Wednesday, February 27, 2013

Dear Monty: Buying commercial property for use as personal storage - The Patriot Ledger

Colorado House postpones insurance reform bill that would strengthen ... - The Denver Channel

DENVER - The House postponed consideration of an insurance reform bill that would strengthen insurance coverage for wildfire victims on Tuesday.

The bill, which proposes implementation of the Homeowner's Insurance Reform Act, would hold insurance companies more accountable to customers in devastating events such as wildfires. After last summer's devastating wildfires, many victims failed to receive adequate coverage.

According to the bill, insurance companies would be required to offer living expense coverage, additional replacement cost coverage and coverage for 25 percent of a home's contents -- even without an itemized inventory.

The bill's proposal followed three executive orders issued last month by Gov. John Hickenlooper, who created a task force to strengthen insurance coverage for residents living in wildfire-prone areas. The task force explored these issues, as well as wildfire prevention measures.

The bill would help families who are having difficulty rebuilding after wildfires destroyed their homes and possessions.

Kacy Thompson's home west of Estes Park burned down during the Woodland Heights wildfire.

"All we had was the foundation," Thompson told 7NEWS.

Thompson says that Auto-Owners Insurance out of Broomfield has made rebuilding her home very difficult.

Her house will cost $190,000 to rebuild, but Auto-Owners Insurance will only pay $91,000 cash value in advance, despite the fact that she paid a premium for what's called "guaranteed replacement" in the event of a disaster like the wildfire.

"It should be basically the same kind of a house -- the same quality of, for example, windows and doors," says Thompson.

A spokesperson with the Rocky Mountain Insurance Information Association says it is fairly common for insurance companies to pay incrementally as houses are rebuilt, but Auto-Owners Insurance has not told Thompson whether it will pay more at a later date.

Thompson says six homes are being rebuilt around her property, but she cannot proceed because she does not know whether she will be covered.

"Does that mean I need to go get a loan?" Thompson asks. "Maybe, I don't know."

The insurance company had not returned calls from 7NEWS regarding the matter.

Revisions to insurance coverage laws are intended to aid homeowners like Thompson in the future.

The House insurance bill was scheduled for consideration Tuesday but was postponed to an unspecified date.

Copyright 2013 Scripps Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Tuesday, February 26, 2013

'Shop Home Insurance' Offering Free Home Insurance Quotes Comparison Service - RealEstateRama (press release)

WASHINGTON, D.C. – February 26, 2013 – (RealEstateRama) — 'Shop Home Insurance' announces the availability of free home insurance quote comparison service. Calling on the contact number as present on their site helps one get in touch with the licensed agent of the company and get free home insurance quotes from up to five providers free of cost. Some of the insurance providers that the company has tied up with include Travelers Home Insurance, Safeco Home Insurance, Hartford Home Insurance, Liberty Mutual Home Insurance, Ask Royal Home Insurance and ASI Home Insurance among others.

'Shop Home Insurance' today announced the introduction of FreeHomeowners Insurance Quotes comparison services. The buyers just need to call up on the number as provided on the website of the company and discuss the details with one of their licensed agents. The company will provide up to five free home insurance quotes, best matching the requirements.

The company has tied up with some of the renowned insurance providers in the country including Travelers Home Insurance, Safeco Home Insurance, Hartford Home Insurance, Liberty Mutual Home Insurance, Ask Royal Home Insurance and ASI Home Insurance among others. The buyers are also free to include different types of protection in their request and get related quote. Some of the options they can consider include dwelling coverage, other structures, personal property, liability, loss of use and medical payments among others.

Comparing the quotes from different providers ensures that one gets the best deal that is as per his requirements as preferences. In addition, comparing online saves a lot of useful time, that is otherwise lost in travelling from one provider's office to another. The home insurance providers as found on the site have received the highest rating from A.M Best Company for financial stability.

About 'Shop Home Insurance'
'Shop Home Insurance' is an online home loan quote comparison service that helps clients find an alternative, that is best as per their requirements and preferences. The company has tied up with some of the best insurance providers in the country and offers free quotes from up to five of them on request.

Contact
Phone: 1-877-781-8565
Website: http://www.shophomeinsurance.net

Tagged as: Free, Free Home Insurance, Free Service, Home Insurance, Home Insurance Quote, Home Insurance Quotes, Homeowners Insurance Quotes, Insurance Quote, Insurance Quotes, Shop Home Insurance

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Monday, February 25, 2013

Analysis: When it comes to Citizens, property insurance costs, Florida Gov ... - Bradenton Herald

TALLAHASSEE -- He says he is protective of Florida families, but Gov. Rick Scott can't get a grip on one of the big pocketbook issues for many of them: the rising cost of homeowner insurance.

Scott has ordered internal investigations into spending practices at the state-backed Citizens Property Insurance, Florida's largest insurer, and when he was blindsided by big raises to top executives, he told them to return the money.

But tackling the price of insurance is a different story.

When it comes to the cost of living, Scott talks about taxes and tuition, but insurance seems rarely part of the conversation.

"I'm for Florida families," Scott said in an exclusive Times/Herald interview in his office. "My goal is to get more competition."

