Saturday, April 28, 2012

State-Run Citizens Property Insurance Tables Big Rate Hikes - The Ledger

<p>TAMPA | Florida's largest property insurance company backed away Thursday from a plan to allow unlimited rate increases for new customers in the face of criticism from consumer advocates and two elected officials who helped draft the current rate cap.</p><p>The state-run Citizens Property Insurance board of directors voted to study the issue further, leading Sen. Mike Fasano, R-New Port Richey, to declare "the policyholders of the state of Florida can take a bit of a sigh of relief today."</p><p>Board member John Rollins amended his proposal for uncapped rates on new customers after Fasano testified against the plan and Citizens' Chairman Carlos Lacasa read letters from the state's chief financial officer and insurance consumer advocate opposing the idea.</p><p>"My goal is to keep the conversation going, ensure the consumers of the state that we're not going to take a hasty action, or a backdoor action, but allow for the numbers to reveal themselves so we can make a decision," Rollins said after the vote.</p><p>But Rollins and other board members made clear they think Citizens needs higher rates and expect the issue to resurface.</p><p>"It must be that rates are part of the conversation about how to return Citizens to a market of last resort and bring the private market back in," Rollins said.</p><p>"I don't think we can avoid that."</p><p>Prodded by Gov. Rick Scott to shrink Citizens, the company's board has pushed a series of new policies that limit coverage for everything from pool enclosures to condo buildings with short-term rentals. But the plan to uncap rates is the most controversial move to date.</p><p>It is also legally questionable.</p><p>Citizens' lawyer told board members that "a reasonable fresh look" at language in the 2009 law creating the company's 10 percent cap on rate increases could conclude that the cap does not apply to new policies.</p><p>"A new premium for a new policy is not a rate increase; it is a new rate," said lawyer Charles Sumner.</p><p>But Lacasa read a letter from Florida CFO Jeff Atwater, who was president of the Senate when the rate cap was adopted, stating: "the removal of the cap for new business is beyond the scope of legislative intent."</p><p>Florida's Insurance Consumer Advocate Robin Westcott also submitted a letter opposing the plan and Fasano, who was Atwater's second-in-command in the Senate in 2009, appeared in person to voice his opposition.</p><p>There was no scheduled period for public testimony at the meeting, but Fasano asked Lacasa to speak. He was the only person to address the board other than Citizens' staff.</p><p>"People are frustrated, confused and absolutely sick of what they continue to hear and see and read as far what's next on the horizon in regards to their premium," Fasano said.</p><p>Lacasa said after the meeting that he wants Citizens' staff to develop a more detailed analysis of how consumers would be impacted if rates are uncapped.</p><p>Some of Lacasa's concerns: "What would the rates be? Who would be impacted? Is there an over concentration of geographic impact? And options such as a glide path even for these new rates."</p><p>Citizens interim CEO Tom Grady presented a slide Thursday showing Citizens' rates have increased 20 percent since 2009 and company officials think they should have increased another 40 percent during that period.</p><p>But some Citizens board members said any decision on lifting the rate cap should be left to the Legislature.</p><p>"They're the ones who put the glide path in place, and if it needs to be clarified they should be the ones to clarify it," said board member Don Glisson.</p><p>Citizens was created as the insurer of last resort in Florida for homeowners who cannot find coverage anywhere else. It now has more than 1.4 million policies, roughly a quarter of the state's home insurance market.</p><p>Scott and other proponents of boosting Citizens' rates argue that the company has crowded out the private insurance market by artificially suppressing rates, making it difficult for private insurers to compete. But Florida has gone an unprecedented six straight years without a hurricane, allowing private insurers to reap huge sums in premiums.</p><p>Citizens is also in better shape financially than many private insurers, with more than $6 billion in reserves — enough to withstand even a succession of hurricanes similar to those in 2004-05.</p><p>Raising rates is no guarantee that private insurers will return to the state in droves, Fasano said, noting that a recent state law that makes it more attractive for private companies to operate in areas with sinkholes has had little impact.</p><p>Citizens Chief Financial Officer Sharon Binnun said Thursday that more than half of Citizens' policies are never likely to be placed with a private company.</p><p>That means Citizens will continue to be the primary or only option in some parts of the state, and raising rates is likely to discourage new home purchases, Fasano said.</p><p>"You will hurt our economy," Fasano told the board. "Our housing industry in the state is already hurt, this will be the final nail in the housing industry."</p>

Friday, April 27, 2012

10 Ways To Control Your Home Insurance Costs - Forbes

Let's face it, home insurance costs seem to go up every year even as housing prices come down.  But going without insurance is too risky.  So, we grit our teeth and pay the bill each year.  Of course, we could competitively shop the policy every year but that is onerous.   It takes a lot of study to understand the difference between policies.  Often it's easier to stay with the policy that has the appropriate coverage.  And longer-term policyholders can earn discounts for longevity.  Here are 10 ways that you can control your home insurance costs:

Increase deductibles. Insurance isn't meant to cover the small stuff.  Set deductibles as high as you can afford.  For example, a $150,000 house could have a $1500 or 1% deductible.

  1. Make improvements. Install a backup generator, a whole house surge protector, and smoke/CO2 detectors. Refit roof trusses with strapping.
  2. Opt for hip roofs. Hip roofs offer the most slippery shape in high wind settings or storms.  You don't want areas that can catch the wind and are prone to damage.
  3. Locate intelligently. Stay away from flood prone areas.  Look for brick or stone houses in high wind areas and wooden frame houses in earthquake-prone areas.  Locate in communities with professional fire departments.  Have your home inspected before purchase.  Also check the Comprehensive Loss Underwriting Exchange report of your home before purchase to see insurance claim history.
  4. Don't make small claims. Frequent claims can drive up rates.  Don't sweat the small stuff.  Insurance is meant to protect from catastrophic loss.
  5. Reinforce your home. Install storm shutters, reinforce the roof, retrofit older homes for earthquake resistance, and modernize heating, plumbing, electrical to reduce risk of fire and water damage.
  6. Improve home security. Add smoke detectors, burglar alarms, and deadbolts.
  7. Exclude land value. It's unlikely the land beneath your home will be stolen or burnt in a fire.  Insure the value of the home only.
  8. Combine policies with one insurer. Most insurance companies offer discounts for multiple policy households.  Combine home and auto insurance.  Then buy an umbrella liability policy over both to optimize cost.

10.  Eliminate unnecessary coverage. Don't buy coverage you don't need: earthquake coverage is unnecessary in most zones; don't schedule jewelry if it's inexpensive, etc.

Talk to your agent about other discounts.  Sometimes there is a discount for good drivers, or retirees, or people with good credit ratings.

Conversely, be sure you have enough insurance.  Don't be penny-wise and pound-foolish.  Saving a few dollars a year will seem silly if you find out you've skimped on coverage that later costs you thousands.  Be sure to read the policy and ask your agent a lot of questions so you understand what coverage you do and don't have.

Paying attention to your home insurance can ensure that you have the optimal coverage with the right risk/cost balance.  That's smart.

