Posts Tagged ‘Homeowners’
How much is homeowners insurance in IL for townhome that’s not covered by the common insurance?
February 5th, 2012
Question by ghmag: How much is homeowners insurance in IL for townhome that’s not covered by the common insurance?
I’m planning to purchase a townhome and the assessments does include common insurance. I’ve been told it doesn’t protect any misc assets I have in my home in case a disaster occurs. I want to factor this into my monthly expense estimates. I’m looking for a purchase price at $ 200,000. How much should estimate for homeowners insurance? Is it a monthly and annual payment?
Thanks
Best answer:
Answer by Sue
You need to call an insurance company for quotes, start with your auto insurance company & go from there. There are many questions, what does the master policy cover? You would need to read the condo bylaws to find out. Does that policy cover everything attached to the unit or only to the studs? Does it cover anything that you add to or alter in the unit? So, you would purchase a condo policy (HO6 form), you would need to find out from the condo association what you actually need to cover. That would be the dwelling limit you need. Then you need to tell the insurance company how much contents coverage you want (if you had to replace everything you own), then get at least $ 500,000 liability, $ 5,000 medical payments & get $ 50,000 (or the company maximum) loss assessment (this covers if you are assessed for damages to common property – simplified definition – you would need to speak to an agent to explain it to you). You would also need to tell the agent the deductible you want (property coverage).
Good luck in your purchase but no one here can give you a quote.
Homeowners insurance is always an annual policy.
Know better? Leave your own answer in the comments!
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Is hail damage covered on my homeowners insurance?
February 3rd, 2012
www.MurrayGRP.com – #33 – Hail damage is covered under a homeowners insurance policy depending on what form of homeowners insurance policy you purchased. A Broad or Special form policy will provide coverage in most cases. However, if you have a Basic or Fire Only homeowners insurance policy it is very likely you will not have coverage. It is important to always consult a professional insurance agent about your specific insurance needs. Our team of insurance professionals at The Murray Group would be happy to answer any questions you have regarding your life insurance policy. Click the link above to visit our website and learn more. ACTION: If this video provided you with any level of value Please Click the “Like” button above. www.MurrayGRP.com
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HomeownersInsurance.com Announces Ways to Save on Homeowners Insurance without …
January 30th, 2012
HomeownersInsurance.com Announces Ways to Save on Homeowners Insurance without …
Homeowners looking to cut costs can most likely save some money on homeowners insurance, but they should make sure it is not at the expense of adequate coverage. HomeownersInsurance.com agents weigh in to help homeowners stay properly insured while …
Read more on PR Web (press release)
Freddie Mac accused of betting against homeowners
Just one week after President Obama promised "no more red tape" for homeowners looking to refinance, there's news that mortgage insurance giant Freddie Mac could benefit if banks stonewall their customers. According to an investigation by NPR and …
Read more on CBS News
Lower insurance rates possible for some MFPD homeowners
Fire Chief Michael Taylor said the district has been working to lower its ISO rating, which is part of what determines homeowner's insurance for people living in the district. Previously, ratings for the Marshfield district were a 9 for those living …
Read more on Marshfield Mail
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New rules help CA homeowners with insurance
January 26th, 2012
New rules help CA homeowners with insurance
"People, so often, after they have a large loss, find out they have less insurance than they thought they had or they come up against an exclusion that they had no idea was in their policy," Amy Bach with United Policyholders said. To help homeowners …
Read more on KGO-TV
Are you covered by your homeowner's insurance?
