What can I do to reduce my homeowners insurance costs?

Fri, 26 Jun 2009 02:22:32 GMT

Homeowner’s insurance is required if you have a mortgage loan on your home, and even if you don’t, it is essential for your protection in case of losses or damages to your home. However, homeowner’s insurance can be a costly investment. Fortunately, there are a number of simple ways that you can reduce your homeowner’s insurance costs.

The most obvious way to immediately reduce your homeowner’s insurance costs is to raise your deductible. The higher your deductible, the lower your insurance premiums will be. While it is common for homeowner’s policies to carry a $500 deductible, consider raising your deductible to $1,000, which will lead to a substantial decease in your insurance premium costs. Nonetheless, you should keep in mind that if you live in a higher-risk area, such as near the coast, you may have separate deductibles for specific types of damages, such as hail or flood damages.

Typically, an insurance company will give you a discount if you maintain insurance coverage for your home, your vehicles, and any other items that need insurance coverage with the same company. As you shop around for insurance rate quotes from different companies, be sure to compare the differences between purchasing all of your insurance policies from the same companies, and purchasing the same policies separately from different companies.

There are a number of other types of discounts on your homeowner’s insurance premiums that you may be eligible for, as well, although these discounts vary widely in their amounts and from state to state. If you install and/or maintain a security system for your home, deadbolt locks, and/or smoke alarms, your insurance company may give you a discount. Improving your home in order to make it more disaster-resistant, particularly in areas at higher risk for natural disasters, may also lower your insurance premiums; for instance, in some states and with some insurance companies, installing storm shutters and/or roofing reinforcements will result in lower insurance premiums.

Likewise, if you are retired, you may be eligible for lower premiums since you are more likely to be at home, and thus better able to prevent burglaries and/or fires. If you are a member of a certain group or organization, such as a credit union or a professional association, you may be able to secure insurance coverage at reduced rates through those groups. Furthermore, if you stay with the same insurance company for several years, you may qualify for a discount on your insurance premiums as a long-term policyholder.

Certain aspects of your home may also get you lower homeowner’s insurance premiums. For example, if you live in an area prone to natural disasters, you might qualify for lower premiums if you own a brick home as opposed to a wood home. Making upgrades to your existing electrical and plumbing systems, or simply purchasing a newer home, might also result in lower insurance premiums. Your home’s proximity to fire hydrants, and your home’s location in a neighborhood governed by a homeowner’s association may also be factors that help to lower your insurance premiums.

How Your Car Insurance Premiums are Determined

Fri, 12 Jun 2009 18:18:00 GMT

State laws require drivers of motor vehicles to maintain certain levels of car insurance in order to legally operate a motor vehicle. Car insurance premiums can vary widely, even within the same geographic area and it may seem like insurance companies are arbitrarily assigning rates to customers. However, the calculation of car insurance premiums may not be as mysterious as it seems since there are certain things that insurance companies may legally consider when determining rates.

Factors Considered by Car Insurance Companies

Age: The youngest and oldest drivers tend to pay the highest rates for car insurance. That is because they tend to be in more accidents than middle age drivers.
Gender: Females tend to pay less for car insurance than males because, statistically, they are in fewer accidents than males.
Marital Status: People who are married tend to pay less than single people do for car insurance. Married people tend to have fewer accidents than single people.
Credit Score: Since the 1990s, car insurance companies have been considering the credit scores of potential customers when deciding car insurance rates. Federal credit reporting agencies have been able to establish a link between good credit scores and safe driving records.
Driving Record: This is, perhaps, the most important factor in determining your car insurance rates. A history of safe driving leads car insurance companies to believe that you are less likely to get into an accident in the future.
Car that you drive: drivers of older cars may pay less for car insurance than drivers of newer cars because the cost of the damage to an older car is considerably less than it is for a newer car.
Home address: People who live in low crime neighborhoods typically pay less for car insurance than those who live in high crime neighborhoods. Car insurance companies believe that your car is less likely to be vandalized and that you will be less likely to make a claim for vandalism if you live in a safe neighborhood.
Your Job: Car insurance companies typically consider how your car is used when determining car insurance rates. If you use your car to get to work and you work a distance from your home then car insurance companies may consider you a higher risk customer because the more you drive, the more likely you are to have an accident.

While car insurance companies may legally consider the factors listed above, it is important to note that consideration of these factors may have a discriminatory effect. For example, if a car insurance company decides to offer lower rates to married people then homosexual couples who live in states where marriage is not permitted may be at an unfair disadvantage. Couples who are in long term committed relationships but who are not legally able to marry may be able to pay lower premiums by explaining their situation to their car insurance company when they apply for coverage.

