This article appeared on the Ca Dept. of Insurance Website.
 OVERVIEW
Flooding is the nation’s number one natural disaster. While floods occur in every area of the country, many property owners remain unprepared. The National Flood Insurance Program (NFIP) is a Federal program enabling property owners in participating communities to purchase insurance as a protection against flood losses. Participating in the NFIP is based on an agreement between communities and the Federal Government. The program is administered by the Federal Emergency Management Agency (FEMA) and provides flood insurance protection to property owners, renters, and business owners in communities that participate in the program.
HOW FLOOD INSURANCE WORKS
As long as a community participates in the NFIP, residents are eligible to purchase flood insurance. Flood insurance is sold to property owners through two mechanisms: 1) through state licensed property and casualty insurance agents and brokers who deal directly with FEMA; and 2) private insurance companies through a program created in 1983 known as “Write Your Own”.
Consumers should talk to their insurance agent if they have questions, would like additional information and/or are ready to purchase a flood insurance policy. The policy will take effect 30 days after it is purchased. However, if you buy a house in a designated high-risk area and receive a mortgage loan from a Federally regulated lender, by law, the lender must require the borrower to purchase and regularly renew flood insurance. In this case, the policy will take effect immediately and the borrower does not have to wait 30 days.
FLOOD INSURANCE COVERAGE
In general, coverage is provided for direct physical loss to the property from a flood which is described as:
A general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more properties (at least one of which is your property) from:
a. Overflow of inland or tidal waters
b. Unusual and rapid accumulation or runoff of surface waters from any source
c. Mudflow – defined as a river of liquid and flowing mud on the surfaces of normally dry land areas such as when earth is carried by a current of water. Landslide, slope failures, or saturated soil moving down a slope are not mudflows.
In general, the policy excludes losses caused by:
Earth movement, even if the earth movement is caused by flood. Examples of excluded earth movement include:
- Earthquake;
- Landslide;
- Land subsidence;
- Sinkholes;
- Destabilization or movement of land resulting from accumulation of water;
- Gradual erosion;
The maximum limits available are:
Residential – $250,000 for the structure and $100,000 for the personal property
Commercial- $500,000 for the structure and $500,000 for the contents
The California Department of Insurance does not regulate the National Flood Insurance Program. However, consumers may obtain more information through the FEMA at 1-800-638-6620 or at the National Flood Insurance Program web site.
More Flood Insurance Information by calling me at 916-797-4454
 Tumbling house prices may have you wondering whether homeowners’ insurance premiums will fall too.
Fair question. But the answer is not as straightforward as you might think. Although median house prices in the US are down around 7% year on year, don’t expect to be able to cut your premiums by the same amount.
For a start, your homeowners’ policy covers a lot more than your structure. It probably also covers contents – and the value of those is more likely to have gone up than down – and third party liability.
But the most critical factor in evaluating your cover is that the buildings element of your policy should not be based purely on the market value of your home but more importantly on the cost of reconstructing it.
Although these are hard times for builders, there’s no real evidence that construction costs have fallen. In fact, industry experts reckon that as many as two thirds of American homes may be undervalued for rebuilding purposes.
That means, it makes sense, one way or the other, to regularly check that your homeowners’ policy accurately reflects the cost of rebuilding it. There are several ways:
• Many insurers keep records on rebuilding costs and automatically adjust policies to reflect changes.
• Talk to your agent. Insurance agents have their finger on the pulse and know how to get the information you need.
• There are a number of online calculators which claim to be able to produce accurate figures. If you use these, you’re best to crosscheck between several. Beware: some of them charge for the service.
• You can ask a builder to do a walk-through with you and estimate the reconstruction cost.
• You can pay an appraiser to do a full inspection.
Bottom line: lower real estate values are unlikely to offer much opportunity to cut your homeowners’ premium, though there are other ways to tackle this, such as agreeing to pay a higher deductible or using the same insurer for auto as well as property cover.
If you are looking to save money on your home and auto Insurance in California, you should contact Placer Insurance Agency in Roseville CA. They are one of the largest independent Insurance Agencies in California. They provide both Personal and Commercial Insurance in addition to Life and Health Insurance. If you call for a Home or Auto quote talk to Stephen Makis. He has helped many Homeowner’s take advantage of as many discounts as possible. If you put your Home and Auto with the same carrier you could save an average of 20% on each. Contact Placer Insurance today!
