REPOST: Tips for Buying Homeowners Insurance

For many people, home insurance can be confusing. Bankrate’s Chris Kissel breaks down the essentials when purchasing home insurance in this Fox Business article.

Image source: foxnews.com

Most homeowners -- especially those with a mortgage -- know they have to maintain a home insurance policy. Homeowners insurance protects what is likely your biggest asset.

However, home insurance can be confusing. What does a policy cover? What factors influence the cost of a policy? How can you find the best deal?

To find out the answers to these questions, Bankrate talked to Allen Seward, chair of the Department of Finance, Insurance & Real Estate at the Hankamer School of Business at Baylor University in Waco, Texas. In the following interview, he explains a few home insurance basics.

What is covered by a homeowners insurance policy?

Generally, the dwelling, other structures on the site (separate garage or work shed), contents of the dwelling, and some liability exposure of the owners or occupants for injury to guests or workers.

Are all homeowners required to have home insurance coverage by law?

No, although there may be some state exception that I am unaware of. Usually, homeowners insurance is required by mortgage lenders, and that contract is enforceable by law. If a house is paid off, there is no requirement to insure.

What affects the premiums of home insurance policies?

(The) value of the property, possibly the creditworthiness of the policyholder, location of the property (high-crime versus low-crime area, proximity to police and fire services), use of the property, construction materials (brick versus wood), and catastrophic exposures. In Texas, location on the Gulf Coast is expensive due to hurricane risk, and in the "hail belt" there is a large exposure to hailstorms. In other states, the exposure may be to tornadoes, floods or earthquakes.

Homeowners may not be aware that home insurance policies do not cover some damages. What are some of those things?

Floods are not covered, although windstorms are. Mold damage is (a) special problem often not covered, but the law is evolving in different states concerning mold. Collectibles (antiques, art, stamps, books, etc.), jewelry and cash are limited in the amount of coverage. Individuals can choose to increase coverage for those items by purchasing riders for the homeowners policy, although I do not know of a rider that covers cash.

What advice can you provide to homeowners who are shopping for homeowners insurance?

It really pays to shop for vendors. I would call multiple companies -- at least five -- because premiums vary across companies.

The Texas Department of Insurance maintains some very useful information for consumers on its website, providing summary premium information along with complaint ratios for companies doing business in a given territory. That information is not consistent across states, but some other states do provide consumer information through the department of insurance. Complaint ratios are a good way to guess at a company's customer satisfaction.


Don Bullard is an independent insurance agent and the founder of Don Bullard Insurance in Wilmington, NC. This website provides the various insurance policies offered by his company.

Young and insured: Why single people need to have life insurance now

Allen C. McLellan, an associate dean and assistant insurance professor at The American College, says that buying an insurance policy even before an individual decides to settle down is a wise move.

Image source: centerforgloballeadership.wordpress.com

Three years ago, LIMRA, a worldwide research and consulting organization for the insurance and financial service industry, has declared that 11 million households with children under 18 had no life insurance coverage. A very different thing happened at the outset of this year, as USAA Life reported that the number of single people getting life insurance for themselves has increased, which means more and more young people are becoming aware of the importance of having life insurance.

Image source: findyourbalanceblog.com

Of course, buying insurance at a young age sounds like a “preparation for the future,” which it certainly is. But there are some practicalities involved in it, too. Buying a policy this early is a good move, because premium prices for the young and healthy are cheaper than for seniors with health problems. It is also a good start to leave a legacy for their would-be children and spouse. Having a life insurance is also beneficial for young Americans, for they could borrow money from the insurance firm should an emergency arise.

Image source: investment-fiduciary.com

Life insurance comes in many varieties; hence, carefully choosing the right one that encompasses the single person’s needs is a must. Working with an honest and experienced insurance professional will also help young people better understand which type of insurance is right for them.

For recognized insurance agents like Don Bullard, having the best life insurance is synonymous to valuing life. His company website, donbullard.com, shares more details about the different types of insurance.

Your safety net for getting sued: All about umbrella insurance

Image source: leaderwalk.wordpress.com

When you get sued and lose a lawsuit, you are liable to compensate the plaintiff with an enormous sum of money, which may sometimes exceed what your insurance covers. Having umbrella insurance assures you that, when sued for damages, you have enough cash at hand to cover it. This insurance form is relatively inexpensive and is offered by many insurance providers, from larger providers, like GEICO, to smaller ones, such as Don Bullard Insurance.

