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Friday, August 02, 2013

Online Insurance Information

Monday, November 12, 2012

How Credit History Affects Car Insurance

Understanding how your credit history may affect your car insurance coverage!

Many personal auto insurance companies consider your credit information when determining how much premium to charge for your insurance. So if you are calling around for new insurance, keep in mind that many insurers are looking at your credit history. I hope that we will be able to let you know why and how they do this.

The reason that some insurance companies use credit information is because there is a direct correlation between consumer's credit history behaviors and expected claims that may occur. Therefore, they feel that people with better credit behavior are less likely to have severe insurance losses.

The companies that do use credit scoring will still use other factors in determining your premium. They will also use your age, driving history, type of vehicle, where you live in determining how much you should pay for your insurance. Therefore, if you have not established a credit history yet, the companies that use credit history may not be best for you. They may not allow you to be eligible for certain discounts, which could result in higher premiums.

Is it fair for an insurance company even look at my credit information without my permission? The answer is yes. The Federal Fair Credit Reporting Act says "Reasonable procedures. It is the purpose of this title to require that consumer reporting agencies adopt reasonable procedures for meeting the needs of commerce for consumer credit, personnel, insurance, and other information in a manner which is fair and equitable to the consumer, with regard to the confidentiality, accuracy, relevancy, and proper utilization of such information in accordance with the requirements of this title." Found at http://www.ftc.gov/os/statutes/fcra.htm
If you feel that your credit history is better then the insurer can find, make sure the insurer has your correct name, address, social security number, and date of birth.

Some insurance companies will look directly at your actual credit reports when determining your rate, however most will use what is called an "insurance credit score." An insurance credit score is developed by using statistical techniques and methods to predict the likelihood a consumer will have a higher than anticipated loss. These are similar to what lenders use to predict the reliability of an applicant repaying a loan.
Insurance companies use many factors in determining your credit score. Here are some examples of those factors:

Public records: bankruptcy, collections, foreclosures, liens, charge-offs, etc.
Past payment history: the number and frequency of late payments and the days between the due date and late payment date.
Length of credit history: the amount of time you have been in the credit system.
Inquiries for credit: the number of times you have recently applied for new credit, including mortgage loans, utility accounts, and credit card accounts.
Number of open lines of credit: the number of credit cards, whether you use them or not.
Type of credit in use: major credit cards, store credit cards, finance company loans, etc.
Unused credit: how much you owe compared to how much credit is available to you.

Your insurance credit score may differ from company to company, as they will use different factors in determining your premium. Notice that we call it an insurance credit score. This means that it encompasses many factors including credit.

Since each insurance company uses different techniques to determine your credit score it is hard to tell you what a good credit score is. Usually a good credit score will result in lower premiums.

Your agent or company is not obligated to tell you your credit score. In fact, they might not even know what it is. All they usually know is that your credit score qualifies you for a specific rate or policy. Some companies also offer better rates under each qualifying tier.

If you feel that there is incorrect information on your credit report, you should tell the credit bureau. If you report an error, the credit bureau must investigate the error and get back to you within 30 days. You can ask the credit bureau to send a notice of the correction to any creditor or insurer that has checked your file in the past six months. Once the errors are corrected, it is a good idea to get a new copy of your credit report several months later to make sure the wrong information has not been reported again.

The three national credit bureaus are:
Trans Union (www.transunion.com or 800-888-4213).
Equifax (www.credit.equifax.com or 800-685-1111).
Experian (www.experian.com or 888-397-3742).

Tell your insurance company. Do not wait until the credit bureau investigates the errors to contact your insurer. Tell your insurance company right away and ask if the errors will make a difference in your insurance. If the errors are big, tell your insurer that you are disputing the information and ask if they will wait to use your credit information until the errors are corrected. Small errors may not have much affect on your insurance credit score. If the errors are big, it can make a significant difference in your premium. Some companies are unable to adjust the premiums until the score is corrected, but it does not hurt to ask.

If you have taken the steps to improve your credit score, you should ask your insurance company to re-evaluate your credit score at renewal.

Saturday, November 10, 2012

Car Insurance Discounts

Discounts Car Insurance

Trying to save money wherever you can is important to us all. Insurance should be no different. Do not assume that your agent knows everything about you and your vehicle. Car Insurance goes out of their way to find all the possible discounts that are available to each customer.

Drivers should take advantage of all discounts that many providers offer, that can significantly reduce the cost of car insurance. Understanding discounts and how they can affect auto insurance premiums can help smart shoppers make better decisions about their coverage and possibly save themselves some money in the process.

Read below to identify possible discounts that could help you save on auto insurance this year. Other than discounts, there may be some other ways for you to save on your insurance premiums. We will go over several discounts that can help with your current situation.

First, there are discounts for Auto Safety features. Certain states will give you discounts for anti-lock breaks. Make sure you know if it is two or four wheel anti-lock break vehicle. Automatic seat belts and airbags are frequently discounted on your insurance premiums. In most states, a defensive driver class discount may apply. If the principal driver usually 55 years old or older has completed an approved defensive driving class a discount could apply. Keep in mind that most states will only approve this class if it is voluntary meaning that it was not the result of a violation or infraction.

