Homeowners Insurance Lowdown

Florida residents get double whammy from insurers

As homeowners across Florida renew the homeowners insurance policy, many of them are beginning to feel the pinch of the extremely high rates that are now being charged. Tens of thousands of homeowners across Palm Beach County and the Treasure Coast are feeling the same way as they open up their renewal notices this spring. Home repairs from two years of storm activity have worn down their patience, as well as their bank accounts. Palmbeachpost.com reports:

But state insurance regulators recently approved a spate of double-digit increases, and homeowners are left with few alternatives except to pay as they are slammed with a new wave of rate hikes just as hurricane season bears down on them.

Read more: Insurance premiums force tough choices

What does your flood insurance cover?

Incessant rains drenching your home? If yes, then you’ve probably tried to find out if your homeowners insurance applies in the event of a flood, landslide or mudslide. If you haven’t, then let me tell you – your standard homeowners insurance does not cover damage caused by floodwaters or by landslides and mudslides. In short, it does not cover you from any water from the ground! And this rule applies not only to overflowing rivers and streams but also to overflowing pools. So what are you supposed to do?

To protect your home from flooding, get yourself a federally backed policy from the National Flood Insurance Program, which is administered by the Federal Emergency Management Agency. Flood insurance also covers damage from flood waters carrying dirt, silt and mud.

And then you also have to contend with mudslides and landslides that can occur during the monsoons. Your flood insurance will not cover these calamities. I know, by now most of you are wondering: so what exactly does my standard insurance cover. Your homeowners insurance will cover damage to your house if a tree falls on it and will pay for debris removal. And be warned: if the tree falls on your property without damaging an insured structure, the cost of removing the tree will not be covered.

And by the way, if you were still thinking of the overflowing pool in the rainy season, then here’s a word of advice. All you need to do is take out three to four inches from the pool right before the rains begin.

Is your checklist ready?

What is it that differentiates a regular homeowners’ insurance policy from that of other, more financially savvy people? These people ensure that they update their policies regularly. Got you there didn’t I? If you are like me and most other people, you haven’t bothered to update your policy to mention the new television you bought last fall. While there are no exact numbers, insurance agents say that a lot of people forget to update their insurance policy with everything inside the home.

And this could be a big problem if you are flooded out this hurricane season. While your basic home-owners policy will rebuild your home, it cannot replace what was inside, unless you document it. So if you want to replace the things you lost, you have no other option but to document your stuff. You can both take a picture of it or video tape it in your home and write up the information on the items. Then you should meet your insurance agent who can help you get everything important added to your policy.

Homeowners Insurance Providers' Profitability To Be Scrutinized

Finally it looks like somebody is telling things as it should be said about the homeowners insurance providers. A study on the profitability of homeowners and private passenger automobile insurance companies was newly released.

The California Insurance Commissioner released a new report on the profitability of homeowners and private passenger automobile insurance companies. According to the Commissioner's office, "the study discloses that for the past two years, insurance companies have enjoyed a scenario in which the amount they pay for claims has dwindled, while the money they keep has soared."

"For the past two years homeowners and automobile insurance companies in this state have profited immensely at the expense of consumers. A new study from my office shows that the more money these companies keep from your premiums, the less they pay out in claims. In my view, Californians are due for a break. If my understanding of these results is confirmed by my full review and hearing, I am confident that I will be ordering a significant number of insurers to reduce their rates,” said, John Garamendi, California Insurance Commissioner.

"Homeowner insurance and personal auto insurance are essential tools for consumers, enabling them to drive legally, to own homes and to responsibly protect their assets. I have committed to see that homeowners' insurance and private passenger auto insurance are available and affordable in this state. When insurers seek a seemingly endless string of premium increases, yet fail to offer premium relief, even during periods of good fortune, the system clearly needs review. I aim to provide such review immediately,” he went on to add. More: Here

The Commissioner has scheduled a hearing for July 20, at which he will examine this issue. This could be the break for not just Californians but also other states where homeowners insurance rates should be re-assessed and premiums be scrutinized and checked for profitability. Don't you agree?

Homeowners insurance rates on the rise

Florida state regulators recently approved two increases and a surcharge for Citizens Property Insurance Corp. The first increase raises rates up to 23 percent for coastal single-family homeowners in Broward and Palm Beach counties. Sun-sentinel.com reports:

The second increase, effective in September, raises rates statewide by an average 25.9 percent for single-family homeowners living in Citizens' high-risk areas, which in South Florida is mainly east of Interstate 95.

Read more: MAJOR INCREASES IN HOMEOWNERS INSURANCE

New Florida insurance law is unfair to homeowners

Florida is in the news big time and it is not only for the intensity of the hurricanes. Governor Jeb Bush recently signed a property insurance bill into law which is supposed to shore up the state's ailing insurance industry. Only problem is people aren’t too convinced of its effectiveness and believe that it could actually harm homeowners!