Image source: detroit.cbslocal.com

CNNMoney notes that most people keep only the minimum of home or auto liability insurance required by the law. In the event that the costs of liability far outweigh your insurance coverage, then an umbrella insurance policy can come quite in handy. These policies are relatively inexpensive, with a $1 million coverage being available for about $500 monthly. However, it is important to know whether you really need an umbrella insurance policy and if the policy you are looking at is really affordable before actually getting it. This article provides more details for you to determine if you are in need of umbrella insurance.

Image source: equinebusinessnews.com

Few people would actually need umbrella insurance. Those that do are usually at risk due to a number of factors, which include owning a dog, having a pool, hosting a lot of guests, owning a small business, and having a teenage driver living at home. Those who have assets that are at risk, such as a house or vehicle, can also benefit from umbrella insurance.

This webpage provides more information on umbrella insurance.

Buying a car means buying a policy

Image source: maxupdates.tv

Buying a car means buying a policy, since you can’t actually own one without adhering to the fact that every automobile comes with a certain insurance package. It’s a law, at least in most states. Even if that is not the case, all owners have to insure their units, because refusing to do so is like driving with a malfunctioning brake pedal: treacherous.

Now, if buying a car is like purchasing a policy, then driving is about life, your life. Thus, you have to be serious about it. In so doing, you have to learn the rudiments of getting one.

Image source: cardata.com

Looking up through the law in your state should be the first step, since rules differ widely from one state to another. This will make you determine the specific insurance to acquire. There’s an array of it, lots of options to choose from, and the only thing you should know is the exact one that fits your personality and capability as a car owner; for example, there are companies that offer gap insurance, which pays the difference between what your guarantors pay and what you owe if the car is completely calculated, and there are some that just don’t allow this stuff.

Finally, look at your own financial capacity. Here, honesty is important, as it determines what kind of liability would grant you an overall coverage in the event of you injuring someone.

Image source: ddmcdn.com

The bottom line: before closing a deal with any insurer, be sure to know and understand your real needs as a car owner and future policy holder. You don’t want a security plan that has nothing to do with your taste, your preferences.

For Don Bullard, car buying is a serious matter. For more information about car insurance, visit www.donbullard.com.

REPOST: Art Insurance Losses from Hurricane Sandy May Reach $500 Million

This New York Times article talks about the art insurance losses brought about by Hurricane Sandy.

Two months after Hurricane Sandy caused severe flooding in many Chelsea galleries, the bill for the art world’s recovery is shaping up to be hefty. By mid-November, AXA Art Insurance, one of the largest art insurers, estimated that it would be paying out $40 million, and a Reuters report last week quoted industry estimates suggesting that insurance losses for flooded galleries and ruined art may come to as much as $500 million – or the rough equivalent of what the art insurance business takes in each year. That would amount to the largest loss the art world and its insurers have ever sustained.

Included in this half-billion-dollar total, Reuters reported, is a claim for losses sustained on work by the pop artist Peter Max, whose works on paper are said to have been stored in a warehouse that was flooded. Reuters, quoting unnamed sources, put the claim on Mr. Max’s work at $300 million (although Mr. Max’s Web site, unlike those of many other artists affected by Sandy, made no mention of storm-related losses as of Friday). A message left for the representative listed on Mr. Max’s Web site was not returned on Friday.

In a telephone interview on Friday, Filippo Guerrini-Maraldi, the executive director of fine art at R.K. Harrison, a London-based insurance broker whose clients include several Chelsea galleries, said that the industry-wide figure — which he estimated at between $400 million and $500 million — covered the physical damage to the galleries themselves as well as art losses.

“Chelsea got hit hard,” Mr. Guerrini-Maraldi said, “and there were other consequential losses. Because many of the galleries lacked power for a while, and because it then got cold in New York, things that needed to be in a controlled environment were affected. Works on wood, for example – we’re seeing those kinds of claims.”

The scope of the claims could have other ramifications for art dealers and insurers, including higher insurance rates. Mr. Guerrini-Maraldi guessed that the rate increases could be as much as 5 to 10 percent, reversing recent rate reductions caused by competition and rate wars in the art insurance business.

“A lot of underwriters have felt that art insurance was a good business to be writing,” Mr. Guerrini-Maraldi said, “because it’s profitable, and because losses are rare – although when they do happen, they can be big. Already, we’re seeing that cost reductions are out. People are holding their prices firm, and I’m convinced that we will see a rise in the coming months.”

Meanwhile, a recent visit to Chelsea suggested that gallery owners’ initial estimates that the area would be fully back in business by mid-December were overly optimistic. While some street-level galleries were up and running, others were shuttered, and at several, signs posted on their doors said that only authorized workers could enter. Construction crews and gallery staff could be seen through the windows, working on walls and shelving, with no art in sight.