– Steve Odland

State-Run Citizens Property Insurance Tables Big Rate Hikes - The Ledger

<p>TAMPA | Florida's largest property insurance company backed away Thursday from a plan to allow unlimited rate increases for new customers in the face of criticism from consumer advocates and two elected officials who helped draft the current rate cap.</p><p>The state-run Citizens Property Insurance board of directors voted to study the issue further, leading Sen. Mike Fasano, R-New Port Richey, to declare "the policyholders of the state of Florida can take a bit of a sigh of relief today."</p><p>Board member John Rollins amended his proposal for uncapped rates on new customers after Fasano testified against the plan and Citizens' Chairman Carlos Lacasa read letters from the state's chief financial officer and insurance consumer advocate opposing the idea.</p><p>"My goal is to keep the conversation going, ensure the consumers of the state that we're not going to take a hasty action, or a backdoor action, but allow for the numbers to reveal themselves so we can make a decision," Rollins said after the vote.</p><p>But Rollins and other board members made clear they think Citizens needs higher rates and expect the issue to resurface.</p><p>"It must be that rates are part of the conversation about how to return Citizens to a market of last resort and bring the private market back in," Rollins said.</p><p>"I don't think we can avoid that."</p><p>Prodded by Gov. Rick Scott to shrink Citizens, the company's board has pushed a series of new policies that limit coverage for everything from pool enclosures to condo buildings with short-term rentals. But the plan to uncap rates is the most controversial move to date.</p><p>It is also legally questionable.</p><p>Citizens' lawyer told board members that "a reasonable fresh look" at language in the 2009 law creating the company's 10 percent cap on rate increases could conclude that the cap does not apply to new policies.</p><p>"A new premium for a new policy is not a rate increase; it is a new rate," said lawyer Charles Sumner.</p><p>But Lacasa read a letter from Florida CFO Jeff Atwater, who was president of the Senate when the rate cap was adopted, stating: "the removal of the cap for new business is beyond the scope of legislative intent."</p><p>Florida's Insurance Consumer Advocate Robin Westcott also submitted a letter opposing the plan and Fasano, who was Atwater's second-in-command in the Senate in 2009, appeared in person to voice his opposition.</p><p>There was no scheduled period for public testimony at the meeting, but Fasano asked Lacasa to speak. He was the only person to address the board other than Citizens' staff.</p><p>"People are frustrated, confused and absolutely sick of what they continue to hear and see and read as far what's next on the horizon in regards to their premium," Fasano said.</p><p>Lacasa said after the meeting that he wants Citizens' staff to develop a more detailed analysis of how consumers would be impacted if rates are uncapped.</p><p>Some of Lacasa's concerns: "What would the rates be? Who would be impacted? Is there an over concentration of geographic impact? And options such as a glide path even for these new rates."</p><p>Citizens interim CEO Tom Grady presented a slide Thursday showing Citizens' rates have increased 20 percent since 2009 and company officials think they should have increased another 40 percent during that period.</p><p>But some Citizens board members said any decision on lifting the rate cap should be left to the Legislature.</p><p>"They're the ones who put the glide path in place, and if it needs to be clarified they should be the ones to clarify it," said board member Don Glisson.</p><p>Citizens was created as the insurer of last resort in Florida for homeowners who cannot find coverage anywhere else. It now has more than 1.4 million policies, roughly a quarter of the state's home insurance market.</p><p>Scott and other proponents of boosting Citizens' rates argue that the company has crowded out the private insurance market by artificially suppressing rates, making it difficult for private insurers to compete. But Florida has gone an unprecedented six straight years without a hurricane, allowing private insurers to reap huge sums in premiums.</p><p>Citizens is also in better shape financially than many private insurers, with more than $6 billion in reserves — enough to withstand even a succession of hurricanes similar to those in 2004-05.</p><p>Raising rates is no guarantee that private insurers will return to the state in droves, Fasano said, noting that a recent state law that makes it more attractive for private companies to operate in areas with sinkholes has had little impact.</p><p>Citizens Chief Financial Officer Sharon Binnun said Thursday that more than half of Citizens' policies are never likely to be placed with a private company.</p><p>That means Citizens will continue to be the primary or only option in some parts of the state, and raising rates is likely to discourage new home purchases, Fasano said.</p><p>"You will hurt our economy," Fasano told the board. "Our housing industry in the state is already hurt, this will be the final nail in the housing industry."</p>

Thursday, April 26, 2012

Don't let home improvements damage your insurance - This is Hull and East Riding

If you're building a conservatory, extending your home or knocking through a wall to combine two rooms, did you know you could accidentally invalidate your home insurance in the process?

Between planning and comparing quotes for the job, you could be forgiven for forgetting about the insurance implications of the work - or, in fact, for not even realising there were any in the first place.

Well consider this a reminder, as we show you the importance of making sure your home improvements don't damage your insurance.

Before the work starts

Your best defence is to contact your home insurance provider before the work starts. Let it know what you're planning and exactly what work will be carried out on site. If your insurer doesn't mention it, ask in no uncertain terms if you need to increase your buildings and contents insurance for the period of construction. Calls are recorded so this will count as evidence to support you should you ever need to make a claim and encounter problems.

If you're building an extension, you'll need to make a more permanent change to your buildings insurance - because your current policy will be based on the house as it stands.

As well as damage to the bricks and mortar and fixtures and fitting of your home, your buildings insurance covers the cost of an entire rebuild of the property if the worst were to happen and it was destroyed in a fire. Obviously an extension will increase that rebuild value and your policy needs to be reviewed accordingly.

That rebuild value isn't necessarily the same as the market value of the house. This is because it might fetch more or less than the cost of rebuilding depending on where you live and housing market conditions. The Building Cost Information Service can help you get a more accurate rebuild value.

During the work

Depending on the work you're having done, there are likely to be people in your home lugging around building materials, which could damage your possessions, fixtures and fittings.

While the odds of a Three Stooges style plank mishap smashing your 50" LCD TV are low, it could happen. In this case it pays to make sure your contents insurance will cover you, or if not, that you have accidental damage cover which might result in a slight increase to your existing premium.

If the work involves taking out doors or windows for a prolonged period, your home may be temporarily more attractive to thieves and less secure, so you may want to inform your insurer. They may increase your premiums temporarily while the work is being carried out.

On the other side of the coin though, you might also take the work as an opportunity to upgrade your home's security with stronger locks, security lights or alarms and surveillance cameras - in which case you should also tell your insurer about it, because it may bring your premiums down.

Stay safe from the cowboys

For as long as there have been honest tradesmen there have been rogue traders ripping people off.

If an unscrupulous trader was to take your money and leave the job half-finished, or to disappear altogether, your home insurance wouldn't necessarily cover you unless you also have legal cover included.

Legal cover is an optional home insurance extra which pays for any legal costs you may incur if you have to take legal action against rogue traders. Ideally, however, you should take steps to make sure you don't hire a cowboy builder in the first place.

Go with a recommended tradesman - whether it's someone a friend or family member has hired before or someone recommended by a website like ratedpeople.com or jobsorted.com.

These websites allow you to post details of the work you need doing and give you a selection of recommended tradesmen and their quotes for the work.

However you get your quotes, be sure to get at least three separate estimates for the work in writing if possible. This should also be itemised to show how much you'll be charged for materials, labour and VAT.

You may be offered a cheaper quote for cash payment, foregoing VAT - but remember that you'll have no come backs if you later find a problem with the work because there will be no 'paper trail' to the work.

It's sensible to pay with a credit card if possible, because if you did get stung by a rogue trader, you'd be able to claim the lost money back thanks to the Consumer Credit Act and the Consumer Credit Directive.

Under the two pieces of legislation, the credit card issuer is jointly liable with the merchant or service provider if what you paid for turns out to be faulty or doesn't materialise. The combination of these legal protections covers you for purchases worth between £100 and £60,260.

The final, obvious thing to check is that your tradesmen are certified with the relevant trade associations. For example, if the job involves gas works, make sure they are on the Gas Safe register or have NICEIC certification if it's electrical work.

This ensures they have industry-standard training and qualifications, including safety best practices, so you can be sure they'll do the job properly and safely

Tuesday, April 24, 2012

Slash The Cost Of Homeowner's Insurance In 9 Easy Steps - Business Insider

Homeowners insurance is one of the most expensive things we buy and hope we never use.

In 2009 (the last year the information was available) the average homeowners insurance premium was $880, according to the Insurance Information Institute.

But premiums go much higher in some areas.

For example, in my home state of Louisiana, the average premium was $1,430.

While you're forced to pay homeowners insurance, you don't have to pay top dollar. Money Talks News founder Stacy Johnson tells you several ways to save in the video below. Check it out, then read on for even more tips.

Click to play 'How to Save on Home Insurance'

1. Raise your deductible

Raising your deductible is one sure-fire way to lower your monthly homeowners insurance premium. As Stacy put it…

"The more loss you'll pay, the less your insurance will cost. Raising your deductible from $250 to a thousand dollars could slash your premium by 10 to 30 percent. A lot of savings, not a lot of extra risk."

If you have an emergency fund, you can use some of that money to pay your deductible should you ever have to file an insurance claim. (A flood, house fire, or robbery qualifies as an emergency to me.)

If you don't have an emergency fund, check out Resolutions 2012 – 4 Steps to Saving More to learn how to build one. Then call your insurance provider and raise that deductible.

2. Disaster-proof your property

If you upgrade your home, you'll save on your homeowners insurance. Your insurance provider may give you a discount for having weather-resistant features on your house.

For example, my insurance company offers a discount for storm shutters and stronger roofs since I'm in an area prone to high winds and flooding.

But call your insurance provider before spending any money – just to make sure you'll get a discount.

3. Install security features

In 2009, burglary victims (in all structures, including homes) lost an estimated $4.6 billion to property damage and theft, according to the FBI. And as Stacy reported, smoking causes 23,000 fires every year.

Your insurance provider may offer discounts if you install safety features.

For example, the Insurance Information Institute reports that you can save at least 5 percent by installing a security alarm, a deadbolt lock, or a fire extinguisher.

Upgrade to a more advanced security feature – like a security alarm that automatically dials the police – and you could save up to 20 percent.

