Homeowners Insurance Lowdown

300 Percent And Still Rising!

I'm shocked someone out there hasn't died of shock yet. I nearly did. What am I talking about? Rising homeowners insurance rates of course. Yes, we've been talking about it for some time now, but that doesn't take away from the horror of seeing rates rise by almost 300 percent. Gulfbreezenews.com reports:

"Usually they have some sticker shock at first, but most understand that the recent storm activity is to blame and are open to looking for ways to lower the premium," said Robert Koonce of State Farm Insurance. Some homeowners received increases in the neighborhood of 300-400 percent, according to Koonce, and insurance companies are urging homeowners to make physical improvements to bring their property up to 2001 Florida Building Code minimum requirements to lower premiums.

Read more: Some homeowners' insurance up 300 percent

Tide Of Insurance Swallowing Homeowners

-- By Priya Jestin, Staff Writer

I’ve always dreamt of owning a home near a lake, river or the sea. Actually, all I want is to wake up to the soothing sound of water and birds. As I discovered to my dismay recently, my home along the water may only remain a dream. And it’s not only the price of this prime property that is the problem. An even bigger problem is unaffordable homeowners' insurance.

Many people who live in such beautiful areas are learning this fact the difficult way. Insurance companies are taking dramatic measures to protect their industry. And who has to bear the brunt of this protection? Us consumers of course! So you can have your home along the water, as long as you have enough moolah stashed away to satisfy all the whims and fancies of insurers.

In Connecticut, Andover Insurance has informed about 2,000 customers that they must install storm shutters to keep their homeowner policies. The rule applies to properties three-quarters of a mile or closer to Long Island Sound or a major river. Similar mass non-renewal notices have gone out to homeowners in Provincetown, Mass. and elsewhere.

I know all these measures are for our protection, and they do help us. But at what cost? And are the insurance agencies right in denying cover just because we cannot afford a few of their recommendations? I don't think so. What about you?

Don’t Let Your Home Go Up In Flames

Taken a homeowners insurance policy? Well, I guess you can now rest content that in case of any eventuality, your back is covered. But does this policy make you feel safe? No! For the policy will not ensure that you live in a safe home. To make your home safe, you should take care to prevent dangerous situations from occurring. Accidents due to electrical fires are the most common in most homes. According to statistics, home electrical fires claim the lives of 200 Americans each year and injure 1,500 more. A few simple steps will help you prevent such a terrible loss.

Faulty electrical outlets and old wiring are the main causes of electrical fires. Always check your electrical appliances and wiring. Problems with cords and plugs are cited as the primary cause of home electrical fires. Look out for frayed wires and replace all worn, old, or damaged appliance cords immediately. Never overload electrical extension cords.

Next on your checklist are electric stoves. Learn the right methods of using electric stoves before you begin using them. 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. Don’t ever allow your children to play with or around electrical appliances like space heaters, irons and hair dryers. Finally, always ensure that your smoke detector is in good working condition.

Claiming Flood Insurance

--By Priya Jestin, Staff Writer

I think I’ve written so much about the need to take flood insurance, there are surely some of you out there who have followed my advice. Now for the next step. If your house has suffered damage, how do you go about filing a claim?

Firstly, if you can, try to photograph your home, both inside and outside, showing any damage or flooding. Then, call your insurance agent to report your claim. Your agent will prepare a ‘notice of loss’ form after which, an adjuster will be assigned to assist you.

Next, separate the damaged from the undamaged property. Try to put things in order as much as you can so the insurance adjuster can examine them. Finally, if any of your property has been damaged and could hamper clean up operations, or pose a health hazard, you must dispose it. But don’t forget to make a list of discarded items so you can present it to the adjuster.

When can the insurer not renew your policy?

The hurricanes of the last two seasons has seen homeowners insurance providers not renewing insurance policies in many states. This of course was more in Florida and New Orleans but while things came to crisis here elsewhere things are looking bad too.

So, when can an insurance company not renew your homeowners policy?

A) Insurance companies may choose not to renew your policy if you have filed more claims than the average person. The average homeowner files a claim once every nine years. Read: Process of making a claim

B) Insurance companies may cancel your policy if your property has deteriorated to a point that it no longer meets the company's underwriting standards and

C) Hurricane losses incurred by many insurance companies have caused them not to renew policies in coastal areas.

Other reasons for non-renewal include…

1. Non-payment of premium;

2. If the insurer feels that you could be planning on committing fraud i.e. Material misrepresentation/Fraud.

3. If you are convicted for acts that increase the hazard insured against e.g. conviction for illegal storage of fireworks;

4. Discovery of willful or reckless acts or omissions by the insured increasing the hazard insured against. For example:  Not getting a gas leak fixed;

5. Physical changes in the property insured which resulted in the property becoming uninsurable. For example, should the home become vacant for more that 60 consecutive days, there is automatically assumed to be a greater exposure to vandalism and damage; and

6. A determination by the Commissioner of Insurance that continuation of the policy would place the insurance company in violation of the law.

