Posted on Fri, Jan 27, 2012
Five Tips To Prevent You From Ending Up Dangerously Underinsured
January 4, 2012
FOR IMMEDIATE RELEASE
NEW YORK, January 4, 2011 — Reducing expenses is a popular New Year’s resolution for many people. While there are smart ways to save on homeowners and auto insurance, making the wrong choices can result in being dangerously underinsured, according to the
Insurance Information Institute (I.I.I.).
“There are simple steps you can take to cut the cost of your home and
auto insurance while continuing to be financially protected against a catastrophe,” said Jeanne M. Salvatore, senior vice president and consumer spokesperson for the I.I.I.
Following are five insurance mistakes that consumers should avoid, along with practical suggestions for better ways to save:
1. Insuring a home for its real estate value instead of for the cost of rebuilding. With the real estate market in a slump and home prices down in many parts of the country, some homeowners may think they can reduce the amount of insurance on their home, too. But insurance is designed to cover the cost of rebuilding, not the sales price of your home. Make sure you have enough coverage to completely rebuild your home and replace all your belongings in the event of a disaster.
A better way to save: Raise your deductible. An increase from $500 to $1,000 could save up to 25 percent on your annual premium.
2. Selecting an insurance company by price alone. Do not just choose a company with competitive prices. It is a good idea to also make sure the company is financially sound and provides good customer service.
A better way to save: Check the financial health of a company with independent rating agencies and ask friends and family for recommendations. You should select an insurance company that has a reputation for excellent customer service and will respond to your needs and handle claims fairly and efficiently. .
3.
Dropping flood insurance. Damage from flooding is not covered under standard homeowners and renters insurance policies. Coverage is available from the
National Flood Insurance Program (NFIP) as well as from some private insurance companies. Many homeowners are unaware they are at risk for flooding, but in fact 25 percent of all flood losses occur in low risk areas.
A better way to save: Before purchasing a home check with the NFIP to see whether it is located in a flood zone. If so, consider buying a home in a less risky area. If you already own a home in a flood zone area, look at home
mitigation efforts that can reduce your risk of flood damage and consider purchasing flood insurance.
4. Purchasing only the legally required amount of liability for your vehicle. In today’s litigious society, buying only the minimum amount of liability means you are likely to pay more out-of-pocket if you are sued—and those costs may be steep. The insurance industry and consumer groups generally recommend a minimum of $100,000 of bodily injury protection per person and $300,000 per accident.
A better way to save: Consider dropping collision and/or comprehensive coverage on older vehicles worth less than $1,000.
5.
Neglecting to buy renters insurance. A
renters insurance policy covers your possessions and additional living expenses if you have to move out of your home due to a disaster. Equally important, it provides liability protection in the event someone is injured in your home and decides to sue.
A better way to save: Look into multi-policy discounts. Buying several policies with the same insurer, such as renters, auto and life, will generally provide savings.
Posted on Mon, Oct 10, 2011
International Risk Management Institute
In most years, fire is the largest single cause of property loss in the United States. According to the National Fire Protection Association, there are approximately 400,000 home fires in the United States each year. Residential fires kill several thousand Americans each year and average $5 billion to $6 billion in property damage annually. There are numerous steps you can take, however, to reduce your exposure to this deadly peril, including the following.
· Smoke alarms should be installed in various parts of your home, including bedrooms, living rooms, and kitchens. Homes with smoke alarms typically have a fire-related death rate that is 40 percent to 50 percent less than the rate in homes without alarms.
· Fire extinguishers should be kept in the garage, kitchen, and on each floor of the house. The potency of these extinguishers should be checked on a semiannual basis.
· If you are about to build a new home, consider the installation of a sprinkler system. These systems have proven to be very effective in suppressing most fires before the fire department arrives. In addition, they normally add only about 1 percent to the cost of a new home and last for the life of the home.
· Never leave burning candles unattended. Fires often start when children, adults, and pets inadvertently overturn candles.
· Properly maintain your clothes dryer, which is a big cause of fires in the United States. The dryer vent should be kept clean, the lint screen should be removed and cleaned after each use, and a qualified technician should periodically inspect gas clothes dryers.
Get more personal lines insurance and risk management tips and ideas from IRMI.
Copyright 2011
International Risk Management Institute, Inc.
Posted on Tue, Aug 02, 2011
Insurance Information Institute
Tornadoes, fires, hurricanes—these and other disasters can wreak havoc on people’s lives, properties and possessions. Learning the claims filing process before an insured loss strikes can make your economic recovery faster and easier, according to the Insurance Information Institute (I.I.I.).