4. Review your insurance riders

Review any insurance policy riders you have once a year and make sure you still need them. I once carried extra insurance on my jewelry, to the tune of $96 a year. 

I later sold the jewelry, but I forgot about the insurance rider for another year – so I wasted $96 on insurance I didn't need.

5. Ask for discounts

As Stacy mentioned in the video, many discounts are available beyond installing safety features and disaster-proofing. For example…

  • Multi-policy discounts
  • Senior citizen discounts
  • Nonsmoker discounts
  • Claim-free discounts
  • Marital status discounts

The discounts offered vary by provider. Call your insurance agent and ask for the full list.

6. Find a dog-friendly insurer

I'm the proud parent of a 50-pound, full-blooded pit bull. People love to tell me I'll never be able to find homeowners insurance with an "aggressive breed." They're wrong.

If you own a large dog – or a breed labeled as aggressive – you might have a harder time finding homeowners insurance, but you don't have to pay an outrageous premium.

A few providers will approve you at a decent rate after a home check, or if you can provide a vet reference. In my case, an agent visited my home and inspected my dog before quoting a premium.

The charity group Pit Bull Rescue Central has a list of "all breed friendly" insurance providers.

The American Kennel Club also has some helpful links on their Homeowners Insurance Resource Center page.

7. Comparison shop

Just because you got a great deal on homeowners insurance years ago doesn't mean you're getting a great deal today.

Rates can change, and so do situations. Once a year, shop around. You can do that right on the Money Talks News Insurance page – it only takes a few minutes.

And if you do decide to replace your existing policy, make sure the new policy is in place before you drop the old.

8. Don't insure your lot

This may sound obvious, but if you paid $200,000 for your house, you don't need to have $200,000 worth of coverage, because part of the purchase price included the lot your house sits on.

That's not going to burn down or get stolen.

9. Don't be penny wise and pound foolish

While the goal in reviewing your policy is to save a buck or two, don't lose sight of the ultimate goal: protecting your property. Make sure you maintain adequate liability and other coverages at all times.

Double-check to see that your policy provides for replacement coverage, not coverage that will reimburse only depreciated values.

If you're running a business from your home, be aware that without notification (and perhaps a rider at extra expense) the insurance company may refuse business-related claims.

For example, if the UPS driver trips on your front porch while delivering a business-related package and sues, the expense may not be covered by your homeowners policy. When it doubt, ask.

Don't miss: 12 times that being cheap will cost you >

Monday, April 23, 2012

Zander Insurance Partners with Answer Financial to Offer Home and Auto ... - MarketWatch (press release)

NASHVILLE, Tenn., Apr 17, 2012 (BUSINESS WIRE) -- Zander Insurance Group, one of the country's largest independent insurance brokerage agencies, and recognized for its long term sponsorship of the nationally syndicated Dave Ramsey Show, announced today a strategic partnership with Answer Financial to offer home and auto insurance to its customers nationwide. The partnership will make Zander Insurance the only independent agency to provide both online instant quotes and agent-assisted services for a comprehensive array of personal insurance programs, from multiple companies nationwide.

"Our partnership with Answer Financial will give us the ability to access a broad selection of auto and home insurance products on a nationwide basis allowing our customers to compare rates and ultimately save time and money," said Jeffery Zander, President of Zander Insurance. "We are the only agency to offer a wide range of personal insurance products, whether online or through agent interaction which includes term life, disability, identity theft protection, health, and home and auto insurance. This partnership positions us to provide enhanced services for future clients and cultivate stronger relationships with current clients," said Zander.

Currently, the majority of national options are either offered by Direct-Writers that only offer access to one company or other distribution outlets that are limited in the products and services to which their clients have access. The addition of home and auto insurance enables Zander to provide current and future clients a comparative shopping experience sourced from multiple companies which addresses their core personal insurance needs now and into the future.

"Zander Insurance is one of the most respected independent agencies in the country," said Rob Slingerland, CEO, Answer Financial. "Answer Financial will bring its leading home and auto insurance platform to this partnership and provide Zander customers a great opportunity to shop, compare and save on insurance they already are paying for today."

Customers nationwide can receive instant home and auto rates through Zander Insurance's website or through a dedicated call center accessed toll free. Zander Insurance represents only the most reputable and financially stable insurance providers offering an array of policies and programs to meet the specific needs of customers.

To learn more about Zander Insurance's home and auto services, please visit www.Zanderins.com .

About Zander Insurance: Zander Insurance is one of the country's largest independent insurance agency/brokerage and has been serving its customers for over 80 years and four generations. Zander is often recognized by its long standing relationship with Dave Ramsey, almost 15 years, and sponsorship of his nationally syndicated radio program. They work to assist their clients make informed decisions in all areas of insurance planning including Term Life, Disability, ID Theft, Home, Auto, Business, Health and Employee Benefits. The Zander Insurance website is the only site in the country offering instant online comparison quotes for all major personal insurance products, simplifying the search and coverage review process for its clients on a national basis. For more information on Zander Insurance call 800-356-4282, send an email to info@zanderins.com or log on to http://www.zanderinsurance.com

About Answer Financial(R) Inc.: Answer Financial is one of the largest independent personal lines agencies in the nation, providing auto and home insurance policies directly to consumers and through a broad network of marketing partners. Answer Financial serves the growing segment of self-directed consumers searching for the best way to save money on insurance by providing one easy place to Shop, Compare, and Buy Insurance. By leveraging technology and partnerships with top-rated insurers including sister company Esurance, Answer Financial can provide real-time comparison rates for virtually every consumer. Customers can purchase online or over the phone with the guidance of an insurance expert. www.answerfinancial.com

SOURCE: Zander Insurance Group


  
  
          
          For Zander Insurance Group 
          Margie Quina, 504-432-2209 
          memopublicrelations@gmail.com
          
  
  
  

Copyright Business Wire 2012

Saturday, April 21, 2012

Province urged to insure the poor - Winnipeg Free Press

Winnipeg Free Press - PRINT EDITION

The head of the city's firefighters' union says new PST revenue should be earmarked for an insurance program for low-income renters.

That's the group devastated by a series of house and apartment fires over the winter, when entire blocks burned, leaving poor tenants with no resources to set up new households.

Higher taxes -- good policy?

Starting July 1, the province will charge provincial sales tax on a host of insurance premiums that were previously exempt from PST. Here's the fine print.

Property insurance

It's hard to know what the average Winnipegger will pay when PST is applied to home insurance policies because rate calculations are complex, based on a home's location, size and discounts for things such as alarm systems. As an example, though, a modest 1,000-square-foot home in St. James with a finished basement and no garage might cost $600 to $800 a year to insure. The owner of such a home might expect to pay an extra $40 or $55 a year in PST.

Group life insurance

Many companies, though not all, cover the cost of group life insurance programs. For a medium-sized company that pays $140,000 a year in group life insurance premiums, the extra charge would be just under $10,000 a year. Federal sales tax isn't charged on group life insurance premiums.

Trip cancellation and baggage insurance

The cost for trip cancellation insurance can vary significantly. If you're a senior taking a big, multi-week holiday, you might pay $700 for trip insurance just in case something goes wrong. The PST will add another $50 to that. If you are just taking a weekend jaunt to Vancouver, the extra PST might only come to a couple of dollars. But, as Daryl Silver, president of Continental Travel, points out, vacations are already one of the most heavily taxed purchases Canadians make.

Just before Christmas, United Fire Fighters of Winnipeg president Alex Forrest pledged to lobby the province, landlords and the insurance industry to solve the problem.

The province announced in Tuesday's budget it would start charging PST on a batch of insurance services, including home and tenant insurance. Taxing tenant insurance won't encourage more low-income renters to sign up, but Forrest said the move could offer a new solution.

"Can we have a small slice of this revenue for people who really can't afford basic renter's insurance?" asked Forrest, who has spoken to cabinet ministers about the issue over the last few months. "Even $9 a month might be a hardship for some people. Can we subsidize some of that?"

The new PST charges will bring in nearly twice as much revenue as the hike to the gasoline tax, which earned much the attention during this week's budget debate. In addition to property insurance premiums, provincial sales tax will be levied on group life insurance premiums, a move that might not sit well with employers and employees.

"Applying the provincial sales tax to group life insurance premiums will of course increase costs for plan sponsors and, in many cases, employees, and will likely not be welcomed," said Marlene Klassen, Great-West Life's assistant vice-president for communication.

The province said Ontario has charged PST on some insurance premiums since 1994, and Manitoba is simply following suit.

PST won't be added to premiums paid for health or accident insurance, Autopac, individual life insurance or crop insurance.

