Nationwise.com Insurance Blog » Homeowners Insurance

Five Tornado Facts

admin — Sun, 22 Aug 2010 03:40:21 +0000

1. According to a study by A.M. Best, tornadoes are responsible for 57 percent of all catastrophic losses since 1953. The costliest tornado to date struck Georgia in 1973, causing $5.35 billion in damage. Tornadoes are approaching hurricanes in terms of costliness. According to the Insurance Information Institute’s 2009 Insurance Fact Book , “insured damages of $1 billion or more from a single event [are] becoming more common.”

Frequency

2. In 2008, 1,390 tornadoes touched down in the United States in the first seven months of the year, setting a new record. Kansas and Texas typically see the most action; in 2007, twisters hit Kansas 137 times and Texas 197 times. However, Florida, with its dense population, saw the highest number of tornado fatalities in 2007 with 21. Given the right circumstances, tornadoes can occur at any time of year, but they are most frequent between April and September.

Cause

3. While we know that tornadoes emerge from thunderstorms, the U.S. National Oceanic and Atmospheric Administration (NOAA) doesn’t fully understand why some t-storms produce them while others don’t. “The classic answer – ‘warm moist Gulf air meets cold Canadian air and dry air from the Rockies’ — is a gross oversimplification. Many thunderstorms form under those conditions (near warm fronts, cold fronts and drylines respectively), which never even come close to producing tornadoes.” Needless to say, this gap in knowledge makes tornado prediction ??a very imprecise exercise.

Rating

4. Tornado strength is measured by the enhanced Fujita scale, from 0 to 5, with an F5 tornado packing 300-mph winds. The F-scale, as it’s known, measures intensity by analyzing wind damage to manmade structures. While based on engineering guidelines, the scale is subjective. NOAA: “Nobody knows the ‘true’ wind speeds at ground level in most tornadoes, and the amount of wind needed to do similar-looking damage can vary greatly, even from block to block or building to building.”

Coverage

5. Most standard homeowners insurance policies cover tornado-related damage. Car damage is covered under your auto insurance policy’s comprehensive coverage (which is an elective coverage that kicks in after you pay your deductible amount).

How’s the Hood?

admin — Wed, 21 Jul 2010 00:28:16 +0000

by Penny M. Hagerman

Where do you live? Did you know the type of neighborhood you live in has a lot to do with how much you pay for homeowners insurance?

As our needs change, our communities grow to meet those needs. As a result, new types of urban and suburban neighborhoods sometimes spring up, some more traditional than others.

Depending on factors like location, proximity to downtown, security and the age and makeup of each neighborhood’s residents, home insurance rates may run higher or lower from one neighborhood to another.

What Goes on Where You Live?

How does your ‘hood rate? Do you understand why you pay what you pay for insurance in your area?

Perhaps you’re considering moving across town. Or leaving the city in favor of peaceful country life. Do you know what homeowners insurance will cost when you make the move—and why?

If you’re preparing to buy a new home, consider the following types of neighborhoods (as defined by Frontdoor.com) and their insurance distinctions before making your purchase. You’ll learn what to expect insurance-wise before you move, help keep home insurance rates in check—and protect your home and family, no matter where you live.

Neighborhood #1: Urban Core

Downtown areas in major metropolitan cities make up these types of neighborhoods. Consisting of mostly apartments and condos converted from old warehouses and above businesses, these areas are perfect for those who enjoy night life and city attractions. However, insurance rates in urban cores tend to run higher than average due to excessive crime, dense populations, illegal activity and transients.

Neighborhood #2: Urban Pioneer

Located near downtown areas and close-in suburbs, urban pioneer neighborhoods are up-and-coming areas that attract an ethnically diverse mix of mostly blue-collar singles, couples, retirees and immigrants. Consisting of modest but affordable older homes, urban pioneer neighborhoods enable occupants to purchase a nice (but often small) home likely to increase in value. However, crime and a lack of security is often a problem in these neighborhoods, leading to higher insurance rates than in most suburban areas.

Neighborhood #3: New Urban

New urban neighborhoods can be found near business hubs outlying city centers. Consisting of new single-family homes, upscale apartments and condos, and lofts above businesses decked out in retro styles known for architectural detail, these areas draw educated, affluent-to-middle-income singles and couples with no or few children. Because home prices and incomes tend to run higher here, it’s more expensive to insure a home in this type of neighborhood. However, with businesses close by, occupants are much less reliant on their vehicles, which helps keep the environment cleaner and reduce auto insurance rates.

