HomeInsurance.com has recently announced the kick-off of their Save to Win Contest which offers homeowners the chance to save on home insurance and win a $250 Lowe’s Home Improvement gift card.  Save to Win contestants work with HomeInsurance.com agents and compete to see who can save the most money on their home insurance policy- the biggest saver takes home the prize.

“With the current economic slump and foreclosure rates skyrocketing, we know that homeowners could use the savings now more than ever”, said Carlos Lagomarsino- CEO of HomeInsurance.com. “While we always save our customers the most amount of money possible on their homeowners insurance, the contest will encourage more homeowners to explore their savings opportunities and possibly even win a $250 gift card”.

The contest begins on October 6^th and runs through December 5^th. Contestants must purchase the new policy through HomeInsurance.com to qualify.  They must also submit proof of their savings from their old policy to their new policy.

“The process is very simple: Customers get a low quote, purchase a policy and then fax us proof of their savings”, said Bruce Berry, V.P. of Sales.  “The biggest saver wins.”

Saving on home insurance is nothing less than embraced by most homeowners who have felt the effects of the post-Katrina rate hikes and the looming mortgage crisis. Residents of Texas and Louisiana know this all too well as they pay the highest home insurance premiums in the country- an average of $1,258 per year (not including flood).

The Save to Win contest will run for 60 days and contestants must fax proof of their savings in by December 5^th, 2008 5 PM EST. Contest details can be found at: homeInsurance.com/savetowin

Now in Texas, the Department of Public Safety troopers are using a system that instantly verifies whether a driver has liability insurance.

“If you don’t have liability insurance for your vehicle, your chances of getting a ticket just went up dramatically,” said DPS Lt. Louis Sanchez.

Previously, if you carried a valid insurance card, that was proof enough of being insured. Now, law enforcement officers will be able to tell through the new database if you are not insured or if you have had a lapse in coverage- which your insurance card would not expose.

“As we receive information regarding the compatibility and reliability of the information from DPS, which is provided by this database, we will be in a better position to answer questions regarding its utility and its effect on our policies,” said Executive Assistant Chief Mike Thaler.

Driving with liability insurance in Texas carries a maximum fine of $350.

D,

While you should check the details of your specific policy, most standard home insurance policies will cover your firearms as they are considered your personal property.  Like other items of personal property, your home insurance policy should cover these items in the event that they were destroyed or stolen minus the appropriate deductible.

There are limits to the amount of coverage, however, that an insurance company will provide for any one particular item.  Typically, a standard home insurance policy will cover up to $2500 for firearms.  If you feel that you need additional coverage above and beyond what is included in your standard policy, you should look into purchasing additional insurance coverage from your insurance company.

Thanks,

Your Agent at HomeInsurance.com

Georgia has just become the 26th state to offer specialty homeowners insurance for environmentally friendly homes. Previously, homeowners with green elements in their home (solar panels, geothermal heating, etc.) were not covered for these items. For example, if a green home was destroyed due to a fire, the insuring company would only provide replacement of standard systems (solar panels would be replaced with a basic water heater, etc.) Green building is more expensive because it requires special appliances, hard to find plumbing fixtures, etc. Officials from the Green Building Council say that this cost can be justified by most homeowners because they typically save about 30% on their utility bills.

Now, homeowners with green homes are able to purchase green home insurance that specially covers their green systems, appliances, etc. Even owners of traditional homes can purchase a green add-on to their policy so that in event that their home is ruined, the insurance company will pay for their home to be rebuilt as a green home.  Green homeowners insurance not only replaces the home with green systems, appliances, materials, etc., but it also covers the cost of hauling away construction waste to a recycling center as opposed to a junkyard. 

So is green home insurance the home insurance of the future?

Kay and Jim,

While Standard homeowners insurance policies do typically provide coverage for trees, shrubs, plants and other forms of landscaping coverage can vary quite significantly from one homeowners policy to the next. While I will outline some basic coverage amounts below- it’s always best to read through your specific policy or call your home insurance agent for more details.

Most policies have a limit on coverage they will provide for each item  and each occurrence. For example, a basic policy might provide anywhere from $250-$500 wiorth of coverage for a spcific tree or shrub.  The same policy might have a maximum coverage amount of $1,000-$5000 for each incident. Also, keep in mind the specific perils that are covered in your policy.  Most standard policies will provide coverage for damages caused by vandalism, fire, lightening, explosion, theft, etc.  However, when most homeowners inquire about landscaping coverage- they are looking for protection from flood damage. Flood coverage is not covered under a standard homeowner policy- so this type of damage wouldn’t be covered.

Some insurance companies offer a landscaping endorsement that can be added to your policy to offer specific coverage for your trees, shrubs, plants, etc.  I would recommend contacting a home insurance agent to find out more about this option.

Thanks,

Your Agent@HomeInsurance.com

Janet,

A home/auto discount allows homeowners to get a special reduced rate on their home policy. While you must insure both your home and your car with the same company in order to receive this discount, the policies will be written seperately.

