Over the past month or so, the creative agents at HomeInsurance.com have been working on their “viral videos” as part of a contest to promote HomeInsurance.com. Agents were given free reign when it came to creativity and were asked to produce their interpretation of a promotional video for the company.

Our entries were nothing short of creative and really funny!

The winning team produced the following HomeInsurance.com Music Video:

Anyone who is shopping for auto insurance knows that one of the great debates is how high or low to set your deductibles. Having a low deductible is of course ideal in the event of a covered claim or accident. However, you’re going to pay a bit more for it in your premium. So you may try and increase that deductible in order to get your premium down. But when are you crossing the line and leaving yourself open to too much risk?

There’s no right or wrong answer for everyone. However, you can use the tips below to help you determine what deductible amount is right for you and your auto policy.

Avoid Extremes
A really high deductible is going to leave you open to a lot of risk in the event of an accident or other covered claim. For example, if your collision deductible is $2,500 and you cause an accident tomorrow- be prepared to pay $2,500 out of pocket for your damages before your car insurance company will pay towards the claim.  However, if you set your deductibles as low as $50, you may see your premium increase considerably. To be on the safe side, try to stay in the “middle of the road” (figuratively speaking of course!) that way you aren’t leaving yourself open to considerable risk in the event of an accident, but you’re not draining your wallet on monthly premiums either.

Keep it comfortable
When deciding what deductible makes sense for you and your family it really comes down to your financial situation. If you typically have enough extra funds in the bank to cover a $1,000 deductible in the event of a claim without it causing financial struggle for you, then that might be a comfortable deductible. On the other hand, if that same $1,000 deductible would set you back considerably- you might want to opt for paying a few more dollars each month and go for $500 deductible.

Know your Risk
While no one can ever know when an accident will happen, some people may pose a higher risk for accidents than others. For example, if you have 2 teenage drivers living under your roof,  you are typically going to be at more of a risk for fender benders than a middle aged couple that doesn’t drive often. A family with inexperienced drivers may therefore opt for a lower deductible and  slightly higher premium in order to cover their finances in the event of a claim.

Understand your Coverage
Before making any decisions about your deductibles make sure you talk to your agent about what is included in all of your coverage options. For example, if you select a $500 deductible and full glass coverage for your comprehensive coverage, does that deductible apply for a glass claim? If so, you might end up paying for a new windshield out of pocket since they typically cost less than $500.  Some companies waive the deductible for a glass claim. Talk to your agent about the specifics so that you know exactly what you are purchasing.

Be Prepared
Whatever your deductibles may be, it might be a good idea to always make sure you have that extra money somewhere in the event that you need it. For example, if your comprehensive and collision deductibles are set at $500, it might be wise to make sure you always have $500 available in your savings account. That way, you always have that extra cushion and you don’t have to worry about coming up with the funds in the event of an accident.

For more information, read: Factors that affect your auto insurance premium

So you know that where you live and the age of your home may affect your home insurance premium. But did you know that your family pooch might also help raise the cost of your homeowners insurance? Here’s some information about how man’s best friend can sometimes be a home insurance agent’s worst nightmare and how to prevent associated claims.

Most homeowners are already aware that since their home insurance policy offers liability coverage there are certain dog breeds and dog related claims than can cause your insurance premiums to go up. The list of  “dangerous breeds” varies from one company to the next but most of them almost always include:

• Pit bulls
• Rottweilers
• German Shepherds
• Malamutes
• Huskies
• Chow Chows
• Dobermans

Other breeds considered dangerous by your insurance company may include American Staffordshire Terriers, Stafford Bull Terriers, Akitas, Great Danes and Bull Mastiffs. Many advocates of the breeds listed above defend the notion that an entire breed should not be considered “dangerous” simply because certain dogs of that breed are more prone to inflicting injuries. Insurance companies, however, use data from the Center for Disease Control (CDC) which shows that these breeds are more likely to cause injuries and death than other breeds.

The truth is, any dog breed can cause an injury. So even if you have a Golden Retriever (which is a breed commonly known for non-aggressive behavior) that causes an insurance claim on your homeowners policy- expect to see some changes on your homeowners insurance.

Insurance companies will typically choose to either not insure a homeowner who owns a ”dangerous” dog or to offer them higher than normal premiums. This is because they consider that homeowner to be  more likely to file a liability claim than a non-dog owner or an owner of a non-aggressive dog.

The truth is, even a well behaved, non-agressive dog can display aggressive behavior out of the blue. So you should know how to prevent dog claims on your property in order to keep your insurance premiums down.  

Here are a few tips:

Socialize your pooch: This applies especially to dogs who might be skittish or aggressive towards new people or other animals. Try taking your dog to a dog park or dog training class where there are other dogs around so that they get comfortable socializing with new animals and new people. Keep your dog leashed until you can be sure they are comfortable with new faces around them. This can help your dog when it comes to new people or animals entering your property.

