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Practical Homeowners Insurance Tips to Remember

Tuesday, February 9th, 2010

One of the first things you must do when shopping for a home is to shop around for the best homeowner’s insurance rates. Many individuals, excited about the whole home buying process, tend to neglect the important of a comprehensive, affordable homeowner’s insurance policy. However, a homeowner’s insurance policy can be your saving grace should your home become damaged or completely destroyed.

With that said, there are a number of practical tips that all homeowners should remember when it comes to homeowner’s insurance:

  • Always check the company and research the agent’s qualifications before purchasing homeowner’s insurance. Make sure that you understand your agent’s qualifications, and that you have a good rapport with him or her.

  • If homeowner’s insurance rates are too steep for your budget, consider raising your deductible to lower your rates. Also keep in mind, however, that a larger deductible will equate to more out-of-pocket expenses should you need to file a claim.

  • Remind your homeowner’s insurance agent about items that can lower your premiums, including fire extinguishers, deadbolts, smoke detectors and home security systems.

  • Consider updating your home to better withstand weather conditions (and prevent homeowner’s insurance claims); this may include stronger roofing materials, better windows and a newer electrical panel.

  • Ask your homeowners insurance company if they provide automatic payment systems or web payment systems; these will make the process of paying your homeowners insurance easier, and may allow you to receive rate discounts from your homeowner’s insurance company.

  • Make sure you have adequate coverage, including replacement cost value. Make sure your valuables, such as antiques and jewelry, are also covered (these may require a separate policy).

  • Consider video taping your home for home inventory purposes. Walk from room to room, properly recording all furniture, electronics and personal items and store the videotape in a separate, safe location, such as a safety deposit box.

  • Consider purchasing separate insurance, depending on where you live. For example, you may want to purchase flood insurance if you live in a low-lying area, as standard homeowner’s insurance policies typically don’t cover flood claims.

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Home Owners Insurance Deciphered

Tuesday, December 22nd, 2009

Home owners insurance can be a bit confusing for new homeowners. We all hear the horror stories: home owners not taking out enough coverage or the right kind of coverage and then not being protected when their house burns to the ground. It pays to educate yourself about home owners insurance so you won’t be one of those homeowners stressing out about their coverage on their most important asset. To understand how homeowners insurance works, you must first understand the primary components of a homeowner’s insurance policy:

Structure - This part of your homeowner’s policy protects the obvious: your home’s structure. The structure aspect of your policy is there to provide coverage in the event of fire, smoke, lightening, theft and extreme weather. There are some types of weather conditions, such as floods, that are not covered under a standard homeowner’s insurance policy, so read your inclusions and exclusions carefully to make sure your coverage is comprehensive.

    When choosing the coverage amounts for your homeowner’s insurance policy, make sure to take into consideration the fact that you are covering your home’s entire value - i.e. the cost of replacing your home if it were a complete loss. Your policy should not simply cover the remaining mortgage balance, as this would certainly leave you short if you needed to rebuild or completely renovate.

    Personal Property - The personal property section of your homeowner’s insurance policy covers your possessions and personal property in the event of damage or theft. It is important to make a detailed inventory of your home’s possessions, including any jewelry, artwork or antiques. Make a written list, as well as a video tape of your home’s possessions, and store it in a safe place, away from your home. Doing so will make the process of claiming losses easier. Reviewing your personal inventory is also a good way of determining if your policy is adequate and if you require additional insurance on any valuable items.

    Liability - the liability section of your homeowner’s insurance policy is incredibly important, as it provides compensation for liability claims and medical expenses. In other words, it protects you should someone become injured on your property.

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      Insurance News: Florida Home Insurance Rate Hikes

      Wednesday, November 11th, 2009

      Although a recession typically forces the average American to reduce his or her spending in order to balance tighter budgetary constraints, some insurance companies have decided to increase the cost of coverage for various policy holders, making the current economic recession even more difficult to manage.  Specifically, some individuals living in Florida’s Lee County will reportedly be paying an estimated 10 percent more for their home insurance coverage.  As residents are outraged by the increase, some leaders are hoping to stand up and fight the unjust rate hikes.

