Drumstick drama: Does homeowners insurance cover food poisoning?
You have a lot to be thankful for this holiday season--friends, family, your health and your mother's prized pecan pie recipe. And here's one more item to add to that list: your homeowners insurance policy. You will be very grateful that you covered your bases if you happen to get sued by the guests at your Thanksgiving table.
Food-borne illnesses account for 128,000 hospitalizations and 3,000 deaths in the United States each year, according to the Centers for Disease Control and Prevention. The majority of these outbreaks result from contamination during the preparation and handling of food.
So remember to wash your hands before touching the sweet potatoes, separate the raw turkey from the cranberry sauce, and use a food thermometer to make sure your bird is cooked to an internal temperature of 165 degrees - otherwise, Aunt Martha might just take you to court.
"If a guest gets sick as the result of the Thanksgiving feast you prepared, it's possible that you could be liable," says Carole Walker, executive director of the Rocky Mountain Insurance Information Association.
Safeguarding against a cornucopia of calamity
And your liability as a host or hostess doesn't end with the bounty on your table. You may also be held accountable if a guest is accidentally injured on your property or imbibes a little too much holiday cheer and crashes into another motorist. The latter is known as "social host liability" and laws vary by state.
"That's why it's important to make sure you take steps to prevent any harm to your guests," Walker says. She recommends:
- Asking about food allergies.
- Properly cleaning and cooking food.
- Offering non-alcoholic beverages.
- Shoveling and salting sidewalks.
- Crating pets.
"All of these steps can help you avoid Turkey Day legal troubles," she says.
The good news is that your homeowners insurance should cover you if you accidentally poison a friend or relative with a bad batch of stuffing or one of your dinner guests chokes on a drumstick and decides to sue.
"If your guest gets sick and sues you for damages, your insurer will pay for your legal expenses for a resulting lawsuit, even if the suit is groundless," says Loretta Worters, vice president of the Insurance Information Institute.
But how much insurance coverage should you have in case your Turkey Day takes a turn for the worse?
"You should buy enough liability coverage to protect your assets," says Walker.
If you own property and/or investments that are worth a great deal more than the liability limits on your current homeowners policy, Walker advises you discuss umbrella insurance coverage with your agent or company.
"We live in a litigious society and you need to consider what could be at stake if you had a claim or lawsuit filed against you when someone is injured on your property, or if you, a family member, or your pet is responsible for hurting someone or causing damage to someone else's property," she says.
How much coverage can I expect from typical homeowner insurance?
Worters agrees that it is better to err on the side of caution.
Generally, most homeowner's insurance policies provide a minimum of $100,000 worth of liability insurance, but higher amounts are available. Increasingly, homeowners are urged to consider purchasing at least $300,000 to $500,000 worth of coverage of liability protection, Worters says.
She says it is "advisable" to purchase an additional $1 million in umbrella insurance coverage.
"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," she says.
According to Worters, you can purchase a $1 million personal umbrella liability policy for about $150 to $300 annually.
The original article can be found at Insurance.com:
Drumstick drama: Does homeowners insurance cover food poisoning?
Read more: http://www.foxbusiness.com/personal-finance/2011/11/23/drumstick-drama-does-homeowners-insurance-cover-food-poisoning/#ixzz1eYyWPwx2
Please call our Allstate agency - NOVA Insurance Group (Chantilly, VA) with any insurance related questions @ 703.263.7800
www.south-riding-insurance.com
www.loudoun-insurance.com
Labels: Allstate Chantilly, Allstate South Riding, Chantilly Personal Umbrella, South Riding Personal Umbrella
Really think about getting life insurance
Really think about getting life insuranceNovember 6, 2011, By Scott Lunsford, Chillicothe Gazette.com
You probably have heard the expression "we are born to die." Somebody once joked to me that the death rate is 100 percent. We all will have the same fate.
Will you have a car wreck or a house fire during your lifetime? I bet you carry auto and homeowners insurance just in case you do, right? We are required to have an auto insurance policy, but I bet most of us would have a policy anyway. So, you never might have a car crash or a house fire, but you are going to die. Why is it, then, that so many people refuse to buy life insurance?
