Home Insurance Information

Fire can have devastating effects on all it touches and this element is a leading cause for accidental deaths in the nation. Taking fires seriously and making all attempts to fireproof your home is the only logical decision, and being proactive in fire prevention certainly helps.

Fire Prevention Steps

Whether a fire is started intentionally (i.e. fireplace, gas stove), or by accident (i.e. electrical or wildfire), they move quickly and cannot be easily controlled. To help minimize your risk of falling victim to an inferno:

• Keep It Clean: Heed this warning as paper, garbage, paint cans, batteries and other fire-bait will only feed the flames and may actually spontaneously explode. Too much junk is also a safety hazard when fires occur.
• Frayed So: Electrical fires cause “67,800 fires, 485 deaths, and $868 million in property losses” annually. Toss out old, frayed extension cords, archaic electrical devices, do not overload outlets and avoid making an electrical “octopus.” Old and faulty wiring throughout your home can also cause problems. If your home is 25 years or older have a professional electrician double-check your wiring.
• Cooking: Annually, kitchen fires are responsible for over 156,000 blazes, and cooking causes 90% of those scenarios. Keeping the area around your stove clear and clean, turning pot handles inward, not leaving cooking food unattended and wearing appropriate clothing for cooking (no fringe please) will give you more control of the situation.
• Clear Brush: Just because you fireproof your home does not mean you are safe. Wildfires spread quickly and by keeping the property around your house clear of brush, dead leaves and debris, a wayward spark may simply burn out instead of igniting a flame.
• Space Heaters: Space heaters are an affordable way to keep warm, but extra safety precautions are needed as they can be dangerous. The devices need space and should be at least three feet away from flammable material like curtains and mattresses.

Additional Fire Safety Tips

Of course fireproofing your home is only one part of the fire safety equation. Additionally, make sure that you have:

• Homeowner’s Insurance and Fire Insurance: Financial protection in the form of an insurance policy is a must for rebuilding your life after a fire. A policy providing compensation to rebuild your home, replace personal possessions and funds for temporary housing are a must.
• Install Smoke Detectors: Where there is smoke, there is fire, but those in a deep slumber would never know it. A working smoke alarm is the best device for early fire detection.
• Fire Extinguishers: Even though you may see flames, never use water to put them out as the source may be electrical. A fire extinguisher in the kitchen and others around your home can be a lifesaver, just make sure to check them annually.
• Don’t Play with Fire: Matches and lighters should be stored in a safe place away from heat sources and children, candles should never be left unattended and make sure to unplug that curling iron before leaving your home. Smokers need to be especially careful of their vice as it is thenumber one cause of home fire related deaths.
• Emergency Plan: Plotting an escape route, meet up point and plan of action can help you and yours increase your chances of survival.

Although there are construction techniques and materials to build fireproof homes, not everyone has that option. By taking the time to fireproof your home, you will channel your inner Smokey the Bear an increase your odds of avoiding a catastrophe.

The intent of homeowners insurance is a form of protection of your dwelling and personal items from total disaster and loss. Anyone who has ever gotten a mortgage knows that presenting proof of homeowners insurance is one the requirements at closing. The borrower is at the very least required to purchase insurance for the value of the mortgage loan.

Nevertheless, you cannot make a decision as to how much homeowners insurance you are going to need simply based on the amount of the mortgage. You are going to need insurance that is adequate enough to protect you, your family and your possessions.

Should your home be totally destroyed, you are going to have to rebuild it or get a comparable home. Your insurance should provide enough coverage so that you will be able to replace your current home with a comparable home if something should happen to it. According to the Insurance Institute, you should find out the average cost per square foot to build a house in the area where you live, then multiply the cost by the square footage of your current dwelling. You now have an estimate of the minimum insurance you are going to need on your home.

However, if something calamitous should happen to your house, it is likely that you will lose all your personal belongings. In these trying times, there are not too many ordinary people who have enough cash in their bank accounts to be able to go out and buy new items to replace what was lost. You need to decide whether you want insurance that will pay you the actual value of the item (depreciation is taken into account), or whether you want replacement cost insurance. Replacement cost insurance is more expensive, but it comes with the peace of mind of knowing everything can be replaced if it should be lost. You would have to decide whether paying extra is worth it or if you can deal with getting actual value.

If you have luxury items, standard homeowners insurance policies come with limits as to how much will be paid out for things considered high-end. These items include fur coats, collections, jewelry or anything else that is unique and expensive. In this case, you might want to consider purchasing endorsement or floater insurance that covers those unique and nearly irreplaceable items.

Once you have taken everything into account, you will have a good idea of how much insurance you are going to need to fully cover yourself from calamitous events. You can call an insurance company and they will more than likely come out, make an inspection and give you an estimate on homeowners insurance. Since you have already taken the time out to make a determination, you will know whether the insurance company is being ethical with you.

If you feel they are offering too little or too much, you can always contact another insurance company. You will have the advantage of already knowing how much insurance you need. It is good practice to get several estimates anyway, so that you do not end up with too little or too much insurance.

A number of homeowners are suing insurance companies over inadequate Chinese drywall claims.

The drywall issues, which were found nation-wide, resulted in corroded plumbing and sick home dwellers. While thousands of homeowners are known to have been affected by the defective drywall, so far over 700 homeowners have filed a federal lawsuit, seeking indemnification for their losses.

About the Lawsuit

A New York-based law firm, Anderson Kill & Olick, P.C., is representing homeowners who feel that they’ve been mistreated by their insurance companies. According to the complaint, the plaintiffs seek “a declaratory judgment that the insurance companies and the subcontractor insurance companies are obligated to indemnify the losses arising from claims against WCI Communities Inc. and certain of its subsidiaries for the development and sale of homes allegedly containing defective Chinese manufactured drywall.”