The province says the move will raise an extra $85.5 million.

maryagnes.welch@freepress.mb.ca

Republished from the Winnipeg Free Press print edition April 21, 2012 B2

REPUTABLE HOME INSURANCE FOR YOUR PROPERTY IN PORTUGAL - The Leader Newspaper Online

Features » Finance and Money » Insurance

REPUTABLE HOME INSURANCE FOR YOUR PROPERTY IN PORTUGAL

Print | Send to a friend

Jack Pot / 2012-04-21 15:04:09

Portugal Home Insurance | Home Insurance for Portugal
Home Insurance | Car and Motor Insurance | Health Insurance
Travel Insurance | Medical Insurance | Insurance

There are few things more valuable in life than our own personal space, our belongings or the home we make for ourselves and our families. 

The house in which we live is often the most valuable commodity in our lives and the contents within are frequently not just expensive, but of great personal value, so quite rightly, when we are looking for home insurance, there are many things to consider – from the price and features of the policy to the quality of service that comes with it.

Here at "The Leader" we have supported our customers and our public since 2004. During that time we have featured many stories, and not all of them have been 'good news'. Unfortunately many of them have involved robberies and burglaries, always amplifying the need to correctly protect your home.

We have written so many 'hard luck stories in that time that we finally decided that we must try to do something rather more about it. That is just one reason why we have sought out especially competitive Portugese Home Insurance policies, and why we have ensured they are placed with a company that you can trust, one that can give you the peace of mind that comes with having the right Home Insurance cover for your property in Portugal at the right price.

PORTUGAL HOME INSURANCE HOTLINE
+351 308 801 775

It is easy to think that wicked things always happen to other people and not to ourselves, but the facts suggest that a lack of appropriate insurance cover on our homes is a risk that we cannot afford to take. Unfortunately one in three of us will suffer a burglary at some point in our lives, yet over a quarter of all households are not protected by any form of Home or Contents Insurance.

Whilst there are people who simply forget to take out the necessary cover, many others fail to do so because they consider it to be an unnecessary expense. We have therefore made a point of ensuring that any Home Insurance policy that we recommend is both affordable and provides excellent value for money.  As an example, a quotation with our "Classic Home Insurance" policy – Buildings 80,000Euros and Contents 20,000Euros will cost you from as little as 163.00Euros per year. 

The Portugese home insurance service doesn't stop there either. Once happy with the price, clients can be assured that they will be looked after at every stage, from the initial telephone call, in the event of claims or in any other matter, by English speaking agents. You could say 'a total service in your own language, from the very first telephone call'. 

So if you want to see if you want to save money on your home insurance and get yourself complete peace of mind, call us now on +351 308 801 775. Just think of all the heartache that such a small sum would avoid!

CLICK HERE FOR YOUR FREE, NO OBLIGATION
HOME INSURANCE QUOTATION

Searching for your dream Spanish Property? For 1000's of Spanish property bargains, visit www.theleader.info/spanish-property/ and search for your dream home!

Related Articles
The Leader Newspaper, 24 October 2011, REPUTABLE CAR AND MOTOR INSURANCE IN SPAIN
The Leader Newspaper, 09 February 2011, OBTAIN YOUR SPANISH HOME INSURANCE QUOTATION ONLINE
The Leader Newspaper, 23 July 2011, CLASSIC HOME INSURANCE FOR SPAIN, PORTUGAL, GIBRALTAR, AND GREECE
The Leader Newspaper, 23 July 2011, GOLD ALL-RISK HOME INSURANCE FOR SPAIN, PORTUGAL, GIBRALTAR, AND GREECE
The Leader Newspaper, 26 July 2011, HOME INSURANCE FOR YOUR PROPERTY IN SPAIN, GIBRALTAR, GREECE AND PORTUGAL
Squidoo.com, SPANISH HOME INSURANCE

Home Insurance is offered in conjunction with Hercules Limited. Suite 2C Centre Plaza. Horse Barrack Lane. Gibraltar. Hercules Limited is a company registered in Gibraltar no. 102184. Licensed by the Gibraltar Financial Services Commission FSC1098B. Authorised to carry out General Insurance in Spain, Portugal, UK and Greece in Freedom to Provide Services.

Friday, April 20, 2012

Home-Sharing? Don't Ignore Liability - New York Times

In the last month or so, I've written one column raising questions about how your insurance company might feel about you putting your car up for rent by the hour and another about the fallout for a customer of a company called RelayRides after someone who rented her car died behind the wheel and injured four others in the process.

Both times, I immediately heard from readers worried about the insurance questions involving one of the biggest players in the land of sharing: Airbnb, which allows you to rent out your whole home (or just a room or couch) for however many nights you want.

How, people asked, would their homeowner's, or renter's, insurance company react if they told the truth about their rental habit? Would they be covered if a paying guest was injured, or worse?

The answer, as it often is with insurance, is that it depends. But most insurance companies have clauses in their standard policies that make it pretty clear that they can deny a claim related to commercial activity going on in your home.

And who can blame them? They want to know who's stumbling around half-awake at 2 a.m., and if it's dozens or hundreds of people each year, they're probably going to want you to pay more for protection from lawsuits.

That said, it would be a shame to let the insurance industry ruin everything here. After all, this is the perfect economic moment for a service like this to emerge. Young people with student loan debt can make extra money renting out spare bedrooms or couches. Others short on retirement savings can take in guests, too. And travelers get to live like a local for a while and may pay less than they would at a hotel.

So it comes down to this: How much risk are you willing to shoulder of a legal judgment adding to your money woes? And shouldn't Airbnb and insurance companies be able to sort all this out, given that people have been renting out second homes and taking in roommates for decades?

Let's address the odds first. In the four years since Airbnb opened for business, it says it has not heard about a single liability claim or judgment over $10,000, or even an attempt at one. In that time, the company says that it has booked over five million nights of lodging.

HomeAway, which has been in business since 2005, is also unaware of any sizable claims or judgments.

Given the number of people using these services, it's only a matter of time until something terrible happens, as it did relatively quickly in the case of RelayRides. It's hard to predict, however, how often something awful might occur. Actuarial data, if any exists, probably isn't on point since it doesn't involve people renting rooms in their homes each night, which now happens pretty often.

Still, when people are in an unfamiliar place with unfamiliar systems, bad things can happen. Last month, my family and I rented a lovely house through Airbnb with an old-fashioned wall heater in the bathroom, and the thing was white hot. I couldn't help imagining how horrible it would be if a naked toddler waddled in and leaned against it.

So what would Airbnb do if something like that did happen and somebody filed a lawsuit? In the wake of a particularly horrific incident, where guests ransacked a woman's home and searched every inch for things to steal or soil, the company has created a limited $50,000 guarantee. If a home is set upon by deliberately reckless guests again, the company said it would cut a check to the host for most stolen or damaged belongings. But Airbnb does not cover accidental damage. Moreover, its guarantee is not an actual insurance policy that compensates people for injuries, though that hasn't stopped at least one confused publication from referring to it as a "liability policy." I can only imagine what sort of incorrect assumptions the company's customers make.

As for a host's liability, Airbnb is crystal clear on its Web site, albeit in its terms and conditions where many people won't read it. There, it states that "Airbnb is not responsible for and disclaims any and all liability related to any and all listings and accommodation."

So there you have it. If someone gets hurt, don't go crying to Airbnb. To potential hosts, the company offers this advice: "Airbnb recommends that hosts obtain appropriate insurance for their accommodations. Please review any insurance policy that you may have for your accommodation carefully, and in particular please make sure that you are familiar with and understand any exclusions to, and any deductibles that may apply for, such insurance policy, including, but not limited to, whether or not your insurance policy will cover the actions or inactions of guests (and the individuals the guest invites to the accommodation, if applicable) while at your accommodation."

HomeAway takes a similar approach with its hosts, whom it refers to as advertisers. "HomeAway requires that advertisers know the requirements in their specific location but could not undertake the project to know the specific insurance requirements in every location," Carl Shepherd, the co-founder, said in an e-mailed statement.

Thursday, April 19, 2012

10 tips for cheaper home insurance - MSN Money

This post is from Angela Colley at partner site Money Talks News.

Money Talks News on MSN MoneyHomeowners insurance is one of the most expensive things we pay for that we hope to never use.

In 2009 (the last year the information was available) the average homeowners insurance premium was $880, according to the Insurance Information Institute. But premiums go much higher in some areas. For example, in my home state of Louisiana the average premium was $1,430.

While you're forced to pay homeowners insurance, you don't have to pay top dollar.

Watch the short video below for tips from Money Talks News founder Stacy Johnson, then read on for more. 