      Insurance Issues among Floridians

      As states across the nation have reported higher home insurance costs and increases in recent years, many lawmakers are striving to require a state’s official approval and consent before proposed insurance hikes are passed onto policy holders; yet, despite this hope, many Florida home owners may not be able to catch a break from state officials any time soon.

      Unfortunately for many, state officials approved recent proposed insurance increases.  As a result, any Florida home owner with a specific sate-enforced policy will be forced to pay hundreds of dollars more for their annual coverage benefits.   This state-approved increase will result in an average insurance higher cost of 5.4 percent more for Florida home owners, as the impact of these rate hikes have specific implications for select area residents.  For example, one of the areas to be most significantly impacted by the rate hikes is Flordia’s Lee County, as approximately 7,000 Lee residents will be forced to pay up to 10 percent more for coverage.  Ultimately, the state’s decision to increase rates may impact nearly 1 million home owners across the entire state.

      While many insurance companies have been forced to raise rates as their business investments have declined due to recession-related issues, many Floridians are specifically outraged by this most recent insurance increase because the home owners impacted by the hike are those who have invested in Florida’s public insurance option.

      “Citizens Property Insurance Corporation,” the public option for individuals without private home insurance coverage, was initially created to help home owners of varying financial backgrounds to receive necessary ownership coverage and benefits.  While many policy holders are frustrated and upset, select insurance leaders assert that this increase will be applied to home owners over the course of several years, making the impact of these higher costs less of a struggle in the immediate future.

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      Insurance News: The Economic Impact of the Insurance Industry Bailout

      Wednesday, November 4th, 2009

      As many major companies have experienced remarkable financial losses in recent years, the United States’ Treasury Department has been forced to sift through the various companies’ needs and deficits to determine which institutions are in the greatest need of government assistance.  Specifically, the Treasury has been examining the specific needs of various life insurance companies, as many life insurance agencies have reportedly submitted applications for government bailout assistance.

      Insurance and Government Assistance

      TARP, the Troubled Asset Relief Program, has provided bailout funds for an array of banks as well as the larger auto companies.  Recently, the Treasury has been prompted to take a discerning look at the struggling life insurance providers, as leaders of the Treasury are seeking to quickly decide which corporations are the most viable.  According to the most recent reports regarding potential insurance company bailouts, the Treasury has not yet established the baseline criteria for evaluating each insurance company application.  Currently, as over 10 major life insurance providers have submitted applications for governmental assistance, both policy holders and potential new customers are eager to see whether or not the companies will be saved or left to sift through their deficits without federal aid.

      Unfortunately, because life insurance companies are considered to be more vulnerable to recessions and economic declines than other insurance providers, life insurance companies are nearly the only sector of the insurance industry that have requested a need for bailout assistance.  Adding more symptoms to the corporations’ illnesses, most of the life insurance companies with deteriorating financial stability have been subjected to lower ratings; once a company’s rating declines below AA status, their potential for signing new clients and business undoubtedly declines as well.

      While some feel that the life insurance industry’s outlooks are rather bleak, many experts assert that, if the Treasury is able to act quickly, funds from federal bailout stores can help rejuvenate the struggling insurance giants.  Treasury leaders hope to have clear criteria for insurance companies’ financial circumstance established within the coming days and weeks.

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      Are Health Insurance Costs on the Rise for American Families?

      Thursday, October 8th, 2009

      According to the latest reports from Congress, President Obama’s health care reform proposal will require all Americans to carry up to date health insurance policies.  While the insurance can be obtained from an employer, through a private company, or from the soon-to-be created government-run program, many middle class Americans are worried about how these new demands will impact their overall costs.  Specifically, as lower income families will be provided with reduced cost benefits, as well as potential tax credits towards health care, individuals earning slightly above the low income range are growing apprehensive about whether or not the changes to health care will actually benefit their loved one’s well being.

