Homeowners Insurance Lowdown

Tips To Lower Insurance On Your New Home

By Priya Jestin, Staff Writer

What do you look for when you’re buying a home? Yes, it should be within your budget, big, pretty, in a good neighborhood, blah, blah… There is one more thing that you need to check before you purchase your dream home – its homeowners insurance.

As insurance rates keep rising at a steady rate, homeowners are checking for more and more ways to reduce their rates. Here are a few things you could check for to reduce rates:

• Sometimes, insurers charge you less if you buy a house close to a fire hydrant or in a community that has a professional rather than a volunteer fire department.
• Are the home’s electrical, heating and plumbing systems less than 10 years old? If so, you may have to pay less.
• If you live in the East, try to purchase a brick home – they are more wind resistant. In an earthquake-prone zone, it is best to go in for a wooden frame house. Such houses can withstand such disasters better. Depending on the type of residence you choose, you could shave off your rates from 5 to 15 percent.
• The Comprehensive Loss Underwriting Exchange (CLUE) report of the home you plan to buy will give you a good idea about the history of the home. The CLUE report will let you know the insurance claim history of the property helping you judge the property better.

Tips To Lower Insurance On Your New Home

By Priya Jestin, Staff Writer

What do you look for when you’re buying a home? Yes, it should be within your budget, big, pretty, in a good neighborhood, blah, blah… There is one more thing that you need to check before you purchase your dream home – its homeowners insurance.

As insurance rates keep rising at a steady rate, homeowners are checking for more and more ways to reduce their rates. Here are a few things you could check for to reduce rates:

• Sometimes, insurers charge you less if you buy a house close to a fire hydrant or in a community that has a professional rather than a volunteer fire department.
• Are the home’s electrical, heating and plumbing systems less than 10 years old? If so, you may have to pay less.
• If you live in the East, try to purchase a brick home – they are more wind resistant. In an earthquake-prone zone, it is best to go in for a wooden frame house. Such houses can withstand such disasters better. Depending on the type of residence you choose, you could shave off your rates from 5 to 15 percent.
• The Comprehensive Loss Underwriting Exchange (CLUE) report of the home you plan to buy will give you a good idea about the history of the home. The CLUE report will let you know the insurance claim history of the property helping you judge the property better.

Does The Insurance Shoe Pinch? Time To Change

By Priya Jestin, Staff Writer

What do you do if your shoes pinch and don’t seem to wear well? Change them of course. If we are so careful about our shoes, why do we find it so difficult to change our policies every time we realize that they don’t fit our requirements? According to recent statistics, at least 32 million households in the United States own insurance policies that aren't right for them.

Can you believe that in 2006, nearly 60 percent of homes were undervalued in their policies by an average of 21 percent. This makes you wonder if it is lack of proper knowledge that is making people take the wrong policies. So how do you actually tell if your insurance policy doesn't fit correctly? The best thing to do is every time you take a life changing decision or there is an unexpected change, check your insurance.

Got married? Check your insurance. Divorced? Where are the insurance papers? Purchased something new? …. While getting married and having kids are the no-brainer life events that may prompt insurance changes, there are several other instances when you should review your policies:

Renovated your home? If you’ve added a new room or expanded your kitchen, do ensure that your insurance covers all these new changes. You do want your hard work reflected - and covered - in your homeowners insurance, don’t you?

Any new purchases: Acquired valuables like art or jewelry? Before you begin admiring your new acquisitions, check to see if you can get them covered in your homeowners policy. If the policy provides only limited coverage for such expensive items, you might want to supplement your policy with a floater that provides additional insurance for valuables. Don’t forget to get the items professionally appraised so you know what they are worth.

Renting property: Don’t forget to take renters insurance. Your landowner is responsible only for insuring the structure of the building, not the possessions in it. If you want to safeguard your stuff, get insurance.

