The (NFIP) National Flood Insurance Program was created by Congress in 1968. The program is for property owners to have protection from the damages caused by flooding. This insurance was designed because of the catastrophic nature of floods and the insurance companies inability to underwrite the risk of flood and be viable enough to pay the enormous claims.

The NFIP is meant to collect enough insurance premiums form the insureds to be self funded and pay all claims from premiums collected. Unfortunately due to the numerous catastrophic claims it has made the program under funded and it has cost taxpayers about $200 million annually to cover the losses. Congress originally intended that operating expenses and flood insurance claims be paid for through the premiums collected for flood insurance policies.  NFIP borrows from the U.S. Treasury when losses are heavy, and these loans are paid back with interest. This is why the flood budget is subject to Congressional approval and is only being given 30 day extensions at this time until someone comes up with a better proposal for the future of NFIP.

Floods are not covered by homeowners insurance policies. It is a specifically excluded coverage. Wind, hail,  and sewer and drain back up coverage are often confused with flood insurance. If rain comes in the home as the result of wind or hail damage, the homeowners insurance  policy may cover the claim if it covers wind and hail claims. If the water is the result of a sump  pump failure or too much water for the sewer and drain to handle, the water backup may be covered if the coverage is purchased by the homeowner and is on the homeowners insurance policy.

So what does Flood insurance cover. According to www.Fema.gov, here is a list of what kind of flood would qualify for coverage:

CAUSES OF FLOODING

Every part of the country is at risk for flooding from several causes. Some causes are seasonal, but other causes can happen at any time and are always a possibility.

Coastal Floods/Storm Surge: Winds generated from intense storms can cause widespread tidal flooding and severe beach erosion along coastal areas. Storm surges are large waves pushed toward the coast by strong winds associated with the storm. When combined with the tide, storm surges can cause water levels to rise up to 15 feet or more, deluging coastal communities. Hurricane-force winds can bring these large waves crashing into coastal communities in the summer months and northeasters can bring these waves to the Northeast in the winter.

Winter also brings strong storms to the Great Lakes. Winds can push water levels up at one end of the lake, causing a storm surge and decreased water levels at the other end of the lake. As the winds subside, a pendulum effect begins until the water levels have returned to normal. These oscillations or seiches can cause coastal flooding on both lakefronts.

Inland Flooding: Inland areas are also at risk for flooding from hurricanes. Slow-moving and stalled systems can
dump large amounts of rain, causing devastating inland floods days after a storm makes landfall and hundreds of
miles away from the initial strike zone. For example, in 2004, inland flooding from Hurricane Ivan caused more
than $115 million in paid flood losses in Pennsylvania.

Riverine Flooding: Riverine flooding generally occurs as a result of precipitation or snowmelt. Rivers and streams
become inundated by water causing them to spill over their banks.

Flood insurance is offered by insurance agents. An agent who can write flood insurance in their own state can write flood insurance in every state since it is a federal program. We write flood insurance in all 50 states and can help you if you need coverage. While flood is suspended due to congress failing to pass a new budget or extension for flood no one can write flood insurance through the NFIP. There are a few insurance companies that write flood insurance for areas not covered by FEMA whether it is a nonparticipating community or FEMA is not allowing new policies to be written through the program.

 

Landlord insurance is a complicated insurance contract. Homeowners are usually written on a HO policy form which is a broad form policy. A broad form policy is a “if it’s not excluded, it’s included” policy. That means a loss will be paid unless it is excluded in the contract.  Landlord policies are dwelling policies and are usually written on a DP policy form which is different from a HO policy.  DP policies are either basic or special. Basic and special have limited coverages. They are a “if it’s not included, it’s excluded” policy. That means the claim has to happen in a way that the policy lists as an included coverage.  As you can see, that leaves a lot of open gaps that a homeowner policy doesn’t have.

A DP1 is a basic fire policy and does not cover wind, hail, vandalism, malicious mischief, burst pipes, or theft unless it is added to the policy as an endorsement. A DP3 does usually cover wind, hail, vandalism, malicious mischief, and burst pipes unless it is excluded. The reason dwelling policies are more expensive and have less coverage is because of the unknown factor of the tenant.

An insurance company when writing a landlord policy not only has to take on the risk of the homeowner and the property but they are also insuring the tenant in a way. The tenant could cause a fire, flood, vandalism and the insurance would have to pay a major claim due to a property being rented to an unreasonable tenant. Just like landlords usually don’t see a bad tenant coming in the door when they rent the property and the insurance company has even less knowledge of the person living in the home.

