Homeowners insurance premiums increasing for several reasons - Tulsa World

They can't see how it could be the economy, because materials and labor can't be that much higher with the economy where it is, and with inflation being as low as the government claims.

The Oklahoma Insurance Department website ( tulsaworld.com/OIDFAQs) says if you compare last year's "declaration page" with the "renewal declaration," you'll see what has changed.

Consumers with "replacement cost" policies might see their premiums go up, as their home values have increased, to keep up with inflation. Perhaps you lost a discount when you or your home became ineligible or there was a claim surcharge.

Even if you haven't filed claims, rates can increase when insurers file increases based on their overall loss experience statewide. See rate filings in the "Monthly Filing Activity Reports" of OID's Property and Casualty Division ( tulsaworld.com/OIDfilings).

"Oklahomans are seeing their homeowner's premiums increasing for several reasons, the biggest being 'covered losses,' " said Vaughn Graham, president of Rich & Cartmill, an independent insurance agency in Tulsa. "Over the past five years, insurers have paid policyholders $4.7 billion for thunderstorm and wind-related claims, alone. Another recent payout for millions will be claims from recent Oklahoma wildfires."

Policyholders want to know how to lower their homeowner premiums. The department said several things might decrease your premium. As companies do not charge the same rates, shop for one offering the best coverage for the best price.

There are upgrades for your home that might provide discounts on your premium. Many companies offer discounts for hail-resistant roofs, dead-bolt locks, smoke alarms, fire extinguishers, security systems, approved fire/burglar alarms and sprinkler systems. Most companies also have discounts for both home and autos on the company policy. Save money by increasing the policy deductible (but you'll have to pay more out of pocket when filing a claim). Find a guide on choosing a policy at tulsaworld.com/OIDhomeowners

Graham suggested considering the deductible as it is the first dollar amount of a covered homeowner's claim. Review policies with your agent and things you want to protect through insurance. Does it still make sense to pay an insurer for that protection?

Companies sometimes non-renew policies due to claims (especially "frivolous claims"). State laws say they cannot cancel, non-renew or increase premiums on policies in effect 45 days or more, due just to first claims. Once you've filed more than one claim, there is no law stopping insurers from non-renewing it at your renewal date. When they "non-renew," they must provide proper written notice compliant with policy language.

When your policy is canceled or "non-renewed," finding new coverage is often a problem. Companies have strict underwriting rules and are reluctant to offer coverage to those in this situation. Call the Oklahoma Market Assistance Program 405-842-9883 or visit tulsaworld.com/OIDMAPs, a state program "designed for people having difficulty finding insurance coverage for their owner-occupied homes or mobile homes."

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'Actual cash value' policies an insurance option

Homeowners often face increasing premiums on "replacement cost value" home insurance policies as the cost of replacement materials and the rising probability of environmental damage to homes in this area are increasing, said State Farm Insurance spokesman Jim Camoriano.

The alternative to the more expensive RCV policies is "actual cash value" policies that pay only the depreciated value of damaged home components. Policy types offered before buyers close on home purchases are determined by initial inspections by insurance companies.

"We do require initial inspections on coverage applications, Camoriano said. "Typically an agent goes out and takes pictures. There can always be another inspection if the agent feels something there should be looked at more closely, before closing.

"Conditions that would prevent our writing policies unless sellers agree to fix them up-front are driven by the risks. Each property is different. For example, if, when we inspected the property, we found steps without handrails - could that pose a liability risk? Is the structural integrity compromised in any way? (If it's something that could be corrected.) So there are some things we look at. It's all based on safety and the present condition of the structure.

"If we go to a home and find a 20-year-old roof on it, there is no set rule about which type of policy we would issue: 'replacement cost value' or 'actual cash value.' Obviously, a replacement policy would have to cost more, to insure a 20-year-old roof, than an actual value policy would, which would pay only the depreciated value of the roof. In general, roofs with more than one layer would have to be examined closely."

Insurers encounter few roofs on which underwriting hinges on just one factor, such as multiple layers, he said. They look at age, especially when a 20-year roof is involved, as this is something definitely considered in policy type and cost.

Chances are the same roof also has more than one layer. Due to variances and material types, no hard, fast rule applies, but with a 20-year-old roof the integrity of its shingles is questionable. Hail is one thing that can destroy a roof, but so is extreme summer heat and ice-covered limb falls.

Most insurers require homes be insured for full replacement value. As the building costs in your area increase, it becomes necessary for insurers to increase the covered amount at renewal time to maintain replacement coverage. They are required to provide at least 30 days notice to you (or your designated representative) when making such a change to your policy - unless you've provided written consent to automatic increases.
Original Print Headline: Insurance premiums on rise

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Tulsa World consumer writer Phil Mulkins wants to know which topics interest you. Call 918-699-8888, email your suggestion to phil.mulkins@tulsaworld.com or mail it to Tulsa World Consumer, P.O. Box 1770, Tulsa, OK 74102-1770.

Isaac to Impact Coastal Area With $480 Billion of Insured Property - Fox Business

Hurricane Isaac, the slow-moving storm lumbering north across the Gulf of Mexico, is expected to impact a coastal area with more than $480 billion of insured property, according to disaster-modeling company AIR Worldwide.

But the storm, with sustained winds of 75 miles per hour, won't cause nearly that much damage. Michael Kistler of Risk Management Solutions said Isaac was similar to Hurricane Gustav, which caused about $2 billion in damage to insured property when it made landfall in Louisiana in 2008.

Insurance-industry experts said most structures in the storm's affected area in Louisiana, Mississippi and Alabama will easily withstand Isaac's gusts, but they warned that flooding could pose a greater threat.

"This is probably going to be more of a water event than a wind event," said Brion Callori, a senior vice president for engineering and research at business-insurer FM Global. "It's not just the coastal areas that will be affected. It's going to go inland."

The first round of flooding from Isaac will come from storm surge, the wall of water that blows ashore with a hurricane. Forecasts call for a surge of as much as 12 feet in some coastal areas, and Isaac is scheduled to make landfall around high tide Wednesday, which will exacerbate the inundation.

"It's very wide, and it's trapped within the Gulf of Mexico," said Erik Nikodem, an executive vice president at Lexington Insurance, a unit of American International Group Inc. (AIG). Combine those factors with its slower-than-expected speed, and "that means the storm surge just continues to increase," he said.

Isaac will blow ashore on the seven-year anniversary of Hurricane Katrina, which cost the insurance industry more than $40 billion in 2005. But Mr. Kistler said Gustav offered a closer comparison, given Isaac's intensity.

No two storms are alike. Mr. Kistler said Gustav packed "more horsepower" as a Category 2 hurricane, and Isaac, a Category 1 storm, is larger and moving more slowly. Still, with its $2 billion price tag, "it caused what we think to be in the ballpark of the losses" that will be caused by Isaac, he said.

Far more than half of Gustav's losses were tied to home insurance, but Isaac's potential to deliver massive flooding may leave some homeowners in a lurch. Floods aren't covered under standard home-insurance policies, and homeowners who need flood insurance typically must buy it from the federal government.

Commercial insurers such as AIG and FM Global typically cover flooding in their property policies. Mr. Nikodem and Mr. Callori said their companies were reaching out to clients in areas that may be affected by the storm and plan to send in adjusters as soon as the danger has passed.

The $480 billion estimate from AIR measures insured property in the coastal counties within Isaac's expected impact area. The figure amounts to about 21% of the insured exposure for Louisiana, Mississippi and Alabama combined.

Write to Erik Holm at erik.holm@dowjones.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

Copyright © 2012 Dow Jones Newswires

Dark days: Insurance for power outages - Fox Business

You're not alone if you're in the dark about home insurance coverage for power outages.

The issue sparks lots of questions, and the answers are all over the grid, depending on your insurance company, your home insurance policy and the state you live in.

Coverage also varies depending on the damage you suffer and the cause of the outage. Here's how insurance generally applies in the following situations:

• Lightning strikes your home and fries your electronics. Standard home insurance typically covers damage from lightning, and some home insurance policies cover electronics damaged by power surges that are the result of lightning strikes, according to the Insurance Information Institute (III). Some home insurance policies also cover damage due to other power surges. Keep in mind there may be a limit on the payment per damaged item.
• You opt for a hotel room. Home insurance pays for the costs of temporarily relocating if your home is damaged by a "covered loss," such as a fire, and is uninhabitable while repairs are made. Generally a standard policy will not pay for a hotel stay simply because the power was out. Although your home might feel uninhabitable without air conditioning during an August heat wave, it technically is livable. The same goes for the winter when temperatures drop and the heat goes out. For more on what your insurance covers if you truly are forced to leave your home, see Champagne and Jacuzzi lifestyle? Oh yeah, you can claim it!
• Water water everywhere. If a power outage causes your pipes to freeze and burst, then home insurance would come to the rescue. However, if you purposely left your home without power and the pipes burst as a result, then you probably would have trouble getting your claim paid. Keeping your home heated is part of your responsibility to maintain the property.
• Food spoils when the fridge is off. Standard home insurance policies typically cover food spoilage if the power was out due to some other covered loss -- such as a fallen tree that damaged your house and knocked out electricity. But some insurance companies offer coverage for food spoilage from any type of power outage. This coverage sometimes is included in the policies or offered as an endorsement, which is a policy add-on you can purchase by paying a higher premium. The deductible for food spoilage is sometimes waived or lower than the deductible for other damage. For more information on spoiled food, see The Boston Globe's report on food safety following power outages.