“The claims filing process can be overwhelming, particularly if you have sustained a large loss,” said Michael Barry, vice president, Media Relations, I.I.I. “To begin the rebuilding process as quickly as possible, you need to get your claim going and that means contacting your insurance agent or company representative right away,” he added. “Your insurance company may send you a proof of loss form to complete, or an adjuster may first visit your home. In either case, the more information you have about your damaged property and possessions, the faster your claim generally can be settled.”
When a disaster does happen, the I.I.I. offers the following claims filing tips:
- Be prepared to give your agent or insurance company representative a description of the damage. Your agent will report the loss to your insurance company or to a qualified adjuster who will contact you about making an appointment to inspect the damage. If you have to evacuate, make sure to give your agent or insurer a telephone number where you can be reached.
- Take photos of the damaged areas. These will assist the adjuster in the investigation and help with the claims process.
- If you do not already have one, prepare a detailed inventory of all damaged or destroyed personal property. Be sure to make two copies, one for yourself and one for the adjuster. Your list should be as complete as possible, including a description of the items, dates of purchase or approximate age, cost at the time of purchase and estimated replacement cost, if you are able to provide that figure.
- Collect canceled checks, invoices, receipts or other papers that will assist the adjuster in obtaining the value of the damaged or destroyed property.
- Make whatever temporary repairs are needed to protect your home from further damage and from causing injury to you and others. Do not make extensive permanent repairs until after the claims adjuster has been to your home and assessed the damage.
- Save receipts for any supplies or materials purchased, and make copies of bills for your records. Your insurance company will reimburse any reasonable expenses incurred in making temporary repairs. Secure a detailed estimate for permanent repairs to your home from a reliable contractor and give it to the adjuster. The estimate should contain the proposed repairs, costs and replacement prices.
- The contractor’s bid should include details of the materials to be used and prices on a line-by-line basis.
- Be sure to keep copies of the lists and other documents you submit to your insurance company. Also keep copies of whatever paperwork your insurance company gives you.
If you believe the settlement offer made by your insurance company is not a fair one, contact the insurer. Be prepared to provide information to back up your claim.
Your settlement probably will not be the same as your neighbor’s. Your insurance policy may be different and the amount of damage to your home may be different even though you live on the same street. Your insurance policy will pay for the property you had before the disaster. But your homeowners insurance policy will not pay for expensive improvements like a tile roof, for instance, if you had a standard fiberglass roof before the insured loss occurred.
Serious losses are given priority. All losses are adjusted and claims paid as quickly as possible but hardship cases are usually handled first. If your home is destroyed or seriously damaged, your agent will do everything possible to assure you are given priority.
FOR MORE INFORMATION ABOUT INSURANCE: www.iii.org
Posted on Fri, Jul 29, 2011
HOUSTON (KTRK) -- Tropical Storm Don is edging closer to the Texas coastline, but the system is not expected to become a hurricane before making landfall either late tonight or early tomorrow.
The National Hurricane Center in Miami says Don's maximum sustained winds early this morning are near 50 mph with only slight strengthening expected before it reaches the coast of Texas late tonight or early tomorrow.
It's expected to make landfall south of Corpus Christi. ABC13 Meteorologist Casey Curry says the effect on the Houston area will be minimal. Our forecast will be the same as it's been the last few days -- hot and humid with scattered downpours.
However, tropical storm warnings have been issued for Jackson and Matagorda counties from 10am Friday until 9am Saturday. The warning runs the coastline from Matagorda to the mouth of the Rio Grande. A tropical storm watch continues for all of Matagorda and Brazoria counties.
By Sunday afternoon Don would be a tropical depression over the Big Bend, National Hurricane Center forecasters say.
The watch for Brazoria County has been dropped.
Don is centered about 255 miles southeast of Corpus Christi, Texas, and is moving west-northwest near 14 mph.
Reporter Samica Knight is in Corpus Christi, where the city is on alert, but not 'high' alert. They say they biggest threat is flooding rain. They're still making preps and advising residents to do the same.
Texas A&M Corpus Christi and the junior college on the island have been evacuated and shut down until Monday.
Clearing the Gulf
Federal regulators say 11 offshore petroleum production platforms have been shuttered in the Gulf of Mexico with the approach of Tropical Storm Don.
The Bureau of Ocean Energy Management, Regulation and Enforcement said Thursday that about 6.8 percent of normal Gulf oil production had been cut off, along with 2.8 percent of normal natural gas production following personnel evacuations.
