Insurance Archives - Page 24 of 29

Travel Insurance Tips

December 11, 2017 By Anna Brantley

Courtesy of iii.org

Before leaving on vacation, make sure you have adequate insurance. Vacations can sometimes cost thousands of dollars, so it is important to have the proper insurance protection in case the cruise or tour operator goes bankrupt or you need to cancel the trip due to illness or other unforeseen events.

There are four major types of travel insurance, although you can also purchase packages that offer several options, including Trip Cancellation, Lost Baggage, Medical, Dental, Emergency Evacuation, 24 Hour Traveler Assistance, Baggage Delay, Travel Delay, and Accidental Death Coverages. Some policies also have options for Collision/Damage coverage for rented cars.

1. Trip cancellation insurance

This would reimburse you if the cruise line or tour operator goes out of business. It would also provide coverage if you have to cancel the trip due to sickness, a death in the family or another calamity listed in the policy.

In addition, if you or an immediate family member becomes seriously ill or is injured during the trip most policies would reimburse you for the unused portion of the vacation.

The cost is generally five to seven percent of the price of the vacation, so a $5,000 trip would cost roughly $250 to $350 to insure.

Trip cancellation is very different from a Cancellation Waiver that many cruise and tour operators offer. Waivers are relatively inexpensive, costing approximately $40 to $60. They provide coverage if you have to cancel the trip, but they have many restrictions. They must be purchased when you book the trip and will usually not cover you immediately before departure (the time period most people cancel) or after the trip has begun. Most importantly, waivers are not insurance. Cancellation Waivers are not regulated by the state department of insurance, so if your tour or cruise operator gets into financial difficulty, you may not be able to collect.

2. Baggage insurance or personal effects coverage

This would provide coverage if your personal belongings are lost, stolen or damaged during the trip.

To insure $1,000 worth of personal belongings for a week, it would cost roughly $50 per year.

Before purchasing this type of coverage, find out how much insurance the airline or trip operator provides for your belongings.

Also, check your homeowners or renters policy. It will usually provide coverage for off-premises theft. Therefore, if your luggage is stolen, your insurer will pay to replace it, less the deductible.

If you are traveling with expensive electronic equipment, jewelry or sporting gear, it might be more cost-effective to purchase a floater or endorsement to your homeowners or renters policy. The cost to insure a $1,000 ring would be between $10 and $40 annually. This would provide full coverage for the item, anywhere in the world, usually for one year.

3. Emergency medical assistance

This provides insurance and medical assistance for travelers. It would cover you if you had to be airlifted off a mountain due to a skiing or hiking accident, or if you had to stay for a prolonged period of time in a foreign hospital. It would also provide coverage if you got seriously sick or were injured and needed to be flown home. Some commercial airlines require very sick passengers to travel on a stretcher with a doctor. This means that you might have to purchase 10 or more seats on a plane at a possible cost of over $10,000.

Before purchasing this type of coverage, check with your own health insurance carrier. Find out what type of coverage you have when traveling abroad and if there are any limits. Also, ask if the policy will pay to fly you home or to a country with first-rate medical care.

4. Accidental death

This provides a variety of coverages if you or a family member die on the trip. If you have a good life insurance plan or made other financial provisions for your loved ones, this may be duplicate insurance.

Your credit card company may provide travel-related services and coverage. You can also purchase travel insurance from either a travel agent or you can buy directly from an insurer that specializes in this type of coverage.

Drunk Driving Facts

November 26, 2017 By Anna Brantley

Courtesy of iii.org

Alcohol is a major factor in traffic accidents. Based on data from the U.S. Department of Transportation, National Highway Traffic Safety Administration (NHTSA), there was an alcohol-impaired traffic fatality every 51 minutes in 2015.

Alcohol-impaired crashes are those that involve at least one driver or a motorcycle operator with a blood alcohol concentration (BAC) of 0.08 percent or above, the legal definition of drunk driving. According to NHTSA 10,265 people died in alcohol-impaired crashes in 2015, up 3.2 percent from 9,943 in 2014. In 2015 alcohol-impaired crash fatalities accounted for 29 percent of all crash fatalities.

The definition of drunk driving had been consistent throughout the United States until March 2017. All states and the District of Columbia defined impairment as driving with a BAC (blood alcohol concentration) at or above 0.08 percent. In addition, they all have zero tolerance laws prohibiting drivers under the age of 21 from drinking and driving. Generally the BAC limit in these cases is 0.02 percent. In March 2017, the governor of Utah signed a bill, effective December 30, 2018, that lowered the limit defining impaired driving for most drivers to 0.05 percent BAC, the lowest in the nation.