Your best bet for deciphering coverage for power outages is to contact your insurance company or agent. In addition, do what you can to prevent disasters that could result from outages. Invest in surge protectors to safeguard electronics and figure out how to turn off the water, in case the pipes freeze. Shutting off the water quickly helps prevent the pipes from bursting. The III also recommends installing an emergency release valve, which protects the plumbing from the pressure caused by frozen pipes.

The original article can be found at Insure.com:
Insurance for power outages

FEMA: Irene washed 26000 NJ homeowners into flood insurance policies - The Star-Ledger - NJ.com

It appears many New Jerseyans have heeded the call of nature.

In the year since Tropical Storm Irene slammed into the Garden State, tens of thousands of homeowners have bought flood insurance, according to the Federal Emergency Management Agency, which administers the National Flood Insurance Program.

As destructive as Irene was, many residents were devastated to find out their private homeowner insurance policies would not cover damage caused by waterlogged basements, for which they needed to have flood insurance, the majority of which is underwritten by FEMA.

While mortgage companies generally require homeowners who live in flood zones to maintain flood insurance, such policies aren't generally required or held outside flood zones, where Irene's fury was acutely felt.

Now it appears many homeowners have gotten the message.

Since last August, state residents have purchased 26,621 new policies, according to FEMA. The agency didn't have a tally on the overall number of flood insurance policies held in the state, but Eqecat, a catastrophe-risk modeling firm, pegged the number at roughly 230,000 prior to the storm.

In some cases, FEMA compelled homeowners to buy flood insurance following the storm. Those who received individual assistance from FEMA were required to purchase flood policies, with the agency assisting in the cost of the policy's first year, said Mary Goepfert, an external affairs spokeswoman for FEMA in New Jersey.

Meanwhile, the state's insurance regulator has said home insurers largely performed well during both Irene and Tropical Storm Lee, which struck the state a couple of weeks later.

The state received 498 written complaints related to insurers' actions following the storms, according to Marshall McKnight, spokesman for New Jersey's Department of Banking and Insurance. The department requires complaints to be put in writing before it investigates, he said.

Of those complaints, 465 were deemed not valid. Twenty-seven were deemed valid, in that the insurer's actions broke state insurance laws or regulations, or they should have been resolved without state intervention, he said. However, the state didn't take any administrative actions against any insurers, McKnight said.

The remaining six complaints are still under investigation, he said.

Irene, along with other catastrophes that struck last year, appears to have had a modest impact on premiums so far. Early estimates on insured losses from the storm, which include damages to homes, cars and businesses, were thought to be around $915 million, Jersey City-based insurance data provider ISO said in January.

Since January, 79 insurers have requested and received permission to raise homeowner insurance rates this year, according to data from the banking and insurance department. Separately, two insurers received approval to lower their rates, while two others requested no rate increase.

McKnight said while payouts from the storms exert some pressure on insurers to raise rates, carriers take a variety of other factors, such as the cost of reinsurance, into consideration when setting premiums.

State Farm, the state's largest home insurer by the dollar value of premiums written, raised rates starting in January by 4.1 percent. Allstate, the second largest home insurer in the state, received approval for a 3.7 percent increase starting this month.

New Jersey Manufacturers Insurance Co., headquartered in West Trenton and the third-largest home insurer, raised rates 6.7 percent in April. Chubb, the Warren-based insurer and the fourth-largest home insurer, increased premiums by 2.9 percent, starting in March.

The largest rise in premiums this year went to Utica Mutual Insurance Co., based in New Hartford, N.Y. It sought and received a 22 percent rate increase, according to state records.

A spokesman for the insurer did not return a telephone call seeking comment.

Ed Beeson: (973) 392-4262, ebeeson@starledger.com.

Insurance for power outages - MSN Money

This post comes from Barbara Marquand at partner site Insure.com.

You're not alone if you're in the dark about home insurance coverage for power outages.

The issue sparks lots of questions, and the answers are all over the grid, depending on your insurance company, your home insurance policy and the state you live in.

Coverage also varies depending on the damage you suffer and the cause of the outage.

Here's how insurance generally applies in the following situations:

(Post continues below.)

• Lightning strikes your home and fries your electronics. Standard home insurance typically covers damage from lightning, and some home insurance policies cover electronics damaged by power surges that are the result of lightning strikes, according to the Insurance Information Institute. Some home insurance policies also cover damage due to other power surges. Keep in mind there may be a limit on the payment per damaged item.
• You opt for a hotel room. Home insurance pays for the costs of temporarily relocating if your home is damaged by a "covered loss," such as a fire, and is uninhabitable while repairs are made. Generally a standard policy will not pay for a hotel stay simply because the power was out. Although your home might feeluninhabitable without air conditioning during an August heat wave, it technically is livable. The same goes for the winter when temperatures drop and the heat goes out. For more on what your insurance covers if you truly are forced to leave your home, see "Champagne and Jacuzzi lifestyle? Oh yeah, you can claim it!"
• Water water everywhere. If a power outage causes your pipes to freeze and burst, then home insurance would come to the rescue. However, if you purposely left your home without power and the pipes burst as a result, then you probably would have trouble getting your claim paid. Keeping your home heated is part of your responsibility to maintain the property.
• Food spoils when the fridge is off. Standard home insurance policies typically cover food spoilage if the power was out due to some other covered loss -- such as a fallen tree that damaged your house and knocked out electricity. But some insurance companies offer coverage for food spoilage from any type of power outage. This coverage sometimes is included in the policies or offered as an endorsement, which is a policy add-on you can purchase by paying a higher premium. The deductible for food spoilage is sometimes waived or lower than the deductible for other damage. For more information on spoiled food, see The Boston Globe's report on food safety following power outages.

Your best bet for deciphering coverage for power outages is to contact your insurance company or agent. In addition, do what you can to prevent disasters that could result from outages.

Invest in surge protectors to safeguard electronics and figure out how to turn off the water, in case the pipes freeze. Shutting off the water quickly helps prevent the pipes from bursting. The Insurance Information Institute also recommends installing an emergency release valve, which protects the plumbing from the pressure caused by frozen pipes.

More on MSN Money:

What if you got hit by a bus?

5 ways flood insurance may soak you

Get the most from insurance claims

Claiming on home insurance costs up to six times the excess - MSN Money UK

Claiming on home insurance costs up to six times the excess

It's not worth claiming on your home insurance policy until the cost of an incident is substantially above the excess.

If you claim on your home insurance, you pay for the excess. But it also costs you in a double-hit of cancelled no claims bonuses and raised premiums for up to five years afterwards.

That's why it's not worth claiming until the cost of the incident is substantially above the excess.

Putting the excess to the test

I compared six insurers offering excesses of £50 or £100 total excess. If you had an incident costing £200, all of these insurers would recover the entire claim through resulting higher home insurance premiums in following years.

In fact, the total cost of claiming would work out at two to four times the excess.

Sometimes you'd be even more out of pocket, with your total costs rising to nearly £300 instead of the £200 if you'd paid for the incident yourself.

This means you could potentially pay six times more than the policy excess a result of claiming on your home insurance.

I also compared another four insurers offering an excess of £150 to £250, based on making a claim for an incident worth £200 more than the excess. Two of those four recovered their entire payouts in following years through higher premiums. The other two clawed back at least £100 extra.

All the banks fared particularly badly in these tests.

Think carefully before claiming

So, whatever excess you choose when arranging your home insurance, it seems you're looking at paying an extra £100 to £200 over and above the excess.

So long as you understand this, it doesn't necessarily mean you're being ripped off. It just means you should think carefully before claiming for incidents unless they are more costly.

Shopping around after a claim

However, you can reduce the extra costs of higher post-claim premiums by being disloyal. You can regularly save money by shopping around for home insurance, but this is particularly the case after a claim.

[SPOTLIGHT]Each insurer tries to attract different sorts of customer. Some price more attractively for those who have made no claims, while others try to get the market for those who have claimed. The nub is: if your insurer was cheap before you made any claims, it's not likely to be competitive afterwards.

If the renewal price barely budges, on the other hand, your insurer is probably already very expensive.

Note also that some insurers, especially banks again, won't always lower their premiums even if you gain another year's no claims bonus. Others will reward you better.

Quirkily, some insurers increase their prices if your claims history gets better. This is likely an anomaly based on statistics. An insurer might have found that someone with one year's no claims bonus is more likely to claim than someone with no bonus whatsoever.

That's the insurance market for you.