Some insurers will give you a discount for having multiple vehicles. In some cases, this will only apply if you have two or more drivers. If you have a clean driving record, meaning you do not have any tickets, accidents or suspensions in the last three years (some companies require five years) then you could be eligible for a safe driver's discount.

Many companies will reward you with staying with the same insurance company for many years without any accidents reported. They will offer you a renewal discount. It makes sense, you have carried insurance with a company for several years, and have not had an accident, your insurance company likes you and wants to reward and keep your business. Some companies honor you with a discount if you had prior limits on your previous policy. They discount you because they understand you are a better risk.

Conversely, if you do decided to change insurers a proof of prior insurance discount may apply. Most insurers request at least 6 months of consecutive insurance from the previous insurer. If you are a full-time student who meets certain grade requirements and are unmarried and usually under 25 years of age (some states the age is 21) you could be eligible for a good student discount. If you own a home, including condominium, town home, or mobile home, which is used as a principal residence, a discount could apply. Military personnel either currently active or retired from any branch of the US military a discount could apply. If your vehicle is equipped with an anti-theft device, a discount could apply.

You could lower the cost of your insurance in other ways.

For people who own older cars, it may not be necessary or cost-effective to protect them with collision and comprehensive coverage. By comparing the book value of your vehicle and the premium that the insurer has offered, you may find that it cost as much for the insurance as it does for the vehicle. If the car is worth less than $2,000, you will probably spend more insuring it than it is worth. The whole idea of driving an older car is to save money, so why not get what is coming to you.

In addition, keep in mind that the type of vehicle you buy could greatly affect your premium. A flashy red sports car is usually going to cost more to insure than a mid sized sedan. This is also true of vehicles that are on the list of most stolen. There are many ways that policyholders can save on their insurance. Knowing more about auto policies and premiums can help consumers take advantage of less obvious discounts while ensuring that they have the appropriate protection for their vehicles. The last way to save is to assume more risk. If you chose higher deductible on your Personal Injury Protection or Comprehensive and collision coverage will lower your premium as well. The deductible is the amount of money you have to pay before your insurance company begins paying the rest.

Understanding how discounts affect your insurance rates is important to save you money.

15 Ways to Lower Car Insurance Quote

Lower Your Car Insurance Quotes

1. Shop around

The difference in price between various companies can be significant. What one company may consider a high risk factor another company may not view as so important. Insurance companies arrive at a price for your car insurance by adding or discounting money after each answer you give to the questions they ask you. Each company has its own rules as to what they consider should increase or decrease your premium. By shopping around you get a better list of prices to compare.

2. Buy a lower group car

One of the important factors that insurance companies take into account is of course your vehicle. There are thousands of different cars on the road so companies divide them up into groups. Most companies will adopt the ABI (Association of British Insurers) group rating. This splits up vehicles into 20 different groups. Generally speaking the higher the group rating for your vehicle, the higher your premium will be. Some companies may also combine your driving experience with the vehicle group to get a better idea of how high the risk is. This is one of the reasons why young drivers should consider buying a lower group car if they want to lower their insurance cost.

3. Consider Third Party Only cover

A Third Party Only insurance policy is the minimum amount of cover legally required - it is also the cheapest. Generally speaking you should consider opting for this type of policy if your vehicle is of low value. In the unfortunate event of having an accident, any damage to a third party vehicle will be covered but any damage to your vehicle is not. However, if your vehicle is of little value then you may not be too concerned. It may not be worth paying extra for a Fully Comprehensive policy in these circumstances.

4. Maintain a good credit rating

More and more insurance companies are adopting credit scoring techniques as part of the overall calculation of your car insurance premium. By keeping a good credit history you may avoid any additional premium that companies add to your price for having a bad credit score.

5. Buy on the web

Many insurance providers now offer some good discounts for buying the policy over the internet. The theory is that by purchasing your insurance over the web, you are saving the company money by not requiring telesales agent time and incurring free-phone costs. This saving is passed on to you in the form of a discount for buying online. If you have got prices by telephone then check your quote again on their website, you may be surprised at how much cheaper it is.

6. Have a higher voluntary excess

During the quotation process you will be asked how much voluntary excess you want to have. Insurance companies will generally include a compulsory excess amount on the policy but give you the opportunity to increase this if you wish. The more the voluntary excess the lower your premium should be. However, in the event of a claim, you will have to pay a higher amount yourself, up to the total amount of excess on your policy.

7. Reduce your annual mileage

How many miles you do a year is a common question that can affect your car insurance premium. The more miles you do the more your premium is likely to be. Quotation systems and telephone agents will often suggest an amount of miles for you. Try and work out how many miles you will genuinely do. It may be less than the amount suggested. Of course, you should always give an honest answer to this and other questions.

8. Keep a clean driving record

This may be easier said than done. However, by having few or preferably no driving convictions, you can avoid being penalized by increases in your car insurance premium. Getting caught with a speeding fine is often not the only financial penalty you incur. Insurance companies take very seriously all driving convictions and it is usually an important part of their rating process. You can expect an increase in the cost of your insurance if you do get caught with a driving conviction, so it pays to be a safe driver.