Your home is a big investment and it's an investment you want to protect. But when was the last time you reviewed your homeowner's insurance coverage? Nearly 30 percent of respondents to a nationwide Angie's List poll said it's been two years or more …
Read more on WALA-TV FOX10
Law could push homeowners away from Citizens
A bill heading to the Florida House floor could give homeowners an alternative to state-run Citizens Insurance. But it could come at a high cost.TALLAHASSEE, Fla. – A bill heading to the Florida House floor could give homeowners an alternative to …
Read more on WWSB ABC 7
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After the disaster: Uninsured homeowners have little to fall back on
January 25th, 2012
Lori Johnston
The images of the tornadoes, floods, earthquakes, hurricanes and wildfires of 2011 remain seared in our memories. You might live in one of the areas battered by weather tragedies. Or you might have frantically checked on friends and relatives who were affected by natural disasters.
As Americans sorted through what was left of their homes in disaster-ravaged areas, many people filed insurance claims and undertook the rebuilding process. For some homeowners and renters, though, a lack of insurance added to the devastation.
In Bastrop County, Texas, for example, about 100 of the 1,600 homes damaged or destroyed in a September 2011 wildfire weren’t insured. What’s billed as the worst wildfire in Texas history caused insured losses of at least $ 325 million.
“It’s important to be able to have (insurance) to fall back on when a catastrophe strikes,” says Mark Hanna, a spokesman for the Insurance Council of Texas, a trade group.
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| About 100 of the 1,600 homes damaged or destroyed in a September 2011 wildfire in Bastrop County, Texas, weren’t insured. |
The mortgage factor
Homeowners normally are required to purchase insurance as part of the mortgage process. But some homeowners and renters don’t have the most basic coverage for what may be their biggest asset – shelter. An estimated 97 percent of homeowners have home insurance, but only 29 percent of renters have renter’s insurance, according to 2011 data from the Insurance Information Institute.
There’s a lot of awareness about home and renter’s insurance, but an “it won’t happen to me” mind-set still exists, says Tim Bowen, director of the homeowner operational team in MetLife Auto & Home’s claims department.
As home insurance premiums rise, with an increase of up to 5 percent predicted in 2012 by the Insurance Information Institute, more folks may end up opting out of coverage, if they have that choice. The average home insurance premium in 2011 was $ 956, compared with $ 536 in 2001, according to the Insurance Information Institute and National Association of Insurance Commissioners. Texas, Florida, Louisiana, Mississippi and Oklahoma are the states with the highest home insurance premiums — states that have been hit hard in recent years by hurricanes, tornadoes or wildfires.
“We’re going to see more people uninsured,” Bach says. “The prices are getting so high. People are used to paying under $ 1,000 a year for their homeowner’s insurance. I believe that is going to be thing of the past, if it isn’t already in many areas.”
‘Something’s gotta give’
For a variety of reasons, some people choose not to purchase insurance. The main reason: cost. Folks either want to avoid the premiums or simply can’t afford them. People who own their homes outright usually understand they’re taking chances by being uninsured, but they think the savings are worthwhile and the risk of a disaster is small.
Bill Sims, who’s in his late 80s, owns his home outright in Boca Raton, Fla. He decided not to renew his home insurance and flood insurance several years ago when the costs tripled to $ 3,000 and the number of items covered decreased.
He told TV station WPTV in 2011: “It was just one more item. You keep having additional expenses until, finally, something’s gotta give.”
Older homeowners may lack coverage
Not being able to afford insurance is becoming more common, says Amy Bach, executive director of United Policyholders, a nonprofit group that assists insurance consumers. Why? Bach says it’s because insurance companies think the risks of covering homeowners are greater than in the past, stemming partly from major disasters and resulting in higher rates, especially in hurricane-prone coastal areas.
Some people can afford insurance, but if they own their homes and no lender is requiring coverage, they sometimes don’t buy it. Generally speaking, the homeowners in those cases are older and have lived in their homes for years, Bach says. Or recent buyers may have paid all cash for their properties, avoiding any mandated insurance.
“It is pretty rare that you don’t have insurance and you have a mortgage, and nobody got in touch with you to remind you that you were supposed to have it,” she says.
Other situations can involve people who inherited a home that has been paid off. In less common cases, the policy may have lapsed and the homeowner isn’t aware of it. When disaster strikes, they discover that the coverage isn’t there.