Your company must notify you of their decision not to renew your policy, at least 45 days prior to its expiration date. But your insurance company does not have to send you a notice by certified mail. They are only required to use first-class mail to the address listed on your policy.

Protests Against Rate Hikes Gather Steam

Residents from at least three counties met in front of the West Pasco Government Center recently to let off steam about rising homeowners insurance. The nonprofit group Homeowners Against Citizens organized the rally, its first since forming this year after a similar protest in Tallahassee. Tbo.com reports:

Although the group's primary beef is with Citizens Property Insurance, the state's insurer of last resort, its members and those at Saturday's rally are directing their ire at the state insurance industry as a whole. "This is a wake-up call," said Nicole Deg, a New Port Richey resident who helped form the group, which claims a membership of about 800. "We want to show unity; we're all different, young and old. But we're all here to tell our government we're not going to take this anymore."

Read more: Hundreds Protest Insurance Industry, 'Crazy' Rate Hikes

It's Insurance Evaluation Time Again

It’s that time of the year again: open enrollment time. This means you will be among millions of workers who will be evaluating their health-, home-, life- and disability-insurance options. Choosing the right coverage can be a trying experience and you need to check every aspect before you zero in on the policy that's best suited to your needs. Columbusdispatch.com reports:

Have a home office? Did you know all that expensive equipment might not be adequately covered under your homeowners policy? That was news to me. If you have a home-based business, get a business-in home rider, Lankford advises. This will increase your coverage for business property and liability. It will cost you about $150 a year if you have a basic consultant’s office with a computer system and you don’t have clients visiting your home.

Read more: It’s a good time of year to learn more about insurance costs, options

You’re Not Claiming Enough!

Got a nagging feeling that you are not getting enough out of your hefty homeowners insurance? You may not be wrong after all. Some homeowners could be saving a chunk of change every month on their home insurance if they only paid more attention to their reluctance to file claims. These findings were from a new study from MIT's Sloan School of Management. Many of us have this feeling that we don’t need to file a claim in some cases.

For instance, imagine a situation where your window was broken by a baseball and it cost you $700 to repair it. Now, if your deductible is $500 and you’d get only $200 if you filed, would you file that claim? Some of you may, but most would not want to be bothered with that hassle. And then there is the problem of too many filings affecting your claims history. Marketwatch.com reports:

"Your rates, whether it is auto or homeowners insurance, are influenced by your claims history as well as other things," said Bruce Maynard, senior assistant vice president at Amica Mutual Insurance Co., in Lincoln, R.I. "Now, not every claim influences your rates," he said. When it comes to setting premiums, "there are multiple factors that go into it," he said. "If you have concerns, talk to your carrier. You're a customer -- you have a right to understand how your product is priced."

Read more: Homeowners' claims history shows they often overpay on insurance: study

Your Insurance Cover May Not Be Enough

It’s pretty painful to find out that your insurance doesn’t cover many things after your house has suffered a disaster. Standing among the ruins of your house, you’ll be even more devastated to know that the homeowners insurance you paid for regularly, cannot be of much use to you. 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 all right.

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. 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.

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. 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).

Checked Your Policy Recently?

Insurance is not something you would like to think about in your free time – unless of course you work in the business. As for the rest, most people generally tend to think about them only when forced to, like the time when they come up for renewal. Just as when you first buy a policy on your home, life or car, you need to make sure you have the right amount of coverage at the best price. So what should you look for when updating your policies?

As a homeowner, you should take an inventory of your belongings once a year and adjust your contents coverage accordingly. Look closely for any changes that the insurance company has made in your coverage -- you may not notice a subtle difference until after disaster strikes. Remodeling, renovation and major purchases like appliances should be factored into your policy so that they will be covered should something go wrong. And your new electrical system or roof may also qualify you for a discount.

New Insurance Rules For Florida

Gov. Jeb Bush and the Florida Cabinet recently approved two insurance rules, one that could double the discounts homeowners get on their insurance premiums for making their residences more hurricane-safe. The other one finalizes state-funded property insurance for businesses. Palmbeachpost.com reports:

Under the new rule, insurers will now be required to give homeowners a break on their insurance premiums that will double what most now provide. In the past, the Office of Insurance Regulation offered a range of premium discounts when owners upgrade their homes by securing roofs to walls or buying hurricane shutters, for example. A separate rule now forces insurers to specify the discount for each type of home improvement.

Read more: Bush, Cabinet approve new insurance rules

In Florida, Your Home Is Hostage To High Insurance Rates

Want a home in Florida? Be very sure you know how much you'll have to pay as homeowners insurance or you may end up like this guy. This buyer was set to close on the $299,000 home when he learned his insurance would cost him $4,700 a year. The big premium pushed his monthly payment past the lender's comfort level, and approval for the loan was yanked. Palmbeachpost.com reports:

The scotched sale is a scenario that's becoming all too common amid Florida's housing hangover, say real estate brokers and affordable-housing experts. Even as some sellers have lowered their asking prices, skyrocketing insurance premiums and property taxes have killed deals and sent buyers to the sidelines.

Read more: Nobody's market: Homeowners insurance, taxes vex would-be buyers