There’s a disturbing nationwide trend of insurance companies chipping away at coverage for homeowners, says Amy Bach, executive director of the nonprofit United Policyholders consumer group. She says she’s disturbed by what she sees as policies becoming less adequate.
“We have been working on a number of fronts to try to reverse this tide, while alerting consumers so they have a chance to protect themselves,” Bach says. “We have been going to regulators from all over the country and telling them it is getting very messy out there in the homeowners’ market. Instead of blanket protection, it is more like Swiss cheese and there really are a lot of holes.”
“In much of the country, the basic home policy is just for fire and theft,” Bach asserts. “For everything else you have to have extra coverage.”
Public claims adjuster Steven Venook in Florida points out that mold used to be covered under standard home insurance policies; now it’s listed as an exclusion.
Were you unfortunate enough to have two simultaneous disasters hit your house, one of which is not covered? Expect your whole claim to be tossed out.
“The worst is the anti-concurrent causation clause,” says Robert Hunter, director of insurance for the Consumer Federation of America. “If you have two events happen and one is insured and one is not — for example if you have flood and wind — they now say they will no longer pay for either event. Courts have upheld it.”
Just ask Hurricane Katrina victims.
Have you checked your home insurance deductible recently? It’s the amount deducted from what your insurer is going to pay on a claim. There are a lot of ways the buck is being passed to you.
Insurers are expanding use of “percentage deductibles” on home insurance policies. Instead of a specified amount, your deductible becomes a percentage of the insured value of the home. For example, if your home is insured for $200,000 and you have a 2 percent deductible for windstorm damage, you will have to pick up the first $4,000 in repairs – that’s a lot more than a flat-dollar deductible like $1,000.Bach points out that certain perils, such as wind damage, now may require a separate deductible. Here again, you’re probably looking at a percentage deductible of 2 percent or higher.
Industry insiders say insurers are questioning claims more.
“There are numerous conditions under a policy that say that you, the policyholder, must prove your claimed damages,” Venook says.
In cases of water damage, for example, home insurance companies “are going out of their way to try to determine that the consumer was somehow at fault and negligent,” Venook adds. “Insurance companies are showing up with forensic engineers on day one.”
Vernook says that Florida is a state especially hit hard by exclusions and separate deductibles, and that insurance companies are too focused on making profits and denying home insurance claims.
Home insurance companies have no choice but to seek reasonable protections against rising costs and risks, particularly in regions where violent storms are common and damage to homes can be widespread, such as the Gulf Coast states, explains Loretta Worters, spokesperson for the Insurance Information Institute.
“In 1992, Hurricane Andrew caused about $15.5 billion in insured losses,” Worters says. “It was considered the most expensive storm ever for insurers. It soon became apparent that there were more people who were building in high-risk areas, that there were more frequent and more severe storms.”
Some of the largest insurers found it hard to buy reinsurance, which is insurance for insurance companies. According to Worters, they were forced to begin switching over to percentage deductibles, so that homeowners could take on a larger share of the financial burden. “There is only so much money in the coffers,” she says.
Claims adjuster Robert F. D’Amore, vice president of New York Public Adjusters Association, also views the changes as companies protecting their interests and keeping prices within the reach of consumers.
“Underwriters are statisticians,” D’Amore says. “Their job is to compute the likelihood of what the loss will be. It is all scientific. Tornadoes are usually limited in scope, but a hurricane could take out many miles of coastline. The windstorm deductible is part of how they make their rates. It is the only way they can keep insurance affordable.”
Consumer advocates say that with the changing home insurance landscape, it’s essential that you understand your home insurance policy’s limitations.
View the original article here
Showing posts with label Insurance. Show all posts
Showing posts with label Insurance. Show all posts
Wednesday, August 10, 2011
Monday, August 1, 2011
Update Your Jewelry Appraisals: Insurance Coverage
All the news over the past year (or three) about the skyrocketing price of gold and silver has probably gotten your attention. Maybe you have a few pieces of jewelry you no longer like (or perhaps an earring that has lost their bud) and are considering selling. It’s natural to try to get a little more out of your stuff, especially if you don’t use them anymore.
One thing that some people, ourselves included, tend to forget to do on a regular basis is get our jewelry appraised to ensure our insurance coverage is sufficient. As gold and silver prices rise, you may discover that your insurance coverage is no longer enough to cover your valuables.
