Looks like the insurance company response to hurricanes nowadays is to include a windstorm deductible in your policy, which is a far better response than pulling all insurance business out of dangerous states. See, in the past there has always been a flooding deductible and so the big game, when it came to a hurricane related claim; was determining (proving really) whether water damage was considered flooding or windstorm damage.
Let’s say you have water damage in your room. If the room is on the second floor and the flooding never reached that high, you have yourself a slam dunk case. If the room is on the first floor and the water did reach that high, you have to see if you have any broken windows. If you have a broken window, then you can make the case that the water was the result of rain that came in through the broken window.
Now the game has changed with the addition of a windstorm deductible because now, presumably, all the smaller claims will be tossed out (or absorbed) with the deductible; thus saving everyone some money (though mostly insurance companies). It’s only a matter of time before our insurances are basically riders like this windstorm one.
Source: New York Times
So you have a safe that’s fireproof, is it waterproof too? The reason I ask is because where there’s fire, they’re often going to be a lot of water as well because when the firefighters arrive they will be spraying water everywhere. Not only that but they’ll be spraying a lot of water everywhere because most people, myself included, would rather have their possessions dripping wet than turned to ash.
So, you have a safe that’s fireproof but not not waterproof? One easy way to protect your possessions is by putting them in ziplock bags. One word of advice though, you do run the risk of melting the plastic onto the paper if the response team isn’t fast enough. So, an even better piece of advice is to put the papers inside a folder or other protective layer and then put it in a ziplock bag. That way, if it melts, it melts onto the folder and you can still extract your papers with a little more work.
If you’re having problems dealing with your homeowners or renter’s insurance and want to bring in the big guns, check out the Patient Advocate Foundation’s list of Insurance Commissioners. While the Patient Advocate Foundation focuses more on health care, the insurance commissioners in your state are responsible for enforcing all insurance laws, health and otherwise, so you should be chirping in their ears as well. If you think your homeowner’s insurance is cheating you and breaking the law, let the commissioner know because they are responsible for investigating it.
Even if the issue appears minor, they will know more about it and can identify trends (is one company denying small claims that result out of similar events?), it’s your civil responsibility to report breaches! Don’t let them cheat you.
Thanks Consumerist!
A word of warning to you all, if you host a party at your house and one of your guests get drunk, drives home, and is involved in an accident - you could be liable for damages because you served the alcohol. While the state laws, local court cases, and other regional laws may apply, you may be found liable simply because you were serving (the driver would get sued too).
Sometimes, check with your policy, this may be covered by the liability portion of your homeowners insurance but that likely has a cap on it in the neighborhood of a few hundred thousand dollars. This underscores the importance of getting supplemental umbrella insurance to cover those above and beyond situations.
Have you recently purchase your house? Have you made a recent home improvement? There are plenty of reasons why you would need to re-evaluate the replacement value of home for the purposes of insurance. A recent purchase and an improvement are merely two of them. So, what’s the easiest way to recalculate that all important number? Apparently it’s Accucoverage.com.
For $7.95, Accucoverage.com will help you figure out the replacement value of your home using the exact same databases that insurance companies use. It’s far cheaper than hiring a home appraiser (though if you recently bought your house, an appraisal was done) and far easier for you.
In addition to theft of possessions, fire is another huge concern for insurance companies when it comes to college students and something you should talk to your student child. In general, fires are caused by two things: cooking and candles. That’s why, if you review your child’s dorm rules you’ll likely see that both cooking with hot plates and burners is generally prohibited and candles are also contraband in the dorm room. The reason for this is because there are a lot of distractions in college, and in life, and so an unattended pot or candle could lead to a fire disaster. So, warn your children about the dangers of fire and don’t send them off with a hot plate or the latest scent sensation from Bath and Body Works.
If you operate a business out of your home, you should be warned that typical homeowner’s insurance will not cover you in the event of a loss. This is particularly poignant for those businesses that carry inventory or operate expensive equipment because a flood, fire, or burglary could result in potentially high losses that you normally would turn to insurance for. Also, if you meet with customers, suppliers, or other clients, injuries they may suffer while on site may also not be covered by your basic homeowners policy.
To be sure, check your policy to see what the limits on liability are from your insurance provider and the keywords you should be on the lookout for are limits to coverage of business equipment and business liability insurance or coverage. For example, your coverage may say that they cover up to $2500 of business equipment and offer no business liability insurance. If that makes sense for your type of business then you should be fine, but if your business meets with clients very often or you have expensive equipment or inventory, you’ll want more.
As recently as ten years ago, the most expensive item your child would’ve brought to college was probably a desktop computer. At a few thousand dollars a piece, the item was difficult to steal because of its size and so the thought of insurance was probably not at the forefront of your mind. Nowadays, with the rise of laptops, MP3 players, cell phones, and other smaller and expensive electronic devices, insurance has to be one of the first things on your mind before you send your child off to college. When an iPod MP3 player can cost hundreds of dollars and easily be swiped from a dorm room desk in the blink of an eye, if you don’t have insurance then you are setting yourself up for a very expensive disaster. In fact, according to the U.S. Department of Education, there were more than 40,000 thefts in 2006.
So, how much does your homeowners insurance cover your child’s possessions? In general, the insurance policy coverage will extend to your children if they live in the dorms but there may be separate limits on that coverage. If they don’t and instead have off-campus housing, they may want to consider renter’s insurance (which is generally very cheap). You will have to review your policy to be certain but in general the insurer will limit it to a percentage, such as 10% or 15% of the total coverage. If you have $100,000 of coverage, then under the 15% rule, $15,000 of that coverage extends to your son or daughter in college.
Dealing with insurance companies can be extremely taxing, especially after a significant life-altering incident such as a fire or a flood, so sometimes it makes sense for you to hire a public claims adjuster to help you deal with the insurance companies. These are the big boys, helping people find alternative living arrangements, taking a survey of the damage, and handling the filing of claims and you generally won’t need them for minor incidents. If the incident significantly impacts your life and you think you need serious help, a public claims adjuster is who you should turn too.
The advantage of using a public claims adjuster is that the adjuster knows the claims process for your state inside and out. They can get you a quick response because they know exactly what they need to provide and how much they can get from the insurance companies. The disadvantage is obviously - they need to get paid. Sometimes this can be anywhere from 5% to 50% of the claim depending on the size and depends on how much work is involved. You can shop around for an adjuster as competition will lower their rate, you can always cancel the contract with 72 hours of signing it.
Before you hire an adjuster, make sure you really want the help. Then, after you’ve shopped around, check into the background of the one you’re thinking about signing with. You can check with the National Association of Public Insurance Adjusters for information about your adjuster and see how he or she has been doing.
While the end result is the same, you need to find another insurer for homeowner’s insurance; the rules for insurance cancellation and insurance non-renewal are different. With a cancellation, your policy is terminated immediately. With a nonrenewal, your policy is effective until it expires.
A company cannot cancel an insurance policy unless you fail to pay the premium or you committed fraud or made serious misrepresentations on the application as long as the insurance policy has been in effect for 60 days.
Nonrenewal is totally different and there really isn’t much you can do about it. In some states, the insurance company has to notify you within a certain number of days and give you a reason. Sometimes the reason is not something you can do about, such as ending a certain type of insurance, but if you think the reason is unfair, contact the insurance company’s consumer affairs division.