Placer Insurance Agency
www.placerins.com
916-784-1008
11am EST, January 13, 2010 – The Caribbean Catastrophe Risk Insurance Facility (CCRIF) is preparing to make a payout to the Government of Haiti as a result of the Magnitude 7.0 earthquake which struck close to Port-au-Prince, Haiti yesterday. Haiti has an earthquake policy with CCRIF as part of the country’s disaster risk management strategy. The recent earthquake was of sufficient magnitude to trigger the full policy limit for the earthquake coverage, effecting payment after a 14-day waiting period. Based on calculations from the preliminary earthquake location and magnitude data, Haiti will receive just under US$8M – approximately 20 times their premium for earthquake coverage of US$385,500.
Parametric catastrophe coverage is only one way in which the Facility is assisting the Caribbean region to become disaster resilient. CCRIF works with partner organisations such as the Caribbean Institute for Meteorology and Hydrology (CIMH) and the Caribbean Disaster and Emergency Management Agency (CDEMA) to provide data and other technical assistance for better planning for, response to, and recovery from natural catastrophes. CIMH is currently running detailed weather forecast models over Haiti to identify those watersheds that may receive heavy rainfall and would be prone to flooding, in particular flash flooding. This will address the probability of landslides and flooding in the areas that have been affected by the earthquake and will facilitate proactive action.
CCRIF is hopeful that the rapid payment of funds under Haiti’s policy will assist the Government and people of Haiti in addressing immediate needs as they begin the recovery and rebuilding process. The sympathies of all of the Board and operational team at CCRIF are with the people of Haiti at this time.
About CCRIF: CCRIF is a risk pooling facility, owned, operated and registered in the Caribbean for Caribbean governments. It is designed to limit the financial impact of catastrophic hurricanes and earthquakes to Caribbean governments by quickly providing short term liquidity when a policy is triggered. It is the world’s first and, to date, only regional fund utilising parametric insurance, giving Caribbean governments the unique opportunity to purchase earthquake and hurricane catastrophe coverage with lowest-possible pricing. CCRIF represents a paradigm shift in the way governments treat risk, with Caribbean governments leading the way in pre-disaster planning.
Sixteen governments are members of the fund: Anguilla, Antigua & Barbuda, Bahamas, Barbados, Belize, Bermuda, Cayman Islands, Dominica, Grenada, Haiti, Jamaica, St. Kitts & Nevis, St. Lucia, St. Vincent & the Grenadines, Trinidad & Tobago and the Turks and Caicos Islands. In 2007, CCRIF paid out almost $1 Million to the Dominican and St Lucian governments after the November 29, 2007 earthquake in the eastern Caribbean, and in 2008, CCRIF paid out $6.3 Million to the Turks & Caicos Islands after Hurricane Ike made a direct hit on Grand Turk.
Ice, snow and wind can have devastating consequences on your home. The time to winterize is when the leaves begin to turn and not when the snow begins to fall.
Homeowners should take the following precautions:
Maintain Gutters
Remove leaves, acorns, sticks and other debris from gutters so melting snow and ice can flow freely. This can prevent “ice damming”–a condition where water is unable to properly drain through the gutters and instead seeps into the house causing water to drip from the ceiling and walls. You may also consider installing gutter guards. Available in most hardware and home stores, gutter guards are screens that prevent debris from entering the gutter and direct the flow of water away from the house and into the ground.
Trim Trees and Remove Dead Branches
Ice, snow and wind can cause weak trees or branches to break, damaging your home, car or injuring someone walking on your property.
Check Insulation
Add extra insulation to attics, basements and crawl spaces. If too much heat escapes through the attic it can cause snow or ice to melt on the roof. The water re-freezes causing more snow and ice to build up. This can result in a collapsed roof, and can contribute to ice damming. Ideally, the attic should be five to ten degrees warmer than the outside air. Well-insulated basements and crawl spaces will also help protect pipes from freezing.
Maintain Pipes
Wrap pipes with heating tape and insulate unfinished rooms such as garages that frequently have exposed pipes. Also, check for cracks and leaks. Have minor pipe damage fixed immediately to prevent much costlier repairs in the future.
Keep the House Warm
The temperature in your house should be at least 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 pipes from freezing.
Check Heating Systems
The proper use and maintenance of furnaces, fireplaces and wood-burning stoves can prevent fire and smoke damage. Have furnaces, boilers and chimneys serviced at least once a year. Make sure that smoke and fire alarms are working properly and consider installing a carbon dioxide detector.
Maintain Steps and Handrails
Broken stairs and banisters can become lethal when covered with snow and ice. Make repairs now to prevent someone from falling and seriously being injured.
Get To Know Your Plumbing
Learn how to shut the water off and know where your pipes are located. If your pipes freeze, time is of the essence. The quicker you can shut off the water or direct your plumber to the problem, the better chance you have to prevent the pipes from bursting.