It is important to be aware of the factors that car insurance companies consider when determining your rate so that you can explain why you should obtain the benefit even if you don’t technically fit into the guidelines that they have established. Then, you may be able to lower the amount that you pay for car insurance each year.

How can I appeal a denial of a claim on my homeowners insurance coverage?

Tue, 23 Jun 2009 02:50:32 GMT

Your homeowner’s insurance company typically has a set amount of time in which to approve your deny your claim for losses and/or damages. In the case of major or widespread natural disasters, however, your insurance company may receive an extension of this period of time.

If your claim on your homeowner’s insurance policy is denied, you have the right to dispute the denial. Your insurance policy and/or state’s law may set forth specific timeframes in order to dispute the denial of claims; you should make yourself aware of these deadlines, either by reading your insurance policy or contacting a lawyer for assistance.

Be sure to get your insurance company’s denial of your claim in writing, complete with a written explanation as to the denial. Look at your insurance policy and compare the denial reasons to the policy language. If something doesn’t seem right, point this out to your insurance company in writing, making specific reference to the parts of the insurance policy that conflict with the reasons given for the denial of your claim.

You should always appeal or dispute the denial of your insurance claim in writing, taking care to give your name, the date of your loss, the number of your homeowner’s insurance policy, and a very specific, detailed explanation as to why you believe that your claim should be approved as requested. You should suggest remedies based on the type of dispute that you have with your insurance company, as well as any rights that you have under your particular homeowner’s insurance policy. For instance, if you feel that your insurance company is not willing to give you full value for your losses or damages as specified in your insurance policy, you might suggest that additional appraisals or evaluations of the value of the affected items take place in order to more fairly assess their value. Many homeowner’s insurance policies provide for appraisals of lost or damaged items at the homeowner’s request, under certain circumstances.

Don’t forget to keep copies of all letters that you send and receive to or from the insurance company regarding your claim. If you talk to insurance company representatives, note the date, time, the name of the person to whom you were speaking, as well as the substance of the conversation. You need to be able to reference these conversations in the future if needed.

If you properly dispute and/or appeal the denial of a claim to your homeowner’s insurance, and you are still unable to resolve the issue, you may want to consider contacting a lawyer experienced in insurance issues for assistance. Depending on your state’s insurance laws, you may have to resolve your insurance dispute by filing a complaint in court, or you may have the option to participate in arbitration or mediation, which is a more informal process of resolving disputes. Additionally, all states have departments or offices that specifically deal with insurance matters; many states have dispute resolution processes in place to deal with complaints about an insurance company’s denial of claims and/or coverage.

How can I file a complaint against my homeowners insurance company?

Tue, 23 Jun 2009 02:54:33 GMT

If you have a complaint with your homeowner’s insurance company, you should always first contact your insurance company and/or your insurance agent, and try to settle the matter informally. Make sure that you have read your insurance policy carefully, and that you have all of your facts straight before contacting the insurance company. If you are not satisfied with the insurance adjustor or other employee that you have been dealing with regarding your claim, you might ask to speak with a supervisor, or an employee in the company’s service department, or other department that handles consumer complaints.

If you still are not satisfied with your insurance company, or if you are unable to resolve the dispute informally, you should turn to your state department of insurance. Every state has an insurance department that monitors and investigates whether insurance companies have broken that state’s insurance laws. Since every state has a different set of enforcement laws that govern insurance company practices, each state department of insurance will differ to some degree. State insurance departments often publish helpful information that can help you understand your legal rights and responsibilities with regard to your homeowner’s insurance, including guidance about making complaints against your insurance company. State insurance departments typically deal with consumer-insurance company disputes that are related to coverage of claims, claim denials, payment of premiums, and policy cancellations.

All state departments of insurance have a complaint process available for making complaints against insurance companies. State insurance department employees cannot represent you in any legal proceedings against your insurance company, but they can investigate any complaint that you might have regarding your insurance company, and advise whether your insurance company’s actions, or inaction, have violated any laws or regulations. Furthermore, opening an investigation with your state department of insurance will only help you if you ultimately choose to seek legal advice about your dispute with the insurance company.