And recent events have only helped strengthen this belief. The new law lets insurers raise rates with less state regulation – a provision which insurers have been quick to cash in on. Even before the governor signed the new law into place, State Farm announced plans to hike its rates statewide by almost 60 percent, and Allstate revealed plans to lop off 174,000 policyholders. Another reason for homeowners’ displeasure is the need for them to help bail out Citizens Property Insurance Corp. – which is supposed to be the state-run insurer of last resort. The new law pays only part of Citizens' deficit, shifting about $1 billion in red ink to be paid off by Florida homeowners during the next 10 years. Msnbc.msn.com reports:

Most Republicans, meanwhile, staunchly defend the bill. "Only competition will drive down costs," says Republican Rep. Dennis Ross of Lakeland, chairman of the House Insurance Committee. He adds that insurance rates are going to go up, regardless of any insurance reform. "It's not fair to consumers, but we have to be honest with ourselves -- the risk is there," says Ross.

Read more: GOP backlash seen from insurance law

Flood’s coming! Are you ready?

A recent report by the Federal Emergency Management Agency (FEMA) states that flooding causes more than $2 billion in property damage in the United States each year. And despite this, only 14 percent Americans are supposed to have purchased flood insurance. Now as the hurricane seasons draws closer, isn’t it time you took a serious look at your homeowners insurance policy and checked if you need any additional coverage?

For some reason, people tend to believe that flooding occurs in only certain areas and that other areas are safe. Hence their logic follows that they don’t need flood insurance if they live in one of the so-called safe areas. However, according to FEMA, nearly every home is at some risk from flooding. Coastal areas are obviously flood-prone and people living on the coast, near a lake or riverside, realize the need for flood insurance. However, the threat of water damage is not so readily apparent to other homeowners. Almost 40 percent of Americans believe only owners of houses near bodies of water need to buy flood insurance.

Last year’s record-breaking hurricane season had a flip side to it. The widespread destruction made many people associate flooding with rooftop rescues and widespread destruction. The reality for the many Americans who experience flooding is much less dramatic, but what most people don’t realize is that it's still potentially very costly and disruptive to their lives.

Damage can be caused by numerous flood exposures, including surface water run-off from a paved surface into the home; overflow or backup from a sewer or drain outside the home; or flood water entering the home through basement windows. Basements are the most vulnerable area in many houses, and homeowners are increasingly turning them into entertainment centers and game rooms, filling them with expensive electronics and furniture.

‘Homeowners Insurance Rates Unfair’

As homeowners insurance premiums rise along the coast of the country, some people are now beginning to feel the heat and are beginning to complain. Massachusetts, state Attorney General Tom Reilly believes these rates are not justified. Consumeraffairs.com reports:

Reilly argues that the insurance industry is using an unexplained model for determining future hurricanes, overcharging for expenses, and inflating its numbers to justify a proposed 12.9 percent statewide rate hike, including a 25 percent increase in the cost of homeowner insurance on Cape Cod.

Read more: Homeowners Insurance Rates Unfair, Massachusetts Charges

Wind vs Water - Judge rules for wind

No flood insurance? You will not get any damages from your homeowners insurance if your house gets flooded as a result of a hurricane. You may get some damages for wind damage to your home and that’s that! If the waters are high and remain in your home as a result of the hurricane storm surge your home may get soaked and crumble but no damages are coming your way.

Just as we talk of the insurance companies and their homeowners policies tailor made to escape on certain legalities it has happened again. In Lafayette, La a judge has ruled that the insurance company need not pay damages caused by floods caused by Hurricane Rita if you have only coverage for windstorms in your policy. Yet again a homeowner realizes that his homeowners insurance policy does nothing much for him after a hurricane.

"You get what you pay for, and what they paid for was wind damage," said U.S. District Judge Richard Haik in a ruling Thursday. But, he also said: "I wish I didn't think that. I am not a fan of insurance companies."

For thousands of homeowners without flood insurance, the critical question is whether damage was caused by Katrina's 145-mph winds or by the wall of water that surged to shore. Wind damage is covered, but insurers say their policies do not cover damage from water, including wind-driven water. Policyholders argue that storm surge should not be considered flooding.

The lawsuit was filed against State Farm and Louisiana Citizens Property Insurance on behalf of two families and sought class-action status. The insurance companies said the policies explicitly excluded flood damage.

Meanwhile, the Federal Emergency Management Agency has agreed to continue paying the utility bills of thousands of Houston hurricane evacuees for an additional month, through June 30, and this will be to total of 35,000 people in the area.

A few questions on homeowners insurance...

