The two presidential candidates have very different views on health care and health insurance. With Election Day only one day away and with all of the different issues on the table- take a few minutes to brush up on each candidate’s stance on health care and insurance and let us know which plan you support and why!

Home insurance rates can vary tremendously from one state to the next.  A great deal of factors weigh on how much certain state residents pay for their insurance.  First let’s take a look at the average premiums for the 10 most expensive and 10 least expensive states for home insurance premiums:

Top Ten Most Expensive States for homeowners Insurance:

 As you can see in the table to the left, Texas home insurance carriers pay the highest premiums in the country at around $1,372/year.  Louisiana and Florida are not far behind paying $1,144 and $1083 on average, respectively. It should be no surprise that the top 3 most expensive states are Gulf coast states- the most exposed to Hurricane risks.  Florida and Texas also rank 2nd and 3rd in the top states for coastal population growth.  California home insurance carriers also pay extremely high rates due to earthquake risks
DATA SOURCE: National Association of Insurance Commissioners

Florida and Texas can also be found in the top 3 ranks of states with the most valuable coastal properties vulnerable to Hurricane damage.  Texas and Florida homeowners have seen the greatest percent increase in rates over the past few years- especially coastal residents. However, inland homeowners are paying the increases as well and much debate has come over whether they should have to pay in increases that reflect risks of coastal homeowners.

However, in times of financial instability in our country- it’s reassuring to also take a look at some of the homeowners who pay the least amount in home insurance premiums each year.

Top Ten Least Expensive States for Homeowners Insurance:

As you can see in the table to the left, Idaho homeowners insurance carriers pay the cheapest home insurance premiums in the U.S.  At only $457/year, they are paying about 1/3 of what Texas homeowners pay each year.  Utah, Oregon, Wisconsin and Delaware follow close behind, where homeowners all pay under $500/year for homeowners premiums.

 While it is difficult to say exactly why these states’ premiums are lower, some home insurance professionals believe that it is a combination of multiple factors.  One factor is the insurance bureau in each state. Each insurance bureau operates independently and may determine rates differently.  Another observation is that most of states with the least expensive premiums are comprised of more rural areas than those with the most expensive premiums. A smaller population density may mean a smaller shared risk for these homeowners.
 
DATA SOURCE: National Association of Insurance Commissioners

When we light up the jack-o-lanterns are we putting ourselves at risk?

October 21, 2008 — According to the 3 year U.S. Fire Administration (USFA) study on Halloween fires, during the three days around Halloween there were 15,500 fires causing $92 million in property loss, 45 deaths and 175 injuries. The research also shows that open flame fires increase by 50 percent during this time period due to the increased use of candles.

“To prevent the spike in open-flame fire claims each year around October 31^st, homeowners should take necessary safety precautions.  These include using battery powered candles as opposed to open flame candles for jack-o-lanterns and other Halloween decorations”, said Carlos Lagomarsino, CEO for HomeInsurance.com.   

Because of the increased incidences of mischief on Halloween night, it is not surprising that a great deal of these fires are associated with suspicious behavior and arson.  The USFA reports that of the Halloween arson fires, it is estimated that 20 percent involve drugs or alcohol most likely attributed to holiday partying.

DATA SOURCE: USFA

Tips to help prevent home fires this Halloween:

·         Use battery powered candles to light up Jack-o-lanterns as opposed to open flame candles

·         If you must use candles, never leave them unattended

·         Make sure that decorations such as streamers, corn stalks and scarecrows are not able to be blown into open flames

·         Keep the front of your home well-lit to discourage mischievous behavior

If you experience a fire or or need to file any other type of home insurance claim, contact your home insurance company immediately.

Winter months mean an increase in fire claims for home insurance companies

According to the U.S. Fire Administration, heating fires were the second most common cause of residential fire loss in 2006. With 44 percent of heating fires occurring in December, January and February, homeowners should take safety precautions to protect their family and home from fire damage and loss this winter.

Confined heating fires, such as fires in chimneys, flues, fuel boxes or boilers account for 86 percent of all heating fires. For this reason, homeowners should always be sure to clean out their chimneys and flues before starting a fire in their fireplace this winter. The Chimney Safety Institute of America recommends hiring a professional, National Fire Prevention Agency (NFPA) chimney inspector who will address all fire risks and perform an inspection that meets NFPA inspection standards.

Other heating fires are often caused by the misuse or failure of heating equipment. According to the NFPA, the leading factor contributing to home heating fires from 2002-2005 was heating equipment being placed too close to things that can burn such as furniture, clothing, mattresses and bedding. Space heaters have been found to be the most dangerous of all heating equipment as they are often placed close to beds and other furniture in common living areas in order to maximize heating. The U.S. Consumer Product Safety Commission offers the following tips for safe function:

· When selecting a space heater, buy one that has been tested and certified by a nationally recognized testing laboratory

· Select a space heater with a guard around the flame or heating element area

· Never use or store flammable liquids around a space heater

· Always keep space heaters at least 3 feet from objects

· NEVER leave a space heater on when you go to sleep or leave the immediate area where the heater is functioning.