I would recommend getting your jewelry re-appraised every four or five years, unless you’ve seen a big run-up in commodity prices. With precious metals becoming more valuable as of late, now is a good time to re-appraise your jewelry unless you’ve already done so in the last few years. The easiest way to check is to review your appraisal paperwork to see when it was done and how your piece was valued. If you it was appraised last year, then the higher commodity prices were used. If it was done ten years ago, you might want a refresher.
While you’re at it, you should be regularly updating your home inventory too.
View the original article here
One thing that some people, ourselves included, tend to forget to do on a regular basis is get our jewelry appraised to ensure our insurance coverage is sufficient. As gold and silver prices rise, you may discover that your insurance coverage is no longer enough to cover your valuables.
I would recommend getting your jewelry re-appraised every four or five years, unless you’ve seen a big run-up in commodity prices. With precious metals becoming more valuable as of late, now is a good time to re-appraise your jewelry unless you’ve already done so in the last few years. The easiest way to check is to review your appraisal paperwork to see when it was done and how your piece was valued. If you it was appraised last year, then the higher commodity prices were used. If it was done ten years ago, you might want a refresher.
While you’re at it, you should be regularly updating your home inventory too.
View the original article here
Friday, July 15, 2011
Aon Benfield Achieves Flat to Decreasing Pricing on U.S. Reinsurance Programs for Clients, According to June and July 1 Renewals Report
Aon Benfield, the global reinsurance intermediary and capital advisor of Aon Corporation (NYSE: AON), today releases its Reinsurance Market Outlook – June & July 2011 Reinsurance Renewals Update report, which highlights the trends witnessed during both the June 1 and July 1 reinsurance renewals periods.
The report reveals that the renewals brought meaningful rate changes to regions affected by the significant catastrophe events of the first quarter, including the March 11 earthquake and tsunami in Japan, and the February 22 earthquake and aftershocks in New Zealand.
However, while the market and other reinsurance intermediaries reported price increases of up to 15 percent in less- or non-affected areas, Aon Benfield achieved rates of flat to -5 percent for its clients. On U.S. programs with co-broking arrangements, reinsurance pricing at renewal was significantly less favorable on average compared to those accounts where Aon Benfield acted as sole broker.
The different outcomes are a result of Aon Benfield's extensive analytical work into catastrophe events and their financial implications, and the strength of its advocacy in the reinsurance markets on behalf of its clients.
Key observations during the June and July renewals periods include:
June 1 catastrophe renewals consisted mainly of Florida and New Zealand programs – the pricing of Florida renewals was flat to -5 percent for Aon Benfield clients, which was directly in-line with the firm's guidance published April 1. New Zealand renewals pricing at June 1 increased more than 100 percent due to the large and still uncertain losses from the series of events in Christchurch.Florida accounts where clients opted for co-broking services averaged increases of 10 percent. Clients where Aon Benfield served as sole broker averaged decreases of 7.5 percent. July 1 catastrophe renewals consisted mainly of national U.S. insurers, Australian insurers and those Japanese insurers that had extended their April 1 programs by three months. The trends of June 1 continued into July with Aon Benfield achieving pricing of flat to -5 percent for its U.S. insurer clients, which was again directly in line with the firm's guidance published April 1. Japanese programs renewed with price increases ranging from 30 to 50 percent. Australian insurers' price increases ranged from 15 to 70 percent.Included in the results are certain anomalies – for example, reinsurers were not willing to reward insurers that cut exposure in key catastrophe zones with rate decreases that matched the pace of the decreasing exposures. Reinsurers, however, were willing to increase pricing at a rate lower than the pace of growing catastrophe exposures for insurers that wrote more business. These anomalies were more noticeable in programs requiring significant capacity.
Bryon Ehrhart, chairman of Aon Benfield Analytics, said: "There was real debate in the approach to the June and July renewals periods about whether western European and U.S. insurers should pay more for their catastrophe capacity due to the significant loss activity seen in countries such as New Zealand, Australia and Japan. Based on our extensive analytical work, and the work we have undertaken on the ground in affected regions to achieve the most comprehensive perspective on the losses, we believed that these insurers should not pay more, and we were the sole voice advocating this position on behalf of our clients. By focusing on the facts, the capital position of the reinsurance industry, and not the emotion stirred in the market, we were able to navigate through a turbulent period and achieve differentiating client results."
