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Time to Prepare for Spring Storms

Brad C — Tue, 17 Feb 2009 04:25:05 +0000

Last spring Georgia residents were pummeled by a devastating tornado, so significant that the President declared it a federal disaster area. While federal relief helps, it is even better if homeowners have the proper insurance in place to restore their lives to normal. So for home owners living in similar geographic locations, follow the lead of those residents purchasing the right Georgia Home Insurance.

Standard Home Insurance Policies

Most home insurance policies cover things like wind damage to roofs, broken windows, and storm damage to internal walls and personal property. There are two important things to know about your policy in this situation.

The first is whether your insurance includes replacement coverage or actual cash value coverage. Replacement coverage will pay the full cost of replacing or repairing the lost items, which actual cash value will deduct depreciation first. Though replacement coverage costs a little bit more, in times of an emergency, it means you don’t have to come up with the difference between the items cost and its current value.

The second area to watch is the policy limits. The home insurance company will only pay up to the limit of the policy, so if the policy is too small, there won’t be enough money to cover the repairs. Most companies insist that the policy value is at least 80% of the property value, but if homes in your neighborhood are appreciating, it is important to review the policy each year to make sure it is big enough to cover a major catastrophe.

Though you can use an appraisal to determine the value of your property, remember that you don’t have to insure the value of the land. Since it won’t be damaged during a storm, there’s no need to buy insurance coverage you don’t need and can’t ever collect on.

Thursday – Preparing for Spring Storms Part II – What Endorsements to Add to a Home Insurance Policy

Technorati Tags: Georgia Home Insurance,storm damage,homeowners insurance,insurance coverage

Ho Ho Holiday Party? Careful, Homeowners, You Could Be Liable

Brad C — Tue, 23 Dec 2008 07:40:47 +0000

Hosting a Christmas Party at your house? Make sure your guests are able to drive before they leave, or you could be liable for their accidents. Worse still, you may be unprotected in such an instance, based on a recent Supreme Court case which ruled that a West Virginia Home insurance company was not liable for damages stemming from a fatal alcohol-related accident.

The West Virginia case involved a lawsuit against Jeff Corra, who knowingly provided alcohol to under-aged guests who later were involved in a fatal accident. American Modern Home Insurance Company sued, saying it was not liable to defend Corra or cover damages. The West Virginia Supreme Court ruled that the accident was not a covered occurrence because the damages were caused by the homeowner’s conduct in knowingly permitting underage drinking. Underage or not, permitting drunk guests to drive away from your home puts you at risk.

A recent survey by the Independent Insurance Agents & Brokers of America revealed that most homeowners didn’t know that they could be liable for everything from a drunk driving incident to food poisoning involving their guests. In most cases, consumers have some coverage through the personal liability portion of their home insurance policies, but usually the limit on this is quite low.

How To Protect Yourself

There are two things you can do to protect yourself. The first is to regularly review the liability coverage limits of your current home insurance policy. Since many policies have maximum limits of $1000 for medical bills, consider raising the coverage limit to something a little more realistic.

The second choice is to purchase an umbrella policy, which would provide protection in a wide variety of situations. Most consumers purchase a $1 million policy, which seems to be a popular amount people pursue for damages.

Technorati Tags: Christmas party,West Virginia home insurance,drunk driving,umbrella policy

Washington Residents Failing to Purchase Flood Insurance

Brad C — Tue, 16 Dec 2008 16:24:34 +0000

Most people assume that every home insurance policy includes coverage for flood repairs. The truth is flood insurance is only available through a federal program. Now some Washington state officials are concerned because so many residents have failed to purchase this protection as part of their Washington home insurance coverage.

Last winter’s storm were particularly harsh, causing a tremendous amount of damage. Nevertheless, under 40,000 homeowners or businesses in the most devastated counties have purchased a flood insurance policy.

Adding Flood Insurance to a Washington Home Insurance Policy

Washington Insurance Commission Mike Kridler is especially concerned. “There is a 30-day waiting period until coverage starts,” he noted, “so waiting until storms hit could leave property unprotected.”

Standard home insurance policies cover things like fire, theft, wind and hail damage, and even aircraft falling from the sky, but not flooding or damage caused by sewer backups. Even All Perils coverage, which covers just about everything, doesn’t pay to repair flood damage.

Just because a home is located in a low-risk area doesn’t mean owners don’t need to purchase this coverage. December’s storms caused the greatest damage in areas traditionally considered almost immune from flooding. Last winter also proved a reminder that flooding is a year round danger, not just a spring-thaw occurrence.

Flood insurance premiums are based on the likely risk of flooding in an area, and usually are quite reasonable. Though the risk may seem remote, after last year’s disaster it seems like spending a few dollars on flood insurance is a much better deal for Washington homeowners than having to pay everything if their home is destroyed by a flood.

Technorati Tags: Washington,home insurance,flood insurance,spring thaw

The True Meaning of Additional Living Expenses

Brad C — Fri, 05 Dec 2008 00:44:45 +0000

Recent fires have forced hundreds of California residents from their homes, and suddenly the Additional Living Expenses portion of home insurance policies has become very important. Since every homeowner faces the possibility of being forced to live away from home due to fire or other damage, it is a good idea to know just what “Additional Living Expenses” means.