      The Reform in Progress: How the Middle Class May Be Impacted

      While the health insurance reform is still a working progress, as changes are being made and revisions are added each day, investigators have found out basic information about where the reform currently stands.  In examining the current rough draft of the proposal, critics are specifically concerned about the potential challenges that reform could pose on the average middle class families:

      • An average family of 4 with an annual income of at least $63,000 per year is considered to be middle class
      • Some estimate that this average family would pay over an estimated $7,000 to purchase private health insurance
      • The estimated $7,000 does not take into account doctor co-pays and medical care costs
      • The estimated $7,000 does not take into account rare but not uncommon expensive medical procedures (such as surgery, emergency care, etc)

      In examining these estimates, some members of Congress predict that the current health care reform plans would force middle class families to spend an average of 20 percent of their annual incomes on health insurance / health costs within the next 5 to 6 years!  Yet, in light of recent debates and concerns, experts are striving to remind all citizens, regardless of their “class,” that the reform is being carefully evaluated and altered continuously; optimistically, these potential detriments to the reform will be taken into account and altered before any bill is passed into law.

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      Who Really Benefits From Health Insurance Reform?

      Tuesday, September 29th, 2009

      As US Senate leaders have been debating and discussing the proposed changes to the country’s health insurance system, a new health care bill may soon finally be signed into legislation.  While many Americans are eagerly awaiting health care insurance reform, others are worried that the changes in policy will lead to a loss in their own current insurance coverage and protection.  To find out who benefits-the insured or the uninsured-take a look at the latest health insurance reform reports.

      United States Health Insurance Reform

      The Un-Insured

      Without a doubt, the millions of individuals across the country who are living without health insurance coverage will be the most likely to gain the greatest benefits from health insurance reform.  According to reports, individuals who are un-insured will be provided with insurance options and changes such as:

      • Access to more affordable insurance policies for workers without employer provided coverage.
        • Lower cost packages for individuals below the age of 26, as individuals 25 and younger are less likely to carry insurance. Packages for Americans 26 and younger will be cheaper with fewer coverage benefits
      • Options to purchase health insurance from state-run exchange programs
      • With state-run plans, individuals can opt for customized insurance packages, some of which will even offer minimal coverage levels at reduced costs (for reduced benefits)
      • Tax credits provided to the lowest income earners to help struggling families purchase their own insurance coverage (from a private provider or from the state)
        • For example, as Senate reports reveal, a family of 4 below an annual income of $22,000 would be protected from paying more than 2 percent of its annual income towards insurance premium costs / insurance related costs
        • The protection on insurance cost limits for families increases exponentially, depending on a family’s size and annual earnings; however, the Senate declares that a family of 4 with an income of a maximum of $88,000 annually would be protected from spending no more than 12 percent of their income on health insurance related costs

      The Insured

      While individuals without health insurance will certainly be able to gain protection and advantages from the proposed health reform plans, many individuals who currently carry insurance policies are worried about how these plans will impact their own tax costs, insurance rates, and coverage details.  Generally, experts assert that individuals with insurance can rest assured, as the proposed changes to the health insurance system should not force serious changes to those who are currently insured.  Specifically, reports reveal:

      • Individuals with insurance will be able to, in the majority of cases, simply keep their current plans (especially if coverage is already provided by one’s employer)
      • Insured individuals may become more protected, as reform is striving to protect workers from being dropped by insurance companies when a policy holder becomes ill or needs high-cost treatments / medical care
      • Insurance companies would be restricted in determining individual health histories to factor an insurance policy’s costs (ie: a history of diabetes could not significantly boost an individual’s health insurance costs)

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      Does Your Health Insurance Cover You for H1N1 Tests and Treatments?

