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Protecting your house from mold

noreply@blogger.com (PungPond) — Tue, 04 Mar 2008 09:56:00 +0000

When it comes to keeping your home mold-free, a strong offense is definitely your best defense. To prevent mold, eliminate moisture from your home and be on the lookout for signs of possible growth, such as musty smells or watermarks on walls and ceilings.

Caught early, mold can usually be removed by a thorough cleaning with bleach and water. To prevent mold from re-growing, however, it is essential that the source of the moisture be eliminated and the affected area properly dried, cleaned, and if necessary, replaced. Also, remember to bag and dispose of any material with moldy residue such as rags, paper or debris.

Mold, like rot and insect infestation, is generally not covered by a homeowners insurance policy. Standard homeowners policies provide coverage for disasters that are sudden and accidental. They are not designed to cover the cost of cleaning and maintaining a home. If, however, mold is the direct result of a covered peril such as a burst pipe, there could be coverage for the cost of eliminating the mold.

According to the Centers for Disease Control and Prevention (CDC), mold is everywhere. It grows year-round and can be found both indoors and outdoors. Outdoors, mold is commonly found in shady, damp areas and in soil. Indoors, it can be found where humidity and moisture levels are high, such as in basements, kitchens, bathrooms and on ceilings and wall interiors where water from leaky pipes, roofs or windows can accumulate. While most molds pose no threat to humans, the CDC warns that certain molds can produce hay fever-like allergic symptoms. If you or your children have symptoms associated with mold, see a physician. Keep in mind, that many symptoms associated with mold exposure are common to other illnesses.

To help prevent the growth of mold in your home, the I.I.I. suggests the following:

Reduce humidity in your home

Keep the humidity level in your home between 30% to 60% by using air conditioners or dehumidifiers.
Put exhaust fans in kitchens and bathrooms.
Don’t install carpets in damp areas such as basements or bathrooms.
Don’t let water accumulate under house plants.

Use mold-reducing products

Clean bathrooms with bleach and other mold killing products.
Add mold inhibitors to paints before application.

Keep your home and belongings dry

Inspect hoses, pipes and fittings - Consider replacing hoses to major appliances like washer and dishwasher every five years. A typical water hose costs $5-$10
Refrigerator ice maker and water dispenser
Water heater
Washer
Dishwashers
Kitchen and bathroom sinks
Bathroom toilets
Keep gutters clean of leaves and other debris.
Maintain your roof to prevent water from seeping into your home.

Be careful after a flood or other water damage

Properly dry or remove soaked carpets, padding and upholstery within 24-48 hours after a flood to prevent mold growth. Anything that can’t be properly dried should be discarded.
Remove standing water as quickly as possible. Standing water is a breeding ground for microorganisms, which can become airborne and inhaled.
Wash and disinfect all areas that have been flooded. This includes walls, floors, closets, shelves, as well as heating and air-conditioning systems.

Pool safety

noreply@blogger.com (PungPond) — Mon, 25 Feb 2008 04:31:00 +0000

Every year about 43,000 people are injured in and around swimming pools and more than 600 people drown in home or public pools. Half of the pool fatalities occur in the yards of single-family homes.

Here are some pool safety tips you should follow:

Never leave small children unsupervised–even for a few seconds.

Put fencing around the pool area to keep people from using the pool without your knowledge.

Keep children away from pool filters, as the suction force may injure them or prevent them from surfacing.

Be sure all pool users know how to swim. Learners should be accompanied by a good swimmer.

Don’t swim alone or allow others to swim alone.

Check the pool area regularly for glass bottles, toys or other potential accident hazards.

Keep CD players, radios and other electrical devices away from pools or nearby wet surfaces.

Don’t allow anyone who has been drinking alcohol to use the pool.

Stay out of the pool during rain or lightning storms.

Never dive into an above-ground pool and check the water depth before plunging into an in-ground pool. Keep clear of the area near a diving board.

Don’t swim if you’re tired or have just finished eating.

Lawnmower safety

noreply@blogger.com (PungPond) — Mon, 18 Feb 2008 02:06:00 +0000

Each year, approximately 75,000 people are injured seriously enough by lawnmowers to require emergency room medical treatment. Only a small percentage of the injuries are caused by mechanical failure; most are the result of human error. Here are some tips to follow before and while mowing your lawn:

Become familiar with your mower.
Read the owner’s manual before using the mower for the first time. Note all safety and operating instructions. Learn the controls well enough to act instantly in an emergency and to stop the machine quickly.
Proper clothing is essential to protect your body from harm.
Always wear non-slip shoes instead of tennis shoes or sandals. Steel-toe safety footwear offers the most protection against the blade. Long pants help protect your legs from objects that may be thrown from under the mower. Use ear plugs to prevent hearing loss caused by exposure to the high noise levels.
Never leave a mower running unattended.
A mower left running unattended can be fascinating to a child. If the mower has an electric start, the key should never be left in the ignition.
Always start the mower outdoors.
Never operate a mower where carbon monoxide can collect, such as in a closed garage, storage shed or basement.
Police the area.
Before you satrt mowing, be sure the lawn is free of tree limbs, rocks, wires and other debris, which can get caught up in the blades.
The main source of danger is the blade.
To perform its task efficiently, the mower blade must be sharp and travel at a high speed. If a hand or foot gets under the mower while the engine is running, it can cause serious injury. Never attempt to unclog or work on a lawnmower while the engine is on.
Disconnect the sparkplug wire.
Any time it is necessary to reach under the mower, disconnect the spark plug wire to insure that the engine cannot start. It takes a little extra time, but not as long as it does to recover from a serious injury.
Check for frayed or cut wiring.
When using an electric lawnmower, wires can easily get cut by the blade. Keep an eye on the wiring as you move the mower and check for frayed or cut wiring every time you mow.
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Home security

noreply@blogger.com (PungPond) — Wed, 13 Feb 2008 06:34:00 +0000

Burglars won't find your home an "easy mark" if they are forced to work in the light, if they have to take a lot of time breaking in, or if they can't break in without making a lot of noise.Research shows that if it takes more than four or five minutes to break into a home, the burglar will go elsewhere.Most insurance companies provide 2 percent to 15 percent discounts for devices that make a home safer—dead-bolt locks, window grates, bars and smoke/fire/burglar alarms.However, when improving the security of your home, don't exchange security for personal safety. Don't make your home such a fortress that you are unable to escape in case of a fire or other emergency.