Now let's fill out those tips and add a few more:

1. Raise your deductible

Raising your deductible is one surefire way to lower your monthly homeowners insurance premium. As Stacy put it:

"The more loss you'll pay, the less your insurance will cost. Raising your deductible from $250 to a thousand dollars could slash your premium by 10 to 30 percent. A lot of savings, not a lot of extra risk."

If you have an emergency fund, you can use some of that money to pay your deductible should you ever have to file an insurance claim. (A flood, house fire or robbery qualifies as an emergency to me.)

If you don't have an emergency fund, check out 4 Steps to Saving More to learn how to build one. Then call your insurance provider and raise that deductible.

2. Disaster-proof your property

If you upgrade your home, you might save on homeowners insurance. For example, your provider may give you a discount for having weather-resistant features: My company offers a discount for storm shutters and stronger roofs since I'm in an area prone to high winds and flooding.

Call your insurance provider before spending any money, and ask what improvements will result in a lower premium. 

3. Install security features

In 2009, burglary victims (in all structures, including homes) lost an estimated $4.6 billion to property damage and theft, according to the FBI. And as Stacy reported, smoking causes 23,000 fires every year.

Your insurance provider may offer discounts if you install safety features. For example, the Insurance Information Institute reports that you can save at least 5% by adding a security alarm, a deadbolt lock or a fire extinguisher. Upgrade to a more advanced security feature – like a security alarm that automatically dials the police – and you could save up to 20%.

4. Review your insurance riders

Periodically review any insurance policy riders -- basically, extra coverages at added cost -- and make sure you still need them. I once carried extra insurance on my jewelry, to the tune of $96 a year. I later sold the jewelry but forgot about the rider for another year, thus wasting $96. 

5. Ask for discounts

As Stacy mentioned in the video, many discounts are available beyond installing safety features and disaster-proofing. For example:

  • Multi-policy discounts
  • Senior citizen discounts
  • Nonsmoker discounts
  • Claim-free discounts
  • Marital status discounts

The discounts offered vary by provider. Call your company and ask for the full list.

6. Find a dog-friendly insurer

I'm the proud parent of a 50-pound, full-blooded pit bull. People love to tell me I'll never be able to find homeowners insurance with an "aggressive breed." They're wrong.

If you own a large dog -- or a breed labeled as aggressive -- you might have a harder time finding homeowners insurance, but you don't have to pay an outrageous premium. A few providers will approve you at a decent rate after a home check, or if you can provide a vet reference. In my case, an agent visited my home and checked out my dog before quoting a premium.

The charity group Pit Bull Rescue Central has a list of "all breed-friendly" insurance providers. The American Kennel Club also has some helpful links on its Homeowners Insurance Resource Center page.

7. Shop around

Just because you got a great deal on homeowners insurance years ago doesn't mean you're getting a great deal today. Rates can change, and so do situations. Once a year, shop around. You can do that right on the Money Talks News Insurance page -- it  takes only a few minutes. And if you do decide to replace your existing policy, make sure the new policy is in place before you drop the old.

8. Don't insure your lot

This may sound obvious, but if you paid $200,000 for your house, you don't need to have $200,000 worth of coverage, because part of the purchase price included the lot your house sits on. It's not going to burn down or get stolen.

9. Inventory your possessions

One of the silliest things people do is pay a lot of money to insure their stuff, then fail to have an inventory when they lose it all. No matter how nice your insurance company is, it's not going to pay to replace things you can't remember or prove you had.  And nobody can remember every single item in the house, from dishes to socks. 

If you don't follow any other advice in this article, at least do this: Take your cellphone or other camera and walk around your house making a video of everything you have. Open drawers and closets -- get it all. Then send that video to a faraway friend. If disaster strikes, that will be the smartest hour you ever spent.  

10. Don't be penny-wise and pound-foolish

While the goal in reviewing insurance is to save a buck or two, don't lose sight of the ultimate goal: protecting your property. Make sure you maintain adequate liability and other coverages at all times. Double-check to see that your policy provides for replacement coverage, not coverage that will reimburse only depreciated values.

If you're running a business from your home, be aware that without notification (and perhaps a rider at extra expense) the insurance company may refuse business-related claims. For example, if the UPS driver trips on your front porch while delivering a business-related package and sues, the expense may not be covered by your homeowners policy. When in doubt, ask.

More on Money Talks News and MSN Money:

Monday, April 16, 2012

Ensure Your Digital Downloads are Insured - MarketWatch (press release)

CHESTER, England, April 16, 2012 /PRNewswire via COMTEX/ -- Levels of cover will vary between providers, says MoneySupermarket.com

With millions of Brits owning the latest laptop, smartphone, digital music player or tablet computer, MoneySupermarket.com is warning UK gadget lovers to ensure their home contents insurance covers not just their devices but their digital downloads and software too.

Analysis from Britain's number one comparison site reveals the cover offered for digital downloads varies between home insurance policies. For example, the maximum level of cover for digital content is £500 with home contents from AXA Insurance, while LV= and Direct Line both provide cover up to £1,000, and Hiscox covering up to £2,500 (per incident). Other home insurers however, offer no cover at all for digital downloads, despite the rising popularity of digital content in the UK (see notes to editors).

The research also found some insurers make distinctions between covering digital downloads and software stored on home entertainment equipment and computers compared with how they cover data downloaded on mobile phones. It's important to be aware of any differences should you need to make a claim.

Peter Harrison, insurance expert at MoneySupermarket, said: "Gadget-lovers are spoilt for choice, with the array of laptops, smartphones, tablets and multimedia home entertainment systems on offer. Buying one or multiple devices can be costly, and users won't think twice about taking insurance to cover the cost of losing or breaking these high value items. However, I'm sure many people don't consider protecting the content on these devices; the cost of downloading antivirus software, photo editing suites and other programmes soon adds up and it's important to have adequate insurance should the device be damaged, broken or stolen. It's easy to overlook the value of digital downloads and computer software as they are out of sight and potentially out of mind.

"I'd advise homeowners to be sure they have sufficient protection against loss or theft of digital downloads. Check the details of your home contents insurance to see if you have cover in place and if you are unsure after reading through your policy documents, speak to your insurer to clarify if you do have cover and to what extent. It's worth spending some time to value your virtual content to ensure you have adequate cover for all your digital downloads as the upper limits on many policies can be modest. Where possible, keep copies of invoices or bank statements as proof of purchase in case you need to make a claim."

Notes to editors:

Home contents insurance - Digital downloads cover policy details:


 
 
         
             Provider         Digital Content Cover
             AXA                    Up to GBP500
             Barclays             No Cover Provided
             Halifax              No Cover Provided
             Hiscox                Up to GBP2,500
             Lloyds TSB           No Cover Provided
             LV=                   Up to GBP1,000
             Post Office          No Cover Provided
             The AA               No Cover Provided
             Direct Line           Up to GBP1,000
         
         
 
 
 

 
 
         
             Provider               Digital Downloads
         
             LV=            LV= will pay up to GBP1,000 for loss or
                          damage to information that you have bought
                            and stored on your home entertainment
                           equipment as a result of: fire, water or
                             leaking oil, theft, storm or flood,
                              subsidence or heave, vandalism or
                             malicious damage, impact by animal,
                            falling tree or branch, road vehicle,
                          train aircraft or other flying objects.
         
             Hiscox       Up to GBP2,500 in total for each incident.
         
             AXA           AXA will pay for any one claim for the
                            cost of replacing information lost or
                          damaged that you have purchased and stored
                             on your home entertainment equipment
                                    and/or mobile phones.
         
             Direct Line  Direct Line will pay the cost of replacing
                             information that you have bought and
                              stored on your home entertainment
                           equipment or mobile phone. The most that
                          will be paid for any one claim is GBP1,000
         
         
 
 
 

Sourced by MoneySupermarket.com 05.04.12

MoneySupermarket.com's customer commitment

No other site compares more prices or products

We are independent so only find the best deals for you

The price you see is the price you pay - you don't need to go direct and you won't get a better deal doing so

Your details are safe with us and we won't sell them to anybody

MoneySupermarket.com compares (at 29th March 2012)

98 car insurance providers and 81 home insurance providers

11 broadband providers and 18 energy providers

31 unsecured loan and 5 secured loan providers

62 mortgage lenders and 28 credit card providers

67 savings providers and 37 current account providers.

Over 1,750,000 mobile phone deals

We promise to be clear and impartial

All the products in our full search results tables are displayed in a completely unbiased manner.

We don't add fees or commissions on to the prices we compare.

There may be times when another site compares more companies than us on a particular product, perhaps because of market changes or technical issues. You'll be able to see this and know we are working hard to fix it.