It’s best to review your property insurance policy annually with your insurance agent or company to make sure everything is in place and that you don’t need to change the amount of protection, especially if you’ve expanded or remodeled your home, according to the Property Casualty Insurers Association of America.
Coverage for renters
More landlords are requiring renters to buy insurance, although a MetLife Auto & Home study found that less than half of U.S. renters still don’t have coverage. A 2010 survey by MetLife uncovered two main reasons:
• 33 percent said the insurance was too expensive.
• 23 percent said they thought they were covered by their landlord’s insurance.
“They take for granted that they’re in a building or a structure and their contents will be protected. That’s not so,” Bowen says.
A policy held by a landlord typically will cover the structure, exterior and finishes of the home, not a renter’s possessions. A typical renter’s insurance policy costs $ 200 a year or less, according to MetLife.
“It’s more, I think, an oversight than it is just trying to avoid getting it,” Bowen says.
Bouncing back from a disaster
A standard home insurance policy will cover property lost or damaged in most natural disasters, according to the Property Casualty Insurers Association of America. Floods are the big exception; flood damage is covered under separate insurance. Having coverage also means homeowners will be reimbursed for the cost of temporary housing and food if authorities order them to evacuate. The same benefits generally apply to renters who have insurance.
Without insurance, homeowners and renters must rely on friends and family, government agencies and nonprofit groups to meet their needs after a disaster. “They’ve got to start all over again,” MetLife’s Bowen says.
Another source of disaster relief is faith-based charitable organizations. In the aftermath of the Texas wildfires, groups such as the Bastrop Christian Ministerial Alliance donated money to renters who didn’t have insurance.
Other uninsured homeowners use their savings or inheritances to recover. Another option is to sell the damaged home as a distressed lot or property – unlikely to recoup much money – or to let the bank foreclose on a damaged home, which can hurt your credit. “All things considered, the best thing is to buy insurance,” Bach says.
Troy Anderson
Mold mania swept the United States a decade ago after lawsuits filed by celebrities Ed McMahon, Erin Brockovich and Michael Jordan stoked fears about “killer mold.”
Now, a new threat has emerged – a “house-eating fungus” that can devour homes in months. But the devastating fungus known as poria incrassata pales in comparison to perhaps an even bigger danger – the fact that many home insurance policies now contain caps or other coverage limits on mold and fungus claims.
In a lawsuit that some experts say could have national ramifications, Los Angeles residents Walter and Judy Moore allege that their home insurer, Seattle-based Safeco Insurance Co., acted in bad faith and engaged in unfair competition. The Moores allege that the company initially said it would cover a poria claim, but then backed out after learning it would cost hundreds of thousands of dollars to fix their 1,500-square-foot home. The two-bedroom, two-bathroom Mission Revival home was built in 1924; it sits in a quaint, upper-class neighborhood.
The couple alleges that Safeco told them a $ 10,000 coverage limit applied only to fungus cleanup costs, not to subsequent repairs, but then told them the $ 10,000 limit applied to all losses, including repairs.
A ‘huge insurance scam’?
“This is essentially a huge insurance scam we’ve uncovered where people are not getting what they are paying for,” says Judy, who managed the couple’s rental property in the south of France until they were recently forced to sell it after the fungus invasion. “I know we are not an isolated couple who have somehow had the incredibly bad luck to find out our $ 1 million home is really only insured for $ 10,000.”
Walter, a corporate trial attorney and a former Los Angeles mayoral candidate, alleges in the lawsuit that Safeco failed to disclose on its home insurance declarations, or summary, page the policy limitations for mold or fungus damage. Safeco wrote on its declarations page that the policy would pay hundreds of thousands of dollars — enough to rebuild the home — but an “Additional Property Coverage” provision states the company will pay only up to $ 10,000 for fungus damage and cleanup, Walter alleges.