While Floridians have dodged a hurricane for seven years, the rising cost of property insurance looms as a potential major issue in the upcoming race for governor — the political equivalent of a large, dangerous weather disturbance.

Nearly half of all Florida homeowners rate property insurance costs as a top financial concern, according to some polls. But it has never made the top of Scott's agenda and is missing from his priority list for 2013, which is topped by a $2,500 pay raise for teachers.

Scott's predecessor and possible future opponent, Charlie Crist, bashed insurance companies to promote his populist image. Shortly after taking office in 2007, Crist called a special legislative session to freeze Citizens' rates, and he demonized insurers as greedy.

That's not Scott's nature. A conservative supporter of free markets, he wants to shrink Citizens and lure more private companies into the Florida market, on the premise that more competition will lower costs, but critics say that won't help.

"Gov. Scott just doesn't get it," said Rep. Mike Fasano, R-New Port Richey, who hears daily from constituents fed up with Citizens. "Homeowners are absolutely disgusted with what Citizens is doing to them, and they definitely will blame a governor who allowed it to happen."

In places such as Miami-Dade County, Citizens policyholders pay an average of $3,300 a year for standard coverage, eating up nearly 5 percent of a typical family's budget. Rate hikes of 10 percent a year apparently are straining household budgets in Tampa Bay and South Florida, where Citizens dominates the market — and where more than a third of Florida voters live.

Scott says his control over Citizens is limited: He appoints two of its eight board members.

The governor's most vocal stance on Citizens occurred at a Cabinet meeting in late 2011. Informed that the insurer was growing rapidly and struggling to control risk, Scott told then-president Scott Wallace to fix the problem within six months.

"This is something we cannot continue to do," Scott said, harking back to a campaign promise to shrink risk at Citizens.

ONLY GETTING WORSE

By some measures, the problem has gotten worse since that Cabinet meeting. A month later, Wallace resigned, and was replaced by Tom Grady, Scott's Naples neighbor and political ally, who soon fell out of favor with Citizens board members. He was replaced by Barry Gilway.

In the months following, property insurance has receded from Scott's policy priority list, just as Citizens has become more aggressive than ever about remaking the company.

The Citizens board has cut back coverage, advanced a massive home re-inspection program and proposed uncapped rates on new policies.

The result is higher rates for less coverage, with homeowners facing huge spikes in insurance costs.

THE BACK DOOR

Citizens raised rates 10.8 percent last year, costing homeowners statewide an estimated $250 million. The company sent inspectors to the homes of 360,000 Floridians, causing premiums to jump by $800, on average, for the vast majority of those targeted in the program.

Both Citizens' critics and its board chairman, Carlos Lacasa, say the insurer is following through with Scott's wishes.

"Through the back door, he [Scott] is putting pressure on Gilway and the board to do certain things," Fasano said. "But what he doesn't realize is that the pressure he's putting on them to shrink [Citizens] is having a negative effect on a lot of homeowners in this state."

While critics such as Fasano blame Scott for insurance rate increases, the governor maintains a limited view of his role in the property insurance debate.

Asked what he has done to address the state's property insurance problem, he said he has invited companies to come to Florida and warned homeowners of the hidden risk of taxpayer-backed insurance that will force higher assessments if a hurricane strikes.

Citizens has a $15 billion portfolio and a record amount of cash after seven years with no hurricanes, but a Category 5 storm could wipe out its reserves. That would lead to so called "hurricane taxes" on most consumers.

The company was created in 2002 to help provide coverage for those who could not find it in the private market, which shrunk after Hurricane Andrew in 1992. Rates at Citizens are lower than what risk experts believe the company should be charging, but often higher than what homeowners can afford.

Fiscal conservatives say the government-run company is forcing inland residents to "subsidize" those near Florida's coast.

"I don't believe that I ought to be subsidized by people who live in Lakeland," said Senate President Don Gaetz, a Niceville Republican who lives in a waterfront home.

A bill now being debated in the state Senate would create major changes to Citizens, requiring the company to charge higher rates than in the private market.

But Scott, whose 2010 platform promised to work with the Legislature to "ensure that Citizens consistently operates on actuarially sound rates," said he has not read the bill. "I ran on jobs and education," Scott said.

The politics at Citizens has always been thorny. The company has issued 1.2 million policies that cover nearly a quarter of Florida's electorate, and voters are quick to blame government-controlled insurance rates on elected officials. The Republican majority often breaks apart along geographical lines when it comes to Citizens, with coastal constituents telling their lawmakers to vote against rate increases.

"I just received my Citizens homeowner's insurance [bill], and I am appalled," Karen Fitzgerald of Miami-Dade wrote to Scott.

Barbara Costa, who moved to Pasco County from the West Coast, said her insurance costs in Florida are three times higher than in California — "even with earthquakes, mudslides and wildfires."

A SLAP IN THE FACE

The emails flooding Scott's inbox have become more hostile, as allegations of Citizens' corporate misconduct and executive spending have surfaced. Homeowners complain that their premium increases are more discouraging when they hear about various management problems at Citizens.