Anti-drunk-driving campaigns especially target drivers under the age of 21, repeat offenders and 21-to 34-year-olds, the age group that is responsible for more alcohol-related fatal crashes than any other. Young drivers are those least responsive to arguments against drunk driving, according to NHTSA.

To make sellers and servers of liquor more careful about to whom and how they serve drinks, 42 states and the District of Columbia have enacted laws or have case law holding commercial liquor servers legally liable for the damage, injuries and deaths a drunk driver causes. Thirty-nine states have enacted laws or have case law that permit social hosts who serve liquor to people who subsequently are involved in crashes to be held liable for any injury or death. (See chart below and Background.)

Recent developments

Latest data from the National Highway Traffic Safety Administration (NHTSA) indicates that the 10,265 alcohol-impaired fatalities in 2015 accounted for about one out of three highway deaths (29 percent) on U.S. roads. There were 9,943 such fatalities in 2014.
Ignition interlock systems require drivers to blow into a breathalyzer-like device to ensure the individual is sober before allowing the vehicle to start. According to a report released in January 2017 by the Johns Hopkins Bloomberg School of Public Health, traffic fatalities have declined by 7 percent in states that mandate ignition interlocks for first-time drunken-driving offenders. The researchers studied traffic fatalities for about five years before states began passing interlock laws in the late 1980s through 2013, when all states required them under some circumstances. See Background, Repeat Offenders.
Drunk Driving by Gender: Latest NHTSA data show that 14 percent of women drivers involved in fatal crashes in 2015 (1,761 drivers) were alcohol-impaired, only 1 percentage point lower than in 2006. In comparison, 21 percent of male drivers involved in fatal crashed were alcohol impaired in 2015, down from 24 percent in 2006.
Drunk Driving by Age: According to data from NHTSA, in 2015 the percentage of drivers in fatal crashes who were alcohol impaired was highest for 21 to 24 year old drivers, at 28 percent, followed by 25 to 34 year old drivers, at 27 percent, and 35 to 44 year old drivers, at 23 percent. The percentage of alcohol-impaired drivers in fatal crashes was 19 percent for 45 to 54 year olds, 16 percent of 16 to 20 year olds, 14 percent for 55 to 64 year olds, 9 percent for 65 to 74 year olds and 6 percent for drivers over the age of 74.
Drunk Driving by Vehicle Type: NHTSA data for 2015 show that 27 percent of motorcycle drivers involved in fatal crashes were alcohol impaired, compared with 21 percent of passenger car drivers and 20 percent of light truck drivers. Only 2 percent of large-truck drivers involved in fatal crashes in 2015 were alcohol impaired.
Social Host Liability: The Massachusetts Supreme Court ruled in February 2012 that social hosts could be held liable for off-premise injury to people caused by the drunk driving of a guest only if the host served alcohol or made it available. People who host “bring your own” parties are free from liability, even if the guest is underage. The court rejected an attempt by the parents of an injured 16-year-old to sue a party’s 18-year old host. The younger person suffered injuries in a crash in a car driven by someone who brought his own alcohol to the party. At issue was the fact that the driver, not the party host, supplied the liquor. Although the lawsuit contended that the host should be found negligent for allowing the driver to drink at her home, the court said that earlier rulings showed that hosts can’t be responsible for their guests’ drinking if they don’t control the supply of alcohol. Massachusetts law and court cases have held social hosts liable if they supply alcohol (See chart: STATUTES OR COURT CASES HOLDING ALCOHOLIC BEVERAGE SERVERS LIABLE).
Also in February 2012 the New Mexico Supreme Court said that circumstantial evidence of a driver’s intoxication was sufficient to support a jury finding that the driver was intoxicated, overruling a decision in a 2004 case. Evidence presented in the earlier trial showed that a driver who struck and killed a motorcyclist had a 0.09 percent blood alcohol content five hours after the crash. The owners of the gas station where the driver worked and consumed a number of beers bought at the gas station pleaded ignorance of the driver’s condition. The court ruled that the blood test results were enough to prove that the driver was intoxicated. The ruling holds liquor sellers responsible for liability where evidence is available under the existing dram shop law.

How to Lower Car Insurance Costs

November 20, 2017 By Anna Brantley

Courtesy of iii.org” target=”_blank” rel=”nofollow”>iii.org
One of the best ways to keep your auto insurance costs down is to have a good driving record.

Listed below are other things you can do to lower your insurance costs.