9. Keep claim free

This ties in neatly with number 8 above. The biggest factor affecting the cost of your car insurance premium is how many No Claims Bonus Years you have. Full No Claims Bonus is generally considered by most companies to be five years or more, this can give you huge discounts, in some cases up to 75%. By being a safe driver and avoiding potential claims, you can continually benefit by building up your number of claim free years. Every additional No Claims Bonus year you get, the lower your car insurance cost should be. Some companies give you the option of paying a bit more on your premium to protect your No Claims Bonus.

10. Be realistic about the value of your car

Most of us have an inflated view as to what our car is worth. When asked the value of your vehicle during the insurance quotation process, people will often state an amount that is unrealistic and above the real value of the car. People do this as they believe that this is what they will get back from the insurance company in the event of a claim. The reality is that the company will only pay out what the car is worth at the time of the claim and not what you stated for the quote. In fact, by giving a high and unrealistic value, you can increase your car insurance premium as this is often a factor affecting your final price.

11. Remove unnecessary named drivers

Additional drivers on your policy usually mean a higher premium. A lot of people add a number of extra drivers on the policy just in case that person needs to drive the car. However, having all these drivers will push up the cost. By only naming drivers on the policy that will definitely driver the car, you can lower the final cost. If you find that an unnamed driver needs to drive the vehicle then most companies will allow you to temporarily add a new named driver for a small cost.

12. Improve your car security

Theft of and from your vehicle are important considerations when insurance companies calculate your price. Most companies will give you a discount for having better security of your vehicle. An alarm and immobilizer will usually attract a small discount whilst having a tracker device installed may give you a larger reduction. Some companies may insist on having such devices installed on more expensive and desirable cars before they even consider offering you a price.

13. Take an advanced driving test

Although not compulsory, taking an advanced driving test can not only improve your driving skills but also help to lower your car insurance premium. Some companies look favorably on people who have taken the advanced test as it shows commitment to safe driving thus lowering the chance of having a motoring accident.

14. Pay your premium in one go

By paying for your car insurance all in one go, you can avoid paying additional interest charges that would be added on if you opted to pay by installments. The interest charges can be quite significant, so if your finances allow, you can save a good amount of money by paying for the whole lot up front. In some cases, companies may even give you a small discount for doing this.

15. Get married

Okay so this may seem like a dramatic final way to lower your premium. However, a number of insurance companies offer lower premiums when your named drivers are insured and spouse as opposed to two unmarried drivers. Some companies believe that this shows an element of stability which is a hallmark of safer drivers and give you a discount on this basis.

Sunday, November 04, 2012

Tips to Keep Your Home Insured Against Flood Damage

Hurricane Season : Tips to Keep Your Home Insured Against Flood Damage

A few days shy of hurricane season, time is quickly ticking for consumers to take action against financial ruin in the event of catastrophe. With an increased amount of hurricanes anticipated this season, the National Oceanic & Atmospheric Administration urges folks to prepare for the worst. The NOAA reports that approximately 13-17 storms will be named and seven to 10 will likely become hurricanes.

So what do you need to do to prepare? Don't run to the home improvement store just yet. Plywood and duct tape won't prevent or fix damage from a hurricane. Because hurricanes bring torrential rains and cause extensive flood damage, you need to be sure you've purchased flood insurance.

"But doesn't my homeowner's insurance take care of flooding? I thought homeowner's insurance was supposed to cover things like this?"

While it seems logical that homeowner's insurance would cover flooding, it does not. With FEMA reporting flooding as America's #1 natural disaster, it makes sense to look into purchasing flood insurance.

You have several options when it comes to purchasing flood coverage. The National Flood Insurance Program offers two federal programs. The main stipulation for these programs is that your community must enroll and be an NFIP participant. This flood insurance can be purchased directly from the NFIP or from some insurance agents.

"But do I have to buy flood insurance when there is a national disaster program that will assist me?"

Because both programs provide coverage for flood damage, you don't HAVE to purchase flood insurance. Like many government programs, however, national disaster assistance requires much more paperwork and waiting than flood insurance does.

In addition, flood insurance does not have to be re-paid. Most disaster assistance comes in the form of a loan, so it has to be re-paid over a set amount of time. Disaster assistance is only guaranteed when the president puts it into effect – and even then you have to wait for reimbursement.

In short, keep in mind that FLOOD INSURANCE IS NOT INCLUDED in your homeowner's insurance policy. If you need to apply for flood insurance, start preparing ASAP. Unless you just built your house, there is a 30-day waiting period between when you apply for the insurance and the date it goes into effect. With a little more than a week before hurricane season and 30 days for your policy to take effect, don't let time slip away with the lazy days of summer unless you're insured for flood damage.

Prepare With Flood Insurance Coverage

Are you Prepared With Flood Insurance?

The Federal Emergency Management Agency (FEMA) reports that flooding is America’s #1 natural disaster. From snow melts and flash flooding to tropical storms and dams that have reached capacity, the potential for flooding should always be considered, regardless of where your home is located.

With hurricane season less than a month away, its prime time to be considering flood insurance. Why should you purchase flood coverage? Well, the important fact to be aware of is that homeowner’s insurance policies do not cover flood damage or ground water damage from heavy rain. So, even if you’ve purchased a significant amount of homeowner’s insurance and your area experiences heavy flash flooding, damage to your dwelling will not be covered unless you have purchased flood insurance.