WCI Communities Inc. is one of the companies that contracted to build homes and residential communities in states affected by the drywall, including Florida, New York, New Jersey, Virginia, Connecticut and Maryland.

Complaints in the Case

Complaints in the case, according to the lawsuit, include:

• Increased rates of corrosion of soft metal materials throughout the houses.
• Various health issues arising from the drywall.
• Tarnishing silver and soft metal within the homes.

The plaintiffs in the case are seeking damages in an amount to be determined at trial, as well as pre- and post-judgment interest, attorney’s fees, costs and other relief that the court deems proper.

Have You Been Affected by Chinese Drywall?

If you live in a home or condominium that was built after 2000, it’s a good idea to contact that Chinese Drywall Complaint Center for more information. A warning sign that the center lists if having black copper or discolored wiring combined with:

• Severe upper respiratory issues
• Nose bleeds
• Headaches

If you have been affected by any of these issues, it’s time to connect with the center to determine whether this drywall is in your home.

Have you filed claims over inadequate drywall? How did your insurance company handle it?

As FEMA continues to update its flood maps nationwide, it seems that some Southern California residents will now be affected.

According to recent reports, tens of thousands of residents in the area will be forced to purchase flood insurance because their areas are now viewed as risky.

FEMA’s Informing Homeowners

According to the Associated Press, the Federal Emergency Management Agency (FEMA) has informed homeowners in over 150 cities and unincorporated areas in Southern California that they must now purchase flood insurance since their homes are located in the new map’s flood zones. This could be a problem for many who had no idea of the new flood map or that they would be required to suddenly add a new insurance bill to their budgets.

Costs for the Flood Insurance Premiums

On average, flood insurance premiums can run anywhere from $500 to $1,700 a year. According to the report, some property owners have already started paying their flood insurance premiums. Others are expected to have to start early in 2010.

But everyone isn’t just accepting the new flood insurance requirements. Many have discovered that floods are not covered in standard homeowners insurance policies and therefore must be purchased separately. It’s for this reason that some homeowners in the area have reportedly started fighting the map designations to exclude themselves purchasing coverage.

If you’re a homeowner living in California, have you been requested to buy flood insurance for your home?

Many people are buying homeowner’s insurance (HOI). They buy this not because it is required by the lenders but also to protect themselves to the cost of damages brought about by the different hazards in life. Aside from that, this also helps them pay for any injuries that their homes has caused to other people, may be as guests or not. This kind of insurance is very important for this matter because the damage can be very expensive to pay out of pocket. With the help of insurance, the homeowner’s burden will be lightened a bit because all they would have to pay is the deductible (which is a fixed amount) and any excess of the full amount covered by the insurance.

However, some people are very disappointed with their homeowner’s insurance. They feel that it is not enough. And they sometimes discover this too late. Some have experienced being so shocked only to be denied of their claim because the kind of damage occurred is not within the policy. This can be very frustrating; especially you do not have enough money to cover for the amount. Hence, many homeowners are left with the question if their HOI is enough.

Determining what is enough

Your insurance can be enough if it can cover all the possible damages that could take place within your property. To know this, you need to know by heart the conditions listed in your policy. This is the only way you can identify if you are properly covered. You need to look into the following things:

1. How the cost will be calculated? Will it be based on replacement cost or actual cash value? If it is actual cash, shift to a policy with guaranteed replacement cost especially if you have antique houses.
   
   
2. Analyze the policy and check if there is coverage for cost of living and loss of personal stuff.
   
   Coverage for cost of living will pay for the accommodation you have obtained while waiting the house to be rebuilt or repaired. This only pays for a percentage of your insurance. On the other hand, lost of personal possessions will pay for both your stuff and valuables that has been damaged or stolen.
   
   
3. Understand the liability insurance. Most liability insurance has a standard coverage of $100,000. However, if your homes have had several histories of accidents, you can increase your coverage up to $1,000,000. But if you are so sure that your house is safe, you can settle for the basic.
   
   But you also have to consider your funds. You also have to get the best of what your money could afford.
   

Therefore, it is important that you know your policy by heart. You must also pay attention to the natural disasters that are common in the area. If your basic HOI covers for this then good for you. At least you do not have to spend for the additional coverage. However, if not, you really have to prepare yourself for it. For sure, having the insurance is worth it.

Mortgage insurers saw a leap in demand after the National Association of Realtors (NAR) released a report on Tuesday, Dec. 22. The report released better-than-expected home sales and increased hope that the sector wouldn’t suffer as heavy a loss as once thought from millions of defaults and foreclosures.

What is Mortgage Insurance?

Some may equate mortgage insurance with homeowners insurance, but they are not one in the same. While homeowners insurance protects the financial wellbeing of your home in the event that it succumbs to damage, mortgage insurance helps homebuyers who don’t have enough money to pay for the traditional 20-percent down payment.

The insurance is usually only required if the down payment is less than 20 percent of the sales price. Once the principal is reduced to 80 percent of the value, mortgage insurance is usually no longer required. However, in some cases, the mortgagor will default on the loan before reaching the 80 percent principal, which means the mortgage insurance company will be responsible for paying the claim.

How the Report Affects Mortgage Insurance

The report released by the NAR last week showed that home re-sales rose 7.4 percent in November. This number more than doubled the 3.3 percent increase economists expected. This is good news for mortgage insurance because it could mean that homeowners are in a position to buy homes again and, while they may need insurance, won’t default on their loans, which would require the insurers to pay out.

Mortgage insurers have already lost a significant amount with having to pay out claims due to the surge in foreclosures over the past year.