Homeowners in Mississippi are now dealing with their insurer of last resort deciding to up the insurance rate to 398 percent. It is also sounding the alarm that hurricane season is near and you need to get storm insured. The Mississippi Windstorm Underwriting Association has requested for this increase to the insurance regulator of the state and this would mean coastal residents who are part of what is known, as the wind pool would see average bills rise from about $800 to $3,200 annually.

Grim thoughts this especially when the forecast is for an active hurricane season with 17 named storms - 9 of which will become hurricanes and 5 Category 3 or greater! “It is time to make sure you have the proper insurance”, according to the Insurance Information Institute and just the thought of another hurricane hitting densely populated areas can make anyone quiver.

Looking at homeowners insurance, in general, the big disclaimer if you can call it that “Does not cover Flood insurance” – makes you wonder - what insurance cover does a homeowners insurance provide really (looking at the hurricane forecasts)for people living near the Mississippi river or in coastal Florida?

Katrina ravaged homeowners have now realized that their homeowners insurance does not cover the damage caused by flooding which was a result of the direct effects of the storm surge of the hurricane. No claims can be made for flooding and only that part of the damage caused by wind damage or other perils that came in the wake of the hurricane is covered.

The thrust of homeowners insurance seems to have been in plugging the loopholes that became evident after each eventuality. For example: You can't buy homeowners insurance after a hurricane watch or warning has been issued. Where is the justice in this and why are homeowners still sticking to “high risk” areas? So now that the insurers of last resorts are increasing their rates and hurricanes are almost here, it really makes you wonder again – is location worth the risk?

Florida crumbling

Even before the hurricane season’s officially begun, Florida’s begun to feel its effects. Or rather, homeowners in Florida are beginning to feel the heat as they get dropped or slammed with huge price increases again this year. Forecasts indicate that this year too, there will be devastating hurricanes and the resultant damages will be high. So insurers are doing what they can do to avoid too many losses.

Of course, you cannot blame the insurance companies entirely. Many of them lost a lot of money in the previous hurricane seasons and they are still counting their losses. And they too need to purchase coverage to protect themselves from the massive amounts of claims due to these storms. Allheadlinenews.com reports:

On Friday, State Farm insurance company, the largest insurer in Florida, stated they want a 109 percent increase for the premiums on their homeowners’ policies for the majority of Palm Beach County area residents they insure. State Farm also wants to drop almost all of the statewide windstorm policies they currently hold.

Read more: FL Homeowners' Insurance: Either Huge Increases or Dropped

Storm insured your home yet?

If you live along the coastline, one of the first things you ought to do is storm insure your home. 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.

New law fails to help Florida insurance woes

Gov. Jeb Bush recently brought into effect a new law that is supposed to make homeowners insurance more available and affordable. However, none of the provisions of the new law are bold enough to have an immediate effect as another hurricane season bears down on Florida, premiums continue to soar and insurers such as State Farm and Allstate continue to dump policyholders. Sptimes.com reports:

Stuck between the obvious need to prop up the state-run insurer of last resort, Citizens Property Insurance Corp., and homeowners protesting escalating assessments and premiums, legislators desperately sought a middle ground. The result is a compromise that is too timid to attract significant new insurance business, dramatically affect rates or fix Citizens quickly enough.

Read more: A timid insurance fix

Have you learned from Katrina?

I may have said it before and I’ll say it again. BUY flood insurance. Hurricane season’s just a month away and for those who didn’t already know – floods occur in all 50 states. So there’s no way you can think ‘that’s not gonna happen to me’. It can and if you’re unlucky, it may.

So isn’t it better to spend some money and get insured. And it has become imperative for you take flood insurance NOW because flood insurance has a 30-day waiting period before it comes into effect. So if the Atlantic hurricane season begins June 1, and you haven’t taken a flood insurance policy yet, you are already late. Washingtonpost.com reports:

"Forecasters say this hurricane season could be as destructive as 2005, the worst on record," said Jesse Muñoz, acting director of the Transitional Recovery Office for the Mississippi Hurricane Katrina efforts, in a FEMA release.

Read more: Let's Prove We Learned From Katrina And Buy Flood Insurance

Florida Homeowners Insurance - An update

Royal Palm Insurance Co will now provide homeowners insurance to all Allstate Floridian customers who will be renewing their policies this year. As the agreement is reaching its closing conditions Royal Palm will start renewing the Allstate Floridian policies by November 2006. That’s some reassurance for the 120,000 Allstate Floridian policyholders as they look into the approaching hurricane season.

Phil Lawson, president of Allstate Floridian, said, “This is the nation's most challenging property insurance market, and helping to bring a new company to the state will improve insurance availability in many communities. In the wake of two devastating hurricane seasons, Allstate Floridian is taking steps to help better protect its customers in the future from the threat of Katrina like storms."