Check your home for weaknesses and correct them

Take the time to "case" your house or apartment, just as a burglar would. Where is the easiest entry? How can you make it more burglar-resistant?
Trim trees and shrubs near doors and windows, and think carefully before installing a high, wooden fence around your back yard. High fences and shrubbery can add to your privacy, but can also be an asset to a burglar. Consider trading a little extra privacy for a bit of added security.
Force any would-be burglar to confront a real enemy—light. Exterior lights and motion detectors, mounted out of easy reach, can reduce the darkness a burglar finds comforting.
Simple security devices—nails, screws, padlocks, door and window locks, grates, bars and bolts—can increase the amount of time it takes to break into your home.
Invest in a burglar alarm. The most effective ones also ring at an outside service.
Are any of your valuables—paintings, a silver collection or a computer—easy to see from outside the house? Rearranging your furnishings might be advisable if it makes your home less inviting to criminals.

Simple security steps

Doors

Make sure you have strong doors. Outside doors should be metal or solid hardwood, and at least 1 3/4 inches thick. Frames must be made of equally strong material, and each door must fit its frame securely. Even the most efficient lock, if it is placed in a weak door, will not keep out a determined burglar.A peephole or a wide-angle viewer in the door is safer for identifying visitors than a door chain.Sliding glass doors present a special problem because they are easy to open, but you have these doors, you can find special locks for them. A broomstick in the door channel can also help, but cannot be depended on.

Locks

Deadbolt locks are best. They usually are locked with a key from the outside and a thumb turn on the inside. The cylinder (where the key is inserted) should be pick-resistant. Ask your hardware dealer for a reputable brand or buy your locks from a locksmith.

Windows

Key locks are available for all types of windows. Double-hung windows can be secured simply by "pinning" the upper and lower frames together with a nail, which can be removed from the inside.For windows at street level or on fire escapes, consider installing metal accordion gates.

Home security habits

Establish a routine to make certain that doors and windows are locked and alarm systems are turned on.
Avoid giving information to unidentified telephone callers and announcing your personal plans in want ads or public notices (such as giving your address when advertising items for sale).
Notify the police if you see suspicious strangers in your area.
Don't carry house keys on a key ring bearing your home address or leave house keys with your car in a commercial parking lot or with an attendant.
Don't hide your keys in "secret" places outside your home—burglars usually know where to look.

Vacation tips

Leave blinds open in their usual position.
Have mail and packages picked up, forwarded or held by the post office.
Lower the sound of your telephone ringer and answering machine so they can't be heard outside.
Arrange to have your lawn mowed in summer and your walk and driveway shoveled in winter.
Stop newspaper deliveries.
Ask a friend to pick-up "throw-away" newspapers and circulars.
Use automatic timers to turn lights on and off in various parts of the house at appropriate times. Consider connecting a radio to a timer.
Tell police and dependable neighbors when you plan to be away and join with your neighbors to keep a close watch on what's happening in your area—working closely with them is a good way to prevent crime.

Grilling safety

noreply@blogger.com (PungPond) — Thu, 07 Feb 2008 03:31:00 +0000

Americans enjoy more than three billion barbecues each year. But barbecuing can be dangerous, even deadly, if you are not careful. The following tips can make your grilling experience safer:

When ready to barbecue, protect yourself by wearing a heavy apron and an oven mitt that fits high up over your forearm.
With gas grills, make sure the gas cylinder is always stored outside and away from your house. Make sure the valves are turned off when you are not using them. Check regularly for leaks in the connections using a soap and water mix that will show bubbles where gas escapes.
Barbecue grills should be kept on a level surface away from the house, garage, landscaping, and most of all, children.
For charcoal grills, only use starter fluids designed for those grills. Never use gasoline and use a limited amount of starter fluid. If the fire is too slow, rekindle with dry kindling and add more charcoal if necessary. Never add more liquid fuel or you could end up with a flash fire.
Be sure to soak the coals with water before you put them in the trash.
Always remember that grills remain hot long after you are through barbecuing.

In case of an emergency

If you get burned, run cool water over the injury for 10–15 minutes. Never put butter or salve on burns because they will seal in the heat and cause further blistering. If you receive a serious burn the sooner you get medical attention the better.

Surviving severe cold weather

noreply@blogger.com (PungPond) — Mon, 04 Feb 2008 02:56:00 +0000

Much of the country periodiaclly experiences severe and sustained cold weather, with snowfalls interspersed with periods of melting and freezing. This can inflict considerable damage on homes.Here are some tips and steps you can take to make insurance losses less likely during extended severe weather.

Keep sidewalks and entrances to your home free from snow and ice.

Watch for ice dams near gutter downspouts. Keep gutters free of leaves and debris so melting snow and ice can flow freely. Ice dams can cause water to build up and seep into your house.

Keep the house heated to a minimum of 65 degrees. The temperature inside the walls where the pipes are located is substantially colder than the walls themselves. A temperature lower than 65 degrees will not keep the inside walls from freezing.

Identify the location for the main water shutoff in your home. Find out how it works in case you have to use it.

Open hot and cold faucets enough to let them drip slowly. Keeping water moving within the pipes will prevent freezing.

If you haven’t already, make sure all hoses are disconnected from outside spigots.