That's just under 95,000 barrels of oil per day and 148 million cubic feet of gas per day.
http://abclocal.go.com/ktrk/story?section=news/local&id=8274139
Posted on Fri, Jul 22, 2011
Renters insurance provides financial protection against the loss or destruction of your possessions when you rent a house or apartment. While your landlord may be sympathetic to a burglary you have experienced or a fire caused by your iron, destruction or loss of your possessions is not usually covered by your landlord’s insurance. Because in most cases, renters insurance covers only the value of your belongings, not the physical building, the premium is relatively inexpensive.
By purchasing renters insurance, your possessions are covered against losses from fire or smoke, lightning, vandalism, theft, explosion, windstorm and water damage (not including floods). Like homeowners insurance, renters insurance also covers your responsibility to other people injured at your home or elsewhere by you, a family member or your pet and pays legal defense costs if you are taken to court.
Renters insurance covers your additional living expenses if you are unable to live in your apartment because of a fire or other covered peril. Most policies will reimburse you the difference between your additional living expenses and your normal living expenses but still may set limits as to the amount they will pay.
There are two types of renters insurance policies you may purchase:
- Actual Cash Value – pays to replace your possessions minus a deduction for depreciation up to the limit of your policy
- Replacement Cost – pays the actual cost of replacing your possessions (no deduction for depreciation) up to the limit of your policy
With either policy, you may want to consider purchasing a floater. A standard renters policy offers only limited coverage for items such as jewelry, silver, furs, etc. If you own property that exceeds these limits, it is recommended that you supplement your policy with a floater. A floater is a separate policy that provides additional insurance for your valuables and covers them for perils not included in your policy such as accidental loss.
http://www.iii.org/articles/can-i-get-insurance-if-i-rent-my-home.html
Posted on Wed, Jul 20, 2011
By Gina Roberts-Grey, Insure.com
Some aspects of your home insurance policy -- like rates and deductibles -- are relatively easy to find on your policy and understand. But some clauses lay buried within your policy's declarations and exclusions pages. If left unexplored, these stipulations can lead to headaches if you ever have to file a claim.
Don't wait until disaster strikes to find out what is -- and is not – covered by your policy.
Sneaky home insurance deductibles
If you have to file a claim, watch out for a sneaky loophole that deals with deductibles. Some home insurance companies have different deductibles for certain perils. You are probably aware of how much your deductible costs for regular perils covered in your policy. But homeowner insurance in high-risk hurricane areas (like the Gulf Coast) or tornado zones (like the Midwest) typically have a “special” separate and different deductible if you file a claim for damages caused by hurricanes or tornados.
"These separate deductibles are based on the insured property's value," says Robert Hunter, insurance director for the Consumer Federation of America and former Texas Insurance Commissioner who is also familiar with setting property insurance rate reductions for Florida. "They're often about 5 percent of the home's value."
For example, if your home is valued at $200,000, your "standard coverage" deductible for "other perils" losses like fire, burglary and such may be between $500 and $1,000. But Hunter says the hurricane and tornado deductible could be $10,000. That’s quite a difference if you’re not prepared to pay it.
Why two deductibles?
"Separate hurricane deductibles are written into home insurance policies to control an insurer's exposure to catastrophic loss, moderate the price of coverage and improve coverage availability," says Bob Dean, president and CEO of Dean & Draper Insurance Agency LP in Houston, Texas.
A tale of two insurance perils
According to Hunter, another especially egregious home insurance loophole is the "anti-concurrent causation clause." This one earned a nasty reputation following Hurricane Katrina.
According to this clause, if two events happen at roughly the same time (regardless of their order of occurrence) and one is covered and the other is not, the entire claim will be denied. So if your home is damaged by a windstorm (which is a covered peril in a standard policy) but it’s soon after also damaged by a flood – and you don’t have flood insurance – your insurer won’t cover the wind damage. "Even if the wind is what ripped off your roof to cause the flood," says Hunter.
Hunter says another example is vandalism and flood. "I was consulted on a claim where a vandal broke into a yard with a pool and the vandalism to the pool caused the home to flood. Because the owner didn't have flood insurance, neither the vandalism nor the flood damage was covered," he says.
Dean says the “anti-concurrent causation clause” is found in just about every home insurance policy. "There's the chance that anyone could have two casualties at or around the same time," he adds.
If you’re wondering where in your home insurance policy this clause can be found, Dean suggests checking the exclusions section.
This clause has led a public outrage because thousands of claims have been partially or completely denied. But the seemingly unfair wording is commonly upheld. "Past court rulings have upheld the use of the anti-concurrent causation clause and have not found it to be ambiguous in its wording," Dean says.
