Archive for the ‘homeowners insurance’ Category

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Lead-based Paint Manufacturers in Rhode Island Sue to Recover Costs

July 21st, 2010 by Iris | Comments Off | Filed in homeowners insurance, insurance news

After Rhode Island Superior Court Judge Michael Silverstein ruled, last May, that the state was not required to repay them, companies that sold lead-based paint have appealed the decision.

The paint manufacturers argued that they were due reimbursement because in 2008 the state Supreme Court had ruled in their favor, reversing a landmark verdict that may have cost them billions of dollars.

On Friday, a notice of appeal by the three companies that had won the original case, Millennium Holdings LLC, NL Industries Inc., and Sherwin-Williams Co. Three other companies that had been sued for the same infraction – selling lead based paint – but never went to trial, joined in the appeal.

Charles Moellenberg, the lawyer for Sherwin-Williams, said that Rhode Island rules allow winning sides of a lawsuit to recover costs, and that there should be no difference with this case.

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Home Burglaries Up 9% in Texas, Allstate Says

July 15th, 2010 by Iris | Comments Off | Filed in homeowners insurance, insurance news

Homeowners in Texas may want to consider boosting their homeowners insurance polices, and re-evaluating their inventory lists after reading this:

Allstate Insurance has shared that burglary claims for their customers in Texas increased 9 percent last year. The insurer is advising people to keep their homes locked, their alarms engaged, and their vacation plans secret, if they go away this summer.

What are the most common stolen items? Allstate surveyed police departments across the Lone Star state, and found that the number one target in home burglaries are flat-screen televisions, which are followed by laptop computers, jewelry, and cash. In some cities, the survey found, an increasing number of home burglaries are being tied to organized groups, like street gangs, which, police say, have “shopping lists” of things to steal, and will actually back into their target’s driveway, knock on the door, and kick it in if no one answers. They then take valuable, portable items and leave within a few minutes. Afterward, most of the stolen goods end up being filtered to other cities and states, or even across the border into Mexico, by an organized fencing operation.

David Christopher, an Allstate agent in the Dallas/Fort Worth area explained, “”Not only do these home burglaries disrupt homeowners’ lives because their valuables are stolen, but they create a potentially dangerous situation if the theft is interrupted. That’s why it’s so important for homeowners to take precautions because these thefts can happen anywhere.”

Source: Insurance Journal

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LA Governor Signs Chinese Drywall Bill

July 12th, 2010 by Iris | Comments Off | Filed in homeowners insurance

Earlier today, Louisiana Governor Bobby Jindal signed into law the bill which will prevent insurance companies from dropping coverage of homeowners who have found corrosive Chinese drywall in their homes.

The new law, which was sponsored (as a bill) by Senator Julie Quinn of Metairie, will prohibit insurers from canceling or refusing renewals on policies for homes because of Chinese-made drywall which has been blamed for health concerns and corrosion, though insurers will NOT be prevented from raising relevant deductibles or premiums.

This new law only applies to drywall that was imported from or manufactured in China before Dec. 31, 2009. Insurers found to be in violation will face a penalty of up to $15,000.

The law remains in effect until July 1, 2013.

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Oklahoma Spring Storms Lead to Insurance Headaches

June 21st, 2010 by Iris | 1 Comment | Filed in flood insurance, homeowners insurance

Property owners and insurers in Oklahoma are all suffering the effects of recent severe flooding and extensive damage from last month’s wind storms, the Insurance Journal reports. The heavy rains earlier this month caused additional damage to the homes of some residents who had yet to make repairs made necessary by violent storms in May.

Most mainline commercial insurance companies don’t offer flood insurance, which must be purchased through the National Flood Insurance Program, a division of FEMA, but those people who don’t have mortgages which require flood coverage may not be aware they need it.

Jerry Johns, president of Southwestern Insurance Information Service told reporters, “What’s sad is to see someone who thinks their homeowners’ insurance covers flooding – and a lot of people do – to realize that everything has been destroyed and they have to pay to replace it.” However, he explained, the average auto insurance policy that includes comprehensive coverage will pay for flood damage to vehicles, so motorists with flood-damaged cars would be well advised to file claims sooner rather than later.

Kim Holland, Oklahoma’s Insurance Commissioner, declared an emergency in May, after two different storm systems caused damaging wind, hail, and tornadoes. The move was designed to make it easier for out-of-state insurance adjusters to obtain licenses. The Insurance Department issued roughly 2,000 such licenses last month, including 500 that were temporary, expiring in 90 days, said spokesperson Jennie Kleese.

Holland estimated that the May storms caused about $1 billion in insured damage.

