TOP TEN FACTS every consumer needs to know about the National Flood Insurance Program (NFIP)

1. Everyone lives in a flood zone.
You do not need to live near water to be flooded.  Floods are caused by storms, melting snow, hurricanes, water backup due to inadequate or overloaded drainage systems, as well as broken water mains.

2. Flood damage is not covered by homeowners policies.
You can protect your home, business, and belongings with flood insurance from the NFIP.  You can insure your home with flood insurance up to $250,000 for the building and $100,000 for its contents.

3. You can buy flood insurance no matter your flood risk.
It does not matter whether your flood risk is high or low. Anyone in a community that participates in the NFIP can buy building and/or contents coverage, with very few exceptions. Some Costal Barrier System (CBRS) areas, Otherwise Protected Areas (OPAs) and buildings principally below ground or entirely over water are not eligible for National Flood Insurance.  It is a good idea to buy even in lower risk areas because 25 to 30 percent of flood insurance claims come from low-to-moderate risk areas.

4. The low-cost Preferred Risk Policy is ideal for homes and businesses in low-to-moderate-risk areas.
Homeowners can insure buildings and contents for as little as $119 per year.  Business owners can insure buildings and contents for as little as $550 per year.  Residential renters can insure contents for as little as $39 per year.

5. Flood insurance is affordable.
About 90 private insurance companies nationally offer affordable flood insurance backed by the federal government. Contact your local agent.  Policies are available to homeowners, condo owners, apartment owners, renters, and
business owners alike.

6. Flood insurance is easy to get.
You can buy flood insurance from private insurance companies and independent insurance agents; call yours today! You can purchase flood insurance with a credit card.

7. Contents coverage is separate, so renters can also insure their belongings.
Up to $100,000 contents coverage is available for homeowners and renters.  Whether you rent or own your home or business, make sure to ask your insurance agent about contents coverage. It is not automatically included with the building coverage (except under the Preferred Risk Policy).

8. Up to a total of $1 million in flood insurance coverage is available for non-residential buildings and contents.
Up to $500,000 of coverage is available for non-residential buildings.  Up to $500,000 of coverage is available for the contents of non-residential buildings.

9. There is usually a 30-day waiting period before coverage goes into effect.
Plan ahead so you are not caught without insurance when a flood threatens your home or business.

10.Federal disaster assistance is not the answer.
Federal disaster assistance is only available if the President declares a disaster.  Flood insurance pays even if a disaster is not declared.

Business Liability Insurance: Do You Know What Is and Isn’t Covered?

Liability insurance is something most business simply must have. But do you really understand what it does and doesn’t cover? Whether you’re looking for your first liability insurance provider, or already have a policy in place, it’s important to know what’s protected – and what might not be.

Here are some business liability insurance coverage rules of thumb. To be sure about your specific business needs, be sure to consult with a qualified business insurance agent.

What’s typically covered

Business is inherently risky, but business liability coverage safeguards against many known and unknown risks. General liability insurance coverage protects you, your business and your employees from claims involving bodily injury or property damage. Policies shield you from the expense of out-of-court settlements, litigation and judgments awarded by courts.

Lawsuits, investigations and settlements

If damages are filed against you, or you’re sued, general liability insurance covers the insurance company’s investigation and attorney expenses, any judgment or settlement, medical expenses in case of injury, and bonds if they must be subsequently posted.

Injury damages

Claims can arise from bodily injury or property damages resulting from accidents on your premises or from your products, your operations or advertising for your business.

Miscellaneous

Liability insurance can also cover things you may not have thought about such as advertising injury in the event your company’s marketing violates someone’s copyright. Business liability insurance coverage even offers some protection against alcohol-related accidents resulting, for example, from an office holiday party (as long as your company is not in an alcohol-related business, such as the manufacture or distribution of alcohol).

What’s typically NOT covered

Don’t look to a general liability insurance policy to protect you and your business from all claims and expenses that your company might face. For example:

Employee injuries

General liability insurance does not cover worker compensation claims if an employee is hurt on the job. Liability insurance for those claims can be purchased under a separate worker compensation policy.