In the past year, Scott has twice called for his inspector general to investigate allegations of waste and excess by Citizens executives. But the makeup of the board remains unchanged.

"I'm for making sure Citizens operates properly," Scott said. "The raises were ridiculous ... We're not paying for alcohol. They ought to have an inspector general. We ought to make sure the place works right, first."

Homeowners insurance rates go way up - why? - The News-Press

Lillian Severson is both frustrated and financially burdened by an about $900 annual increase in her homeowners insurance.

"For me to take this kind of hit is huge," said the 64-year-old Cape Coral resident.

The mortgage company recently informed Severson that she had a $1,492 deficit for the money it holds aside to pay property taxes and insurance. If she paid the deficit by April 1, her monthly mortgage payment would increase from $648.15 a month to $719.11 a month. Otherwise, she will pay $843.48 a month – nearly $200 more each month from her "fixed-rate" mortgage payments.

Severson is one of many Florida homeowners seeing an increase in their insurance. Despite not having a major hurricane since 2005, Florida homeowners insurance rates have continued to rise.

Experts said insurance rates can be impacted by other, noncatastrophic factors. They said recent hikes in insurance are likely caused by increases in everyday insurance losses, the rising cost of rebuilding houses and impacts from the reinsurance marketplace, which provides insurance for insurance companies.

"In reality, tying the number of storms, or the storm activity, to insurance rates is really a false premise because that's not what drives the rate," said Tim Shaw, president of Tim Shaw Insurance – Acentria based in Fort Myers. "It's the reinsurance cost and the replacement cost. Those are the two drivers to rate."

There is also a political atmosphere that many argue has kept rates artificially low.

Nationally, the average premium for HO-3 homeowners insurance (the most common kind) increased 53 percent from $593 in 2002 to $909 in 2010, according to data from the National Association of Insurance Commissioners.

The average HO-3 homeowner's premium for Florida in 2010 was $1,544, excluding Florida's policies written by Citizens Property Insurance Corp. It ranked third among states with the most expensive homeowners insurance in 2010. Texas was ranked as the most expensive, followed by Louisiana.

Bill Newton, executive director of the Florida Consumer Action Network, said today's insurance rates should be lower because there haven't been any hurricanes recently and reinsurance companies have enough capital to invest in Florida's risk of hurricanes.

(Page 2 of 5)

"It's too high. Insurance rates should be lower," he said.

Still, Severson will have to pay the increases. She already works two jobs to make ends meet, and she is thinking about dipping into a 401(k) from a previous job to pay the upfront costs. She might drop her cable bill to help with the monthly increases.

"There's nothing more for me to cut," she said.

Losses add up

Noncatastrophic insurance losses for Florida homeowners have about doubled in the past five years, according to a graphic from the Insurance Research Council and the Insurance Information Institute. Loss includes the cost to settle a claim, payments to the individual and the cost of handling the claim.

"If losses do not level out or go down, than neither can rates," said Lynne McChristian, Florida representative for the Insurance Information Institute.

She couldn't say why there has been such a drastic increase in insurance losses, but she did say it might reflect issues with fraud in the system.

According to a Citizens Claims Committee meeting in November, water damages accounted for 48 percent of Citizens' losses relative to its total claims volume in 2012.

"It is easy to see why water damage is so common when you consider that common water-related damages include, but are not limited to, damage caused by pipes bursting or freezing, appliances or air conditioning systems overflowing or leaking, and toilets or bathtubs backing up or overflowing," wrote Christine Ashburn, director of legislative and external affairs for Citizens, in an email. "In addition, water losses can be particularly costly because they often are not localized in one area – for instance, a pipe bursting upstairs can flood both floors of a home."

Policyholders are actually paying less for every $1,000 worth of insurance coverage than in 2005, McChristian said based on data from the Florida Office of Insurance Regulation, but their rates are still going up because of the increases in everyday claims and rebuilding costs.

Builders blamed

Homeowners insurance is largely based on the cost to rebuild a house – not on its real estate value, McChristian said. So as the cost to build a new house increases, so does the cost of insurance.

(Page 3 of 5)

"Home insurance is all about rebuilding cost," she said.

For example, Shaw said he bought a North Fort Myers house in 1974. At the time, he paid about $50,000 to buy the house and about $250 to insure it. Today, Shaw said the house would cost about $308,000 to rebuild and about $3,000 to insure. He no longer owns the house, but it is assessed at $128,308.

"The real culprit for rising insurance rates is rising construction cost," he said.

The cost of common lumber material increased 17 percent from February 2012 to February 2013. The cost of common drywall materials increased 16 percent, according to Xactware Solutions, an Orem, Utah-based company that provides computer software solutions for professionals involved in estimating all phases of building and repair.

Tim Rose, president of the Fort Myers-based independent franchise of Arthur Rutenberg Homes, said his gut feeling is that building costs have increased 12 to 15 percent in Southwest Florida since 2009, which was the most recent low point in construction costs.

"I think that our costs are still low," he said. Right now, builders are willing to build homes at lower profit margins, but they can't do that forever. He predicts costs will go up further.

