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Today’s News: States Push for $16 Billion for Medicaid, Mortgage Insurance Claims Down and You May Own One of the Most Stolen Cars

Posted in Auto Insurance , Health Insurance , Home Insurance , Home Insurance Claims , Medicaid

August 18th, 2010
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State officials are looking to pass a measure that would offer much needed money for Medicaid, mortgage insurance claims have dropped and according to a new list, you may own one of the most stolen cars in the United States.

States Push for $16 Billion for Medicaid

Democrats in Senate are trying to push through a bill that would offer states $27 billion in needed funds, $16 billion of which would be used for Medicaid needs. With health insurance still unavailable to a large number of Americans, the need for Medicaid is still prevalent.

Many states are running out of money to fund the program. As a result, Democrats and President Barack Obama are pushing to pass legislation soon. In order for it to pass, however, it would have to be approved by some Republicans as well (CNN Money).

Mortgage Insurance Claims Have Dropped

Mortgage insurance—which is offered by the Federal Housing Administration (FHA) for homeowners who can’t come up with their 20 percent mortgage down payment and are in danger of defaulting—has performed better than expected this fiscal year.

However, a recent audit of the FHA has found that if housing prices continue to drop and more people take out mortgage loans and then default on them, the administration may be on the hook for more insurance claims. More claims could result in depleted funds, which could result in taxpayers having to foot the bill to cover the losses (Washington Post).

You May Own One of the Most Stolen Cars

If you’re worried about increasing your auto insurance rates then you may want to avoid some cars that the Highway Loss Data Institute has pinpointed as being the most stolen. At the top of the list was the Cadillac Escalade, which had an annual claim frequency of 10.8 out of every one thousand.

Other vehicles that topped the institute’s list include the Chevrolet Silverado, which had an annual claim frequency of 8 out of every one thousand, as well as the Dodge Charger (7.4 out of every thousand), Chevrolet Avalanche (7.4 out of every thousand) and Infiniti G37 Coupe (7.1 out of every thousand) (CNN Money).

Today’s News: Maine Seeks Health Care Waiver, Home Burglaries Increase and Blue Cross Cuts Cost by 20 Percent

Posted in Blue Cross Blue Shield , Health Care , Health Insurance , Health Insurance Companies , Home Insurance , Home Insurance Claims

August 2nd, 2010
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Officials in Maine recently asked the government for the right to be exempt from one provision of health care reform, home burglaries are said to be on the rise in the state of Texas and Blue Cross has decided to cut costs by 20 percent.

Maine Seeks Health Care Waiver

The insurance regulator in Maine recently asked the Obama administration to temporarily exempt the state’s health plans from a provision of the health care overhaul that would affect their profits. The provision is a measure of how much health insurance companies would spend on medical care in comparison to their administrative expenses and profits. The new law requires insurers to pay out at least 80 percent of the premiums collected on medical care. The insurance regulator says that these changes would result in one health plan, HealthMarkets Inc., to stop doing business in Maine, only leaving one health plan option for consumers (Wall Street Journal).

Home Burglaries Increase by 9 Percent in Texas

According to Allstate Insurance, the number of home burglary claims for the company’s customers in Texas jumped by 9 percent in 2009. Among the items that were stolen the most were flat screen TVs, laptops, jewelry and cash. While many of the burglaries looked to be neighborhood criminals, some were reported to be tied to organized criminal activity. The insurance company recommended that in addition to locking up homes securely whenever leaving the house, it’s important to have a quality home insurance policy to pick up the pieces financially (PR Newswire).

Blue Cross Cuts Cost by 20 Percent

Many insurance companies have had to make adjustments to accommodate health care reform and Blue Cross and Blue Shield of North Carolina is one of them. The company recently announced its plans to cut its administrative costs by 20 percent. This adjustment is predicted to result in the layoff of up to 4,400 employees, but will ultimately help improve financial results for the company while keeping premium costs down for customers. The change is expected to take place by 2014 (The Charlotte Observer).

How Twitter Could Increase Your Home Insurance Premium

Posted in Home Insurance , Home Insurance Claims , Save on Home Insurance

July 27th, 2010
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The president of home insurance at Confused.com, Darren Black, was recently quoted as saying, “I wouldn’t be surprised if, as social media grow[s] in popularity and more location-based applications come to fore, [home] insurance providers consider these in their pricing of an individual’s risk.” In other words, his prediction is in time, we could see home insurance coverage increase as more people take to social media sites like Twitter and Facebook.

At first glance, it seems there is no connection between home owners insurance and social media. However, from the looks of things, the two may be crossing paths through the medium of social media, which has lately been garnering as many negative effects as positive.