New Homeowner? Know The Basics

Buying a home is an intimidating process for anybody so first-time homeowners will find it especially difficult. They may feel overwhelmed by the number of decisions they are faced with, including choosing the right insurance coverage to protect their property. Find out what you need to know to protect one of their most important assets. Insurance.com reports:

First-time homebuyers may not realize that homeowners insurance covers more than just the structure of a house. It also protects the homeowner and generally anyone named on the policy, including a spouse, resident, household employee, guest or visitor.

Read more: New Homeowner Insurance Basics

How Much Protection Do You REALLY Get?

-- By Priya Jestin, Staff Writer

Fine, you’ve insured your home and are confident that if a disaster strikes, you can rebuild your home… or can you? Do you know how your insurance company values your belongings if disaster were to strike? And more importantly, will the valuation be enough to cover your possessions.

There are two common ways to determine the value of damaged property: Actual Value and Replacement Value. State regulations determine whether your insurance company uses Actual or Replacement value to process claims. This means it all boils down to where you live, as your insurance carrier will comply with the regulations in the state where you live.

In case you have moved residence recently but retained your insurer, it is important to find out if the state you now stay in has Actual Value or Replacement Value in effect. Don’t make the mistake of assuming that what was in effect in one state is the same in another.

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.

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!

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?

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.

Off-Campus Students Require Renter’s Insurance

I’m going to talk to you about something that pertains not to the loans you take for college but to the costs you incur when in college and how you can reduce them. If you are in college and live off- campus, you should probably consider purchasing renters' insurance.

I know this may sound incongruent with your ideas of wanting to save money in college. When I talked to a few student friends of mine, their first reaction was that the landlord does have insurance so why should we shell out more money? Good argument. But remember, when you leave home, you are probably coming with quite a few of your personal items like your computer, stereos, and probably bicycles. All this will be worth a few thousand dollars. Do you think your landlord’s insurance will cover all this personal property of yours? What happens if there is a burglary and all your stuff gets stolen, or a fire rages through the apartment you stay in and ravages everything. What are you left with? Nothing.

If you take out a renters' insurance, it will protect personal property against damage or loss and will also protect you in the event that someone is injured on the premises. You should carefully consider the type of coverage you require. Personal property coverage applies only to repairs or replacements of damaged, destroyed or stolen personal belongings. Liability insurance provides coverage against a claim or lawsuit resulting from injury or property damage to others caused by an accident that took place on your property. Monthly premiums for renters' insurance average between $15 and $30, depending upon the home's location and size, as well as the value of the policyholder's possessions.

As I always say, before you purchase the insurance policy, confirm that you are dealing with a legitimate company by contacting the Insurance Department's toll-free number at 1-877-881-6388.

Inventory: The Why And How

I know I’ve been focusing quite a bit on floods and storms of late. In the recent past, they were quite a bit of a reality and so you really cannot ignore them. That said, we’ll move onto other things. It’s not only floods and storms that can wreck a home. Fires and other natural disasters can also be quite dangerous and we need to be equally prepared for these as well.

According to the Insurance Information Institute (III), one way to prepare for such a possibility is to maintain a home inventory. An inventory can help you recognize the amount of homeowners insurance you'll need. It also can help you settle insurance claims faster after a disaster strikes and verify your disaster losses on income taxes. Nwtimes.com reports:

Since taking the inventory initially can appear as an overwhelming task, the III suggests that you organize the work. You might begin the process one room at a time, one category at a time (e.g. electronics first, furniture second, etc.) or from the newest or most expensive items on down.

Read more: Inventories help with homeowners insurance

How Much Is Enough?

I’ve been harping on the need for home insurance for so long that I forgot a basic question: How much is enough? This is quite an important question today because most people can hardly afford to waste any money – a dollar saved is a dollar earned. In the case of home insurance, you must ensure that you take enough to protect your home and your personal possessions in the event of a loss. Some insurers will offer you a policy that has a limit equal to at least 80 percent of your home’s value. So in the event of damage to your home, you will have to pay damages equal to the deductible. In case you wish to insure at less than 80 percent, you can do so, only remember you will have to pay a co-insurance penalty. This means you will be responsible for more of the cost of the damages.