We promise to be trustworthy

We never use your data to make unwanted sales calls or send you spam.

We never pass your personal information to third parties unless you give us permission to do so.

Even if you choose to receive additional information from us, you can opt out at any time.

We promise to be supportive.

You can use our community forum to get information and help from other customers.

If you need further help or support, you can contact our sales advisors or customer services agents.

For further information, please contact: Nicki Parry PR Officer +44(0)1244-370318 nicki.parry@moneysupermarket.com

SOURCE moneysupermarket.com

Copyright (C) 2012 PR Newswire. All rights reserved

High Net Worth Insurance-Talk to the Professional Brokers - MarketWatch (press release)

KENT, UNITED KINGDOM, Apr 09, 2012 (MARKETWIRE via COMTEX) -- As banks come under fire for the mis-selling of insurance to consumers and small businesses, professional brokers like Flint Insurance wait in the wings to help people seeking advice on high net worth protection.

Over 2.2 million complaints were made in 2011 regarding insurance, according to a recent statement by the Financial Services Authority (FSA). That equates to over 12,000 complaints per day. As the mis-selling of insurance becomes even more well documented, distrust for the major high street banks is spreading nationwide.

The payment protection insurance (PPI) scandal dominates the headlines as banks have been accused of 'bullying' consumers into attaching the insurance product to mortgage deals or loans.

Meanwhile, Flint Insurance have continued to broker products like high net worth insurance (HNW) for customers and clients who actively opt to invest into the protection. High net worth insurance is designed to protect customers living in high value homes and those possessing high value assets. The cover is not mandatory but is available for HNW individuals whose regular home insurance fails to provide adequate protection.

Flint Insurance work with customers to determine an ideal insurance package, based on individual circumstances, before broking an affordable quote on their behalf. Bringing more than 30 years of experience to the table, it is the professional brokers like Flint Insurance that ought to be the first port-of-call for people assessing their insurance options.

A spokesperson for Flint Insurance commented:

'We understand that the world of insurance can be a little overwhelming at times. As an independent broker, we are here to help customers with any insurance concerns and ultimately, we want to secure a deal for the right price - transparently guiding the customer through the process every step of the way.'

Whereas PPI insurance complaints accounted for 56 per cent of insurance grievances in 2011, that still means approximately 1.2 million cases regarding different insurance products were made. Thankfully, Flint Insurance broker deals for customers seeking all kinds of financial protection - including commercial insurance.

So speaking to insurance professionals like those at Flint Insurance is advised for both small businesses and individual customers. To find out more about the broker visit www.flintinsurance.co.uk .

About Flint Insurance

Flint Insurance is an independent insurance broker. With over 30 years' experience in the trade, they can offer a range of cover for businesses including specialist HGV insurance cover throughout the UK. By using a panel of over 35 insurers, they can provide the most appropriate and cost-effective cover for their clients.


 
 
         
         Contacts:
         HGV Insurance Public Relations - Flint Insurance
         Dave Stoneman
         Kent, United Kingdom
         0208 309 5000
         Davestoneman@flintinsurance.co.uk
  
 www.flintinsurance.co.uk            
         
         
 
 
 

SOURCE: Flint Insurance


 
 
         mailto:Davestoneman@flintinsurance.co.uk
  
 http://www.flintinsurance.co.uk            
 
 
 

Copyright 2012 Marketwire, Inc., All rights reserved.

PURE Offers Property-Casualty Insurance Coverage and Premium Credits for ... - MarketWatch (press release)

WHITE PLAINS, N.Y., April 10, 2012 /PRNewswire via COMTEX/ -- Privilege Underwriters Reciprocal Exchange (PURE) today announced the expansion of its customized property and casualty insurance coverage to owners of well-built, high-value homes in Mississippi.

A Smart New Option for Mississippi's High Net Worth FamiliesPURE offers a suite of comprehensive insurance solutions designed for successful individuals and families with sophisticated needs. As a specialist insurer, PURE's coverage is often broader than that offered by standard carriers. And, as a policyholder-owned company that emphasizes alignment, transparency and conflict-free service for members over short-term profits for shareholders, PURE has been able to deliver specialist quality for less. Since 2010, members have reported average savings of more than 25% on their annual insurance premiums.

Rewarding Windstorm MitigationAs a proud member of the Insurance Institute for Building and Home Safety, PURE continues to advocate for improvements in hurricane mitigation. "As part of our efforts to encourage quality construction and adherence to the most recent building codes, PURE offers significant premium credits to families who mitigate their homes against losses," said Ross Buchmueller, President and Chief Executive Officer of PURE. "We applaud efforts by the Mississippi House to require all insurance providers, come July 2013, to offer premium credits for hurricane mitigation, and want to emphasize that responsible owners of hardened, well-built homes need not wait until next summer to realize savings on their premiums."

In addition to offering generous discounts for well-mitigated homes, including those built with reinforced concrete roofs, asphalt shingles and impact glass and shutters, PURE assists its members with the prevention of losses. Following a major claim, PURE's High Value Homeowners policy covers the cost of repairing or replacing damaged property and, in some cases, will contribute up to $2,500 to the cost of preventing a similar loss from re-occurring. Over the past year, PURE has facilitated contributions for alarm systems, lightning suppression devices, back-up generators and dozens of other remedies to help PURE members control the long-term cost of risk.

Community TiesPURE is proud to provide insurance solutions through a select group of trusted, qualified ambassadors that cater to the high net worth community. Prospective PURE members can visit pureinsurance.com/agents to locate an appointed agent in their area.

About PUREFor promotional purposes, PURE refers to the members of the PURE Group of Insurance Companies, "the PURE Group". With nearly $100 million of surplus capital, the PURE Group is rated "A-" (Excellent) by A.M. Best Company. Insurance coverage is underwritten through Privilege Underwriters Reciprocal Exchange, a Florida-domiciled reciprocal insurance exchange and member of the PURE Group. PURE provides coverage for high-value homes, automobiles, jewelry, art, personal liability and watercraft to more than 13,000 successful individuals and families in 34 markets across the U.S. In any year when premiums earned by PURE exceed the cost of all policies (including losses, expenses and reinsurance costs), PURE commits to allocate the balance to Subscriber Savings Accounts (SSAs) held in the name of each member. In 2010, PURE allocated $1,000,000 of surplus growth to Subscriber Savings Accounts. For more information, visit www.pureinsurance.com .

SOURCE PURE Insurance

Copyright (C) 2012 PR Newswire. All rights reserved

Understanding risk when it comes to insurance - The Daily Advertiser

The typical definition of risk is that it is the uncertainty of injury or loss. Since risk is uncertain, many people insure against it. That is the reason for life and property insurance. However, people often believe an event is covered by their insurance when, in truth, it is not. Getting angry with the insurance company is not helpful. It is better to read the policy before a catastrophe happens than to find out after.

With insurable risk, the loss must be predictable. Is it possible for a hurricane to blow down the house? Is there a chance of theft? Could someone get injured by a homeowner's negligence? Although a single homeowner may never have to worry about any of these events occurring, it is reasonable that some homeowner in the vicinity could sustain a loss as a result of the unexpected happening. Insurance companies determine the statistical possibility of one of these events happening and then determine, actuarially, the cost of providing compensation to offset the loss. The premium paid reflects the percentage chance of an event happening in a particular area and the predictability of the outcome.

Insurable interest must be present. A person cannot insure property that he/she does not own. If a person will not suffer a loss should the property be destroyed or damaged, then no insurable loss exists and the insurance company will not issue a policy for protection.

The loss must be unexpected. If it is known with certainty that a person's property is going to be underwater due to flooding and the flooding is imminent, then the loss is not unexpected. If a person sets fire to his/her home, the loss is not unexpected. Insurance companies only issue policies as protection against the unknown. It is one reason that homeowner's insurance does not cover hurricane damage if the hurricane is within a certain distance of the shore. Any loss incurred would not be unexpected. Homeowner's insurance must be obtained while the hurricane is far away from dry land.

Any loss incurred must be definite in scope. Policies are written to replace what was damaged. Sentimental attachment, though real, does not carry a dollar amount for replacement. All an insurance company can do is provide the value of the item in today's dollars. Although it is often difficult to determine a dollar value on family heirlooms, the insurance company will do its best to provide a value. There are guidelines that insurance companies adhere to when factoring replacement costs.

In examining which items should be insured, it is best to visit with the insurance agent and understand all of the aspects of the policy being purchased. Arguing with the agent after the fact serves no purpose. One other word of caution is to read the policy right after it is received. Should there be any questions or items that need clarification, it is best to get that done right away. Finding out what is covered after a catastrophe may mean not getting compensated for the loss.