Compare properly to save the most

To reduce your total cost of claim to less than the excess plus £100, you might need to play around with the voluntary excesses when using comparison services such as lovemoney.com.

Increasing the voluntary excess can shave £20 plus from your premium while simultaneously lowering the total excess you have to pay.

This happens because insurers with a low compulsory excess can be boosted up the table. It happened in several of my tests.

If you're looking to buy both buildings and contents insurance, you should also compare them both combined and individually, to see which is cheapest for you each year.

More on home insurance:

Compare home insurance quotes

Home insurance: check your provider isn't hiding the best deal

Homeowners in flood-risk areas face insurance nightmare

Home insurance: the features you can't do without

What you can't claim for

Home insurance for bank holiday DIY botch - Think Money

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By Lucy Bower

23 August2012

With the promise of a rainy bank holiday just around the corner, many DIY enthusiasts will be dusting off their brushes. If you are, be warned! DIYers can end up paying through the nose for their frugality if they're not covered for accidental damage.

Research from Halifax Home Insurance suggests that 63% of people DIY to save money - but it could be a false economy if they don't have the right insurance to correct mistakes. A quarter of home owners aren't really sure if they're covered for accidental damage or not, and one in ten don't even have home insurance.

The potential for a 'botched job' really depends on what you're attempting. Most people would be confident enough painting their own home (77%) and around half reckon they could put up a shelf. Only 11% would attempt fitting a kitchen and only 5% would fit a gas fire - which could be dangerous without the right knowledge and experience, and expensive to put right.

DIY is a great way to save money and a good pastime to while away a rainy afternoon, but it might be worth checking your home insurance policy - just to be on the safe side.

Tags: insurance, bank holiday, DIY, Home Insurance

Home- and Car-Sharing Sites Struggle to Get Insurance - Businessweek

Entrepreneur Debbie Wosskow created a website she describes as "online dating for homes." Through her London-based Love Home Swap, a couple in Manhattan can swap their classic-six prewar apartment for a villa in Zanzibar for a week. For Wosskow, finding more than 5,000 property owners in 95 countries willing to hand strangers their house keys has proven easier than getting an insurance company to write her a policy.

After contacting about two dozen insurers, Wosskow struck a deal for coverage starting in September—but only for properties in Europe. The policy, underwritten by Hiscox (HSX), will protect against property damage and last-minute trip cancellations. That means about two-thirds of homeowners have to arrange their own or go without. "It's a nightmare," Wosskow says. "The insurance industry as a whole has been painfully, and I emphasize painfully, slow to react and offer relevant services."

Online startups that help people rent their houses and cars to strangers have mushroomed. Yet many entrepreneurs are having a tough time convincing insurance firms that they're worth the risk. One obstacle may be the generational divide, says Paul Mang, a partner at Razor's Edge Consulting who previously led part of McKinsey's property-casualty insurance practice. "It's hard for baby boomers to get their head around this," says Mang. "Why would anybody rent out their car for $5 an hour?" Another challenge: These new businesses want insurers to blend elements of policies tailored to individuals with those that apply to companies, Mang says.

For Getaround, a San Francisco-based outfit that helps car owners rent their vehicles, the search for coverage took more than a year—and required a shift in the business plan. Chief Executive Officer Sam Zaid says he contacted between 60 and 80 carriers and, at one point, resorted to cold-calling insurance executives he found on LinkedIn (LNKD). Getaround, which counts Yahoo! (YHOO) CEO Marissa Mayer among its investors, initially planned to offer its service on university campuses, but some carriers balked at insuring a pool of students, says Zaid. So the startup shifted its focus to cities.

An insurance wholesaler eventually put Getaround in contact with Warren Buffett's Berkshire Hathaway (BRK/A), which in 2011 agreed to underwrite an annual policy for liability, collision, and theft during a rental, but only after a three-month trial run. "We definitely pay a premium still, given the early nature of the industry," says Zaid, who like other entrepreneurs declined to disclose his company's insurance cost. "Paying a premium to get a company like Berkshire felt like the right trade-off."

The fledgling sharing industry got a wake-up call in February, when a car that was rented through a service called RelayRides crashed in Boston, killing the driver and injuring four people in another vehicle. The startup has a liability policy with a $1 million cap; damages could exceed that amount, says Jonathan Karon, a partner at Karon & Dalimonte who represents one of the injured people. "Almost any other car on the road would have" had only "a fraction of the million-dollar coverage available for this claim," Alex Benn, RelayRides' vice president of business development, said in an e-mailed statement. "This tragic incident is an outlier from our many thousands of reservations."

A San Francisco resident came back from a trip last year to find her apartment vandalized after renting it out on Airbnb. After the incident, the Bay Area company signed up with Lloyd's of London to cover all bookings on the site for as much as $1 million in property damage in countries including the U.S., Germany, and Australia. Airbnb has booked more than 10 million guest nights since its founding in 2008, and incidents like the one last year are "incredibly rare," said spokeswoman Emily Joffrion in an e-mail.

Beth Leri, a spokeswoman for Lloyd's, declined to comment, as did Hiscox's Alyssa Daskalakis. Berkshire didn't respond to a request for comment left with Buffett's assistant.

Prices for coverage should come down as sharing becomes more common and insurers accumulate data, says Getaround's Zaid. The startup sends Berkshire a monthly report and sometimes has conversations to clarify policy terms, such as when a car owner in the Bay Area asked whether he could list his DeLorean. The stainless-steel sports car was of 1980s vintage, while Getaround's policy requires that cars be model-year 1995 or newer. Berkshire's response, according to Zaid: No problem.

The bottom line: Insurers are shunning sharing sites because they require coverage that blends elements of individual and business policies.

Homeowners insurance company taking a look at its own expenses - Live Insurance News

Citizens currently faces $1.9 billion in expenses every year at the three corporate locations across the state, in order to provide homeowners insurance to policyholders throughout Florida.

The leaders of that state backed insurer are now looking into those costs.

This investigation includes both the pay and the benefits that are being received by its employees, as well as the costs associated with travel, and the expenses relating to its overall structure of management. Simultaneously, these company heads are also defending the price of having sent officials to Bermuda, New York, Zurich, and London, during the negotiation of a couple of bond replacements that had brought about a savings of $47 million.

This homeowners insurance company of last resort was not designed to be as large as it has become.

It had been created in order to provide the residents of the state with a place where they could afford coverage when all other private policies were considered to be cost prohibitive.

Among the areas into which Citizens is examining its homeowners insurance expenses are:

• The necessity for three separate head offices (in Tallahassee, Tampa, and Jacksonville).
• The structure of the organization as a whole.
• Travel costs and expense accounts.
• The pay and benefits packages received by staff.
• The cost of in house staff as opposed to outsourcing some jobs.

Though at first glance it may look as though the salaries that are being paid to the employees of Citizens homeowners insurance are actually below market, as there have not been any increases for cost of living or merit since 2009, when all of the numbers are tallied up, the total is rather different. There are some additional benefits and compensations provided to some of the employees, and that benefit plan – when compared to other insurers – is a rather lucrative one.

It is hoped that this state backed home insurance company's organizational structure can be overhauled in order to place greater controls over the expenses, even though they are currently at a relatively stringent level.

Homeowners Insurance and the impact of Fire Hazard Severity Zones - Alpenhorn News

S. E. Williams
Staff Writer

This is the second in a series of articles offered by The Alpenhorn News aimed at exploring the complex and symbiotic relationships between insurance carriers, government policies and fire agencies.
�� 2011 was a record year for disasters in America, and as a result did nothing to quell the anxiety experienced by local homeowners in recent years over the availability and reliability of homeowners� insurance policies.
�� National Public Radio reported that the nation experienced a record-breaking twelve major disasters last year. Each disaster accrued over a billion dollars in damages, and as a result some large insurance carriers were quick to leverage these disasters as justification to once again increase rates.��

