Posts Tagged ‘insurance companies’

Mold and your Homeowners Insurance: What you need to Know

Thursday, January 7th, 2010

Mold - in particular, the highly unhealthy black mold variety - can be more than a nuisance in your home.  An infestation of black mold in your home can cause serious health issues and even death; which is why you need to: (a) have your home checked for mold; and (b) make sure your homeowner’s insurance policy covers the cost of mold removal.

The Birth of Mold in a Home

Some insurance companies have excluded mold damage from their policies, particularly in areas known for high mold counts.  Although the deadly black mold has been found in all 50 states, there are some states and areas of the country that have been affected more; likely because of the climates and rainfall amounts. However, there are other things that can cause mold infestation in your home, including leaking or burst pipes and leaking roofs. Unfortunately, many people have growing mold in attics, basements or behind walls that they are unaware of until they start becoming ill.

It is important to understand, however, that mold just doesn’t pose health problems; it can also cause severe structural damage to a home.

Ironically, it is the new construction that often breeds mold, as newer homes employ energy-efficient construction practices, including tight seals and thick insulation, which trap moisture that leads to mold.

Does your Policy include Mold Infestation?

Most homeowner’s insurance policies do not cover mold infestation, unless it is a result of a covered peril, such as a burst pipe. However, non-covered perils, such as a slowly leaking pipe, are considered to be home maintenance issues, and are therefore often excluded in most homeowner’s insurance policies.

Some insurance companies limit the amount of a mold claim, while other homeowner’s insurance companies have completely excluded mold claims, regardless of whether they result from a covered or non-covered peril.

Many insurance companies have begun raising premiums as a result of an influx of mold claims, while others have simply begun limiting the claims. Because of these factors, it is extremely important to understand your homeowner’s insurance policy so that you can be better prepared to deal with a mold-related claim if it arises.

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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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How Cell Phone Habits Can Raise Your Auto Insurance Rates

Thursday, October 22nd, 2009

Before you reach to respond to that text or return that call as your cell phone rings, ask yourself if your desire to communicate is worth spending hundreds of dollars.  According to recent studies, the use of a cell phone while driving can lead to an incredible surge in auto insurance premium prices.  As cell phones are often attributed to accident-provoking distractions for drivers behind the wheel, setting your cell phone aside as you cruise along your commute can ensure that you’re driving with greater caution and greater savings.

Cell Phones and Auto Insurance

According to reports, drivers who tend to use their cell phone while operating a vehicle are far more likely to be involved in costly accidents.  As accidents ultimately cause insurance companies to fork out more money for repairs and damages, insurers are undoubtedly opposed to such hazardous habits.  In fact, some advocates opposed to cell phones while driving have equated the use of a cell phone to be as equally as harmful as driving while intoxicated!

Adding to the potential risks related to accidents and injuries, simply using a cell phone while driving can result in a serious fine and ticket.  As a rising number of states are banning the use of cell phones while driving, any citizens refusing to adhere to these restrictions can be hit with a large fine and a mark on their driving record.  In fact, if ticketed in some states, you may be additionally penalized with points on your driver’s license.  With a large number of points, your insurance company will undoubtedly view you as a less reliable driver.  As auto insurance rates are calculated using a formula that factors one’s accident, ticket, and overall driving history, even one ticket can lead to higher insurance costs.

Alternatives for Safe Cell Phone Use

Fortunately, if you feel you simply cannot avoid using your cell while driving, you still have safe and legally viable options.  With innovations, many recent car models come equipped with hands-free “blue tooth” features, allowing drivers to call, speak, and hear cell phone conversations through their vehicle’s stereo speakers.  Adding to this, cell phone companies now offer an array of hands-free gadgets to enhance the ease and safety of your use of a cell phone.  Ultimately, to avoid spending extra bucks on insurance, find out alternative options to replace the riskier hands-on cell phone habits.

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The Secrets to Insuring Your Teenage Driver

Tuesday, August 11th, 2009

Unfortunately, as drivers under the age of 25 are considered to pose the most likely threat to insurance companies, insuring your new teenage driver can be intimidatingly expensive! Since studies show that drivers under 25 have the highest rate of at-fault accidents on the road, any licensed driver in their late teens and early 20s will commonly pay higher rates than drivers 26 and above. Yet, using secrets of the industry, you can find ways to cut the cost on your teenager’s auto insurance plan-without making serious sacrifices!

Auto Insurance for the Teenage Driver

Adding to Your Plan

While your teenager’s age will certainly play a role in raising their auto insurance rates, you can avoid excess charges by adding them onto your own current insurance policy. As auto insurance rates are also influenced by a driver’s credit score, your credit history will most likely allow your teen to gain a lower monthly rate. Additionally, as some providers offer family discounts, parents who choose to add their son or daughter to their auto insurance policy can typically take advantage of multi-driver savings and promotions.

Opting for Inexpensive Vehicles

In addition to adding your teen to the family’s auto insurance policy, individuals who are hoping to save on a teen’s insurance costs should also look at cheaper vehicles. As a more expensive car or SUV will raise a driver’s insurance rates, opting for a cheaper mode of transportation can help to reduce the teen’s monthly rate. Yet, when choosing the best (and most affordable) option, be sure that the vehicle still has standard safety features. Specifically, features such as collision and airbags can help to further reduce the auto insurance rate.

Money and Monitoring

Lastly, one of the most modern methods for cutting back on insurance costs involves taking advantage of incredibly innovative tools of technology. In order to verify that a teen driver is adhering to safe practices and habits, some insurance companies provide / allow teens to install driving monitoring devices in their vehicles. These devices allow the insurance provider (and parents) to verify the teen’s average speed, his / her tendency to brake too quickly, and so forth. With positive proof of safe driving, an insurance provider may agree to cut back on the teen’s rates!

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Do We Need National Licensing for Insurance Brokers?

Friday, May 29th, 2009

Insurance companies have been around for hundreds of years.  Early insurance companies in America found that the best way of distribution was through independent salespeople, or brokers, who would sell their products on their behalf for a commission of the sale.

However, back when states numbered just over a dozen and the West was still uncharted and wild, there was no need for a national streamline process for licensing brokers.  Individual states were left to test, license, and discipline their own brokers.  And that is the way it has been ever since.

A Dawn of a New Age

But now we live in the 21st Century where we have a global trade climate and major insurance sell their products in all states and internationally.  Brokers who sell insurance in multiple states must be licensed in each and every state they do business.  However, there is now legislation in the U.S. Congress to streamline the process for insurance broker licensing.

The current bill in the House of Representatives, HR 2554, would establish a National Association of Registered Agents and Brokers (NARAB) who would be responsible for creating a single set of licensing requirements for all insurance agents and brokers.  NARAB would develop testing and licensing procedures, continuing education, and other standards for insurance producers which would be applicable in every state.

But would NARAB eliminate each state’s insurance agent oversight?  Not at all.  States would still be in charge of supervising and disciplining agents and brokers and to determine licensing fees for their state.

With so many insurance agents and brokers producing insurance sales in multiple states, it only seems reasonable that there be a national licensing standard.  And since this is a unified partisan issue, watch for this bill to pass quickly and set into law by the end of 2009.

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