The lawsuit was filed in February 2011 in Los Angeles Superior Court.
When consumers buy or renew a policy, Safeco sends them a California Residential Property Insurance Disclosure form – showing policy limits valued at hundreds of thousands of dollars. No mention is made of a $ 10,000 limit for any covered losses, Walter alleges.
“There are much broader ramifications for all consumers,” says Walter, a Georgetown University graduate and former editor of the Georgetown Law Journal. “I think if most consumers saw something on their declarations page that the policy limit could be as low as $ 10,000, they would switch insurance companies. You couldn’t replace your car for $ 10,000, much less your home.”
Safeco’s defense
Brenda Harrison, a spokeswoman for Safeco, declines to comment on the Moores’ suit. Safeco is a subsidiary of Liberty Mutual, a Fortune 100 company that’s the country’s fifth-largest property and casualty insurer.
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| Judy Moore stands in the under-repair home she shares with husband Walter. Judy says they’re victims of a “huge insurance scam.” |
Jeffrey Crowe, an attorney for Safeco, explained in court documents that the company investigated this “unusual” case and learned water had entered the house through a vent pipe on the roof that was cut during an earlier remodeling project. This allowed rain to seep behind the walls, permitting the wood-decaying fungus to grow. Safeco later determined the loss wasn’t covered because of the policy’s exclusion for “continuous or repeated seepage or leakage of water.” Although the declarations page didn’t identify the policy’s “Special Provisions” regarding fungus, Crowe says the company covers only as much as $ 10,000 for fungus-related losses.
The case was scheduled to go to trial Jan. 17, 2012, but the judge dropped that trial date. A new trial date hasn’t been set. The Moores have asked the judge to issue an injunction prohibiting Safeco from selling or renewing any home insurance policies in California until it revises its declarations pages and discloses the $ 10,000 fungus limit.
“They know this could do severe damage to them,” Judy says. “If we get a permanent injunction against Safeco that requires them to start telling the truth about what they are selling then there could class-action lawsuits in every state. It would not be, ‘Do you owe people money, but how much do you owe every single one of your policyholders?’”
‘Hideous lack of transparency’
Daniel Schwarcz, an associate law professor at the University of Minnesota Law School who is an expert on home insurance policies, says the Moores’ lawsuit could lead to greater disclosure of exactly what home insurance policies cover.
“There is a hideous lack of transparency about policy coverage, about what companies pay out on and how the process works,” Schwarcz says. “All this information is really hidden from public scrutiny. It’s a real regulatory problem. It’s a problem our courts could fix by forcing insurers to pay claims unless they are really clear to policyholders beforehand about what is covered and what is not.”
The ‘mold rush’
Mold and fungus have been around for centuries and are found everywhere. In the United States, there are more than 100,000 species of fungus. Some species like poria can cause extensive property damage; poria is a soil-inhabiting fungus that has shown up recently in homes in Southern California, Northern California and states along the Gulf Coast.
Other types of fungus can cause health problems ranging from runny noses, coughs and sinusitis to more serious upper respiratory ailments such as asthma and bronchitis. Certain types of mold can produce toxins. The federal Centers for Disease Control and Prevention has found no conclusive evidence that inhalation of these toxins is associated with brain damage, memory loss or a lack of energy – as feared a decade ago during the “killer mold” scare.
Before 2000, the few mold-related claims insurers saw generally were settled for a few thousand dollars. But mold and fungus kicked up a furor a decade ago with multimillion-dollar lawsuits by McMahon and other celebrities, and with headlines like this one from Time magazine — “Beware: Toxic Mold.” In one highly publicized case, a Texas family abandoned their mansion and won a $ 32 million jury award in 2001 against Farmers Insurance. An appeals court later reduced the amount to $ 4 million.
