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Posts Tagged ‘Premiums’

Texas Home Insurance Renewal Premiums Are On The Rise

28 Nov

Are you getting sick of your Texas home insurance premium increasing with no idea why?

This article explains some of the factors that can affect your homeowners insurance in Texas.

There is going to be a surprise waiting for you in your mailbox and it is not the kind of surprise that you are going to like. Texas home insurance premiums are going up this year at a pace I have not seen for more than 20 years!

Not every one is going to get hit with big rate increases, but if you do get hit, there are ways for you to minimize the overall impact to your budget and still keep your coverage. But before we get into that, lets try to figure out what is happening here.

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Are the Rate Increases Caused by Natural Disasters?

To a certain degree, yes. I have to believe that some of the increase can be traced to the catastrophic losses of 9/11 Attack on the World Trade Center. It is estimated that the total losses from the tragedy will go over $70 Billion Dollars, that is $70,000,000,000. There is no question that the money necessary to pay for the destruction and losses will come from almost every insurance company in one way or another. But the premium increases forhome insurance had started long before that fateful day.

Insurance Premiums on Homeowner Policies Have Gone Up Less Than 2% Per Year the Past 10 Years.

I am sure you are saying, How can that be, it seems that my rates have gone up every year? You are partially right. The total premium may have gone up, but the amount of coverage has also gone up to keep pace with the increasing cost of construction and materials used to rebuild houses. Inflation has continued to increase and push the cost of replacing homes and property higher year after year. Your policy adjusts the coverage on your home each year in an attempt to make sure you have enough coverage in the event of a catastrophic loss.

It’s a Fact: Insurance Companies Made a Lot of Money in the Stock Market During the 1990s and That Was Good For You.

Insurance companies invest their money just like everyone else. During the 1990′s they made money on their investments just like everyone else. In fact, many home insurance companies were willing to write insurance at a loss because they knew they could make it up on investment income.

For most of the 1990′s, insurance companies were able to keep your premiums lower than they would have been because investment income they earned more than offset the losses they paid out. As consumers, we really shouldn’t have a problem with that, part of our premium is offset by the insurance companies investments, resulting in lower premiums.

Then…the Stock Market started to fall apart in the middle of 1999.

 

All of a sudden, the investment income fell off, but the losses didn’t. Insurance companies were now faced with the prospect of mounting losses if they kept the rates at the low level. One of several options was to increase premiums across the board and increase they have.

No Loss Discounts and Loss Surcharges Affect Your Premium

Clients that do not turn in claims make insurance companies lots of money and should be charged lower rates.

Sounds pretty simple doesn’t it? Unfortunately, the rule works the other way, too. Insurance companies are going out of their way to give clients without losses discounts and premium credits to reward them for not having a claim.

If you have a claim or two, you can expect to pay a higher premium for a few years. We know no one plans to have a claim, in fact it’s a real pain to go through the process, but it’s no different than auto rates going up if there is an accident.

One other problem is the size of losses have gone out of sight! We have seen the average size of closed claims in our office go from $2,350 in 1993 to over $6,425 in 2002. The fact is that it just costs more money to make repairs to houses today than it used to.

Big changes are happening in the insurance market.

Deductibles Can Save You BIG Money!

Back in the days when I first started in the business, homes were insured for $35,000 and the policies had a $50 deductible. In the late 1970 the value of homes headed towards $75,000 and the deductibles went to $100. By the end of the 1980′s a $250 deductible was standard on almost all policies written for homes valued over $100,000. Today, with the values of many homes costing more than $175,000 many of our clients are using $500 to $1,000 deductibles to keep the cost of their insurance down.

If insurance companies want to reduce your premium for not turning in claims, you might as well save even more money by increasing your deductible. While you wont save enough to make up the deductible in one year, you will be surprised how much you do save over a few years.

How Much Homeowners Coverage Should I Have?

So how much insurance should you have? Basically, unless you want to pay some of the costs yourself, you should insure your home for what it would cost to rebuild it if your residence were destroyed.

How do you find this out? In the home construction world, building costs are calculated on a square foot basis. We can calculate the estimated replacement cost for your home. Give us a call and we will be glad to update our records and send you a copy for your review.