Professional Mistakes

General liability insurance doesn’t include coverage for professional liability insurance claims. If you’re in the business of providing professional services to a client (such as a veterinarian, accountant or business consultant) you need professional liability insurance. This insurance covers professional mishaps that may occur as you offer your opinion, solution, service or recommendations in the course of business.

Auto related coverage

General business liability coverage is no substitute for business auto insurance. A hired auto (for cars rented for business) and non-owned auto endorsement will protect your company in case of a lawsuit, but it will not cover damage done to your owned or leased vehicles — nor will it protect you or your employee personally.

Punitive damages

Though there can be exceptions, general business liability policies rarely pay for punitive damages resulting from a lawsuit.

Intentional acts

General business liability insurance does not cover damages or injuries resulting from expected or intentional acts. For example, if an employee were to assault a customer, and the customer sues your business,your liability coverage would not cover the damages. But if the employee was defending himself or the company from a criminal act, the liability insurance would provide coverage.

Your work

This refers to the “workmanship” exclusion, and is common in general liability policies. Insurance policies do not respond to what would normally be picked by a company’s warranty for their work.

Insurers tip-toe into coastal markets in Alabama, Mississippi | al.com

A handful of new insurers have trickled into the coastal markets of Alabama and Mississippi in the last year, offering new options to some homeowners.

Coastal American, PURE, American Strategic, Wilshire, Republic and Southern Fidelity aren’t household names, and may not increase competition enough to lower prices.

Still, the appearance of new carriers means that a few thousand policyholders could have more options in each state at a time when options for wind coverage have been dwindling. And it indicates that some insurers believe they can make money off the high premiums paid by Gulf Coast homeowners. If they’re right, others could follow.

In Alabama, insurers have announced plans to cancel wind coverage for more than 50,000 policyholders since 2004′s Hurricane Ivan. Farmers Insurance Group, Allstate Corp. and Alfa Mutual group are in the process of making significant cuts.

Just last week in Mississippi, officials discovered that USAA was dropping wind coverage on 1,550 policies in the three southernmost counties.

"We’re treading water to some degree," said Mississippi Insurance Commissioner Mike Chaney. "It seems like I take three steps forward and fall back two."

Regulators have been courting the new companies. Mississippi officials count 20 firms that have entered the state since 2005′s Hurricane Katrina, and Chaney estimates at least half are doing business on the coast.

Alabama Commissioner Jim Ridling will meet with insurers in Orlando, Fla., this week in hopes of luring more firms to the state.

"We hope that more fruit will be borne from this conference to add capacity to the marketplace," said Ragan Ingram, Ridling’s chief of staff.

American Strategic Insurance Co. decided to enter Alabama last year after meeting with Ridling, Ingram said.

Florida-based firms, which sprang up as national insurers pulled back from the hurricane-exposed state, are among the top nominees to move into other states with hurricane risks.

Some have limited experience and relatively small financial reserves, when compared to large, national firms. But, "there are companies down there that have the ability to come here and write," said Bruce White of Gulf Shores-based Whitehaven Insurance.

Regulators would also like to discourage firms that enter a state, write policies for one year, and then pull back, as Max Specialty Insurance Co. did several years ago.

Gulfport-based Coastal American Insurance Co. was formed as a response to insurers’ retreat from the Mississippi coast. President Ned Dolese, also an investor in the firm, said that founders were fed up with what seemed to be a never-ending crisis.

"We basically just got frustrated," he said.

Coastal American, which has fewer than 1,000 policies so far, insists that customers who buy its wind coverage also buy a policy from the federal government’s National Flood Insurance Program.

The company’s own policy contains language that Dolese said is meant to ensure that damage is covered after a storm regardless of the cause. That’s an effort to prevent the widespread disputes over the cause of damage that dogged Mississippi’s recovery after Katrina.

Dolese said Coastal American is likely to seek approval to operate in Alabama. Company leaders would likely set up a separate subsidiary and seek to raise money from Alabama investors, he said.

In Alabama, the new entrant selling policies is Wilshire Insurance Co., a unit of IAT Reinsurance Co. Ltd. Reinsurers are also big players in other new companies, holding shares in Coastal American and American Strategic.

The cost of reinsurance is a big factor in high coastal premiums, and it’s not clear how reinsurers’ involvement will play out.