One thing you MUST remember is that whatever percentage you choose, it should not reflect the cost of the property on which you’ve built your home. There are some banks and lenders which will try to make you buy insurance for the entire amount of the mortgage – including the cost of land. If your bank tries to make you do this, feel free to call the Department of Financial Services Consumer Helpline on 1-800-342-2762 (toll-free).

I’ll explain it through an example: If you buy a piece of property for $100,000 and build a house worth $150,000, your total mortgage would come to 250,000. When you take homeowners insurance you will need it only for the $150,000 home. In the event of covered peril destroying your home, your insurance company would pay $150,000 for the home and not for the property. So you must buy enough insurance to protect you’re your home or in other words for enough money to replace your house.

Protect Your Antiques

Did you know that there was a specific policy designed for older homes with historic value? Most people don’t, and that’s where the problem lies. Most of us don’t know that we need home insurance and even if we do, we think that the general policy is enough to cover all our requirements. The insurance market today is a very sophisticated one and offers different types of coverage to suit almost all kinds of requirements. Getting back to the historic home, if you live in such a house, don’t go in for a regular kind of cover and find out if your insurer offers this policy.

Coverage includes protection from basic disasters like aircraft, wind/hail, explosion, riots/civil unrest, fire/lightning, vehicles, volcano eruptions, vandalism, theft, smoke, and self-damaging instances. Under this plan, coverage is limited to repairs or cash values of the items involved. The rebuilding/replacement cost is not covered in this, because some aspects of the home (historic significance) can make these costs higher than current market value.

Hurricane Preparation

We’ve had a close escape from the recent hurricanes, but that doesn’t mean the season’s over. Far from it. So are you prepared for the next one? No, I didn’t mean only your home insurance policy. Of course, you do need to ensure that it has been updated and that you have included all the essential items on the list… etc, but are you prepared for when a storm or hurricane actually strikes. If not, you will need to learn the drill soon.

One of the most important things you need to do is listen to local emergency officials, and follow their instructions. Listen to local TV and radio. It is very important to have a plan of action for any emergency. If you must relocate, have a predetermined destination, route and alternate route -- whether out of the area or to the nearest shelter. Pcoem.org reports:

Remain indoors during a hurricane. Stay in the lowest level of your home well away from any windows. An interior hallway, bathroom or closet may the safest location. Remember to cover members of your family with a mattress or to seek shelter under something very sturdy like a well-constructed dining room table that could protect them from possible debris.

Read more: Hurricane Preparation

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. This appeal has been issued by the Homeowners Consumer Center 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.

Know Your Homeowners Insurance Policy

Do you know what your homeowners insurance policy covers – especially when it comes to flooding? Experts suggest checking your insurance to make sure it's up to date. Ktre.com reports:

Also, have an evacuation plan so your family knows where to go if there's a hurricane. Take steps now to improve your property to protect it against a storm, and do a home inventory of all your possessions.

Read more: Make Sure You Know Your Homeowners Insurance Policy

Flooding Is A Reality! Are You Prepared?

There are some parts of the country where flood insurance is considered mandatory. Yet, only 50 percent of homeowners actually carry a policy. Now if there is another hurricane of the magnitude of Hurricanes Katrina or Wilma, who’s to blame for the tragedy? Definitely some of the blame must go to the homeowner.

You probably need time to understand why you need flood insurance, but you don’t need half that much time to buy it. Buying flood insurance is the easiest thing since pricing is standard. You can easily find a list of agents who sell the NFIP policies on the FEMA-run website. Msnbc.msn.com reports:

Anyone living in one of the 20,000 communities participating in the NFIP’s floodplains management program qualifies for coverage, regardless of their risk for flooding. Only those living in communities designated coastal barrier resource system areas are excluded.