I got into a debate recently about which insurance is better, term life or whole life. The easy answer would be the best policy to have is the one that's in effect at the time of death. Some people will say you always should buy term insurance because it is cheaper and you could "invest the difference." So, if the term life premium is $30 per month and the whole life premium is $100 per month, that would leave $70 to invest. Yeah, right. Our savings rate in America is about 0 percent. Most people just don't have that kind of discipline, at least for an extended period of time.
I want to compare a term life policy to a whole life policy so you can understand the difference. For the example, I will use a 20-year term policy compared to a 20-year whole life policy. The insured will be a 45-year-old man, non-tobacco user, purchasing $100,000 of coverage. The premiums are $40.23 per month for the term policy and $205.65 per month for the whole life policy.
So, at first glance, if price is the deciding factor on which policy to buy, then term insurance is the clear winner. The savings per month is $165.42. So, if you had the discipline to save that each month, at the end of 20 years, you should have a nice account built up. I contend that you will not do that, however. The majority of us are not savers.
Let's fast forward to the end of the 20th year. Congratulations to our insured, he did not die. The 20-year term policy has expired. The whole life policy is paid up, which means no more premiums are due. In addition to that, the death benefit, because of dividends, has grown to $122,700. Additionally, whole life builds cash value and the company projection is that the cash value at the end of the 20th year will be $61,039.
Our original 45-year-old spent $9,655.20 during the 20 years on a term life policy and has nothing to show for this outlay. He spent $49,356 for the whole life plan, but if he chooses to cancel the coverage, his return will be about $61,000 -- or $11,644 more than he paid for the coverage. If he chooses to keep the policy in place, he has a $122,700 life insurance policy that doesn't require any additional premiums. Incidentally, the death benefit and the cash value account will continue to increase in value.
Which one should you buy? I have just laid out an example I hope helps you make that decision. If you don't have a life insurance policy, then you are going to create a financial burden for someone at the time of your death. If you already have life insurance, is it the right one?
Remember, the best kind of insurance is the one that's in force when you die.
(Scott Lunsford is owner of Lunsford Insurance Agency in Chillicothe.)
Need help with Life Insurance? Please call us at NOVA Insurance Group (Chantilly, VA) at tel: 703.263.7800, or send an email to: ku@allstate.comwww.south-riding-insurance.com
www.loudoun-insurance.comLabels: Chantilly Life Insurance, South Riding Life Insurance
Do You Need Long-Term Care Insurance?
Do You Need Long-Term Care Insurance?Published November 09, 2011
DailyFinance
According to the Department of Health and Human Services, those of us who reach age 65 will have a 40% chance of entering a nursing home, and 10% will stay in one for five years or more. So does this mean you need long-term care insurance? Possibly. Those numbers don't take into account the millions of aging adults who will need some kind of in-home care as their health falters. By 2020, 12 million older Americans will need long-term care, according to one government estimate. Most will be cared for at home by family members.
Long-term insurance is marketed as a way to fill in the financial gaps if you have a chronic illness or disability and need help with the activities of daily life, like bathing and getting dressed. "The additional expense of long-term [care] can be $40,000-$90,000 a year," says Rich Arzaga, founder of Cornerstone Wealth Management. "The average American cannot survive this risk and expense."
Nor can you count on the government to bail you out when the time comes: Medicare doesn't pay for "custodial care." Medicare pays only for medically necessary, skilled nursing facility or home health care. It may not give you the choice of the best care in your area. And while Medicaid pays for certain types of care for the low-income elderly, who is eligible and what services are covered varies from state to state, and is determined by such things as income and personal resources.
"Many folks wrongly believe that letting the government pay for their anticipated long-term care needs is the best solution, but Medicaid programs are in trouble funding-wise in every state," says Wilma Anderson, a registered financial consultant. "In the future Medicaid may become even harder to qualify for. If you don't plan for LTC, you may have limited or no choices to pay for care when your health changes."
Here are four things to consider when planning for long-term care:
How will you pay the bills?: Many financial planners and elder care experts say long term care insurance is a good place to start. It typically helps pay for things that your medical insurance won't, like in-home care, or remodeling your home so you can stay in it longer. But as with all forms of insurance, it's vital do your research.