Burglary Rates Could Increase Due to Reckless Behavior on Twitter and Facebook

Facebook and Twitter, along with other popular social networking sites, create an environment that encourages sharing personal information. In fact, sharing is downright expected and really the point of participating in social media networks.

However, when it comes to safety, these environments aren’t the greatest. Predators can be lurking for information and waiting for the opportunity to attack.

As noted by Black, criminals are becoming increasingly sophisticated in their information gathering and can easily determine where you live by the few details you provide on your profiles, along with their savvy knowledge of Google Earth and Streetview.

It’s for this reason that it’s more important than ever to be discreet about the information you share online. Otherwise, you could put yourself at risk of burglary and increase the likelihood of a higher home insurance cost in the future.

Homeowners Insurance Companies Are Evaluating Risks of Social Media

Since home insurance companies are catching on to careless social networking behaviors, some argue you could eventually see an increased home insurance estimate as a result. Black predicted, in fact, that we may see a rise of up to 10 percent for people who use these sites as companies begin to consider social networking in their pricing for an individual’s risk.

Further, being burglarized or seeing a higher home owners insurance quote is not the only negative consequence of information sharing over social networks. If insurance companies see you as too high of a risk, they could actually reject you as a customer.

If you think insurance companies don’t look at social networking sites to gather information about current and potential customers, think again. It happens all the time and could easily happen to you as the practice becomes commonplace.

Protecting Yourself Against Burglary and Higher Insurance Rates

So what should you do to ensure you don’t run the risk of increasing your next home insurance quote? You could try to decreasing your coverage to home appliance coverage in order to pay less while remaining covered if you’re burglarized.

Of course, the idea is to not be burglarized in the first place, especially if it’s totally avoidable. So here are some tips for changing your behavior online and protecting your home and insurance rates:

• Censor what you post: Don’t post your personal information (school, work, e-mail, phone, kids’ or spouse’s names, home address) on social media sites ever.
• Don’t “friend” or “follow” people you don’t know: If you don’t know a person on a social networking site, don’t accept friend requests or follow them because it will likely open up your profile to strangers and offer information you don’t want known. Also, keep your profile private to block anyone from seeing your limited information except for your friends.
• Shut off location-based features: Any features that expose your network or location should be shut off unless they are absolutely critical.

If you’re concerned about higher rates for coverage in general, you could always shop around for online home insurance. Also, if you’re concerned that you’re making too many coverage commitments, you could look at a home insurance calculator to help you figure out how much to cover in your home.

Above all, change your habits when necessary to keep your family and home safe, and start with your social networking behavior.

Today’s News: AIG No Longer Being Probed and FEMA Offers Low-Cost Flood Insurance

Posted in AIG , Home Insurance , Home Insurance Claims

July 26th, 2010
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It seems that life insurance company AIG has been let off the hook in the criminal probe the U.S. Justice Department initiated. For those who live in risky floodplain areas, FEMA is offering low-cost flood insurance options.

AIG Is No Longer Being Probed by the U.S. Justice Department

Recently, the U.S. Justice Department announced that it has concluded its criminal probe into AIG and has chosen not to pursue charges against the insurer or its senior executives. The department pursued the probe originally to determine whether Joseph Cassano, the company’s head, had misled investors when he stated in 2007 that its portfolio of credit default swaps, which led to AIG’s fall and contributed to the financial crisis, would not produce significant losses.

After a two-year investigation, the department determined that there wasn’t enough evidence to bring criminal charges against the company. (CNN Money)

FEMA Offers Low-Cost Flood Insurance for 2 Years

FEMA has been redrawing floodplain maps all over the country, causing homeowners to purchase flood insurance who never had been required to purchase it previously. After many complaints surfaced about the redrawn maps, FEMA decided to help those struggling to pay for coverage by offering low-cost flood insurance to homeowners who live in newly-remapped areas for at least the next two years. FEMA says the cost could be as low as $300 annually, which is up to four or five times lower than what is offered by private insurers. (US Insurance Online)

Today’s News: Medicaid Funding Reduced Nationwide, House Extends Flood Insurance and Home Insurance Discounts Increased

Posted in Health Insurance , Home Insurance , Home Insurance Claims , Medicaid

July 14th, 2010
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States that were relying on Medicaid to fund specific medical initiatives are disappointed to learn that the money won’t arrive. Also, for those who’ve gone without flood insurance, a bill has been approved continued coverage and those with home insurance in North Carolina have been granted some discounts.