Wilshire’s work in Alabama is being managed by New York-based Coastal Risk Underwriters LLC. Andy DiLoreto, the chief executive of Coastal Risk Underwriters, said Wilshire is only operating in Mobile and Baldwin counties. That’s unusual — many firms try to build business away from the coast.

In Mobile County, Wilshire will consider homes that are north of Interstate 10 and west of Interstate 65, according to a brochure circulated to agents. In Baldwin County it will take homes more than three miles from the Gulf and more than 1,000 feet from Mobile Bay. In both counties, homes must be insured for more than $200,000 and located on ground more than 20 feet above sea level.

Unlike many firms, the company is inspecting each home that it insures. Wilshire is also strongly encouraging homeowners to strengthen their homes in exchange for lower rates.

"We are doing a tremendous amount of work to assess the individual risk," DiLoreto said. He said Wilshire has written 400 to 600 Alabama policies since it started in 2010, with the goal of increasing that business three to five times this year.

Two other companies that are taking on new business in Mississippi are also taking the picky approach. Chaney said the "very selective" Dallas-based Republic Group has written more than 1,200 policies so far in Mississippi, on the way to a goal of 2,000. Safeco Insurance, part of the Liberty Mutual Group, agreed last year to write 500 policies in coastal Mississippi.

Safeco spokesman Mike Plaster said that the company is still building up to that number. "Outside of that, at this time, neither Liberty Mutual nor Safeco is offering wind coverage for new customers in coastal areas of Alabama and Mississippi," he wrote in an e-mail.

Chaney said Florida-based Southern Fidelity Insurance Co. is also expected to enter Mississippi, after setting up shop in Louisiana.

In Alabama, Privilege Underwriters Reciprocal Exchange, known as PURE, is seeking to insure homes worth more than $1 million across the state, including those in Mobile and Baldwin counties.

The Miami-based company is now licensed in 18 states, but doesn’t currently plan to enter Mississippi.

Chief Executive Officer Ross Buchmueller extolled PURE’s status as a member-owned company. He said that at for-profit firms, "your compass points to the shareholder and not the policyholder."

The company is touting its high-touch service to its rich clients, as well as coverage for up to $50,000 of art, jewelry and other personal effects. It also promises a $2,500 fixed deductible.

Also coming to Alabama is American Strategic, a St. Petersburg, Fla., firm that launched into Florida’s challenging market and has grown to 12 states, including Louisiana and Texas.

Deepak Menon, the firm’s marketing director, said ASI hopes to get its rates approved by Alabama regulators and launch as early as May. Once here, it will limit the business it writes on the coast.

"It is imperative that we have a diversification of risk," Menon said. 

Insurers tip-toe into coastal markets in Alabama, Mississippi | al.com

Driving in Snow and Ice

The best advice for driving in bad winter weather is not to drive at all, if you can avoid it.

Don’t go out until the snow plows and sanding trucks have had a chance to do their work, and allow yourself extra time to reach your destination.

If you must drive in snowy conditions, make sure your car is prepared (TIPS), and that you know how to handle road conditions.

It’s helpful to practice winter driving techniques in a snowy, open parking lot, so you’re familiar with how your car handles. Consult your owner’s manual for tips specific to your vehicle.

Driving safely on icy roads

1.Decrease your speed and leave yourself plenty of room to stop. You should allow at least three times more space than usual between you and the car in front of you.
2.Brake gently to avoid skidding. If your wheels start to lock up, ease off the brake.
3.Turn on your lights to increase your visibility to other motorists.
4.Keep your lights and windshield clean.
5.Use low gears to keep traction, especially on hills.
6.Don’t use cruise control or overdrive on icy roads.
7.Be especially careful on bridges, overpasses and infrequently traveled roads, which will freeze first. Even at temperatures above freezing, if the conditions are wet, you might encounter ice in shady areas or on exposed roadways like bridges.
8.Don’t pass snow plows and sanding trucks. The drivers have limited visibility, and you’re likely to find the road in front of them worse than the road behind.
9.Don’t assume your vehicle can handle all conditions. Even four-wheel and front-wheel drive vehicles can encounter trouble on winter roads.