Aon Benfield forecasts that pricing of U.S. property catastrophe renewals for the remainder of the year will be flat, assuming no additional occurrences of substantial insured and reinsured catastrophe losses.
The firm notes that the reinsurance market for renewals for the remainder of the year will be more sensitive to additional losses than last year given reinsured loss experience in 2011 to date.
View the original article here
The report reveals that the renewals brought meaningful rate changes to regions affected by the significant catastrophe events of the first quarter, including the March 11 earthquake and tsunami in Japan, and the February 22 earthquake and aftershocks in New Zealand.
However, while the market and other reinsurance intermediaries reported price increases of up to 15 percent in less- or non-affected areas, Aon Benfield achieved rates of flat to -5 percent for its clients. On U.S. programs with co-broking arrangements, reinsurance pricing at renewal was significantly less favorable on average compared to those accounts where Aon Benfield acted as sole broker.
The different outcomes are a result of Aon Benfield's extensive analytical work into catastrophe events and their financial implications, and the strength of its advocacy in the reinsurance markets on behalf of its clients.
Key observations during the June and July renewals periods include:
June 1 catastrophe renewals consisted mainly of Florida and New Zealand programs – the pricing of Florida renewals was flat to -5 percent for Aon Benfield clients, which was directly in-line with the firm's guidance published April 1. New Zealand renewals pricing at June 1 increased more than 100 percent due to the large and still uncertain losses from the series of events in Christchurch.Florida accounts where clients opted for co-broking services averaged increases of 10 percent. Clients where Aon Benfield served as sole broker averaged decreases of 7.5 percent. July 1 catastrophe renewals consisted mainly of national U.S. insurers, Australian insurers and those Japanese insurers that had extended their April 1 programs by three months. The trends of June 1 continued into July with Aon Benfield achieving pricing of flat to -5 percent for its U.S. insurer clients, which was again directly in line with the firm's guidance published April 1. Japanese programs renewed with price increases ranging from 30 to 50 percent. Australian insurers' price increases ranged from 15 to 70 percent.Included in the results are certain anomalies – for example, reinsurers were not willing to reward insurers that cut exposure in key catastrophe zones with rate decreases that matched the pace of the decreasing exposures. Reinsurers, however, were willing to increase pricing at a rate lower than the pace of growing catastrophe exposures for insurers that wrote more business. These anomalies were more noticeable in programs requiring significant capacity.
Bryon Ehrhart, chairman of Aon Benfield Analytics, said: "There was real debate in the approach to the June and July renewals periods about whether western European and U.S. insurers should pay more for their catastrophe capacity due to the significant loss activity seen in countries such as New Zealand, Australia and Japan. Based on our extensive analytical work, and the work we have undertaken on the ground in affected regions to achieve the most comprehensive perspective on the losses, we believed that these insurers should not pay more, and we were the sole voice advocating this position on behalf of our clients. By focusing on the facts, the capital position of the reinsurance industry, and not the emotion stirred in the market, we were able to navigate through a turbulent period and achieve differentiating client results."
Aon Benfield forecasts that pricing of U.S. property catastrophe renewals for the remainder of the year will be flat, assuming no additional occurrences of substantial insured and reinsured catastrophe losses.
The firm notes that the reinsurance market for renewals for the remainder of the year will be more sensitive to additional losses than last year given reinsured loss experience in 2011 to date.
View the original article here
Tuesday, June 7, 2011
Would You Consider Wedding Insurance?
I’ve heard of a lot of wacky types of insurance but here’s one that surprised me – wedding insurance. It’s the subject of Cameron Huddleston’s latest Kip Tips column, which, (not) coincidentally, was published after to the wedding of Prince William and Catherine Middleton. Wedding insurance is “special event insurance that provides reimbursement for nonrefundable deposits if the wedding needs to be canceled or postponed due to a natural disaster, death, illness, serious injury or other catastrophe listed in the policy.”
When we were married, the thought of wedding insurance never crossed our mind. Our event was held indoors but it was also held in February, which risked Mother Nature’s snowy wrath in Maryland. While everything went off without a hitch, I’m not entirely sure insurance would’ve been something we seriously considered had we even known about it. The biggest worry is that a service provider (caterer, photographer, florist, DJ, etc.) doesn’t show up, but in those cases you have legal means to get your deposit back, and in those cases it pays to do your homework on the vendor.
As we ramp up wedding season, does wedding insurance seem like a good idea? I’m inclined to say no.