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�� In recent years, California communities, like those in the San Bernardino Mountains, have seen insurance premiums escalate even as the availability of insurance providers serving the area declined, while others who still offer policies continue to find creative ways to either cancel policies or not renew them.
�� Reports indicate that although the insurance industry in California historically experienced periodic ups and downs in the cost of homeowners� insurance policies, rates have increased steadily every year since 2008.
�� The requirement for homeowners insurance is something that property owners have little control over�homeowners insurance is required by mortgage lenders. And, although homeowners do have the option of selecting their own insurance carriers, it is the mortgage companies that dictate what minimum insurance requirements they will accept.
�� Those requirements must be met before any lender will fund a mortgage loan�lenders are unwilling to take any risks relative to fire or any other type of damages. As a result, the property becomes collateral in the insurance process. Interestingly, the way insurance companies determine their requirements is a curious process that may be somehow linked to hazard determinations made by the government.
�� Fire protection is a government responsibility held at either the federal, state or local level. The unincorporated areas of San Bernardino County fall within a State Responsibility Area for fire protection under the stewardship of the California Department of Forestry.
�� Title 14 of the California Code of Regulations requires the California Department of Forestry (Cal Fire) to create maps of significant fire hazard areas. It is well established that wildfire hazards have two key components�probability and fire behavior.
�� Cal Fire developed Fire Hazard Severity Zone maps based on fuels, terrain, weather and all other factors deemed relevant. The initiative was originally developed in 1985. The current Fire Hazard Severity Zone maps were published in November, 2007. According to Cal Fire, the maps were �developed and field tested using a science-based computer model that assigned hazard scores based on factors that influence fire likelihood and fire behavior.�
�� A 2007 California Department of Forestry publication stressed that the Fire Hazard Severity Zones identify fire hazard, not fire risk. And, the report makes a clear distinction between the two.
�� �Hazard,� as defined by the CDF, is based on the physical conditions that give a likelihood that an area will burn over a 30 to 50-year period. It does not consider modifications such as fuel reduction efforts.
�� The CDF defined �risk� as the potential damage a fire can do to an area under existing conditions, taking into consideration any modifications such as defensible space, building codes and other actions taken to reduce the �risk� of fires. Ultimately, according to the CDF, �risk� considers the vulnerability of what is being protected.
�� Controversy exists regarding whether these Fire Hazard Severity Zone maps are driving up the costs of homeowners insurance. Allegedly, the maps are primarily intended for consideration in general plans; building construction standards relative to building permits; natural hazard real estate disclosures at time of sale; defensible space clearance requirements; and, property development standards such as road widths, water supply and signage.
�� Fire Hazard Severity Zones were not developed for tactical firefighting or insurance. And, according to a recent investigative report by the Orange County Register, there is no clear indication that insurance rates are affected by the Fire Hazard Severity Zone Maps�or are they?
�� Since Cal Fire adopted the current Fire Hazard Severity Zone maps for State Responsibility Areas (SRA�s) in November 2007, homeowners� insurance rates have increased in California each succeeding year. Conveniently, across the nation, it is easy for big insurance carriers to blame each year�s increase on the previous year�s fires, floods, tornadoes and hurricanes and any other disaster that can befall a community.
�� Call it a convenient coincidence or government/industry contrivance; it is difficult to determine �what�s true� relative to this issue. What is known, however, is that insurance industry information provider RiskMeter, based in Boston, Massachusetts, is used nationally by a number of large insurance companies, and does make the Fire Hazard Severity Zone maps available to both underwriters and insurance agents.�
�� In addition, Insurance Services Office (ISO) is another source used by the insurance industry to determine eligibility and rates. It purportedly provides statistics that measure a home�s risk in relation to wildfires like properties in the mountain communities that are in designated California high fire/wildfire zones�this seems very similar to the SRA�s Fire Hazard Severity Zones.
�� According to ISO�s official website, insurers rate properties using Public Protection Class (PPC) Codes that consider the distance to a fire hydrant and the nearest fire station (excludes volunteer stations).� The score is based on a scale of 1 to 10, with 10 indicating a very high fire risk. When a property scores above five there is a premium surcharge.
�� Insurers also use an ARS or Brushfire Score that is based on a scale of 1-15, with 15 being a very high fire risk. This rating considers three variables that include the type and amount of brush within a quarter mile radius; the slope and terrain; and, whether the property can be easily accessed by a fire truck. This includes whether the road is paved and/or whether the property can be accessed from more than one direction. Insurance companies look for an ARS score of 11 or less.
�� The Insurance Services Office considers a home to be in a Special Hazard Interface Area if its fuel and slope scores are unfavorable. This clearly mirrors the Cal Fire SRA�s Fire Hazard Severity Zones which are also based on fuels, terrain, etc.

Insuring Your Home Business - Plattsmouth Journal

(NAPSI)—If you have a home business, did you know that most homeowners insurance policies don't protect all your business assets?

Sure, standard homeowners insurance may provide some protection for business equipment, but coverage varies and it may not be enough. In addition, your homeowners policy won't cover your business if a customer or supplier is injured on your property or while using your product. To protect yourself and your home business:

• See if you can add an endorsement to your homeowners policy. Your insurer may offer one that could add property coverage and some limited liability coverage.

• Purchase in-home business insurance policies. Some insurers offer specific in-home business insurance policies with some of the same features as larger commercial policies but with lower policy limits and at a lower premium. For example, if you have to shut down your business because of damage to your house, the in-home policy will cover the income the business loses and ongoing expenses, such as payroll, for up to one year.

• Get a business owners policy. Many insurers offer policies combining property insurance, business interruption service and liability insurance.

Using Your Vehicle For Business?

Think again. Your personal auto insurance policy covers your vehicle for personal use but may not cover business use. All vehicles used primarily to conduct business must be protected with commercial auto insurance, generally a combination of bodily injury, property damage, collision and comprehensive coverage.

Are You Hiring?

Business is booming and you may have just decided to hire. Most states require that you have workers' compensation insurance. And it's likely the most complex insurance coverage, so make sure you check with the state department or work with an insurance agent familiar with your state regulations to determine the best solution for you.

More Is Often Better

Depending on your assets, you may want to consider the additional protection of an umbrella liability policy. It provides extra protection that takes effect when lawsuit-related costs exceed an auto or general liability policy's limits. You can get the coverage you need now and increase your limits as your company grows.

How Do You Choose?

A sound business plan includes insurance coverage that provides the protection you need today, yet can easily expand to grow with the changing needs of your home business. Visit www.wellsfargo.com/insurance or call an agent at (866) 860-3030 to learn more.

 

On the Net:North American Precis Syndicate, Inc.(NAPSI)

Insurance agent in Rolla is charged with arson for fire that burned rental home - KY3

ROLLA, Mo. -- A man from Rolla is charged with hiring someone to burn down a rental home that he owned.  State fire investigators say Christopher Blair, 39, received an insurance payment for $64,400 on the loss a couple of weeks after the fire.

According to the probable cause statement used as the basis of the charge, the fire at 1510 Spencer Street in Rolla was reported about 1:40 a.m. on March 27.  Firefighters had to force their way into the home through locked doors to put it out.

An investigator said burn patterns "on the kitchen floor leading into the living room and up the steps that were consistent with the burning of an ignitable liquid. . . . There was no accidental cause that would cause the burn pattern found at the scene.  Based on the fact that these burn patterns are of a poured ignitable liquid, which would have been dependent upon the introduction of an outside heat source, this fire is determined to be incendiary in nature."

The probable cause statement says investigators learned "Blair, who is the owner of the damaged structure, had paid Mickey Schlicker an employee to have the house destroyed and gave him one hundred dollars in cash.  Mr. Schlicker hired two other people identified as Martin Valley and Raymond Doug Isgrigg to set the house on fire.  Mr. Schlicker gave Mr. Valley and Mr. Isgrigg fifty dollars which was half of what was being paid by Mr. Blair and showed them the residence that needed to be burned.

"Once all the arrangements were made Mr. Schlicker gave Mr. Valley and Mr. Isgrigg the key to get into the house.  Later that night the fire occurred . . . as planned.  Mr. Schlicker was aware that he was going to be questioned about the fire and retrieved his keys back the next morning.  Mr. Schlicker paid the other fifty dollars to Mr. Valley and Mr. Isgrigg for successful completion of their jobs."

The probable cause statement says the accusations are verified by several people.  It also says Schlicker twice tried to commit suicide during the investigation due to stress, and wrote a note about the fire, which police have as evidence. 

The detective says Blair received insurance money three weeks after the fire after he filed a claim with his insurance company.   Blair is an agent for Farmers Insurance Group in Rolla.

Isgrigg and Blair were charged with second-degree arson on Tuesday.  If they're convicted, they could receive prison sentences up to seven years.  A judge set Blair's bond at $25,000.  No bond has been set for Isgrigg.

Buying Home Insurance: What You Need to Know - RealtyBizNews

What is Home Insurance?

House insurance, or which is sometimes recognized as property insurance, offers disbursement to the homeowner in the occasion of loss because of fire, theft, or damage in the course of certain natural elements for instance hail, flooding, lightning and tornado. In accordance with the kind of policy, house insurance will reimburse the loss according to the fair market price at the time of the loss of the house, or completely substitute the loss based upon the existing rebuilding costs.

© vencav – Fotolia.com

The policy of homeowner shall not merely cover the cost of repairs; however, the cost of the home contents (including clothing, jewelry, electronics, furniture, appliances, and so on), in addition to incidentals, for example the cost of an interchange residence for the period of the process of repair.

Mortgage lenders and House insurance

Several lenders shall demand a borrower to procure insurance for the house, and furthermore, enable the lender organization to gain advantage over the policy. In view of the fact that the holder of the mortgage has a lien concern regarding the home and the damage loss of the possessions shall have an effect on the fair market price of the property except well repaired.Proof of insurance of house is desired by the lender at some stage in closing and is forwarded to your solicitor using a folder letter from the organization of house insurance, with which you agreed.

