Yesterday we had our regular monthly meeting of the Suffolk County Independent Insurance Agents Association. It's a great group of men and women with an extraordinary amount of knowledge and desire to do the best for their clients. The Suffolk board is known throughout the State for being one of the most proactive and thoughtful. You can see more about our activities at www.suffolkagents.com, including our bi-monthly newsletter, which I publish. The articles are written by various members on a rotating basis and cover a wide range of topics.
Yesterday we heard about efforts in the State Legislature to make the New York Property Insurance Underwriting Association (NYPIUA) permanent. NYPIUA is basically a state-owned and operated insurance company that is the carrier of last resort for fire and wind insurance. Most of the homes on Fire Island have come to be insured there, though there has been much movement away from them because coverage is limited, and folks have been building those huge houses over there. Properties in blighted city areas have also made use of NYPIUA.
The problem is that the whole operation is treated as a political football by the legislature. They renew it year by year, or for two years, even though most of them know absolutely that they can't let it run out. Usually it does actually expire at each renewal, as the State Senators horse-trade for votes on other issues. The problem is that NYPIUA is mostly used downstate in city and coastal areas, so the upstate legislators hold their votes hostage to things that they want their downstate counterparts to vote for. It is a bad situation, and it is being made much worse by the current insurance problems.
We also heard about another insurance carrier, a small one this time, who is taking action to cancel all their homeowners policies south of Sunrise Highway, and closing up for new business. As has been said here before, this whole thing is going to get worse before it gets better, unfortunately.
Thursday, May 25, 2006
Wednesday, May 17, 2006
Homeowners Insurance Actions in Florida
Today State Farm Insurance Company announced rate increase requests averaging over 70% in the state of Florida, with requests of over 200% in some areas! The bulk of this increase is likely to be approved according to National Underwriter, an industry magazine. Allstate has taken a different approach, arranging with several smaller insurance companies to take 200,000 of their customers off their hands for homeowners insurance.
As I have indicated in previous columns, there is no one solution to this issue and so creativity and innovation is called for.
As I have indicated in previous columns, there is no one solution to this issue and so creativity and innovation is called for.
Monday, May 15, 2006
There is a lot of concern today because of all the rain that is expected in the New England area, according to this morning’s NY Times (http://www.nytimes.com/). The market for Long Island homeowners insurance was already in panic mode because of the storms that are being predicted.
Last fall we had all those rains which caused hydrostatic pressure to build up and filled thousands of Long Island basements with water, and much of that was not covered by EITHER flood insurance or homeowners insurance.The question most folks have is ‘why?’ Why was that sort of water damage not covered? Isn’t that a flood, when your basement has 24 inches of water in it?
The answer, at least for the purposes of the National Flood Insurance Program (NFIP) is that it’s not. For one thing, most of that water was ground water that seeped in through the foundation. For another, a lot of it happened a good distance from ‘the water’ as most people think of it, and so even in cases where it might have been covered, they were not carrying flood insurance. That may change soon as FEMA examines ways to increase participation in the National Flood Insurance Program.
So what IS a flood? Here is a basic definition from FEMA via their official flood insurance info site, http://www.floodsmart.gov - "A general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more properties (at least one of which is the policyholder's property) from:
• Overflow of inland or tidal waters; or
• Unusual and rapid accumulation or runoff of surface waters from any source; or Mudflow; or
• Collapse or subsidence of land along the shore of a lake or similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels that result in a flood as defined above."
So, in plain English, a flood is an excess of water (or mud) on land that's normally dry.Floods often happen when bodies of water overflow or tides rise due to heavy rainfall or thawing snow.But you don't have to live near water to be at risk of flooding. A flash flood, which can strike anywhere without warning, occurs when a large volume of rain falls within a short time.More and more buildings, roads and parking lots are being built where forests and meadows used to be, which decreases the land's natural ability to absorb water. Coupled with changing weather patterns, this construction has made recent floods more severe and increased everyone's chance of being flooded.
For more info on flood insurance in New York visit the FEMA sight above or our site at http://www.floodinsuranceny.com/.
Last fall we had all those rains which caused hydrostatic pressure to build up and filled thousands of Long Island basements with water, and much of that was not covered by EITHER flood insurance or homeowners insurance.The question most folks have is ‘why?’ Why was that sort of water damage not covered? Isn’t that a flood, when your basement has 24 inches of water in it?
The answer, at least for the purposes of the National Flood Insurance Program (NFIP) is that it’s not. For one thing, most of that water was ground water that seeped in through the foundation. For another, a lot of it happened a good distance from ‘the water’ as most people think of it, and so even in cases where it might have been covered, they were not carrying flood insurance. That may change soon as FEMA examines ways to increase participation in the National Flood Insurance Program.