If your garage is attached to your house, keep the garage doors closed. The door leading to the house is probably not as well-insulated as an exterior door.

If ice forms on tree limbs, watch for dead, damaged or dangerous branches that could break and fall because of ice, snow or wind and damage your house, a car, or injure someone walking near your property.

If you use fireplaces, wood stoves and electric heaters, watch them closely and make sure they are working properly.

Remember to close the flue in your fireplace when you’re not using it.

If you have to leave your home on a trip, ask a neighbor to check the house regularly. If there is a problem with frozen pipes or water leakage, attending to it quickly could mean far less damage.

If you plan to be away for an extended period of time, have the water system drained by a professional to keep pipes from freezing or bursting.

A worst-case scenario

If you discover that pipes are frozen, don’t wait for them to burst. Take measures to thaw them immediately, or call a plumber for assistance.

If your pipes burst, first turn off the water and then mop up spills. You don’t want the water to do more damage than it already has.

Call your agent or company as soon as you can. An insurance adjuster doesn’t need to see the spill before you take action. However, he or she will want to inspect any damaged items.

Make temporary repairs and take other steps to protect your property from further damage. Remove any carpet or furniture that can be further damaged from seepage.

Make a list of the damaged articles.

Save the receipts for what you spend—including additional living expenses if you must leave your home until repairs are completed—and submit them to your insurance company for reimbursement.

Standard homeowners policies will cover most of the kinds of damage that result from a freeze. For example, if house pipes freeze and burst or if ice forms in gutters and causes water to back up under roof shingles and seep into the house. You would also be covered if the weight of snow or ice damages your house.However, most policies do not cover backups in sewers and drains or flood damage, which can also happen in winter. To be covered for flooding, you need a policy from the National Flood Insurance Program, while coverage for sewers and drains is generally offered as an endorsement to a standard homeowners insurance policy.If your home suffers water damage, it is important to make sure that it is properly dried and repaired to prevent any potential problem with mold. Remember, mold can not survive without moisture.Check with your agent or company so you’ll be sure what your policy covers.

Dog bite liability

noreply@blogger.com (PungPond) — Mon, 21 Jan 2008 02:21:00 +0000

According to the Centers for Disease Control and Prevention, there are approximately 4.7 million dog bites per year. These bites cost the property/casualty insurance industry roughly $317.2 million in 2005.

Homeowners and renters insurance policies typically cover dog bite liability. The following tips can help reduce the chances of your dog biting someone:

Have your dog spayed or neutered. These procedures will greatly reduce the likelihood that the dog will bite.
Socialize your dog so that it knows how to act with other people and animals.
Play non-aggressive games with your dog such as "go fetch." Playing aggressive games like "tug-of-war" can encourage inappropriate behavior.
Avoid exposing your dog to situations in which you are unsure what the dog’s response will be.

Insurers may charge more for certain breeds of dogs. The following breeds or types of dog were responsible for the greatest number of dog bite-related fatalities over the 20-year period from 1979 to 1998, according to the Centers for Disease Control and Prevention ( http://www.cdc.gov ). The breeds are listed in declining order of fatalities:

"Pit Bull"
Rottweiler
German Shepherd Dog
"Husky"
Malamute
Doberman Pinscher
Chow Chow
Great Dane
Saint Bernard

Lightning Safety

noreply@blogger.com (PungPond) — Tue, 15 Jan 2008 09:49:00 +0000

Damage caused by lightning, such as fire, is covered by standard homeowners and business insurance policies. Some home and business insurance policies provide coverage for power surges that are the direct result of lightning striking a home or business. There is also coverage for lightning damage under the comprehensive portion of an auto insurance policy. With the explosion in the number and value of consumer electronics in homes, such as flat screen TVs, home entertainment centers, multiple computers, gaming systems and other expensive devices, it is more important than ever to take precautions.

Preventing losses
The I.I.I. offers the following tips to protect homes and businesses against power surges and lightning strikes:

Install a lightning protection system. A lightning protection system supplies structural protection by providing a specified path on which lightning can travel. When a building is equipped with a lightning protection system, the destructive power of the lightning strike is directed safely into the ground, leaving the structure and its contents undamaged. The system includes a lightning rod or air terminals at the top of the house that can be disguised to look like a weather vane and wires to carry the current down to grounding rods at the bottom of the house. According to the Institute for Business & Home Safety (IBHS), the lightning protection system needs to be securely anchored to the roof; otherwise it may whip around in a storm and damage the building. So make sure to have a licensed electrician install your lightning rod and protection system.
Use surge protectors. Today’s sensitive electronic equipment is particularly vulnerable to lightning. To assure the highest level of protection, UL-listed surge arrestors should be installed on electrical service panels. Installations typically include surge arrestors for the main electric panel, as well as incoming phone, cable, satellite and data lines. Surge arrestors protect against damaging electrical surges that can enter a structure via power transmission lines. By filtering and dissipating the harmful surges, arrestors prevent electrical fires and protect against electrical discharges that can damage a building's electrical system, computers, appliances and other systems. UL-listed transient voltage surge suppressors can also be installed to protect specific pieces of electronic equipment. Keep in mind that power strips offer little protection from electrical power surges.
Unplug expensive electronic equipment. As an added precaution, unplug expensive electronic equipment such as TVs, computers and the like if you know a storm is approaching.

