Homeowners Insurance Lowdown

Catch The Falling Rates

--By Priya Jestin, Staff Writer

After a year of badgering the general public for higher rates, the insurance industry seems to be finally cooling off. And the best thing about this – prices are falling, especially insurance rates.

While homeowners insurance rates may still have a long way to go before you can officially declare a fall, you may still see some change. Just remember to look hard enough. A welcome change but I’m curious: Why the fall? Well, the most obvious reason is that this year, the skies didn’t fall.

Simply put, the fall in prices is climatic. You have to literally thank the skies. In comparison to last year’s roar, this year’s hurricane season was just a meow. This means insurance companies did not have to dig deep into their coffers to pay for rebuilding parts of the country. Also, post-Katrina, insurance companies were charging unbelievably high premiums and are on a financial high right now. Most insurance companies are reporting high third-quarter net incomes as compared to last year.

So, have you taken advantage of these changes? Now’s the perfect time to ask your current insurance provider to reconsider your rates. All you need to do is gather quotes from various companies and call up your provider. According to estimates, you stand to gain a reduction of at least $ 100 per year.

Compare Insurance Rates Online

One thing constant about homeowners insurance rates is that they fluctuate. And pretty wildly at that. I’m sure there’s no one out there who’ll think of this as a joke. People have suffered too much to find the fluctuating rates funny. The worst part is when your insurance is due for renewal and you see that your insurance firm has upped its rates. That sets you running across town trying to find a better bargain somewhere.

Well some people may not have to do this running about much longer now. Consumers in Delaware have something to cheer about. A recently launched website will allow them to compare homeowners insurance rates from a wide variety of companies. This new facility, which will be up by spring 2007, will allow users to contact companies they are interested in after they view rate comparisons. At present, the site only offers auto insurance facilities. The site is called comparedelawareinsurance.

Floridians: Finally Awake

--By Priya Jestin, Staff Writer

You cannot suffer in silence forever can you? Well, I always wondered how these Floridians managed to accept the frequent hikes in their homeowners’ insurance rates. Sure, there were murmurs of discontent, and a little noise here and there. But now, I guess things have finally come to a head.

Recently, around 100 residents and real estate agents took to the streets of Merritt Island. The sharply rising residential and commercial property insurance bills forced them to demonstrate for state insurance reforms. Our group of demonstrators then met state Rep. Bob Allen, R-Merritt Island, who, to put it briefly, wasn’t too positive about the immediate future. According to him, meaningful financial relief for consumers may well be an uphill battle.

And the government too seems to be intent on proving this prediction true. The Florida Property and Casualty Insurance Reform Committee -- created by Gov. Jeb Bush -- is being seen as too little, too late. Quite a few people have criticized the plan for not going far enough. The Bush committee has not recommended anything that would directly reduce premiums without decreasing coverage or requiring policyholders to spend money to fortify their homes against storms.

And some of our demonstrators are also calling for an investigation of the insurance industry. If you ask me, this was something I’d have proposed long ago. There does seem to be an unholy nexus somewhere – we just gotta find out where and what it is. Probably we should take the demonstrators’ suggestion and hold our politicians accountable for this problem. We must especially target those who may have accepted money from the industry.

Checklist Check

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.

Tips To Lower Your Rates

Did you know that the price you pay for your homeowners insurance could vary by hundreds of dollars? Different insurance companies charge differently and that is where the price difference arises. But there are some things you can do to lower your costs. So, before you go out to get yourself a homeowner’s insurance policy, it is best to consider certain things that will help you lower your costs.

• Shop Around: This could take some time, but I’ll guarantee you’ll save a couple of hundred dollars if you shop around for your insurance instead of going in for the first one that comes your way. Ask your friends, check the Yellow Pages or contact your state insurance department. The National Association of Insurance Commissioners (www.naic.org) has information that can help you choose an insurer in your state, including complaints.
• Disaster resistant: One of the simplest things you can do to reduce your insurance cost is to make your home disaster resistant. Find out from your insurance agent or company representative what steps you can take to make your home more resistant to windstorms and other natural disasters. The simple act of adding storm shutters can actually help you save on your premiums!
• Reinforce: Reinforcing your roof or buying stronger roofing materials, also give the same benefits. Older homes can be retrofitted to make them better able to withstand earthquakes. In addition, consider modernizing your heating, plumbing and electrical systems to reduce the risk of fire and water damage.

Home Insurance Rates Is A Hot Topic In Florida’s Gov Race

Rising homeowners insurance is a dominant theme in the race for governor in Florida. Both Democrat Jim Davis and Republican Charlie Crist are to assure voters that they will do a better job at lowering rates. Palmbeachpost.com reports:

Under Davis' proposal, Florida's Hurricane Catastrophe Fund, which sells below-market reinsurance to insurance companies, would be transformed into the Hurricane Premium Protection Fund, which would collect the bulk of premiums from policyholders statewide and be responsible for the bulk of each claim, between 70 percent and 90 percent.

Read more: Davis, Crist tout their plans to lower home insurance rates

Homeowners Ask For Identity Theft Homeowners Insurance

--By Priya Jestin, Staff Writer

I always associated identity theft with credit cards and accounts etc. I really didn’t think that our very homes could be under attack. And the worst part is that these attackers aren’t much bothered about our material possessions. They want our identity! And homeowners are now so concerned about identity theft that some are asking for help from their insurance companies.

A recent survey by J.D. Power and Associates, more than 40 percent of the homeowners surveyed want their homeowners' insurance carrier to offer coverage for identity theft. In the survey, over 25 percent of homeowners said their homes and possessions were underinsured.

The survey also revealed the level of ignorance among the people. Nearly 25 percent had no idea what kind of homeowner's policy they have. Nearly half the surveyed people said it's up to the agent who sold them the policy or the insurance company itself to determine the replacement cost for the home and its contents!