Investigate the cost of a stand-alone long-term care policy: The younger you are, the lower the premium will be. The cost really depends on factors like family health history, age, how much insurance you think you'll need, how long you'll need it, where care is received, and more, explains Marion Somers, PhD, author of Elder Care Made Easier: Doctor Marion's 10 Steps to Help You Care for an Aging Loved One.
Shop around for the best policies and prices. Benefits vary: Weigh the scope of coverage, benefit and waiting periods, inflation protection and other factors against your income and health needs.
Read the fine print: "Insurance companies may try to offer added-value features beyond the basic benefits, but most of them don't add much value at all. Be thoughtful and realistic about your needs and priorities," says Ryan Malone, founder of InsideElderCare.com.
Truthfully, says Somers, "Not everyone needs long-term care insurance, but everyone needs a plan."
Self-inflicted car insurance wounds: I crashed into myself!
Self-inflicted car insurance wounds: I crashed into myself!By Emmet Pierce
Published November 03, 2011
Insure.com
Drivers often are their own worst enemies, causing car insurance claims and failing to recognize the things they could have done -- or not done -- to avoid them. Penny Gusner, consumer analyst for CarInsurance.com, says most car accidents can be avoided. A frequent cause of claims is driver distraction. With devices like GPS tools, BlackBerrys and iPhones competing for your attention, you may find yourself multi-tasking when you should be keeping your eyes and your mind on the road.
"People are just inattentive nowadays, it seems," Gusner says. "They are texting when they get in their car. They are trying to answer the phone. Most things people do [to cause accidents] seem to be preventable." Fortunately, your auto insurance policy often covers damage that's due to your own bad judgment.
Read on for eight self-inflicted car insurance wounds and how your insurance will help you out - or not.
1. My wife backed out of the garage and hit my car in the driveway. Can we make a claim on our liability policy?
You can't make a claim for yourself on your own liability coverage. However, Rick Ward, director of auto claims for MetLife Auto & Home, says you typically would be covered if you have a collision policy. Unlike basic liability coverage, which pays for the harm you cause to others, collision coverage pays to repair your own car in the event of an accident. Often, insurance companies that hold the policies on both vehicles in this type of accident will waive one or both of the deductibles. Tully Lehman, a spokesperson for the Insurance Information Network of California (IINC), says that in such cases where the drivers have different insurance providers, the company representing the driver who backed into the parked car likely would cover the damages.
"It is the responsibility of the driver backing out of the driveway to make certain that the path is clear," explains Lehman.
2. Another car hit my door as I was opening it. Whose insurance pays?
In this case, insurance adjusters would look very closely at the nature of the damage to determine who was at fault, says David Snyder, vice president and associate general counsel for the American Insurance Association (AIA).
“Where the damage is may signal who is at fault," he explains. "If the damage is on the outside of your door, most people would conclude the other car hit your car. But if the damage was to the inside of your door, it means you had your door open before the other car hit it. There would be some liability on the person who opened the door."
3. I crashed into my own garage door. Will I need to make a collision claim for my car and a home insurance claim for the garage door?
There is no way to consolidate the two claims, says Snyder. "If you want to collect from your insurance company you have to make two claims.”
On the bright side, you may have to pay the deductible for just one policy if you use the same insurer for both home and auto insurance. For example, MetLife would waive one of the deductibles for its customers under most circumstances, says Ward.
4. I smashed my hand in my car door. Can I make a bodily injury claim on my car insurance?
The answer most likely is "yes," says Snyder. Personal injury protection (PIP) and medical payments (MedPay) coverage pay the medical bills for you and your passengers following a mishap, no matter who is at fault.
In no-fault states such as Pennsylvania and New York, MedPay and PIP are the primary sources of health insurance coverage when you're injured in an auto accident. If you live in a state without no-fault insurance and have MedPay or PIP on your auto policy, you should use it first to pay accident-related medical expenses. Your health insurance company may deny coverage until you exhaust MedPay or PIP benefits.
Think twice before simply using your health insurance to avoid the hassle of a car insurance claim. “A lot of clinics will ask, 'Did this happen in your car?' says Ward."They will forward [the bill] to your auto insurance.”