Mary Fox Luquette, MBA, CLU, ChFC is a faculty member in the BI Moody III College of Business at the University of Louisiana. Her column appears in The Daily Advertiser weekly. Have questions about this article or personal finance? Email news@theadvertiser.com.

Sunday, April 15, 2012

Umbrella insurance policies can guarantee you won't be wiped out financially ... - The Republic

Chances are you won't be sued for an automobile crash or an accident at your home that costs more than your liability insurance policy is willing to pay. But there is a type of insurance that can guarantee you won't be wiped out financially if that should happen.

Umbrella insurance policies, which offer additional liability insurance for claims exceeding your existing automobile or homeowner's insurance policies, are most commonly bought by wealthy individuals with substantial assets to protect.

But not-so-wealthy people also can benefit from the extra coverage if they own a home or condominium with a pool or trampoline, if they own a dog or if they have teenage drivers.

"If you own a home or condominium, it's definitely worth the time to look into getting one of these policies," said Nick Cummings, an insurance agent at Harrington Insurance Agency in Brockton, Mass.

Because a personal umbrella policy goes into effect after the underlying coverage is exhausted, certain limits usually must be met in order to purchase the extra coverage. Most companies want policyholders to have at least $250,000 in liability insurance on an auto policy and $300,000 in liability insurance on a homeowners' policy before authorizing an umbrella liability policy for $1 million in additional coverage.

Randy Rohrbaugh, deputy director of the Pennsylvania Department of Insurance, said consumers should analyze their personal assets to decide how much insurance they need and whether an umbrella insurance policy could suit them.

"If you don't have significant wealth, the odds of you being sued for damages beyond your wealth are unlikely," he said. "Even in the case of having a judgment against you, it's like squeezing blood out of a turnip."

"People used to think those individuals with a ton of assets or money were the ones who should have personal liability umbrella policies," Phillips said. "But because of how circumstances have evolved even a typical family getting into a two-vehicle auto accident with multiple passengers could be faced with a staggering liability."

Umbrella insurance is sold in $1 million increments and costs on average between $150 to $300 a year for the first $1 million in additional coverage. The next million will typically cost about $75 annually and about $50 for every million after that.

Some companies, however, might not want to write personal liability umbrella policies for public figures, politicians, police officers and, in some cases, even leaders of civic organizations, Cummings said.

"They could be sued for slander," he said, giving an example of the risks public figures present.

With auto and homeowners policies, the insurance agent who writes the policy has binding authority. But with umbrella policies, the completed application must be submitted to the company for approval.

Dave Phillips, a spokesman for State Farm Insurance Co. in Concordville, Pa., said in an increasingly litigious society where juries are awarding judgments in the millions, umbrella insurance policies are increasingly necessary.

"People used to think those individuals with a ton of assets or money were the ones who should have personal liability umbrella policies," Phillips said. "But because of how circumstances have evolved even a typical family getting into a two-vehicle auto accident with multiple passengers could be faced with a staggering liability."

The same holds true with children drivers, he said. The parent could inherit a liability. Damages could exceed the limits on a homeowners policy if a contractor is hurt on the property or there is a slip and fall from a guest at the home, he added.

Consumers are starting to realize that "their personal assets are at risk," he said.

(Contact Tim Grant at tgrant(at)post-gazette.com.)

(Distributed by Scripps Howard News Service, http://www.scrippsnews.com.)

How to use title insurance to protect against an old lien - Chicago Tribune

Q: I purchased land in 2003 and obtained a title insurance policy from one of the most prominent title insurance companies in the country. Additional title searches and policies were issued when I obtained a construction loan and a loan modification in 2005.

We decided to refinance our loan and the fourth title search by the bank found a lien of almost $10,000 from 1999. It appears the lien is still good. I contacted the title insurance company, and they would do nothing to help us unless the lien holder files to foreclose on the property. If they file to foreclose, then they will pay the lien. They want to do the refinance with me getting a mortgage title insurance policy to protect the bank.

What should I do? Should I just pay the lien that is not my fault or try to get the title insurance company to pay it off?

A: We think you need to understand title insurance before you decide to pay off the $10,000 lien.

When you purchase real estate and obtain a loan to purchase the property, you may have to pay for two title insurance policies: one policy to protect you and one policy to protect your lender. In some parts of the country, the seller of the property you purchase may pay for the policy that protects you, but in many other parts you pay for both policies.

Assuming you obtained a title insurance policy that protects you from title claims, the title company has an obligation to honor the terms of the policy. A title company will issue you an owner's title insurance policy that will protect you from a fraudulent transfer of a deed to you, from title defects that are not disclosed to you in the policy and from various other matters that existed at the time the policy was issued. Real estate title insurance companies generally do not insure homeowners from matters that arise after the date of the issuance of the policy.

Fortunately, it seems that the lien occurred well before you purchased your home. From your letter it seems that the title insurance company failed to pick up the lien and delivered to you an owner's title insurance policy that did not disclose that lien.

So what should you do now? The first thing that you need to do is to file a claim as required under the policy. It may not be enough that you called one of the offices that issued the policy. Take out the policy and make sure you file your claim in the manner and form that is required under the policy.

You want to give notice to the title company to avoid any possibility that the title company would later claim that their ability to protect you was prejudiced by your failure to give them proper notice.

Your next step is to understand the process of getting your home refinanced. Every time you refinance your home, the lender that gives you the loan will want a new title insurance policy. Since the title insurance policy only covers to the date of the policy, when you refinance several years later, you need to get a new policy to cover that new date.

From one date to another, new liens can arise, new tax problems can surface, people can file judgments against you, prior lenders may have filed to foreclose on the home, you may have encountered financial problems and have IRS liens filed against you, along with many other matters that could affect the title to the home.

So it's quite common for homeowners to have to pay for a new policy to insure their lender when they refinance. If the title company is willing to continue to insure the home and the lender, you probably don't have much to worry about.

You do need to worry once the lien holder decides to file suit against you to enforce his or her lien on your home. It's at that precise moment that you need the title company to come to your defense and either pay off the lien, defend the suit or settle the matter with the lien holder.

However, the title company won't want to pay off that lien holder unless it absolutely must. Frequently, lien holders will fail to enforce their rights and the lien will expire in due course. The title company may be hoping that occurs. In your situation, you need to make sure you abide by the terms of your policy and probably sit tight unless the lien holder tries to enforce the lien.

For more information, you might want to take your documents along with any information you have about the lien to an attorney that has extensive knowledge of real estate law, title insurance matters and real estate liens.

(Ilyce R. Glink's latest book is "Buy, Close, Move In!" Samuel J. Tamkin is a Chicago-based real estate attorney. If you have questions, you can call Ilyce's radio show toll-free (800-972-8255) any Sunday, from 11a-1p EST. Contact Ilyce and Sam through her website, www.thinkglink.com.)

Why property-insurance rates are skyrocketing, how to fight back - Orlando Sentinel

9:03 p.m. EST, April 14, 2012|Scott Maxwell, TAKING NAMES

Mike Costner's home in Indian River County has withstood every hurricane to hit Florida since 1952. So he was perplexed to see his homeowners-insurance premiums go up — by more than 50 percent this year alone.

"Sticker shock," Costner said, "has turned into getting tasered."

Costner is not alone.

Osceola County resident Dan Pearson told me his rates jumped 34 percent. Brevard's Linda Seals' went up 50 percent. Winter Springs' John Secor saw his double in the past two years.

And Orlando resident Scott Maxwell got news of a $700 increase just last week.

Fortunately for Maxwell (that's me), I found a way to shave that bill down by $1,000.

Fortunately for you, I'm going to tell you how.

But first, let's talk a bit about why Central Floridians are seeing massive increases — higher than most of the state. And most of America.

First, you have to accept that we live in a disaster-prone state. Insurance companies like to point that out.

But it's always been that way. Florida hasn't moved.

Instead, the skyrocketing rates are the result of a confluence of things: shoddy decisions and poor planning by the politicians; big profits and financial games played by the insurance companies; and the new way the industry has decided to assign risk — a major shakedown for those of us in Central Florida.

Let's start with the insurance companies.

Every year, they cry poor mouth — whether hurricanes come through or not.

Don't be fooled. Most insurance companies still make out quite well.

In fact, the Sarasota Herald-Tribune won a Pulitzer Prize for a series of articles about how the entire industry "is, at every level, rigged against consumers."

The series cited companies shipping money out of state, secretive rate manipulations and some companies that were so financially weak, they couldn't make all their payments if they had to.

But I wanted to hear from the industry itself.

So I reached out to Locke Burt, the president of Security First Insurance — the company that tried to jack up my premiums $700.