Johns, who is based in Houston, TX , said that Oklahoma has certainly had its share of catastrophes this spring. He said, “The only thing you don’t have are hurricanes but don’t rule that out.”

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Wet Winter Plus Dry Spring Means More Wildfires Likely

June 10th, 2010 by Iris | Comments Off | Filed in fire insurance, homeowners insurance

If you live in the Southwest, it’s time to make sure you have adequate homeowners (hazard) insurance. Why? because AccuWeather is reporting that this season, and especially the next few days, could lead to a “particularly troubling” fire season. The company explained that the heavy moisture caused by intense winter storms spurred greater than usual growth of brush and foliage this spring. Now that summery temperatures and bright sunshine are causing things to dry out, such growth is more likely to become fuel for wildfires caused by lightning.

AccuWeather stresses that not every summer day holds the same risk of fire danger. Days with low humidity are fairly common, for example, but days with low humidity and gusty breezes – the necessary combination to exacerbate fire danger – are comparatively rare.

Explained a representative of the company, “While a cooldown is in store for the Southwest beginning Friday and lasting through the weekend, gusty winds and low humidity levels will raise the fire danger the next few days. Any fire that gets going could spread rapidly.”

Despite the fact that this year has seen fewer wildfires (so far) than the average, the potential always exists for that to change, especially with building drought conditions in the Southwest, which had its wettest early and middle winter in years. According to the National Interagency Fire Center, this year through June 10, there have been about 970,000 wildfires nationally. During 2009 through June 10, due to very dry conditions throughout the winter and spring, there were nearly 1.6 million wildfires across the nation.

So far, however, prevailing wet conditions in much of the Northwest, Northeast and Southeast have resulted in fewer than average wildfires. However, an abrupt and early end to spring rains mean that foliage and brush may reach their driest conditions sooner rather than later.

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Got Sewage? Get Coverage

May 12th, 2010 by Iris | Comments Off | Filed in flood insurance, homeowners insurance

According to the Insurance Information Institute, most sewer backups are not covered by a standard homeowners insurance policies, and if your sump pump can’t handle the runoff after a major rainstorm, that isn’t usually covered, either. If you don’t have a home warranty, or didn’t purchase extra coverage just for your sewer system, that flood in your basement may just wash all your money down the drain.

Even though they’re not generally covered by insurance, sewer backups are a fairly common occurrence, and they can be caused by many things, including aging sewer systems and combined pipelines (those which handle storm runoff and sewage in the same system). Blockage of sanitary drains and water seeping into basements are also common, and not covered under standard policies.

What can you do? First look into either special sewage system coverage, or consider a home warranty, which will cover all of the internal systems in your home – including plumbing – that standard insurance doesn’t, then, take a look at these tips to reduce system failure.

  • Problems with tree roots in the lines? Replace your old pipe with new plastic. It’s more durable, and cheaper to repair.
  • Consult a plumber to fix any illegal plumbing connections that could cause problems down the line.
  • Install a backwater protection valve, to make sure that sewage flows out of your home, but can’t flow back in. have a qualified plumber do this.
  • Dispose of grease, paper products and other such household trash in the proper way. Grease should never be poured down the drain, and the only paper product that should ever be flushed, is toilet paper.

Remember that insurance companies may not tell you what is or is not covered; it’s up to you to read your policy very carefully, and ask questions about anything you don’t understand in your homeowners policy.

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Wyoming May Be At Greater Risk of Wildfires This Year

May 7th, 2010 by Iris | Comments Off | Filed in fire insurance, homeowners insurance, insurance news

Wyoming residents may want to look carefully at their homeowners insurance policies this month, especially where fire insurance coverage is concerned.

Why? Because according to national fire officials, a season of light snowfall is likely to mean greater risk of wildfires in the northwest part of the state this summer.

Officials of the National Interagency Fire Center explained that a light winter in the region means that the environment – especially fire fueling elements – are drier going into summer, which could increase the potential for wildfires. Last year, heavier-than-average moisture helped to minimize similar threats throughout the region.

Mack McFarland, a Teton Interagency Fire Fuels specialist, said that conditions can still change between now and the beginning of fire season. While fire prediction is useful, he said, there’s no such thing as a “crystal ball” for the wildfire season.

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Florida Insurance Reform Bill Passes Senate

April 26th, 2010 by Iris | 1 Comment | Filed in homeowners insurance, insurance news

It’s the final week of Florida’s legislative season, and it looks like the state Senate has it’s property insurance,/a> reform bill back on track.

According to The Insurance Journal, after the bill he sponsored (SB 2044) got hung up in debate last Thursday, Senator Garrett Richter ironed out some confusion regarding the timeline in which homeowners would be paid for losses, and also agreed to a sinkhole provision. On Friday, the bill passed the Senate in a 32-4 vote.