He said these higher construction costs are caused by an increase in building material costs, the higher price of gas, more stringent building codes and increases in the cost of labor.

And Shaw said homeowners insurance becomes even more expensive for people who have older houses. Houses are now designed with specific features, like roof-to-wall connections and opening protections, to better protect them from wind damage.

"Those are the guys that are getting hit the hardest – the guys that weren't built after 2002," Shaw said.

Insurance credits and discounts are available for people who have redone their homes to meet these stricter standards.

Yet Newton from the consumer action network said there isn't enough emphasis being placed on the hardening of homes or on giving insurance discounts for mitigation efforts. Building codes aren't strict enough, he said.

(Page 4 of 5)

"The insurance companies don't care about mitigation because they can raise the rates rather than invest in mitigation," Newton said.

So is government

In 2007, Gov. Charlie Crist supported legislation that passed sweeping property insurance reforms and decreased insurance rates.

According to the website of the Florida office of Insurance Information Institute, "Property insurance rates actually dropped between 2007 and 2009, due to state-mandated discounts. The average homeowner insurance premium as of Dec. 31, 2009, was down by 14 percent ($274) since March 3, 2007. ... Rates are trending back up as the Office of Insurance Regulation is reviewing insurers' financial data and recognizing that rising claims costs is having a negative impact on insurer solvency."

McChristian said these policies – which reduced insurance rates while increasing mitigation discounts for hardening a home against hurricanes – meant that insurance companies received less in premiums. Many had to limit the amount of homeowner policies they could write.

"The changes made in 2007 under Charlie Crist hurt the marketplace," she said.

Robin Smith Westcott, the state's insurance consumer advocate, also said freezing Citizens' insurance rates forced private companies to lower their rates to stay competitive. As a result, she said many of these private companies reduced the number of policies they could write, which caused the number of Citizens' policyholders to grow.

"While it was a short-term positive effect for the consumers' pocketbook, it was a short-sighted market strategy," she said.

Westcott said the state is now working back toward a healthy marketplace. She said Citizens should be at or near rate adequacy in 2015, which means the rates it receives could adequately cover both everyday and storm losses.

Ashburn wrote in an e-mail that Citizens is focusing on depopulating its policies because policyholders can have more comprehensive coverage and a lower assessment risk in the private marketplace. Depopulating Citizens decreases the risk of assessment to both Citizens' policyholders and all Floridians. Having less exposure will decrease Citizens' overall probable maximum losses after a storm.

(Page 5 of 5)

She also wrote that actuarially sound rates are driving the company's rate increases.

"By law, Citizens is required to charge actuarially sound rates. In 2007, Citizens' rates were frozen for three years. When rates were unfrozen, the law required that Citizens begin moving toward actuarially sound rates by following a glide path whereby rates could increase by no more than 10 percent per year," she wrote.

She said Citizens' rates must increase each year until it attains what the Office of Insurance Regulation deems to be sound rates and then will increase as necessary to maintain those sound rates.

Don Brown, who was a Republican in the Florida House of Representatives from 2000 to 2008, was one of two representatives who voted against HB 1A in 2007.

A major reason he voted against Crist's insurance changes was because the bill allowed Citizens to expand its assessments, which is like an extra tax to help pay Citizens' claims after a catastrophic event. Before this legislation, the company could only assess Florida homeowners. It can now place assessments on virtually all property and casualty insurance policies.

"It was a scheme to pay for Citizens' losses out of the pockets out of a much larger group of people," he said.

However, Newton at the consumer network supported the reforms in 2007. He organized grass-roots groups across the state and rallied people to go to Tallahassee.

"It has worked to keep rates down ever since," Newton said.

As for increasing rates to help create competition, Newton said he doesn't think that is smart – especially now as the economy is starting to recover.

"I don't think that's going to work," he said. "I think if you raise rates you're going to get higher rates."

Shaw said rates are going up year after year because insurance companies are trying to meet increases in rebuilding and reinsurance costs that they couldn't keep up with when Crist was in office. He predicted that rate hikes will level off in the next two years, once insurance rates are more in line with rebuilding and reinsurance costs.

Gov. Rick Scott "realizes that (if you) let rates get up, competition, the free enterprise system and greed will allow rates to settle into a competitive level," Shaw said. "In other words, insurance companies aren't going to raise the rates to where they're making a killing because another company will come along and undercut those rates. Instead of being a hog they'll just be a pig and take a little bit."

But Severson is still frustrated.

"They can just raise it an enormous amount, and we're forced to find a way to come up with this money," she said.

Sunday, February 24, 2013

Grayless Insurance Announces New Options for Homeowners Insurance - PR.com (press release)

For those looking to seal a deal in the field of homeowners insurance in Houston, Grayless Ins has good news. The company has put together a new series of services which include even homeowners insurance for Rosenberg TX.

Houston, TX, February 24, 2013 --(PR.com)-- Acquiring homeowners insurance is probably one of the most important things to do when buying a new home. The world is now depending on people being insured: whether that is car insurance, real estate insurance or life insurance. But with so many fields needing to be covered by solid insurances, people often find themselves lacking the financial resources to pay for all these requirements. Luckily, there are many companies out there which put at their clients' disposal various packages, thus offering people the possibility to hunt for the best price.