Post a Sign: Keep a sign on your property or fence that lets visitors know that there is a dog on the premises. This may help deter neighbors or neighborhood children from entering a fenced-in area without knocking or making sure you are home and the dog is comfortable with them entering.

Fenced Off: This may seem obvious to most but some new dog owners may not realize the importance of having a fenced in area for their dog. This not only keeps your dog safe but can also prevent the pooch from roaming the neighborhood or chasing the neighbor’s child who is riding their bike down the street. Get a fence that your dog cannot dig under or squeeze through to make sure they are properly secured.

Spay/Neuter: Dogs that are spayed and neutered are often much less likely to roam. If your dog has not yet been spayed or neutered you should talk to your vet about this option.

For more information about dog-related liability claims visit: Lawsuits Can Take a Bite Out of Your Wallet; Be a Responsible Dog Owner by the Insurance Information Institute or How can I reduce the risks of dog bites on my property? by HomeInsurance.com.

For many homeowners, flood insurance coverage may seem optional. For example, if your lender doesn’t require you to carry flood insurance or if you no longer have a mortgage, flood insurance may seem “unnecessary”. However, the need for flood insurance is ever-present, and as hurricane season peaks across the U.S. homeowners should be mindful of what type and how much coverage they have.

The Insurance Information Institute reported last week that the urgency of this matter is even greater this year as the National Flood Insurance Program (NFIP) is set to expire and will only be selling new residential and commercial policies until Thursday September 30, 2010. Peak hurricane season lasts through November 30th-  although a hurricane could hit the U.S. at any time. If the NFIP’s flood program doesn’t renew on September 30th- homeowners may be unable to buy flood insurance at all until further notice.

While wind and hail coverage under a standard homeowners insurance policy may cover damages caused by hurricane force winds and driving hail- the rising flood waters typically seen during any hurricane can cause a devestating amount of damage to residential and commercial buildings. The damage caused by these flood waters is not covered under a standard homeowners policy and only provided under a flood insurance policy.

This year also marks the 5 year anniversary of Hurricane Katrina which is a grim reminder for many U.S. residents in the southern coastal states that flood insurance and hurricane awareness are not to be taken lightly. Yet even after Hurricane Katrina took around 1400 lives and caused about $16 billion worth of damage from flooding, only about 1 in 10 homeowners in the U.S. have a flood insurance policy.  (For more info see the III’s white paper, Hurricane Katrina: The Five Year Anniversary).

Your best bet is to include your understanding of your flood insurance coverage in your Hurricane Preparedness plan. Ask your homeowners insurance agent about the type of coverage you have in the event of a hurricane and whether or not it is enough.  Make any changes to your policy now- before disaster strikes. And remember to re-evaluate your coverage next year as well.

You get the car insurance bill each month and pay it on time like a good policy holder. But do you really know where your premium dollars are going? Below are some of the biggest factors that affect your auto insurance premiums.

Vehicle Type- The type of car you drive will greatly affect your auto insurance premiums. For example, you may pay lower car insurance premiums than another comparable driver if your vehicle is less prone to theft, if it holds a higher safety rating and if the value is lower. This type of vehicle is less risky to insure and less expensive to repair/replace in the event a claim is filed.

Coverage- There are many different types of auto insurance coverage ranging from basic liability coverage to the most comprehensive collision package. As you can guess, the more coverage you have the higher your premiums.

Driving Record- Car insurance companies will also take your driving record into consideration. If you have a history of tickets, accidents or especially major violations- you may pay much higher rates than a driver who has a clean record.

Insurance Score- Every insurance company also considers a policy holder’s credit-based insurance score when determining what premiums you will pay. Basically, your credit score and payment history is taken into account and customers with a better credit rating will be rewarded with lower rates.

Discounts- If you qualify for certain auto insurance discounts you may pay lower insurance rates. Discounts range from vehicle safety discounts to discounts for members of the military. When comparing quotes make sure you take discounts into consideration.

Your State of Residency- The state you live in will also affect your rates. Not only does each State Department of Insurance determine what insurance companies can and cannot charge for auto insurance, but they also determine minimum coverage amounts that all drivers must carry.

Since summer is the peak season for lightning activity and therefore lightning  injuries and deaths, it is most suiting that this past week, June 20-June 26th was coined “Lightning Safety Week”.

The goal of lightning safety week is to educate people, young and old, about the dangers of lightning and how to stay safe when lightning is present. Though lightening is most prevalent in the summer months, it strikes year round, and was responsible for 34 fatalities in 2009.

The National Weather Service reminds people that even when lightning strikes don’t cause death, they can unfortunately leave people with debilitating injuries such as memory loss, attention deficits, sleep disorders, depression and more.