Medicaid Funding Reduced Nationwide

Those without health insurance and on Medicaid may suffer in the coming months as the federal government failed to pass $24 billion in additional funding for states nationwide. In Massachusetts alone, young children will lose state funding for mental health services, welfare recipients will have employment and training programs slashed and homeless families will lose almost all of the state assistance needed to move into more permanent housing. Congress was supposed to pass funding before fiscal years started on July 1, but since this won’t happen many programs around the country will suffer (CNN Money).

Flood Insurance Program Awaits Extension

Those with flood insurance have suffered a number of ups and downs over the past year with many National Flood Insurance Program expirations and reinstatements. It seems every few months the program expires and is brought back temporarily. This is the case with the most recent expiration that occurred over Congress’ Memorial Day holiday break. For almost a month, homeowners have gone without flood insurance. However, the House recently extended the program to Sept. 30 and is waiting for the Senate to pass it as well. If it doesn’t pass soon, thousands in states that have been severely flood will have to go without paid claims (Des Moines Register).

Home Insurance Discounts Increased

The lucky coastal homeowners of North Carolina will soon be entitled to bigger breaks on their home insurance premiums if they are willing to take the steps necessary to protect their homes against storms. The state’s insurance commissioner, Wayne Goodwin, recently ordered a schedule of mitigation credits that will be effective May 1, 2011. These credits, which will range from $50 to more than $50 for changes to homes that could protect against wind and hail coverage, will apply to policies that were written in the voluntary market, as well as the state-backed Beach Plan within the 18 coastal counties (Insurance Journal).

The Significance of FEMA’s Floodplain Maps

Posted in Home Insurance , Home Insurance Claims

July 9th, 2010
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There has been a lot of controversy surrounding the National Flood Insurance Program (NFIP), which has expired several times already in 2010.

Suffering through a third expiration period as of the end of June and awaiting a longer-term reinstatement by Congress, many homeowners have tried to determine how to keep their flood insurance. Many others are learning that once the program is reinstated, they will be forced to purchase the insurance thanks to new FEMA floodplain maps.

Just what is the significance of these maps and how do they relate to the NFIP and your need to purchase coverage?

FEMA and the Significance of Floodplain Maps

FEMA is the acronym for the Federal Emergency Management Agency. The agency’s purpose is to prevent, prepare for, respond to and recover from disasters caused naturally or by man made occurrences. Currently, it manages the NFIP (which administers flood insurance nationwide) and determines which areas are of the highest risk for flooding. It is also able to require homeowners in high-risk areas to purchase flood insurance coverage.

The way FEMA determines whether a homeowner must purchase flood insurance is by creating floodplain maps. With these maps, the government agency documents the areas that are more likely to flood than others, then determines who needs to purchase insurance based on their level of risk.

While the maps typically must be honored, they are not always set in stone. Sometimes, FEMA will update the maps after surveying areas and determining that they are not as high of a risk of flooding as believed. Alternatively, some areas, like southern California, discover that they must purchase insurance after years of going without.

Further, after some homeowners discover that they’ve been placed on a floodplain map, they fight their status to avoid paying for mandatory flood insurance. By bringing in a surveyor or floodplain expert who could determine that the home was not threatened by floods, they have been able to have their homes removed from the map.

Is Your Area Covered on a Floodplain Map?

You may be wondering if your area is covered on a floodplain map and if you are responsible for purchasing flood insurance. A great way to find out is by visiting FEMA’s Map Service Center. This page allows you to narrow down your search to the county you live in. If your county is listed in the system, you will see a map that shows the level of risk for your area.

Of course, if your area is considered high-risk then you should have already received some type of notice from FEMA explaining that you are required to purchase coverage. If you haven’t received a notice then you most likely reside in a low-risk area.

Should You Purchase Flood Insurance?

It’s good to know that just because you reside in a low-risk area doesn’t mean that you shouldn’t purchase flood insurance. Some areas can surprise you by quickly and unexpectedly flooding.

For instance, massive flooding hit 66 counties in Nebraska in the middle of June 2010, resulting in 53 of those counties requiring disaster relief. The flooding was the result of one of the wettest Mays in history for the state, as well as a 10-day period of excessive rain in June. Because no one expected so many areas to flood, many homeowners likely did not have insurance. That doesn’t mean they didn’t need it.

So should you purchase flood insurance for your home? If your area isn’t labeled high risk by FEMA’s floodplain map then the choice is up to you. But keep in mind that your home insurance policy does not cover flood damage, so if flooding does occur, you will have to pay out of pocket for repairs.

If you are interested in purchasing a policy, most private home insurance companies offer coverage via NFIP and can give you details about policy prices, what flood insurance covers, and whether Congress has reinstated the program to enable purchases.

