Insurance Claim

Everyone remember what happened all over the South when Hurricane Katrina hit in 2005? The insurance companies denied thousands of claims because they said that the damages were due to flood, not wind. So, for those who did not have flood insurance, their claims were denied. The insurance companies paid smaller claims for the wind damages.

Well, the insurance companies got busy since then and have convinced 48 of 50 state Departments of Insurance to approve new policy language. So, understand that this new ripoff is brought to you with the blessing of your state’s Insurance Commissioner.

The Anti-Concurrent Causation Clause is just technical-sounding enough to begin getting your eyelids to slam shut. But don’t leave me! This is one of the worst policy amendments that the insurance industry has ever done.

The new policy language is a part of the language and forms of the Insurance Service Office (ISO), the organization that submits standard policy language to the regulators. Companies like State F*arm Insurance have already filed their own language, but it’s almost identical.

Here’s what the Clause basically says: If any percentage of the damage is caused by a covered peril (like wind) and any smaller percentage of the damage is caused by a peril not covered (like flood), the insurance company can DENY THE ENTIRE CLAIM!!

Here is the exact language from the policy, found under the “Exclusion” section of a homeowners policy:

We do not insure under any coverage for any loss which would not have occurred in the absence of one or more of the following excluded events. We do not insure for such losses regardless of (a) the cause of the excluded event; or (b) other causes of the loss; or (c) whether other causes acted concurrently or in any sequence with the excluded event to product the loss; or (d) whether the event occurs suddenly or gradually, involves isolated or widespread damage, arises from natural or external forces, or occurs as a result of any combination of these.

Then, the policy lists a number of exclusions.

Look at this example. If you live along the Gulf Coast, and hurricane winds caused 90% of your damage, and 10% was caused by the storm surge (not covered in a homeowners policy, the insurance company can and will deny all coverage for all of the damage!

So, for those homeowners living in states where hurricanes, tornados, blizzards, or any kind of severe weather occurs, your policy may not provide you any coverage.

What can you do to fight back?

1. Shop for a policy that does not have this new policy language in it.
2. If you can’t find a policy in your state without that new language, contact your Insurance Commissioner and submit written objections and complaints.

High cost home insurance penalizes everyone, but really takes a toll in states where there a lot of different kinds of losses.

The concept of insurance was created to spread risk of loss among a large group of people, so that each person bore a small portion of the risks. So, when we are discussing the kinds of risks that drive up homeowners insurance costs, that means that the person who pays premiums for his home in upper Michigan is partially subsidizing the person who has a home in coastal Louisiana.

Hurricanes and tornadoes are just big wind storms. But they are not the only disasters that make insurance premiums rise. Fires, hail and floods all work to drive up premiums, and insurance companies pay out more claims each year for the combined smaller risks than for hurricanes.

One huge risk that the insurance companies no longer fear is mold. Up until 2003, policyholders submitted about as many mold claims each year as fire claims. And, the trend on mold claims was increasing. But, after the September 11, 2001 tragedy, insurance companies quietly convinced all of the insurance commissioners in America to allow them to exclude mold claims for coverage.

But, despite the insurance companies getting rid of most mold exposures, they still have to insure the other risks to homes. So, here are the Top Ten most expensive states in which to insure a home. We’ll start with the least, and proceed to Number One.

10. Kansas – Author Frank Baum placed the book “The Wizard of Oz” in Kansas for a good reason...it’s considered “tornado alley.”

9. Alabama – This state experiences tornadoes, hail, big thunderstorms and hurricanes. Plus, its building codes are more strict than its neighbors, driving up repair costs.

8. Rhode Island – Small state, long coastal exposure. So, hurricanes that sweep up the Eastern Seaboard pound this state.

7. California – “Earthquake Central”, plus wildfires, mudslides and coastal storms make this state an expensive place to insure a home.

6. Florida – sticks out into the Caribbean like a sore thumb, and gets smacked by hurricanes often. One of the big reasons insurance is so expensive here is that scores of insurers have pulled out of Florida. The biggest player in the market there is Citizens Property, a high-risk fund operated by the state. Their numbers are not added into the Florida totals, or it would likely be Number One.