Grayless Insurance can help people in Houston and not just by offering attractive packages for homeowners insurance. In the company's opinion, Houston is one of the locations where homeowners are not only advised to create home insurance, but they are somehow forced to. The company's CEO, Mary Ann Grayless, says, "The hurricane season this year starts in June. I'm talking about 2013. So if you don't already have home insurance I advise you take action as soon as possible." She continues, "While forecasters can approximate the time a hurricane will hit your town, they cannot estimate the damages it will make. And on top of that, of course, are the unforeseen events everybody thinks will not happen to them. Well, they don't happen. Not until they do. And here I can easily include house floods, accidental fires or… well, the usual burglars."

Ms. Grayless has been working in the field of since 1974. During this time she had the chance to see lots of people going down because they did not care to think about home insurance. "One of the reasons I started this company," she says, "is because I want to give people a wakeup call. I want them to understand that homeowners insurance is extremely important. Who wants to wake up one day and see their life savings have been taken away from them or destroyed."

About Grayless Insurance

Grayless Insurance Agency first saw the light of day back in 1990, when its owner, Mary Ann Grayless decided to quit her job and start her own business. Ms. Grayless is a Certified Insurance Counselor and her company has been offering its services to clients from Rosenberg for over 20 years now.

As an Independent Insurance Agency, Grayless Insurance has a large selection of insurance carriers to choose from. They are constantly looking for the best markets to provide the consumer with an excellent choice of pricing and coverage. When it comes to finding a company that offers homeowners insurance in Houston, Grayless is a reliable independent insurance agent.

Work to lower SC's coastal home-insurance rates gains traction - Hilton Head Island Packet

Beaufort County activists are cautiously optimistic that state wind-insurance premiums -- which they argue are too high and damaging to the area's economy -- might soon be trimmed.

It's been nearly a year since Daryl Ferguson and a group of other Lowcountry business people began gathering evidence that the area's home-insurance rates are disproportionately high. They also sought to figure out why, and what the state could do to lower rates.

Their work is finally getting some attention -- and legislative traction.

Ray Farmer, the state's newly confirmed insurance commissioner, is in talks with state Sen. Tom Davis, R-Beaufort, and other area residents to identify ways to lure more insurance companies to the state to compete, thereby lowering rates. They're also looking for new ways to let homeowners comparison-shop for the best deals on wind insurance.

Davis hopes to introduce a bill soon.

A Senate subcommittee, of which Davis is a member, also hopes to recommend what else can be done at the state level to lower rates.

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

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

In fact, Ferguson says even though the state's coast, particularly in Beaufort County, is seldom hit by hurricanes, insurance companies are charging homeowners here more than those who live in areas hard hit by recent hurricanes, including Gulfport, Miss.

"It's a serious, serious problem. It's a crisis," said Ferguson, a retired Beaufort resident who formerly led a public utility company.

AND A DRAG ON SALES

Inflated rates damage Lowcountry home sales and the area's economy in general, according to Andy Twisdale, a Hilton Head Island real estate agent and a member of Ferguson's group.

"This perceived threat of hurricanes affects tourism and home buyers because people are afraid there is more hurricane risk than there actually is," he said, offering examples of clients who have hesitated to move to the area and retirees who have settled elsewhere because of high premiums.

Attempts Thursday and Friday to reach Farmer for comment were unsuccessful. However, his spokeswoman, Ann Roberson, said the new commissioner considers reduction of these rates a top priority.

"Director Farmer and the department are not only concerned about reducing the cost of coastal property insurance, but are also concerned about the availability of coastal property insurance," she said.

Farmer told senators during his confirmation hearing that premiums matched the risks being assumed by insurance companies. Later, however, he said he would make rate reduction a priority.

A spokesman for Gov. Nikki Haley, who appointed Farmer, also said Friday she favors efforts to decrease premiums.

STATE'S STOP-GAP MEASURE

South Carolina has grappled with home-insurance rates before. Lawmakers thought they had discovered a solution in 2007.

In the aftermath of Hurricane Katrina, many insurance companies either substantially increased premiums for wind-damage coverage or stopped writing such policies altogether in states considered to be prone to hurricanes.

To help residents find coverage, South Carolina increased the area covered by the state's wind pool -- a state-chartered insurer of last resort for homeowners and business owners who can't get coverage in the private insurance market. State legislation also created new tax credits to help people purchase windstorm insurance policies in the private market if they weatherized their homes, and tax subsidies to encourage private companies to write full-coverage wind insurance.

"That worked for a while," said Davis, who at the time was chief of staff for Gov. Mark Sanford. "But about a year ago, we saw premiums start rising again."

WHY RATES ARE ON THE RISE

The reasons for the premium increases, which are increasing for residents across the state, are complicated and multifold.

Twisdale points, in part, to a state law allowing insurance companies to raise rates up to 7 percent annually. Some point to hurricanes in other coastal states that have caused immense damage.