The Richter measure addresses insurers’ concerns regarding claims payments, but does not give them complete freedom to raise prices, although it does allow them to increase rates by up to 10 percent per year in order to pass through their reinsurance costs. In addition, the bill allows insurers to to drop some policies if keeping them would threaten their solvency. Finally, it gives regulators access to specific financial information on the companies affiliated with insurers which claim to be losing money.

The bill must now pass the Florida House, which has been working on its own, similar measure (HB 447), and then avoid a veto by Governor Charlie Crist, who had previously stated that a measure to deregulate rates – since taken off the table – would be vetoed.

Richter (R-Naples) believes his bill strikes a balance between regulators, insurers and consumers, but progress on the bill only came after its withdrew the afore-mentioned deregulation proposal. The two-year sponsor of that bill, Mike Bennett (R -Bradenton) decided that pushing the measure (SB 876) was unwise at this time, since the governor had already warned any such bill would be vetoed.

J.D. Alexander (R- Lake Wales), the Senate’s budget chief, said that Governor Crist has the “bully pulpit” as governor, and that no one wants to hand him anything he can use for political leverage.

The legislative season ends this week.

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El Nino Dissipating, but Effects Not Gone

March 4th, 2010 by admin | Comments Off | Filed in flood insurance, homeowners insurance

Reuters is reporting today that the currently active El Nino weather anomaly, which causes abnormal warming of the water in the equatorial parts of the Pacific Ocean, is dissipating, and – in the Northern Hemisphere – it should be gone by early summer, though there is a chance it may merely weaken substantially, and linger throughout 2010.

Reuter’s information comes directly from the CPC – the federal government’s Climate Prediction Center – which is part of the United States National Oceanic Atmospheric Administration (NOAA). Their recent monthly update reported that the hallmark warm Pacific waters are slowly cooling, and that such an easing will result in “…neutral conditions” in June or July. However, the CPC also said that there are, “…everal models (which) suggest the potential of continued weak El Nino conditions through 2010, while others predict the development of La Nina conditions later in the year.”

Typically, El Nino results in chaotic global weather patterns, most notably in the Asia-Pacific region. It was first noticed by Latin American anchovy fisherman in the 19th century, who nicknamed it “Little Boy,” a reference to the Christ child, because it traditionally arrives around Christmas time. The opposite anomaly, La Nina, leads to cooler waters in the Pacific Ocean, and is often said to spark storm formation during the annual Atlantic hurricane season.

The 2009-2010 El Nino has been moderate to strong, says the CPC, with sea surface temperatures remaining warm through February, but is is also linked to the severe winter storms which have hammered the eastern United States. It was also blamed for a weak monsoon which caused severe damage to the Indian cane crop, forcing the price of sugar to a 29-year high. In addition, El Nino is believed to be connected to a severe dry spell which has hit the countries of Indonesia and the Philippines, forcing the later to increase their rice imports. The Philippines is already the world’s largest importer of the grain.

As the year progresses, the United States should expect above-average rainfall in the southwestern and south-central states, and Florida, and below-average precipitation in the Great Lakes and Pacific Northwest regions.

The “good” news – at least for residents of the Atlantic seaboard, is that if El Nino continues into June, it may hinder the formation of Atlantic hurricanes this year.

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State Farm Excels at Consumer Satisfaction

February 27th, 2010 by admin | Comments Off | Filed in auto insurance, homeowners insurance, insurance news

It should be no surprise that our current unstable economy has affected everything from the amount of merchandise on store shelves to the number of people taking vacations, but what may be surprising is that the adverse effects are extended to the quality of service we receive from providers in many different industries. Such quality decreases are generally connected to job layoffs and spending cutbacks, as well as the low morale both of those things tend to instill. The end result: a vicious cycle in which consumers move their business elsewhere, or stop purchasing given services entirely.

One industry where the economy is having such an effect is property and casualty (P&C) insurance. The good news is that there are some companies still treating their customers well. According to a recent report from The American Customer Satisfaction Index, or ACSI, the customer service quality leader in this industry is State Farm.

The ACSI was developed by the University of Michigan, and uses a 100-point rating scale. In the most recent rating of finance and insurance companies, State Farm earned a customer satisfaction score of 82, with GEICO and Progressive following closely at 81 and 80 points, respectively. Notes in the latest index release state that larger property and casualty insurance companies have scored better than smaller ones with regard to consumer perception.

Overall, the finance and insurance sector showed slight improvement in customer satisfaction from the third to fourth quarter of 2009, with the property and casualty insurance sector averaging a customer satisfaction score of 80 in comparison to the average 77.1 in the finance sector as a whole.

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