Read more: Before the deluge: Why to buy flood insurance

Captured your home yet?

No I haven’t made a mistake up there. All I was trying to do is ask you if you have photographed your home with all the essentials in it. It is important to keep a record of all that you have in your home so that in the case of an eventuality, you have a proper record of all the things in your home. This makes it easier for you to claim your home insurance.

One of the first things you need to do is check your homeowners insurance policy. And don’t think I’m trying to spoon feed you guys. Actually quite a few people do take out a policy but have no idea about what it covers. 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!

How to be prepared for the worst

The hurricanes that ravaged New Orleans last year may have become history today, but the lessons learnt then cannot be forgotten. Of course, you have your homeowners insurance and all that but you still need to have something more set aside for an emergency. Emergencies are something you cannot predict and but you can always be prepared to some extent. You need at least three months of savings in case of emergencies. Eurweb.com reports:

In addition, if you do have a property loss because of a natural disaster, you may be eligible for a tax deduction. As a general rule, your deduction is determined by an equation that compares your basis (i.e., how much you paid for the property), with the decrease in fair market value as a result of the casualty. You then take whichever

Read more: FOR THE LOVE OF MONEY: Stormy Weather

Don't Fiddle Around Before A Storm

If you own a home, especially along the coast, my sympathies are with you. The last few years have been bad in general and particularly so for homeowners who’ve been trying to get insurance. Companies are either dumping homeowners or refusing to write new policies as they continue to smart in the aftermath of the hurricanes that lashed the country last year.

So, while a storm heading toward Florida must make homeowners sit up and wonder if they can beef up their coverage, fact is there is not much they can do. However, you cannot blame insurers for all the problems homeowners face. Even when there is prior knowledge of storms, homeowners prefer to wait. Many homeowners don't even think about insurance coverage until just before the damage is a certainty, or even worse, after a storm has passed. Fact is that once a storm is close enough to create warnings, insurance companies quit writing new business, and they many not even update existing policies. Wesh.com reports:

"There's a 30-day waiting period," said insurance agent Mike Meza. And don't bother scrambling right now to buy flood insurance, even if you don't live in a flood zone, he said. "It's not going to help you now," Meza said. "It's going to help you 30 days down the road."

Read more: Don't Wait For Storm To Think About Homeowners' Insurance

Are New England residents ready for a hurricane?

Weather forecasters believe that this year's hurricane season may not be as drastic as last year's, but does that mean some states can remain unprepared? Research shows that of all the eastern states with Atlantic ocean shoreline exposure, the New England states are the least prepared to deal with a hurricane. Newbritainherald.com reports:

New England residents have taken only about one-third of the necessary steps to protect themselves and their homes. Those steps include not only a review and, if necessary update, of homeowners insurance, but signing up for federal flood insurance coverage, creating a disaster kit and evacuation plan and preparing houses for a hurricane.

Read more: New England least prepared for hurricane

Have you captured your home yet?

No I haven’t made a mistake up there. All I was trying to do is ask you if you have photographed your home with all the essentials in it. It is important to keep a record of all that you have in your home so that in the case of an eventuality, you have a proper record of all the things in your home. This makes it easier for you to claim your home insurance. One of the first things you need to do is check your homeowners insurance policy. And don’t think I’m trying to spoon feed you guys. Actually quite a few people do take out a policy but have no idea about what it covers. 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!

• If you live in an area that is affected by floods, you must get flood insurance cover. Try to get the maximum insurance coverage, which is about $250,000.
• 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.

Wildfire - insurance, information and tips

The Arizona wildfire recently displaced a lot of people and panic spread among homeowners living in  wildfire zones everywhere. News reports  said that the late-afternoon wildfire on the western edge of Flagstaff forced mass evacuations of two private campgrounds and hundreds of homes. The Woody Fire, apparently sparked by humans, started about 4 p.m. near Route 66 and Interstate 40, about two miles from downtown Flagstaff.