1. Shop around

Prices vary from company to company, so it pays to shop around. Get at least three price quotes. You can call companies directly or access information on the Internet. Your state insurance department may also provide comparisons of prices charged by major insurers. (State insurance department phone numbers and Web sites can be found on the back cover.)

You buy insurance to protect you financially and provide peace of mind. Its important to pick a company that is financially stable. Check the financial health of insurance companies with rating companies such as A.M. Best (www.ambest.com) and Standard & Poors (www.standardandpoors.com/ratings) and consult consumer magazines.

Get quotes from different types of insurance companies. Some sell through their own agents. These agencies have the same name as the insurance company. Some sell through independent agents who offer policies from several insurance companies. Others do not use agents. They sell directly to consumers over the phone or via the Internet.

Dont shop by price alone. Ask friends and relatives for their recommendations. Contact your state insurance department to find out whether they provide information on consumer complaints by company. Pick an agent or company representative that takes the time to answer your questions. You can use the checklist on the back of this brochure to help you compare quotes from insurers.

2. Before you buy a car, compare insurance costs

Before you buy a new or used car, check into insurance costs. Car insurance premiums are based in part on the cars price, the cost to repair it, its overall safety record and the likelihood of theft. Many insurers offer discounts for features that reduce the risk of injuries or theft. To help you decide what car to buy, you can get information from the Insurance Institute for Highway Safety (www.iihs.org).

3. Ask for higher deductibles

Deductibles are what you pay before your insurance policy kicks in. By requesting higher deductibles, you can lower your costs substantially. For example, increasing your deductible from $200 to $500 could reduce your collision and comprehensive coverage cost by 15 to 30 percent. Going to a $1,000 deductible can save you 40 percent or more. Before choosing a higher deductible, be sure you have enough money set aside to pay it if you have a claim.

4. Reduce coverage on older cars

Consider dropping collision and/or comprehensive coverages on older cars. If your car is worth less than 10 times the premium, purchasing the coverage may not be cost effective. Auto dealers and banks can tell you the worth of cars. Or you can look it up online at Kelleys Blue Book (www.kbb.com). Review your coverage at renewal time to make sure your insurance needs havent changed.

5. Buy your homeowners and auto coverage from the same insurer

Many insurers will give you a break if you buy two or more types of insurance. You may also get a reduction if you have more than one vehicle insured with the same company. Some insurers reduce the rates for long-time customers. But it still makes sense to shop around! You may save money buying from different insurance companies, compared with a multipolicy discount.

6. Maintain a good credit record

Establishing a solid credit history can cut your insurance costs. Most insurers use credit information to price auto insurance policies. Research shows that people who effectively manage their credit have fewer claims. To protect your credit standing, pay your bills on time, dont obtain more credit than you need and keep your credit balances as low as possible. Check your credit record on a regular basis and have any errors corrected promptly so that your record remains accurate.

7. Take advantage of low mileage discounts

Some companies offer discounts to motorists who drive a lower than average number of miles per year. Low mileage discounts can also apply to drivers who car pool to work.

8. Ask about group insurance

Some companies offer reductions to drivers who get insurance through a group plan from their employers, through professional, business and alumni groups or from other associations. Ask your employer and inquire with groups or clubs you are a member of to see if this is possible.

9. Seek out other discounts

Companies offer discounts to policyholders who have not had any accidents or moving violations for a number of years. You may also get a discount if you take a defensive driving course. If there is a young driver on the policy who is a good student, has taken a drivers education course or is away at college without a car, you may also qualify for a lower rate.

When you comparison shop, inquire about discounts for the following:*

Antitheft Devices
Auto and Homeowners Coverage with the Same Company
College Students away from Home
Defensive Driving Courses
Drivers Ed Courses
Good Credit Record
Higher deductibles
Low Annual Mileage
Long-Time Customer
More than 1 car
No Accidents in 3 Years
No Moving Violations in 3 Years
Student Drivers with Good Grades

*The discounts listed may not be available in all states or from all insurance companies.

The key to savings is not the discounts, but the final price. A company that offers few discounts may still have a lower overall price.

Reviewed by:

Federal Citizen Information Center
www.pueblo.gsa.gov

National Consumers League
www.nclnet.org

Cooperative State Research, Education, and Extension Service, USDA
www.csrees.usda.gov

FAQ FEMA & Insurance

November 12, 2017 By Anna Brantley

Courtesy of iii.org

For those who do not have the right insurance, or who need help beyond their coverage, government programs can sometimes step in to help with post-disaster recovery. Here is a round-up of the most frequently asked questions about the disaster assistance offered by FEMA.