Hire A Licensed Contractor
Have a professional survey your home for any structural damage. If damage is discovered, have it repaired immediately so further damage will not occur during the winter. Also, find out about ways to prevent water damage due to snow-related flooding. Plastic coatings for internal basement walls, sump-pumps and other methods can prevent damage to your home and belongings.
Plan For Being Away
If you are not going to be in your home this winter for an extended period of time, have the water system drained by a professional to keep pipes from freezing or bursting. Also, have someone check on your home on a regular basis. If there is a problem, it can be fixed quickly, thus lessening any damage. Activity at your home will also reduce the likelihood that it will be burglarized.
Standard homeowners policies cover winter-related disasters such as burst pipes, ice dams, wind damage caused by weight of ice or snow.
Damage to homes caused by flooding is usually excluded from most standard homeowner policies. Flood insurance is available from the National Flood Insurance Program. Ask your insurance professional about flood insurance, as well as specific advice about winter-proofing your home.
An insider’s guide to making an informed choice.
It is crucial in life to make sure you have people around you whom you can count on… your family, friends, employees or co-workers, or professionals in various fields. You choose a family doctor or dentist, for example, who fits your needs and lifestyle. You hire people to work for you who understand your goals and help you reach them.
We all tend to gravitate toward the cheapest insurance, not even realizing it may be totally inadequate for our needs until it’s too late. By working with one individual to coordinate your policies, you can be sure you are adequately covered and not paying for any unnecessary coverage. An annual review is an excellent idea so you can discuss and upgrade or downgrade your insurance to meet your ever-changing needs.
The greatest advantage of working with the same person over a number of years, or even a lifetime, is that agent knows your history and is thoroughly in tune with your lifestyle and goals. Make it a priority to find an insurance agent you can count on. Then you can reap the rewards of expert and professional guidance tailored directly to you. You’ll find that having someone else service your needs certainly beats servicing your own—saving you time and money.
Remember: The bottom line is to make sure you, your family, your home and your business are always well taken care of.
Whether or not you decide to work with Stephen, he simply wants to make sure your insurance experience is the kind of service you deserve – the very best.
California Insurance Commissioner Steve Poizner today announced that Severiano Becerra, 48, of San Jose was arrested Jan. 12 in San Jose on suspicion of felony auto insurance fraud. If convicted, Becerra could face five years in prison. He is being held on $20,000 bail.
“Auto insurance fraud continues to cost residents of this state millions of dollars and rates continue to go up for drivers as we battle this crime,” Commissioner Poizner said. “But it’s a battle we will never back down from and those who commit these crimes will face justice.”
A California Department of Insurance (CDI) Urban Auto Fraud Task Force investigation alleges that on Nov. 27, 2008, Becerra drove his Dodge Dakota pickup truck into Mexico and purposefully left the vehicle in that country and returned to San Jose. On Dec. 17, 2008, Becerra reported the vehicle as stolen to the San Jose Police Department. Becerra claimed the truck was stolen the same day from a shopping center parking lot in San Jose. Becerra then filed a claim with Infinity Insurance Co. after filing the police report.
Becerra signed and dated a stolen vehicle report taken by San Jose Police. Becerra also signed and dated an affidavit of vehicle theft that was notarized by Infinity Insurance. Both forms were signed under penalty of perjury. In both reports, Becerra allegedly lied about the circumstances of how his vehicle disappeared.
Infinity Insurance Co. became suspicious of the claim and asked CDI to start its own investigation. Becerra confessed when confronted with evidence that refuted his version of events and admitted he intentionally drove his Dodge Dakota into Mexico and left it there. Becerra also provided a written confession.
The Urban Organized Automobile Fraud Insurance Task Force is made up of investigators from CDI, the California Highway Patrol and the Santa Clara County District Attorney’s Office.
Commissioner Poizner oversees 16 CDI Enforcement Branch regional offices throughout the state. Approximately 2,000 insurance fraud-related arrests have been made by the Department of Insurance’s enforcement division since Commissioner Poizner took office in 2007 – more arrests than have been made during any other two year period, under any previous insurance commissioner.
Source: MSNBC
23 Dec 2009
People who send text messages while driving are six times more likely to crash, a new study finds. The research adds to a mountain of evidence showing that texting or talking on mobile phones while driving is dangerous. Texting seems to be the worst.
The new study was done in a driving simulator, however, so it’s not known exactly how the results would translate to the road. Still, the results were stark.