And others attribute the rise to the complicated nature of setting premiums, said Russ Dubisky, director of the S.C. Insurance News Service, which represents insurance companies that write policies in the state.

"We're selling a product that we don't know its cost until the future. It's a complicated product," said Dubisky, adding that current rates are not based on what homeowners have previously paid but the future risks the insurance company believes it is assuming. To calculate that, insurance companies are taking into account the rising costs of repairing and rebuilding homes.

The average claim paid out by insurance companies in South Carolina has risen by 155 percent in the past 15 years, Dubisky said.

And although hurricanes infrequently hit South Carolina when compared to some other states, "when they do hit, they have the ability to level entire towns. It can wipe out an insurance company's premiums for years -- not their profits, but premiums," he said. "Luckily, hurricanes in South Carolina are infrequent, but we're on the hook for whenever they do hit."

The level of building along the state's coast also means higher premiums for everyone across the state, he added.

About 28 percent of the state's total insured value is along the coast; in North Carolina, the figure is 9 percent, and in Georgia, it is 5 percent.

"So we have more that could be in harm's way than other states," he said.

Premium increases are not out of line, according to Mark Brannon, an independent actuary with Merlinos and Associates, who recently reviewed rate filings submitted to the S.C. Department of Insurance from the top seven insurance companies.

"In many cases, insurers are moving rates in coastal areas in annual steps, taking two or more years to get to adequate rates that cover the costs of providing insurance," he said.

POLITICAL INFLUENCE

Ferguson puts some of the blame on the state for failing to regulate insurance companies in recent years.

And he has doubts it will improve under Gov. Nikki Haley's appointment of Farmer, who spent 33 years as a lobbyist for the insurance industry. Before that, Ferguson worked as a regulator and adjuster in Georgia.

"You have to have a commissioner who looks after the industry and also the people," he said. "And you don't get that with a lobbyist. It's letting the fox guard the hen house."

Friday, Haley's office defended its pick of Farmer.

"Ray Farmer has a depth and breadth of experience in the insurance field that makes him uniquely qualified to take on the challenges facing the Department of Insurance," said Rob Godfrey, Haley's spokesman. "The governor refused to settle for just anyone but the very best to serve as insurance director, and that's what South Carolina found in Ray Farmer."

THE NEW APPROACH

Davis said he and others are considering a new, twofold approach:

  • Cutting red tape and providing incentives to entice insurance companies to do business in South Carolina. Davis said he and Farmer might suggest new tax credits and updates to the state's hurricane damage mitigation program -- the S.C. Safe Home Grant Program -- which offers grants to residents whose home improvements help protect against hurricane winds. "I'm asking questions like, 'What are the things that insurance companies look at to determine where they want to do business?' " Davis said.
  • Giving S.C. homeowners and business owners easily accessible information so they can shop around for affordable coverage.
  • "Shopping for insurance is a daunting thing," Davis said. "You've got pages and pages of exceptions and fine print. But we've got the technology to allow consumers to access a lot of data that is non-threatening and empowers them. And that's a role the insurance commissioner can plan, to take a complicated subject and boil it down and make it easy to compare."

    Follow reporter Gina Smith at twitter.com/GinaNSmith.

    Related content:

    Should a lobbyist run the insurance department? Lawmakers debate nomination for new insurance chief, The (Charleston) Post and Courier, Jan, 24, 2013

    Initiative to lower insurance premiums gaining traction, leaders say, Aug. 20, 2012

    Saturday, February 23, 2013

    Fire destroys Egelston Township home, couple without insurance loses everything - Muskegon Chronicle - MLive.com

    EGELSTON TOWNSHIP, MI -- An Egelston Township couple lost their home and its contents in a house fire that drew firefighters from eight different departments Friday morning.

    The fire in the 7600 block of Evanston Avenue was believed to have been caused by a washing machine, said Egelston Township Deputy Fire Chief Dan Brentana.

    The couple who lived in the home did not have insurance, Brentana said.

    "Everything's gone – the belongings, everything " he said. "It's a total loss."

    He declined to put a value on the loss of the home, which he described as an "old farmhouse" built in 1934 and added onto in 1964.

    The woman was home with three young grandchildren around 10:45 a.m. when she noticed gray smoke and flames coming from the laundry room on the single-story home's main floor, Brentana said. She had just put a load of laundry into the washing machine, he said.

    With no working phone in the home, she sent her 6-year-old grandchild to a relative's home next door to call 911 while she evacuated the two younger children, Brentana said.

    By the time Egelston Township firefighters arrived, the entire rear of the wood-frame home was in flames, he said. They initially attacked the fire from inside, but withdrew when the roof started sagging, he said.

    "Our guys were tired," Brentana said. "When our guys are tired we start calling for help … We had to call the world."

    Helping out at the scene were firefighters from Muskegon, Fruitport, Moorland, Ravenna, Crockery, Holton and Dalton townships and the city of Norton Shores. Firefighters from Casnovia Township filled in at the Egelston station.

    The last firefighters didn't clear the scene until 3 p.m.

    The woman's husband, a long-haul truck driver, was in another state and is headed back home, Brentana said. The woman is staying with relatives.