View the original article here
When we were married, the thought of wedding insurance never crossed our mind. Our event was held indoors but it was also held in February, which risked Mother Nature’s snowy wrath in Maryland. While everything went off without a hitch, I’m not entirely sure insurance would’ve been something we seriously considered had we even known about it. The biggest worry is that a service provider (caterer, photographer, florist, DJ, etc.) doesn’t show up, but in those cases you have legal means to get your deposit back, and in those cases it pays to do your homework on the vendor.
As we ramp up wedding season, does wedding insurance seem like a good idea? I’m inclined to say no.
View the original article here
Friday, May 27, 2011
What Is Flood Insurance?
In light of the unfortunate flooding in the Mississippi River area, people are wondering, “What if this happened to me? How can I protect myself and my family?”
According to FloodSmart.gov (the official site of the National Flood Insurance Program), everyone is at risk of flooding. Floods can happen almost anywhere. In fact, floods are the most common natural disaster in the U.S. They can happen even if you don’t live in a high-risk area. For instance, a flood can happen during winter when temperatures rise suddenly and the frozen ground can’t absorb the melting snow.
The Cost of Flooding
Floods can be extremely costly. Over the last 10 years, the average flood claim has amounted to approximately $48,000. For instance, the cost of a 6-inch flood in a 1000- square foot home is about $20,000. Here is a sample breakdown of the cost associated with a 6-inch flood:
As you can see, even a “small” flood can make a huge impact and damage on your property.
Who Is Required to Buy Flood Insurance?
For homeowners who live in coastal and high-risk zones, flood insurance is mandatory. The Federal Emergency Management Agency (FEMA) mandates it for any mortgage that is backed by the government
For homes built in low to moderate-risk and undetermined risk zones, flood insurance is optional. While flood insurance is not federally required for moderate-to-low risk areas, it is still recommended. Some people choose to purchase flood insurance just for the peace of mind.
How Can You Buy a Flood Insurance Policy?
Unfortunately, standard homeowners’ insurance doesn’t cover flooding. This means that homeowners have to purchase separate flooding insurance. There are two ways an owner can purchase flood insurance:
Keep in mind that regardless where you purchase the flood insurance (NFIP or an insurance company) you will always use an insurance agent to purchase it. You can always contact the NFIP for a referral to an insurance agent.
Is My Home In A Flood Zone?
Even if you are renting, it’s still wise to learn if your home is in a flood zone. You can ask your insurance company or your community floodplain manager for a Floor Insurance Rate Map (FIRM). A FIRM will generally show a community’s base flood elevations, flood zones and floodplain boundaries. Keep in mind that FIRM maps are constantly being updated due to changes in geography, construction, mitigation activities and meteorological events.
View the original article here
According to FloodSmart.gov (the official site of the National Flood Insurance Program), everyone is at risk of flooding. Floods can happen almost anywhere. In fact, floods are the most common natural disaster in the U.S. They can happen even if you don’t live in a high-risk area. For instance, a flood can happen during winter when temperatures rise suddenly and the frozen ground can’t absorb the melting snow.
The Cost of Flooding
Floods can be extremely costly. Over the last 10 years, the average flood claim has amounted to approximately $48,000. For instance, the cost of a 6-inch flood in a 1000- square foot home is about $20,000. Here is a sample breakdown of the cost associated with a 6-inch flood:
- Cleaning = $1,000
- Doors, base, trim and windows = $1,100
- Electrical and plumbing = $150
- Finished floor, wood, carpet = $7,900
- Interior wall finishes = $1,000
- Wall insulation, drywall or paneling = $1,500
- Kitchen and bath cabinets= $2,400
- Appliances = $90
- Repairs to furnace/AC = $250
- Bedroom furniture = $950
- Dining room furniture = $900
- Kitchen ware and food = $150
- Living room furniture = $1,400
- Computer accessories = $600
- TV accessories = $80
- Washer and drier = $80
- Accent furniture and accessories = $250
- Personal items = $350
As you can see, even a “small” flood can make a huge impact and damage on your property.
Who Is Required to Buy Flood Insurance?
For homeowners who live in coastal and high-risk zones, flood insurance is mandatory. The Federal Emergency Management Agency (FEMA) mandates it for any mortgage that is backed by the government
For homes built in low to moderate-risk and undetermined risk zones, flood insurance is optional. While flood insurance is not federally required for moderate-to-low risk areas, it is still recommended. Some people choose to purchase flood insurance just for the peace of mind.