5. I left my engine running while I ran into a store, but somebody stole my car. Will comprehensive insurance pay my theft claim?
The answer in most cases is "yes," says Ward. Even though it's your own darn fault, "there is coverage for that under your comprehensive theft coverage.” An obvious lack of good judgment normally won't prevent you from collecting, he adds.
You probably will have to pay your deductible, but here is some relief: “If a thief steals your car and damages it, it is covered by comprehensive coverage while it is out of your control," says Ward.
6. I left my emergency brake off and my driverless car rolled down the driveway and across the street, into my neighbor's tree. Will my car insurance pay for the damage to my car and what about the damage to the tree?
Again, it's your own fault, isn't it? But auto insurance companies generally pay under such circumstances, says Snyder. Ward notes that in most cases your policy "will pay for the damages less your deductible.” He also says it would cover damage for the tree under your physical damage liability, up to the limit of the policy.
Your neighbor would have to file a claim for tree damage under his own home insurance policy.
7. I crashed a car while on a test drive. Whose insurance pays?
Lehman says the insurance company representing the dealership would be on the hook for any damages you cause while test-driving a car. Your own insurer would not be obligated to pay. That's because insurance follows the car, not the driver.
If you're on a test drive and someone else hits you, their insurance will have to pay, notes Lehman.
8. My daughter crashed her Little Tikes Cozy Coupe into my car, scratching the door. Can I make a comprehensive claim?
This is one car accident that probably won't be covered by your auto policy. Be prepared to reach into your own pocket or settle up with your child. Unless your daughter carries a liability policy for her toy car, you're probably out of luck, says Lehman. "Can you make a claim?" he asks. "Sure, but the likelihood of damage exceeding your deductible -- if one applies -- is highly unlikely."
NOVA Insurance Group
Chantilly, Virginia
Tel: 703.263.7800
Email: ku@allstate.com
www.south-riding-insurance.com
www.loudoun-insurance.comThe original article can be found at Insure.com:
Self-inflicted car insurance wounds: I crashed into myself!
Read more: http://www.foxbusiness.com/personal-finance/2011/11/03/self-inflicted-car-insurance-wounds-crashed-into-myself/#ixzz1cfQ5Lj5w
Ten Questions for Your Life Insurance Agent
Ten Questions for Your Life Insurance AgentBy Christina Couch
Published November 01, 2011
If you're feeling intimidated by your life insurance options, you're not the only one. A 2010 study by the National Association of Insurance Commissioners shows less than half of American consumers feel confident about making insurance decisions. Perhaps more frightening is only 2 out of 5 U.S. consumers could answer basic questions about insurance coverage.
Get informed about your policy and the company issuing it by asking your life insurance agent these 10 questions.
Whom am I Buying From?
Before getting into the major questions of how much life insurance you need or whether you want term or permanent insurance, do some homework on the company, says Allen McLellan, associate dean and assistant professor of insurance at The American College in Bryn Mawr, Pa.
"You need to know how long the company has been in business, the size of it (and) its ratings," he says. "You also want to ask the agent, 'What are your credentials for being a life insurance professional?'"
McLellan says consumers can research the financial strength of their life insurance company by checking out their fiscal ratings through organizations such as A.M. Best Co., Standard and Poor's and Weiss Ratings. When it comes to the life insurance agent, McLellan says to look for designations such as Chartered Life Underwriter, Certified Financial Planner and Chartered Financial Consultant.
"These designations take up to 10 semester-long courses to acquire," he says. "Those who come out of those courses are, at least knowledgewise, going to be quite professional."
Consumers will also want to know if their agent sells insurance from one particular insurance company or multiple firms.
How is My Need Determined?
How much life insurance you'll need involves two major factors: how much it will take to pay your debts off, including the mortgage, and how much your dependents will need to maintain the same lifestyle after you're gone. Though all companies factor those two variables in, insurance providers frequently use different formulas for determining your specific insurance need, says Bradley Behrendt, a CFP with Tax & Financial Group based in Newport Beach, Calif.
"(Consumers need to ask) how did the adviser come up with the (appropriate) amount of insurance?" Behrendt says. "Was it a ballpark figure? Was it based on an analysis? If so, how deep was the analysis?"