Aside from purchasing insurance

There are a few things you can do to reduce your risk of flooding or experiencing flood damage. The best way to reduce the risk of your home truly being flooded would be to avoid living near a body of water, including rivers and streams. Living in a house on top of a mountain or large hill could also do the trick. If living up in the hills isn’t for you or if you insist on living near water, however, flood insurance is your best protection.

What types of flood insurance are available?

Flood insurance is available through two different avenues – the sump pump failure/sewer backup endorsement and The National Flood Insurance Program.

The sump pump failure backup endorsement does not cover true flooding – it simply covers water seepage and runoff. While coverage will vary with each insurance company, keep in mind that this coverage only takes effect if you have a sump pump and only if it does not properly take care of the seeping water.

FEMA established the National Flood Insurance Program (NFIP) in 1968. This program only has one requirement – that you live in a community that participates in the program. This coverage is available in two packages –Emergency program and the Regular program. The programs’ distinctions are quite simple. The Emergency program is set up for houses in communities that have applied for, but have not yet been accepted into the NFIA. The Regular program is for homes that are in participating NFIA communities.

Neither the sump pump backup endorsement nor the NFIA completely cover the risk of flooding.

Residential Insurance Coverage

Residential Coverage

Residential coverage protects against damage to or destruction of your residential structure. In other words, if your home is destroyed by a tornado, fire, or whatever your policy covers, the insurance company completely replaces or repairs your home.

In this section of coverage, the most important reason to keep your homeowner’s insurance policy updated is because, in the event of disaster, the insurance company will only reimburse you for what your home is insured for.

For example, you purchased your home and homeowner’s insurance five years ago. It is very likely the value of your home has increased since the purchase date. If you purchased the home insurance policy five years ago and have not updated the policy to the home’s current cost to rebuild, the insurance company will only reimburse you for the price you paid five years ago. So, if you purchased the home for $300,000 and the value has increased to $500,000, you’re losing $200,000 – quite a large sum.

In the end, it is essential to keep your homeowner’s insurance policy updated because you want to be sure your home is insured for 100 percent of the replacement cost. (Some policies automatically update to your home’s current value. Does yours?) While it is easy to let that dust settle over your policy from year to year, keep in mind that putting it aside could cost you much more in the end. Your homeowner’s insurance policy may make heavy reading, but it will be even more burdensome should it be out-of-date.

Detached Structures Insurance Coverage

Insurance For Detached Structures

In addition to covering your residence, your homeowner’s insurance also includes compensation for damage to detached structures on your property. Whether you have a detached garage, gazebo, tool shed or fancy doghouse, your homeowner’s policy should cover those structures in some form or fashion.

Because every single homeowner’s policy is unique, you need to know what your policy’s coverage limit is. For detached structures, the average homeowner’s policy includes compensation for up to ten percent of your home’s coverage cost. Confused? Don’t fret.

In a nutshell, if your house is insured for $450,000, your detached structures are automatically covered for $45,000. Again, however, your policy may be different.

A few stumbling blocks accompany this ten percent detached structure coverage. First, what if your detached structure is somewhat used for business purposes?

Unfortunately if your detached structure is even partly used for business, your claim can be denied. That’s just the way insurance works. If you have a structure on your property that you must use for business, you absolutely have to ask for approval in your homeowner’s policy that permits business use.

Second, what if your detached structures cost more than $45,000 to rebuild? Because the typical homeowner’s insurance policy automatically covers ten percent of the cost to rebuild for detached structures you must purchase additional detached structure coverage. So in this case, because your garage, gazebo or high-tech tool shed costs $60,000 to rebuild, you will need to purchase $15,000 in additional coverage.

In the end, it is essential to know what you’re covered for because each homeowner’s insurance policy is different. You need to know what is limited or excluded.

Is your homeowner’s insurance policy up-to-date? (Some policies automatically update to your home’s current value. Does yours?) While it is easy to let that dust settle over your policy from year to year, keep in mind that putting it aside could cost you much more in the end. Your homeowner’s insurance policy may make heavy reading, but it will be even more burdensome should you not know what is covered in it.

Is Homeowners Insurance Enough

Is Homeowners Insurance Enough During Tough Times?

Homeowners Insurance is supposed to protect us in case of disasters. That is what we have come to expect from our homeowners insurance over the years. But what if the disaster is the costliest in U.S. History? What if your insurance agent's home and office were destroyed in the disaster also?

That is what happened to many customers and homeowners insurance agents and companies after Katrina hit the Gulf coast. Many agents' homes, offices and insurance companies' claims centers were in the same situation as their clients due to the storms. So what did they do? They set up "office" in tents and mobile trailers. Then Hurricane Rita blew away these temporary offices and the agents and companies set them up again. These temporary shelters acted as a communications center for all people in the surrounding areas. Local people would come by to ask questions, meet with their claims adjustors and just catch up on the news with their neighbors.

Extreme circumstances dictated unconventional responses: some agents even filed claims for their clients without even talking to the clients just so they could get the claim "in the queue." Allstate allowed customers to submit claims through any agent in the country and set up a priority line to assist. They sent email to agents in the areas surrounding the disaster areas to act as messengers by "word of mouth" to their fellow agents in the effected areas. The larger companies such as State Farm & Allstate that service claims for the national flood Insurance Program even used satellite imagery to determine damage in some neighborhoods that were entirely flooded.

