Archive for January, 2011

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Georgia Insurers to Exercise Leniency

January 20th, 2011 by Iris | Comments Off | Filed in auto insurance, homeowners insurance, insurance news

Ralph Hudgens, Insurance Commissioner for the state of Georgia, has issued an order directing insurance companies in his state to “exercise lenience” in dealing with individuals and businesses who may be struggling with their premiums due to the heavy winter storms that blanketed the state earlier this month.

Between the dates of January 9th and 11th of this year, Georgia experienced the worst winter storm seen in the state in decades, as much of it was covered by as many as five inches of snow, including three inches in the Atlanta metropolitan area. The result of this weather was that several of the state’s main highways were closed to traffic, and hundreds of flights out of the Atlanta-Hartsfield airport were canceled. In addition, many schools were closed, as were state and federal offices.

On his last day in office, out-going governor Sonny Perdue called for a state of emergency, and directed the Georgia Department of Transportation and Public Safety to take steps to restore power and clear the roads.

Hudgens’ directive calls for insurance companies to exercise leniency when non-renewal or cancellation notices are delivered to policy holders whose premium payments arrive late due to disruptions in mail delivery.

He told the press, “I expect insurance companies to be understanding when so many of their policyholders’ lives have been severely disrupted. This would include premium payments and non-renewal notifications.”

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Gen Y Consumers, Love Entrepreneurship, Prefer Tech Savviness

January 19th, 2011 by Iris | Comments Off | Filed in insurance facts, insurance news

It’s no big surprise that more and more people are turning to the ‘net to shop for and purchase their insurance coverage, but the latest Employers Small Business Opinion Poll shows confirms that members of Generations X and Y are adamant about wanting their insurers to interact online.

The survey showed that almost half (46%) of those polled who fell into Generation Y say they plan to start their own businesses in the next five years. Even in the middle of uncertain economic times these results show that the 18-25 year old Gen Y segment represents a greater than average entrepreneurial spirit. In fact, 8 percent have already started a business.

Similarly Gen X (ages 26-45) respondents shared the desire to create new businesses in the same time frame, to the tune of 35%, though the inclination to start a business in the next five years is markedly lower among Baby Boomers (ages 46-65) at 21% and nearly non-existent among members of the Silent Generation (those over 66 years old).

Following this trend, the Gen Y and most of the Gen X survey respondents also said they feel that being tech savvy is an important feature of an insurance company. In fact, 70% of Gen Y-ers (oh whom 67% are active users of social media sites) felt that way, and 86% of them want online insurance quotes, while 83% want online customer service, 81 percent believe online policy management is a must, and 79% are feel that online payment options are essential.

According to the Insurance Journal, “The Small Business Opinion Poll commissioned by Reno, Nev.-based Employers sampled 1,258 consumers. Data was collected through telephone interviews from June 24 to June 27, 2010 at the 95 percent confidence level. The survey was conducted by Infogroup | ORC.”

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New Insurance Options for Coastal Alabama & Mississippi

January 18th, 2011 by Iris | Comments Off | Filed in hurricane insurance, wind insurance

Just a week after USAA dropped wind coverage from 1,550 insurance policies on homes in the three southernmost counties of Mississippi, a handful of new insurers have entered the coastal markets in that state and in Alabama.

American Strategic, Coastal American, PURE, Republic, Southern Fidelity, and Wilshire are now offering coverage in both states, and while their addition to the market may not provide enough competition to make insurance rates go down, but at least several thousand homeowners will have more options to choose from at a time when options for wind coverage have been dwindling.

In Alabama, more than 50,000 home- and business owners along the coast will be losing – or have lost – their wind insurance coverage since 2004′s Hurricane Ivan. Alfa Mutual Group, Allstate Corp., and Farmers Insurance Group are among those making significant cuts in their exposure in the Gulf Coast region.

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Lawsuit May Halt Work on Louisiana Levees

January 17th, 2011 by Iris | Comments Off | Filed in homeowners insurance, hurricane insurance, insurance facts

The Insurance Journal reported late last week that there is a lawsuit in process which may halt work to reinforce one of the New Orleans canals that broke during Hurricane Katrina in 2005.

On January 5th, homeowners with backyards along the 17th Street Canal filed a civil suit in state court requesting that work be halted because they claim they have not been compensated for the land where the work will take place – land, they claim, which they own.