Understanding how your need is determined is crucial, especially for families with unusual debts, such as high medical bills, that may not be considered in a rudimentary-needs formula. Once policy shoppers are sure their insurance agent is taking all of their current and future fiscal needs into consideration, they can purchase a policy that fits their family.
Does the Policy Provide Living Benefits?
You'll want to ask about the basics of the policy, including how long the policy will last, what your premiums will be, what the policy's rate of return is and how the death benefit works. If you're purchasing permanent insurance, you should also ask about what kinds of benefits the policy provides while you're living, says Kim D. H. Butler, author of "Live Your Life Insurance."
"You're basically looking for four things: control, liquidity, use and equity," she says. Control means the policyholder is clear on who owns the policy, who's funding it, who gets to decide the beneficiaries and whether the policy stays open or closed, says Butler. Liquidity means the policyholder is clear on how much money he or she can take out of the policy and how fast. "You can get the cash value of whole life insurance within seven days," she says.
As for use and equity, Butler says policyholders should thoroughly understand what money taken from their account can be used for and what the rules are on borrowing against it if you need to take a policy loan.
What's Guaranteed?
If purchasing a permanent policy, consumers need to pay careful attention to their life insurance illustration, says McLellan.
"Another question (consumers should) ask is 'What are the guarantees associated with this product?'" he says.
While life insurance illustrations frequently provide several projections on how your policy could pay out down the road, McLellan says the numbers that really count are the "guaranteed" figures, which show how much you'll make regardless of fluctuations in the market or fiscal problems the insurance provider may encounter in years to come.
When Can I Expect Returns?
This won't be a question for term purchasers, but those eyeing permanent policies should be prepared to wait several years before their policy will start generating positive returns.
"Expect that 100% of your first-year premiums will go to issuing the policy," says Behrendt, adding that most of it will be paid to the agent as commission.
He says permanent life insurance policies are designed as long-term savings vehicles and can take anywhere from five to 10 years to generate positive returns. New purchasers who see green in their immediate future could be sorely disappointed.
What if My Health Changes?
Unless you're buying a guaranteed-issue policy or purchasing life insurance through your employer, you'll probably have to endure a medical evaluation. The problem is that over the duration of your policy, your health could change for better or worse.
"If you don't get the highest (health) classification when you apply for the policy, you need to ask if there is the ability to improve on that rating if your health increases," says Behrendt.
Behrendt says people who have had health risks such as a heart attack, DUI or smoking habit in the past can have between 10% and 20% knocked off of their life insurance premium if they undergo new medical underwriting after a certain period of time. Policyholders, especially those with term insurance, will also want to know what happens if their health decreases or if they become un-insurable.
What's Covered if I Become Disabled?
Even if you don't purchase a disability rider or a separate disability insurance policy, some life insurance policies provide some benefits for policyholders who become disabled.
"Usually those benefits are a disability premium waiver," says Adam Sherman, CEO of Firstrust Financial Resources life insurance advisory firm in Philadelphia. "For example, if you have a $5,000 (annual) premium and you were deemed to be disabled, the company would provide that $5,000 for that policy."
Sherman is quick to point out that insurance companies have different definitions for "disabled." While some providers define it as an inability to perform your specific occupation, others define it as an inability to perform any occupation at all. Being clear on what defines disability and whether your life insurance waives premiums in the event of catastrophe can help you find the right policy and determine your need for additional riders.
Will the death Benefit Adjust for Inflation?
"If we're talking about (a death benefit) that's anywhere from 20 to 80 years away, we need to talk about having that death benefit increased (over time)," says Butler.
A $500,000 death benefit may seem enormous today, but 30 years down the road, it will only be worth approximately $200,500 after adjusting for inflation. With inflation increasing approximately 3% each year, time alone can severely erode your life insurance policy even if you never miss a payment. While some policies automatically adjust to keep pace with inflation, some companies sell that feature as an additional rider. Before signing onto a policy, Butler advises shoppers to ask their life insurance agent if the policy automatically factors in inflation and allows them to buy more insurance later on if necessary.
What Happens if I Can't Pay the Premium?
