Report from UK:
Although many people are having to cope with uncertain economic conditions, households have been advised not to cut their car or home insurance in order to save money.
Defaqto urged consumers not to cancel their insurance policies "without giving it serious thought".
"Car insurance is required by law, and home insurance is vital to protect your house and belongings," the firm stated.
In order to find the best car and home insurance deals, people ought to consider using online aggregators to "shop around".
However, it is important that consumers are aware of what level of cover their new policy provides, it added.
Graeme Trudgill, technical and corporate affairs executive at the British Insurance Brokers' Association, recently advised motorists not to accept it when they car insurance provider increases the price of their premiums.
Friday, September 19, 2008
The Future For American Home
American Home Assurance Company, which writes property risk and casualty insurance in the Jamaican market, is awaiting a pronouncement of its long-term future following this week's near collapse of its parent, American Insurance Group (AIG).
AIG, caught in America's sub-prime mortgage crisis, was pulled back from the brink on Monday with a $40 billion bail-out package from the US central bank, the Federal Reserve.
The development has placed question marks over the future of AIG's small subsidiaries, like the one in Jamaica.
"I am awaiting directives (from the parent group) before I can say anything to the press," said American Home's general manager, Earl Codling.
AIG, caught in America's sub-prime mortgage crisis, was pulled back from the brink on Monday with a $40 billion bail-out package from the US central bank, the Federal Reserve.
The development has placed question marks over the future of AIG's small subsidiaries, like the one in Jamaica.
"I am awaiting directives (from the parent group) before I can say anything to the press," said American Home's general manager, Earl Codling.
Are Sports Injuries Subject To Home Insurance?
Here's a report from the UK:
A home insurance warning has been issued by a provider, after new figures revealed that liability claims for sports injuries are increasing.
According to Esure, more policies were being claimed on through personal liability for sport injuries. Personal liability is usually included with home contents policies, although it has remained unused.
Esure have issued the warning as there is potentially a large financial cost of being hit with such a case, and not having insurance can become very complex..
A spokesperson for Esure stated: “Fire, flood, theft and accidental damage are the perils that most people see themselves using their home contents insurance for - but personal liability cover can be a life saver for anyone claimed against. Although it is one of the rarest, it is also the most serious types of claim.”
A home insurance warning has been issued by a provider, after new figures revealed that liability claims for sports injuries are increasing.
According to Esure, more policies were being claimed on through personal liability for sport injuries. Personal liability is usually included with home contents policies, although it has remained unused.
Esure have issued the warning as there is potentially a large financial cost of being hit with such a case, and not having insurance can become very complex..
A spokesperson for Esure stated: “Fire, flood, theft and accidental damage are the perils that most people see themselves using their home contents insurance for - but personal liability cover can be a life saver for anyone claimed against. Although it is one of the rarest, it is also the most serious types of claim.”
Thursday, May 22, 2008
Saving On Home Insurance
Here are some tips:
The first thing you can ask your auto or home insurance agent about is raising your deductible - the amount of money you are responsible for when you file a claim. That may knock off money from your premium.
It might not make much of a difference when it comes to your car, but you can save some bucks when it comes to your home.
"Some companies where you change $1,000 deductible to $2,500 - it's a $400 savings a year. Others, maybe it's $20," said Connie Galewski, an independent agent with Avalon Insurance Group.
Galewski deals with a lot of insurance companies. She warns the most important thing to know when it comes to raising your deductible is to make sure you are able to cover it in case disaster strikes.
Another way that can save you some money is free and it's offered by the state government. My Safe Florida's free home inspections isn't a new idea, but it is one that hasn't been taken advantage by many people who own single family homes.
"A lot of people really don't know about this," said Galewski. "On my own home, I saved about $700."
Once you go to the website and fill out an application, an inspector will come out to your home.
"They'll make a time to come out to your home and it takes about a half-hour. And it can definitely save you money," said Galewski.
Lastly, shop around - especially if you haven't done it in a while. A lot more insurance companies are coming into Florida since so many left after Hurricane Charley in 2004.
"You definitely need to shop around because there are all kinds of rates out there," said Galewski.
From CNNMoney:1. Be prepared
The National Association of Insurance Commissioners (NAIC) found that nearly half of people - 48% - said they did not have an inventory of their possessions. And almost 60% of people didn't have receipts that showed the cost of their items.
About 28% did not know which type of coverage they purchased, whether it was an actual cash value or replacement cost. The NAIC said 69% of folks didn't have earthquake insurance, and 65% did not have flood insurance.
2. Get the Lingo
There is a world of difference between actual cash value and replacement cost. Remember, actual cash value is the amount it would take to repair or replace damage to a home and its contents AFTER depreciation. So if you bought a flat screen TV at $3,000 five years ago, you may get a check for what it's worth today and that could be as low as $500 if you have actual cash value insurance.
Replacement cost is the amount it would take to replace or rebuild a home or repair damages. An actual cash value payout could be thousands of dollars lower than a benefit calculated at the replacement cost according to the NAIC.
3. Know your coverage
In this case, wildfires are a covered peril in most homeowner's insurance policies. But make sure you get the details. Insurance companies have been avoiding risk and cutting back on their insurance coverage for years.
Flood insurance and earthquake insurance must be purchased separately from your homeowners policy. Standard policies also don't cover damage from sewage and water backups.
And keep in mind, homeowners policies typically cover only $1,000 to $2,000 for theft of jewelry, furs or other precious items. So, if you have expensive items, you may consider buying extra insurance.
4. Consider Inflation
Inflation doesn't just hit your groceries. The materials needed to rebuild your home are also vulnerable to inflation. Your homeowner's policy may not account for this.