5. Mississippi – lax building codes increase risks, as well as being a coastal state with hurricanes, tornadoes, hail and floods.

4. District of Columbia – Building costs in DC are higher than most places in the nation, as well as being considered Ground Zero for terrorism risks.

3. Oklahoma – Big winds plus big tornadoes make this state one of the highest priced states.

2. Louisiana – shares the same challenges as Mississippi, but adds a large population center below sea level.

And, in First Place (or Worst Place!)...Texas! Here, you can find all of the disasters in one place. Hurricanes, floods, hail, windstorms, and earthquakes all make it rough for insurance companies to stay profitable writing business in Texas.

But, take heart, insurance company fans! With new policy language called the “Anti-Concurrent Causation Clause,” insurance companies can now deny ALL claims where two or more risks cause damage. To learn more, read “The Insurance Industry’s Latest Scam” at this forum.

If you have experienced a property loss, whether fire, wind, flood or other, you need to know winning insurance claim strategies. The insurance company will not tell you the claims process, but I will. I will show you how to take control of your insurance claim, and add hundreds or even thousands more dollars to your claim settlement. For more information, go to the website listed below.

Business insurance is vital for a new business. If you are in the planning stages for starting a new business, you’ll need to plan for your insurance coverage. You likely already have insurance for your home and automobile. But the insurance needs for a business are somewhat different and you must address all of your new business exposures.

Here is a list of the four basic components of a business insurance policy:

1. Property:
a. The building you own. If you’re leasing a building, your lease may require you to insure the building.
b. Your business personal property, including your furniture, machinery, computers, office equipment, inventory and raw materials.
c. Your vehicles.

2. Liability: If your business will be dealing with the public, there is a chance that you will cause a loss to others due to negligence. This covers errors you may make and personal injury or property damage to others.

3. People: If you will have employees, Workers Compensation insurance will be necessary. You might also consider Health Insurance and/or Life Insurance for your employees. “Keyman” life insurance protects the business from loss of a key owner or employee. Worker’s Compensation is mandatory, other coverages are optional.

4. Income: The lifeblood of any business is its income. If that income is interrupted or stopped, the business will likely not survive. Business Interruption coverage provides replacement of the lost income due to a covered peril.

When you are preparing your business plan for your new business, you should be able to generate the information necessary, such as property values, number of employees and anticipated revenue. Share this information with your insurance agent so that together you can design a business insurance policy for you that meets all your needs.

If you have experience a Business Insurance loss, whether property, liability, people or income, you need to know winning insurance claim strategies. The insurance company will not tell you the claims process, but I will. I will show you how to take control of your insurance claim, and add hundreds or even thousands more dollars to your claim settlement. For more information, go to the website listed under my photo.

Home safety is easy to overlook. Is your home safe? I’ll bet you’ve never looked at home safety through the eyes of an insurance adjuster. But it will benefit you to think about all of the ways you could have an insured loss at your home.

Here’s a simple quiz. If you have done all of the tips after the question, you can answer “Yes!” If not, you’ve got some work to do.

1. Is your home secure?
-Install deadbolt locks on all exterior doors.
-Install outdoor lights next to all exterior doors, and make sure the bulbs are working. Connect the outdoor lights at doors to motion detectors that go off when someone approaches.
-Install a monitored security system that has sensors at every opening, including second story windows.
-Install curtains or blinds on windows so people outside cannot easily see what’s inside.

2. Is your home safe?
-Install one smoke detector on each level of the home.
-Install a radon gas detector in the basement.
-Keep the areas in front of doors, and sidewalks cleared of leaves and snow.
-Make sure there is a fence around any outdoor pool.
-Place a home fire extinguisher in the kitchen, one in the garage, and one in another room.
-Clean out the lint filter on your dryer every time you use it.
-Get your fireplace chimney cleaned once a year.
-Get your furnace checked once a year.