Our point is if an agent is very good at writing homeowners and auto insurance policies may not have the product diversity or product knowledge to give you the coverage you want and need. Some investors are more concerned with cash flow and have a lot of liquidity and are only looking at coverage for major catastrophic claims and they want to handle the smaller repairs on their own. They could buy a stripped down policy for minimal cost and maximize cash flow. Another property owner may be an accidental landlord because they had to move and couldn’t sell the home so they decided to rent it out. That person may need a more comprehensive policy because of lack of experience as a landlord and limited liquidity. The insurance policy will cost more but it provides a greater breadth of coverage to protect the landlord from a potential loss even if it is small.

Sometimes it is better to let the family practice doctor handle the sniffles and the heart surgeon to do the bypass. Sometimes its better to go to a clinic that has different departments that way your records and care is more closely coordinated. Just some food for thought (with a lot of fiber, of course).

 

Different types of homes require different types of insurance. How the home is built will determine what type of insurance you can buy, how much it will cost, and what it will cover in the event of a loss.

A site built home is a house that has been built where it stands. The house is built on site from the foundation to the roof. This is the most common type of home people think of when they think of a house. The foundation, walls, electrical, plumbing, insulation, and roofing are built piece by piece at the location the home is to eventually be occupied. Some homes can be moved but they are still site built homes. Traditionally built homes also must confirm with local, state, and federal guidelines. These homes are sometimes known as stick built homes but they are built from many materials like brick, stone, or lumber. A traditionally built home will usually appreciate in value over time.

The manufactured home is built differently from a traditionally built home. A manufactured home or mobile home is built in a factory. The house is built with a permanent steel chassis which is why they are commonly known as mobile homes because they are more easily moved from place to place. A mobile home also usually has a title like a vehicle rather than a deed like a home. The home has to conform with federal HUD guidelines but usually doesn’t have to conform to local building codes. Mobile homes can’t be put anywhere because they have to approved to be placed on a lot by the local authorities. Many mobile homes are in parks known as mobile home parks. The mobile home has a serial number and a plate that has information on the builder of the mobile home, heating, cooling, and components of the home. Manufactured homes tend to decrease in value over time.

A modular home also known as a prefabricated home or prefab is a hybrid of a site built home and a manufactured home. It is built in a factory like a mobile home but it does not have a permanent chassis. The home is brought to the building site on a flatbed truck. The home also has to meet all federal HUD, local, and state guidelines for a traditional built home.  Modular homes are typically less expensive and faster to build than a traditional home because they are built in a controlled factory environment. A modular home has a deed and is not made to be moved once it is assembled at its final destination. Because a modular home is built on a traditional foundation, it can be hard to tell whether it is a traditional built home or a modular home and many homeowners and insurance companies are even aware the home is factory built. Modular homes when built well increase in value similar to a traditional built home.

When it comes to insurance, many companies do not write manufactured or mobile homes. They are built on a chassis which means they are mobile, they do not have to conform to local building codes, and they decrease in value over time. There are a few companies that specialize in manufactured homes and can be very comparable in rate to a traditionally built home. You should look for a company that provides coverage for fire, wind, hail, vandalism, water, and liability. Also find out how much the insurance company will pay if you lose your home completely.

Many companies that will write a traditional site built home will also write a modular home. Since they conform to all local codes and appreciate in value, they are have a similar risk profile to a stick home. Some companies may not write a home if it was built in a factory so check with your agent to be sure you will be covered in the event of a loss.

The most difficult to insure is a manufactured home that is rented to another person. It can be very hard to find a company that will write a landlord policy on a mobile home. We can write all of these homes and we would be happy to try and write your business if you give us a chance.

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Reasons A Commercial Policy Is Better

Many commercial forms will include coverages such as rental loss and additions and alterations coverage.

To increase liability on a commercial form from the typical $300,000 to even $2,000,000 is minimal (around $50 per year for the entire contract—regardless of number of units) with most carriers

The generic pollution exclusion found on most personal type contracts is addressed by some commercial policies to consider/cover pollution that emanates from a heating source (i.e. carbon monoxide).

On a master (AKA blanket) policy, as you grow and add properties, the rate drops proportionately. Personal policies only insure one property per policy.

Related to #4, in the event of a catastrophe, such as a tornado, the deductible applies once for the occurrence, not per location.

The deviations to carry higher deductibles are cost-effective under a commercial policy much more so than most personal contracts. In other words, carrying a $2500 deductible on the commercial policy may save 15% of premium versus a $1000 deductible. On a personal policy, the same change my only generate half the savings gives some food for thought on consideration of catastrophic deductibles such as a $5000 or more especially as you add more units.

Many insurers limit the number of units they will insure under personal contracts, and as you’ve discovered, will not consider non-personally owned properties for coverage. I don’t like the idea of the insurance company limiting my asset protection options in this manner.

The fire and hazard policy you have may be a named-peril policy only. The commercial policy can and should be written on an all-risk form. All-risk simply means that unless a peril is excluded, it is covered.