HOMEOWNERS TIPS

noreply@blogger.com (PungPond) — Mon, 07 Jan 2008 03:49:00 +0000

HOMEOWNERS TIPS

How can I avoid scams after a disaster?

noreply@blogger.com (PungPond) — Wed, 12 Dec 2007 09:46:00 +0000

If your home was destroyed by a hurricane, wildfire or other disaster, be cautious. Unfortunately, there are dishonest service providers that prey on disaster victims. They know that people who have lost their homes and valuables may not be thinking clearly. If you have suffered this type of loss, don’t make any rash decisions. Talk to your insurance agent, who may recommend service providers in your area.Here are some basic guidelines for hiring service providers:

Roofers and builders

Don't be rushed into signing a contract with any company. Instead, collect business cards and get written estimates for the proposed job.
Beware of building contractors that encourage you to spend a lot of money on temporary repairs. Payments for temporary repairs are covered as part of the total settlement. If you pay a contractor a large sum for a temporary repair job, you may not have enough money for permanent repairs. In most cases, you should be able to make the temporary repairs yourself. Ask your insurance agent. And remember to keep receipts.
Investigate the track record of any roofer, builder or contractor that you consider hiring. Look for professionals that have a solid reputation in your community. You can call your Better Business Bureau for help. Also, get references and never give anyone a deposit until after you have thoroughly researched their background.

A common fraud scheme is for a so-called "contractor" to convince a homeowner that a large deposit must be provided before repair work can begin. Frequently, the job will be started, but not completed. Unfortunately, these con artists are never seen or heard from again.

Public adjusters and attorneys

Don't make any rash decisions about hiring someone to handle your claim. Be especially wary of individuals who go door-to-door soliciting business in the aftermath of a catastrophe. Most importantly, don't let anyone scare you into signing a contract. You don't want to be victimized by someone who comes into town, hoping to make a fast buck. You could end up forfeiting a significant portion of your insurance dollars.
Before hiring a public adjuster or an attorney, try to settle your claim directly with your insurance company. Your insurer provides an adjuster at no charge to you. Ask your insurance agent or company representative to help you with your claim and don't be afraid to ask questions. If you decide to work directly with your insurer, you still have the right to hire a third-party professional to help you.
If your claim is complicated and you want to hire a public adjuster or attorney, make sure that person is qualified to handle your case. Ask your friends, relatives or business associates for the names of well-regarded professionals in your community. Also, call your state department of insurance regarding a public adjuster, and your state or county bar association about a prospective attorney.
Understand that you will have to pay a public adjuster 15 percent and an attorney as much as 30 percent of your total claim settlement.

What is a public adjuster?

noreply@blogger.com (PungPond) — Sun, 09 Dec 2007 08:29:00 +0000

Your insurance company provides an adjuster at no charge to you. Adjusters who have no relationship with your insurance company and charge a fee for their services also may contact you. These are known as public adjusters. You may use a public adjuster to help you in settling your claim.

Public adjusters may charge you as much as 15 percent of the total value of your settlement for their services. The fee isn't covered by your insurance policy. Sometimes after a disaster, your state’s insurance department sets the percentage that public adjusters may charge.
If you decide to use a public adjuster, first check his or her qualifications by calling your state insurance department. Ask your agent, a lawyer or friends and associates for the name of a professional adjuster they can recommend. Avoid individuals who go from door-to-door after a major disaster, unless you are sure they are qualified.

What can I do if I am having trouble settling my claim?

noreply@blogger.com (PungPond) — Thu, 06 Dec 2007 16:08:00 +0000

If you are unsatisfied with how your insurance company is handling your claim, you have several options:

Talk to the agent or company representative who sold you the policy
Let the agent know that you are dissatisfied and explain the specifics of your problem.

Contact the claims manager of the company
Provide a written explanation of your problem with copies of supporting documentation. Remember to send only a copy and not any original documentation. If you are insured with a smaller company, consider writing directly to the president. Going to the top can sometimes speed the process.

Contact your state insurance department
Insurance is a regulated industry and your state department of insurance should be able to help you resolve your problem.

Call the National Insurance Consumer Help line
This toll-free telephone service (800-942-4242) can help you work with your insurance company to solve the problem.

Consult an attorney
If you have tried all four of the above tips and still can’t resolve the claim, you may want to talk to an attorney. You may have to pay a consultation fee for your initial visit, so make sure you know how much this will cost. Meet with an attorney who has solid references or get the name of someone from your local bar association. Prepare for the visit by bringing a copy of your insurance policy and other relevant documents. Get the fee structure in writing before you decide to pursue the case.

How is the settlement amount determined?

noreply@blogger.com (PungPond) — Mon, 03 Dec 2007 14:40:00 +0000

The settlement amount depends on which type of policy you have. Having inadequate insurance can affect the amount of compensation you get.

Replacement Cost and Actual Cash Value

Replacement cost provides you with the dollar amount needed to replace a damaged item with one of similar kind and quality without deducting for depreciation—the decrease in value due to age, obsolescence, wear and tear and other factors. An actual cash value policy pays you the amount needed to replace the item minus depreciation.Suppose, for example, a tree fell through the roof onto your eight-year-old washing machine. If you had a replacement cost policy for the contents of your home, the insurance company would pay to replace the old machine with a new one. If you had an actual cash value policy, the company would pay only a percentage of the cost of a new washing machine because a machine that has been used for eight years would be worth less than its original cost.Suppose, also, that the tree damaged your 15-year-old roof so badly that it had to be completely replaced. If you had a replacement cost policy, the insurance company would pay the full cost of installing a new roof. If you had an actual cash value policy, it would pay a smaller percentage of the cost of replacing it.

Extended and Guaranteed Replacement Cost

If your home is damaged beyond repair, a typical homeowners policy will pay to replace it up to the limits of the policy. When the value of your insurance policy has kept up with increases in local building costs, a similar dwelling can generally be rebuilt for an amount that is within the policy limits.Some insurance companies offer a replacement cost policy that will pay a certain percentage over the limit to rebuild your home—20 percent or more, depending on the insurer—so that if building costs go up unexpectedly, you will have extra funds to cover the bill. These are called extended replacement cost policies. A few insurance companies still offer a guaranteed replacement cost policy that pays whatever it costs to rebuild your home as it was before the disaster. But neither a guaranteed nor an extended replacement cost policy will pay for a house that's better than the one that was destroyed.