3. Are you living safely?
-When you have guests in your home, monitor their alcohol consumption, and don’t allow them to drive if they’ve had too much to drink.
-Be extremely careful when working outside on ladders. A fall can seriously injure or kill you.
-Insist that any workers on your property provide you with their certificate of insurance. No exceptions.
-Be extremely careful when working inside. Use a safe small ladder or solid stool, don’t jump up on a chair to reach overhead.
-Keep your staircases clear. Don’t stack stuff on stairs and then try walking around it.
-Don’t start to cook on the stove and then walk away. Cooking fires are number one for home damage.
-Don’t plug a bunch of electrical devices into a cheap extension cord.
-Don’t cover extension cords with rugs or run them under carpet.

If you were able to answer “Yes” on all three questions....CONGRATULATIONS!! You will likely never have to have an insurance adjuster visiting your home!

If you have experienced a property loss, whether fire, wind, flood or other, you need to know winning insurance claim strategies. The insurance company will not tell you the claims process, but I will. I will show you how to take control of your insurance claim, and add hundreds or even thousands more dollars to your claim settlement. For more information, go to my website at: www.insurance-claim-secrets.com

A massive ice storm hit New England on the December 12, 2008 weekend, leaving millions of homes and businesses without electrical power. Thousands of homes and vehicles were damaged as ice-laden trees and branches fell.

Now, you’ll begin the cleanup, recovery and repair process. Many of you will be submitting insurance claims for damage to your home, business or vehicle. Let me share a few strategies to help you add hundreds or even thousands more dollars to your claim settlement.

Vehicle Damage Claims

1. Remember that when something falls on your vehicle, it will be covered by the “Other Than Collision” or “Comprehensive” coverage, not your Collision coverage. Make sure you know what your OTC deductible is.

2. Take your damaged vehicle to the body shop of YOUR CHOICE, not the choice of the insurance company. It’s YOUR vehicle, not theirs.

3. Insist on Original Equipment Manufacturer (OEM) parts, not cheap aftermarket parts. The insurance company has a legal duty to return you car to its pre-loss condition. Cheap aftermarket parts are not as safe as OEM parts.

4. Perform a very careful inspection and test drive of your vehicle after repairs are completed. If you need to, have a qualified mechanic do the inspection for you. Document any uncompleted repairs, and make sure they get done right then.

5. If your vehicle is a total loss, get written appraisals from dealers of your choice to be sure that the insurance company pays you all that you are entitled to collect.

Building Damage Claims

1. Mitigate your damages...board up and tarp the home or business if necessary. The costs are covered.

2. Call a restoration contractor, not just a remodeling contractor.

3. Get your chosen contractor to meet with the insurance adjuster and agree on the scope of damages. Don’t just accept an estimate written by the adjuster.

4. If your home is too damaged to live in, your policy may have Additional Living Expense coverage. Carefully document all your expenses over and above your normal expenses while you’re living in a hotel or apartment.

5. If you have heavy damage to your home or business, consider consulting with a Public Adjuster to help you with your claim. They are claims professionals, and can customarily help you maximize your settlement amount.

If you have experienced a property loss, you need to know winning insurance claim strategies. The insurance company will not tell you the claims process, but I will. I will show you how to take control of your insurance claim, and add hundreds or even thousands more dollars to your claim settlement. For more information, go to my website at: www.insurance-claim-secrets.com

Cash value life insurance is the most widely sold life insurance product in the world today. It is also the life insurance product that is WORST for your Finances.

These products are also known as:

• Whole Life
• Universal Life
• Variable Life
• Interest Sensitive Life
• Non-Participating Life (no “dividends”)
• Participating Life (pays “dividends”)

Why are cash value products a bad choice for your insurance needs? I could write a book about this, but here are five simple reasons.

1. Too expensive. All life insurance is priced at a cost per thousand dollars of coverage. Cash value life insurance is high priced. Term life insurance is very low priced per thousand. Better to buy term life insurance to make sure you have enough coverage.