Q. How do I apply for FEMA disaster assistance?

A. You can apply at www.DisasterAssistance.gov or m.fema.gov, or call the FEMA Helpline at 800-621-3362. If you have a speech disability or hearing impairment and use a TTY, call 800-462-7585 directly. If you use 711 or Video Relay Service (VRS), call 800-621-3362.

Q. What happens after I apply for disaster assistance?

A. FEMA will mail you a copy of your application and a copy of Help After a Disaster: Applicant’s Guide to the Individuals and Households Program that will answer many of your questions.

If you do not have insurance: An inspector will contact you after you apply to schedule a time to meet you at your damaged home.
If you have insurance: You need to file your insurance claim and provide FEMA with a decision letter (settlement or denial) from your insurance company before FEMA issues an inspection.
- There is an exception for damages caused by flooding; if you have flood insurance, FEMA will issue an inspection before receiving a copy of your flood insurance decision letter to evaluate your eligibility for temporary living expenses since these are not covered by flood insurance.
About 10 days after the inspection FEMA will decide if you qualify for assistance. If so, FEMA will send you a check by mail (or direct deposit) with an explanation of what the money covers (i.e. rent or home repair).
If FEMA determines that you are ineligible for any reason, you will receive a letter and be given a chance to appeal. Appeals must be in writing and mailed within 60 days of the determination. Read the letter carefully for the reason of ineligibility before filing your appeal.
If you get a Small Business Administration (SBA) Disaster Loan application in the mail, you must complete and return it to be considered for a loan or certain types of grant assistance, such as transportation, personal property, and moving and storage.

Q. Why didn’t I receive rental assistance when my home can’t be lived in?

A. If you cannot live in your home because of disaster damage and you did not receive rental assistance, please contact FEMA to check on your status. It could be that during the inspection you indicated that you were unwilling to relocate. If so, FEMA would not move forward to issuing a rental assistance check for you to move to another location.

Q. I received a rental assistance check, how do I find a new place to rent?

A. The FEMA Housing Portal is intended to help individuals and families, who have been displaced by a disaster, find a place to live. The portal consolidates rental resources to help individuals and families find available rental units in their area. This information can be accessed by visiting www.fema.gov and searching “Housing Portal,” or by calling 800-621-3362.

Q. Will my family get assistance faster if we each apply separately?

A. No. If two members of the same household apply for the same damaged home, FEMA assistance could actually be delayed. If more than one member of a household has applied, the additional registrants should call the FEMA Helpline, 800-621-3362 to withdraw their applications. Once this occurs, the original registration for the household can be processed for assistance.

Q. If I received a settlement from my insurance but still have additional needs, what can I do?

A. As soon as you receive an insurance settlement, you should provide a copy to FEMA and identify any unmet needs you have. Although FEMA cannot duplicate benefits that your insurance provided, FEMA may be able to assist you with lost essential items not covered by insurance and can also help you find resources through other recovery partners.

Q. Why did I get a different amount of home repair assistance than my neighbor?

A. Each survivor’s case is unique. There are several factors involved, including insurance status and the extent and type of damage found during the home inspection. If you feel that the assistance you received does not cover your needs for example, the funding you received for repairs are less than the estimates you’ve received from contractors and you have not yet met the FEMA maximum grant you can appeal.

Q. Will FEMA provide additional rental assistance beyond the initial assistance period if I still cannot return to my home?

A. Rental assistance can be provided for up to 18 months from the date of declaration while you are setting up your permanent housing plan. After your initial period of assistance, you will be sent a letter on how to “recertify” if you need additional rental assistance.

Q. Could FEMA assistance affect my Social Security benefits, federal taxes, food stamp (SNAP) eligibility, or Medicaid?

A. No. FEMA assistance does not affect benefits from other federal programs and is not considered taxable income.

Q. I’ve already cleaned up the damage to my home and made repairs. Is it too late to register once the work is done?

A. No. You may be eligible for reimbursement of your cleanup and repair costs, even if repairs are complete. The important thing is to document the expenses you incur. It is a good idea to take before-and-after photos for your records.

Q. If I received disaster assistance last year, could I get it again this year?

A. Assistance may be available if you also suffered damages from a previously federally declared disaster.

Q. My child is a U.S. citizen, but I am not. Can I apply for FEMA disaster assistance?

A. If anyone in an affected household is a U.S. citizen, non-citizen national or qualified alien (a “Green Card” holder), they are eligible to apply for FEMA disaster assistance. If a minor child is eligible by these criteria, even when other members of the family are not, the family can file an application on the child’s behalf.