Becasue of our partnership with Travelers Insurance Company, we are able to offer our customers a Home/Auto discount which typically will save you about 15% off of your homeowners insurance.

Have you heard about the other home insurance discounts out there today? Read about home insurance discounts and see if you qualify. Otherwise, start your home insurance quote here and make sure to let your agent know that you would like a home/auto discount.

Thanks for visiting,

Home Agent

Governor of New York, David A. Paterson announced that the state is implementing a multi-billion dollar finance plan to help secure the financial stability of AIG (American International Group), the world’s largest insurance company.

The good news for taxpayers and homeowners?  The plan does not rely on tax money so NY homeowners should not feel the financial burden of this plan.

The state’s plan includes a series of transactions with AIG that will help raise immediate funds.  These funds are needed to help pay claims to AIG’s policyholders.

“Wall Street’s continuing problems should serve as a stark reminder that this recession is far from over.  New York State has taken the first step towards helping to stabilize AIG, which is otherwise a very healthy company.  On a state level, we are able to reach a market-based solution that will stabilize AIG at no cost to New York taxpayers”, said Paterson.

AIG policyholders are being reassured that their policies are safe, and still effective.

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Robert,

While many companies can offer competitive rates on standard home insurance, flood insurance rates are standard and set by the Federal Emergency Management Agency (FEMA). These rates are calculated using criteria such as the type of flood zone (preferred or not preferred?) you live in and the structure of your home (stick built? Crawlspace or slab?). While you may purchase flood insurance from any home insurance company, all companies will utilize FEMA’s National Flood Insurance Program to “underwrite” your policy. This is why the rates will always be the same from one company to the next. If this rate seems to be higher than what you expected or are able to pay, make sure to speak with your home insurance agent about saving more money on your standard home insurance policy to offset the cost.  See some of our home insurance savings tips.

Thanks,

Your Agent@HomeInsurance.com

The debate that has been stirring since Hurricane Katrina (and has developed even more since Hurricane Ike) is about coastal home insurance rates vs. inland home insurance rates. Many representatives from the House Insurance Committee are arguing that coastal homeowners haven’t been paying close to what they should be for homeowners insurance considering their exposure to major hurricane damage.

In a recent article by Dallas News, Texas state Rep. John Smithee (also a chairman of the House Insurance Committee) was quoted as saying, “People on the coast don’t want to pay higher insurance rates.  I don’t blame them for that.  But what they have been paying just isn’t realistic.  They have been living in a fantasy land.”

Smithee and others on his side of the debate argue that the risk of coastal hurricane damage is pushing up insurance rates in all corners of the state- even those who live hundreds of miles from the coast.

On the other end of the spectrum, representatives from coastal, low lying areas argue the opposite.  In the same Dallas News article Lee Otis Zap, President of the Galveston Windstorm Action Committee argues that while coastal residents will have to pay more for storm coverage- the increase should not be as substantial as some legislators are proposing.

“You can kill the economy of the Gulf Coast with this thing if it’s done wrong,” said Zap.

So where will insurance companies find the funds to cover the risk of coastal homeowners?  The next few months/years to come will surely tell.  HomeInsurance.com is based in the coastal city of Wilmington, NC, so I understand the risks and insurance coverage issues in coastal areas.  I also understand the need to provide low rates for all homeowners- especially those who live in lower risk areas. So I guess for this one- I’m on the fence.  What does everyone else think?

A recent study examined the trends in auto insurance consumers actively looking for auto insurance policies. The study, performed by J.D. Power and Associates, found that on on average, major auto insurance companies only capture about two percent of all auto insurance customers.  Surprisingly, 36 percent of auto insurance shoppers ignored the top insurance brands when they made their purchasing decision.

A recent article in the Insurance Journal quoted the Senior Director of Insurance Practice at J.D. Power and Associates, Jeremy Bowler, saying that, ” Unwillingness to consider a brand is generally caused by a previous experience with a  company, a lack of bundled or desired options, or feedback from friends and family.  In particular, the impact of reccomendations and referals is critical to whether or not a prospective customer will even consider an insurance company”.

The study also found that traditional insurance sales methods (phone, in person) might be closing more policies than online attempts. With traditional close rates being about 52%, stricly online methods only conjure in sales from approximately 20% of their leads.

Bowler went on to say, however, that, “One interesting tactic being implemented in the industry is for one insurer to offer quotes from multiple competitors.  One in three shoppers who receive a competitors quote from the company they are currently investigating don’t bother to call or visit that competing company directly to obtain a real quote from them.”

Editorial Note:  At homeInsurance.com we offer competitive auto insurance quotes using the same “multiple company shopping” process that we implement for our home insurance sales. We agree with Mr. Bowler’s statement because we see the benefits of shopping multiple quotes for our customers everyday.  Not only do our customer’s save time, but we can also usually save our customers up to 50% on their premiums. Hopefully, as consumers become more aware of comparison shopping, more homeowners will begin to benefit from this free service.  Remember, even if you do not decide to use a comparison site like HomeInsurance.com, always do your own comparisons- shop around to get the best rates.