With many commercial policies, you have the ability to add newly acquired properties up to $250,000 automatically for 90 days. You many times have up to 90 days to call and add the location to the policy.

No matter how cautious and guarded you are when driving you aren’t sure of what might possibly happen to you on the road. In a blink of an eye, an accident may happen to you. Are you well protected from the potential damage to your car and other?

Vehicle or auto insurance is one of the important things a car owner should consider. It is purchased to provide protection against the liability from vehicular accidents. For all areas it is imperative that motor vehicles should have insurance before going to public roads.

Purchasing car or auto insurance is quite hard thing to do especially if you are not sure of what kind of coverage you want to obtain. You must consider the policy and its price. Is the price worth for the coverage it comprises? The degree of the coverage varies greatly as to what circumstances are covered. Some auto insurance can cover the items stipulated in the policy like the insured party, vehicle, third parties or the passengers, third party and theft, while some can just cover the vehicle against theft, fire damage or accident damage alone.

The insurance carrier is another important thing to consider since he is the one who will be in-charge of taking care of your needs in case an accident happens to you. Research the company’s financial stability and how well they paid all their clients’ claims. Simple knowledge about their market status will be your guide in deciding on your car insurance.

Seek the help of your states department insurance website. Don’t hesitate to ask a lot of questions. If you’re buying through an insurance agent try to dig up as many answers regarding the auto insurance. Ask about the price and the claims covering it, and the things needed to be done when filing one.

Ask your family and friends. They are the most accurate source of information when it comes to buying auto insurance. Most likely, ask about the best company and what they like about it. There’s no harm in asking and knowing important facts for your safety.

Before buying any insurance it is imperative you know what cover you need before getting a quote. This is even more important if you go through an agent or get quotes over the phone. If you don’t know what you need the agent will only be too glad to sell you something you do not need and is too expensive.

More often than not getting sick is one of the unexpected situations people don’t want to get into. Not only is it a waste of physical energy but also a waste of money, because you have to pay a lot of medical bills.

With the global economy still in crisis, health care seem to get affected as well. Hospitalization, cost of medicine, and the doctors professional fees are on the rise. The increase in new treatments and more intensive diagnostic testing especially in developed countries are just some of the significant drivers for the continuous rising of health care cost. Without health cover you will be left in a predicament where you are financially drained.

People need to realize how health cover can help their life. Many think that obtaining it can cost a lot of money. This is true to some extent but if you will only dig and search deeper, you may actually find the right program for your health care needs. Don’t fret with the cost of getting a health plan, especially if you have a pre-existing health problem because you had better think twice about not getting cover or canceling the one you have already. Doing this could prove costly because many insurers will not want to cover existing conditions or will make you up to a year before they will include it.

Nowadays, the world of medical insurance is getting bigger and broader. Its evolution brings comprehensive changes in terms of programs catering to every individual needs. Its concepts have also given the people greater vigilance, encouraging them to save more for themselves and to look carefully at what they are paying for.

Here is a reality check, not all can afford an expensive health care program especially if you are one of those minimum wage earners. The scheduled health insurance plan or the association plan is one way of providing yourself with health care. All you need to do is join an existing association for membership and you will be offered hospitalization and surgical benefits. This kind of program is not comprehensive and the benefits are only limited, but it is much better than having no health cover.

Now that you have learned the importance of having a health plan it is time to decide. Never hesitate to do research about the kind of health care program you want to obtain and the company offering it. The best place to start is on the internet. By comparing policies and prices you can soon get the right cover without spending too much.

A life insurance policy is essentially a form of business deal with the insurance firm and the person who seeks for the insurance. There are some insurance providers which grant the policy seeker stakes in the firm. This form of insurance policy is particularly advantageous to those families where there is only a single breadwinner.

Life is very unpredictable. We cannot foresee what causality awaits your loved one or the only income earner of your family. Accidents are unpreventable. However you can reduce the impact of any such unfortunate events by taking a life insurance policy. The cheap life insurance quotes that are available these days will give you an idea of your investments in advance.

To receive the insurance policy benefits, the policy bearer will have to remit an amount on a monthly basis or yearly basis depending on the convenience. On the event of an accident, the company will make the payment in case the insurance bearer is suffering from any physical disability in the form of damage or loss of limbs or any of the crucial bodily functions such as hearing, sight and so on. The insurance coverage will not apply in situations wherein the bearer voluntarily takes risk. The activities involved are namely paragliding, parachuting, air travel and service in a war to mention a few.

There are numerous life insurance brands available in the domestic, national and the global market. Hence a thorough research would be apt before zeroing in on any specific plan. The cheap life insurance quotes available in the internet is an easy method of assessing the insurances.