      Tuesday, September 22nd, 2009

      As Americans are rushing to prepare for the potential spread of the H1N1 virus, many individuals are questioning whether or not their health insurance will cover any related costs associated with the illness.  To be sure you’re protected, find out the H1N1 symptoms, signs you may need treatment, and details about general health insurance coverage.

      Preventing H1N1

      While the only way to become infected with the H1N1 virus involves coming into contact with another person carrying the disease, experts are seeking to help the public prepare for potentially wide spread outbreaks in the coming months.  If you work in close proximity to others, such as in schools or in other congested areas, experts recommend obtaining the H1N1 vaccine as soon as possible.  Many state employees (specifically teachers) may be able to take advantage of free inoculations, as teachers and students are  generally more at risk for shared / communicable infections.  If you are not eligible for a free vaccine, contact your insurance company to find out how much the injection will cost.

      Seeking Medical Attention

      Yet, regardless of whether or not your vaccinated, if in the coming weeks or months you feel ill, you should know when to seek medical attention.  According to medical experts, the H1N1 virus presents itself with symptoms apparently similar to the standard flu.  Symptoms commonly include:

      • Fever
      • Cough
      • Sore throat
      • Chills / body aches
      • Headaches
      • Fatigue
      • Nausea / upset stomach / vomiting
      • Diarrhea

      If these symptoms appear, however, it does not automatically mean that you are inflicted with the H1N1 virus.  The only medically valid way to determine if you have the H1N1 is by seeking out a complete lab test conducted by an expert.  To find out if your insurance company covers the costs of H1N1 testing, contact your insurance company to ask the following questions:

      • Does the company cover all or a portion of lab tests? (If only a portion, then what percentage?)
      • What is the co-pay for a visit with lab tests?
      • Am I restricted to visit specific medical offices within a network?
      • Am I restricted to visit specific offices for blood / lab work?

      Treating the H1N1 Virus

      Upon undergoing a lab test for the virus, if your results turn to be positive, then you’ll need to seek medical treatment for the illness.  Generally, medications such as Tamiflu or Relenza can help to reduce and alleviate symptoms; however, individuals should contact their health insurance company to find answers to the following treatment-related inquiries:

      • Does the company cover the cost of prescription medications?
      • Is there a higher cost for generic vs. name brand prescriptions?
      • What are the co-pays for prescriptions?

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      Cut Down on Home Insurance Costs with Added Security System Protection

      Tuesday, September 8th, 2009

      While implementing a security system to protect your home will certainly provide you and your loved one’s with added assurance and comfort, the choice to install a home security system could also save you money on your home insurance policy. As home insurance premiums are partially based on the specific risks of one’s home, installing a security system reassures your provider that you are actively striving to prevent any burglaries, vandalism efforts, or other damages. Ultimately, as a security system reduces the potential risks of such damages, your provider will most likely provide you with reduced policy rates.

      Reducing Insurance Costs with a Home Security System

      As there is an array of options and features to choose from when purchasing a home security system, evaluate the following tips to ensure you’re able to gain the most advantages and savings from your security investment.

    1. Evaluate Your Policy - Before choosing a specific home security product / provider, contact your home insurance company to find out what specific discounts are available. Oftentimes, the more thorough your security system, the greater your savings, although this is not always the case! As each provider has its own unique discount policies and promotions, don’t waste money on a top of the line system unless you’re sure the investment will allow you to reap greater insurance cost savings.

    2. Finding the Right Fit - Before searching for a specific security system, consider the absolute reason(s) you’re interested in purchasing this added protection. Specifically, if you’re purchasing a security system for the sole purpose of reducing your home insurance costs, then be sure to do the math before you make any investments. Evaluate the overall cost of the security installation, premiums, and other fees to verify whether or not this investment is worth the actual home insurance discount savings.