In this case, all identification documents have to be in the child’s name and Social Security number. The copy of the child’s Social Security card and birth certificate are acceptable verification. This information can be mailed to FEMA or brought to a Disaster Recovery Center.

Additional resources

For more information, visit the FEMA website.

What You Need to Know About Claims

October 1, 2017 By Anna Brantley

Courtesy of iii.org

After a disaster, you want to get back to normal as soon as possible, and your insurance company wants that too! You may get multiple checks from your insurer as you make temporary repairs, permanent repairs and replace damaged belongings. Here’s what you need to know about claims payments.

The initial payment isn’t final

In most instances, an adjuster will inspect the damage to your home and offer you a certain sum of money for repairs, based on the terms and limits of your homeowners policy. The first check you get from your insurance company is often an advance against the total settlement amount, not the final payment.

If you’re offered an on-the-spot settlement, you can accept the check right away. Later, if you find other damage, you can reopen the claim and file for an additional amount. Most policies require claims to be filed within one year from the date of disaster; check with your state insurance department for the laws that apply to your area.

You may receive multiple checks

When both the structure of your home and your personal belongings are damaged, you generally receive two separate checks from your insurance company, one for each category of damage. If your home is uninhabitable, you’ll also receive a check for the additional living expenses (ALE) you incur if you cant live in your home while it is being repaired. If you have flood insurance and experienced flood damage, that means a separate check as well.

Your lender or management company might have control over your payment

If you have a mortgage on your house, the check for repairs will generally be made out to both you and the mortgage lender. As a condition of granting a mortgage, lenders usually require that they are named in the homeowners policy and that they are a party to any insurance payments related to the structure. Similarly, if you live in a coop or condominium, your management company may have required that the building’s financial entity be named as a co-insured.

This is so the lender (and/or, in the case of a coop or condo, the overall building), who has a financial interest in your property, can ensure that the necessary repairs are made.

When a financial backer is a co-insured, they will have to endorse the claims payment check before you can cash it.

Depending on the circumstances, lenders may also put the money in an escrow account and pay for the repairs as the work is completed. Show the mortgage lender your contractor’s bid and let the lender know how much the contractor wants upfront to start the job. Your mortgage company may want to inspect the finished job before releasing the funds for payment to the contractor.

If your home has been destroyed, the amount of the settlement and who gets it is driven by your policy type, its specific limits and the terms of your mortgage. For example, part of the insurance proceeds may be used to pay off the balance due on the mortgage. And, how the remaining proceeds are spent depend on your own decisions, such as if you want to rebuild on the same lot, in a different location or not rebuild at all. Tthese decisions are also driven by state law.

Your insurance company may pay your contractor directly

Some contractors may ask you to sign a “direction to pay” form that allows your insurance company to pay the firm directly. This form is a legal document, so you should read it carefully to be sure you are not also assigning your entire claim over to the contractor. When in doubt, call your insurance professional before you sign. Assigning your entire insurance claim to a third party takes you out of the process and gives control of your claim to the contractor.

When work is completed to restore your property, make certain the job has been completed to your satisfaction before you let your insurer make the final payment to the contractor.

Your ALE check should be made out to you

Your check for additional living expenses (ALE) has nothing to do with repairs to your home. So, ensure that this check is made out to you alone and not your lender. The ALE check covers your expenses for hotels, car rental, meals out and other expenses you may incur while your home is being fixed.

Your personal belongings will be calculated on cash value, first

You’ll have to submit a list of your damaged belongings to your insurance company (having a home inventory will make this a lot easier). Even if you have a replacement value policy, the first check you receive from your insurer will be based on the cash value of the items, which is the depreciated amount based on the age of the item. Why do insurance companies do this? It is to match the remaining claim payment to the exact replacement cost. If you decide not to replace an item, youll be paid the actual cash value (depreciated) amount for it.

To get replacement value for your items, you must actually replace them

To get fully reimbursed for damaged items, most insurance companies will require you to purchase replacements. Your company will ask for copies of receipts as proof of purchase, then pay the difference between the cash value you initially received and the full cost of the replacement with an item of similar size and quality. You’ll generally have several months from the date of the cash value payment to purchase replacements; consult with your agent regarding the timeframe.

In the case of a total loss, where the entire house and its contents are damaged beyond repair, insurers generally pay the policy limits, according to the laws in your state. That means you can receive a check for what the home and contents were insured for at the time of the disaster.

Next steps: We can’t reinforce it enough – claims are easier to make when you have a home inventory ready!