Nationwide, mold-damage payouts soared, more than doubling from $ 1.3 billion in 2001 to nearly $ 3 billion in 2002, according to the Insurance Information Institute. From 1997 to 2002, mold-related claims rose from $ 229 million to $ 589 million in California alone. At the time, traditional home insurance policies did not exclude mold and fungus damage.
Attorneys held mold-damage seminars for homeowners in the early part of this century, says Pete Moraga, a spokesman for the Insurance Information Network of California, a nonprofit group supported by the insurance industry.
“They called it the ‘mold rush,’ ” Moraga says. “ ‘Mold is Gold’ was a name of a seminar showing attorneys how they could make a lot of money on this.”
Mold limits become the norm
After a spike in mold-related lawsuits, many state insurance regulators excluded or limited mold coverage on home insurance policies. Mold contamination is covered under these policies only if it is the result of a covered peril, according to the Insurance Information Institute. A covered peril is a type of risk that an insurance policy covers.
For example, the costs of cleaning up mold caused by water from a burst pipe are covered in most policies because water damage from a burst pipe is a covered peril. But mold caused by water from excessive humidity, condensation or flooding is a maintenance issue for the property owner and is not covered. Every state except Arkansas, New York, North Carolina and Virginia has adopted mold limits for home insurance policies.
“The insurance industry reacted en masse to the Texas verdict and put caps across the board into homeowner’s policies regarding mold,” says Amy Bach, executive director of United Policyholders, a nonprofit advocacy group for insurance consumers. “Then it became a big political issue, and some state legislators intervened when they thought the caps were too low. In some states, you’ll see a $ 5,000 max on mold. Other states have nothing on their books. But the insurance companies almost across the board have limited coverage for mold damage.”
Certain states allow insurers to establish sub-limits — either as a percentage of policy limits or as a fixed dollar amount — for mold cleanup. While some insurance companies prefer to create a total exclusion, others exclude mold but offer an attachment to the policy that makes coverage available at an additional cost.
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| Walter and Judy Moore let their neighbors know what they think of their home insurance company with a handmade sign on a hedge in their front yard. The message, spelled out in large white letters, says “SAFECO SUCKS!” |
As a result of states letting insurers exclude mold as a covered peril, the Insurance Information Institute was unable to figure out how much insurers paid out in recent years for mold claims. However, the institute does track losses caused by freezing and water damage, which includes mold-related claims. From 2005 to 2009, those losses increased from 15 percent of all home insurance losses to 24 percent.
When comparing home insurance coverage, Patricia McConahay, a spokeswoman for the California Department of Insurance, says people should carefully read the policies to determine whether mold claims will be paid. If a consumer has a mold claim, McConahay says, he should submit it to his insurer. If the claim is denied, he should contact his state’s insurance department. The department will investigate to determine whether the claim was wrongly denied, McConahay says.
Reversing course
The Moores, the Los Angeles couple, filed a complaint in February 2011 with the California Department of Insurance against Safeco for undue delay and unfair denial of their claim. The complaint alleges that Safeco denied the couple’s claim twice before finally approving it, but only after a long delay that gave the fungus time to spread throughout the house.
“Before I allowed anyone to tear up our home, I double-checked with the claims adjuster, in writing, that the $ 10,000 amount was for only remediation, and the amount for the repair necessary was not part of this $ 10,000,” Judy says. “The adjuster responded in writing that, yes, the $ 10,000 limit only applied to the remediation part of the claim. He also asked me to get new bids for repair.”
The Moores’ lawsuit alleges Safeco then reversed its decision to avoid the increased repair costs resulting from the delay.
Contractors estimate it will cost $ 350,000 to $ 750,000 to fix the Moores’ home, which was valued at $ 950,000 before the fungus invasion, Walter says.
‘A big case for consumers’
The complaint also asks the California insurance commissioner to require Safeco to provide customers with copies of all insurance documents that “fairly and accurately disclose” what losses are covered. The department has informed the Moores that it will wait until the court case is over before taking any further action.