He is right in describing that this is the most challenging property insurance market, the hurricanes make it the most volatile too and the least we can get is insurance for our homes right? Now will other insurance providers follow suit is the next big question? I feel the more providers we have better the insurance situation will be for South East Coast. What do you think?

Floridians have been finding trouble getting their insurance renewed as homeowners insurance providers have both refused writing new ones and denied renewals. Premiums went up to dizzy heights after eight hurricanes wreaked havoc all around.

Now Gov. Jeb Bush has finally passed a bill that will put $715 million in tax money into Citizens to blunt the impact of the shortfall. He acknowledged that it won't stop rates from going up in the short-run, but said there's ``really no other option.'' Yes there really was no option as homeowners in the state were looking at 20 percent surcharges on their bills to bail out state-backed Citizen Property Insurance Corp., the insurer of last resort.

Under the measure, homeowners will see an assessment of 1 to 2 percent this year, or $10 to $20 per $1,000 in premium. Then they'll pay roughly another 1 percent a year for the next 10 years to make up the rest of the 2005 deficit. More: Here

Know your hurricanes

As we near June the East coast braces up for hurricanes and the period called hurricane season begins from June 1 to November 30. The peak season is from mid-August to late October most of us probably know all this especially after the devastating ones we had last year. Let’s look at some interesting facts about hurricanes - doesn’t the name itself scream "hurry-on"…

The terms cyclone and typhoon are interchangeably used for hurricanes depending upon the area it strikes. Hurricanes can cause damage by storm surge those floods low-lying areas or by winds that go up to speeds of 120 km/hour and from fresh water flooding.

Torrential rains often lead to landslides, and lead to rivers and lakes flooding causing huge amounts of damage. Hurricanes are classified into five categories based on their wind speed, central pressure, and potential damage it can unleash.

Category I can have sustained wind 74-95 miles/hour and can bring about storm surges that can lead to minimal damage to mobile unanchored homes.

Category II is called a moderate hurricane with winds of 96-119 miles/hour can cause damage to mobile homes, roofs and small crafts and you can expects floods of up to 6-8 feet.

Category III is a major hurricane which can cause extensive damage to small buildings with winds of up to 111-130 miles/hour.

Category IV is called an extreme hurricane that can destroy mobile homes, flood beach homes with roofs being destroyed and wind speeds of 131-155 miles/hour.

Category V is a hurricane of catastrophic proportion that can destroy most buildings; flood homes, cut off all roads and destroy all vegetation.

Prepare your home for a hurricane well in advance and don’t forget to keep your radio and TV switched on. Ensure a supply of water for sanitary purposes such as cleaning and flushing toilets and fill up bathtubs and other large containers with water.

Is Location Worth the Risk?

One morning last week as I prepared to hop into the shower I was surprised to find that ants outside had somehow managed to forge a trail across the shower.

But because I was in a rush to get the kids out and to school there wasn't much option but to turn the water on and to watch the little guys swirl down the drain...

I planned to call pest control later that day, but somehow never got around to it, and for the next few days I faced the same problem every morning... rinsing another couple dozen ants down the drain.  But all this got me thinking about... surprisingly... Homeowners Insurance.

So, back to the ants - when the tiles get wet, these ants start rushing around to find a dry spot, and essentially start struggling for survival. Initially I would try to rescue them, but that takes too much time, and hey - everyone's in a rush in the morning! Many of these ants usually survive - they end up very wet, but safe; and stagger away to wherever they live.

The question that comes to my mind is this - since this drama repeats itself every morning, don't these creatures understand that they are living in a very high-risk area? Is proximity to water so important to their lifestyle that they are willing to risk their lives for it?

After hearing so much about the devastation of hurricanes, tsunamis and typhoons this year, I started wondering...if humans were any more rational?

Which brings us to the question - are some high-risk locations (prone to floods, earthquakes, storms) so attractive to people, that they are willing to risk their lives for it? Certain coastal areas are known to be high-risk. Yet, these are prime locations where the affluent build their houses.

Why do people refuse to acknowledge that they are risking a lot when they live in these locations? Is this denial a result of the "It can never happen to me..." mentality? We believe that bad things happen to 'other people'- whoever they are.

And so insurance companies choose to (after recent experiences where they had to pay a lot of money to those who had suffered damages to their homes) either refuse to cover homes in certain areas, or charge far higher premiums. Can we blame them?

I'm not sure what the resolution to all of this is, but it just seems to me that coastal living is, in the modern era, engaging in very risky behavior. I don't know if that means we should make it illegal for homeowners to build there, but it hardly seems right for governments to force insurers to insure homes there...

Any thoughts?