Your possessions are also insured on a replacement cost or actual cash value basis. Again, unless otherwise specified, the coverage in your policy is actual cash value.

Homeowners policies also have limits on coverage for such items as jewelry, fine art or collectibles.

For example, the standard policy will provide a maximum of $1,000 coverage for your jewelry if it is stolen. If you have lots of jewelry, fine art or collectibles, you should consider purchasing a special personal property endorsement or floater that provides the coverage you need.

8 Ways to Save Money on Your Insurance Year After Year

Now that we have given you the bad news, here are 8 ways you can pay less for your texas home insurance.

In many cases, you can get the same level of coverage for fewer dollars.

Take advantage of multiple policy discounts! Do you have a Houston auto insurance policy?
Texas home insurance policies.
If so, is it with the same insurance company that provides your homeowners insurance?
Many insurance companies offer multi-policy discounts.
Usually, these discounts are at least 10% and at the most 27%.
some insurers apply the discounts to both the auto and the homeowners or any other Texas property insurance policy.

Raise Your Deductible The deductible is the amount you pay before insurance kicks in if you have a claim. For example, if you have a $250 deductible and you file a claim for $1,000 in damage to your home, you pay the first $250 and your insurer pays the balance, $750.

The higher the deductible you choose, the more you pay out of your pocket.
However, the higher the deductible, the less you have to pay for your policy.
Depending on the insurance company, you can save between 12% and 37% if you change a deductible of $500 to $5,000.

Newer Homes Are Rated Better Insurance companies really like newer homes.
Recently built homes equals lower premium because there is less likelyhood something will go wrong with the electrical, heating and plumbing systems.
In addition, the structure itself is in better shape.
Insurers offer discounts of as much as 8% to 15% if your residence is new.

Insure the replacement cost of the house itself not the land. There have been times when mortgage companies want us to increase the amount of insurance to be equal to the mortgage on the property.
You want to insure the rebuilding cost of the house and without including the value of the land in the in the total replacement cost.

Don’t insure more than you own. If you have made a major purchase, you will want to increase your limits of coverage, but what if you sell something? You don’t need as much coverage.
Pay particular attention to items that are covered by endorsements or added floaters to your policy, items such as jewelry and computer equipment.

Do not leave your house unprotected. Smoke detectors, burglar alarms and deadbolt locks are usually worth discounts of at least 2%.
You can get even bigger discounts, 8% to 10%, if you install a sophisticated sprinkler system or an alarm system that rings at the police station or a security company.
Before you install one, check with your insurer to find out what type of system qualifies for a discount and how much you would save on your premium if you installed the system.

If your dog bites, beware of lawsuits. If you have a dog or dogs, particularly if it’s a more vicious breed, you will pay more for Texas liability insurance coverage.
More and more dog bite claims are being presented, which has some insurers not exactly eager to provide coverage to homeowners who have. for example, Rottweilers, Pit Bulls and Dobermans.

If you are considering getting a dog, keep this in mind: If you own dogs of certain breeds, your premium will probably go up.
Your insurer could decide to cancel or non-renew your policy.
For that matter, if your dog is likely to bite someone – of any breed – you are risking higher premiums and cancellation

Keep Your Credit Score in Top Condition Insurance Companies are relying more and more on credit scoring to determine insurance premiums.
They have found that people with low credit scores have almost three times the losses than people with top credit histories.
Get rid of unused credit cards and pay your bills on time. It will pay off in the long run.

I wont kid you. There is more to this insurance game than saving money. In fact, while it’s nice to lower your insurance costs, it’s probably even more important to make sure you, your loved ones and your assets are covered adequately. It’s not a pleasant thought, but insurance is about worst-case scenarios. It’s also about peace of mind, knowing that you have the worst-case scenarios covered.

Do you have Texas insurance questions?

We are here to help you manage your insurance protection. We promise that we will be honest with you and try to get you the best insurance coverage for your dollar. We cant always have the cheapest rates around, but I can guarantee you that we will do everything possible to make sure that you are getting all the discounts you deserve and have your insurance with one of the top insurance companies doing business today.