It is when an incident like a wildfire occurs that homeowners think about their insurance for their homes and yes this is a good time to review your homeowners policy. Insurance experts will tell you that the single most important factor when it comes to insuring your home is to make sure your homeowners policy insures the replacement cost of the home and not actual cash value.

Replacement costs will cover the rebuilding or repairing cost of the home and your possessions without a deduction for depreciation and this is often overlooked. Check if your policy is on the replacement cost of your home and if not talk to your insurance agent or find a new insurance provider. Did you know that most homeowners don’t realize that their home is worth much more than the cost price of the home? It is realized when it is too late like after a wildfire devours your home.

Ensure that a 30 foot radius of vegetation free area is around the house. If there is a wildfire, this is where the firefighters will be while trying to save your home from a fire. Vegetation near the house can also be a fire hazard in wildfire zones and the general rule is: If wildfire risk is low to moderate a minimum of 30 feet of space must be established around your home and if your wildfire risk is high or extreme, surrounding space should be 100 feet and the use of more fire resistive building materials should be considered. Have you checked this yet?

Haven’t storm insured your home? Do it now!

For some people, storms are a way of life. One moment they have a roof over their heads and the next instant, their home is blown away in a tornado. If you live along the coastline, you’ve probably experienced or know someone who’s gone through such a tragedy. 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.

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.

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.

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

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.

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

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 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.

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

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

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?

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.

Having Trouble Insuring Your Home?

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

· Remove Potential Risks

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

· Maintain Your House

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

· Watch Out for Crime

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

Hurricanes and Windstorm Insurance

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

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

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

Home Inventory

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

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

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

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

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

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

Homeowner Insurance: Are You Underinsured?

With the beginning of the year 2006 we all must have surely made some new plans for future along with the New Year resolutions. But before you plan out other things for this year, take out some time to think and plan for those unexpected things such as a fire, theft, and so on which can throw your life out of gear. No doubt it’s a gloomy thought but it’s very important to keep yourself prepared in advance for any kind of unseen mishappening.

According to a recent survey carried out by Trusted Choice, a group of insurance agencies and financial firms showed that millions of Americans are underinsured in several critical areas. It also showed that many of them are paying for coverage they don't need.

There can be several such areas where you might be uninsured. According to Madelyn Flannagan, a spokeswoman for Trusted Choice many homeowners have taken advantage of low-interest home equity lines of credit to remodel their homes since 2003 but still around 40 percent of them haven’t still updated their homeowner's insurance after making improvements in their homes. Infact many of them aren’t sure if they have the policy or not. This can be really disastrous if your home gets destroyed due to any reason. If your policy is based on the value of your home before you remodeled, you may not recoup the money you spent to add a bathroom or update your kitchen, she said.

Also, many of the Americans don’t have adequate coverage of their valuable items. Almost half of the Americans owning expensive jewelry, fine art, wine or other valuables disclosed during the survey that they didn't have insurance to cover them. Most standard homeowner policies won't cover the cost of replacing such items, Flannagan said. You may need a "rider" or separate policy to insure those items, she said. In addition about a third of families with a new baby said they hadn't updated their life insurance.

So, its time for you to take an effort to review your policies once again to ensure that you are not underinsured!

Homeowner Insurance in Florida: A Must

Homeowner Insurance in Florida is very essential. Florida is a place with warm climate and sandy beaches but it is very prone to tropical storms. Every year the place has to face severe storms which if turn into hurricanes can be disastrous. That's why it's important to consider home insurance if you live in Florida.

In Florida, storms do a lot of damage to homes. If you live in Florida and your home suffers from water damage, then all the repairs will be covered under home insurance. The same applies in case of flooding since Florida is a prone to hurricanes. You will be doing yourself and loved ones a favor when you decide to invest in home insurance for Florida.The homeowner insurance policy in Florida not only covers damage done by water as mentioned above but also protection against theft and many such things. Though you may not be home, you can rest knowing that your home insurance in Florida is protecting you from danger.