Mobile Home Policies

If you own a mobile home, you may have a policy based on replacement cost, actual cash value or, in a few cases, a "stated amount." With a stated amount policy, the maximum amount you receive if your home is destroyed is the amount you agreed to when the policy was issued. The depreciation in the value of your home is not considered in the settlement. If you opt for the stated amount, update your policy annually to make sure that the stated amount will cover the realistic cost of replacing your mobile home. Check with local mobile home dealers to find out what similar homes sell for now.

How does the payment process work?

noreply@blogger.com (PungPond) — Sun, 02 Dec 2007 10:27:00 +0000

An adjuster will inspect the damage to your home and offer you a certain sum of money for repairs. The first check you get from your insurance company is often an advance against the total settlement amount. It is not the final payment.If you're offered an on-the-spot settlement, you can accept the check right away. Later on, if you find other damage, you can "reopen" the claim and file for an additional amount. Most policies require claims to be filed within one year from the date of disaster. Check with your state department of insurance.When both the structure of your home and personal belongings are damaged, you generally receive two separate checks from your insurance company, one for each category of damage. You should also receive a separate check for additional living expenses that you incur while your home is being renovated.

Structure
If you have a mortgage on your house, the check for repairs will generally be made out to both you and the mortgage lender. As a condition of granting a mortgage, lenders usually require that they are named in the homeowner’s policy and that they are a party to any insurance payments related to the structure.The lender gets equal rights to the insurance check to ensure that the necessary repairs are made to the property in which it has a significant financial interest. This means that the mortgage company or bank will have to endorse the check. Lenders generally put the money in an escrow account and pay for the repairs as the work is completed. You should show the mortgage lender your contractor's bid and let the lender know how much the contractor wants up front to start the job. Your mortgage company may want to inspect the finished job before releasing the funds for payment to the contractor.Some construction firms require you to sign a form that allows your insurance company to pay the firm directly. Make certain that you're completely satisfied with the repair work and that the job has been completed before you let the insurance company make the final payment. Remember, you won't receive a check for the repair job. The construction firm will bill your insurance company directly and attach the "direction to pay" form you signed.Bank regulators have guidelines for lenders to follow after a major disaster. If you have any questions contact your state banking department.

Personal belongings
The first step is to add up the cost of everything inside your home that has been damaged in the disaster. Now is the time to review your personal inventory, to help you remember the things you may have lost. If you don’t have an inventory, look for photographs or videotapes that picture the damaged areas. For expensive items, you may also contact your bank or credit card company for proof of purchase. When making your list, don’t forget items that may be damaged in out of the way places such as the attic or tops of closets.If you have a replacement cost policy, you will be reimbursed for the cost of buying new items. An actual cash value policy will reimburse you for the cost of the items minus depreciation. Regardless of which type of policy you have, the first check will be calculated on a cash value basis. Most insurance companies will require you to purchase the damaged item before they will reimburse you for its full replacement cost.If you have financed your home, your bank may have received a check for both repairs to your home and your possessions. If you don't get a separate check from your insurance company for your belongings, ask the lender to send the money to you immediately.If you have a replacement cost policy, you may be required to buy replacements for items damaged before your insurance company will compensate you. Make sure to keep receipts as proof of purchase.If you decide not to replace some items, in most cases you’ll be paid the depreciated or actual cash value of the items that were damaged. You don't have to decide what to do immediately.Your insurance company will generally allow you several months from the date of the cash value payment to replace the item. Ask your agent how many months you are allowed before you must replace your personal possessions. Some insurance companies supply lists of vendors that can help replace your property.

Additional
living expensesYour check for additional living expenses should be made out to you and not your lender. This money has nothing to do with repairs to your home and you may have difficulty depositing or cashing the check if you can't get the mortgage lender's signature. This money is designed to cover your expenses for hotels, car rentals and other expenses you may incur while your home is being fixed.

Options for rebuilding
If your home has been destroyed, you have several options:

Rebuild your home on the same site.The amount of money you’ll have to rebuild your home depends on both the type of policy you bought and the dollar limit specified on the first “declarations” page of your policy. Generally, you are entitled to the replacement cost of your former home, providing that you spend that amount of money on the home you rebuild. Remember, your insurance policy will pay to rebuild your home as it was before the disaster. It won’t pay to build a bigger or more expensive house. A similar rule applies to repairs.
Decide not to rebuild or to rebuild in a different location. The amount you’ll get from your insurer will be determined by your policy, state law, and what the courts have ruled on this matter. If you decide not to rebuild, review your policy and ask your insurance agent or company representative what the settlement amount will be.

How do I file a homeowners claim?

noreply@blogger.com (PungPond) — Sat, 01 Dec 2007 07:54:00 +0000

If someone has become injured on your property or if a violent storm destroys your home, you will need to file a claim with your insurance company. Remember, a homeowners policy is a contract between you and your insurance company. And there are rules and procedures that you and your insurer must follow. Read your insurance policy to see what your responsibilities are.

Report any crime to the police

If you are the victim of a theft or your home has been vandalized or burglarized, report it to the police. Get a police report and the names of all law enforcement officers that you speak with.

Phone your agent or company immediately

Insurance policies place a time limit on filing claims. Find out what the time limit is. Ask questions: Am I covered? Does my claim exceed my deductible? (Your deductible is the amount of loss you agree to pay yourself when you buy a policy.) How long will it take to process my claim? Will I need to obtain estimates for repairs to structural damage?

Make temporary repairs

Take reasonable steps to protect your property from further damage. Save receipts for what you spend and submit them to your insurance company for reimbursement.

Prepare a list of lost or damaged articles

You are going to need to substantiate your loss. Avoid throwing out damaged items until the adjuster has visited your home. You should also consider photographing or videotaping the damage. Prepare a home inventory, make a copy for your adjuster and supply him or her with copies of receipts from damaged items.