To protect yourself, ask for an inflation guard with your policy. This lets the insurance company to automatically increase the policy limits to keep pace with inflation. Now, you will have a higher premium, but if you have to rebuild your home, you'll be glad you have this protection.Monday, March 24, 2008
Lying On Your Insurance Forms
A report says that over one million Brits lie on their insurance forms.
About a quarter of Brits admit to guessing on the information they fill out.
Here's the story:
Sainsbury's Finance estimates 24 million general insurance policies have been taken out in the last five years with people guessing at facts or simply lying.
While most insurance companies will look at unintentional mistakes on applications with leniency, by not providing the whole truth people are at risk of having claims rejected.
Steve Johnson, head of insurance at Sainsbury's Finance, said: "It really is quite concerning that so many people seem to think it doesn't matter if they take a guess at the information requested at the point of taking out cover.
"Although it may seem like a good idea in an effort to save time, it could become a real headache later when they find they have invalidated their claim.
"If unsure of the answer to a question when getting a quote or buying cover we would encourage people to always take the time to go back and check any details, you can always phone back or gather all your personal documents together and apply online, in some cases you can retrieve online quotes and modify them later."
People are most likely to lie or guess when applying for home insurance – with 18 per cent admitting all the facts may not be there – despite homeowners facing the greatest financial burden should a policy be rejected.
Some 15 per cent are not completely honest over car insurance applications, while 12 per cent give false information on travel insurance forms.
The finding follow figures from UK fraud prevention service Cifas revealing a 24 per cent rise in people committing fraud when applying for financial products.
About a quarter of Brits admit to guessing on the information they fill out.
Here's the story:
Sainsbury's Finance estimates 24 million general insurance policies have been taken out in the last five years with people guessing at facts or simply lying.
While most insurance companies will look at unintentional mistakes on applications with leniency, by not providing the whole truth people are at risk of having claims rejected.
Steve Johnson, head of insurance at Sainsbury's Finance, said: "It really is quite concerning that so many people seem to think it doesn't matter if they take a guess at the information requested at the point of taking out cover.
"Although it may seem like a good idea in an effort to save time, it could become a real headache later when they find they have invalidated their claim.
"If unsure of the answer to a question when getting a quote or buying cover we would encourage people to always take the time to go back and check any details, you can always phone back or gather all your personal documents together and apply online, in some cases you can retrieve online quotes and modify them later."
People are most likely to lie or guess when applying for home insurance – with 18 per cent admitting all the facts may not be there – despite homeowners facing the greatest financial burden should a policy be rejected.
Some 15 per cent are not completely honest over car insurance applications, while 12 per cent give false information on travel insurance forms.
The finding follow figures from UK fraud prevention service Cifas revealing a 24 per cent rise in people committing fraud when applying for financial products.
Consumers Hate Insurers
The Palm Beach Post reports that most consumers don't like their insurance companies.
Randy Diamond writes:
Randy Diamond writes:
You would think that homeowners looking for a new insurance company might have some issues with their current carrier. That’s exactly the finding of a new survey by Home Insurance Buyers Guide LLC. http://homeinsurancebuyers.org/ The Internet startup’s survey of 330 users found 58 percent were dissatisfied with their insurance company, 27 percent satisfied and 15 percent delighted.
Among those who were dissatisfied, 60 percent were not happy because they were canceled by their insurer, 38 percent were upset with the cost of insurance and 20 percent complained about their insurer’s customer service.
Michael Letcher, founder of the Home Insurance Buyers Guide, plans to publish satisfaction ratings for individual insurers in the coming months, but says he does not have names as of yet because he needs a larger sample size.
Letcher’s paid subscription site is one of two aimed at helping consumers navigate finding property insurance. The other free site is run by the state, Shop and Compare Rates.Com. http://Shopandcomparerates.com/
Letcher has also been tracking which insurance companies the canceled insurance policyholders using his site are coming from. They are: State Farm, 29 percent; http://statefarm.com Allstate, 18 percent; http://Allstate.com/ Nationwide, 11 percent; http://nationwide.com Travelers-First Floridian Auto and Home Insurance Co., 9 percent; Metropolitan Property & Casualty Insurance Co., 7 percent; Hartford Insurance Co., 7 percent; and Hanover Insurance Co., 7 percent.
The biggest slice of the cancellations is coming from Palm Beach, Broward, Orange, Pinellas and Brevard counties, he said.
Combined, the insurance companies are expect to drop more than 150,000 policyholders in 2008.
Leaving Florida
WFTV reports that Met Life is leaving Florida.
The business says it will not renew many home insurance policies.
If another hurricane hit, Met Life might be out of business.
The business says it will not renew many home insurance policies.
If another hurricane hit, Met Life might be out of business.
MetLife said letters are going out to many of its home insurance policyholders in Florida. The company says hurricanes have made it too expensive and risky for the company to continue providing as much coverage in the state.MetLife couldn't say right away how much it's spent in recent years on claims and wouldn't say exactly how many homeowners will not be renewed. They said the changes also affect homeowners in other gulf coast states and along the eastern seaboard.Eyewitness News did find out the company insures about one percent of homeowners in Florida.Two days ago, Eyewitness News reported that State Farm was joining other major insurance companies that have left Florida. The company is dropping 50,000 customers and will not write any new policies after this Friday.Ironically, Kaplan and his wife found a State Farm agent willing to pick them up."I'm not going to forget what happened to me. I have auto insurance with Metro and that may also be jeopardized," Marvin said.MetLife said it will continue to write auto insurance claims, because it's less risky. MetLife also said they will continue to carry some home insurance policies in Florida, but didn't provide details.
Previous Stories:
- February 25, 2008: State Farm Dropping 50,000 Customers, Not Writing New Fla. Policies
- February 24, 2008: State Farm To Stop Writing New Homeowner Policies
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