Burt claims his industry is a victim as well. And in some regards, he's right.

The state, for instance, really messed things up with Citizens Property Insurance — the state-run insurer that provides subsidized insurance to higher-risk homes.

I could write an entire column on why Citizens is a mess. But the short version is that we inlanders subsidize the premiums for coastal dwellers, including owners of second-homes on South Beach.

It's nonsensical and unfair. I have no interest in subsidizing second homes of oceanfront mansion-dwellers. And it's insane that this alleged "insurer of last resort" is now the biggest insurer in Florida.

Yet Florida politicians refuse to fix this bloated and unsustainable government program.

Still, Burt said the thing that most affects your rates is the cost of "reinsurance," which companies like his buy to cover their own losses (basically, insurance for insurance companies). "We spend 40 percent of every penny we get on re-insurance," Burt said.

And reinsurance costs are skyrocketing, largely because the industry decided to reassess the way it calculates storm risk, concluding that inland Florida rates need to go way up.

Said Burt: "That affected Central Florida in very bad ways."

He pointed me to a chart that predicted reinsurance increases of 20 percent, 40 percent, 80 percent and more, depending upon the county and ZIP code.

In other words, things will probably get worse.

There are even more factors at play. Fraud is on the rise. Sinkhole claims are up. And rates are going back up, now that a subsidy, courtesy of Charlie Crist and the Legislature, is running out.

Still, most everyone involved in the game — the insurers, the reinsurers, the politicians — all make money off Florida's insurance market … at your expense.

So what do you do about it?

In the long term, elect different politicians.

But for now: Shop around.

I know that sounds simple. But way too many people get hitched to one company — and just keep on paying. That's a big mistake.

When Security First told me my rates were going up $700, I called my independent agent.

In less than an hour, she found a rate that was not only lower than what Security First wanted next year, but $300 lower than what we paid this year.

And that was for slightly better coverage with one of the state's bigger carriers.

So I told Burt I was firing him.

Burt was pleasant enough about it — and not really surprised either. He said different companies target different demographics, and that his offers the cheapest rates to those who live in homes much newer than mine.

So maybe the folks in Baldwin Park will be very happy with Burt.

As for me, I'm much happier with someone else.

But you know what? I'm certainly not wedded to them. If the rates go up, I'll shop around again.

And you should do the same in looking out for your own family.

Because, as Florida's track record clearly shows, no one else will.

smaxwell@tribune.com or 407-420-6141

Copyright © 2012, Orlando Sentinel

All comments are filtered for vulgar language, for web addresses and for e-mail addresses. Those will cause comments to generate an error message or not to post. Registration on OrlandoSentinel.com is required to comment. The Sentinel makes no guarantee of comments' factual accuracy. Readers may report inappropriate comments by clicking the Report Abuse link. (Here are the full legal terms you agree to by posting a comment.)

Groan comforts: How to cut the cost of home bills - Mirror.co.uk

The cost of owning and running a home is now at its highest level for four years.

According to Halifax, the average ­annual cost now stands at £9,393. That's £3,000 more than a decade ago, when it was £6,061, and the highest since 2008.

As our table shows, this figure includes mortgage costs, gas and electricity and household insurances. Here, we take a look at the various ways you can slash some of the biggest expenses, as well as ways you can make your home pay...

 

Cut mortgage payments

Even though mortgages are the only cost to have actually fallen over the past four years, for most people it is still the biggest outgoing every month – and it's rising.

Around one million customers will be affected by increases to standard variable rates. Overall, the average increase is 0.62 per cent which will add an extra £52.58 to a £150,000 mortgage or £630.96 over the year. That's why it's vital to make sure you aren't paying more than you need to.

David Hollingworth, of mortgage brokers London & Country, said: "A borrower with a £150,000 repayment mortgage over 25 years on Co-Op's soon-to-be standard variable rate of 4.74 per cent would be paying £854.31 a month.

"The same mortgage on HSBC's lifetime tracker at 2.19 per cent above the current 0.50 per cent base rate, and carrying no fee, would cost £687.37 a month, saving £167 per month – or £2,000 a year."

Household insurance

Only one in four consumers has switched home insurance provider in the last year, which means around 19 million households could be paying too much.

You should never just accept the ­renewal quote offered to you by your insurer without shopping around. According to Gocompare.com, those who switch their buildings and contents policies save, on average, £125.33.

Energy bills

Almost 4 million households are in debt to their energy supplier, according to comparison site uSwitch.com. Its annual study shows that indebted consumers now owe £131 on average – 4 per cent more than last year.

Shopping around to ensure you are on the correct tariff for your usage and region is crucial. Moving online to a "dual fuel" direct debit deal is the easiest way to make savings. According to MoneySupermarket.com, by switching to the best online tariff, First Utility's iSave v10 tariff, as opposed to the average standard quarterly cash and cheque tariff which costs £1,251, customers could save £224 over 12 months.

Get creative

Think of ways your home can work for you. If you have a spare room, consider letting it out. Under the Government's Rent a Room relief, you can bring in up to £4,250 a year tax-free. Or hire out your driveway at ParkatmyHouse.com

Lorna Beaumont from Daventry, Northamptonshire who saved £181 over the year, just by switching their household insurance provider
Savings: Lorna Beaumont who saved £181 over the year just by switching her household insurance provider

Roland Leon

 

Case study

Lorna and Jason Beaumont saved nearly £200 on their annual housing costs just by switching their home insurance to another provider.

Lorna, 42, a hairdresser, admits the couple didn't shop around for the best deals until a couple of years ago. She says: "We really started to notice living costs going up, so now we ­definitely keep a close eye on everything going out."

The couple, who have a daughter Georgia, 19, were paying £35.08 a month for their home insurance, but have just moved to Nationwide Building Society and are now paying £19.95 a month.

Lorna says: "I was in my local branch of ­Nationwide and saw there was an offer for Flexaccount customers which entitled them to 135 days' worth of free cover so it made sense to move our home insurance to them. I find I'm always on the ­lookout for good deals and it ­really can make a difference if you just make a few simple changes."

Lorna and Jason, who works in the construction industry, also keep a check on their other ­outgoings. Lorna says: "We're locked into a fixed mortgage rate now, but will definitely review this when it ends. And we always look for the best deals on our utility bills."

Pound notes

£ The majority of couples choose not to adopt a "what's yours is mine" ethos when it comes to money. ­Website MyVoucherCodes.co.uk found that 29 per cent of those who took a "what's mine is mine" approach to their money matters said it was because they earned more than their partner and it was fair they kept their share, and 42 per cent said it was due to the tough economic climate, making them more protective over their own money.

£ Teachers are the best ­savers, according to the Co-operative Bank. They save on average £2,125 each year, higher than those working in finance and more than four times those in artistic and sport-related jobs. People working in entertainment and design have had to adjust their lifestyles the most to cope with current pressures.

£THE US and Canada are the most expensive places to have a ski or snowboard ­accident, according to ­Sainsbury's Travel Insurance. The ­average cost of winter sports-­related travel claims was £2,863.

£ Around 22 million adults have people – children or parents – who are financially ­dependent on them for ­everyday costs, including food and ­housing, with the ­average salary supporting two people. Insurers LV= found 29 per cent of adults with never ­expect to become ­dependent-free, and those that do expect to wait ­until they are 51 on average.

£ Men pay far more for their life insurance than women, says comparison site Confused.com. Men are paying an average of 26 per cent more per policy, yet one in four men never shop around for a better deal.

£ Saffron Building Society has launched a 12-month fixed-rate regular saver cash ISA, paying four per cent annual tax-free interest. The account is available by post or through one of Saffron's branches until April 30.

The Money Map's financial expert Steve Hodder reveals how to save for your children's education and tips to reduce inheritance tax

Q How can I ensure that my children can afford to educate themselves in the same way I did now the costs have increased?

A It is becoming increasingly difficult to do this. However, putting a little aside each month while your children are young will help to make this more affordable. You could use your personal ISA allowance, which would keep you in control and allow you to take the money back if your children do not elect to take this route.

Q I am looking to ­remortgage in order to save money, but there are so many mortgages available – how do I know which is best?

A This is difficult as you need to find the mortgages that are available for your circumstances, then find the best rates – not forgetting to add in any fees that will not be represented on the headline rate. Email enquiries@themoneymap.co.uk and they will send you a questionnaire. Return this and they will ­provide you with the most suitable mortgages for your situation.

Q I am considering ­taking steps to ­reduce the inheritance tax charge on my estate – what are my main options?

A You can spend it or make gifts. Utilise IHT friendly trusts or insure yourself for the tax liability. Usually a combination of all of these options would be advisable.