Posted by Benji Riggins on January 20, 2012 under Flood | 
If you don’t think your home is at risk for flooding, think again.
People outside of high-risk flood areas receive one-third of disaster assistance for flooding and file more than 20 percent of flood insurance claims, the National Flood Insurance Program says. Floods happen in all 50 states — not just hurricane-prone coastal areas — and are the most common natural disaster in the United States.
“Maybe if you lived on top of a mountain along the Continental Divide, maybe then you wouldn’t need flood insurance, but that’s about the only place you don’t need it,” says J. Fletcher Willey Jr., president of The Willey Agency in Nags Head, N.C.
Yet flood insurance is one of the most misunderstood types of insurance coverage. Here are eight facts to clear up some of the most common misconceptions about coverage through the National Flood Insurance Program:
1. No flood coverage under home insurance
Many people still assume standard renters and home insurance covers floods, says Larry Case, executive vice president of the Missouri Association of Insurance Agents. But you must purchase a separate flood insurance policy to protect your home and belongings from flood damage.
Most flood insurance is provided through the National Flood Insurance Program, administered by the Federal Emergency Management Agency. You can buy federal flood insurance from companies and agents certified to sell it if your community participates in the National Flood Insurance Program.
2. Flood insurance has caps
The amount of coverage you can buy through the NFIP is capped at $250,000 for a home’s structure and $100,000 for contents.
If you want more coverage, you have to buy excess flood insurance, which is sold by private insurance companies. The excess policy covers the cost of flood damage over and above the $250,000/$100,000 caps.
3. Coverage limited in basements
The distinctions can be tricky, so read the policy for details. Some structural elements in the basement are covered, such as central air conditioners, foundation walls, electrical outlets, furnaces and hot water heaters. However, carpeting and floor tile are not covered.
Some appliances in the basement are covered, such as washers and dryers, portable air conditioners and freezers. But refrigerators are not covered. Most personal belongings–including furniture, clothing and electronic equipment–are not covered when they’re in the basement.
4. Building and contents insurance required
A standard home insurance policy automatically covers personal belongings up to a certain percentage of the home’s insured value. With flood insurance, you must purchase contents coverage as well as building coverage to get both.
5. No additional living expenses provided
If your home is destroyed by fire, homeowner insurance pays for the cost to rent comparable living quarters until the house is rebuilt. But flood insurance does not include coverage for additional living expenses. You foot the bill to rent a place to live while your home is being repaired after a flood.
6. No replacement cost coverage for personal belongings
Unlike standard home insurance, which lets you purchase replacement cost coverage for personal belongings, flood insurance features only actual cash value coverage for possessions.
Replacement cost coverage reimburses you for the cost to buy a new item to replace a destroyed belonging. Actual cash value coverage takes depreciation into account and reimburses you for the value of the item at the time it was destroyed. So if a flood destroys your 3-year-old television, flood insurance reimburses you for the value of a used TV–not for the cost to buy a new one.
To qualify for replacement cost coverage to rebuild part of a destroyed building, the home must be your principal residence, and you must have insured it for at least 80 percent of the cost to rebuild or up to the $250,000 cap. Otherwise, reimbursement for rebuilding is based on the actual cash value.
7. Limited coverage on valuables
The coverage for valuables, such as furs and fine art, is limited to $2,500. Currency, precious metals and valuable papers, such as stock certificates, are not covered at all.
8. No flood coverage for hot tubs and swimming pools
Flood insurance doesn’t cover property and belongings outside the home. That includes hot tubs, swimming pools, decks, patios, fences, landscaping, walks, wells and septic systems.
Likewise, flood insurance pays for removal of debris in or on the home’s structure, but not in the yard, Willey says.
Finally, don’t wait until water is lapping at the front door to purchase a policy. Flood insurance has a 30-day waiting period from the date of purchase until the time it goes into effect. The only exceptions are if you’re buying additional insurance when renewing a policy or as a result of a map revision, or if a lender requires flood insurance for a home loan.