Understanding different homeowners policies

Do you have a home business or are you running a small enterprise in your garage? These are pertinent questions to ask your self before getting an insurance policy for your home. You could need additional liability cover for your home business. Can you really cope with a house fire that will both lose you your house and business?

Are you living in an earthquake zone or near a high flood risk area? Again you have to find out about your neighboring area and check if it is a high-risk zone. You will need extra flood insurance your standard homeowners policy will not cover damage caused by floods.

More often than not, understanding homeowners insurance is key to a good policy with a low premium that really gives coverage to all your particular needs. It can be confusing and sorting out through a lot of information you should be able to get the optimum policy for you. There are several sites that will help you make a comparative study of all the types of homeowners’ insurance quotes under one umbrella.

Basic Home owner Insurance covers damage from fire, theft and vandalism – a limited number of perils make this form of homeowners policy the least common one.

Broad homeowner Insurance is an improvement on the Basic kind and more perils like snow, ice and falling objects are added and therefore is a little more expensive than the Basic policy.

Standard Home owner Insurance is the most common type of homeowner's policy; it covers damage resulting from most natural disasters excluding floods and earthquakes.

Fair Play Policy is what you will get if you live in a high crime or run down area. This is because you may not qualify for the other kinds of policies.

Condominium owners are usually given coverage for the area owned by you. Here the distinction is kept because condo owners have a lot of shared areas like the lobby, grounds etc to be treated separately. The shared grounds and other areas in a condo are covered by a separate insurance taken by the condo owners association.

Is your homeowners insurance is adequate?

The Texas Department of Insurance has issued a warning to all Gulf Coast dwellers to check their homeowners insurance. So how do you ensure that your home or business is adequately protected? Here are a few tips and pointers to help you know if your insurance policy is alright.

• Review: The first thing you need to do is review your coverage and policy limits. Ensure that your coverage or insurance is active and that it provides adequate coverage to pay for the full replacement of any lost or damaged property.
• Understand: You are not supposed to be a know-it-all. There are possibly terms in your insurance policy that you don’t understand. Don’t hesitate to ask your agent or insurance company. It is imperative that you understand what your policy covers and does not cover.
• Renew: In case you have made any additions or improvements to your home since you last took your policy, you must try to increase your policy limits to cover the enhanced value of the property. Even if you haven’t made any adjustments or improvements, you must realize that property values increase over time and you must ensure that your insurance policy is adjusted accordingly.
• Flood: Find out if you need flood insurance. Your homeowners policy does not include coverage for damage from flooding. So if you want to protect yourself from losses due to flooding, you must take a separate flood insurance policy. You can get that from the National Flood Insurance Program (NFIP), which is administered by the Federal Emergency Management Agency. For more information, call NFIP at 1-888-FLOOD 29 (356-6329).
• Windstorm: If you live in one of Texas’ 14 coastal counties, or parts of Harris County, you may require insurance for windstorm or hail damage from the Texas Windstorm Insurance Association.

Live along the Gulf Coast? Review your insurance coverage

Hurricane season is almost upon us and if you live along the Gulf Coast, it is imperative that you have your insurance in order. Officials at the Texas Department of Insurance are reminding all Gulf Coast home and business owners to periodically review their insurance policies and ensure that their coverage is adequate and up-to-date. Insurancejournal.com reports:

Hurricane season runs from June 1 through November, with peak activity usually occurring in August and September. Weather forecasters have predicted a very active hurricane season this year.

Read more: Texas Regulators Urge Coastal Residents to Review Insurance Coverages

Mobile homes and insurance

Mobile homes are probably a great proposition for people living near rivers and lakes and seas don't you think? Imagine this - the TV blares a hurricane warning and you just rev up you mobile home engine and be off to safer locales before disaster strikes. The mobile homeowner’s innate talent to co-exist and live so footloose has amazed me often. And who can deny the charm of just drifting off from one place to another whenever the fancy catches you...

Now, let’s get into the more serious aspects of owning a mobile home - the mobile home insurance, of course. Mobile homes or manufactured homes can also get homeowners insurance coverage whenever a disaster strikes.

Homeowners policy providers give coverage to the attached patio and deck other buildings such as garages and storage sheds and even cover additional living expenses you may incur, such as hotel and restaurant bills, if you are forced to move out of your mobile home because of a covered loss.

Personal Property Protection for your personal property against loss from the following perils: fire, lightning, smoke, vandalism, falling objects, collapse and any other perils listed in your policy.

Theft Coverage for loss due to theft both on and off premises, stolen credit cards, stolen or forged checks.

Also liability coverage is provided for your family against non-auto liability claims brought by others for accidental bodily injury or damage to their property. You can also avail coverage for Guest Medical Protection, if someone is injured while on your property with your permission.