Coverage caps
In addition to clauses, Dean says there’s also a coverage cap to watch out for.
"Water damage is typically covered under a homeowner insurance policy but that coverage often comes with a cap or ‘up to the policy’ limits," he says.
A standard home insurance policy also typically has exclusions for water damage from flood, surface water, waves and overflow from a body of water. Some insurers may also have coverage limitations for basements.
Coverage limits are also typical jewelry, coins, firearms and antiques.
Compromised structures
Another common home insurance loophole concerns coverage relating to certain structures of your home or a shed.
Perhaps honeybees buzzed their way through your siding and built a hive that's compromising your home's foundation. Maybe termites have eaten into your home and left you to foot their lunch tab. Dean says some insurance companies may argue that since bees and termites have been around for centuries, they could have been attacking your home prior to the coverage going into effect.
Read your entire policy -- even all the fine print -- before purchasing or renewing your home insurance policy. "And check with your agent about every possible coverage exclusion or limitation to understand how your carrier will respond if you file a claim,” Dean says.
Posted on Wed, Jun 01, 2011
One of the more common complaints heard from insureds after a major property loss is a lack of homeowners coverage for valuable trees and landscaping. Most homeowners policies provide only limited coverage (with restricted perils) for this loss exposure—usually 5 percent of the dwelling limit subject to a maximum of $500 per tree or shrub. Peril restrictions may also preclude coverage; for example, there is no landscaping coverage for a loss to landscape arising out of windstorm. Unfortunately, many trees, in particular, can be valued in the thousands or even tens of thousands of dollars. To protect this investment, consider the following risk management tips.
· If you have valuable mature trees, consider asking a licensed or certified arborist to appraise their value. Trained arborists use guidelines to value these trees, and such guidelines are recognized by insurance companies, the courts, and, in most cases, the Internal Revenue Service.
· Once you have the valuation, consider asking for an endorsement under your homeowners policy to provide higher limits and enhanced coverage for your valuable trees and other landscaping.
· Practice sound loss control for your trees. For example, topping of trees should be avoided. (Topping is the indiscriminate cutting of trees to stubs or lateral branches that are not large enough to sustain the remaining branch.)
· Hire a tree specialist to properly prune and thin out your mature trees. This action makes your trees less susceptible to disease and insects. For extremely valuable trees, consider hiring an arborist for this work. When selecting an arborist, check for his or her membership in professional organizations such as the International Society of Arboriculture (ISA), or the Tree Care Industry Association (TCIA).
· Recognize tree hazards to avoid injuries and damage to property. For examples, dead or dying trees are more likely to fall into utility lines, which could cause power outages, surges, and fires. Dead or dying trees are also likely to damage homes and could even injure people should they fall. Hiring a reputable tree specialist to remove dead or dying trees is a smart move. Get copies of the contractor's certificates of insurance for workers compensation and general liability before work begins.
Get more personal lines insurance and risk management tips and ideas from IRMI.
Copyright 2010
International Risk Management Institute, Inc.
Posted on Thu, Apr 14, 2011
What Collectors Need to Know to Safeguard Their Treasures
“If you have homeowners insurance, there is coverage for personal property, but there are also limits to the value of goods insured under that policy. A large collection of antique art, antique furniture, and heirloom and estate jewelry will need a special rider or separate insurance,” advised Loretta Worters, vice president, I.I.I. “The precious antiques a homeowner has spent years amassing could be subject to fire, theft and a host of other perils, so it’s important to have your valuable possessions appraised and properly insured.”
If you have an antiques collection, you may want to consider getting home insurance from an insurer that specializes in high-net-worth individuals and/or an insurer with an expertise in art and antiques. These insurers generally provide risk managers for their policyholders, to advise them on how to best protect their art or antiques so that the collection retains its value. You can get the names of specialized insurers from a local independent agent.
Cost of coverage will vary depending on the type of art, where it will be displayed or stored, whether you plan to lend it out, and the item’s geographic location. Premiums may be more costly, for instance, in locations at high risk for hurricanes or wildfires.
Tips to protect and properly insure your antiques:
- Get your antiques appraised. Find out from your insurer what type of appraisal they will accept. Most insurers will require some kind of independent appraisal to ascertain the value of your collection, and the decision about what kind of appraisal/appraiser is acceptable rests entirely with them. Appraisals should come from qualified professional appraisers. The following appraisal organizations test and certify appraisers: The American Society of Appraisers (www.appraisers.org), The Appraisers Association of America (www.appraisersassoc.org) and the International Society of Appraisers (www.isa-appraisers.org).