Particulars of home insurance

House insurance is an obligation for any homeowner. Seeing that, the home is most individual's biggest investment, it makes an immense economic sense to underwrite it is guarded from loss. Nevertheless, not all policies are generated equally. The following are some important points one ought to think about when buying house insurance

Replacement Policy

When buying house insurance, one is supposed to gravely consider a replacement policy, why not at an elevated premium. When buying any assets, the building materials decrease in value, or lose price, as the age of the property goes on. Additionally, inflation has an effect on building costs as it does the whole thing in your financial plan.

A roof of a house, which claims an installation cost approximately four thousand dollars, might cost approximately seven thousand dollars to put back if it comes under the damage of frozen rain. A replacement policy shall cover the whole cost of substitution of the roof, not only its fair market price during the loss.

Contents

Ensure that the policy covers the whole cost of contents based on their replacement price. Furnishings, for instance clothing, electronics and appliances decrease in value quickly from the time of acquisition. The policy of replacement for furnishings shall replace the above mentioned items of a similar type and quality.

In the case of contents, it is a good thought to undertake an inventory of your furnishings and bring up to date it from through time. Some shall take photographs of the rooms in the house, together with storage areas, to make available evidence of the furnishings in the occasion of fire or other forms of natural disasters that cause loss. Moreover, having the photographs of your house contents in places that are safest from each and every possible risk of damage is also recommended.

About the author: Sharon Green's articles are very informative and impressive. She writes about house insurance to cater to the needs of her readers. If you want to know more visit Houseinsurance.com

With drought aid in limbo and little insurance, ranchers face tough decisions ... - Omaha World-Herald

It's hard to tell what frustrates Todd Eggerling more — the weather or Congress.

Searing temperatures and drought scorched Eggerling's land in southeast Nebraska, leaving little grass to feed his 100 cattle. Then Congress left for a five-week break without agreeing on aid to help ranchers through one of the worst droughts in the nation's history.

That means it will be September before Eggerling and other ranchers can even hope for disaster aid legislation that includes cash to buy feed until they would normally send their cattle to feedlots or slaughter in the fall or winter. For some, it's already too late. Out of grass and out of cash, they've sold their animals.

For others, time is rapidly running out as they try to hold on. Their decisions will affect the price and supply of meat for months, perhaps years, to come.

"I'd like to see every one of the senators and congressmen go out into one of these widespread, drought-stricken areas and spend a day," said Eggerling, 44, of Martell, Neb. "Walk around and see the effects of what's going on. Look at the local economies and see what's going to happen to them. Then they can go back to Washington with a real perspective and say, 'Hey; we need to do something.' "

Most farmers are having a hard year with drought and unusually warm weather in the middle of the country burning up everything from corn to cabbage. But ranchers are in a particularly precarious position because most don't have access to federally subsidized insurance programs that cover crops like corn and soybeans.

Private companies won't insure grazing land because it's too hard to predict losses, and ranchers say pilot programs tested by the U.S. Department of Agriculture are too expensive and pay out little when there's a loss, Nebraska Farm Service Agency director Dan Steinkruger said.

The White House announced last week that the federal government will buy up to $170 million worth of pork and other meat for food assistance programs in an effort to help drought-stricken farmers. The Defense Department also was expected to encourage its vendors to speed up meat purchases in an effort to prop up prices with a glut on the market expected in the next few months.

Feed prices soared amid the drought, and livestock farmers have been selling off animals for months as they run out of money. The meat is expected to hit grocery stores this fall, with prices dropping briefly and then rising early next year. Meanwhile, farmers are getting a fraction of what their animals would normally be worth at sales.

"It's not like we can hold our products — like setting a shirt on a shelf until it sells for the price we set," said Kristen Hassebrook, a spokeswoman for the Nebraska Cattlemen, a trade group. "We can't just tell that steer or heifer to stop eating for a couple of days until the market share goes up. If we can't feed that animal, we have to sell it for whatever the price is that day."

The Obama administration also has offered low-interest emergency loans, opened federal land for grazing and distributed $30 million to get water to livestock. Farmers say they'll take what help they can get, but emergency loans come with a tangle of red tape and aren't available to everyone. Water is appreciated, but animals need to eat, and even with grazing on some federal land, hay is in short supply.

The House approved $383 million in disaster relief earlier this month, but Congress went home before the Senate acted on the bill. The Senate had previously passed a disaster aid package as part of a five-year farm bill, but GOP leaders in the House refused to bring that to a vote because many Republicans object to the nearly $80 billion included for the food stamp program.

The standoff left ranchers uncertain about what to do: Should they buy expensive feed, assuming the federal government will ultimately help them pay the bill, or should they sell their cattle at a loss, knowing they may find out later they would have been eligible for aid?

"For Congress to put this off for five weeks until they come back is really, really difficult to understand," said Michael Kelsey, executive vice president of Nebraska Cattlemen.

With no grass for grazing, Eggerling cut corn and soybeans stunted by the drought to use as cattle feed. But that will soon run out, he said, and he'll send animals he can't feed to slaughter. Because they haven't reached their full weight and he's paid by the pound, he'll take a loss.

"If I get out of this year with a $50,000 net loss, I'll be happy," he said.

It's not clear how much money individual ranchers would receive even if Congress passed the House bill upon members' return. The estimated $383 million disaster relief package would be divvied up among eligible applicants, and a number of factors would be considered in deciding awards. Some may get nothing. Others could get tens of thousands of dollars.

Eggerling said any aid will likely come too late for him. If Congress had passed a bill before the break in early August, he could have hastily made arrangements to buy hay. Two weeks further into the drought, it's almost impossible to find feed that doesn't have to be shipped from several states away at exorbitant prices, he said.

For aid to matter now, Congress also would have to open all federal conservation land for grazing or cutting hay and make sure those selling hay from federal land are doing it at cost, he said.

"Right now, it's being scalped," Eggerling said.

Rep. Leonard Boswell, a member of the House Agriculture Committee who raises cattle in drought-ravaged southern Iowa, said he understands ranchers' plight. He's been forced to use hay left over from last year to feed his 130 head of cattle this summer because the drought burned up most of the grass on his 480-acre farm just east of Lamoni.

"I'm very sensitive to having a safety net that's affordable, accessible and workable," Boswell said. "It's one of the reasons I've been very keen on getting this farm bill done, and I'm very, very disappointed that we are where we are."

But groups like the anti-tax Club for Growth continue to push conservative lawmakers to block the farm bill and aren't even sold on the House's one-time disaster relief bill.

"If it's not offset, then we would strongly consider opposing it," Club for Growth spokesman Barney Keller said. "We don't have the money to continue to deficit-spend without cutting spending somewhere else."

Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

evacuees want to know what's covered by fire insurance - Record-Searchlight

Photo by Andreas Fuhrmann

Brad McDonald, of Red Bluff (left), watches his parents, Brook and Linda McDonald, pack belongings Monday at their home on Canyon View Loop in Paynes Creek as the Ponderosa Fire burns in the canyon behind their home off Highway 36. "We're just getting pictures and stuff," Brook McDonald said. "We're just trying to get what we can't replace. If it goes, it goes."

Reader submitted fire photos

Anxious families who have been forced to flee their homes because of the Ponderosa Fire have many questions. Those with homeowners or renters insurance probably wonder just what their policy covers.

"Being forced to evacuate a home is very stressful, and typically most people don't think too clearly during this time," Insurance Information Network of California

spokesman Tully Lehman emailed Monday.

Jeff Avery of State Farm Insurance in Redding spent the weekend and Monday calling his clients who may have been affected by the Ponderosa Fire, which has grown to 16,280 acres and is threatening some 3,500 homes.

More than 2,000 people had been evacuated by Monday afternoon.

Avery also went to the evacuation center at Big League Dreams in Redding on Monday to assist volunteers helping displaced families.

"You go out and see if anybody can help," said Avery, who was one of a handful of area agents who went to Big League Dreams. "Ironically, we are not going to run into any of our policyholders there."

Avery estimated that State Farm agents in the north state have 600 policyholders who live within a 10-mile radius of the fire's epicenter.

Meanwhile, an Allstate Insurance claim adjuster will be at the evacuation center in Redding today to answer questions and assist policyholders, company spokesman Freddy Santos said.

Santos said Monday afternoon the company had not received a lot of calls from clients in the north state displaced by the fire.

Most standard policies have additional living expenses coverage, Avery said.

The coverage gives evacuees the money to cover the cost of a hotel room while they are out of their home.

"It also can cover food costs and clothing as well while under mandatory evacuation order," Lehman said.

Evacuees should keep their receipts to help process their claim.

Typically, additional living expenses "coverage is in the range of 10 (percent) to 20 percent of the homeowner's dwelling coverage," Lehman said. When homeowners return home after the fire, they should make any needed temporary repairs, like broken windows, to their homes and prepare for a visit from their insurance adjuster, Lehman said.