If your rear wheels skid…

1.Take your foot off the accelerator.
2.Steer in the direction you want the front wheels to go. If your rear wheels are sliding left, steer left. If they’re sliding right, steer right.
3.If your rear wheels start sliding the other way as you recover, ease the steering wheel toward that side. You might have to steer left and right a few times to get your vehicle completely under control.
4.If you have standard brakes, pump them gently.
5.If you have anti-lock brakes (ABS), do not pump the brakes. Apply steady pressure to the brakes. You will feel the brakes pulse — this is normal.

If your front wheels skid…

1.Take your foot off the gas and shift to neutral, but don’t try to steer immediately.
2.As the wheels skid sideways, they will slow the vehicle and traction will return. As it does, steer in the direction you want to go. Then put the transmission in “drive” or release the clutch, and accelerate gently.

If you get stuck…

1.Do not spin your wheels. This will only dig you in deeper.
2.Turn your wheels from side to side a few times to push snow out of the way.
3.Use a light touch on the gas, to ease your car out.
4.Use a shovel to clear snow away from the wheels and the underside of the car.
5.Pour sand, kitty litter, gravel or salt in the path of the wheels, to help get traction.
6.Try rocking the vehicle. (Check your owner’s manual first — it can damage the transmission on some vehicles.) Shift from forward to reverse, and back again. Each time you’re in gear, give a light touch on the gas until the vehicle gets going.

http://blog.al.com/breaking/2010/12/utilities_gives_tips_to_keep_p.html

HUNTSVILLE, AL – Huntsville Utilities is warning homeowners to take precautions so pipes don’t freeze tonight causing expense and inconvenience.

 Here are the steps to take, according to a utilities press release:

1. Disconnect and drain outdoor hoses. Detaching the hose allows water to drain from the pipe. Otherwise, a single hard, overnight freeze can burst either the faucet or the pipe it’s connected to.

 2. Insulate pipes or faucets in unheated areas. If you have pipelines in an unheated garage or cold crawl space under the house, wrap the water pipes before temperatures plummet. Hardware or building supply stores will have good pipe wrapping materials available.

 3. Seal off access doors, air vents and cracks. Repair broken basement windows. Winter winds whistling through overlooked openings can quickly freeze exposed water pipes. But don’t plug air vents your furnace or water heater needs for good combustion.

 4. Find the master shutoff. It may be near the water heater or the washing machine. More likely it’s where the water line comes into your house from the street. If a pipe bursts anywhere in the house – kitchen, bath, basement or crawl space – this valve turns it off. So find it now and paint it a bright color or hang a tag on it. Be sure everyone in the family knows where it is and what it does.

 5. Allow steady water flow. In some places you’re advised to leave a steady drip or pencil-lead-thin stream of water flowing from a bathroom faucet during the worst of a cold spell.

http://blog.al.com/breaking/2010/12/utilities_gives_tips_to_keep_p.html

Properly insuring a rental car can be confusing, frustrating and downright daunting. Unfortunately, many consumers do not even think about car rental insurance until they get to the counter, which can result in costly mistakes—either wasting money by purchasing unnecessary coverage or having dangerous gaps in coverage.
Before renting a car, the I.I.I. suggests that you make two phone calls—one to your insurance agent or company representative and another to the credit card company you will be using to pay for the rental car.

Follow this link for the rest of the article

III – Do I need separate rental car insurance?

State Farm rate history:

• 2008:  0.9 percent decrease statewide.
• 2009:  19.1 percent increase statewide.
• 2010:  8.4 percent increase statewide.

Alfa rate history:

• 2008: No change.
• 2009: 5.8 percent to 6.5 percent statewide. 
• 2010: 18 percent statewide.

Allstate Indemnity rate history:

• 2008: 9.9 percent statewide.
• 2009: No change. 
• 2010: 9.9 percent statewide.

Sources: Press-Register files, Alabama Department of Insurance

Home insurance rates on the rise in Alabama | al.com

Alabama’s biggest home insurers are boosting their rates, citing storm-related losses and a need to increase reserves.

Illinois-based State Farm Fire & Casualty Co., the dominant insurer in the state, plans to increase its home insurance premiums by an average of 8.2 percent on Nov. 1, according to a rate bulletin posted on the Alabama Insurance Department website. State Farm’s homeowners market share approaches 27 percent in the state.