What is Covered by Additional Living Expense?
When a policy says it includes only “Additional Living Expense,” that covers those additional costs incurred by the homeowner to maintain the “normal” standard of living if the home is uninhabitable. It covers things like staying at a hotel, boarding pets, and eating at restaurants. This does not cover mortgage payments, does not pay normal food bills, etc.

The key word is “normal.” The purpose of insurance is to keep life the same, not improve it, so homeowners will get just enough to maintain status quo while living away from home.

One important exception to eligibility for Additional Living Expense coverage is whether the home actually sustained damage. If a homeowner was forced to evacuate because of danger in the area, but nothing actually happens to the home, Additional Living Expense coverage does not apply. That means the home owner must pay all expenses from his own pocket, unless “Loss of Use” coverage was also purchased.

Technorati Tags: Additional living expenses,home insurance,California,loss of use,fire

The True Meaning of Loss of Use

Brad C — Thu, 04 Dec 2008 00:18:05 +0000

During the recent fires in California, many homeowners were forced to leave their property because of mandatory evacuation orders. Once past the shock of the event, reality starts to hit. Until they can move back into their homes, the immediate question is “Where am I going to live?” followed instantly by “How will I pay for it?” The answer is Loss of Use insurance, part of their home insurance policy.

Most standard home insurance policies include Additional Living Expenses coverage, which provides money if the home is damaged and can’t be occupied until it’s repaired. But if the home wasn’t damaged, this coverage never kicks in.

What Triggers Loss Of Use Coverage

Loss of Use pays for additional living expenses under specific conditions. In the case of forced evacuation, the official reason is “Civil Authority Prohibiting Use.”

While almost every policy includes Additional Living Expenses coverage, Loss of Use is not standard. When checking out a new policy, see if Loss of Use is included, and if it is, make sure to get the details on the amount of coverage offered. For some plans, it may be limited by time, such as a two week period, while other plans will go by a specific dollar amount.

People living in an area that is prone to natural disasters like wildfires, mudslides or flooding should read the declaration page (top page) of the home insurance policy to confirm what’s covered and when. A crisis is not the right time to discover you’re not protected.

Technorati Tags: Loss of Use,home insurance,mandatory evacuation,crisis,wildfire,California

Some Wisconsin Homeowners Might Not Get Flooding Buyouts

Brad C — Mon, 01 Dec 2008 22:05:40 +0000

Almost 250 homeowners have applied for a buyout of their homes following last summer’s flooding, but federal funding of $25-$35 million may not be enough to cover all the requests. Traditional Wisconsin home insurance policies do not cover flooding, so homeowners without a policy from the National Flood Insurance Program have no coverage in flood situations.

Flood Insurance Program Favors Primary Residences

In this case the funds come from FEMA and will be distributed by state officials. Some communities still haven’t applied for buyouts. Officials expect to learn the amount of FEMA funds by mid-December.

Roxanne Gray, spokesperson for the Wisconsin Emergency Management Department, said that in events such as this the state normally receives three times more applications then the money available. “What is unusual in this event is the number of buyout applications we’ve received and the significant amount of money, but that is a reflection of how significant this flooding event was.” So far applications total $36 million.

Fortunately state officials will give buyout priority to homeowners whose primary residence suffered more than 50% flood damage, especially over applications involving vacation homes. An informal survey conducted online by WISC-TV shows overwhelming support for this plan.

Technorati Tags: Wisconsin,home insurance,rates,premiums,flood

New Law Ensures Lower Pennsylvania Home Insurance Rates

Brad C — Mon, 01 Dec 2008 01:54:44 +0000

Imagine having to pay for something you could never, ever use. That’s what was happening to Pennsylvania homeowners, who were being forced to purchase home insurance that included the value of the land. But now, thanks to the Mortgage Property Insurance Coverage Act, buyers of Pennsylvania home insurance will no longer have to buy this useless coverage

How the New Home Insurance Law Works

For example, if a home was worth $150,000, sitting on a $50,000 piece of land, the homeowner had to buy a $200,000 policy. Since the land wouldn’t be lost during a fire or tornado, there’s no reason to pay that extra premium. Most mortgage companies required homeowners to purchase a $200,000 policy anyway, but the new law now limits the requirement to the value of the structures on the land, like the house, garage, tool shed, etc.

The group behind the law was actually Insurance Agents & Brokers, a trade association of insurance people, who were frustrated that consumers had to pay for insurance they would never use. In a competitive business like insurance, having the best rates can make the difference between closing a sale or not, so having their hands tied by the mortgage lender’s requirements was a real problem.

This new law is a good lesson for every homeowner, whether you live in Pennsylvania or not. Check each home insurance policy thoroughly to make sure that the coverage is based on the value of the structures on the land, not the full property value. Since land can represent 25% of the property’s value or more, this can become a huge source of savings.