Neighborhood #4: Bedroom Communities

The typical ‘burbs seen in movies and on television, bedroom communities exist as new subdivisions containing newly built, tract homes; manicured lawns and finished basements. Serving mostly families made up of middle-aged parents and their children, occupants usually spend time socializing and bonding with their neighbors. Because they’re more suburban, spread out and set apart from the activity of the city, bedroom communities usually experience less crime, which helps keep home insurance rates low.

Neighborhood #5: Pedestrian

Most major metropolitan cities contain small, outlying pockets of homes made up of brownstones, cozy condos and apartments. In these areas, residents walk everywhere they need to go, eliminating or greatly reducing the need for a vehicle. There’s little to no parking, yet young hipsters and single professionals enjoy being in such a casual, friendly atmosphere. Crime rates usually run low here, making home insurance rates affordable.

Neighborhood #6: Historic

Consisting of large, well-preserved, older single-family homes known for architectural styles such as Victorian and Colonial Revival, historic neighborhoods have lots of curb appeal, history and character. Often located near downtown or in well-known areas, homes in historic neighborhoods tend to be well patrolled by law enforcement and contain more stable, mature residents—which helps keep home insurance rates down. However, the expense involved in repairing or replacing expensive homes like these tends to drive rates upward.

Neighborhood #7: Status

Normally located in luxurious areas such as mountains or behind water or gates, neighborhoods of status tend to contain custom-built, single-family homes in trendy, urban areas. Filled with the affluent, celebrities and millionaires, these neighborhoods are often gated, secure, patrolled, exclusive and private. What does that mean? You guessed it—higher insurance rates. (But then, if you can afford to buy a home in this type of neighborhood, high home insurance premiums probably aren’t a problem!)

Neighborhood #8: Ethnic

Found near downtown in major metro areas, ethnic neighborhoods consist of large populations of people of similar ethnic origin living in small spaces. Though housing is affordable and cuisine can be interesting here, living in this type of neighborhood if you’re not of common ethnicity can make you feel like an outsider. Many residents living here are low-income, blue-collar workers; still, ethnic communities are often close-knit. Crime can be a problem, but insurance rates depend on each neighborhood and the problems it faces individually.

Neighborhood #9: Resort

Sunbelt and coastal cities made up of affluent and active adults and seniors who love the outdoor lifestyle is what you’ll find in resort neighborhoods. The epitome of suburban and usually set in scenic places where the climate is temperate, these areas attract mostly mature residents. Usually well patrolled and secure, homeowners insurance rates for homes in these regions tend to run high—but only because of replacement expense. However, crime rates are generally low here, and many people aspire to move here, trading higher insurance rates for relaxation and a sense of security.

Neighborhood #10: Golf

Subdivisions containing new homes and golf courses entice many families, retirees and golf fanatics. With amenities galore and upscale homes, money usually isn’t an object for those who choose to live in a primarily golfing community. Secure and often secluded, these types of neighborhoods are often gated and protected, which reduces crime and home insurance rates. Again, homes here are expensive, and replacement costs high.

Neighborhood #11: Retirement

Also in coastal and Sunbelt cities, homes in retirement communities tend to be small, low-maintenance apartments and condos. With lots of organized activities, neighborhoods like these tend to consist of empty nesters and single seniors looking for companionship. Because residents tend to be older, neighborhoods safe and quiet, and homes small and affordable, those living in retirement communities pay less than average for home insurance—and stay safer.

Neighborhood #12: Rural

Suburban to the core, some people enjoy the peacefulness that living in rural areas brings. Existing miles from the city—and its pollution, noise and crime—rural residents have lots of space, plenty of room to spread out, and lower home insurance rates than average. However, being so far from everything comes at a price: they wind up spending more time on the road and less time relishing their rural neighborhoods.

Learn about Your ‘Hood

Before you buy a home in a new neighborhood, know what to expect when you get there—including homeowners insurance rates. Then make the most informed decision possible, and enjoy your new digs!

Do I Really Have to “Go Green”?

admin — Wed, 30 Jun 2010 21:14:48 +0000

If you’re like me you’re a little tired of hearing about “Going Green”. man enough already. But with recent incentives from a handful of major insurance companies you can save some serious money. That I never get tired of!

Insurers Going Green

Recently, some insurance companies have turned their attention to greener products, rewarding discounts and lower-priced coverage to clients willing to make environmentally conscious decisions about the way they live.

By offering greener insurance products to protect property like hybrid cars and energy-efficient homes, more and more property and casualty insurers are jumping on the bandwagon in an effort to encourage planet-saving behavior in the long-term and money-saving options now.