    3. Comparison Shop - After evaluating the details of your policy and your provider’s regulations, begin searching for the best security system by comparing products, service providers, and various security packages. As you compare various options, ask the following baseline questions before making your final choice:

      4. * How much is the security installation fee?

      * Is there a cancellation fee?

      * What type of systems / products does the company offer?

      * What is the monthly service fee?

      * Will my premium / service fees / charges ever change?

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      Do You Need Extra Home Insurance Coverage for Your Unique Valuables?

      Friday, September 4th, 2009

      Do you possess unique and antique coin collections, one of a kind art pieces, sparkling pieces of jewelry or other rare valuables?  If so, find out if your home insurance policy offers coverage for these pricier fixtures. Without extensive coverage, your valuables may not be protected under a standard home insurance plan.


      A Standard Home Insurance Policy and Your Valuables

      Upon signing up for a standard home insurance policy, nearly all policies provide home owners with a limited amount of personal property coverage.  For example, under a standard home insurance policy, one’s personal possessions may only be insured for half of what your home is covered for.  Because one’s personal property, especially expensive and rare valuables, is more prone to theft, the coverage for these particular items is not generally included in a basic coverage policy.  Since theft, damage, or harm to one’s personal possessions is more likely than a major destruction to one’s home or property, an insurance company will typically try to avoid extensive coverage for these potentially costly and destructible personal items.

      Generally, insurance industry leaders reveal that a standard home insurance plan will generally offer coverage and protection for unique personal property items with limitations such as:

      • $200 for current or collected coins / bills
      • $1,000 for personal tickets, deeds, bank notes, and similar records
      • $1,000 - $2,000 for the loss / theft of jewelry, silverware, items made of gold and / or semi-precious stones

      Expanding Your Home Insurance Coverage

      If you possess unique and valuable collectibles or possessions that exceed the aforementioned general coverage allotments, then you may benefit from expanding your home insurance coverage features.  Specifically, if you possess rare antiques, pieces of art, or other potential investments, you may be eligible for coverage expansions if you are willing to have your valuables evaluated by a professional appraiser.  Typically, prior to securing a policy with additional personal property protection, most insurance companies will request an official appraisal report; however, some companies may allow you to send in a video and / or photographs of your possessions in order to prove their quality and current state of wear.

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      Health Insurance News: Will a More Competitive Market Lower Health Insurance Costs?

      Wednesday, August 26th, 2009

      As any capitalistic market functions more effectively with competition, leaders are concerned that a lack of competition among health insurance companies is resulting in huge costs for individual policy holders. In examining a lack of competition on a smaller scale, any American can simply imagine how, for example, a local pizzeria could demand incredibly high prices for its food when no other pizza restaurants are nearby to force lower rates. Once a new pizzeria comes to town and begins offering greater promotions and discounts, however, the pre-existing restaurant is subsequently forced to reduce its own prices in order to compete with the new, more enticing and affordable, competition.

      Similarly, as the debate over health care reform continues to gain attention and friction, new reports suggest that opening the current health insurance market to greater forms of competition would result in dramatic health cost reductions.

      Will Competition Lower Health Insurance Costs?

      Rumors have circulated that government reform of the current health care system would result in an elimination of competition among health insurance companies; however, recent students reveal that the opposite may be true. According to reports, major cities and areas across the country are only provided with two major health insurance competitors-when these few providers dominate the market, policy holders are unable to take advantage of competitive cost reductions and promotions.

      To combat this issue, many republicans and democrats in congress agree that the lack of competition among health insurance companies is causing immense consumer overcharges and fees. As such, some political believers argue that a government reform of the industry could offer a more equitable balance of costs and package deals, as the competition among insurance providers could be restored, allowing for policy holders to gain greater cost reductions and savings. As many political and economic leaders assert, health insurance companies currently have no incentive to negotiate with their policy holders, network hospitals, or other organizations. As a result, higher premiums can be more steadily sent along to the patients, as the patients are forced to pay the costs demanded by their health insurance provider.

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