    The American Red Cross is assisting the couple, whom Brentana declined to identify.

    Email Lynn Moore at lmoore8@mlive.com or follow her on Twitter: @LynnSMoore

    Friday, February 22, 2013

    When one home-insurance policy isn't enough - MarketWatch

    For the owners of some residences, one home-insurance policy just doesn't cut it.

    To get full coverage on their home and the belongings in it, many homeowners with $1 million–plus properties have to sign up for at least four policies. Beyond basic home insurance, they often need policies that pay out for damage their homes may sustain from natural catastrophes, like floods or earthquakes. They also want policies to protect valuables, like an art or wine collection, at home. And most of these homeowners also sign up for home-related policies that protect their assets in case of a lawsuit.

    What's more, premiums have been going up partly due to an increase in homeowner claims. For example, high-end insurer AIG Private Client Group says it increased premiums by 2% to 5% over the past two years. ACE Private Risk Services, the high-net-worth underwriting division of ACE Group (US:ACE), says it raised premiums by an average of 4% over the past year.

    The more expensive or rare a home, the more complicated the process of insuring it. To confirm a home has the appropriate amount of coverage, luxury insurers will send an appraiser to walk through the property to assess the cost of rebuilding, replacing rare materials or employing skilled workers to restore its unique features, like hand-painted murals. That can lead to an estimate that's 50% to 100% more than the market value of the home — leaving homeowners with higher premiums than they expected.

    Insurance premiums for luxury homes vary widely. For example, on a $1 million home in areas where catastrophes are infrequent, a basic home-insurance premium can range from $4,000 to $5,000 per year, including a $2,500 deductible, with the high-net-worth unit of AIG (US:AIG). In high-risk hurricane zones, however, insurance brokers say wind coverage (which may not come with basic insurance but instead is sold as a separate policy) on high-end homes can come with premiums of $50,000 or more per year.

    And in many cases, individuals planning to take out a mortgage on a home have no choice but to sign up for extra policies. Lenders will require borrowers purchasing a coastal home at high risk of flooding to first sign up for a flood insurance policy before the mortgage can be approved. Similarly, many lenders will require wind coverage for homes located in hurricane-prone areas before approving a mortgage. In some states, like Florida and South Carolina, buyers often need both flood and wind coverage to get a loan.

    Complicating matters, a home's location could make it ineligible for certain types of coverage. Experts say some insurers won't provide wind coverage in risky markets, such as Palm Beach, Fla., and Hilton Head Island, S.C. Others first have to confirm the property is built to withstand a hurricane. Otherwise they'll require homeowners to install hurricane-resistant features.

    State senators want to share property insurance risk with other states - First Coast News

    Most home insurance policies cover wind damage, but flood damage usually requires a separate policy. (Photo: Mark Humphrey, AP)

    TALLAHASSEE, Fla. -- Several Democratic state senators are calling on Gov. Rick Scott to ask governors of other states to form a regional compact that would share the risk of hurricane damage.

    Sens. Jeremy Ring, Chris Smith and Jeff Clemens say Republican-backed measures to address soaring property insurance rates have not worked in recent years. They believe the only way to fix Florida's insurance market is to spread the risk among multiple states in the Southeast, and perhaps along the Atlantic coast too.

    Sen. Ring, D-Margate, said the property insurance issue has become larger than Florida and creating a regional compact on hurricane insurance would help reduce the growing financial burden on Floridians.

    "We can offset some of our risk. We probably would have to hold onto most of the risk -- we have the most miles of coast, but to offset some of it. Everyone in the past has talked about a national catastrophic fund and the question may come, why don't we call for that? That would be great. I just don't see that as actually being practical. I can't imagine with the inaction of Congress these days that we could get something like that through."

    Sen. Smith, D-Ft. Lauderdale, calls Hurricane Sandy a "game-changer" on the issue of property insurance.

    He said the billions of dollars in damage from Sandy taught a lesson to residents in states all along the Atlantic Coast.

    "Sandy showed the entire East Coast, the Atlantic seaboard, that we all have some risk. Yes, Florida has more risk than others but it opened the eyes of governors and residents up and down the Atlantic that there is risk for everyone."

    Ring said Florida can either stabilize rates or the risk, but not both at the same time. So he believes this broader, multi-state approach is the only solution.

    "I'm not convinced there is a comprehensive Florida solution to our property insurance crisis."

    Thursday, February 21, 2013

    Noltensmeyer Insurance Services, LLC Encourages Texas Homeowners To Put ... - PR Web (press release)

    Houston, Texas (PRWEB) February 19, 2013

    Experts say that when it comes to accidents, most of them occur in or around the home. Unfortunately, not all accidents are created equal. Some are more damaging than others. According to a recent Houston Chronicle article, on February 1, a fire erupted inside an 82-year-old Houston resident's apartment. The man died in the fire, which may have actually begun due to a lit cigarette.

    Although deaths from home fires have decreased by 50% since the 1970s, there are a large number of house fires caused each year by accidents alone. According to the National Candle Association, there are 18,000 candle-caused fires annually in the United States. And fires are not the only accidents that occur in the home. Poor lighting can lead to accidental slips and falls. At Noltensmeyer Insurance Services, LLC, our Texas insurance agents are encouraging residents to take safety precautions.