It pays for the reasonable increase in your living expenses necessary for maintaining your normal standard of living for up to the amount of time specified in the policy if you are unable to occupy your mobile home due to a covered loss.

Some policies even cover for emergency removal service for up to $500 for reasonable expenses you incur to remove your mobile home if it is endangered by a loss that is covered.

Tips for a lesser premium

If you have high premiums to pay for your homeowners insurance there are a few things that can be done to reduce the amount. These tips are more applicable to homeowners who really don’t live in a high-risk zone. These tips are often forgotten and you could save a good number of dollars by making sure you incorporate at least a couple of them.

Do you know that by stopping smoking your premium can come down? And no, this is not a life or health insurance post but if you quit the habit you bring down your chances o a house fire, which equals less premiums. More reason to do yourself a huge favour health and money-wise!

Raise the deductible and this too leads to lesser premiums. Deductibles are the amount of money the homeowner pays toward a loss before the insurance company starts to pay according to the terms of the policy. By increasing the deductible to $500, $1,000, $2,500, or $5,000, discounts may be obtained, depending on the insurance company.

Do you know that by buying home and auto insurance from same provider you may get a discount? So ask around and get both from the same provider.

Remember if you are buying a new home your premium will be lesser than that of an older home. Insurers may offer a discount if the house is new. Even the choice of materials used in constructing your home could dictate your premium so check with your provider. Proximity to fire station, firefighters and fire hydrants also affects premiums.

Insure the home and not the land and shop around go online compare prices and get the best premium for the coverage you need. Install smoke detectors, burglar and fire alarm systems, or dead-bolt locks to beef up security and avail discounts.

If you are retired chances are that you may get discounts on premiums as retirees generally are assumed to better maintain their home and to spot fires sooner than working people. Like I said a number of things to check with your provider before buying the policy, right?

Lowdown on liability coverage

Your homeowners insurance policy usually has a section that deal with liability coverage. This is of course in addition o the property coverage and this deal with the liabilities that can be incurred on your property. It is divided into two sections: Home Insurance Personal Liability and Home Insurance Medical Payments.

Home insurance personal liability coverage is sought against claims or lawsuits that were caused by an accident on your property that caused bodily injury or property damage to others as a direct result of your personal activities anywhere. This coverage also protects you and all family members who live with you from such liability.

Remember that homeowner insurance coverage does not provide protection for auto and business related incidents. Liability coverage pays for non-automobile-related injuries to other people, or damage to their property, for which you are legally responsible

The medical payment liabilty section of homeowner liability insurance cover deals with the coverage of medical expenses for persons accidentally injured on your property. This coverage is applicable to all persons injured on the property regardless of who is at fault.

But, medical expense payments do not apply to your injuries or those of family members living with you or to activities involving your home business. Liability coverage may be required if you own certain pets or a swimming pool but there are exceptions to the rule.

A typical homeowners policy does not cover injuries to animals, damage to motor vehicles, aircraft, and parts. Nor do they typically cover losses due to floods, mudslides, water damage from sewer backups, damage resulting from war or nuclear hazard, neglect, earthquakes, power failures, seepage, dry rot, or vermin.

As all policies have different coverage and exclusions make sure you check with your homeowners insurance provider and verify that all perils attributable to your property are covered. Example: If you live near a river or water body you will need flood insurance and this is not provided by your homeowners policy.

Flood insurance could make all the difference this year

Last year’s hurricane season has taught us some really bitter lessons and we better not forget these in a hurry. One of the chief lessons for both homeowners and renters: Consider getting flood insurance. Heraldnet.com reports:

Only about half of homeowners living in some of the most flood-prone areas of the United States buy federal flood insurance, leaving millions of families at risk for severe financial losses when floods strike, according to a study released this year by the Rand Corp., a nonprofit research organization.

Read more: Consider flood insurance necessary

Are you being left to fend for yourself?

You would think that the large insurance companies can weather a bad storm and would stand by their customers in times of need. But I guess our ideals are too lofty. Allstate insurance, one of the really big insurance companies, has opted to turn tail and run when faced with a dire situation. And in the process, it is dumping quite a few of its loyal customers.

There’s no gainsaying the fact that the past few years have been really bad. Hurricanes have ravaged the country with a fury and almost everyone’s afraid that this year there will definitely be a bigger and worse sequel to the disaster. But is this really reason for an insurance company to develop cold feet and dump its customers? In terms of numbers, it may not seem like much – just 4 percent of its customers in New York, but what Allstate is losing in the bargain is a much higher percentage of its goodwill.