 
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big boosts in premiums for health insurance

28 Nov

Two of the region’s three dominant health insurers intend to raise premiums on average by double digits for next year, and the third wants a double-digit increase for plans not structured as health maintenance organizations.

The premium for one insurance plan could rise almost 36 percent.

The insurers cite rising costs of medical care and federal health care reforms.

The question is whether the state will let them.

Under a new state law, health insurers must submit their premiums to the state Insurance Department for approval before they take effect.

The state can reject or modify the increases if regulators feel they are not appropriate or justified.

The law also means insurers must disclose their rate plans much earlier than in past years.

Reaction from consumers and small businesses has been swift.

“There’s no question that there’s frustration and anger,” said Howard N. Silverstein, president and CEO of Choice Employee Benefits Group LLC, an insurance agency. “Everybody I’ve talked to cannot believe that some of the rate increases are as high as they are.”

Joe Milazzo, owner of Milazzo Renovations in Lancaster, already was paying $1,200 a month for individual coverage from Independent Health Association when he got a notice of an increase of roughly 15 percent.

“It’s craziness,” he said. “It’s getting to the point where health insurance payments are more than the mortgage payment.”

So he went to the Amherst Chamber of Commerce’s insurance broker and got almost the exact same plan from BlueCross BlueShield of Western New York for $1,351.72 — but every three months, because he is now in a group plan.

“We’re talking a lot of money in savings, for virtually the same plan. I still don’t believe it,” he said.

‘Entire industry changing’

In response, employers are expected to cut back on benefits and ratchet up the amount that employees and their families pay to share in the costs — through higher deductibles, co-pays and co-insurance.

“Our clients … have come to expect double digit increases the past few years,” said Colleen C. DiPirro, president and CEO of the Amherst Chamber, which helps small businesses get health insurance. “However, it doesn’t make it any easier for them to absorb the costs.”

“At the end of the day, I think the entire industry is changing and people are going to become more acclimated to paying more out of pocket and utilizing health insurance for major claims to keep them from financial ruin as a result of a health issue,” she said. “That is the only way we can insure the masses.”

The average requested increase across the board for BlueCross Blue-

Shield was 13 percent, according to information filed with the state Insurance Department, but the increases range from 3.9 percent on one HMO to 28 percent.

Increases would range from less than 10 percent for 30 percent of members to 10 percent to 15 percent for 45 percent, and more than 15 percent for more than 22 percent of those covered.

Independent Health’s rates would rise 10 percent overall, but the increases would range from 7.4 percent on an HMO to 35.8 percent for its small-group high-deductible health plan, where the deductible is not changing. For 1 percent of the company’s small group subscribers, increases would exceed 21 percent.

Univera Healthcare wants to raise rates by 5.4 percent for its Transitions, direct-pay HMO and point-of-sale plan, and 11 percent for all of its other products.

The insurers noted that the premiums and estimated ranges apply only to their base policies, before taking into account individual “riders” that modify coverage for group plans. Also, they are not final until approved.

Independent Health submitted a 1,200-page rate filing July 29, one of the first to do so, and responded to questions once with another 600 pages.

“It’s a ridiculous process,” said Dr. Michael Cropp, the insurer’s CEO.

Univera spokesman Peter Kates said the company submitted its information in August but has not heard back from the state.

Comments reveal rage

HealthNow, the parent of BlueCross BlueShield, filed rates Sept. 1 and has talked to state regulators. But “we don’t have any insights” about how the state will rule, said Stephen T. Swift, the insurer’s chief financial officer.

“They’re very, very stretched,” Swift said. “I’m optimistic the state will approve these rates as filed, but I can’t say we have any indication.”

Comments from the public to the state Insurance Department are being posted, with names blacked out, on the department’s Web site.

“This is preposterous!!!!” wrote a woman who co-owns a business with her husband. Independent Health had notified them of an 11.8 percent increase. “Who on earth can afford this? … The cost of health insurance now is an almost unmanageable burden. This new increase would put us out of business.”

“In these economic times to propose an average 14 percent increase in health care is absurd,” wrote another person who appears to be an insurance agent. “I am not looking forward to meeting my clients and trying to explain these incredible increases while their expenses rise and wages fall.”