“I think it’s a big case for consumers,” Walter says. “I’m not a class-action lawyer, but I think some consumer lawyer should jump on this and sue them to recover the difference between the protection homeowners are paying for on the one hand and the protection they are actually getting on the other hand.”
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Homeowner’s Policy (in town) do you need Fire Department coverage?
January 21st, 2012
Question by Ella: Homeowner’s Policy (in town) do you need Fire Department coverage?
I thought that coverage was only necessary on properties outside of city limits. If a fire occurs in town, would there still be a charge from the fire department? I thought there was not and that was included in taxes, etc.
Best answer:
Answer by jlf
That’s not an insurance question – that’s a question for the local fire department or city.
Add your own answer in the comments!
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1973 Allstate Homeowners Insurance Sears Magazine Ad
January 18th, 2012
 | US $4.00 End Date: Saturday Feb-11-2012 15:15:54 PST Buy It Now for only: US $4.00 Buy it now | Add to watch list |
1965 Allstate Insurance Ad Home Owners Take Your Pick
 | US $4.00 End Date: Monday Feb-13-2012 11:03:41 PST Buy It Now for only: US $4.00 Buy it now | Add to watch list |
ALLSTATE HOME OWNERS insurance vintage 1960s B&W tv commercial (c194)
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La homeowners insurance rates rising more slowly
January 17th, 2012
La homeowners insurance rates rising more slowly
By Staff reports AP Homeowners insurance premiums in Louisiana remain among the nation's highest, but are rising much more slowly than they did in the first two years after Hurricane Katrina, new data from by the National Association of Insurance …
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Homeowners urged to weigh in on FAIR Plan insurance hike
"Our voices together do make things happen," said Paula Aschettino, chairwoman of Citizens for Homeowners Insurance Reform. She specifically encouraged more homeowners from SouthCoast to join her group and make their voices heard. …
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Home Insurance-An asset protection tool
Its importance cannot be quantified in monetary terms hence the need for home insurance protection. Apart from the above, owning a house is huge investment. You and I know what it takes to get one. We know the complex process of getting mortgage and …
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FEMA's Flood Zone Remapping Impacts Florida Homeowners
January 12th, 2012
FEMA's Flood Zone Remapping Impacts Florida Homeowners
The association will now have to buy flood insurance. Scenario B: If you were in a mandatory zone (labeled AH for example), you may have been placed in a non-mandatory one (labeled X). The association no longer has an obligation to buy flood insurance. …
Read more on Examiner.com
Insurers still lost in floods
Flood insurance is still unavailable as most insurance companies have yet to finalise their policies on the coverage, according to Bank of Ayudhaya. Most insurers remain undecided on flood coverage, leading to the freezing of non-life policy offering …
Read more on Bangkok Post
Memorial Park Flood Damages Total 0K
He said the losses were not reimbursable because the borough did not have flood insurance on the property. From his own research, Metzler said it appeared the borough cancelled flood insurance on the facility around 2000-2001, after the portable …
Read more on Patch.com
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FEMA's Flood Zone Remapping Impacts Florida Homeowners
January 12th, 2012
FEMA's Flood Zone Remapping Impacts Florida Homeowners
The association will now have to buy flood insurance. Scenario B: If you were in a mandatory zone (labeled AH for example), you may have been placed in a non-mandatory one (labeled X). The association no longer has an obligation to buy flood insurance. …
Read more on Examiner.com
Insurers still lost in floods
Flood insurance is still unavailable as most insurance companies have yet to finalise their policies on the coverage, according to Bank of Ayudhaya. Most insurers remain undecided on flood coverage, leading to the freezing of non-life policy offering …
Read more on Bangkok Post
Memorial Park Flood Damages Total 0K
He said the losses were not reimbursable because the borough did not have flood insurance on the property. From his own research, Metzler said it appeared the borough cancelled flood insurance on the facility around 2000-2001, after the portable …
Read more on Patch.com