Unexpected Insurance Coverage

Posted in Home Insurance , Home Insurance Claims

May 7th, 2010
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Not all surprises are pleasant, especially when it comes to what your homeowners insurance may or may not cover. The fact is that we live in an extremely complicated and unpredictable world, where curious situations occur. The good news is that when the inconceivable happens, you may actually be in for some good fortune thanks to your homeowners insurance.

Most homeowner’s policy is based on “open-perils” terms (policies that cover anything but listed exclusions). Unless your contracted insurance policy states otherwise, you may get the perk of financial assistance for some of the most unusual insurance coverage including:

Bizarre Water Damage

Chances are that if a pipe bursts or heavy rains flood your home, you will be at the mercy of the National Flood Insurance program or from any additional flood insurance coverage you may have purchased.

However, if you are “lucky” enough to have water damage due to an aquarium breaking or from a leaky water-bed, you may actually stand a chance of getting a settlement for your losses.

Eyjafjallajökull Effect

The most recent example of damage caused by ash and lava came courtesy of the active volcano in Iceland. If a bluff blows it’s top in your own backyard, your standard homeowner’s policy may actually help you out at no additional charge. The exception is in Hawaii as there is a state volcano insurance plan that homeowners need to buy.

Jumanji Stampede

Fans of the 1995 fantasy film may recall that various animal stampedes that were part of the Jumanji board game. Chances are, no such magic will happen in your home, however if there is a wild animal stampede caused by critters that you do not personally own or keep, you may get a financial break from your insurance provider.

Zathura

The follow up to Jumanji was the space adventure, Zathura. Meteors, comets and space debris all came hurling down from the sky. If this wacky act of God scenario should happen to you, your insurance coverage may help.

Pepe le Pew

Unfortunately, skunks are not as suave and debonair as the famous Warner Brothers character. In reality, the critters discharge a foul scent as a defense mechanism.

If this happens in your home, check with your insurance provider, as they may have to pay to help you out.

Murder, She Wrote

Thousands of people are murdered each year, and generally the crime scenes are messes. If this unfortunate event happens in your home and there is huge damage caused by both the struggle and from bodily fluids, financial relief may be looming around the corner.

Typically home insurance will protect both your dwelling and property from loss that occurs from fire or theft. Only your insurance issuer will know the full range of unusual insurance coverage your standard policy may offer. Luckily, the odds of any of the noteworthy disasters occurring are very slim.

Do you have a tale of your insurer paying out for an unusual claim? If so, please don’t keep it to yourself. Feel free to share your story with the GoInsuranceRates.com community, as we would love to hear from you!

Home Inspection: Why You Need One After Bad Weather

Posted in Home Insurance , Home Insurance Claims

March 18th, 2010
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The prospect of getting a home inspection is never a fun one. Everyone knows they come at a cost, and even more costs could quickly incur if theres actually something wrong with the house. But as we all know, home inspections are important in ensuring a familys safety, which is why theyre always recommended before purchasing a home.

However, some experts have now started suggestion that homeowners get inspections after a bad storm to ensure that serious weather, including winter damage, hasnt resulted in something much worse. If youve recently suffered a bad storm, its good to consider a home inspection in the near future. This way, if there was damage, you can make the most of any home insurance claims you must file.

What are the Benefits of Home Inspections?

If youve been wondering whether there are true benefits to home inspections, lets take a look at what you can gain from having a professional look over your home:

• Some damage may be hiding in the open: While you may look over your home and think you see everything that may need to be worked on, its often hard to tell without having an expert explore the same areas. By bring in an expert eye, you may learn that more is going on with your home than you thought.
• You dont want problems down the line: You may see a small crack that you think is no big deal; however, an expert might know that the location of the crack could spell tons of trouble later. By having an inspector look at your home, he may be able to give you tips to help you avoid problems later.

Of course, no one is excited about the idea of having their home inspected. But its important to do before buying a home, and in many cases, after a big storm.

Why Inspections Can Help after Bad Weather

As mentioned in the previous section, some bad weather like blizzards, ice storms, tornadoes or hurricanes can literally rock your home off of its foundation. However, it could look like not much damage occurred at all, which is not a good thing for you or your family.

Of course, your first mind is to make an insurance claim after storm damage. This is a great idea because it will make sure that any damage you had will be quickly covered by your insurance company. However, if you take the extra step to get your home inspected after documenting the damage and contacting your company, you have a professional in your corner to back your claim.

Think about it. The last thing that an insurance company wants to do is pay out a lot of money to a homeowner. Theyre in the business of making money, not spending it. So unless you have the backing up a professional, you may receive home insurance quotes for your claim that are much less than what you deserve.

