Archive for the ‘Home Insurance’ Category
In the wake of recent disasters such as hurricanes in Florida, tornadoes in Texas, floods in Mexico, and fires and earthquakes in California (most recently, the gas pipeline disaster in San Bruno near San Francisco), you can never be too safe when it comes to household insurance. You want to make sure that your family will be able to recover after a disaster. But what does your insurance cover? It is more important than ever to go over your plan with your insurer to ensure that your coverage is extensive, especially with common types of disaster in your area.What needs to be insured? Property insurance and personal insurance are not membership, but should, in the same one. When you create a policy for your home, you should also nothing of value in your home as well as add. The expensive laptop or home computer you need for work or school, your new HDTV, something that should either be assured of great importance for you, or the high value. Some companies will even insure your furniture! What about upgrades and renovations? Many times, after adding a room or make any addition to a home, the insurance company pays set yet for your old home. What if you had to move a family member and had to build a new room? Or a new floor? However, if you need any kind of change to your home, which leads to the value of your home, make up, you should update your policy to reflect that. If you do not, you could end up getting what your house was worth at the time of purchase of your insurance, depending on how long it was, was a very small amount and unworkable. The times are dangerous, and It is extremely important, from everything that could possibly displace to protect your family. Insurance is one of the best ways to protect your family after a disaster.
Very few homeowners know the ins and outs of their household, although this is a very important aspect of their lives, and a very important part of their budget, too. As with everything else, it is also that if you understand the term, your homeowner’s insurance so that you upgrade to be able to make if necessary, or a claim against him, or even discounts and savings from him are taking – in short, create it.
Let us first examine why you want to update your home insurance, and when. Any insurance is only worth adding if it is sufficiently protected for you and an insurance policy that leaves you with little or no protection is as good as a non-existent insurance.
If you insure your house, you will be asked to take stock, or audit of your home, and explain the value of your home, including the structure, furniture and equipment, and other content that is valuable and you want to be replaced if it was ever damaged. They do this usually by do through all space and cuts have valuable things and everything, really, that you would be covered against fire, storm, or theft. They usually include here the equipment such as computers, televisions, furniture, stove, paintings, antiques, and sometimes even jewelry. The structure itself is used by the construction documents such as bill of materials, blueprints and other technical documents to build the house appreciated. Do not think, however, that you should only explain everything inside the house and apply them for the coverage – remember that they should use the price of the premiums, which are made by you and will you still exercise caution in the assessment redound to the contents of your home if you are willing to pay for sky-high premium prices.
Over the years, I’m sure you made improvements to your home, whether the structure (has a new room, changed the tiles, etc.) or with the content (bought a plasma TV, stereo surround system had), and if you do not update your homeowners insurance, these improvements and additions are not covered by the policy in the event of a claim, and you will stay with insufficient coverage. In fact, most insurance companies will advise you to be to influence any changes to your home that your homeowner insurance information here, even before you go ahead with the changes.
Let us now how to move savings provided by your homeowners insurance simply by understanding them well. Your insurance premiums are to be your insurer to rate how risky home-based charges, so the trick is always less premiums, and therefore always be some savings, it is your home less risky. The usual risks are taken into account the occurrence of fire and theft, and there are proven and accepted methods, how to reduce these risks.
Alarm systems are common practices and change in your normal locks dead bolts that secure the opportunities of common thieves breaking into your home. On the other hand, risks of fire by installing smoke detector systems and change your wiring safer and can be reduced to lower premiums even with a fire extinguisher in strategic places of the house. Again, the important thing to your insurer of modifications you have done to improve information to your home, and if they do not adjust your policy immediately, they’ll keep this in the next renewal period.
A home is probably one of the most important and expensive investments and assets you have, and it is only appropriate that it the right importance it deserves. Think not skimp on a few dollars, but only little or no protection for your home, you’ll be glad you invested in your home long-term insurance.
Even though there were no Florida hurricanes in 2009, there was plenty of news from Florida home insurance companies.
To begin with, nearly 50% of all active Florida home insurance companies lost money in 2008 – a year in which no major storms hit. Many companies continued to experience losses into 2009. Among the reasons for these losses include lower revenue due to inadequate Florida home insurance rates along with rising expenses.
As 2009 unfolded, two Florida home insurance companies failed and were placed in receivership by the state after their cash reserves fell below the required minimum levels.
Homeowners insurance companies failing during non-hurricane years should send fear and panic across the state. Why? Because if these companies can’t make money in non-hurricane years the odds increase dramatically that they will not be able to build up enough cash to pay your claim after a major Florida hurricane.
A closer inspection of the company that failed in the spring of 2009 reveals disturbing trends that could affect other Florida home insurance companies in the future.
For starters this company faced an onslaught of both new and reopened claims from Hurricane Wilma – a storm that struck Florida nearly four years ago in October of 2005. These claims contributed to the ultimate collapse of this company because its backup reinsurance from 2005 was exhausted, leaving this small company on the hook to pay these claims from its own surplus.
In addition, this company had a large number of policies in many of Florida’s southern, most hurricane prone counties in the state. To the company’s credit, it also showed good faith through its willingness to cover older Florida homes.
What are the lessons from the two Florida home insurance companies that failed this year?
Even if your company meets the minimum capital and reinsurance requirements in the State of Florida it can still fail for many reasons including unexpected reopened claims from prior years and inadequate risk diversification across both Florida and into other states.
Here are the things you should look for when considering a new Florida home insurance company.
The majority of the companies still writing new home insurance in Florida are based in the state. Look for companies that are diversifying their policy base across most of the 67 counties in Florida so that they have balanced their exposure in the southern coastal counties with policies written in the northern interior counties.
Look for companies that are growing their home insurance business into other states. Some Florida home insurance companies that came into existence in the mid 1990′s are beginning to do this which is an encouraging trend. Companies that distribute their risk into other parts of the country will have improved odds of surviving the next round of hurricanes.
Learn as much as you can about the company’s customer service and claims processing. If a company you are considering has outsourced this work find out what their customer service history is and how many complaints they have received relative to others in the industry.
Finally, find out how much surplus the company has available to pay claims and check on their ratings with the major financial rating services. Many Florida home insurance companies being granted premium rate increases should be able to show that they can grow their surplus over time – particularly if Florida continues to have below average hurricane activity.
You should take note of those Florida home insurance companies that were able to stay profitable in 2008 and 2009 when many other companies lost money – together with those that demonstrate the ability to use higher rates going forward to increase their surplus.
In this brave new world of newly formed start-up Florida insurance companies, doing this research will give you the best chance of being paid quickly and fairly after the next round of Florida hurricanes.