Read more: http://www.foxbusiness.com/personal-finance/2011/11/01/flood-insurance-misconceptions-8-facts-should-know/#ixzz1ckCWMw4n
By Barbara Marquand
Posted by Benji Riggins on January 17, 2012 under Interesting Info |
New federal safety data shows texting while driving increased 50 percent last year, despite a rush by states to ban the practice.
The National Highway Traffic Safety Administration does an annual survey that watches drivers’ behavior at selected intersections. The latest study caught less than 1 percent texting or manipulating hand-held devices. But it shows that activity increased to 0.9 percent last year, up from 0.6 percent the year before.
The share of drivers speaking in headsets also increased, although hand-held cellphone use remained flat.
The increase in texting while driving came despite bans on the practice in many states. Last month, Pennsylvania became the 35th state to impose a ban.
Tags: auto ins, car ins, driver safety, home ins, homeowner ins, homeowners ins, insurance agency, insurance agent, text, texting, vehicle ins
Posted by Benji Riggins on January 12, 2012 under Insurance News |
One of North Carolina’s largest homeowners’ insurers says it is considering canceling the coverage of up to 70,000 homeowners unless the state Legislature makes changes allowing it to charge higher rates.
North Carolina Farm Bureau Executive Vice President Steve Carroll recently told state lawmakers that the insurer may have to cancel the policies in order to reduce its exposure and make its homeowners’ book of business profitable.
He said that the insurer needs more leeway to enact higher rates, especially given the rising cost of reinsurance, which he said is expected to double as a result of the losses incurred from Hurricane Irene and the spate of tornadoes that touched down in the state last spring.
Carroll estimated that 40 percent of the insurer’s premiums will go towards purchasing reinsurance next year.
“To continue to write property insurance the way we have in North Carolina, we have to have higher rates,” said Carroll.
The North Carolina Rating Bureau negotiates rates on behalf of the 621 property insurers in the state. The proposed rates are then approved, disapproved or modified by the insurance commissioner.
Speaking before a joint legislative Committee on Property Insurance Rate Making, Farm Bureau’s Carroll said the current regulatory structure is workable. However, he said, more emphasis needs to be placed on reinsurance costs and the use of computer models when developing loss estimates.
The Raleigh, North Carolina based-insurer is already making other underwriting changes that could leave an additional 28,000 homeowners scrambling for coverage elsewhere.
Effective January 1, the insurer is following the trend of other carriers to cancel homeowners if they insure their automobiles through another company. The insurer is also canceling homeowners who filed a claim within the last five years.
If the insurer follows through and drops the 70,000 homeowners in addition to the 28,000 policies it is already non-renewing, it would lose about 20 percent of its homeowners’ book of business.
According to the department of insurance, the North Carolina Farm Bureau is the third largest homeowners’ insurer in the state with a 13.9 percent market share.
By Michael Adams | December 29, 2011
Posted by Benji Riggins on January 9, 2012 under Insurance News |
Residents in North Carolina will see a rate decrease when it comes to their dwelling fire coverage while at the same time seeing no change in the cost of their dwelling extended coverage.
North Carolina Insurance Commissioner Wayne Goodwin has ordered a statewide average 7.3 percent reduction in the state’s dwelling and fire policies, which are offered to non-owner occupied residences including rental properties, investment properties, and places not occupied full-time by the property owner. A dwelling fire policy typically does not include liability coverage.
Goodwin also denied a request from the state North Carolina Rate Bureau, which sought a statewide average 36.1 percent increase in extended coverage. The extended coverage policies generally cover physical damage due to wind, hail, fire, smoke, riot, civil commotion, aircraft, and vehicle damage.
After holding several public hearings, Goodwin said he was comfortable with his decisions.
“I found that that the requested increase in extended coverage rates for properties is not warranted and I disapproved the request because it would have led to excessive and unfairly discriminatory rates,” Goodwin said. “Additionally, dwelling policyholders will have the benefit of decreased fire rates.”
By Michael Adams |
Posted by Benji Riggins on December 31, 2011 under Safety |
One way to help lower personal and business cyber risk is to avoid using easy-to-crack passwords. SplashData, a password management application maker, recently compiled a list of the 25 worst passwords for the year 2011.
