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How To Get Your Insurer to Pay Your Disaster Claim
Seems that more and more states are being affected by hurricanes today than any other natural disaster, so we wanted to take a close look at hurricanes and your insurance.
Your big challenge may come in the way of getting your insurance company to pay up instead of trying to deny your claim.
You may have to dig deeper into your pockets, because insurers have been steadily increasing hurricane wind coverage deductibles and imposing other policy limitations, often burying the wording of such in the renewal policy that most consumers don’t even bother to read.
Many homeowners are dealing with this frustration now, in the wake of Hurricane Irene. So we urge homeowners to be vigilant with your insurance company to ensure you receive a full and fair settlement.
How to Boost Your Odds of Getting Paid
Don’t dilly-dally when it comes to reporting your claim: Insurance companies generally handle them on a first come, first serve basis.
Once your claim is filed, be sure to get your claim number and write it down. You’ll need it every time you call to follow up on your claim.
Build Your Evidence
Anticipate the possibility of push-back from the insurance company, and be ready to hit them with documentation. Start a notebook detailing every contact you have with your insurance company or adjuster.
Make a list (detailed) of all your possessions that were affected by any disaster. You should have a complete inventory, including photos, of everything you own before a storm or natural disaster strikes. Also take photos and list any damage you have temporarily repaired since the storm to avoid secondary damage. Most policies require that you “mitigate damages” before the adjuster can get there.
Get repair estimates from a contractor before the adjuster shows up, if possible. Keep all receipts for any emergency repairs you made, and costs such as those associated with staying in a hotel, if your home was not habitable after the storm.
Be Prepared to Fight
Don’t just file a claim then sit back and wait for your check to arrive. Be prepared to check in regularly with your insurance agent or company on the progress of your claim. If you are denied, don’t just accept it. Demand that your insurance company identifies the language in your policy that served as the basis for them denying your claim.
Watch for insurers who try to pull a “gotcha” by putting a limit on replacement cost payments, which might come into play in the event that a home is totally destroyed. A typical cap is 20% above the face value of the policy.
For example, if a home was expected to cost $200,000 to replace and that amount was the limit on the policy, the insurance company would pay no more than 20% more, or $240,000. If the surge in construction costs due to extreme demand caused the price of replacing the home to jump to $300,000, the homeowner would be short $60,000.
Know Your Rights
The squeaky wheel gets the grease. Do complain to the powers that be in the insurance company if you feel like a denial was unwarranted or the reimbursement too little. Don’t stop there. Complain to your state insurance department: It will make an inquiry with your insurer. See a lawyer if you want to take it a step further.
Expect the worst, but hope for the best. Not all insurance companies handle claims badly, so go into the claims process with an open mind. Be vigilant though, or you run the real risk of being shortchanged.
If you were unaffected by Hurricane Irene, take the time now to count your blessings, and do the things you need to do in order to prepare for whatever Mother Nature has in store next. Take inventory of your possessions, especially including taking photographs of everything you own. Then be sure to store those photos somewhere away from your home. If you have photos stored in your home and your home is destroyed, there goes your evidence with it.
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Buying a New House? What You Have to Do First
If you’re moving into the home buying mode, here are some “must do” things to consider first.
What Can You Afford?
You must take your time deciding what you can really afford before buying. It is critical that you know your status financially, inside and out. Only then can you truly know how much you can afford to pay for your new home. Use one of the many online calculators to help you better understand your affordibility. Understand how your income, expenses, and debts, affect what you can and cannot afford.
Where Will You Live?
You should think carefully on where you really want to live. Some things to consider when deciding the location are: Do you have kids? Then you might want to buy a house in a good school district. Not all school districts are the same. For most home buyers with families, buying a home in a good school district is fundamentally important. By doing this, you also enhance your property value when it comes time to sell your home in addition to providing your children with better schooling.
Check Your Credit
You must ensure that your credit history is the best it can possibly be. A few months before you start actually looking for a house to buy, you will need to check your credit score, get your credit report, and do credit repair or credit counseling to ensure your credit is optimal for your situation. It is important that you stay on top of the facts in your credit report and remedy any problem that arises.
Which Mortgage is Right for You?
The next step is to choose the right mortgage loan for your situation. Deciding on the right type of mortgage can be an experience equivalent to being in the middle of a minefield. There are so many choices from: fixed or adjustable rate mortgages, interest-only or sub-prime mortgages, and many more. So how do you know which mortgage is best for your current financial situation and as well as your long-term goals? Well, you can seek the help of a trusted mortgage broker or lender for expert advice and personalized service. Moreover, a trusted personal mortgage consultant gives you competitive low rates to meet your needs. In order to learn more about the subject, you can start by arranging a complementary consultation with an expert mortgage consultant. You can locate a local mortgage consultant in your area by using any mortgage directory you can find online or offline.