If you need to relocate, keep your receipts

If your home is severely damaged and you need to find other accommodations while repairs are being made, keep records of all additional expenses incurred. Most homeowners insurance policies provide coverage for the “loss of use” of your home.

Get claim forms

Once your insurance company has been notified of your claim, the company is required to send you the necessary claim forms to you by the end of a specified time period. (The time period varies from state to state.) Return the properly filled out forms as soon as possible in order to avoid delays.

Have an adjuster inspect the damage to your home

Your insurance company will probably arrange for an adjuster to come and inspect your home.Once you and your insurance company agree on the terms of your settlement, state laws require that you be sent payment promptly. In most cases, your claim will be processed quickly. If you have any questions about the claim filing laws in your state, call your insurance agent or your state department of insurance.

HELP! I HAVE TO FILE A CLAIM

noreply@blogger.com (PungPond) — Sat, 01 Dec 2007 01:19:00 +0000

Should I purchase an umbrella liability policy?

noreply@blogger.com (PungPond) — Wed, 28 Nov 2007 13:32:00 +0000

If you are ever sued, your standard homeowners or auto policy will provide you with some liability coverage, paying for judgements against you and your attorney's fees, up to a limit set in the policy. However, in our litigious society, you may want to have an extra layer of liability protection. That's what a personal umbrella liability policy provides.

An umbrella policy kicks in when you reach the limit on the underlying liability coverage in a homeowners, renters, condo or auto policy. It will also cover you for things such as libel and slander.

For about $150 to $300 per year you can buy a $1 million personal umbrella liability policy. The next million will cost about $75, and $50 for every million after that.

Because the personal umbrella policy goes into effect after the underlying coverage is exhausted, there are certain limits that usually must be met in order to purchase this coverage. Most insurers will want you to have about $250,000 of liability insurance on your auto policy and $300,000 of liability insurance on your homeowners policy before selling you an umbrella liability policy for $1 million of additional coverage.

How often should I review my policy?

noreply@blogger.com (PungPond) — Tue, 27 Nov 2007 10:03:00 +0000

There are four events that should trigger a review of your policy:
1. When your policy comes up for renewal
Don’t just automatically send a check to your insurance company. Take the time to review your coverage and call your agent with any questions or concerns that you may have regarding your homeowners insurance. Ask yourself the following questions:

Has the company made any changes in coverage since last year?
Does my policy now include a separate deductible for risks like hurricane or hail?
Should I raise the deductible to save money?
Am I taking advantage of all available discounts?
Do I need to raise the amount of coverage for liability, personal possessions or the structure?
Should I comparison shop for a cheaper rate?
Do I need flood, earthquake or an umbrella policy?

2. Major purchases or alterations/improvements to your home

If you have made any major purchases, make sure that you have the proper coverage. And, don’t forget about gifts. If you have received a diamond engagement ring or if a member of your family has bought you expensive artwork or a computer, talk to your agent about either increasing the amount of insurance you have for your personal possessions or purchasing a floater/endorsement for these items. A floater will give you higher and broader coverage for these items than you have under your homeowners policy.

If you have made major improvements to your home, such as adding a new room, enclosing a porch or expanding a kitchen or bathroom, you risk being underinsured if you don't report the increase in square footage to your insurance company. Don’t forget about new structures outside of your home. If you have built a gazebo, a new shed for your tools or installed a pool or hot tub, you need to speak to your agent. Keep receipts and records in case you need to forward copies to your company.

3. You have made your home safer

If you have installed a state-of-the art fire/burglar alarm system or upgraded your heating, plumbing or electrical system, make sure that your insurance company knows about these improvements. You may qualify for a discount.

4. Major lifestyle changes

Marriage, divorce, or adult children who move back into the family home, can all affect your homeowners insurance. When people move in or move out, they take their belongings with them. And you may need additional coverage if there is a sizable increase in the value of the belongings in your home. Starting a home-based business can also trigger changes in your coverage. You will need to get additional coverage for business liability and equipment. If the business is your primary source of income, you may need a Businessowners Package Policy (BOP). You may also need professional liability coverage, which is excluded under in-home business and businessowners policies. For more information, see Business Insurance.

What if I can't get coverage?

noreply@blogger.com (PungPond) — Mon, 26 Nov 2007 07:35:00 +0000

If you live in a home that is considered "high-risk" or plan to move to a high-risk location, you may have difficulty obtaining an insurance policy.

What constitutes high-risk?

Your home is located in an area prone to severe weather such as hurricanes, windstorms, tornadoes or hail.
You live in an urban area with high crime, vandalism and theft.
Your home has an old plumbing, electrical and/or heating system—these represent a higher chance of causing fire or water damage.

If one or two insurers turn you down, don’t despair. You do have other options. If you are buying a new home, ask the real estate agent, mortgage lender or builder for names of companies that write in your area. If it’s an existing home, ask the previous owners who insured the house. If you still can’t find coverage, consider the following:

Ask for help from your current insurance professional.

Talk to the agent or company representative that previously insured your home or is currently insuring your car, boat or business. If the problem is not where the house is located, but the condition that it is in, find out what type of improvements or disaster-resistant features would be needed to make your home more insurable. The Institute for Business & Home Safety (IBHS) also provides information on natural hazards, community land use and ways you can protect your property from damage. It can be reached at http://www.ibhs.org

Talk to your neighbors and find out which insurers they use.

Get the names of any agents who may be knowledgeable about the specific risks in your neighborhood.

Call your state insurance department.

It can generally provide you with a list of insurers that write in your area. It might also have information regarding community groups that help homeowners with insurance problems such as the Neighborhood Reinvestment Corporation ( http://www.nw.org/nrc/ ).

If you still can’t get insurance, find out if your state has a special insurance plan known as shared market. Generally, two types of plans exist:

1. FAIR

PlansFair Access to Insurance Requirements (FAIR) Plans were created in the 1960s to make insurance available in areas that had abnormally high exposure to risks over which they had no control. These plans are insurance pools that sell property insurance to people who can’t get coverage in the voluntary market.