“I am writing to express my disgust,” wrote another small business owner, who claimed to have received notice of a 37 percent rate increase.

A dental health care professional wrote: “I wish my income increased as much as my health insurance premiums have.”

As they do each year, the insurers defended their increases as necessary to account for the ever-increasing costs of providing care for their members. Companies routinely cite the high costs of and growing consumer demand for new diagnostic technology and hospital treatments, such as colonoscopies, heart surgeries, radiation and chemotherapies, and intensive services for patients during emergency room visits.

They also point to the high cost and use of sophisticated drugs, especially brand-name and specialty prescription drugs or injectable medications for some of the most serious medical conditions.

“Each year, medical inflation and a continuing increase in the use of medical goods and services combine to drive health care costs higher,” Univera wrote in its own letter. “To cover these increasing costs, we must modify premium rates.”

Consolidation among providers also has reduced competition to some degree, allowing prices to creep up. And the local insurers are quick to note that their administrative costs are much lower than the national average and especially for-profit health plans.

“Obviously our push is to drive those rates as low as possible,” HealthNow’s Swift said. “We know our customers’ concerns as far as affordability and access.”

But they also have treaded in waters that even the White House has deemed inappropriate, by blaming the federal health care reforms. Obama administration officials have warned the industry and its national trade group not to justify rate hikes by citing the reforms.

Notices called “deficient’

So far, requirements for full coverage of preventive care with no co-pays on screenings, the elimination of annual and lifetime limits and coverage for young adult dependents up to age 26 are the only reform provisions that have taken effect.

“Independent Health has evaluated the cost of our members’ health services and benefit changes, including those mandated in conjunction with health care reform,” the carrier wrote in a letter to small employer groups. “As such, we have determined that we must adjust our premiums for 2011.”

Late last month, after the due date for the filings, the Insurance Department issued a statement criticizing many of these notices to employers as “deficient, if not misleading, and in violation of the new prior approval law.” That law was designed to allow insured consumers an opportunity to understand any rate increase and to comment or ask questions about it.

“These type of misleading notices have the effect of confusing members and masking the underlying reasons that a rate adjustment is being requested,” the Insurance Department wrote in its letter to insurance companies, directing them to provide consumers and employers with details.

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Sports Car Insurance: Made for One Who Likes to Drive Fast

29 Jul

Sports Car Insurance: Made for One Who Likes to Drive Fast

Sports cars are specialized machines made keeping in mind the speed of car and security of one who drives. Sportsmen mostly have tendency of driving fast and it is also the requirement of their profession to drive as fast as they can, if they want to win the game. So in these situations it becomes very essential for sportsmen to take sports car insurance. As sports car insurance helps them to cope with any mishaps which might happen during driving.

The number of insurance companies providing Sports car insurance is very less because due to dangers associated with sports car generally insurance companies avoid facing any risk by giving sports car insurance. Even if insurance companies offer sports car insurance they give it at higher premium. Sports car has very powerful engine so that sports car could run fast. Sports car is very expensive due to its complicated design and engine. Sports car is used for sports and racing mainly and therefore catches the eyes of car thieves more easily in comparison of other cars. These cars are used mainly for sports and professional racing; hence they become more vulnerable to risks such as accidents, mishaps, injuries etc. All these factors make it difficult to get sports car insurance at lower premium and that is why insurance companies generally charge high premiums on sports car insurance.

But you can reduce your premium by taking some measures like-

*Get installed an approved alarm system

*Get installed anti-theft device

*Keep your car in garage

*Drive securely

As sports cars are very prone to danger so while selecting any policy of sports car insurance it is better to choose a policy which should provide for both comprehensive coverage and collision coverage. As much coverage you will get with the policy of sports car insurance, it will give more security to your sports car. Comprehensive coverage provides cover against fire, riots, earthquake, and other natural calamities. Collision cover provides for repairs of sports car in case your car is damaged due to any accident.

Generally there are very few insurance companies which provide sports car insurance and so you have fewer options but if you will search online then you can find wide range of insurance companies giving sports car insurance. Online you can research about many quotes of sports car insurance which will help you in making the right decision about the selection of policy sports car insurance.

Car Insurance

 
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