If you run into financial trouble, knowing your options is invaluable. Butler says term policyholders who can't pay their premiums typically have a 60- to 90-day grace period to come up with the money, but permanent policyholders have more options.
"(Permanent policyholders) can take an 'automatic premium loan' and borrow against the cash value of the policy to pay the premiums," she says. "If you're going to borrow against the cash value, you'll want to ask what the loan rate is, and those are usually anywhere between 5 (percent) and 8%."
The added bonus of borrowing against your policy is you don't have to pay it back, but you should understand how borrowing against a cash value policy could affect your future returns and death benefit.
What Happens as I Age?
Your fiscal needs will change as you age. The terms and conditions of your policy might as well. While most term policies will eventually allow you to convert to a permanent policy, Sherman says you may not want to do so.
"Usually you have to convert by age 70," Sherman says. "For people in their later years, it's very, very expensive. For example, if I'm a 45-year-old and I buy a term policy for $1 million, that could cost $1,300 (per year) today. If I wanted to convert that same policy at age 65, the premium could be $15,000 a year."
To save thousands of dollars down the road, ask your life insurance agent about the future of your policy.
NOVA Insurance Group (Tel: 703.263.7800)
Chantilly, Virginia
www.south-riding-insurance.com
www.loudoun-insurance.comLabels: Allstate Life Insurance, Chantilly Life Insurance, South Riding Life Insurance
Long-Term-Care Insurance: Most Still Don't Buy In
Long-Term-Care Insurance: Most Still Don't Buy InBy Andrea Coombes (Wall Street Journal)
A growing number of people are aware they may face steep nursing-home and other long-term-care costs as they age, but few are willing to purchase long-term-care insurance, according to a new survey of California residents.
Consumers are twice as likely now, compared with 17 years ago when the survey was first fielded, to say they know that typical health-insurance plans don't pay for long-term care, according to a Field Poll of 950 adults for the California Partnership for Long-Term Care, a program of the state's Department of Health Care Services that partners with insurers to certify policies that meet specific consumer-protection requirements.
And 52% of consumers surveyed said that more than half of older Americans will need long-term care in their lifetimes -- up from 42% giving that response in the same survey six years ago.
So, more consumers are aware of the potential problem, but some are still underestimating the figures: 70% of older Americans will need some type of long-term care -- which may include help with grocery shopping, bathing, dressing, eating and other tasks -- at some point, according to the U.S. Department of Health and Human Services.
Also, consumers are gaining ground in estimating nursing-home costs. While 64% of respondents to the Field Poll still underestimate the annual cost of nursing-home care, pegging it at less than $70,000, fully 23% said that costs total "$70,000 or more," according to the survey -- an increase from 8% who provided that response in the 2005 survey.
The average annual nursing-home cost in California is more than $91,000, according the California Partnership for Long-Term Care.
Still, despite the growing awareness of long-term-care costs, about 7 million people are covered by individual long-term-care insurance nationwide, according to LIMRA, an insurance-industry research and consulting firm.
That's about 18% of the almost 40 million people over the age of 65 in the U.S., according to 2009 data from the U.S. Census Bureau. A 2004 study by the National Bureau of Economic Research found that 10% of people aged 65 or over have purchased long-term-care insurance policies.
Too costly, and uncertain
The most-often-cited obstacle to purchasing long-term-care insurance? The cost. Fifty-nine percent of respondents said long-term-care policies cost too much, 55% said they haven't thought about it and 32% said their family assets and income will cover the cost.
"People are saying, 'I know I need to do something. I really don't have the money for this,' " said Brenda Bufford, director of the California Partnership for Long-Term Care. "We're saying start planning for it."
Another 29% of survey respondents said they have not bought a policy because insurance companies can't be trusted to cover the costs incurred.
Certainly, fears that an insurance company may go out of business, and worries about premium hikes, keep people from buying policies -- and those fears are justified by past experience.
"There have been a lot of concerns," said Katy Votava, president of Goodcare.com, a consulting firm that works with financial advisers and their clients to help them save money on health-care costs. "Will the coverage be there -- will the company be there for me -- when I need it? About 10 years ago, we had a lot of market consolidation."
Even in the past year or so, Votava said, some companies have exited their long-term-care business or raised rates.