Technorati Tags: Pennsylvania,home insurance,rates,premiums,insurance agents

Outdoor Fun Comes at a Price in Nevada

Brad C — Fri, 21 Nov 2008 23:40:01 +0000

With Nevada’s hot climate, swimming pools are extremely popular in the state. What a great way to cool off. Many families have swing sets and trampolines as well, to keep the kids occupied. Having all this outdoor equipment is great fun, but it does pose an added risk that someone can get hurt, which means that homeowners need to make sure that their Nevada home insurance policies provide full coverage against the extra risk.

The best way to make sure nothing happens is to put safety first.

Swimming pools:

Surround the pool with some type of barrier, like a fence or a wall.
Place a cover over the pool when not in use.
Install a loud door alarm that will signal when someone goes into the backyard, so children don’t accidentally go outside.
Remove the ladder or steps to an above ground pool when not in use
Never let anyone swim alone.
Make sure all adults know CPR and keep a list of emergency numbers poolside.

Trampolines:

Use a safety net to prevent injuries from falls
Pad the springs, hooks and frames with a soft material so no one can land on metal or sharp edges
Pick a safe, flat location for the trampoline, away from trees, power lines and concrete.
Allow only one person to jump at a time to avoid collisions.
Make sure that an adult always supervises the activity. While older children may know what not to do, they are also more likely to take new risks, like flips or other stunts.

Lowering Home Insurance Premiums

Although insurance companies will charge higher premiums for having pools or trampolines, many will also offer suggestions on ways to make that equipment more secure, which in turn reduces the rates. Let the insurance agent know the measures already taken to reduce risk, and make sure to ask for suggestions on other things which can make a difference.

Finally, make sure that the medical liability portion of your home insurance policy has sufficient coverage for adequate treatment or even hospitalization. This poses the greatest risk to homeowners since most policies offer only $1000 coverage in this area.

By taking these measures now, you’ll be ready to enjoy your back yard in the spring. So plan ahead, make any necessary changes, and whether you live in Nevada or another warm state, the days will be warm again before you know it.

Technorati Tags: Nevada,home insurance,swimming pools,trampolines

Use Award Winning Oklahoma Home Insurance Website to Find Best Deals

Brad C — Tue, 18 Nov 2008 00:07:55 +0000

Oklahoma home insurance and auto insurance buyers are among the special few who can count on their state for information. The Oklahoma state insurance website was recently rated excellent by the Consumer Information of America, one of only six sites to earn that accolade.

The reasons the site was rated so highly included offering information on things like Complaints and Claims Assistance, and Public Enforcement of state insurance laws.

Once Oklahoma consumers have identified potential home insurance providers, the site offers a complaint index to see which companies have the lowest complaint ratios. Companies with a good service record generally means that customers don’t have to fight to get claims paid.

Oklahoma also received high marks for posting consumer alerts for any changes in policy or issues that residents buying home insurance coverage.

Benefits When Buying Oklahoma Home Insurance

Having such a top performing state resource will help consumers through the process of buying Oklahoma Home insurance. To ensure that you find the right policy at the best rates, just follow these simple steps.

Learn the basics of Oklahoma Home Insurance, such as the types of policies available and what is normally covered.
Ask at least three companies for a free quote.
Compare each quote thoroughly including the rates, coverage limits, and deductibles.
Check each company’s information and complaint ratio as well as the data on their local agents through the Oklahoma State Insurance Website.
Notify the best choice company that you would like to purchase a policy.
Finally, do not cancel the existing policy until the new policy has been issued.

Whether home is Oklahoma or another state, following this process guarantees that consumers will find the best home insurance coverage available.

Technorati Tags: Oklahoma,home insurance,rates,quotes

Tennessee Homeowners Need to Prepare

Brad C — Thu, 13 Nov 2008 20:34:44 +0000

Winter storms are coming soon, and based on what happened last year, home owners in Tennessee need to get ready. This includes not only preparing their homes, but making sure all Tennessee Home Insurance policies are ready for the challenge as well.

The first weekend in 2008 included a storm that resulted in 19 counties being declared federal disaster areas. Will that happen again in 2009?

In addition to winter storms, Tennessee residents routinely experience tornadoes, hurricanes, wildfires, floods, and even earthquakes, so it is critical to have a home insurance policy that fully repairs the damage. Actual Cash Value policies reduce the payout based on depreciation which means that policy holders can have to come up with literally thousands of dollars if something really big happens.

Replacement Cost coverage is a little more expensive, but could be worth it in the long run. Extra riders, like broken pipe damage, tree removal, and inflation guard which ensures that the value of the policy increases based on the home’s appreciation and replacement cost. Earthquakes aren’t covered either, so buy a special earthquake rider. Flood insurance is only available through the National Flood Insurance Program.

There are plenty of ways to prepare a house to withstand storm damage, and making a few modifications can reduce insurance premiums for Tennessee home owners, such as:

Strengthening the roof’s attachment to the home
Adding storm resistant shutters, doors, and garage doors
Securing the water heater to the floor

By closely reviewing your home insurance policy and making the house disaster-resistant, there’s a great chance that even if there is a storm, future days will still be sunny.

Technorati Tags: Tennessee home insurance,storm damage,actual cash value,replacement cost