Lessons Learned: Those of us not effected by these disasters can learn a few lessons about coping with future disasters from the thousands of policyholders that are still waiting to get their claims paid. As soon as possible, take steps to prevent further damage to your home if possible: such as covering the roof with a tarp if possible. You can hire a contractor if you can find one, as that would be safer for most of us than climbing on our roofs. Hold off making any repairs until you see or talk to an adjuster first. Plus, keep your receipts, as you'll need them to prove expenses that can be reimbursed later.

Homeowners Insurance and Keeping Track of Your Goods

Homeowners Insurance and Keeping Track of Your Goods

1. a description of the item (including the quantity)
2. the manufacturer or brand
3. any model or serial numbers
4. a description of where or how the item was attained
5. the date of purchase or age of the item
6. receipt or other proof of purchase that shows the cost
7. the current value
8. the replacement cost
9. photocopies of appraisals
"I'll never complete this process!"

Keep in mind that while this documentation process may be time-consuming, it is certainly easier than remembering everything you own. Don't let this task discourage you. Take photos. Even better, make a night out of it. Grab your video camera and go from room to room to create a visual and verbal description of your items. It might take you an hour to document your entire house. Regardless of how you complete your inventory, remember that your compensation rests on the quality of your documentation.

"I've made the inventory, now what?"

Keep that homeowner's insurance inventory safe! Store it in a relative's home, in a lockbox, a safety deposit box or keep it tucked away in your office desk. While memories and keepsakes can rarely be replaced, it's comforting to know your homeowner's insurance will keep you financially secure should you properly document your items.

What Does Homeowners Insurance Cover

What Does Homeowners Insurance Cover?

You can generally expect your homeowners insurance to help pay for additional living expenses for up to 12-24 months while your home is being repaired. But, homeowners insurance usually pays only after they verify you have a legitimate claim. After Katrina, many insurers made an exception, automatically distributing enough to cover two weeks’ worth of additional living expense to anyone in an area subject to mandatory evacuation. Some companies even gave small advances on contents under the personal property part of their homeowners insurance policies.

If you have to wait to get your check, it helps to have cash that is easily accessible in a bank account or money market fund. Stashing cash at home isn’t a great idea because if your home burns down and you weren’t able to get to your cash, most homeowners insurance policies only cover $100-$200 in cash whether it is stolen or burned up in a fire. Your goal should be to have an emergency fund available to take care of your family for 2-4 weeks (minimum)if possible. In a disaster it might be hard to even find a local bank to get cash. Debit/credit cards with a statewide or national bank would perhaps be better.

Your biggest problem in getting your claim handled may be in either not having the proper homeowners insurance coverage or not having enough coverage. Most good homeowners insurance policies today cover up to 120% of your dwelling coverage limit. It is important that you review the dwelling limit with your agent every couple of year’s at a minimum. Homeowners insurance policies do not cover Flooding, but you should again see your agent for this coverage.

If your homeowners insurance falls short, you may qualify for money from the Federal Emergency Management Agency (FEMA) or a disaster-assistance loan from the Small Business Administration (SBA). Homeowners can borrow up to $200,000 for rebuilding and $40,000 to replace personal property at very low interest rates for up to 30 years.

Insurance for Personal Items and Belongings

Coverage for Personal Items and Belongings

In addition to covering your home and detached structures, your homeowner’s insurance also includes compensation for theft of or damage to your personal property. Keep in mind that every homeowner’s insurance policy is different.

Because every single homeowner’s policy is unique, you need to know what your policy’s coverage limit is. The average coverage for personal items in the typical homeowner’s insurance policy usually ranges from 50 to 75 percent of the price your home is insured for, depending on your insurance company. Confused? Don’t fret.

In a nutshell, if your house is insured for $450,000, your personal belongings should automatically be covered for between $225,000 (50 percent) and $337,500 (75 percent). Again, however, your policy may be different. This is a very important detail, so be sure to check your policy!

In the end, it is essential to know what you’re covered for because each homeowner’s insurance policy is different. You need to know what yours limits or excludes.

Is your homeowner’s insurance policy up-to-date? (Some policies automatically update your home’s current value. Does yours?) While it is easy to let that dust settle over your policy from year to year, keep in mind that putting it aside could cost you much more in the end. Your homeowner’s insurance policy may make heavy reading, but it will be even more burdensome should you not know what is covered in it.

Homeowners Insurance Coverage Options

Understanding Your Homeowners Insurance Coverage Options

Replacement cost coverage – Pays the cost of repairing or rebuilding your home or replacing your possessions without a deduction for depreciation.

Guaranteed/extended replacement cost coverage – This is the highest level of protection. Guaranteed replacement pays the cost to rebuild your home as it was before the disaster – even if that cost exceeds the policy limit. This policy will protect you against increases in homebuilding costs or other unexpected situations. In most cases this coverage will not compensate for home upgrades to comply with building codes. If your home is older, this policy may not be available to you. Extended policies pay a percentage over the policy limit to rebuild your home. Usually an extended policy will pay 20 to 25 percent more than the limit of the policy. Be sure to see what coverages your state offers. Not all states offer the same coverages.