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“We continually look to remind people that standard homeowners and renters insurance does not cover flood damage. Flood damage is excluded under standard homeowners policies. Only a flood insurance policy, available to homeowners and renters through the federal government, will cover flood-related losses.”
– Loretta Worters, Vice President of the Insurance Information Institute

The flood insurance data that we obtained through our September Flood Insurance Survey sparked a great deal of research on our end into the purchasing habits of flood insurance policy holders. After learning that 32 percent of homeowners do not feel that flood insurance is neccessary we also found that flood insurance sales seem to skyrocket right after a major hurricane hits the U.S.  When a few months go by without a hurricane disaster, sales drop again.  Does it take a catastrophe to raise awareness?

Read the full article, Flood Insurance - necessity or commodity? and get real data about flood insurance and U.S. hurricanes. Read about the importance of flood insurance from insurance expert Loretta Worters, Vice President of the Insurance Information Institute. For more info, read the Flood Insurance Guide or visit the National Flood Insurance Program website.

Home insurance is always a good idea for homes that are under construction. Without it, you are exposing yourself to a great deal of risk.  If there was a fire, theft or other damaging event to your incomplete home- you would not be insured without homeowners insurance.

A standard home insurance policy for your home can be purchased without contents insurance.  This way, since you do not have personal belongings in the home yet, you aren’t paying for unnecessary coverage. A home insurance company will not insure your home’s contents at this point anyway- since they can not be locked securely inside. This type of policy would offer liability coverage however, which would be beneficial in case anyone was injured on the job site.

When the building is complete and secure (walls, doors, locks) you can add contents coverage to your policy.  Also be sure to re-evaluate your policy to make sure you have enough dwelling coverage to cover the home in it’s finished state.

D,

As usual you will have to check your policy for specific details, however, in most cases it will be your home insurance policy to cover the damages because the damage was done to your property. Your neighbor’s policy covers damages to his property- while your policy insures yours. 

In some cases this rule might not apply.  For example, Let’s say your neighbor’s tree was hanging over your property before the fall, and your submitted a request in writing asking him to remove it.  If he/she did not remove it, and then it crashed into your fence and shed, you might be able to get his insurance company to cover it. Really, it depends on the specific details of the situation- and your home insurance agent can best advise you on how to handle it.

HomeInsurance.com

October 9, 2008- In Ohio, local government and national insurance companies are adding up the damage caused by Hurricane Ike. The Ohio Insurance Institute is reporting about $553.1 million in insured losses- most caused by the  winds created by the hurricane.

This storm is the highest damage total in the state  since 1974 when Ohio residents were hit by Xenia tornado outbreak.  The Xenia tornadoes caused roughly $600 million in damages- equal to about $1 billion today.

About 121,624 claims were filed.  Of these claims, an estimated 88 percent were home insurance claims. Most home insurance insurance claims, which totaled about $461 million,  involved roof, siding, window and wall damage cause by toppled trees.  Auto claims made up 7.5 percent of claims totalling about $22.7 million in damages.  The remaining claims consisted of claims for commercials property damage, business interuption and refrigerated property losses totaling $69.1 million.

Janet and Cade,

A common question and a very good one.  Yes, by all means you will need to change the homeowners policy once your property becomes a rental property. The policy will differ from your current policy in 3 major ways:

1-The new policy will not cover contents coverage unless you are planning on furnishing the unit for your tenants

2- Liability issues will be more of a concern to protect you from injuries/accidents that occur on your property

3- You will need to be protected from the loss of rental income in the event your tenants are forced to leave because the home is damaged due to a covered peril

Fortunately, there are rental policies that are designed for this very purpose. These policies can vary greatly from each other depending on the company that you are working with. Some thing to consider when shopping for a home insurance quote:

• Make sure that the policy has substantial coverage for Liability and Medical Payment to cover your responsibility for accidents and injuries that occur on your property.
• Look for a policy that covers loss of use which will reimburse you for loss of rental income in the event that the home must be evacuated due to a covered peril
• If you are leaving any appliances or other personal property on the premises be sure to carry enough contents insurance to cover the loss of these items.  However, you do not need to carry the standard amount of contents insurance which would cover furniture, furnishings, etc, if you are not furnishing your home.  Your renters should get renters insurance to cover their items.
• Do you have detached garages or sheds? be sure to discuss coverage of these items with your agent
• Make sure to have dwelling coverage which will cover the structure of your home in the event of a covered peril

Thanks,

Your Agent@HomeInsurance.com

J.D. Powers and Associates performed a survey in June 2008 to track the satisfaction among 12,900 policy holders of auto and home insurance. While overall satisfaction had not varied much since the last study in 2004, one aspect of homeowners insurance seemed to shine: customers who bundled their auto and home insurance together with the same company reported a 10% higher satisfaction level than customers who insured their home and auto seperately.

The reason being?

Most insurance companies who offer home auto bundles offer their customers a 10-15% discount off of their homeowners insurance. Read about more insurance discounts available here.