"Preparing for an adjuster simply means making a list of items around the home you want an adjuster to see and making a list of questions to ask about the process as well," Lehman said. Unfortunately, in the wake of a disaster like a wildfire, people trying to make a quick buck will often swoop into the affected area. Lehman said homeowners should always ask for a business card and a state contracting license number from anyone soliciting services.

"Too often people will come in and offer to do the work and either do poor work or simply take the money and not do any work," Lehman said.

Consumers can obtain information about settling disaster insurance claims and preparing a home inventory by visiting the Insurance Information Network of California at www.iinc.org.

Insurance companies canceling homeowners insurance policies because of ... - kjrh.com

You may not think about cleaning the roof of your home but insurance companies now say you should.

Whether you do or not could affect your policy.

Is your roof dirty?  Does it have dark streaks or green moss growing on it?

It's not just a nuisance.  Insurance companies, believe it or not, are now canceling policies because of roofs they consider too dirty.

Bob Foppe never thought much about the dark streaks on his roof.  After all, it wasn't leaking.

But then he received a letter from his insurance company threatening cancelation.

"Yeah, I got a letter from my insurance company.  They came a day i wasn't home, took some pictures," said Foppe.

The letter indicated mold and algae staining on his roof and on the vinyl siding on the shady side of his house.

"They said if I didn't correct it they could terminate my policy," said Foppe.

Mike Jackson runs a siding and roof cleaning business that's getting a lot of business these days now that more and more insurance companies are warning homeowners to clean their roofs.

"It catches them by surprise because roof stains go unnoticed," said Jackson.  "Until they get the letter."

The reason for these letters is because moss can eventually damage asphalt shingles and insurers don't want to pay for a new roof.

"People are unnecessarily replacing roofs in 10, 12, 15 years, just because of appearance," said Jackson.  "They don't need to be replaced.  They just need to be cleaned."

A new roof costs $5,000 to $10,000.  A professional cleaning costs about $500.

Foppe decided to hire a cleaner.

"They used their cleaning solution and scrubbed it," said Foppe.

More importantly, it prevented a costly insurance cancelation.

Websites are filled with suggestions for cleaning your roof yourself, and you can.

But be careful.  Standing on a steep roof is a serious safety risk.  In addition, blasting it with a garden hose or pressure washer can seriously damage the shingles.

Copyright 2012 Scripps Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Long-term scare: The cost of insurance that covers nursing home stays is soaring - New York Daily News

You've hit middle age and suddenly you are worried about your future.

What happens if you can no longer take care of yourself and you need to move to a nursing home or hire an aide?

Medicare and health insurance don't cover these things and the cost of long-term care in New York City is through the roof. Your assets could easily go down the tubes, along with your family's financial security.

Time to purchase a long-term care policy, right? Good luck.

The long-term care insurance biz is undergoing a radical transformation that's presenting tough consequences for consumers.

Premiums for new policies have surged between 30% to 50% over the last five years, according to the American Association for Long-Term Care Insurance, turning this product into an unaffordable luxury for many New Yorkers.

Today, a married couple who purchase policies at age 60 with a three-year benefit period and a $150 a day benefit are looking at an annual cost of more than $3,000, the association said.

"I am very concerned that people are not moving forward," said elder care attorney Ronald Fatoollah of Ronald Fatoullah & Associates in New York. "It's gotten more expensive."

Insurers are raising rates on existing policies too and they are offering fewer options such as lifetime benefits.

According to insurance research group LIMRA, as many as 11 out of the top 20 insurance companies have pulled out the business over the last five years, though they will continue to honor existing policies. The latest to go: Prudential which announced its exit in July.

As people live longer and hold on to their policies, insurance companies are finding it harder to turn a profit. At the same time, low interest rates have made it tough for insurers to grow their reserves to pay for future claims.

So what should you do? Considering what's at stake, it's still important to weigh your future risks against the high costs of buying a policy, experts say.

"I still encourage my clients to purchase it, if they can afford it," said Marcie Roth, an elder law attorney with Singer, Block, Matles & Roth in Brooklyn.

The daily cost of a semi-private room in a nursing home in the New York area is $369, or a $135,000 a year, according to the MetLife Mature Market Institute. The cost of a home health aide is around $20 an hour.

And the odds are high that you'll need help: There is a 40% chance that someone who has reached 65 will enter a nursing home where the average stay is two and half years, according to stats compiled by Morningstar.

SC homeowners quest to lower hurricane insurance rates - MyrtleBeachOnline.com

It's been a quiet hurricane season so far.

With no major systems affecting Beaufort County since Tropical Storm Alberto hovered offshore for a few days in May, the only inclement weather has come from booming but relatively benign afternoon thunderstorms.

The absence of destructive weather is cause for celebration among coastal residents, and it's a source of vindication for Beaufort resident Daryl Ferguson.

In late May, Ferguson and five other businessmen and civic leaders wrote Gov. Nikki Haley, asserting that S.C. homeowners were paying higher-than-necessary insurance premiums based on an inflated estimate of the risk of a hurricane.

The coalition's efforts have gained traction statewide, but Ferguson remains frustrated he hasn't had the opportunity to pitch his thoughts and research to the governor in person.

"Of course I'm surprised there's been no meeting yet; I understand she's been campaigning and working on the budget," he said. "But our overall base of support is growing."

In June, Gov. Haley pledged to examine the issue during a stop in Beaufort to stress hurricane awareness.

"I think it's something we have to continue to look at, so you're going to see us continue to work on that over the summer and try to engage the General Assembly with it in January," she said. An attempt Friday to reach her office for a statement was unsuccessful.

The impact

In Beaufort County, the average premium for a home insured for $150,000 is about $1,840 a year, according to a Charleston Post and Courier study.

Statewide, premiums have risen 71 percent during the last decade and are nearly three times higher than they were in 1996.

Ferguson says those rates aren't in line with what he calls "the safest coast in the South," and his group's plan to amend them is a response to a plea Haley made upon taking office.

"She asked the business community upon her inauguration to step up and offer ideas to make the state more competitive," he says. "We took her seriously."

Ferguson says lower premiums could jump-start the local economy – potentially contributing $500 million annually between Charleston and Savannah and creating 2,000 to 3,000 jobs.

And he's not alone.

Hilton Head Island Realtor Andy Twisdale says high premiums have become an increasing source of concern for those thinking of retiring to the area or buying a second home.

"I got a call recently from an attorney in Chicago," Twisdale said. "He said, 'I've been looking to move there for five years and your insurance rates are the reason I haven't.'"

Twisdale called Ferguson's data "exquisite and well-detailed," adding the state has not experienced a significant hurricane since the 1850s.

Twisdale said he intends to address the issue with local Realtors' associations and those in Charleston and Myrtle Beach in the weeks to come.

A growing chorus

John Robinson, president of the Hilton Head Area Association of Realtors, agreed the issue demands further investigation.

"The cost of property insurance in Beaufort County and South Carolina, and the insurance laws and costs to property owners is a concern to all residents," he said. "The Hilton Head Area Association of Realtors certainly supports potential studies on this matter."

State Sen. Tom Davis, R-Beaufort, says the growing chorus for insurance rate reform stems from a fundamentally reasonable demand.

"Beaufort and Charleston counties have three times less risk than places along the Gulf, but their premiums are three times higher," he said. "The problem is, our state Department of Insurance has been accepting at face value the results of private companies' data models."

He says he hopes to spark discussion of the matter when the legislature reconvenes in January.

"It's not necessarily ambitious when you look at the political path forward," he said. "All we're asking (the state Department of Insurance) to do is justify these rate increases."

Consumer Reports: Best homeowners insurance - 9NEWS.com

CONSUMER REPORTS - Homeowners insurance premiums keep going up. And coverage keeps eroding, according to Consumer Reports.

One reason is higher deductibles. So can you count on your insurance company if disaster strikes, as it has for so many people this summer? Consumer Reports says maybe, maybe not.

Discrepancies between the payment a homeowner expects and what an insurer actually covers are not unusual, according to the Consumer Reports National Research Center. It surveyed more than 11,000 subscribers who have filed claims in the past few years. 

Consumer Reports found that for large claims when the damage was $25,000 or more, 19 percent of the people polled did not agree with the amount their insurers wanted to pay.

Some of the lower-rated national insurers are big-name companies, including Allstate and Farmers Insurance.

But the survey also found that most people were very satisfied with their insurer. Among the top-rated home insurers in Consumer Reports' survey are Amica and USAA, a company that primarily serves families with some connection to the military.

If you've got a large claim and you are not happy with the amount your insurer is offering to pay, try disputing it. People with a large claim who did that received $6,000 more on average than those who did not.

When disputing an insurance claim:

? Request a meeting to review your estimate line by line.
? Ask to see specific contract language if you're told your policy does not cover the damage.
? As a last resort, consider getting a public adjuster.

And be sure you read over your policy carefully before disaster strikes. Many companies have reduced their coverage, especially when it comes to hurricane damage.

Two ways to cut your costs–get your home and car insurance with the same company. And consider increasing your deductible from $500 to $1,000.