So what IS a flood? Here is a basic definition from FEMA via their official flood insurance info site, http://www.floodsmart.gov - "A general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more properties (at least one of which is the policyholder's property) from:
• Overflow of inland or tidal waters; or
• Unusual and rapid accumulation or runoff of surface waters from any source; or Mudflow; or
• Collapse or subsidence of land along the shore of a lake or similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels that result in a flood as defined above."
So, in plain English, a flood is an excess of water (or mud) on land that's normally dry.Floods often happen when bodies of water overflow or tides rise due to heavy rainfall or thawing snow.But you don't have to live near water to be at risk of flooding. A flash flood, which can strike anywhere without warning, occurs when a large volume of rain falls within a short time.More and more buildings, roads and parking lots are being built where forests and meadows used to be, which decreases the land's natural ability to absorb water. Coupled with changing weather patterns, this construction has made recent floods more severe and increased everyone's chance of being flooded.
For more info on flood insurance in New York visit the FEMA sight above or our site at http://www.floodinsuranceny.com/.
Wednesday, May 10, 2006
Long Island Homeowners Insurance, the Saga Continues
There’s a lot going on these days in the New York and Long Island homeowners insurance market. One of the insurance agents associations says they are aware of another major insurance company making plans to take some drastic actions on Long Island. On the other hand, efforts are being made to bring more companies into the area to help people get their cancelled insurance policies replaced. It almost has to be new companies who have not been here before in any major way, because that’s the only way to spread it out more.
Taking an active role in that effort and more has been New York State Insurance Commissioner Howard Mills. I’m not into politics, but this guy really seems to have a great depth of knowledge about what has to happen, and is working very hard on it. There is action in the State Legislature to address the problem of too many homeowners insurance policies being cancelled in one area. Meanwhile he is reaching out to other states to see if some carriers not currently writing New York homeowners insurance can be persuaded to join the fray.
I heard yesterday that he is planning some news conferences to encourage people, among other things, to buy flood insurance for their homes. Federal Flood Insurance covers different damage from homeowners insurance, but still is important to stabilizing the overall situation.
One of the problems happening in Mississippi and Louisiana right now is that people are suing the major homeowners insurance carriers to try to make them cover flood damage. Homeowners insurance clearly excludes flooding as defined by the standard flood insurance policy, specifically to make it clear that the two policies cover different things. But you can’t necessarily rely on a reasonable court finding when they perceive that the insurance companies have plenty of money and the poor people don’t have homes.
So homeowners insurance carriers on Long Island will feel more comfortable if more folks have flood insurance, even if they are not right on the water. The weather and disaster experts have said that if Katrina hit Long Island, water would reach Sunrise Highway. That covers an awful lot of homes that are not ‘on the water’.
More to come. In the meantime if you want more info on Long Island flood insurance you can visit the FEMA site for the National Flood Insurance Program at www.floodsmart.gov or our site at www.FloodInsuranceNY.com.
Taking an active role in that effort and more has been New York State Insurance Commissioner Howard Mills. I’m not into politics, but this guy really seems to have a great depth of knowledge about what has to happen, and is working very hard on it. There is action in the State Legislature to address the problem of too many homeowners insurance policies being cancelled in one area. Meanwhile he is reaching out to other states to see if some carriers not currently writing New York homeowners insurance can be persuaded to join the fray.
I heard yesterday that he is planning some news conferences to encourage people, among other things, to buy flood insurance for their homes. Federal Flood Insurance covers different damage from homeowners insurance, but still is important to stabilizing the overall situation.
One of the problems happening in Mississippi and Louisiana right now is that people are suing the major homeowners insurance carriers to try to make them cover flood damage. Homeowners insurance clearly excludes flooding as defined by the standard flood insurance policy, specifically to make it clear that the two policies cover different things. But you can’t necessarily rely on a reasonable court finding when they perceive that the insurance companies have plenty of money and the poor people don’t have homes.
So homeowners insurance carriers on Long Island will feel more comfortable if more folks have flood insurance, even if they are not right on the water. The weather and disaster experts have said that if Katrina hit Long Island, water would reach Sunrise Highway. That covers an awful lot of homes that are not ‘on the water’.
More to come. In the meantime if you want more info on Long Island flood insurance you can visit the FEMA site for the National Flood Insurance Program at www.floodsmart.gov or our site at www.FloodInsuranceNY.com.