Generally, if a company leaves the business, another company buys those policies, but that may pave the way for premium hikes. To find out more about a particular company, check out your state's insurance-department website, Bufford said.
Also, Votava said, insurers now sell hybrid products -- such as an annuity or life-insurance policy with a long-term-care rider -- that might be more palatable to consumers. If you never need the long-term-care benefits, she said, you still can tap the value of the annuity or life insurance.
As for price being a barrier to many potential buyers, "if you buy long-term-care insurance and need it, it's going to be a bargain," she said, "but if you never use it you're going to feel it was expensive." The policies that Votava said she recommends usually cost about $3,000 to $4,000 a year.
-Andrea Coombes; 415-439-6400; AskNewswires@dowjones.com
For all your Long Term Care, as well as Auto, Property, Business and Life Insurance needs, please call NOVA Insurance Group at tel. 703.263.7800
http://www.allstateagencies.com/ku/WelcomeLabels: Long-term-care Insurance in Chantilly, Long-term-care Insurance in Loudoun County, Long-term-care Insurance in South Riding
As Homeowners Dive Into Pool Of Flood Insurance, Caveats Abound
As Homeowners Dive Into Pool Of Flood Insurance, Caveats AboundBy ANNAMARIA ANDRIOTIS
The recent weeks of tropical storms and other wet weather have pushed a new wave of homeowners into the market for flood insurance. What they are finding, however, are policies better suited to Tampa, Fla., than Teaneck, N.J.
Insurance companies have reported a surge of demand for flood insurance in the wake of storms Irene and Lee, even in landlocked states like Pennsylvania and Vermont, which both suffered flooding in some areas. Chubb Corp. says inquiries about and applications for its flood policies are up about 30% since late August, compared with the same period a year ago. Farmers Insurance Group of Cos. says its sales of federal flood insurance rose as much as 38% from July to August in some Northeastern states, and some independent insurance agents in the Northeast say that since Hurricane Irene in particular, up to 10% of clients have inquired about or applied for flood insurance.
But basic flood policies, most commonly provided by the National Flood Insurance Program and sold through private companies, cover damage starting on a home's first, above-ground floor, with limited coverage for basements. That usually is adequate in the Gulf Coast region, where houses don't tend to have below-ground levels. But it is less so in the rest of the country, where those features are common, says John Prible, vice president for federal government affairs at the Independent Insurance Agents and Brokers of America, an industry group. Federal flood policies will pay to replace specific items in a flooded basement, including hot water heaters, furnaces or other mechanical equipment, but ruined carpeting, furniture and fixtures would be excluded.
For many homeowners in the Northeast, the limits of coverage may not be enough. The federal flood program will cover up to $250,000 to rebuild a home and $100,000 in contents. That may suffice in New Orleans, says Scott Simmonds, an insurance consultant in Saco, Maine, but it falls short in Boston or New York, where materials and labor costs are higher.
To have full coverage, then, homeowners in the Northeast could need at least three different insurance policies, Mr. Prible says: basic home insurance; additional flood insurance; and a third, supplemental flood policy that would cover damage to basements and cellars, and also offer higher limits.
The costs quickly add up. While they vary widely, homeowners insurance premiums averaged about $800 a year in 2010; flood insurance adds another $600 on average. Premiums for supplemental flood coverage vary widely depending on the area of the house, but in states where the risk of floods is deemed low, additional flood coverage could add another $300 to $400 for a $500,000 home with a basement, according to Fireman's Fund Insurance Co., a subsidiary of Allianz SE.
As pricey as the coverage can be, and as rare as storms are, few homeowners hold on to flood insurance for long. Typically, demand spikes after extensive flooding, but homeowners usually let policies lapse within two to four years, according to a recent study by the Wharton Center for Risk Management and Decision Processes.
For questions about Flood, as well as Auto, Home, Business or Life Insurance, Please call NOVA Insurance Group, located in Chantilly, VA at tel. 703.263.7800.
http://www.south-riding-insurance.com
http://www.loudoun-insurance.com
Labels: Allstate Chantilly, Allstate South Riding, Flood Insurance in Chantilly, Flood Insurance in Loudoun County, Flood Insurance in South Riding