Actual cash value – This coverage pays to replace your home/possessions minus a deduction for depreciation.

Other homeowner’s coverage:

Structures other than the dwelling – Includes structures on the residential premises that are not attached to the dwelling - sidewalks, driveways, permanently installed yard fixtures and private or decorative fences. The average limits on coverage are 10 percent of the value of the dwelling.

Loss of use – Reimburses for expenses beyond replacing property if a home cannot be lived in because of fire. This coverage usually pays for the living expenses incurred maintaining a normal lifestyle.

Mobile homes – Offered by a few companies. This coverage is considered residential if the mobile home is established as a permanent residence.

Building code upgrade – reimburses for building code upgrades that may be required during the repair/rebuilding process.

To learn more about what should be in your homeowner’s insurance policy, be sure to consult your local insurance agent. Never take a gamble with your homeowner’s insurance - be sure it’s up-to-date and make sure you are covered for potential disasters.

*Please note that this article is not a professional consultation. This article is for general information only. Always seek specific information from a licensed insurance professional.*

Proper Residential Homeowners Insurance

6 Tips for Ensuring Proper Residential Coverage

Owning and maintaining a home is one of the largest financial responsibilities you will ever have. If it has been awhile since you have looked at your homeowner’s insurance policy, it is time to examine your coverage to be sure you are prepared in the event of disaster. Consider the following tips to be sure you’re not in a mess the next time you file a homeowner’s insurance claim.

1) Request written guidelines from your adjuster regarding how claims will be adjusted.

2) File away copies of all correspondence between you and your insurer.

3) Be sure you call the Department of Insurance if you consider hiring a public adjuster. You want to ensure s/he is properly licensed.

4) Keep all receipts of your living expenses and any other documents that pertain to your insurance or property. Keep those documents in one location, chronologically ordered, so they are easily accessed.

5) Log all phone calls between you and your adjuster.

6) Never speculate about what has been damaged or lost. Always stick to business and share only factual information.

Now that we’ve covered the tips for filing a homeowner’s insurance claim, let’s do a quick overview of the homeowner’s insurance coverage available to you. Remember that these policies can fall into several categories.

Do You Need Renters Insurance

Why Do You Need Renter's Insurance

If you are like many people who rent a home or apartment, you may not have renter's insurance or even feel you need it. Many people are under the mistaken impression that their landlord or property owner's insurance will cover your personal property in the case of a disaster. They are very wrong. The insurance the landlord carries will only cover the property, not the inside belongings. This is why it is so important that renters purchase a renter's insurance policy.

If you don't have renter's insurance, you can lose everything you own in a fire, break-in or other disaster such as tornado, windstorm, etc. If someone steals your child's bike while it's sitting in your yard, your renter's insurance will pay for its replacement. If a neighbor slips on your icy steps and hurts him or herself, and decides to sue you, your renter's insurance will pay their medical bills and protect you from any legal ramifications. If your home was damaged a covered peril and you have to live somewhere else for a while, you're renter's insurance will cover your living expenses while you live there.

Renter's insurance is just like homeowner's insurance in that it covers your personal belongings. If you do not have renter's insurance now, start shopping for some today. Renter's insurance is not very expensive, so you should be able to find a very good policy for a reasonable price. Most policies are $200 or less per year. This price is completely worth the security of knowing your belongings are covered in the event of a fire or some other disaster.

Don't be afraid to ask your insurance agent about the policy and what it covers. If there is a deductible, find out what it is. The deductible is the amount you must pay before the insurance will pay for a claim. For instance, if you have $10,000 worth of damage and your deductible is $1,000, you have to pay the first $1,000 and your insurance company will pay the other $9,000. Also, if there are any exclusions (things they won't cover), find out what they are.

Remember to learn whether or not the insurance company pays actual cash value for your belongings or replacement costs. Get the best possible policy you can for your money. What may look like a good deal may not be when you really need the coverage, so don't be afraid to ask questions, take notes and comparison shop before making a final decision.

How Much Renters Insurance Is Needed

How Much Renters Insurance Do You Need?

Purchasing renter's insurance is very important when you are renting a home. In the case of a disaster, you'd hate to lose all your personal belongings and not be able to replace them. You never realize how many personal belongings you have until you lose them and realize you don't have the money to purchase new items.

When homeowners purchase home insurance they usually get an amount to pay their mortgage plus some for their personal belongings inside the home. If there is not a mortgage on the home, they often go by appraisal value. Because your personal belongings in your rented home are not appraised, it may be more difficult to determine a dollar amount for renter's insurance.

The best way to determine how much renter's insurance you need is to take inventory of what you own. This is neither an easy task nor one that can be done in an hour's time, but it needs to be done. Start with one room at a time, writing down everything you own.

If you can remember what you paid for these items, write this down as well. You will have certain items that depreciate with age such as computers, televisions, appliances, etc. Besides these items, write down what they would cost you if you had to replace them. Renter's insurance may pay for damaged items based on replacement costs (what it cost to buy new ones) or actual cash value (what they are worth now). Make sure you find out from the insurance company which method they will be using for your policy.