FAIR Plan policies may cost more than private insurance and may offer less coverage, but they offer insurance protection where none would otherwise exist. All FAIR Plans cover losses due to fire, vandalism, riot and windstorm. About a dozen states have some form of a standard homeowners policy, which includes liability. In California, the Plan covers brush fires. Georgia and New York provide wind and hail coverage for certain coastal communities. In order to qualify for FAIR Plan coverage, you must:

Make improvements that limit the risk of fire, theft or water damage, such as upgrading your electrical wiring, heating or plumbing systems, repairing your roof or improving security.
If you do not correct conditions that make your home prone to losses, the FAIR Plan administrator has the right to deny insurance coverage.

2. Beach and Windstorm Plans

In seven Atlantic and Gulf states, there is a counterpart to the FAIR Plans called Beach and Windstorm Plans. They provide residents and business owners, in designated areas, with coverage against hurricanes and other severe windstorms. Windstorm Plans in Florida, Mississippi, South Carolina and Texas offer coverage only against wind and hail damage. Plans in Alabama and North Carolina offer coverage for fire as well. In New York, the Coastal Market Assistance Plan helps homeowners get coverage if their application has been rejected by at least three private insurers.

What information do I need to provide to my agent?

noreply@blogger.com (PungPond) — Sun, 18 Nov 2007 10:09:00 +0000

Your agent will ask you what kind of home you own or rent, roughly how much your possessions are worth, and what kind of liability coverage you will need. The agent will also want to know how many people live in your household, what pets you own, and the general condition of your house. You should also tell him if you own any particularly valuable items that might need special coverage called a floater.

What does my credit rating have to do with purchasing insurance?

noreply@blogger.com (PungPond) — Thu, 15 Nov 2007 15:40:00 +0000

Credit scores are based on an analysis of an individual’s credit history. These scores are used for many purposes such as securing a loan, finding a place to live, getting a telephone and buying insurance. Insurers often generate a numerical ranking based on a person’s credit history, known as an “insurance score,” when underwriting and setting the rates for insurance policies. Actuarial studies show that how a person manages his or her financial affairs, which is what an insurance score indicates, is a good predictor of insurance claims. Insurance scores are used to help insurers differentiate between lower and higher insurance risks and thus charge a premium equal to the risk they are assuming. Statistically, people who have a poor insurance score are more likely to file a claim.

As a result, establishing a solid credit history can cut your insurance costs. To protect your credit standing, pay your bills on time, don’t obtain more credit than you need, and keep the balances on your credit cards as low as possible—ideally, try to pay off the bill in full each month. Also, check your credit record regularly, and request that any errors be corrected immediately so that your record remains accurate.

The Fair Credit Reporting Act (FCRA) requires each of the nationwide consumer reporting companies—Equifax, Experian, and TransUnion—to provide you with a free copy of your credit report, at your request, once every 12 months. For more information, go to the Federal Trade Commission’s Web site on credit.

How can I save money?

noreply@blogger.com (PungPond) — Mon, 12 Nov 2007 10:40:00 +0000

The price you pay for your homeowners insurance can vary by hundreds of dollars, depending on the size of your house and the insurance company you buy your policy from. Here are some ways to save money.

Shop around

Prices vary from company to company, so it pays to shop around. Get at least three price quotes. You can call companies directly or access information on the Internet. Your state insurance department may also provide comparisons of prices charged by major insurers. Check the financial health of insurance companies by using ratings from independent rating agencies and consulting consumer magazines. Get quotes from different types of insurance companies.

Some sell through their own agents. These agencies have the same name as the insurance company. Some sell through independent agents who offer policies from several insurance companies. Others do not use agents. They sell directly to consumers over the phone or via the Internet. But don't shop price alone. You want a company that answers your questions and handles claims fairly and efficiently. Ask friends and relatives for their recommendations.

Contact your state insurance department to find out whether they make available consumer complaint ratios by company. Select an agent or company representative that takes the time to answer your questions. Remember, you'll be dealing with this company if you have an accident or other emergency.

Raise your deductible

A deductible is the amount of money you have to pay toward a loss before your insurance company starts to pay a claim. The higher your deductible, the more money you save on your premium. Consider a deductible of at least $500. If you can afford to raise it to $1,000, you may save as much as 25 percent. If you live in a disaster-prone area, your insurance policy may have a separate deductible for damage from major disasters.

If you live near the coast in the East, you may have a separate windstorm deductible, if you live in a state vulnerable to hail storms, you may have a separate deductible for hail, and if you live in an earthquake-prone area, your earthquake policy may have a deductible.

Buy your home and auto policies from the same insurer

Most companies that sell homeowners insurance also sell auto and umbrella liability insurance. (An umbrella liability policy will give you extra liability coverage.) Some insurance companies will reduce your premium by 5 percent to 15 percent if you buy two or more insurance policies from them. But make certain this combined price is lower than buying the coverages from different companies

Make your home more disaster-resistant

Find out from your insurance agent or company representative what you can do to make your home more resistant to windstorms and other natural disasters. You may be able to save on your premiums by adding storm shutters and shatter-proof glass, reinforcing your roof or buying stronger roofing materials. Older homes can be retrofitted to make them better able to withstand earthquakes. In addition, consider modernizing your heating, plumbing and electrical systems to reduce the risk of fire and water damage.

Don't confuse what you paid for your house with rebuilding costs

The land under your house isn't at risk from theft, windstorm, fire and the other perils covered in your homeowners policy. So don't include its value in deciding how much homeowners insurance to buy. If you do, you'll pay a higher premium than you should.