Homeowners insurance bill cannot halt rising rates

In Florida, you just cannot escape the rising property insurance rates. Despite Florida lawmakers doing everything they could to better the condition of the debt-ridden state insurance fund, things seem to have gotten worse. They even offered incentives to revive the private insurance market and attempt to ease rising premium costs, but to no avail. So why haven’t the lawmakers been able to bring the situation under control?

The main reasons for the rise are the frequency of the hurricanes and the rising costs of construction. Add to this the over $2 billion in deficits in Citizens Property Insurance, the state-run insurer of last resort. This has only added to insurance costs across the state since all property policyholders are assessed to pay off the debt. Theledger.com reports:

In Miami Beach, Rep. Dan Gelber, a Democrat, now pays $9,242 for his Citizens coverage for what he says is a relatively modest home. He will pay an additional $4,242 representing a 45 percent premium rate that Citizens is now seeking. He also has to pay more than $2,300 in assessments to cover Citizen deficits that have occurred over the last two years -- the result of eight hurricanes hitting the state in that period.

Read more: Homeowners Insurance Bill Won't Prevent a Rise in Rates

Tips to prevent electrical fires

While it is a good idea to take a good homeowners insurance policy to provide for any losses, it is an even better idea to prevent losses. As the age-old adage goes: Prevention is always better than cure. But that doesn’t mean you shouldn’t take a homeowners insurance policy. What I’m trying to say is that there are certain situations, which are under our control, and if we take care, we can prevent dangerous situations from occurring. According to statistics, home electrical fires claim the lives of 200 Americans each year and injure 1,500 more. Let’s check out some simple steps that will help you prevent loss of life or property from electrical fires.

• You must regularly check your electrical appliances and wiring. Faulty electrical outlets and old wiring are the main causes of electrical fires. Problems with cords and plugs, such as extension and appliance cords, are cited as the primary cause of home electrical fires.
• You must keep a look out for frayed wires and replace all worn, old, or damaged appliance cords immediately. Never overload electrical extension cords.
• The next highest causes of electric fire are electric stoves. However, it has been found that careless cooking is the reason for these fires and not stove malfunction. Here you must firstly learn the right methods of using electric stoves. Secondly, pay special care to all electrical appliances in the bathroom and kitchen and keep them away from wet floors and counters.
• Don’t buy an electrical appliance that doesn’t meet the UL standard for safety. You don’t want to compromise on your life for a few dollars less.
• Children should not be allowed to play with or around electrical appliances like space heaters, irons and hair dryers. Heaters are quite dangerous and you should keep clothes, curtains and any other inflammable items away from the heaters. A three-feet distance is recommended.
• Finally, always ensure that your smoke detector is in good working condition.

Prevent electrical fires in your home

Each year nearly 200 Americans die and 1,500 are injured due to home electrical fires. While some fires are caused by electrical system failures and appliance defects, most of these fires are caused by the misuse and poor maintenance of electrical appliances, incorrectly installed wiring, and overloaded circuits and extension cords. Insweb.com reports:

Each year, home appliance and wiring problems account for 49,000 fires, hundreds of deaths, and $670 million in property losses. Home electrical wiring causes twice as many fires as electrical appliances.

Read more: On The Safety Circuit: How To Prevent Electrical Fires In The Home

Live in Kentucky? This one’s for you

Good news for Kentucky denizens or at least for those who participate in the Kentucky Mine Subsidence Insurance Fund. The Kentucky Office of Insurance in Frankfort, Ky recently announced a decrease in the rates charged to consumers who participate in the Fund. Consumers in 34 Kentucky counties can expect a decrease in their homeowners’ insurance premiums beginning this month. Insurancejournal.com reports:

Most homeowners will see a decrease of at least 25 percent for the coal mine subsidence endorsement with the average decrease estimated at 33 percent. For example, under previous rates, the premium for the endorsement was $27 for a dwelling valued at $100,000. With the new rates, that premium drops to $20.

Read more: : Ky. Mine Subsidence Insurance Fund Homeowners Premiums Lowered

Homeowner red alert

Here’s a very important notice to all you homeowners. In case you haven’t checked your homeowners insurance policy yet, please do so immediately. Or at least before the 2006 hurricane, storm or fire season begins. This appeal has been issued by the Homeowners Consumer Center (http://homeownersconsumercenter.com) after it came across some appalling facts. According to a recent survey of over 1000 US homeowners, nearly 90 percent don’t understand their policy or the areas of insurance coverage they need to have!

The Center has created a list of do's & dont's for homeowners. Let me give you a brief detail of the list. In case you need more information, you can check their website.

If you live in a state on or close to the Gulf of Mexico, the Atlantic Coast, Hawaii, a river, stream or an area that is affected by floods, you must get flood insurance cover. Ensure that you get the maximum insurance coverage, which is about $250,000. Also try to get the $100,000 supplemental flood coverage. This will help you cover any personal property loss due to flooding.