- Take a full inventory and carefully document all the items in your collection. Take high quality digital photographs or video and have a complete written description of each item, with as much detail as possible, including the price you paid, the provenance and any appraisal information. Some insurers only require an itemized inventory over a certain dollar value, but it’s worth doing no matter how big or small your collection. Be sure to keep your inventory updated and notify your insurer as you acquire new items. Know Your Stuff® – Home Inventory, the Insurance Information Institute’s free online home inventory software makes creating and updating your home inventory easy and efficient. And with our free, secure online storage you will have access to your inventory anywhere, any time.
- Make sure you fully understand the terms of your policy. Will your insurer pay to restore your antique or replace it with an identical modern reproduction? Make sure to find out what perils are covered: fire, theft, accidental breakage, water damage, damage while traveling, etc.
- Take steps to safeguard your collection. This includes security precautions and systems, and storing items in appropriate lighting and climate conditions to properly preserve antiques. Be sure to understand what your responsibilities are in the eyes of the insurance company.
- Notify your insurer as soon as possible after you buy a new piece so that it can be added to your policy. Most policies will extend coverage to new pieces but only for a specified period of time (a few weeks to a few months).
- Revisit your policy annually. The value of antiques and collectibles can change quickly (up or down), or you may add to your collection or downsize it, so revisit your policy annually to make sure you’re not over- or underinsured. Some companies offer a 150 percent valuation guarantee in the event of a loss. This means that if an appraisal is not up-to-date at the time of a loss, the insurer will pay 1.5 times the value of the item listed on the schedule.
Keep in mind that if you are moving your antiques from the show to your home, you may need separate coverage. Ask the antique dealer whether they provide coverage when delivering the piece or if you need to get that coverage yourself? Inland marine insurance, generally available through your homeowners insurer, can be used to cover fine art or antiques in transit. Policies can cover individual collectibles although it is possible to choose blanket coverage. Coverage provides for all risks of physical loss unless the peril is a specific exclusion. Be sure to ask about coverage for “breakage” as this is not automatically provided by all inland marine insurance policies. In order to get a quote or coverage, you will need proof of value, specifically appraisal documentation, for each item you wish to insure.
Insurance Information Institute
THE I.I.I. IS A NONPROFIT, COMMUNICATIONS ORGANIZATION SUPPORTED BY THE INSURANCE INDUSTRY.
Posted on Thu, Feb 03, 2011
by khou.com staff
khou.com
Posted on February 2, 2011 at 10:26 AM
Updated today at 10:18 AM
HOUSTON -- We may be seeing more snow than expected, and it could start falling earlier than originally anticipated, 11 News Chief Meteorologist Gene Norman said.
“I’ve increased the amount of snow that I’m forecasting for the area,” he said. “We could see from three to five inches from Livingston back to Conroe, over toward Brenham. Two to four inches are likely from Wharton, Sugar Land, Houston and sections of Liberty County. And the sleet snow mixture along the coast could accumulate at least an inch.”
He said the mixture of snow, sleet and freezing rain could be falling in the Houston area as early as Thursday afternoon and will continue through much of Friday.
“Thursday we will barely get above freezing,” Norman said. “That’s why the moisture that will fall will likely quickly ice up on roads, and bridges, and overpasses, as well as the trees and power lines out there.”
Norman said this winter event won’t be like the one we had a few years ago. Because this time, we could have some serious trouble on the roads.
"If we go back a couple of years to the one we had in 2009, that will pale in comparison to what’s about to happen. Happy memories of making snowmen and snow angels and all of that, unfortunately, are going to be replaced with unhappy memories of all this ice that’s going to be coming in," Norman said.
__________
Cold weather tips to protect your pipes, pets and plants
Check flights at Bush Intercontinental
Check flights at Hobby
CDC's cold weather survival guide
__________
A Winter Storm Warning was issued for Southeast Texas, effective from noon Thursday until noon Friday. In addition, a Hard Freeze Warning was in effect until 12 p.m. Thursday.
On Friday, Norman said we’ll see lows in the mid-20s and highs near 34 degrees.
“The snow may not taper off until sometime in the early afternoon on Friday,” he said.
On Wednesday, the bitter cold prompted ERCOT to call for rolling electrical outages across Texas to compensate for a power shortage liked to the Arctic blast. The outages were supposed to last anywhere from 10 to 45 minutes.
The Associated Press contributed to this report.
