The Property Insurance Blog

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.

A survey conducted by Liberty Mutual and the Internation Association of Fire Fighters of revealed interesting results about fire safety in America. Although most respondents were concerned about home fires, many are negligent and lack awareness and education in such situations. It was found that 90 percent of Americans had a basic understanding of the importance of fire safety measures, 7 million have no smoke alarm, 37 million have no fire extinguisher, and 50 million Americans do not have a fire escape plan. Risky behaviors are also common: 26 percent reported leaving food that was cooking unattended, 16 percent said they have disabled the smoke alarm while cooking, 32 percent reported having holiday lights on when they were not home; and 12 percent said they have left candles burning unattended. Many other misconceptions were brought to light by the survey, showing the need for a better understanding of the causes of fire and what can be done to prevent it.

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The Texas Windstorm Insurance Association (TWIA) is a pool of property and casualty insurers in Texas. It was established in 1971, after Hurricane Celia forced insurance companies in the region to cease writing business. Its goal is to give Texans wind and hail coverage when it is unavailable in the marketplace and to pay claims in case of losses. It is therefore the provider of “last resort”, not a for-profit company or a state organization. TWIA runs agent workshops from April to June that are approved for continuing education. Learn more about the TWIA and visit their informative FAQs section on their website at www.twia.org.

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.

With casualties from the magnitude 7.9 earthquake in Sichuan, China continuing to rise, the reported 99% probability of a magnitude 6.7 or greater earthquake in California within the next 30 years is cause for preparation. These earthquake forecasts, called Uniform California Earthquake Rupture Forecasts, or UCERF, are sponsored by various bodies such as the U.S. Geological Survey, the California Geological Survey, and the Southern California Earthquake Center. The southern San Andreas fault is being eyed as most likely to generate a strong quake magnitude 6.7 or greater on the Richter scale. As scientists predict a 46% chance of a quake with magnitude 7.5 or higher in the same timeframe, most likely in Southern California, planners, officials and citizens can start working on safety precautions before the next big one hits the state.

A white paper from risk and financial management firm Towers Perrin released soon after the disaster predicted a number of outcomes. These included the rise of insurance prices in catastrophe-prone areas, effects on the reinsurance market, the pressure on insurance companies to raise capitalization, and new insurers being repelled from entering the market. Aside from these, there is an even greater impact on society in general: the need for better preparedness, planning and response to such large-scale risks. Another point raised in the paper highlighted the contentious separation of wind and flood damages, and the complex issue of mold growth. These factors do not only matter in the billions of dollars lost from Hurricane Katrina but also define the future of policy.

More than two years after Hurricane Katrina, its effects are still very much visible. The impact of the disaster on the insurance industry has likewise been unprecedented. In an online interview with Carolyn Gorman of the Insurance Information Institute, she mentioned that this was the “worst natural disaster” the industry has had to face. Ms. Gorman enumerated three common mistakes made by homeowners: not getting flood insurance, not insuring a house to its full value and not having a home inventory. With 60 percent of U.S. homes underinsured because of renovations which the insurance companies were not alerted of, many homeowners do not have enough insurance for rebuilding.

Image by Bart & Jill

For everyone’s awareness, let me emphasize that there is no law that requires homeowners to apply for an insurance policy program. In contrast to this, if a homeowner borrows money from a banking or loan company to buy a house, the lending company will need to take a particular deed of trust or mortgage to be able to protect its interests that will stretch up to the day where the loan has been fully repaid. This certain mortgage will require homeowners to have an adequate amount of insurance to cover the reconstruction or repair of the house that was bought.

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.

When we speak of great property insurance policies under a local and independent group of insurance agents, the Cypress Property and Casualty Insurance Company comes to the scene. Residents of Florida State depend on the reliable coverage of property insurance of the Cypress Property and Casualty Insurance Company. This company has built the trust of thousands of local residents. It has received an ‘A’ in the Financial Stability Rating provided by Demotech. Inc. and it is very well relied upon by thousands of agents and policyholders. If you are from the State of Florida and you are looking for the company that is trusty and has served a lot of people, try considering Cypress Property and Casualty Insurance Company.