If you have expensive jewelry, art, antiques, collectibles, guns, etc call your insurance agent & get them listed on your homeowners policy. Don’t forget to document them separately.

Take pictures of every area of your home including the furniture. This will help ensure the legitimacy of your claim.

Keep receipts or proof of the new or upgraded appliances and furniture in your home.

Never keep important records like insurance policies, an inventory of your home contents, pictures of your home (exterior & interior), financial documents, and receipts in your home. A bank safety deposit box is always safer.

Finally, NEVER do business with an insurance company you have never heard of before.

Is the State takeover of Poe Group beneficial to homeowners?

Florida is probably gearing up for yet another hurricane season and as of today, claims for the last hurricanes are still being settled. And to compound problems, some insurers just cannot seem to cope with all the repayment and are facing financial instability. Poe Financial Group is a case in point. Once the third-largest homeowners insurer in Florida, today the Poe group is insolvent and one of the things that hastened its journey towards insolvency were the hurricane claims.

Luckily, for homeowners, all homeowners’ policies written by three Poe subsidiaries will be automatically switched to Citizens by July 1. But is this a good idea? Many experts would think not. Citizens was essentially created to provide a safety net for otherwise uninsurable homeowners. So, it usually costs more than private coverage. So incase Poe customers are unable to find any other private insurers before the deadline, their policies would automatically renew after July 1 at the generally higher Citizens' rates.

Is there a solution to Florida’s insurance woes?

The home insurance sector in Florida is spiraling out of control and needs to be reined in before it causes the state’s economy to collapse. I know this sounds a bit over the top but if experts are to be believed, the announcement that three Florida insurance companies face closure was just a start. Florida is one of the few states where you pay more for less coverage. According to recent data, policyholders in Florida pay much more than their counterparts elsewhere. And yet, they receive lesser coverage, higher deductibles and policy exclusions. Moreover, they are also liable for the enormous deficits of the state's three bailout funds: the Florida Hurricane Catastrophe Fund, Citizens Property Insurance and the Florida Insurance Guaranty Association.

So, is there a solution to this impending crisis? Some of the proposals that were put forth by the current Legislature attempt to shift a bigger portion of the burden to vacation homeowners and mansion-dwellers. But to be honest, this doesn’t help solve the problem that the common citizen of Florida faces. Tallahassee.com reports:

Years of accelerated development in Florida's most vulnerable areas make the state a very bad bet in a time of active storm seasons. This spring's computer models increase the predicted cost of hurricanes by about 50 percent, driving up reinsurance rates similarly.

Read more: Lawmakers may shift more cost to vacation owners

What you can do to hurricane-proof your home

Hurricane-season is here and you may still be able to do things to prevent damage but before we get into the list of things to be done let me get into the homeowners insurance bit first.

I know it’s easier said than done but get extra flood insurance if you are living near rivers, lakes or reservoirs and your regular homeowners insurance does not cover floods. Also get hurricane insurance if can still find insurers in your area and also do an insurance check on your home and find out how much your house is worth now and how much you will need to repair.

Insurance for your home is nowadays a big problem post Katrina. The whole home insurance sector is embroiled in a huge crisis, as insurers are not able to provide coverage with having to pay millions of dollars in claims. They are now not renewing policies and state-backed companies are reeling under huge debts. Seems like a dead end to homeowners who are expecting hurricanes in their localities.

So, what can you do to prevent damages to your home?

1. If you have a gabled roof try tying it down with additional braces and it should help prevent some damage but tile and aluminum roofs are preferable.

2. Doors can be protected with door bolt materials and garage doors can be reinforced with  horizontal bracing in each panel.

3. Most homeowners ignore their doors and windows while getting ready for a storm but there are things you can do. Nowadays you can protect your windows by installing a special hurricane fabric that's constructed to withstand winds of up to170 MPH. But, you can get adequate window protection for a lot less by adding storm shutters of wood or even plywood.

4. Lastly, if you have tall trees near the house structure remember to trim them as tall trees can fall on roofs and fences and just this oversight could give you a huge repair bill.

Poe collapse puts pressure on Florida homeowners

Poe Financial Group, once once the third-largest homeowners insurer in Florida, has collapsed under financial pressure. Homeowners and Citizens Property Insurance Corp., the state-owned "insurer of last resort" are now bearing the brunt of this collapse. Sun-herald.com reports:

Florida Chief Financial Officer Tom Gallagher has stated that he wants all homeowners policies written by three Poe subsidiaries to automatically switch to Citizens by July 1. Gallagher is endorsing a plan drafted by the Florida Office of Insurance Regulation that would convert Poe policies without any break in coverage or, indeed, any action by the policyholder.

Read more: State likely to take over insurer