Complete Ratings and recommendations on all kinds of products, including appliances, cars & trucks, and electronic gear, are available on Consumer Reports' website. Subscribe to ConsumerReports.org.

(Copyright © 2012 Consumers Union of U.S., Inc. All Rights Reserved.)

Citizens Insurance plans to revamp home reinspections - Bradenton Herald

TALLAHASSEE -- Citizens Property Insurance Corp. announced Friday it is making significant changes to its home reinspection program following an outcry from consumers and recent media coverage over a staggering $137 million in premium increases tied to the initial program.

Under its new plans, homeowners who lose insurance discounts due to a reinspection can receive a second inspection free of charge and will have new tools to dispute first inspectors' findings.

"In response to policyholder and agent feedback, Citizens is implementing changes to its inspection program to address concerns about the implementation and quality of the program as well as provide better education on the importance of protecting homes against storm damage," said Citizens board chairman Carlos Lacasa.

Citizens is still deciding whether to apply the changes retroactively. That decision could impact more than 175,000 property owners, who have lost an average of $800 in credits after their inspections.

The announcement comes

less than a week after the Herald/Times Tallahassee Bureau published a series of stories documenting how hundreds of thousands of Floridians have seen premiums soar as the state-run insurer intensifies its plans to raise rates through reinspections and reduce coverage.

Created a decade ago to be a safe haven -- the so-called "insurer of last resort" -- Citizens has ballooned to become the state's largest insurer, with about 1.4 million policies. Most of its risk is concentrated in South Florida and the Tampa Bay area, hazard-prone regions where many homeowners cannot find coverage in the private market.

Its actions -- including rate increases -- affect the entire insurance market, impacting the cost of housing for nearly every Floridian, including those with private insurers.

The initial reinspection program began in 2010, with Citizens sending thousands of inspectors to review the homes of policyholders. About half of all homeowners receive wind-mitigation discounts for hurricane-resistant features on their homes. The reinspection program targeted those features, as inspectors have found that thousands of homeowners did not deserve the discounts they were receiving.

The program has ramped up recently, with more than 200,000 inspections completed in the last year.

In about three in four cases, homeowners have lost their discounts, leading to average premium hikes of more than 30 percent.

Consumer advocates have accused Citizens of using the inspections program to raise rates on homeowners. Citizens denied the charge.

The company also said Friday that it would be doing a full operational review to find areas where it could improve, focusing on customer service, administrative expenses and better communication.

Following public outcry, Citizens announces plans to revamp reinspections ... - MiamiHerald.com

TALLAHASSEE -- Citizens Property Insurance Corp. announced major changes to its home reinspection program Friday, following an outcry from consumers and recent media coverage about a staggering $137 million in premium increases tied to the unpopular program.

Under its new plans, homeowners who lose insurance discounts due to a reinspection can receive a second inspection free of charge and will have new tools to dispute the first inspectors' findings. There will also be a stronger effort to educate homeowners about what they need to prepare for a reinspection.

"In response to policyholder and agent feedback, Citizens is implementing changes to its inspection program to address concerns about the implementation and quality of the program as well as provide better education on the importance of protecting homes against storm damage," said Citizens board chairman Carlos Lacasa at a press conference.

Citizens is still deciding whether or not to apply the changes retroactively. That decision could impact more than 175,000 property owners, who have already seen their premiums go up by an average of $810 after an inspection. Whether those homeowners will be able to reverse the premium hikes is "a question that we need to take a look at," said Barry Gilway, president of Citizens.

The announcement comes less than a week after the Herald/Times Tallahassee Bureau published a series of stories documenting how hundreds of thousands of Floridians have seen premiums soar as the state-run insurer intensifies its plans to raise rates through reinspections and reduce coverage.

Consumer advocates have complained about inspectors who do not check thoroughly for evidence that support the homeowner, often ruling quickly that homes do not qualify for discounts.

On Friday, Gilway acknowledged that several inspectors have failed to adequately check homeowners' attics to see if they were not completely clear of obstruction. Property owners have lost thousands of dollars in discounts because their attics were blocked by boxes or insulation.

"The inspector is not required to wait while you move property that is restricting attic access," a Citizens letter to policyholders reads.

Under the new changes, homeowners will have one year to clear their attic and receive a follow-up inspection, before any premium increases.

Consumer advocates said the changes sounded positive, but more details were needed.

"Citizens has a long way to go to mitigate public opinion, but free second inspections and enhanced dispute resolutions seem like a step in the right direction," said Sean Shaw, founder of Policyholders of Florida. "Without more concrete details, policyholders need to take a trust-but-verify approach."

Created a decade ago to be a safe haven — the so-called "insurer of last resort"— Citizens has ballooned to become the state's largest insurer, with about 1.4 million policies. Most of its risk is concentrated in South Florida and the Tampa Bay area, hazard-prone regions where many homeowners cannot find coverage in the private market. Its actions — including rate increases — affect the entire insurance market, impacting the cost of housing for nearly every Floridian, including those with private insurers.

The initial reinspection program began in 2010, with Citizens sending thousands of inspectors to review the homes of policyholders. About half of all homeowners receive wind-mitigation discounts for hurricane-resistant features on their homes. The reinspection program targeted those features, as inspectors have found that thousands of homeowners did not deserve the discounts they were receiving. The result has been more than $137 million worth of premium increases for homeowners.

The program was ramped up recently, with more than 200,000 inspections completed in the last year. Nearly 90,000 more are yet to be completed. In about three in four cases, homeowners have lost their discounts, leading to average premium hikes of more than 30 percent.

Consumer advocates have accused Citizens of using the inspections program to raise rates on homeowners. Citizens denied the charge, saying that it is simply trying to get accurate information about the homes it insures.

Gov. Rick Scott has been pushing for the state-run insurer to reduce its size and risk, leading to rate hikes and coverage reductions for hundreds of thousands.

The company also said Friday that it would be doing a full operational review to find areas where it could improve, focusing on customer service, administrative expenses and better communication.

"We want to make absolutely sure that Citizens will be run in the most fiscally prudent and efficient manner," said Gilway. "And it's going to require a top-to-bottom approach."

Toluse Olorunnipa can be reached at tolorunnipa@MiamiHerald.com and on Twitter @ToluseO.

Citizens Insurance announces plans to revamp reinspections programs - Bradenton Herald

TALLAHASSEE -- Citizens Property Insurance Corp. announced Friday it is making significant changes to its home reinspection program following an outcry from consumers and recent media coverage over a staggering $137 million in premium increases tied to the initial program.

Under its new plans, homeowners who lose insurance discounts due to a reinspection can receive a second inspection free of charge and will have new tools to dispute first inspectors' findings.

"In response to policyholder and agent feedback, Citizens is implementing changes to its inspection program to address concerns about the implementation and quality of the program as well as provide better education on the importance of protecting homes against storm damage," said Citizens board chairman Carlos Lacasa.

Citizens is still deciding whether to apply the changes retroactively. That decision could impact more than 175,000 property owners, who have lost an average of $800 in credits after their inspections.

The announcement comes less than a week after the Herald/Times Tallahassee Bureau published a series of stories documenting how hundreds of thousands of Floridians have seen premiums soar as the state-run insurer intensifies its plans to raise rates through reinspections and reduce coverage.

Created a decade ago to be a safe haven — the so-called "insurer of last resort"— Citizens has ballooned to become the state's largest insurer, with about 1.4 million policies. Most of its risk is concentrated in South Florida and the Tampa Bay area, hazard-prone regions where many homeowners cannot find coverage in the private market. Its actions — including rate increases — affect the entire insurance market, impacting the cost of housing for nearly every Floridian, including those with private insurers.

The initial reinspection program began in 2010, with Citizens sending thousands of inspectors to review the homes of policyholders. About half of all homeowners receive wind-mitigation discounts for hurricane-resistant features on their homes. The reinspection program targeted those features, as inspectors have found that thousands of homeowners did not deserve the discounts they were receiving.

The program has ramped up recently, with more than 200,000 inspections completed in the last year.

In about three in four cases, homeowners have lost their discounts, leading to average premium hikes of more than 30 percent.

Consumer advocates have accused Citizens of using the inspections program to raise rates on homeowners. Citizens denied the charge.

The company also said Friday that it would be doing a full operational review to find areas where it could improve, focusing on customer service, administrative expenses and better communication.

When the Lender Buys Your Home Insurance, a Call Is in Order - New York Times

By PAUL SULLIVAN

Published: August 17, 2012

FORCE-PLACED insurance isn't high up on most people's list of mortgage worries, not when so many people are in danger of losing their homes. But it's been high up on mine ever since my wife and I had to battle our mortgage provider to remove flood insurance it had bought for us — and we didn't need — for a condominium we owned in Florida.

While we eventually convinced our lender that we had adequate flood coverage, I spent many hours on the phone over many months before I got the insurance removed. I've since spoken to other people who had similar, if not worse, struggles.

So I've been glad that the Consumer Financial Protection Bureau has taken up the cause. It released rules last week that deal with various aspects of mortgage servicing, the next step in its process to make lenders more accountable to borrowers.