Most states have laws that regulate the amount of time within which an insurance company must respond to a complaint by the state department of insurance. Some state laws provide that insurance companies must respond to complaints within a few weeks, whereas other state laws give the insurance companies a few months or more to respond to complaints. Whatever the case may be in your state, your state department of insurance will explain the complaint process to you, and when you can expect a resolution of your complaint.

If your complaint is not valid, your state department of insurance will let you know, and explain why your complaint is not valid or why your insurance company has not violated any insurance laws. If the state department of insurance does find that a violation of the law has occurred, it can explain to what your recourse against your insurance company might be. However, it is important to remember that your state department of insurance does not have the legal authority to force your insurance company to settle your dispute, to pay a claim, or to otherwise act in your favor. Therefore, you may still need to contact legal counsel if you are unable to resolve your dispute with the help of your state department of insurance.

What are

Mon, 27 Jul 2009 03:07:57 GMT

Traditionally, homeowner’s insurance policies have contained an exclusion clause for damages caused by “acts of God”, a catch-all term that covers any sort of act of nature that cannot be controlled, like earthquakes or hurricanes. “Acts of God” also typically include damages as a result of war, i.e. a nuclear war. In recent years, however, there has been a trend toward the removal of the “acts of God” exclusion clause in many homeowners’ insurance policies, at least with respect to some such events. In any case, it is essential when purchasing any homeowner’s insurance policy that you educate yourself regarding the damages caused by “acts of God” that your policy will – or will not – cover, as well as whether you need to purchase additional insurance coverage.

Many damages to homes are caused by acts of nature, such as high winds, tornadoes, hail, storms, and ice, which may or may not be classified as “acts of God”, depending on the terms of your homeowner’s insurance policy. If your home suffers damages as a result of an “act of God”, you should immediately contact your homeowner’s insurance company in order to determine whether the damages will be covered. There are some specific types of damages that your homeowner’s insurance policy might not cover, even if they result from an “act of God” for which your policy generally provides coverage. For instance, if there is a major ice storm that causes damage to your roof, your homeowner’s insurance policy is likely to provide you with coverage for the damages to your roof. However, there are some property damages that you also may have suffered as a result of the ice storm that your homeowner’s insurance policy may not cover. For instance, some homeowner’s insurance policies will not provide coverage for the costs of spoiled food resulting from an extended power outage caused by an ice storm, while other homeowner’s policies will cover such costs. Therefore, you must read your homeowner’s insurance policy carefully, and be aware of such exclusions in coverage.

Furthermore, common “acts of God”, such as flooding and earthquake damage, are generally still excluded from coverage by most homeowner’s insurance policies. Your only option for coverage for damages caused by these “acts of God” is to purchase an add-on policy, called a “rider”, that provides you with additional coverage in the event that your home receives damages from an excluded “act of God”. Particularly if you live in a flood-prone area, you must assess the likelihood and/or risk of damages that might occur to your home as a result of flooding with the costs of maintaining additional flood insurance coverage. If your home, or homes in your area, have sustained flood damages in the past, it is likely to be worth the costs of purchasing a flood insurance rider. If you live in a high-risk area in terms of flooding, you may be able to purchase flood insurance from the U.S. government through the National Flood Insurance Program.

What are some common exclusions and/or limitations in homeowners insurance policies?

Fri, 26 Jun 2009 02:25:59 GMT

Although it can be costly, homeowner’s insurance is necessary for your protection, and even required in some cases. However, homeowner’s insurance policies don’t always cover all damages and/or losses to your home, even in situations where you might honestly assume that you have insurance coverage. Therefore, you should be sure to look out for some common exclusions in your homeowner’s insurance policy, or losses that will not be covered by your insurance policy.

While some events that cause damages or losses to your home are typically included in your homeowner’s insurance coverage, there are some events that usually are excluded, and others that are simply not insurable. For example, losses to your home caused by war or earthquakes tend not to be covered by your homeowner’s insurance policy. The only way to protect yourself against such losses may be to purchase separate insurance policies that cover a particular type of damage to your home, such as flood insurance.

Floods are one of those events that your typical homeowner’s insurance policy simply will not cover. This type of exclusion applies not only to major flooding, but also to water seepage through cracks in your foundation. The only way to protect against flood damage is to purchase a separate flood insurance policy through a private insurance company, or through the National Flood Insurance Program.

Other natural events, such as damages to your home caused by frost, landslides, melting snow, and mudslides, also tend to be exclusions in your homeowner’s insurance policy. Likewise, losses resulting from the natural deterioration of your home over time, or from normal wear and tear, are usually excluded from your insurance policy.

