The intent of homeowners insurance is a form of protection of your dwelling and personal items from total disaster and loss. Anyone who has ever gotten a mortgage knows that presenting proof of homeowners insurance is one the requirements at closing. The borrower is at the very least required to purchase insurance for the value of the mortgage loan.

Nevertheless, you cannot make a decision as to how much homeowners insurance you are going to need simply based on the amount of the mortgage. You are going to need insurance that is adequate enough to protect you, your family and your possessions.

Should your home be totally destroyed, you are going to have to rebuild it or get a comparable home. Read more…

Sainsbury’s Home Insurance is bracing itself for a spike in claims now that the festive season is over. Christmas and New Year can prove costly for insurance companies, with figures suggesting that over £25 million could be paid out in Jan 2010. Last year, in the first week of Jan, the number of claims handled by Sainsbury’s was more than a third higher than a normal week and the amount paid out per claim was higher on average too by about one sixth.

All sorts of reasons have been advanced for the increase in claims. If homeowners are entertaining on Christmas Day, Boxing Day or New Year’s Eve their freezers can be stacked to the gills and if a power cut strikes the costs of ruined food can easily run into hundreds of pounds.

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Insurance agents and brokers such as Trusted Choice and the Independent Agents & Brokers of America are offering tips to help families avoid winter risks that could increase homeowners insurance rates. By keeping your home out of danger’s way, you could avoid having to file claims, which in turn could increase your rates.

Here are the helpful tips from the insurers and brokers:

1. Prevent Ice Dams

Ice dams are buildups of ice that block water drainage from the roof and the gutters. Unfortunately, these dams can cause leaks from ceilings and walls, causing other problems down the line, including mold. In order to prevent ice dames, you want to remove leaves, sticks and other debris from your gutters – or install gutter guards.

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Many people are buying homeowner’s insurance (HOI). They buy this not because it is required by the lenders but also to protect themselves to the cost of damages brought about by the different hazards in life. Aside from that, this also helps them pay for any injuries that their homes has caused to other people, may be as guests or not. This kind of insurance is very important for this matter because the damage can be very expensive to pay out of pocket. With the help of insurance, the homeowner’s burden will be lightened a bit because all they would have to pay is the deductible (which is a fixed amount) and any excess of the full amount covered by the insurance. Read more…

M&S Money has warned consumers that they should take greater security measures over Christmas to prevent themselves from becoming the victims of burglaries.

Domestic burglaries are at their highest during the darkest winter months of the year, and there is the added risk of having a large number of expensive presents left in homes before Christmas Day, which can be a very tempting proposition for thieves.

A recent survey by M&S Money found that 39% of homeowners leave presents under the tree long before Christmas Day, with only 7% of respondents waiting until Christmas Day itself to put the presents on display.

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In October, we reported on a group of homeowners who had been dropped – or threatened – by their insurance companies because they’d submitted claims for faulty Chinese drywall in their homes. Seen as unfair treatment by the victims and many onlookers, a new advocacy group quickly organized to help the homeowners and begin steps toward resolving the issue.

Chinese Drywall Complaint Center

The new organization is called the Chinese Drywall Complaint Center. Currently, the center is looking for homeowners in Louisiana, Alabama, Florida, Mississippi, Virginia and Southeast Texas – the states with homes that may be affected by the faulty drywall.

Those homes that may have been affected by the drywall, which has corroded plumbing and made home dwellers ill, were built primarily from 2001 to 2008.

Was CPSC Doing Enough?

The U.S.

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A new plan to has been released by FEMA that is said to hopefully rescue flood plain dwellers from high insurance premiums. However, the plan, which was discussed on Dec. 15 and 16, is said to move in a different direction than the federal legislation introduced in July.

The New Plan

According to the new plan by FEMA, flood insurance would be required in the new high-hazard zone while premiums would be artificially reduced for 10 years. This would provide time for regions to restore levees and essentially offer low-risk premiums on high-risk properties.

Those communities that were most affected by high risk would have to apply for “AR” designation (an at-risk property); however, these areas would pay less.

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The National Association of Mutual Insurance Companies (NAMIC) is hoping that property casualty insurance companies can be excluded from new legislation that would require an agency to oversee some financial institutions. According to the association, these particular companies do not pose a systemic risk to the U.S. economy and thus should not require specialized regulation.

The Basics of the House Bill

The bill is called the Financial Stability Improvement Act of 2009 and was approved on Friday, Dec. 11. According to the bill, the Financial Services Oversight Council would be formed. This council would have the power to designate financial companies it deems as posing a systemic risk to the overall economy heightened regulation.

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If you have a homeowners insurance policy or renters insurance, you’ve taken the first step to protecting your property. But are you covered if the following circumstances were to occur:

• A water pipe bursts in your basement
• A slow drip upstairs damages your ceiling
• Your sewer backs up into your house during a flood
• Ice dams build up causing your roof to leak
• A storm causes a hole in your roof or window followed by rain damage

Any of these situations could occur, but you may not be fully covered under your homeowners or renters insurance policy.

Coverage 101

For starters, a top-down and bottom-up rule makes it easier to remember what typically is and isn’t covered under your homeowners insurance.

• Top-down is covered: It’s important to know that most homeowners insurance as a standalone product does not cover flood damage.If the damage comes from the top down, homeowners insurance generally does cover it.

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Dogs are playful, affectionate, loyal, protective – and sometimes a major problem for home insurance providers. While home insurance generally covers dog-related incidents, such as bites and attacks, insurers have gotten savvy about various “problem” breeds and have responded by either restricting home insurance coverage or denying it altogether. Policies vary from company to company and state to state, making for a complicated situation that demands the attention of every dog-loving homeowner.

The Problem with Dogs

According to the American Humane Society, approximately 39% of American households have one or more dogs. While most are friendly to strangers, unpredictable stimulus can agitate them and cause them to bite.

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