In the simulations, drivers tended to decrease their minimum following distance when texting and also experienced delayed reaction times — meaning among other things they were slower to hit the brakes when needed. Drivers’ median reaction time increased by 30 percent when they were texting and 9 percent when they talked on the phone, compared with when they were just driving.
Drivers who were texting also showed impairment in forward and lateral control than did drivers who talked on a cell phone while driving or drove without texting. A study earlier this year found that 60 percent of teens “drive while texting,” or DWT.
Previous studies had found that adults who talk on cell phones while driving in simulators perform as dismally as drunken study participants.
When talking on a cell phone, “drivers apparently attempt to divide attention between a phone conversation and driving, adjusting the processing priority of the two activities depending on task demands,” the researchers behind the new study write in the journal Human Factors. That split in attention is worse than conversing with someone who is in the car, past research has found.
Texting is a whole other matter. It “requires drivers to switch their attention from one task to the other,” the researchers said in a statement today. “When such attention-switching occurs as drivers compose, read, or receive a text, their overall reaction times are substantially slower than when they’re engaged in a phone conversation.”
Reading text messages affected braking time more than did composing messages. The research was done by University of Utah psychologists Frank Drews, Dave Strayer and their colleagues. The simulations involved 20 men and 20 women between the ages of 19 and 23. The participants were described as experienced texters who had been driving an average of 4.75 years.
In January, the National Safety Council called on state and federal lawmakers to ban the use of cell phones and text-messaging devices while driving and also urged businesses to prohibit it.
 By Forbes.com
Ten autos that will sap your wallet — and 10 that won’t.
From seeking greater fuel efficiency to carpooling, some American drivers are looking for ways to save on ownership costs.
But one thing most can’t do without is car insurance. Each of the nation’s 50 states has laws that require drivers purchase liability insurance or provide enough “proof of financial responsibility” to cover a claim in case of an accident.
Premiums are dropping; the average in May was at its lowest point in a year at $1,871 per car, down from the national average of $1,982 in October, according to RateWatch, a Web site that tracks annual average insurance rates. But they continue, for most, to be a major outlay. Still, consumers worried about the bottom line have options.
The 185-horsepower, 2009 Hyundai Santa Fe costs an average of $832 a year to insure, the lowest of a list of just under 300 2009 models surveyed. The Saturn Vue costs an average of $911 a year to insure, and a Kia Sedona can be covered for an annual cost of $857.
Owners of luxury autos such as the BMW M5, the Mercedes-Benz G-Class and the Porsche 911 pay for that kind of prestige — $2,020, $2,088 and $1,819, respectively. But those who drive the $80,790 Nissan GT-R, the 2009 Motor Trend Car of the Year, pay an average $2,533 a year. The sports car’s super-charged 3.8-liter, twin-turbocharged 24-valve V6 engine helped it to the top of the list.
Behind the Numbers
Our numbers come from Insure.com, an online information clearinghouse for consumers. The company calculated nationwide average car insurance premiums for almost 300 2009 model-year vehicles. Averages are based on a 40-year-old male driver who commutes 12 miles to work. This driver has policy limits of $100,000 for injury liability for one person; $300,000 for all injuries and $50,000 for property damage in an accident; and a $500 deductible on collision and comprehensive. This policy also includes uninsured motorist coverage. Rates were averaged across multiple ZIP codes and insurance companies.
Nissan GT-R
From seeking greater fuel efficiency to carpooling, some American drivers are looking for ways to save on ownership costs.
But one thing most can’t do without is car insurance. Each of the nation’s 50 states has laws that require drivers purchase liability insurance or provide enough “proof of financial responsibility” to cover a claim in case of an accident.
Of course, a car’s value will jack up a driver’s outlay, as will the driving record of the person behind the wheel, says Jack Nerad, executive editorial director and market analyst for Kelley Blue Book.
Other factors can play a part too, such as potential loss. For example, the Hummer H2 was the eighth-most stolen car in America, according to the Insurance Institute for Highway Safety, which determined its list by claims per 1,000 divided by average loss payment per claim; it is also eighth-most expensive vehicle to insure on our list.
A consumer’s ability to compare is another factor. Shoppers may be most familiar with big companies with representatives located nationwide. Comparing the rates at these brand names with those found online and at independent agencies will yield the best deals. Make sure to compare limits and features side by side.
Driver stereotypes also play a role. Expensive, high-performance autos often attract “riskier” drivers, says Nerad, and such vehicles are more expensive to fix or replace when involved in accidents. Likewise, autos like sports cars that are popular with younger drivers usually have a higher premium since younger drivers are considered riskier drivers.