Mold problems are another occurrence that can not only cause major damage to your home (and your health), but which are typically excluded from coverage by your homeowner’s insurance policy. Nonetheless, some mold problems in your home may be covered, if they are the result of an event that is covered by your policy, such as a faulty plumbing system.

Similarly, damages to your home due to an insect and/or vermin infestation usually constitute an exclusion from your homeowner’s insurance coverage. Like many mold problems, insurance companies tend to consider these items to fall under the category of necessary home maintenance, which is excluded from coverage under your homeowner’s insurance policy.

Losses that you might suffer as a result of improvements or additions to your home usually qualify as exclusions from your homeowner’s insurance coverage. If, for instance, you hire a contractor to build a room addition to your home, and the workmanship is faulty in some way that causes damages to your home, your homeowner’s insurance policy typically will cover your losses. Essentially, your insurance company will not be held responsible for damages that were caused by a third party with whom you contracted.

Finally, there may be exclusions to the liability provisions of your homeowner’s insurance, as well. While your insurance policy’s liability coverage will apply to injuries that occur to a person while on your property, it normally will not cover injuries that occur to another person in the course of a business-related event, or to one of your relatives.

What is the relationship between Medicaid and long-term care insurance policies?

Wed, 15 Jul 2009 02:54:55 GMT

Long-term care insurance is available to protect your needs over time due to a chronic health condition, illness, or disease. Designed to provide hands-on help with the activities of daily living, such as eating, bathing, and dressing, long-term care insurance can be used to protect your independence, your ability to live on your own, and your ability to enjoy life to the fullest extent possible with your health condition.

Long-term care insurance policies are not a part of Medicaid or any governmental health care program. You can purchase long-term care insurance policies that are individually tailored to your needs. Therefore, long-term care insurance policies can be very different from one another, in that they provide for different types of services as needed. For instance, some long-term care insurance policies cover only stays in nursing homes and assisted-living facilities. Other long-term care policies cover only services that might be needed in the home.

As with any type of insurance policy, there are limitations on the benefits and services that long-term insurance will cover. If you cannot afford long-term care insurance, or if your long-term care insurance policy benefits have run out, you may qualify for Medicaid, a national health insurance program administered by individual states. While eligibility requirements and benefits differ from state to state, you typically must have a fairly low income and few assets. Eligibility for Medicaid is governed by strict rules about the amount and types of income and assets that you can have while received Medicaid coverage.

Due to the fact that Medicaid and long-term care insurance policies both provide similar services that a person might need in his or her lifetime, Congress passed the Long Term Care Partnership Program (LTCPP, which is a federal law aimed at protecting assets of persons who have long-term care insurance policies whose benefits have been exhausted, or who need additional services not covered by their long-term care insurance, and who now must apply for Medicaid coverage. Because of the protections it provides, the LTCPP encourages people to purchase long-term care insurance policies.

Under the Federal Deficit Reduction Act of 2005, states became free to develop Qualified State Long Term Care Partnership Programs, which offer long-term care insurance policies that qualify policyholders for protection under the LTCPP. These state programs offer long-term care partnership policies that are specifically designed for people who have purchased long-term care insurance, but who might also later need to apply for Medicaid. By purchasing a partnership policy, policyholders may be able to better protect their assets in the event that they need to apply for Medicaid benefits. Typically, these policies benefit policyholders by sheltering certain amounts of assets from the usual Medicaid rules. In other words, if you have received coverage under such a policy, you may be able to retain more of your assets in the event that you later must receive Medicaid benefits.

Unfortunately, not all states have Qualified State Long Term Care Partnership Programs, and some states will not accept long-term care insurance policies that have been purchased in other states for their programs. Therefore, it is important to check with your state’s Medicaid agency or department of insurance in order to determine which programs your state might offer in the area of long-term care insurance.

What can I do to reduce my homeowners insurance costs?

What can I do to reduce my homeowners insurance costs?

How Your Car Insurance Premiums are Determined

How can I appeal a denial of a claim on my homeowners insurance coverage?

How can I file a complaint against my homeowners insurance company?

What are

What are some common exclusions and/or limitations in homeowners insurance policies?

What is the relationship between Medicaid and long-term care insurance policies?

What can I do to reduce my homeowners insurance costs?

What can I do to reduce my homeowners insurance costs?

How can I appeal a denial of a claim on my homeowners insurance coverage?

How can I file a complaint against my homeowners insurance company?

What are some common exclusions and/or limitations in homeowners insurance policies?