One has to assess if the policy will bring under its purview the funeral expenses and the catering expenses wholly or partly in addition to providing further financial assistance to the family. Hence one has to scrutinize the agreement as well as the policy documents before signing the contract.

It is needless to say that the plan you choose will have to be based on your affordability and budget. A cheap life insurance quote is full of details as to the criteria of investment leaving you enough time to ponder whether the policy suits you or not. Do not be deluded with the brand label and the gloss of ads. There are numerous small scale, yet reliable local insurance firms around.

It is advisable to go for a cheap insurance quote that suits your preferences. If the insurer expires, to claim the insurance amount, the nominee has to produce the legal death certificate. The nominees will be mentioned by the insurer itself at the time of signing the agreement.

The companies are very much alert these days due to the increasing number of false accidental deaths, illness and other insurance claims. Despite being a punishable offence, the number of people turning on to desperate measures like these to make money and get rich through easy means is on the rise. In the present day, the insurance coverage can be extended not only to adults and children but pets as well. The insurance coverage extends to anybody whom we care for and love these days.

Regardless of your age, life insurance is a necessary investment that will help protect your loved ones financial future. In order to acquire a cheap life insurance policy that provides the appropriate amount of coverage that meets your needs, it is important to understand why life insurance rates vary from state to state.

There are a number of reasons why the cost of life insurance varies among states. Each state has its own insurance codes that regulate life insurance policies. States use the codes to regulate claims and provide certain provisions to protect their residents. Each state regulates such aspects as when a claim must be paid out following a death and the time period that is allowed for a person to cancel a policy without incurring a penalty fee. As well, insurance companies also look at a number of research statistics that will help them assess the risk of death. Such statistics can include: the population rates of such health conditions as obesity, cancer, diabetes, heart disease, strokes…etc. As well, they also look at the rates of external influences causing death that can include the murder rate and car accident rate where one resides. The higher the rates of acquired illnesses causing death, then the higher the life insurance rates will likely be. If you live in a state with a low life expectancy rate, you will pay more for your life insurance premiums.

To counter the low life expectancy rate in order to acquire affordable life insurance, one can take a number of measures that puts them in a low risk category such as eating healthy, exercising, and making sure they maintain regular doctor check ups so as to detect any early stages of disease such as breast cancer and heart disease. No matter what state you live in, it is important to comparison shop in order to find the cheapest life insurance policy.

Term, whole and universal life insurance are the the types of policies you are most likely to encounter when you set out to get quotes or, in general, examine life insurance policies. There are, however other types that not many people know much about. This may be because the companies or the agents themselves just haven’t taken the time to promote them much, or perhaps, the agents are not qualified to market some of them. The other policies I refer to are the graded premium life policies, the variable life and the variable universal life policies.

Term Insurance

Term policies come in many forms. Available to you are the 5 year, 10 year, 15 year, 20 year, 25 year, 30 year and term to age 65 plans. The one you choose would depend on how long you want to keep the protection. The time depends on whether you are single, married, whether you have dependent children or not. You may want to think about whether you have a dependent spouse as well.

Business people buy term insurance as well, whether we are talking about a business partnership, a sole proprietorship, an s corporation, a c corporation or a limited liability company.

Whole Life

When deciding between term, whole and universal life or any of the other types you may want to know which is the most popular with the consumer. The whole life policy is the most bought policy. Actually, the consumer prefers modified whole life policies or may be the non participating straight life policy as it costs less than the participating plan.

People like the idea that this policy lasts until they die even if death occurs at age 100. Another thing to keep in mind is that term policies don’t last very long. Why! I will tell you why. Apart from the fact that term policies are designed to last for a limited period of time these policies tend to be the first thing people drop when they have financial problems.

There is no cash value and the feeling is that they can always get another one. They pay very little attention to the fact that when they are ready to replace the policy it will cost more as this person is now older. There may also be the problem that the purchaser may not be in as good a physical condition as when the policy was initially purchased. This would result in a higher premium. The new policy may be rated, that means additional cost, or it may be declined by the company.

Whole life has a cash surrender policy, or a loan value.

Universal Life

Although this type of insurance is term based it does have a savings element attached, thus it is similar in many ways to the whole life policy.

Other Types

Term, whole and universal life policies are most purchased so most people have some idea how they work but what of graded premium, variable life and variable universal life. Graded premium life is simply a whole life policy with an initial premium a little more than half the cost of the regular whole life plan at the age of purchase. The premiums increase uniformly for a specific period, 5 or 10 years, then levels off at a little more than they would be had the premium cost been level from the beginning.

Variable universal life is permanent life insurance based and also includes an investment portfolio, like a mutual fund. Variable life insurance is whole life based and also has investments attached. A special license is needed to sell these policies.