Montgomery’s Alfa Mutual Insurance Co., the No. 2 insurer with 17.2 percent of state homeowner premiums, increased rates by 18 percent on Sept. 1, state records show.

Allstate Indemnity Co. of Illinois, Alabama’s third-largest insurer with a 6.7 percent market share, boosted its homeowner rates in the state by 9.9 percent on Sept. 13.

Ragan Ingram, chief of staff for the state insurance department, said the rate increases were approved after insurers showed how they have been affected by recent storm-related losses.

"What we’re seeing is an increase in wind-related losses from tornadoes," he said.

The home insurance rate hikes come less than a month after the National Weather Service reported that as of mid-September, Alabama had just 18 tornadoes so far in 2010, the fewest in 60 years. On average, about 51 twisters pass through Alabama each year, according to Weather Service meteorologist Jim Westland.

Ingram said it is the severity of recent storms, not their frequency, that is driving up rates. "There has been a lot of losses related to tornadoes and hail losses as well," he said.

Alfa spokesman Jeff Helms said the insurance company based its decision to raise rates on "past and future expected losses" related to claims.

"We have seen increased claimant losses over the past several years and are seeing an increased frequency of tornadoes and hail storms throughout the state," Helms said. "Our goal is that we position ourselves to be able to provide our policyholders with the coverage they need in case something happens."

Shane Robinson, spokesman for Allstate’s Southeast region, said the 9.9 percent increase for Allstate Indemnity Co. customers in Alabama is for policies that renew on or after Oct. 28.

"As the numbers of claims in Alabama have increased, so have the costs," Robinson said. "Allstate is making responsible business decisions to remain strong and positioned to deliver on its promise to our customers."

Robinson said the impact will vary, but three-fourths of affected customers will see an average increase of less than $60 a year.

"We always encourage customers to work with their Allstate agent to review their current coverage to ensure all discounts are being applied, which can help keep their premium as low as possible," he said.

Efforts to reach officials at State Farm were unsuccessful Monday.

Join the conversation by clicking to comment or e-mail rwilliams@bhamnews.com.

© 2010 al.com. All rights reserved.

Home insurance rates on the rise in Alabama | al.com

Read more: http://www.insurancejournal.com/news/national/2010/08/24/112704.htm#ixzz0xky9kfle

Many Americans admit to having a knowledge gap when it comes to what their home insurance actually covers, according to a new survey.

Nearly one third (31 percent) of Americans don’t know how much their most valuable assets — their homes — are insured for, and an additional 46 percent don’t know how much coverage they have for their homes’ contents, such as furniture and clothing, say the results of a survey by Zogby International for MetLife Auto & Home. Additionally, many homeowners aren’t aware of coverage overlaps that may exist, which could result in opportunities to save money.

The first of a two-part "Insurance Literacy" survey, tested consumer knowledge of insurance basics, including homeowners, condo, and renter’s insurance.

Common misconceptions that could lead to coverage gaps were:

– Thirty percent of homeowners believe their insurance coverage is based on the current market value of their home. Actually, the available coverage limit for homeowners insurance is based on the cost to rebuild the home, a mistake that could lead to confusion for homeowners trying to evaluate whether they have the right amount of insurance.

– More than two thirds (71 percent) of those surveyed believe insurance pays for the full cost to rebuild their property in the event of a major loss, such as a fire or other natural disaster. But nearly all insurance companies "cap" the amount paid to rebuild the dwelling following a total loss, unless additional coverage is purchased. Furthermore, the coverage is subject to a deductible, and certain causes of loss, such as water damage caused by the natural disasters of flooding, are excluded completely.

– Almost three-quarters (73 percent) believe insurance will pay the full cost to replace personal belongings in the event of a loss. However, depreciation is usually factored in, unless optional replacement coverage is selected, and the coverage, regardless of the chosen settlement method, is subject to a deductible.

– Sixty percent believe insurance will pay for the full cost of replacing valuables, such as jewelry and collectibles. Most insurance policies contain a payment cap for replacing valuables, although additional coverage can be purchased, and the coverage is subject to a deductible.