The Army Corps of Engineers has plans to being work soon to strengthen the floodwall and levee along the 17th Street Canal, which contributed to the massive flooding of New Orleans on August 29, 2005.

In the suit, seven families are claiming that work crews would be trespassing. Their suit is based on a dispute about whether or not the backyards along the canal are private land, or part of the state’s right-of-way. The suit was filed against the Southeaster Louisiana Flood Protection Authority-East, and the Orleans Levee District.

The precedent here is unclear. In 2008 homeowners sued for the loss of trees, fences and outbuildings close to the canal levee that were removed to make the floodwalls and levee safer, and a state district judge ruled in their favor, but in 2009, the state 4th Circuit Court of Appeal overturned their compensation claims. The new suit brings up similar issues, but seeks to stop work until they are resolved.

The corps plans to improve the canal’s strength by pouring cement deep into the ground to build a subsurfance wall, and to build a new embankment wall along the canal.

Randy Smith, a lawyer for the homeowners explains, “One of our founding principles is no taking of private property without just compensation. No one is against hurricane protection. Our point is, you can take land, but the way you take land is you pay for it.”

Meanwhile, Thomas Anzelmo, Sr., who represents the levee agencies, said that the appellate court was “pretty clear” when it ruled that the state has a right of way along waterways like the 17th street canal. He said the state was merely granting a “right of entry” to the Army Corps, which would be doing the actual work.

Nancy Allen, a spokesperson for the corps said that the new lawsuit is not expected to delay work along the canal. She said that the work is scheduled to be completed by the June deadline set for upgrading New Orleans’ levees. June 1 marks the beginning of hurricane season.

A hearing before Civil District Judge Kern Reese has been set for Jan. 14.

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Friday Filmstrips: Condo Insurance

January 14th, 2011 by Iris | Comments Off | Filed in condo insurance, friday filmstrips, homeowners insurance

We all know that owning a condo isn’t quite like owning a detached home, but it’s not really renting, either, so is it any wonder that condo insurance is somewhere between homeowners insurance and renters insurance. After all, some things are your responsibility, while others are the responsibility of your Homeowners Association. In this week’s video, condo insurance is the focus. Enjoy.

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Do You Have an Emergency Fund?

January 13th, 2011 by Iris | Comments Off | Filed in advice and how-tos, insurance specialists

No matter where you live or what you do, having an emergency fund is a smart idea. This way, if some sort of catastrophe hits your area, or there’s a family emergency that requires you to spend an extended period away from work, you won’t be forced to dip into your retirement fund or go into debt to rebuild your life, or fund your time off the job.

Most experts recommend that your emergency fund be equal to six months of your salary, so if you typically take home $2500/month, work toward an emergency fund of $15,000, even if you have to do it $25 or $50 at a time.

You should also keep your emergency fund in a lower-risk account, something that’s really stable and allows you easily access your money without penalties. A regular savings account held in an FDIC-insured bank is an excellent first step, and once it grows large enough, you can move part of it into a money market account or a certificate of deposit (CD) to earn better interest.

Since building an emergency fund takes time and patience, realistic goals are the key. Nationwide Insurance offers some fantastic tips for getting you started:

* Decide on an amount you can live with, perhaps 5% of your paycheck
* Save through automatic payroll deduction, so you won’t have a chance to spend the money
* Think of it as you think of a bill − something you have to pay
* Skip one big expense this year and use that money to launch your emergency fund
* Put your tax refund or company bonus into the emergency fund

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Life Insurance Helps Benefit Charities

January 12th, 2011 by Iris | Comments Off | Filed in life insurance

If there are charities you’ve supported during your life, its absolutely appropriate to want to support them after you’re gone, with a final bequest. One way to do this is to use your life insurance policy.

By leaving your life insurance death benefit to the charitable organization of your choice, you’ll be able to make a larger gift than you likely would have been able to do during your lifetime. The cost to you is merely the total of your payments into the policy, but your actual death benefit is likely to far exceed that number.

You may even be able to make your life insurance premium payments tax deductible by designating a charity as your beneficiary, though you should always seek the expertise of your financial planner or tax advisor before doing such a thing, so that you’re certain everything is structured correctly. (We don’t give legal or tax advice.)

To help ensure that the charity you wish to support received your death benefit, you may want to consider whole life insurance or universal life insurance, rather than term life. Talk to your financial planner about which policy is the best choice for you.

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