    7 Ways To Make Your Home Safer

    1.    Keep the interiors and exteriors well lit- install a motion sensor light outdoors for added security and safety

    2.    Avoid leaving appliances plugged into electrical outlets when they are not in use to avoid power surges

    3.    Use circuit breakers for your plugs instead of extension cords – they offer added protection as they will power down if they become overloaded

    4.    Be sure the smoke alarms and carbon monoxide detectors in your home are working – test them frequently

    5.    It is hazardous to use power equipment outdoors on wet hedges, grass or other landscaping

    6.    Never run the car inside of the garage with the door closed – this can release carbon monoxide into the garage and cause serious illness, and sometimes, death

    7.    Keep the swimming pool covered and well lit during times it is not in use- this will avoid trips, slips and falls

    When it comes to fires, avoid leaving candles lit when no one is in the room with them. Always be sure to blow them out in the evening, and avoid smoking indoors. Fires can catch quickly and spread even faster. Residents are reminded that with extra safety measures, there may be some discounts available for homeowners insurance.

    Texas residents with questions about safety in the home or concerns about homeowners insurance are encouraged to give the insurance agents at Noltensmeyer Insurance Services, LLC a call today. They are more than willing to help insure residents and keep them safe!

    About Noltensmeyer Insurance Services, LLC:

    Located in the heart of Houston, Noltensmeyer Insurance Services, LLC is proud to serve the entire state of Texas. The agency continually offers quality coverage and superior customer service while offering low rates due to its Nationwide carrier. The 20 agents that comprise Noltensmeyer Insurance Services, LLC write auto, home, commercial and health insurance policies. The agency's staff is divided into teams to help assist its clients who have specific insurance needs.


    Wednesday, February 20, 2013

    Think Homeowners Insurance Protects You From Everything? Think Again - Money Talks News (blog)

    Money Talks News now features an Insurance Shopping Tool that allows you to compare rates on Auto, Health, Home and Motorcycle insurance. Check it out!

    When a 5.8 magnitude earthquake hit Washington, D.C., in August 2011, those of us (including me) who experienced damage rushed to find our homeowners insurance policies to see if we were covered.

    The answer: nope. Earthquakes aren't a covered peril under most homeowner policies.

    I was fortunate – my damage turned out to be a minor crack, easily repaired with some caulk and a coat of paint. But this illustrates how important it is to know what's covered and what's not by your homeowners or renters policy; it's easy to assume the premiums you pay automatically assure that no matter what happens, you're "in good hands."

    Most insurance policies cover damage that's of the once-in-a-blue-moon variety – like an airplane landing on your roof. Few, however, cover something experienced by thousands of homeowners every year: damage from flooding. The most common policy, an HO-3 (HO stands for "homeowners"), covers everything other than things specifically excluded. But the exclusions can be glaring…

    What's not covered

    1. When the earth moves – Think earthquakes, landslides, and sinkholes.
    2. Water damage – Burst pipe? Yes. But water coming from rivers, lakes, streams, or ocean? No. Also not covered: water seeping from the ground.
    3. Neglect – Failure to preserve your home and stuff to the best of your ability during or after a loss.
    4. War – Not covered, whether it's an undeclared war, civil war, insurrection, or a "warlike act." Also not covered: discharge of a nuclear weapon, even if it's accidental.
    5. Governmental action: If your stuff is destroyed or seized by the cops or other governmental agencies, no coverage.
    6. Business-related property and liability: If you're running a business from your home, stuff related to that business may be excluded and require additional coverage. Likewise, liability from business-related activity may also be excluded.
    7. Power failure: If you lose the food in your freezer because of a blackout, you might have limited coverage, but for other damage, no.

    For more on what's covered and what's not, see this page of the Insurance Information Institute's website. Better yet, find the exclusions in your own policy by looking at it – they can vary by state and type of policy. You can see what to look for by checking out this sample policy from the Insurance Information Institute. (Policy exclusions begin on page 11.)

    How to save on homeowners insurance

    If you want to save on homeowners insurance, don't do it by cutting coverage. Maintain enough property insurance to fully replace your home and furnishings, as well as enough liability coverage to protect your net worth in case you're sued. If there's even an outside chance you could be affected by flood, get flood insurance. It's probably cheaper than you think: Visit this page of floodsmart.gov for a quick estimate.

    Another place to avoid scrimping is replacement vs. cash value coverage. From the clothes in your closet to your furniture, the things in your home are worth a lot less than you paid for them. If they're destroyed and you want them replaced with new stuff, you need replacement coverage. If you have only cash value coverage, you'll be paid their depreciated value – think yard-sale prices. If you can afford it, always get replacement coverage.

    So how do you save? The best way is raising your deductible. The more you're willing to pay before your insurance company has to, the lower the cost. Raising your deductible from $250 to $1,000, for example, can lower your premium by 10 percent or more.

    And that's just the tip of the savings iceberg. Check out 10 Ways to Cut the Cost of Homeowners Insurance.

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