The research results were based on millions of actually stolen passwords that were made available online.
Having tough-to-guess passwords may not necessarily deter sophisticated, determined hackers. But they do make it much more difficult for amateur cyber thieves to breach online accounts. Here is the list of this year’s worst online passwords.
1. password
2. 123456
3. 12345678
4. qwerty
5. abc123
6. monkey
7. 1234567
8. letmein
9. trustno1
10. dragon
11. baseball
12. 111111
13. iloveyou
14. master
15. sunshine
16. ashley
17. bailey
18. passw0rd
19. shadow
20. 123123
21. 654321
22. superman
23. qazwsx
24. michael
25. football
Tags: auto ins, car ins, cyber safety, home ins, homeowners ins, insurance agency, insurance agent, password, password safety, Safety, security
Posted by Benji Riggins on December 27, 2011 under Flood |
The federal flood insurance program has been extended until May 31, 2012 under another short-term consolidated appropriations bill (H.R. 2055) passed by the House and Senate and signed into law by President Obama on Dec. 23.
Had the appropriations bill not passed, the National Flood Insurance Program’s authority to issue new or renewal flood insurance policies would have expired at midnight on Dec. 23.
Insurance agents— the Independent Insurance Agents & Brokers of America (Big “I”) — applauded the reauthorization while continuing to press for a longer term authorization and program reforms.
“It is important to note that our work on this important issue is far from over and the next few months provide ample opportunity for Congress to pass long-term extension and reform legislation that provides the necessary certainty for consumers,” said Charles E. Symington Jr., Big “I” senior vice president for government affairs.
Symington noted that Congress has traditionally extended the program for five year periods in order to provide stability for the marketplace; however, for the last few years Congress had only extended the program for short periods, mostly from 30 days to six months.
“Today’s extension, although greatly appreciated, is just a temporary patch,” said John Prible, Big “I” vice president for federal government affairs.
Posted by Benji Riggins on December 22, 2011 under Safety |
Many people are planning year-end holiday festivities. But a report says there are many dangers lurking at these events. And people aren’t paying enough attention.
A MetLife Auto & Home American Safety Pulse Poll says only about a third of potential hosts are concerned about common safety issues. The poll shows many potential hosts are failing to take precautionary steps to prevent unnecessary accidents.
Only about 40 percent are concerned about whether their guests might get involved in a drunk-driving-related accident after consuming alcohol on their property. The majority are not concerned about the potential to be named in a lawsuit should a guest get involved in a drinking-and-driving accident.
Most states offer an injured person, such as the victim of a drunk driver, a method to sue the person who served the alcohol.
The poll also found that two-third of those surveyed weren’t concerned about the potential theft of personal items at the party, despite the fact that in addition to inviting family (86 percent) and close friends (74 percent) to their homes, many people planned on inviting guests they are less familiar with, including neighbors (44 percent), co-workers (31 percent) and casual acquaintances (26 percent). The majority of party hosts (59 percent) said they would not restrict the party to a designated space, meaning the guests would be free to roam around the premise.
More than 60 percent of the party hosts said they have no plan to move or hide their valuables during their festivities.
The poll also noted that many people are planning to leave their homes for an extended period during this holiday season. But one in five travelers said they weren’t concerned about locking all doors and windows, the MetLife poll found. Some 40 percent have no plan to set lights on a timer system or leave lights on while they are away.
Posted by Benji Riggins on December 16, 2011 under Safety |
Hosts Seem Unconcerned About Safety, Liability
As it gets a chillin’, it’s the perfect time to strike the fire, and enjoy the company of family and friends. Opening up one’s home during the holiday season is a heart-warming gesture. All the excitement, however, has some hosts overlooking basic safety issues.
According to MetLife Auto & Home’s American Safety Pulse Poll, only about one-third of potential hosts are concerned about avoiding common safety issues, and taking precautionary steps to prevent unnecessary accidents.