Since an inspector costs money, its good to check around first before committing to one. But whatever you do, dont ignore how seriously damaged your home could be after bad weather. You may not think its the best idea for you, but always remember its very possible that you do need a home inspection under this circumstance.

Don’t Let Your Home Insurance Go to the Dogs

Posted in Home Insurance , Home Insurance Claims

December 10th, 2009
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Dogs are playful, affectionate, loyal, protective – and sometimes a major problem for home insurance providers. While home insurance generally covers dog-related incidents, such as bites and attacks, insurers have gotten savvy about various “problem” breeds and have responded by either restricting home insurance coverage or denying it altogether. Policies vary from company to company and state to state, making for a complicated situation that demands the attention of every dog-loving homeowner.

The Problem with Dogs

According to the American Humane Society, approximately 39% of American households have one or more dogs. While most are friendly to strangers, unpredictable stimulus can agitate them and cause them to bite. Dog bites account for a shocking third of all home insurance claims. Per the Insurance Information Institute, home insurance providers paid out almost $400 million dollars in dog-related claims expenses in 2008.

Home Insurance Coverage

Under normal circumstances, most home insurance policies cover incidents that involve a policy holder’s dog. Before a policy is sold, however, most if not all home insurance providers will want to know as much as possible about the family dog, and whether it has a history of aggressive behavior. If there are biting incidents in your dog’s past, you may have to sign a waiver releasing the home insurance provider from responsibility for expenses related to bites. You may be able to get dog insurance or comprehensive pet insurance to cover yourself, whether in the form of a specific dog insurance or pet insurance policy or a supplemental rider.

Its also important to remember that laws concerning pet-owner liability vary from state to state. If state law places sole responsibility on the dog owner then home insurance providers may stipulate that their policy won’t cover any expenses related to a dog bite.

Targeted Dog Breeds

Owners of certain dog breeds need to be especially attentive to their dog and its impact on their home insurance policy. Many insurance providers have identified the following breeds as being statistically more aggressive and problematic than others:

• Akitas
• Boxers
• Wolves and wolf-hybrids
• Chow-Chows
• Pit Bulls
• Rottweilers
• Malamutes
• Dobermans
• German Shepherds
• Presa Canario
• Siberian Husky

While getting a dog is a wonderful experience for millions of Americans, it does not come without risks and responsibilities that need to be thought through beforehand. In most cases, proper training and preventative steps, such as fencing in the yard, will go a long way to keeping the peace.

Do you think it’s fair to discriminate against certain dog breeds?

How to Spend Your Home Insurance Claims Check

Posted in Home Insurance , Home Insurance Claims

November 4th, 2009
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Much has been written about the fact that the Chinese symbol for crisis is also the symbol for opportunity. If you’re a homeowner who’s recently suffered damage to your home, all the shock and chaos may make you forget that a big check from your home insurance provider is on the way – and you can spend it as you see fit. Whether you get a lump-sum payout, an advance payment, or a partial payment contingent on different conditions, the bottom line is that you’re getting money and a blank slate. When those two things come together it can be a very exciting time indeed.

The Claims Adjuster

The first thing you’re going to do is call your claims adjuster. They will inspect the damage and help you fill out all relevant claims forms. It may be tedious, but it’s the first step on the road to getting reimbursed. Additionally, take lots of pictures and make sure to save all estimates and assessments.

The Attitude Adjuster

When your home insurance provider helps you it means they’re going to give you money. In your situation, now is the time to start forgetting your misfortune and remembering your opportunities. Sure your living room is gone, but you’ve also got the chance to turn what was once a den of dullness into a showcase for your excellent taste. You can put in a bay window with a reading nook. You can put in hardwood floors, or floor-to-ceiling windows, or a new fireplace. Was your old carpet looking more and more like an old, miserable sponge? Rip it out and put down hardwood. Or maybe you want tile, but you can’t decide between rich, red Mexican terra cotta or grey slate.

Taking Savings to the Next Level

If you’re smart, you can also save on clean-up and repair costs – which the insurance company has covered – by doing it yourself. With that extra money you can either apply it to further home improvements that improve the resale quality of your home or save for a rainy day. Cedar closets or new kitchen appliances, the choice is yours. Of course, spending your home insurance reimbursement check in a frugal way is also a smart choice: by keeping costs low and coming in under budget, you can pocket the difference. At the end of the day, that money could provide you with all sorts of new opportunities.

If you’re a homeowner you must have home insurance, period. Your investment is too large to go unprotected. Once you’re insured, make sure you understand what is or is not covered. If you’re unclear about any aspect of the policy, don’t be afraid to ask.