The Property Insurance Blog

Almost everybody is feeling the economic crunch these days. We can no longer afford to be frivolous, and any savings, however small, should be undertaken. One way to save money is to lower your insurance premiums. You can do this by “bundling” your policies through a single company. Bundling is purchasing your homeowner’s policy and car insurance coverage from the same insurance company. Many insurance companies will offer discounts to policyholders to opt to bundle. In fact, recent studies have shown that more than 70 % of property owners have bundled their insurance. Aside from the savings, the convenience of paying just one monthly bill for your insurance is another advantage as well. Policyholders who bundle are also more likely to be happy with their provider and often establish a long-term relationship with the insurance company. To find out more about the savings you can get, you’ll need to shop around with different insurance companies, to find out which of them can offer the best “package” for your needs.

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Insurance fraud is any act committed with the intent to fraudulently obtain payment from an insurer.

Insurance fraud can be classified as either hard fraud or soft fraud.

Hard fraud occurs when someone deliberately plans or invents a loss, such as a collision, auto theft, or fire that is covered by their insurance policy in order to receive payment for damages. Criminal rings are sometimes involved in hard fraud schemes that can steal millions of dollars.

Soft fraud, which is far more common than hard fraud, is sometimes also referred to as opportunistic fraud. This type of fraud consists of policyholders exaggerating otherwise legitimate claims. For example, when involved in a collision an insured person might claim more damage than was really done to his or her car. Soft fraud can also occur when, while obtaining a new insurance policy, an individual misreports previous or existing conditions in order to obtain a lower premium on their insurance policy.

How stable is your property insurance company? Financial strength is perhaps the top criterion when it comes to choosing an insurance company, as the ability to pay claims and obligations depends on this. As a property owner, it is your duty to find out an insurance company’s performance even before signing up for a policy. Nothing says reliability better than Standard & Poor’s financial strength ratings.  S&P issues reports and ratings on financial institutions, including thousands of insurance companies worldwide. Standard & Poor’s Security Circle Icons are your assurance that an insurer has voluntarily underwent S&P review and has one of the top four ratings. When buying insurance, look for the circle.

Condominium insurance has five coverage areas. Dwelling coverage refers to the interior structure, including paneling and wallpaper. Personal property insurance is separate. Add jewelry, antiques, collectibles and art to the coverage amount. As some items depreciate, the replacement value is higher than the actual cash value. Loss of use coverage is for expenses in case you need to move out of the condo because of damage. Personal liability coverage is for medical and legal costs for bodily injuries or property damage on others while on your property. Medical coverage is for injuries sustained on your property, regardless of your legal responsibility for the injury. No “Fault” Insurance is for natural disaster not covered by standard condominium insurance: earthquakes, floods, and hurricanes. There is rarely any insurance coverage for damages caused by pets, pests, termites, and rodents, or for war and nuclear accidents.

Insurance schemes for condo owners are different from regular homeowners. This is because the condominium association usually has insurance to cover common areas such as building exterior and walkways. Condo owners still have to protect themselves from losses and damage. The condo owners’ insurance policy includes insurance for their units. Before purchasing one, find out the association’s coverage, which parts of the building are not insured. Ask if you need flood insurance, what protection you have against liability claims, what medical expenses are covered if guests are accidentally injured on your premises, what additional insurance you need for valuables, and if additional living expenses can be reimbursed if the unit is not livable for any reason.

According to a fact sheet from the Insurance Information Institute, a number of studies show that Americans are underinsured against natural disasters. Millions of homeowners are said to have inadequate cover. Here are a number of statistics from the RAND Corporation, the Chubb Group of Insurance Companies, and the Mason Dixon poll:

Only 14 percent of the nation has flood insurance.

Only half of the most vulnerable homes have flood insurance.

One third of American homeowners have not reviewed their homeowner’s insurance policy in more than three years.

Half of all American homeowners incorrectly believe they are automatically covered against flood.

Only 20 to 30 percent of flood-vulnerable homes in the Northeast and Midwest purchased the required insurance.

One quarter of NFIP claims paid originate from non-Special Flood Hazard Areas, but only one percent of non-flood zone homes are covered despite risk.

Even after the destruction caused by Hurricane Katrina, flood insurance has not increased considerably. This is alarming, as more and more people have moved to coastal counties over the past three decades. The good news is that the additional flood insurance is well within the reach of most homeowners.

For your property insurance needs, you may refer to InsureMe. InsureMe helps people like you in looking for the top notch insurance policies with competitive rates. InsureMe offers aid to people free of charge. InsureMe has been around in the insurance industry since the year 1993. This just shows that InsureMe has been one of the companies that have already helped over millions of people in saving money, effort and time on insurance policies. InsureMe also provides services beyond insurance. InsureMe has built orphanages in various locations such as Ghana. Homes were also built in Mexico, thanks to InsureMe. InsureMe has also donated sufficient amounts to different organizations in Denver.