When you get your total complete, keep it in a safe place in case of a disaster. Once you have totaled up your inventory, you will have some idea of how much renter's insurance you will need to adequately cover your personal belongings. Use the figures of what it would cost you to replace these items as your guideline. It's better to have too much insurance than too little. When the agent asks you what you had in your home, you will be able to show him/her the list.

Personal belongings that can't be replaced such as heirlooms, expensive jewelry or treasured photographs should be kept in a fireproof safe or safety deposit box. Regardless of how much renter's insurance you have, family keepsakes and treasured photos cannot be replaced.

Things to consider when choosing renters insurance

Choosing A Renters Insurance Policy

Here are some things to consider when choosing a renter's insurance policy:

Total Cash Coverage - This is the total amount of renter's insurance that you will need in the case that your total home was destroyed. This is the purpose of a well-detailed inventory list. Whatever dollar amount you've determined for your possessions, add a few thousand dollars more for those things you've forgotten or under-priced.

Deductible - This is the amount you will be expected to pay for a loss before your renter's insurance kicks in and pays. Deductibles can be as low as $100 and as high as $2,000 or more. The lower the deductible, the higher your premiums will be. Keep in mind how much you could afford to pay as a deductible today if your home were destroyed.

ACV (Actual cash value) or Replacement cost - Although some insurance companies pay both ways, you're better off choosing a policy that pays replacement cost. Everything depreciates so you will be in a better position to replace your belongings with a policy that pays replacement cost rather than what they are actually valued at today.

Premiums - Some renter's insurance is paid annually, while other companies allow you to pay quarterly or even monthly. Before you choose a particular company, shop around and compare coverage as well as cost.

Buying Renters Insurance Tips

Renters Insurance Buying Tips

Renter's insurance protects your property against damage or loss, and insures you in case someone is injured while on your property. It's offered by most companies that sell homeowner's insurance. If you rent or lease your home this is for you!

Why Should I Buy It?

Your landlord's insurance doesn't cover your personal property -- your clothes, furniture, stereo, computer, bicycle, jewelry, or anything else. Renter's insurance does. Renter's insurance also may pay for accidents that occur on your property or damage to others' property. A renters insurance policy insurance can be an important -- and relatively inexpensive -- protection for you and your family.

What's Covered?

You can purchase different levels of coverage, but there may be limits on the values of specific items covered. For example, some policies limit the amount they will pay for computers, jewelry, and other specific items. You may purchase additional coverage ("floaters") for items not covered in your basic policy. You also may want to purchase separate coverage for losses due to earthquake, flood, or other natural disasters.

How Much Insurance Do I Need?

Estimate the value of your personal possessions. This is the amount of insurance you need to replace the contents of your home if everything is destroyed.

Decide whether you need supplementary coverage, such as for damages from flood or earthquake. The more coverage you buy, the less you will have to pay out of your own pocket to replace property that is destroyed or stolen.

What Are The Deductibles?

A deductible is the amount you will pay out of your own pocket before your insurance pays on a claim. This amount may be a percentage of the value of the actual loss, a percentage of the value of the insured property, or a specific dollar amount. For example, if your policy has a $200 deductible and your claim is $1,000, you will pay the first $200 and the insurance company will pay the remaining $800.

What's The Difference Between Actual Cash Value And Replacement Cost?

You can insure your property in either of two ways -- the actual cash value, or the replacement cost.

Actual Cash Value

This coverage considers the age and condition of the item at the time of the damage or loss, and pays only what it is worth to replace it with an item of similar condition -- used.

Replacement Value

This pays you the cost to replace the covered item with a comparable new item. Replacement value policies usually cost more, and may have restrictions.

Does A Parent's Policy Cover Students?

If you are under 26, attending college, and living in a dorm, your parents' homeowner's or renter's policy may give you limited coverage. You will not be covered on their policy if you live in an apartment

Can Roommates Or Unmarried Couples Purchase Renter's Insurance Together?

Yes, but find out whether your policy needs to be updated if you get a new roommate, or if all your roommates need to be named under the policy. Some policies automatically extend coverage to any resident of a policyholder's household who fits the definition of a "domestic partner." Otherwise, consider carrying separate coverage for each of the adult tenants.

Available Discounts

Most of the discounts which apply to homeowners insurance also apply to renter's insurance.

FAQ's About Renters Insurance

Questions and Answers About Renters Insurance

In any given year, burglary losses in the United States run in the billions of dollars. The average residential loss often exceeds $1,000.00 (Insurance Industry News)

Many renters do not realize they have so much to lose, whether it is personal belongings or financial loss due to legal liability. If you do not already have renters insurance, you may question its importance and the coverage it provides. Check out some common questions and answers below. You might be surprised to learn just how much you risk losing without proper insurance for both your personal liability and your personal belongings.

Q: Why would I need a renters insurance policy if my landlord carries insurance?

A: The insurance your landlord carries covers the building structure, but does not cover your personal belongings—your furniture, wardrobe, appliances, television—anything that you've moved into the building. You need a renters policy to cover your personal possessions.

Q: Just what is covered by renters insurance? (Also known as "insured Peril")
A: A covered peril is a cause of loss for which a renters insurance policy will provide protection. Insured losses include theft, fire, smoke, lightning, explosion, riot, vandalism, hail, and water damage from plumbing.