This lack of concern is reason for big worry, considering the last two year’s claim trends during the month of December. For MetLife Auto & Home, fire claims frequency increased by 12.5 percent in December 2009 and 2010. Theft claims frequency increased by 7.7 percent.
“The holiday season and transition to winter in many parts of the country generates higher frequency [certain types of home-related claims] than previous months,” explains Tim Bowen director of homeowners’ claims with Metlife Auto & Home. “We see theft frequency increases around the holidays with claim notices indicating that gifts/recent purchases were stolen. Heating systems are also being used with greater frequency at this time of year and we see more ‘puff back’ type losses with oil fired systems.”
There are a number of everyday safety issues many tend to overlook while planning their parties.
Too Many ‘Cheers’
According to the National Highway Traffic Safety Administration (NHTSA), there is an increase in alcohol-related car crashes and fatalities over the holidays. Yet, fewer than half of Americans or 42 percent are concerned that one of their guests would be involved in a drunk-driving-related accident after consuming alcohol on their property. Fifty-eight percent of respondents to the MetLife Auto & Home survey are not concerned about the potential to be named in a lawsuit, should a guest be involved in a drinking and driving accident.
Blazing Holiday Spirit
Decorating is essential to set the mood for festivities. This holiday season, 91 percent of people plan to decorate their homes, but many may be inadvertently exposing their home and guests to an increased risk of fire, if they’re not careful.
“Only 32 percent of those polled expressed concern that their decorations might pose a fire risk to their homes and to their party guests,” says Mike Convery, chief claim officer and vice president of MetLife Auto & Home. “It’s important for hosts to exercise caution with their decorations, especially wax candles, as December has more candle-related fires than any other month of the year, according to the National Fire Protection Association (NFPA).”
The Grinch Didn’t Steal Christmas
Only one-third of those surveyed expressed concern about the theft of their personal belongings during a party. Many are inviting family (86 percent) and closer friends (74 percent) to their homes. Others plan on inviting less familiar guests, including neighbors (44 percent), co-workers (31 percent) and casual acquaintances (26 percent).
Not Home for the Holidays
Many people are planning a holiday trip, instead of a party, as is the case for 65 percent of those surveyed. However, 19 percent of the respondents said they would not lock all doors and windows before hitting the road. Only 61 percent said they would leave lights on or set lights on a timer system when they are away, potentially putting their homes at risk for a burglary.
This is the third survey in the American Safety Pulse polls series conducted MetLife Auto & Home by ORC International. MetLife Auto & Home, a brand of Metropolitan P&C Insurance Company and its affiliates, is one of the nation’s leading personal lines P&C insurance providers.
MetLife Auto & Home has compiled essential holiday party safety information here outlining how Americans are planning for their parties and some potential pitfalls they may face.
Source: www.metlife.com
By Melissa Stewart
December 13, 2011
Posted by Benji Riggins on December 9, 2011 under Interesting Info |
A lawyer in Charlotte, NC purchased a box of very rare and expensive cigars, then insured them against fire among other things. Within a month, having smoked his entire stockpile of these great cigars and without yet having made even his first premium payment on the policy, the lawyer filed a claim with the insurance company.
In his claim, the lawyer stated the cigars were lost “in a series of small fires.” The insurance company refused to pay, citing the obvious reason: that the man had consumed the cigars in the normal fashion. The lawyer sued….and won! In delivering the ruling the judge agreed with the insurance company that the claim was frivolous. The judge stated nevertheless, that the lawyer held a policy from the company in which it had warranted that the cigars were insurable and also guaranteed that it would insure them against fire, without defining what is considered to be “unacceptable fire,” and was obligated to pay the claim. Rather than endure lengthy and costly appeal process, the insurancecompany accepted the ruling and paid $15,000.00 to the lawyer for his loss of the rare cigars lost in the “fires.”
But… After the lawyer cashed the check, the insurance company had him arrested on 24 counts of ARSON! With his own insurance claim and testimony from the previous case used against him, the lawyer was convicted of intentionally burning his insured property and was sentenced to 24 months in jail and a $24,000.00 fine.