Here is a lightening safety reference guide from the National Weather Service: Lightning- What You Need to Know

For more information on lightning safety and how lightning damage can affect your homeowners insurance, visit the HomeInsurance.com disaster guide: Preventing Lightning Damage

So you’ve booked that big vacation over the summer and you’re counting down the days until you leave. Unfortunately, what most people don’t expect when they plan a big trip is the unexpected. The stories of vacation plans fouled are the last thing you want to think of- but should be considered. For example, what happens if:

• Your flight gets cancelled and you can’t board your cruise ship before departure?
• There is a serious illness or death in your family right before you leave?
• A hurricane strikes in the area you are supposed to be visiting?

Every year travelers are affected by the scenarios above. The problem becomes, can you get your money back for the expensive trip if you cancel that close to your departure time? Typically, no.

That’s when Travel Insurance can come in handy.

Travel insurance typically covers you and your family in the event that your travel plans are disrupted such as in one of the scenarios above. Most travel insurance plans will not only reimburse you for travel expenses due to a covered reason but also assist you if you run into an issue on your trip such as your wallet being stolen, your luggage being lost or helping you find medical help if you are injured or fall ill.

Coverage and premiums vary of course depending on the trip and the costs involved, but it may be worth looking in to if you don’t want to risk the financial investment you’ve made into the vacation.

So, you probably already know that a good credit score can mean lower interest rates on loans. However, did you know that many insurance companies offer discounts for consumers who maintain an above average credit rating? Here’s how it works and what you should know:

When you get an insurance quote (home, auto, etc.) the insurance company assigns you with an insurance score. Your insurance score takes many things into consideration, one of those being, you guessed it- your credit rating. The higher your credit rating, the better your insurance score.

Insurance providers then use your insurance score as a factor in determining your insurance premiums. If you have a good insurance score, you may qualify for a discount that other policyholders (with lower insurance scores) are not offered.

Studies have found a distinct correlation between a consumer’s credit score and their likelihood of filing an insurance claim. Providers also correlate a higher credit rating with the chance that a consumer will pay their premiums on time more regularly. So, it is only natural that they will reward those customers with a strong credit rating with lower rates.

For more information about insurance scores visit Your Financial Responsibility and Insurance Risk.

So, if your credit rating is less than desirable this is just one more reason to start turning it around. Here are a few tips for improving your credit rating:

1- Know Where You Stand- Get a copy of your credit rating from all three major bureaus. All three may offer different credit scores so you should check all of them.

2- Verify- Review all three reports and make sure that all of the information included is correct. If you find any accounts listed that aren’t yours or are being reported incorrectly open a dispute with the credit bureau that is reporting the account.

3- Make Good on Negative Accounts- If you find that you owe money to a specific credit collection agency, contact them and make payment arrangements. Once the account is paid off, ask for a letter to confirm this and find out when they will be reporting the satisfactory account to the credit agency.

4- Stay on Track- Once you have cleared up any negative accounts, make it a point to not let any other accounts go unpaid. If you are having trouble paying your bills, contact the company that you owe to and ask to setup a payment plan. Even if you have to split up a payment over a few months- it’s better to get it out of the way then to pay for it in the long run with a poor credit rating.

Julie,

Your insurance company can never force you to replace your roof or any other part of your home. However, if your roof is in poor condition due to a lack of proper maintenance, the insurance company does have the right to non-renew your policy. Every provider is different, though, and you should check the specific details of your policy for more information. If your insurance company is considering to non-renew your policy, it might be in your best interest to have your roof repaired or replaced. This might help you lower your insurance rates and will make your home less susceptible to wind and hail damages.

If you live in a coastal state and own a home you have most likely faced the fact at some point that your home could be affected by a hurricane. Since weather predictors are saying that the 2010 summer could be a very active hurricane season, it’s best to know what kind of homeowners insurance coverage you have for hurricane damage and the type of deductible that your policy includes.

In the wake of hurricanes Katrina, Ike and other major storms of the past decade, many insurers have changed the types of deductibles that they offer on hurricane or wind damage. In the past, a standard homeowners insurance policy would offer a fixed deductible such as $500. This means that in the event of  a claim, a homeowner would pay the first $500 in damages out of pocket before the insurance company would pay towards the claim. Some insurers, however, are putting into effect a deductible based on a percentage of the replacement cost. For example, if a home with a replacement cost of $200,000 had a 2% hurricane or wind/hail deductible, they would pay $4,000 out of pocket before the insurance company paid towards the claim.

Some insurers may make the percentage deductible mandatory, while others may give homeowners the option to have a set deductible but pay a higher premium. That all depends on the insurer.

However, what is known for sure is that as a homeowner you should be aware of the type of hurricane and/or wind deductible you have on your current policy. If you are uncertain, check your homeowners insurance policy or contact your insurance agent.

For more information on recent insurance development in coastal states visit this III.org article.