There are legitimate reasons for force-placed insurance. It protects a lender's interest in a property when the borrower lets property or hazard insurance lapse. Mortgage contracts contain clauses that stipulate that the borrower needs to maintain proper insurance.

But force-placed insurance has become problematic in two main areas. In some cases, insurance — for hazard, flood or wind coverage — was purchased for homeowners without giving them enough time to buy their own policy, and when the premiums were taken out of their monthly mortgage payment, it put them behind on their loan. (I should mention that the cost of force-placed insurance is almost always higher than the market rate.) In other cases, borrowers were told they had to have coverage for something they did not think they needed and it was purchased for them anyway.

In the worst cases, the cost of force-placed insurance pushed people who were already struggling financially into foreclosure. But even the best cases were not that great: people, like me, who eventually got the insurance removed after months of frustrating calls and repeated faxes of information.

I wrote about the Consumer Financial Protection Bureau's initial proposals on force-placed insurance in April. These include stricter rules on when and how lenders notify borrowers that this insurance is going to be bought for them.

The bureau's goal with the rules is to educate consumers on the costs and coverage limits of force-placed insurance, said Moira Vahey, a spokeswoman. But the homeowners I've talked to say the rules don't go far enough, particularly because they fail to impose penalties large enough to force lenders to be more responsive to consumers.

The consumer agency said it would accept comments until Oct. 9 and would issue the final rules in January.

The homeowners told me they were pleased with the agency's proposal to require lenders to tell consumers how much force-placed insurance would cost them. The bureau suggested that lenders send a letter to consumers stating in bold type what the price of the insurance would be and noting it was "probably more expensive than insurance you can buy yourself." The proposed letter also states that force-placed insurance "may not provide as much coverage as an insurance policy you buy yourself."

But as Brian Penny, a former employee at Balboa, a force-placed insurer owned by Bank of America until last year, who has now become a whistle-blower, noted, the letters could easily be overlooked by consumers if they continue to be mailed in nondescript envelopes.

Ms. Vahey said the bureau had not considered requirements for the envelopes but that was an area open for comment.

The homeowners told me they worried that banks and insurers could still charge whatever they wanted for the force-placed insurance. The proposed rule states that the "charges would have to bear a reasonable relationship to the servicer's cost of providing the service." But a borrower and a lender might have different definitions of what is reasonable.

The proposed letter does not provide a phone number or Web site for help if the lender does not comply.

Ms. Vahey said the form letters were not intended "as much to report violations as to educate the consumers." But she added that the bureau has a supervisory role over the lenders.

To get more ideas about the rules, I called two people who I thought would be at opposite ends of this debate: Mr. Penny, the whistle-blower, and Ed Delgado, chief operating officer of Wingspan Portfolio Advisors, which as a servicer for banks monitors insurance coverage on mortgages and handles foreclosures, short sales and other mortgage matters.

Mr. Penny said the rules should require more disclosures on the relationship between the lenders and the force-placed insurers.

"When you call to complain about your insurance, you're talking to that insurance company," Mr. Penny said. "People don't know that. They think they're complaining to B of A about QBE when they're actually complaining to QBE about QBE." QBE is one of the largest force-placed insurers.

He said he feared that the penalties, as written in the rules, would not be applied. "It's very easy to hide that stuff," he said. "They can make all the rules they want, but I don't see how they can enforce these rules."

On the other side, Mr. Delgado said he thought the rules were stating the obvious. "Some of it just seems to be a reinforcement of common sense — make sure payments are applied, fix your errors," he said.

He suggested requiring the lenders to communicate more with the borrower. Instead of just mailing a letter, he said, it would be better if the lenders called before the insurance policies lapsed. (This is a service his company does not provide, but he said it could.)

"Sending a letter may not always work," Mr. Delgado said. "Making a call to verify residency and then determine the intent to maintain or secure insurance on the property would work better. What if the letter never hit the target? My bias is that communication come from multiple levels."

Mr. Delgado said he recently had to deal with force-placed insurance when he sold his house. But he said he was glad his lender had called him.

"They said I was in breach of agreement on my insurance and they were going to provide insurance," he said. "They were so focused on the lapse of insurance. I said, 'Check out my statement. My balance is zero because I just paid off my loan.' "

More communication certainly can't hurt. But from my experience, it is up to consumers to be vigilant and persistent — no matter how frustrating it is to repeatedly call, e-mail and fax the force-placed insurance company.

Florida Online Home Insurance Tool Now Compares Auto Rates, Too - Insurance Journal

The Florida Office of Insurance Regulation has expanded its online homeowners insurance rate comparison program, Choices, to include the auto insurance.

The program allows consumers to select among three standard risks for statutorily required coverages, or for more comprehensive coverages. After selecting the standard risk that best match their circumstances, consumers may select one of the 67 counties in the state. Consumers will then see a pop-up window ranking the rates of leading automobile insurers in the selected county.

"The foundation of a competitive marketplace is that consumers are educated about insurance products and prices for their particular circumstances," said Florida Insurance Commissioner Kevin McCarty. "The purpose of this shopping comparison tool is to assist consumers in this regard."

Consumers can access the interactive Choices tool through the Office of Insurance Regulation's website.

In early 2011, Gov. Rick Scott quietly pulled the plug on OIR's homeowners insurance rate program that launched in 2007 under former Gov. Charlie Crist. But it was resurrected later in the year and has now been expanded.

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Homeowners insurance makes it tougher to purchase a house in Florida - Live Insurance News

The coverage industry in the state is having a large impact on real estate.

Though buyers are returning to the real estate market as they start to lose their hesitation to buy a property and regain the means with which to do so, but the homeowners insurance prices in Florida are making those same consumers balk.

In some cases, it is leading buyers to decide against a purchase, in others, they are swamped after they've bought.

Depending on the neighborhood in Florida, the homeowners insurance premiums can be prohibitive for many home buyers who would otherwise have made a purchase without any hesitation. The price of the property itself may be acceptable, but sometimes the monthly cost of coverage is even higher than the mortgage payments.

Homeowners insurance is holding back first time and experienced home buyers alike.

One of the primary reasons for this high cost of Florida homeowners insurance is due to the recent changes that Citizens Property Insurance has made to its premiums. The quotes that are now being issued by the state-run insurer are now far higher than what most new home buyers have ready in their budgets. Often, it is causing deals to fall through, or the purchasers are finding out too late that they are now faced with expenses that are far greater than what they can actually afford.

Citizens has made statements to justify its most recent rate hikes, which have followed closely on the heels of other high increases in premiums, as well as in a massive investigation into hurricane proofing efforts that have caused thousands of residents to lose their discounts.

These justifications were primarily that the homeowners insurance company is supposed to be a last resort option and that it is now covering far too many homes. This is causing the private coverage market prices to skyrocket. Furthermore, if things were to continue the way they are now, then a massive "hurricane tax" would be required in the near future if a major storm were to eat through the insurer's cash reserves. Such a tax – which all residents of Florida would be required to pay – would, according to state lenders and the insurer's executives, cause crippling harm to the state's economy.

Insuring Your Home Business - North American Press Syndicate

(NAPSI)—If you have a home business, did you know that most homeowners insurance policies don't protect all your business assets?

Sure, standard homeowners insurance may provide some protection for business equipment, but coverage varies and it may not be enough. In addition, your homeowners policy won't cover your business if a customer or supplier is injured on your property or while using your product. To protect yourself and your home business:

• See if you can add an endorsement to your homeowners policy. Your insurer may offer one that could add property coverage and some limited liability coverage.

• Purchase in-home business insurance policies. Some insurers offer specific in-home business insurance policies with some of the same features as larger commercial policies but with lower policy limits and at a lower premium. For example, if you have to shut down your business because of damage to your house, the in-home policy will cover the income the business loses and ongoing expenses, such as payroll, for up to one year.

• Get a business owners policy. Many insurers offer policies combining property insurance, business interruption service and liability insurance.

Using Your Vehicle For Business?

Think again. Your personal auto insurance policy covers your vehicle for personal use but may not cover business use. All vehicles used primarily to conduct business must be protected with commercial auto insurance, generally a combination of bodily injury, property damage, collision and comprehensive coverage.

Are You Hiring?

Business is booming and you may have just decided to hire. Most states require that you have workers' compensation insurance. And it's likely the most complex insurance coverage, so make sure you check with the state department or work with an insurance agent familiar with your state regulations to determine the best solution for you.

More Is Often Better

Depending on your assets, you may want to consider the additional protection of an umbrella liability policy. It provides extra protection that takes effect when lawsuit-related costs exceed an auto or general liability policy's limits. You can get the coverage you need now and increase your limits as your company grows.

How Do You Choose?

A sound business plan includes insurance coverage that provides the protection you need today, yet can easily expand to grow with the changing needs of your home business. Visit www.wellsfargo.com/insurance or call an agent at (866) 860-3030 to learn more.