared to a maximum of $250,000 for homes and $100,000 for contents through the NFIP. With Chubb's policy, coverage is available in most flood zones, and "flood" is more broadly defined to include losses confined solely to the policyholder's premises.

Read more: New Flood Insurance Policy Provides Up to $15 Million in Limits

Insurance rates may rise in Maine

Analysts believe that a number of factors may see homeowners’ insurance rates rising in Maine very soon. One of the major factors that could drive up the rates is the fear that the Northeast is overdue for a major hurricane. Boston.com reports:

Other forces that could nudge insurance rates upward include rising costs of reinsurance, the backup insurance to cover carriers in case of major catastrophes, and lackluster returns on investments that would otherwise ease some of pressure to raise premiums.

Read more: Maine homeowners may see higher insurance rates

Homeowners To Face A Tough Time

The hurricane season last summer led to a number of homeowners insurance companies hiking their premiums. A number f these companies cancelled existing policies, while others refrained from offering new policies.

This trend has been noticed in coastal areas extending from Texas to Florida and up the Eastern Seaboard as far north as Massachusetts. Now, the effect of these hurricanes is being seen even in areas that were not affected. This is basically attributed to the fact that besides the loss suffered by the homeowners insurance companies, even reinsurance companies have also begun charging higher prices. The role of these companies is to insure the insurers.

Amongst the insurers, Allstate, has indicated that it might be increasing the premium charged in a number of states in order to deal with the high reinsurance costs. The insurer had raised the home-insurance premiums in New York by 8.5 percent. It also plans to apply for an approval for rate increase in Connecticut and New Jersey. A number of homeowners insurance companies including Andover Cos. and Hingham Mutual Group, are not offering policies on Cape Cod and on the islands of Nantucket and Martha’s Vineyard. Homeowners in Rhode Island, have been informed by homeowners insurance companies that their policies would not be renewed. In Florida, a large number of insurance companies have informed homeowners that they would not be offering policies.
With these announcements in place, homeowners are in for a tough time as getting homeowners insurance policy would be quite a challenge.

Demand For Quake Insurance Stable, Not Sufficient

Following the San Simeon Earthquake, over two years ago, there was a sudden spurge in homeowners buying earthquake insurance. Though the number is still increasing, yet all homeowners in the area do not have a policy. The reason for this is usually the high price and the assumption that a similar disaster would not strike again. The Tribune reports:

Following the Dec. 22, 2003, quake, the number of San Luis Obispo County households with earthquake insurance rose more than 11 percent, according to the California Earthquake Authority. Local insurance agents have indicated that the number of homeowners buying quake insurance has leveled off since the 2003 quake, it has been steady but not like initially after the quake.

Get A Renters Insurance Policy

Are you staying in a rented apartment or house? Well if so, have you assumed that you do not need a homeowners insurance policy?

The fact is that you do not need a homeowners insurance policy, but you definitely need a renters insurance policy. Just in case, there is a natural disaster or a theft, your personal possessions would not fall under the insurance held by the homeowner. As a result, you would end up losing a lot of money as you would have no coverage. This makes it imperative to purchase a renters insurance policy.

Most renters insurance policies cover your possessions against loss from fire or smoke, lightning, vandalism, theft, explosion, windstorm, and so on. You can consult an insurance agent or contact an insurance company to find out the exact coverage that you require and to get an insurance policy.

Why do you require homeowner insurance?

Home is the most important possession for all of us. We can go to any extent to protect our abode. So, just like you take steps and measures to protect your family members, make sure you do something to protect your home. And investing in a homeowners insurance can be the best possible step.

Investing in a homeowner insurance can always safeguard you and your family from any unfortunate happening such as fire, burglary, theft, vandalism…,and so on.

Incase you plan to rebuild your home or some replacement and repairing work is in progress due to some mishappening like fire or any natural calamity, you can always get the financial support from the insurance company if you have insured your house.

Homeowner insurance not only protect your house from perils but also safeguard the assets in your house such as jewelry, appliances,..etc. You can avail an extended coverage option for all such items.

So, get your home insured now!

Allstate pulls back earthquake insurance

Allstate, the country's second largest provider of homeowner insurance has announced that it will no longer offer any residential or commercial earthquake insurance from next month onwards. This will be applicable nationwide and not just the state of Alaska. Adn.com reports:

The company will honor the policies of customers with earthquake insurance until Sept. 15 only.

Filing A Claim For An Accident Or A Loss Suffered

Have you recently had an accident or suffered a loss? Is this covered under your homeowners insurance policy? Do you want to file a claim for the loss incurred? Well, in that case you would have to take a few steps.

The first and the foremost is to inform the homeowners insurance company that you have had an accident or have suffered a loss. Following that, you would need to make it a point to ensure that the property is not damaged any further. As a result, you would need to take whatever steps are required to protect the property from further damage.

Next would come preparing a detailed list of the items that have been damaged and the estimate of the loss suffered. You would also need to show the damaged property to the insurance agent or the representative from the insurance company and provide a detailed explanation of how the loss occurred.

Following this the insurance company would takeover.

Homeowners Insurance Policy – All Risks Or Named Perils?

It is important to understand the difference between an all risks homeowners insurance policy and a named perils homeowners insurance policy. In case of the latter, only the perils that are listed in the policy are covered. On the other hand, in case of the former, all  types of losses that are caused due to any peril are covered. In this case there might be certain perils that are specifically excluded from the policy, so do ask the homeowners insurance company about these.