Get Pre-Approved
Get your loan pre-approved before actually beginning your home search. When you have done the above steps and already determined how much your home budget is and have optimized your credit, it is time to get pre-approved for a home loan. Being pre-approved for a mortgage means it will save you time and money by better positioning you to make an earnest offer for that perfect house when you find it. Unlike a pre-qualification which is based on a brief review of your financial situation, pre-approval from a mortgage lender involves an in-depth analysis of your actual income, expenses, debt, and credit history, which of course is a whole lot better than just being pre-qualified.
Following these steps ahead of finding your new home will make things much less stressful versus having to rush to do these things once you’ve already found the home you want.
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Home Affordability Remains High
Home affordability levels remain at near record highs. According to Bob Nielson, chairman of the National Association of Home Builders (NAHB), “At a time when homeownership is within reach of more households than it has been for more than two decades and interest rates are at historically low levels, the sluggish economy and the extremely tight credit conditions confronting home buyers and builders remain significant obstacles to many potential home sales.”
Unfortunately, this high level of affordability, alongside historically low interest rates, has not translated into more sales. Existing-home sales declined in July, down 3.5 percent from June.
Lawrence Yun, NAR chief economist, said “affordability conditions this year have been the most favorable on record dating back to 1970, but many buyers are being held back because banks are offering financing to only the most highly qualified borrowers, ignoring a large share of otherwise creditworthy buyers. Those potential buyers represent the difference between an uneven recovery and a much more robust housing market that could stimulate additional economic activity and create jobs.”
The NAR reports that the national median existing-home price was $174,000 in July, down 4.4 percent from July 2010. Distressed homes still made up nearly 1/3 of the market, at 29 percent.
According to the Mortgage Banker’s Association’s (MBA) Chief Economist, Jay Brinkmann, “While overall mortgage delinquencies increased only slightly between the first and second quarters of this year, it is clear that the downward trend we saw through most of 2010 has stopped. Mortgage delinquencies are no longer improving and are now showing some signs of worsening. The good news is the continued decline in long-term delinquencies, those mortgages that are three payments or more past due. The bad news is that drop is offset by an increase in newly delinquent loans one payment past due.”
The MBA reports that foreclosure start rates fell to their lowest level since the fourth quarter of 2007. Foreclosure inventory rates also fell, to their lowest level since the third quarter of 2010. Foreclosures could be losing steam, meaning prices and the market as a whole could be headed toward stabilization.
If you’re a member of an association, like the Elks or AARP, you’ve no doubt seen the pitches: get your life, car or home insurance from us and save money. But do you?
Have you shopped these association offers to compare? What have you found? Higher costs, or deals?
Any homeowner buying a home needs to consider a homeowner insurance policy to protect their investment. A policy can protect in cases of fire, flooding, vandalism and even earthquakes.
Looking for a good homeowner insurance policy does not need to be complicated. The best place to start is by shopping online.
Searching sites will take a few minutes. Be diligent and take into account all options. Read carefully all of the information. Many sites will provide an online chat with an agent for questions. Most big companies will have a toll free phone number. Get informed before purchasing any policy.
One benefit of an online search is that one can do a side by side comparison of more than one provider. They will compare prices, benefits and information regarding the policy. It is very advantageous to find a good carrier. Some people prefer to use a national company. This can be beneficial as the big companies are quick with handling any type of claim.
Looking for homeowner insurance need not be a daunting task. Being informed is the best practice so as not to get taken by a scam. There are scams on the Internet, so be prudent. Take time finding a good policy for your particular needs. If you need help with a reliable agent, contact us. We’ll be glad to offer you some names of insurance agents and insurance companies we’ve dealt with in the past which have good reputations.
In light of all the unfortunate flooding we’ve all been seeing on the news of late, you may be wondering, “What if this happened to me? How can I protect myself and my family?”
According to FloodSmart.gov (the official site of the National Flood Insurance Program), everyone is at risk of flooding. Floods can happen almost anywhere. In fact, floods are the most common natural disaster in the U.S. They can happen even if you don’t live in a high-risk area. For instance, a flood can happen during winter when temperatures rise suddenly and the frozen ground can’t absorb the melting snow.
Floods can be extremely costly. Over the last 10 years, the average flood claim has amounted to approximately $48,000. For instance, the cost of a 6-inch flood in a 1000- square foot home is about $20,000.
Who Is Required to Buy Flood Insurance?