Larger vehicles like SUVs and minivans are more likely to be family vehicles driven by mothers, who are historically less dangerous drivers. With lower risk comes lower loss potential, and thus a lower premium. Eight of the top 10 least expensive vehicles to insure are either minivans or SUVs.
But even those with a need for speed are likely to see premiums drop slightly. And, along with premiums, insurance rates have fallen after an increase last year of 8%. Wyoming, South Dakota, Utah and Idaho experienced the largest rate decreases in May, from 9% in Wyoming to 5.5% in Idaho.
As insurers compete for increasingly discerning consumers, expect this downward trend to continue for the rest of this year.
Most Expensive Cars to Insure
No. 1 Most Expensive: Nissan GT-R
Sports car
$2,533
No. 2 Most Expensive: Dodge Viper
Sports car
$2,446
No. 3 Most Expensive: BMW M6
Sports car
$2,236
No. 4 Most Expensive: Ford Shelby GT500
Sports Car
$2,186
No. 5 Most Expensive: Mercedes-Benz G-Class
SUV
$2,088
Click here for the full list of the Most Expensive Cars to Insure.
Least Expensive Cars to Insure
No. 1 Least Expensive: Hyundai Santa Fe
SUV
$832
No. 2 Least Expensive: Kia Sportage
SUV
$840
No. 3 Least Expensive: Hyundai Entourage
Minivan
$848
No. 4 Least Expensive: Kia Sedona
Minivan
$857
No. 5 Least Expensive: Kia Rio5
Passenger
$870
Click here for the full list of the Least Expensive Cars to Insure
Our numbers come from Insure.com, an online information clearinghouse for consumers. The company calculated nationwide average car insurance premiums for almost 300 2009 model-year vehicles. Averages are based on a 40-year-old male driver who commutes 12 miles to work. This driver has policy limits of $100,000 for injury liability for one person; $300,000 for all injuries and $50,000 for property damage in an accident; and a $500 deductible on collision and comprehensive. This policy also includes uninsured motorist coverage. Rates were averaged across multiple ZIP codes and insurance companies.
Article from CNNMoney.com
Some words are red flags to insurers and using them could mean that your claim might be delayed or even denied.
1. “I Think …”
Never begin a statement regarding a claim with these words. If you aren’t sure, don’t guess. What you say could cause your claim to be delayed or denied, says attorney Vedica Puri. And if you’re wrong — say, you report driving at 30 miles per hour before an accident but police later prove you were going 50 — it could hurt your credibility.
Particularly beware of speculating on blame or causation. For example, if you suggest that a water leak is due to a construction defect, you could give the insurer an out if that’s a policy exclusion.
Stick to the facts. Should the insurance rep ask you a question you can’t answer, simply say, “I don’t know.” If the person is taking a written or recorded statement, ask for a transcript to review for misstatements.
2. “I Got Whiplash”
Fraud costs auto insurers up to $6.8 billion a year, reports the Insurance Research Council. And suing for damages caused by whiplash is a fraudster favorite (“Oh, my neck!”). Merely mentioning the term is likely to get your claim flagged for further investigation, says Amy Danise of Insure.com.
Whiplash is a specific diagnosis. If a doctor says that you have it, then you should report it as such. Other wise, if you feel neck pain, just refer to it that way.
3. “It’s an Experimental Treatment”
Truly experimental or investigational medical procedures are typically not eligible for health insurance coverage. So if a doctor tells you he wants to experiment with a treatment, don’t represent it using those words. “In medical terms it may not actually be experimental or investigational,” explains Danise. “If it’s proven effective, your doctor deems it medically necessary, and it’s not an exclusion, it should be covered.” Verify with your doctor that it meets the above litmus tests before going to the insurer.
4. “My Basement Flooded”
With homeowners insurance, “flood” is a red flag. “The word refers to an act of weather or an overflow from a nearby body of water,” says Danise. “And a standard homeowners policy doesn’t cover it. You’d need flood insurance.”
So don’t use the f-word if your basement is knee-deep in water because of a burst pipe. Damages from such an incident should be covered by a homeowners policy. But calling it a “flood” could muddy the waters, so to speak.
5. “Just Send Me a Check”
When filing a home or auto claim, don’t emphasize that you’re just looking for the cash.
“If you were to say, ‘I don’t care about the roof leak, I just need the money,’ that admission could slow things to a halt,” says Puri. Technically, you’re supposed to use the payout to make the repair for which you filed. While it’s true that most insurance companies aren’t going to check up on you, you’ll certainly raise the fraud unit’s suspicions if you imply that you won’t. And then you might lose out on the money altogether.
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OVERVIEW