SOURCE: http://artsbeat.blogs.nytimes.com/2012/12/28/art-insurance-losses-from-hurricane-sandy-may-reach-500000-million/
 

Home Damaged in a Hurricane? Here’s How the Insurance Claim Process Works

From the Insurance Information Institute. Read more here

Home owners whose properties were damaged by a hurricane will likely be visited by insurance adjusters who will decide how their claims are settled.

Adjusters are licensed by states to assess damage. Some adjusters work for the insurance company while others work on a temporary basis for your insurance company to help it handle claims after a natural disaster.

Claims visits are arranged by the severity of the damage, so it is important to provide your insurer with an accurate description of your property damage.

Policyholders who have been most severely impacted or have immediate financial or safety concerns will be a priority for the insurance company as well as those with a family member with special needs.

Many claims adjusters have special disaster recovery expertise, and it’s common for insurance companies to deploy these individual experts for complex claims, such as those involving considerable structural damage due to wind, damage due to flooding, and the destruction of a majority of personal property within the home.

Some people choose to hire public adjusters to handle their claim. Public adjusters work for you and you pay them by sharing a percentage of your claim amount. Many people choose to engage the services of a public adjuster when they have limited time to manage their own claim.

If you have flood insurance from the National Flood Insurance Program, you’ll likely have to work with at least two adjusters: one adjuster representing your home owners insurance company, who will process wind-related damage, and another representing the NFIP, who will handle damage from flooding.

Keep in mind that if you disagree with the settlement amount of your claim, your policy allows for an independent appraisal of the loss. In this case, both you and your insurance company hire independent appraisers who choose a mediator. You and your insurance company each pay for your appraiser and share the other costs. The decision of any two of these three people is binding. However, disputes rarely get to this stage. To help you prepare for the claims process: Make sure your insurance company knows how to reach you. Provide your cell phone number and backup contacts, if they are available. If at all possible, you should try to meet the claims adjuster at your property, providing it is safe to do so.

Complete a Proof of Loss form in advance and bring home inventory documents. The more information you have about your damaged possessions, the faster your claim will be settled. If you completed a home inventory in advance of the storm, this will be a valuable tool as you will need to make a list of all damaged items to give your claims adjuster.

This will include make and model numbers of your possessions, purchase dates and the price you paid. Most insurers have home inventory forms you can use to complete this step. You will also want to make a list of any damage you want to show the adjuster.

Photograph debris or destroyed items and ask your insurer if debris can be removed. Generally, you should not throw away any damaged items until the claims adjuster has visited. It is also a good idea to photograph or take video of the property damage. Many insurers have the ability to accept this photographic documentation online.

Know that the first claims check you receive is often an advance, not a final settlement. You may be offered a settlement check from the adjuster on the initial visit. If so, you can accept it immediately and, if other damage is discovered within the timeframe stated in your insurance policy, the claim can be reopened.

Most states allow at least one year from the date of the disaster to file or reopen a claim, and some states allow more time. You may receive three separate checks from your insurer: one for damage to the structure, one for losses related to personal belongings, and a third check for additional living expenses that you incur while your home is being repaired.

The time it takes to complete the claims process depends on the extent of the damage and the availability of contractors and resources to repair your home. Once you have reported your claim, you can check on its status with your insurer by phone or online.

BOP it: Don Bullard and business insurance coverage

Don Bullard image credit: marblebridge.com

Business owners may find that they need extra coverage to protect their investments and recover quickly from unexpected events. Don Bullard, a Wilmington, North Carolina-based insurance agent, provides business owners with business insurance coverage to help them protect their investments.

Unforeseen events such as lawsuits are a danger to a business and its capital resources. Regardless of its size, businesses have little chance of withstanding heavy financial blows without some form of financial protection. Hence, business owners often find themselves in need of a comprehensive insurance policy to protect their investments and to assure its future growth and development.

Don Bullard image credit: bcbib.com

Commonly known as a business owner’s policy (or BOP), this insurance protects the business and the time and effort its proprietors have given it. Don Bullard offers BOPs that are flexible and can be tailored to the specific requirements of a business. The coverage he and his firm offer include property insurance, general and excess liability, vehicle coverage, workers compensation, and group benefits.

No business is invincible from the ravages of accidents and lawsuits. Being ensured, though it may seem confusing to the business owner at first, can make all the difference for a business in the event of unforeseen circumstances.

Don Bullard image credit: midaminsurance.com

Further information on BOP and many other insurance coverage options can be accessed from the official website of Don Bullard Insurance.