For homeowners who live in coastal and high-risk zones, flood insurance is mandatory. The Federal Emergency Management Agency (FEMA) mandates it for any mortgage that is backed by the government.
For homes built in low to moderate-risk and undetermined risk zones, flood insurance is optional. While flood insurance is not federally required for moderate-to-low risk areas, it is still recommended. Some people choose to purchase flood insurance just for the peace of mind.
Is My Home In A Flood Zone?
Even if you are renting, it’s still wise to learn if your home is in a flood zone. You can ask your insurance company or your community floodplain manager for a Flood Insurance Rate Map (FIRM). A FIRM will generally show a community’s base flood elevations, flood zones and floodplain boundaries. Keep in mind that FIRM maps are constantly being updated due to changes in geography, construction, mitigation activities and meteorological events.
How Can You Buy a Flood Insurance Policy?
Unfortunately, standard homeowners’ insurance doesn’t cover flooding. This means homeowners have to purchase separate flooding insurance. There are two ways an owner can purchase flood insurance:
- If the property is required to have flood insurance and is financed with a federally backed mortgage (FHA, VA, Fannie Mae, Freddie Mac) then the owner can purchase insurance through the National Flood Insurance Program (NFIP).
- If the property is not in a high-risk or coastal area and having flood insurance is optional, then the owner can purchase a policy through the NFIP or with an insurance company that offers this type of insurance.
Keep in mind that regardless of where you purchase the flood insurance (NFIP or an insurance company) you will always use an insurance agent to purchase it. You can always contact the NFIP for a referral to an insurance agent.
If you have questions about flood insurance that we didn’t answer in this article, please click the comment link and ask. Your email address is never shared with anyone, nor will it be published on this website. We’d love to hear from you.
Investing in real estate can be a risky business, but one thing that will help you minimize your risk is making sure you have the right insurance. Here are some different types of insurance you should consider if investing in any type of real estate:
Title Insurance
Title insurance wіll hеƖр cover you уοu іn thе unlikely event of a title dispute. Thіѕ could come from a past owner’s delinquent taxes, liens thаt wеrе placed οn thе property, οr fake signatures when transferring title. Title insurance wіll help іf thеrе аrе tenure problems thаt саn οnƖу bе resolved іn court. Title insurance is a onetime cost, usually аt closing, bυt offers уου coverage аѕ long аѕ уου οwn thе property.
Landlord Insurance
Landlord insurance will cover уουr investment іf уου hаνе tenants thаt wіll bе renting уουr property. Landlord policies аrе somewhat identical tο homeowners insurance. Mοѕt forms οf landlord insurance covers уοu if someone is injured on your property while renting from you. Thе one thing mοѕt landlord policies do not cover іѕ contents οf thе home. Yουr tenants ѕhοuld buy their own renter’s insurance; thіѕ wіll give thеm thе coverage thеу need fοr thеіr contents. Thеrе аrе many riders уου саn get that act as a supplement tο уουr landlord policy. Thеѕе ѕhοuld bе discussed wіth уουr insurance representative οr attorney tο mаkе certain уου hаνе thе rіght coverage.
Builders Risk οr Construction Insurance
Construction insurance will give thе coverage уου need tο cover thе structure аѕ іt іѕ built, along with any appliances or other items yου mау hаνе already bουɡht. Yουr construction insurance mау even cover уουr appliances and such іf thеу аrе stored somewhere οthеr thаn the property that is under construction or іf thеу аrе damaged іn transit. Construction insurance generally protects уουr investment frοm fire, theft, аnԁ сеrtаіn disasters. Thіѕ coverage usually hаѕ a time limit οf one year οr whеn thе construction іѕ complete, whichever comes first.
Vacant Homeowner’s Insurance
Dіԁ уου know уουr homeowner’s insurancce mау nοt cover уουr home іf іt іѕ empty fοr more thаn thirty days? If a home уου οwn wіll bе empty fοr more thаn thirty days, уου mау need a specialized policy. Thеѕе empty home insurance policies mау bе аѕ elementary аѕ adding a supplement tο уουr policy οr уου mау hаνе tο hunt fοr an insurance company thаt offers thіѕ form οf insurance. Thіѕ insurance саn infrequently bе tough tο gеt bесаυѕе insurance companies see empty houses аѕ a risk–ѕіnсе nο one іѕ thеrе, giving іt an increased possibility οf being vandalized. Thеѕе policies typically hаνе a tenure οf 3 months tο one year аnԁ саn bе a bit more pricey, bυt good value for thе money, considering you’re not actually there to look after things.
All of these types of insurance are, of course, in addition to normal homeowner’s insurance that everyone should have on their home.