Ask about discounts for home security devices

You can usually get discounts of at least 5 percent for a smoke detector, burglar alarm or dead-bolt locks. Some companies may cut your premiums by as much as 15 or 20 percent if you install a sophisticated sprinkler system and a fire and burglar alarm that rings at the police, fire or other monitoring stations. However, these systems aren't cheap and not every system qualifies for a discount. Before you buy one, find out what kind your insurer recommends, how much the device would cost and how much you'd save on premiums.

Seek out other discounts

Many companies offer discounts, but they don't all offer the same types of discounts or the same level of discount in all states. Ask your agent or company representative about discounts available to you. For example, if you're at least 55 years old and retired, you may qualify for a discount of up to 10 percent at some companies. If you've completely modernized your plumbing or electrical system recently, some companies may also provide a price break.

See if you can get group coverage

Does your employer administer a group insurance program? Check to see if a homeowners policy is available and is a better deal than you can find elsewhere. In addition, professional, alumni and business groups may offer an insurance package at a reduced price.

Stay with the same insurer

If you've been insured with the same company for several years, you may receive a discount for being a long-term policyholder. Some insurers will reduce premiums by 5 percent if you stay with them for three-to-five years and by 10percent if you're a policyholder for six years or more. To ensure you're getting a good deal, periodically compare this price with the prices of policies from other insurers.

Review policy limits and the value of your possessions annually

You want your policy to cover any major purchases or additions to your home. But you don't want to spend money for coverage you don't need. If your five-year-old fur coat is no longer worth the $5,000 you paid for it, you'll want to reduce or cancel your floater (extra insurance for items whose full value is not covered by standard homeowners policies) and pocket the difference.

Look for private insurance if you are in a government plan

If you live in a high-risk area—one that is especially vulnerable to coastal storms, fires or crime—and you've been buying your homeowners insurance through a government plan, find out from insurance agents, company representatives or your state department of insurance which insurance companies might be interested in your business. You may find there are steps you can take that will allow you to buy insurance at a lower price in the private market.

When you're buying a home, consider the cost of homeowners insurance

The price you pay for homeowners insurance depends in part on the cost of rebuilding your home and the likelihood that it will be damaged by natural disasters or that it will burn down. You may pay less if you buy a house close to a fire hydrant or in a community that has a professional rather than a volunteer fire department. You may also pay less if your home’s electrical, heating and plumbing systems are less than 10 years old. If you live in the East, consider a brick home because it's more wind-resistant. If you live in an earthquake-prone area, look for a wooden frame house because it is more likely to withstand this type of disaster. Choosing wisely could cut your premiums by 5 percent to 15 percent.

Remember that flood and earthquake damage are not covered by a standard homeowners policy. If you buy a house in a flood-prone area, you'll have to pay for a flood insurance policy that costs an average of $400 a year. The National Flood Insurance Program provides useful information on flood insurance on its Web site at http://www.floodsmart.gov/ . A separate earthquake policy is available from most insurance companies. The cost of the coverage will depend on the likelihood of earthquakes in your area and the construction features.If you have questions about insurance for any of your possessions, be sure to ask your agent or company representative. For example, if you run a business out of your home, be sure you have adequate coverage. Most homeowners policies cover business equipment in the home, but only up to $2,500 and they offer no business liability insurance. For more information, see Business Insurance.

How much will it cost?

noreply@blogger.com (PungPond) — Sun, 11 Nov 2007 08:05:00 +0000

There are many factors an insurance company uses to determine the price of your policy:

The square footage of the house and any additional structures.

Building costs in your area.

Your home's construction, materials and features.

Amount of crime in your neighborhood.

The likelihood of damage from natural disasters, such as hurricanes and hail storms.

The proximity of your home to a fire hydrant (or other source of water) and to a fire station, whether your community has a professional or volunteer fire service and other factors that can affect the time it takes to put out fires.

The condition of the plumbing, heating and electrical system.

If you rent your home or own a condo or co-op, your insurer will not consider the size of the dwelling or building costs. However, the insurance company will take into account factors that make damage to your possessions more likely.

How do I pick an insurance company?

noreply@blogger.com (PungPond) — Mon, 05 Nov 2007 08:23:00 +0000

There are many insurance companies, so choosing between them can be a challenge. Here are the main points to keep in mind when selecting an insurance company:

Licensing -- Not every company is licensed to operate in each state. As a general rule, you should buy from a company licensed in your state, because then can you rely on your state insurance department to help if there’s a problem. To find out which companies are licensed in your state, contact the state insurance department.

PriceMany -- companies sell insurance policies and prices vary greatly from one to another, so it really pays to shop around. Get at least three price quotes from companies, agents and from the Internet. Your state insurance department may publish a guide that shows what insurers charge for different policies in various parts of your state.

Financial Solidity -- You buy insurance to protect you financially and provide peace of mind. Select a company that is likely to be financially sound for many years, by using ratings from independent rating agencies.

Service -- Your insurance company and its representatives should answer your questions and handle your claims fairly, efficiently and quickly. You can get a feel for whether this is the case by talking to other customers who have used a particular company or agent. You may also want to check a national claims database to see what complaint information it has on a company. Also, your state insurance department will be able to tell you if the insurance company you are considering doing business with had many consumer complaints about its service relative to the number of policies it sold.

Comfort -- You should feel comfortable with your insurance purchase, whether you buy it from a local agent, directly from the company over the phone, or over the Internet. Make sure that the agent or company will be easy to reach if you have a question or need to file a claim.

Where can I buy insurance?

noreply@blogger.com (PungPond) — Sun, 04 Nov 2007 08:19:00 +0000

You can buy insurance through your local insurance agent and through insurance companies that sell through their own employees, over the phone, by mail and over the Internet. Consult your state insurance department, the yellow pages of your phone book, and friends or relatives for the names of insurance companies doing business in your state.

In most states, there are dozens, sometimes hundreds of companies to choose from, depending on the type of insurance you're looking for. You can go to our Find an Insurance Company tool for help.