Insurance World

Homeowners Insurance is supposed to protect us in case of disasters. That is what we have come to expect from our homeowners insurance over the years. But what if the disaster is the costliest in U.S. History? What if your insurance agent’s home and office were destroyed in the disaster also?

That is what happened to many customers and homeowners insurance agents and companies after Katrina hit the Gulf coast. Many agents’ homes, offices and insurance Companies’ claims centers were in the same situation as their clients due to the storms. So what did they do? They set up “office” in tents and mobile trailers. Then Hurricane Rita blew away these temporary offices and the agents and companies set them up again. These temporary shelters acted as a communications center for all people in the surrounding areas. Local people would come by to ask questions, meet with their claims adjustors and just catch up on the news with their neighbors. Extreme circumstances dictated unconventional responses: some agents even filed claims for their clients without even talking to the clients just so they could get the claim “in the queue.” Allstate allowed customers to submit claims through any agent in the country and set up a priority line to assist. They sent email to agents in the areas surrounding the disaster areas to act as messengers by “word of mouth” to their fellow agents in the effected areas. The larger companies such as State Farm & Allstate that service claims for the national flood Insurance Program even used satellite imagery to determine damage in some neighborhoods that were entirely flooded.
Lessons Learned: Those of us not effected by these disasters can learn a few lessons about coping with future disasters from the thousands of policyholders that are still waiting to get their claims paid. As soon as possible, take steps to prevent further damage to your home if possible: such as covering the roof with a tarp if possible. You can hire a contractor if you can find one, as that would be safer for most of us than climbing on our roofs. Hold off making any repairs until you see or talk to an adjuster first. Plus, keep your receipts, as you’ll need them to prove expenses that can be re-imbursed later.

What Does Homeowners Insurance Cover?

You can generally expect your homeowners insurance to help pay for additional living expenses for up to 12-24 months while your home is being repaired. But, homeowners insurance usually pays only after they verify you have a legitimate claim. After Katrina, many insurers made an exception, automatically distributing enough to cover two weeks’ worth of additional living expense to anyone in an area subject to mandatory evacuation. Some companies even gave small advances on contents under the personal property part of their homeowners insurance policies.
If you have to wait to get your check, it helps to have cash that is easily accessible in a bank account or money market fund. Stashing cash at home isn’t a great idea because if your home burns down and you weren’t able to get to your cash, most homeowners insurance policies only cover $100-$200 in cash whether it is stolen or burned up in a fire. Your goal should be to have an emergency fund available to take care of your family for 2-4 weeks (minimum)if possible. In a disaster it might be hard to even find a local bank to get cash. Debit/credit cards with a statewide or national bank would perhaps be better.
Your biggest problem in getting your claim handled may be in either not having the proper homeowners insurance coverage or not having enough coverage. Most good homeowners insurance policies today cover up to 120% of your dwelling coverage limit. It is important that you review the dwelling limit with your agent every couple of year’s at a minimum. Homeowners insurance policies do not cover Flooding, but you should again see your agent for this coverage.
If your homeowners insurance falls short, you may qualify for money from the Federal Emergency Management Agency (FEMA) or a disaster-assistance loan from the Small Business Administration (SBA). Homeowners can borrow up to $200,000 for rebuilding and $40,000 to replace personal property at very low interest rates for up to 30 years.
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Life Insurance is a topic that is scarcely pleasant, but incredibly important. Individuals who find themselves in a situation where they are left without life insurance often have major financial difficulties, in addition to the mental ones they are experiencing. Life insurance is set to provide your loved ones with money needed to cover any final expenses and recover from your loss without going into debt or experiencing financial hardship.

It is difficult to say how much life insurance is enough since the ideal amount varies for each individual. Many individuals grossly underestimate the necessary amount for their life insurance and are upset at the outcome. Remember, it is always better to have too much life insurance than too little.

This life insurance acts a survivor for the family whose only bread earner dies. However it should be made sure that the amount is enough to last long and not just a year. It is advisable that the families should even pool in money for the insurance policy, as no one would want a situation like this to occur.

The best way to know the actual amount of life insurance needed is to analyze your ongoing bills and debts. Enlist all your expenses, be it the car payment, mortgage loan, credit card debt or even student loan amount. In this list of expenses make sure that you include any other expenses you think that need to be accounted for.

Many stay at home spouses make a serious mistake when they choose not to take out a life insurance policy. Just as wish a working spouse, any non working spouse should have a policy of the appropriate amount. Although you may not add monetarily to the family’s income, your services and work are extremely important. When calculating how much a non working spouse should have, be sure to estimate covering cleaning, laundry, cooking, childcare, and any other services he or she provides.

The best time to purchase life insurance is now. If you take out a life insurance while you are still young you will get a better rate than you would get at an older age. As you grow older the rates of life insurance soar. Moreover, it’s best to purchase a life insurance before you are diagnosed with any potentially harmful medical condition and be left in the cold.

Age should not be of consideration while investing in life insurance. The idea behind insurance is to shelter them from the troubles pertaining to finances. Although the loss of a loved one is irreparable, there would be one satisfaction that the family wouldn’t suffer from any financial losses. You can talk with the licensed insurance provider to assist you with the plans that are in accordance with your requirements. Thus secure the future of your loved ones by getting yourself insured.