– For a major loss, nearly two-thirds (64 percent) of those surveyed expect their insurance to cover any building code mandated upgrades that are necessary. Without an endorsement/rider, most home insurance does not cover required upgrades located in an undamaged portion of the home.

"More than two-thirds of consumers surveyed also said they’d rather pay a higher premium than be told that a loss isn’t covered," said Bill Moore, president of MetLife Auto & Home. "To ensure this doesn’t happen, consumers can find the best value by learning more about their policies and selecting the coverage that best meets their needs, rather than simply shopping for the lowest premium."

On a positive note, with purse strings tight, opportunities exist for consumers to become more aware of what their current policies do cover in the event of a loss, to avoid insurance overlaps and unnecessary out-of-pocket expenses. For example:

– Electronically downloaded and stored entertainment, such as music, ring tones, etc., can be expensive to replace without easy access to free re-downloads. However, more than 90 percent of homeowners didn’t know that insurance can extend coverage to electronic data.

– Almost half (47 percent) didn’t realize there’s no need to secure additional coverage to insure the personal property of college-age children living on campus. This is covered under the standard homeowners contract, subject to its terms and conditions.

– Many homeowners would be surprised to learn that damage to appliances and wiring from a power surge would be covered by their insurance policy. More than half (59 percent) didn’t think it would — limiting out-of-pocket expenses to a deductible.

Natural Disasters

Many homeowners exhibit confusion about insurance coverage for natural disasters and unforeseen occurrences. The majority of homeowners understand that flood damage is written on a separate policy from their standard insurance policies. However, many consumers are still misinformed — or unsure — about the coverage available for other types of events.

In some cases, homeowners are aware of the potential for a loss, but don’t realize what coverage they have against a particular hazard. Among other things:

– Although 83 percent believe foundation damage from earth movement is very serious or somewhat serious, only 37 percent know they aren’t covered for this under the standard homeowners policy.

– More than a quarter (28 percent) incorrectly believe they’d be covered for an earthquake or volcanic eruption, and the same amount aren’t sure one way or the other. Most standard policies exclude this peril.

– For water damage from a sewer or sump-pump back up, 67 percent of homeowners believe this would be covered. Without the appropriate rider, most policies don’t cover this.

The Zogby/MetLife Auto & Home homeowners insurance survey sample consisted of interviews with 1,196 adults who have homeowners, condo, or renter’s insurance, and who are living in a household with a telephone. The interviewing was conducted May 26, to June 9, 2010.

Source: MetLife Inc.

Read more: http://www.insurancejournal.com/news/national/2010/08/24/112704.htm#ixzz0xky9kfle

This past week we had 3 home burglaries and 1 UBEV (Unlawful Breaking and Entering a Vehicle).  Set your alarm even if you only leave home for a short period of time.

The 1st burglary occurred on Cherokee Road at approximately 2:00 P.M. on 5-10-10.  The back door was kicked in, but nothing was taken.  This home had an alarm system.  It was on and nothing was taken.  The thieves left the scene after they activated the alarm.

Shortly after the burglary on Cherokee Road (approximately 10 minutes later) a house on the west end of Brookwood Road had an attempted entry.  That attempt activated the resident’s alarm and the thieves left the scene.

The 2rd burglary occurred on Brookwood Road at approximately 2:18 P.M. on 5-10-10.  We were able to determine the approximate time of this burglary because a friend of the resident spotted a vehicle in their drive at 2:18 P.M..  She thought it was someone doing yard work. The thieves entered through an unlocked back door.  Three televisions and a computer were taken.  There was no alarm system.

The 3rd burglary occurred on 5-11-10 on Pine Ridge Road at 10:30 A.M..  A citizen spotted a white male attempting to enter the garage area of a home.  The door was pried open, but the offender had left the scene when the police arrived.  Thanks to the citizen, nothing was taken.

The chain of events with our burglaries would indicate that the thieves started at Cherokee Road and proceeded on to Brookwood Road until they broke into a house with no alarm system.  The homes with the alarms were spared the loss of property.

There was 1 UBEV “reported” this past week and it occurred on Park Lane Court South.  This UBEV occurred on the 4th or 5th of May so it didn’t occur this past week.  A camera was taken from a vehicle.  The vehicle was not locked.