2. Borrowing your own cash value. After you’ve paid a few years of premium into your policy, it starts to accumulate some stored-up money, which the insurance company calls “cash value” or “surrender value.” It is the amount of extra premium you have paid ahead that has not been used to cover your pure insurance costs. If you want your cash value, you must either surrender your policy and lose your coverage, or borrow the money from the insurance company and pay it back.

3. The insurance company keeps your cash value when you die. Your beneficiaries can’t have both your cash value and your death benefit. So, if you had paid into your $100,000 cash value policy for 40 years, and had accumulated cash value of $25,000, the insurance company pays $100,000 and keeps the cash value.

4. Surrender and cancellation penalties. In the first 1-10 years of many cash value policies, the cancellation penalties are so high that you cannot get out any cash value at all...or only a small percentage.

5. Generally life insurance “dividends” are tax free and you do not report them on your tax return. That's because life insurance “dividends” are not true dividends at all, like what is paid when you own a share of common stock. In life insurance, the term “dividend” is used to deceive policyholders into thinking that life insurance is a comparable investment to securities. The IRS says that insurance “dividends” are a return of premiums that you previously paid for the life insurance policy.

I’ve tried to keep this as simple as possible. These five reasons should be enough to convince you that cash value life insurance is a poor product. If you need life insurance, look first at term life insurance. It is very inexpensive and allows you to buy the amount you need.

Car insurance claim scams happen in cities and rural areas. They happen at both day and night. They happen in sunshine and rain, at rush hour and on quiet roads. You need to know that there are people out on the roads that are planning and looking for someone just like you to catch in their scams. It’s all about filing fraudulent claims and collecting money from you and your insurance company.

Here’s just one example of a claim scam...The Staged Rear-End Collision.

A driver will quickly merge into your lane of traffic directly in front of you, then slam on their brakes. They are hoping that your car will hit their car in the rear end.

It doesn’t matter if they have Collision insurance coverage on their car, because if you hit their car, you’re at fault. Here in the state of Georgia, a traffic ticket for “failure to yield” is almost a certainty if you rear-end another car for any reason. And, if you’re ticketed, your insurance company is going to have a hard time proving that it wasn’t your fault.

The Car Repairs Scam

The other driver will collect money from your insurance company for repairs to his car. He may take his car to the body shop of his choice. Sometimes, the body shop is a partner in the scam, writing a huge estimate for repairs that may or may not ever get done. This part of the scam happens pretty quickly, and settlement usually happens pretty fast.

The Bodily Injury Scam

The driver will usually fake an injury. If there are other people in the car, it is likely that all of them will fake injury. These rear-end collisions are perfect for scammers, since injuries like whiplash are soft-tissue injuries and very difficult to prove. So, they might drag out an injury claim for months. Sometimes, the driver/claimant’s doctor, chiropractor or attorney may be part of the scam. The medical bills will mount up and the attorney will make a settlement demand, usually far in excess of the medical bills alone. For example, the claimant’s medical bills might total $10,000, and the attorney will make a demand for $50,000.

Another part of the Bodily Injury Scam is loss of income for the claimant. They might try to hit you for partial disability, either temporary or permanent. They might even try total disability. Remember, in this scam, ALL of the passengers will make the same claim for damages.

Can you see how fast the claim can go from a fender-bender to a huge claim with a demand of hundreds of thousands of dollars?

You can prevent this type of scam befalling you. Here are some tips:

• Keep plenty of distance between you and the car ahead of you AT ALL TIMES.

• Stay alert while driving, don’t allow yourself to be distracted inside your own car.

• Keep cell phone use while driving at a minimum. People develop “attention blindness” when they’re using their cell phones.

• Make sure you have a disposable camera in your glovebox at all times. If you do find yourself in a rear-end collision, use your disposable or cell phone camera to take plenty of photos of the damages on both cars. Take photos of the driver and all passengers.

Only YOU can protect yourself from being a victim of a Car Insurance Claim Scam.

If you have experienced a car insurance loss, you need to know winning insurance claim strategies. The insurance company will not tell you the claims process, but I will. I will show you how to take control of your insurance claim, and add hundreds or even thousands more dollars to your claim settlement. For more information, go to the website listed below.