Many insurers, like Travelers and Allstate, reward customers who purchase hybrid vehicles or upgrade to green-certified homes with a 5 to 10 percent discount. Others offer discounts or incentives to those who use environmentally friendly building materials, equip their home with windmill-generated electricity or outfit it with solar panels.

Some even offer a type of eco-friendly upgrade that allows clients to rebuild their homes greener than before following disaster, with packages that include Energy Star appliances and sustainable materials.

According to Bankrate.com, this option is available to customers of Fireman’s Fund and Farmers Insurance as an addition, or endorsement, to their regular insurance policies, at a cost of only about $20 to $25 a year more than their standard insurance policies.

Why Do They Care?

But why does your insurer care if you’re concerned about the environment in the first place?

Studies show that policyholders who do their part to keep the air clean, conserve energy and use fewer natural resources also tend to drive less and be healthier, more mature and responsible—as well as less likely to file insurance claims on losses.

And, since buying and using greener products at home and on the road can cost significantly more than using standard counterparts, the type of person willing to live a green lifestyle is more willing to spend money up-front to reap a payoff over the long term.

Bottom line: Whether you’re a tree-hugging environmentalist or simply an earth-loving conservationist, you’re just the type of customer your insurer is looking for—and is willing to pay to retain.

Doing Your Part

Next time you purchase a car or home, think green.

Not only might you get tax breaks from the government and incentives from the dealer or lender; going green could also turn your pockets green over the life of your insurance policies!

Do Dangerous Dogs Affect Homepwners Insurance Rates?

admin — Wed, 30 Jun 2010 21:04:44 +0000

Americans love their dogs. In many households, canines are considered part of the family, participating in daily and weekend activities, along with other family members.

Though dogs can be loving and fun—and offer never-ending companionship—they can also be unpredictable: sweet and docile one minute, and aggressive and dangerous the next, depending on the situation.

With risk like that, homeowners who are dog owners should carefully consider the dog/s they choose to be part of the family and consult with their insurance company before bringing those cute little canines home for good.

Insurers Getting Skittish

Liability insurance covering dog bites and injury should be a part of every dog owner’s financial portfolio. But for those who own certain breeds, finding an insurance company willing to offer coverage for dog bite or injury may be difficult.

In fact, some insurers are beginning to:

Deny coverage on certain types of dogs
Opt not to cover dog bite or other damage dogs cause
Limit the number of people in the household covered
Limit coverage extending to particular animals with a history of aggression, or
Non-renew the policies of those who purchase certain types of dog

Why is this happening? Consider these facts, provided by the Centers for Disease Control and Prevention (CDC) and DogBiteLaw.com:

One-third of all homeowners claims involve dog bites.
Dogs bite nearly five million Americans every year.
Children are the victims of most serious attacks.
Almost one in five require medical attention, with reconstructive surgery often needed.
Dogs cause approximately $1 billion in medical and insurance losses annually.

With statistics like those, you can see why insurers are becoming much more selective about insuring household pets—and why rates for dog owners often run much higher than for non-owners.

Insuring ‘Problem’ Dogs

Which dogs make getting insured most troublesome? The CDC published a ‘most dangerous breed’ list, and insurers tend to use it to determine liability insurance rates, along with other factors like the dog’s weight, age, gender and history.

For those who own one of these top ten offending breeds, getting—or remaining—insured may present the most challenge:

—Pit Bull Type

—Rottweiler

—German Shepherd

—Husky Type

—Malamute

—Wolf-Dog Hybrid

—Chow Chow

—Doberman

—Saint Bernard

—Great Dane

If you own one of these breeds of dogs and are wondering what it’ll cost to insure it, here’s a general guideline: You can usually get about $100,000 worth of coverage for $700 to $1,000 per year.

However, due to the inflated cost of medical care these days, many experts recommend you get at least $300,000 in dog bite coverage in case of severe injury. Otherwise, if your dog bites or injures someone, you’ll be paying the difference out of your own pocket.

In addition, if your dog has a history of biting or seriously injuring someone else, you may pay 30 to 50 percent more for the privilege of owning and insuring it.

Making Sure You’re Covered

If you’re not sure whether or not your insurance policy extends coverage to your dog, read the fine print or call your agent to find out.

If you find out the dog isn’t covered, you might want to consider purchasing a personal umbrella liability policy, which increases the amount of liability insurance your insurer will pay out on. This protects you from financial harm and devastation if your dog hurts someone and you’re held liable.

No matter what kind of dog you own, we hope you enjoy it for years! Meanwhile, talk to an InsureMe agent to make sure your dog—and you—have the insurance protection you need.