How Can You Buy a Flood Insurance Policy?
Unfortunately, standard homeowners’ insurance doesn’t cover flooding. This means that homeowners have to purchase separate flooding insurance. There are two ways an owner can purchase flood insurance:
- If the property is required to have flood insurance and is financed with a federally backed mortgage (FHA, VA, Fannie Mae, Freddie Mac) then the owner can purchase insurance through the National Flood Insurance Program (NFIP).
- If the property is not in a high-risk or coastal area and having flood insurance is optional, then the owner can purchase a policy through the NFIP or with an insurance company that offers this type of insurance.
Keep in mind that regardless where you purchase the flood insurance (NFIP or an insurance company) you will always use an insurance agent to purchase it. You can always contact the NFIP for a referral to an insurance agent.
Is My Home In A Flood Zone?
Even if you are renting, it’s still wise to learn if your home is in a flood zone. You can ask your insurance company or your community floodplain manager for a Floor Insurance Rate Map (FIRM). A FIRM will generally show a community’s base flood elevations, flood zones and floodplain boundaries. Keep in mind that FIRM maps are constantly being updated due to changes in geography, construction, mitigation activities and meteorological events.
View the original article here
Thursday, May 5, 2011
Find a Good Auto Insurance Policy
Auto insurance is very important and can account for a sizable portion of your monthly budget. Depending on many factors such as how many vehicles you have, your driving record, and age, auto insurance can run into the thousands of dollars per year. Even though the cost of the policy is important, it is also important to make sure you're adequately covered. You might think that you're doing a good thing by saving a few bucks a year opting for less coverage, but it can come back to haunt you in the event of an accident. Learn how to find the best auto insurance policy to meet your needs.
View the original article here
View the original article here
Tuesday, May 3, 2011
How Much Insurance You Need
Life insurance is an important aspect of any financial plan when others rely on your income. As important as it is, many people go completely uninsured, and others are wasting money on far more insurance than they really need. There is no right or wrong answer to how much insurance you need as your values and goals will ultimately determine what is right for you. Here's a quick guide to help you get started in the right direction.
View the original article here
View the original article here
Saturday, April 9, 2011
You Don’t Have to Pay an Auto Insurance Premium Increase
If your auto insurance company is asking you to pay excessive money and you think that you have no other option than paying the insurance company than you are wrong. Well there is nothing wrong in continuing with the same provider as long as you are satisfied and the provider meets your requirement. If not than you have all the rights and option to move to a different provider with whom you would feel safe and satisfied.
If you are not satisfied or annoyed regarding your premium in that case you should immediately make an enquiry and question your company about the rising premium, in that case you will find that the rising premium is not actually affecting you which sometimes can be quiet intolerable. So in order to avoid intolerance you may make a decision say either by asking for a rebate or you can change your company.
When you have decided that you are buying auto insurance from a different insurance company, it would not be a bad idea to move to a different insurance provider, provided you have compared the quotation more than once with the other.
The motive of changing the insurance provider is that you want to save money as much as you can. Comparatively there is nothing to be surprised if you find out that there are various companies offering you the auto insurance deal at a lower price.
If there is a rise in your car insurance premium, then it is not compulsory to pay it. However the decision is yours what you want to do? Some people will stick with the same provider and others will make a move to for a good cause. I guess nobody likes increase in price, so people would love to change the insurance provider in order to save a huge amount of money in the long run.
View the original article here
If you are not satisfied or annoyed regarding your premium in that case you should immediately make an enquiry and question your company about the rising premium, in that case you will find that the rising premium is not actually affecting you which sometimes can be quiet intolerable. So in order to avoid intolerance you may make a decision say either by asking for a rebate or you can change your company.
When you have decided that you are buying auto insurance from a different insurance company, it would not be a bad idea to move to a different insurance provider, provided you have compared the quotation more than once with the other.
The motive of changing the insurance provider is that you want to save money as much as you can. Comparatively there is nothing to be surprised if you find out that there are various companies offering you the auto insurance deal at a lower price.
If there is a rise in your car insurance premium, then it is not compulsory to pay it. However the decision is yours what you want to do? Some people will stick with the same provider and others will make a move to for a good cause. I guess nobody likes increase in price, so people would love to change the insurance provider in order to save a huge amount of money in the long run.
View the original article here
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