Q: What are the odds of my home/apartment/condo being burglarized?

A: Chances of a burglary in your home are greater than you think. In fact, a burglary occurs about every ten seconds. According to recent FBI statistics, two of every three burglaries occur in homes, condos, or apartments with an average loss of $1,004 per residence!

Q: Renters insurance covers theft in the home. What if I'm held-up while away from my home, or if I'm a pickpocket victim?

A: Renters Insurance can provide coverage from theft whether it occurs at home or away from home. This coverage includes protection against loss from robbery, pickpocket theft..Even credit card loss, forged checks or counterfeit money.

Q: If my video cassette recorder of stereo were stolen, would my renters insurance provide coverage to buy a new one?

A: The Personal Property Replacement Cost Option in a Renters Policy assures you that most of your covered property will be repaired or replaced without deduction for depreciation. For example: if stolen they above mentioned items will be replace with Brand new items.

Q: What is the difference between an ACV (actual cash value) and Replacement cost policies?

A: ACV policies are cheaper because they take into account the age of the item that is lost or destroyed. For Example: a 5 year old Stereo is stolen. An ACV policy will only reimburse you the value of a 5 year old stereo! (Maybe $100 if you're lucky!) A replacement policy says go buy a NEW Stereo of like Brand, quality, features as the one that was stolen and we'll give you the money to buy it brand new!

Q: What if my child accidentally breaks a neighbor's window?

A: A renters policy covers property damage caused by you or your family members (up to the policy limits.) This family coverage is automatic in most renters policies.

Q: How can I determine how much insurance I need?

A: Add up the dollar value of everything you own in your home. Clothing, furniture, television, stereo equipment, computers, kitchen utensils, etc. What would it cost Brand New if you had to replace everything? Most companies have a calculator to help you get in the ball park, but ultimately, it is your responsibility to determine how much you need.

Finally: As a Renter, you face many of the same risks as a homeowner. Some renter's think they can never be sued as they don't Own the property. What if you are out playing golf or softball with friends and someone gets hit with a ball? (either bodily injury and/or property damage) The liability of a renters policy will defend you and pay any damages up to the limit that you choose.

Shopping around for the right renters insurance policy is a smart investment of your time and purchasing a good policy is a smart use of your money. Online services (yes, like ours at Online Insurance Quotes.Com) have made the process easier than ever, so rather you use our service or someone else, start shopping today...you made need it sooner than we hope you do.

Group Health Insurance Quotes

Group Health Insurance Quote Tips

Group Health Insurance is necessary to attract and keep good employees. While employers may not like the cost of group health, they should be aware of the benefits to the company and overall morale. There may be things you as an employer can do to alleviate some of this costly pain. Also, all Group Health companies and insurance agents that offer them are not created equal.

The cost of this health insurance versus the need for solid employees should be weighed. There a perception that many in this country that employees will take a cut in pay if they were to be guaranteed a group health plan. There is a simple explanation for this reasoning. People know they will have to go the doctor. Women need to have mammograms and pap smears, the children need their shots and physicals, and men need their prostrate examined, people realize these services cost money. Employees often would prefer that you take money out their check for group health then for them to write a check each month for it.

Get up to Five Free Group Health Insurance Quotes

It is the job of to keep your group health cost to a minimum. If you already have a group health plan, you can raise the deductible to discourage overuse of coverage by your employees. However a dramatic raising of group health deductible or co-payment may cause some rumbling among your employees. Yet it is t is a good idea to start with a lower deductible, so you can absorb rate increases. (Your group health rates will go up) Also know beforehand what networks are in your area, and what health networks most of your employees' doctors belong to.

It is very important to review and understand your group health quotes that you will receive. Any insurance agent or broker that provides you with initial group health quotes over the phone, without having your employees fill out any applications, is doing you a disservice. Unless the agent is the Great Houdini, no one in our field can give you a firm, group health quote without a thorough underwriting. Group Health Insurance is too complicated to be taken this casual. Remember, look for an agent that gets to know your particular situation, understand your needs, and has the group health benefits that meet your expectations.

Is going with the biggest named group health insurance companies, the best choice? Choosing the "big name" companies over less known, group health insurance companies with reputable ratings, may not be in your employees and yours' best interest. All group health plan are not designed the same. If XYZ, group health companies pays 80% for a mammogram and ABC, group health company pays all, could it make sense to you to check the other benefits of the health plan?

Employers realize that they must offer group health to attract and keep quality employees. There are a few hints that can keep group health costs down. It is important to realize that an initial group health quote, with no underwriting is worthless and probably should never be used. The listings of the benefits of the group health plan would be meaningful. While big companies have good "branding," do not overlook smaller group health companies with good ratings.

Other Group Health Tips

1. Realize that you will be required as an employer to contribute as least 25% of the premiums for the group health insurance. (I never seen an group health carrier ask for less.)

2. Also realize that many group health carriers want at least 60- 70% participation of eligible employees to take the group health insurance or they will not underwrite the group.

3. Before you bind coverage with an agent or broker, find out who will process any claim paperwork and who your employees call about a claim.

4. Decide whether you will want current employees to keep their group health insurance when they retire.

5. Review and ask questions about such terms as group health deductibles, coinsurance, and maximum limits if you are not familiar with them.

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