Saturday, May 6, 2006
Flood Insurance Facts and Myths
This week we will take a little break from our discussion of the Long Island homeowners insurance crisis, and talk a bit about the other type of coverage that is very important if a hurricane hits Long Island, flood insurance. Standard insurance companies long ago decided that they could not provide coverage for flood because it is catastrophic in nature, in other words, it can cause large amounts of damage to large numbers of property all at once.
The big insurance carriers are not afraid of a fire, which might affect two or three homes, or a large building. But a flood that wipes out the entire South Shore of Long Island could put all the insurance companies out of business, as losses could easily reach hundreds of billions of dollars.
So about 40 years ago the Federal Emergency Management Agency (FEMA) was charged with designing a program for flood insurance. That was the beginning of the National Flood Insurance Program (NFIP). The idea was that loss payments would be guaranteed by the Federal flood insurance program but would be sold and serviced by both the NFIP itself and other insurance carriers who would be paid a fee for each policy they administer. Coverage is sold through local agents who choose to participate.
Communities were invited to join the NFIP flood insurance program in the late 1960's/early 1970's. As part of the requirements for joining, they had to agree to various changes in their building codes so that homes built after the date they came in to the program would be elevated beyond the 100 year flood plain level, meaning they would be much less likely to be damaged in a flood unless it was a really bad one. In return, those homes in flood hazard areas which are properly elevated get a much lower rate for their flood insurance.
All land areas are divided into flood insurance zones based on the ground elevation where they are. Naturally, the general tendency is that as you move away from the water, the hazard drops. However, it has been estimated by a number of experts that if a category 3 or better hurricane, such as Katrina, were to make a direct hit on Long Island, the water would reach Sunrise Highway in most areas, because the ground doesn't really start to rise until a few miles in.
The good news is that most homes more than a few blocks from the water are in what's called non-flood hazard areas, and flood insurance is pretty cheap for them. But near the water, and even moreso over on the barrier islands (where houses are not really damaged by floods as much as they are completely swept away) flood coverage can be fairly expensive. Our office writes a fair number of flood insurance policies for people on Gilgo Beach, Oak Beach, and Fire Island, and each one is individually rated by the flood insurance carriers based on location, elevation, and more.
Many people were required to buy flood insurance for the first time only in the past few years. As the mortgage refinancing and home equity loan boom happened over the past 5-7 years, with many homes being sold and many more seeing their equity taken out in the form of home equity loans and lines of credit, people learned something interesting about flood insurance. Since it's a federal government program, and the federal government also guarantees mortgages through the Federal National Mortgage Agency (FNMA or Fannie Mae) and GNMA (Ginny Mae), they also REQUIRE the purchase of federal flood insurance for homes in flood hazard areas. This puts more money into the National Flood Insurance Program through increased participation.
More to come in our next post.
The big insurance carriers are not afraid of a fire, which might affect two or three homes, or a large building. But a flood that wipes out the entire South Shore of Long Island could put all the insurance companies out of business, as losses could easily reach hundreds of billions of dollars.
So about 40 years ago the Federal Emergency Management Agency (FEMA) was charged with designing a program for flood insurance. That was the beginning of the National Flood Insurance Program (NFIP). The idea was that loss payments would be guaranteed by the Federal flood insurance program but would be sold and serviced by both the NFIP itself and other insurance carriers who would be paid a fee for each policy they administer. Coverage is sold through local agents who choose to participate.
Communities were invited to join the NFIP flood insurance program in the late 1960's/early 1970's. As part of the requirements for joining, they had to agree to various changes in their building codes so that homes built after the date they came in to the program would be elevated beyond the 100 year flood plain level, meaning they would be much less likely to be damaged in a flood unless it was a really bad one. In return, those homes in flood hazard areas which are properly elevated get a much lower rate for their flood insurance.
All land areas are divided into flood insurance zones based on the ground elevation where they are. Naturally, the general tendency is that as you move away from the water, the hazard drops. However, it has been estimated by a number of experts that if a category 3 or better hurricane, such as Katrina, were to make a direct hit on Long Island, the water would reach Sunrise Highway in most areas, because the ground doesn't really start to rise until a few miles in.
The good news is that most homes more than a few blocks from the water are in what's called non-flood hazard areas, and flood insurance is pretty cheap for them. But near the water, and even moreso over on the barrier islands (where houses are not really damaged by floods as much as they are completely swept away) flood coverage can be fairly expensive. Our office writes a fair number of flood insurance policies for people on Gilgo Beach, Oak Beach, and Fire Island, and each one is individually rated by the flood insurance carriers based on location, elevation, and more.
Many people were required to buy flood insurance for the first time only in the past few years. As the mortgage refinancing and home equity loan boom happened over the past 5-7 years, with many homes being sold and many more seeing their equity taken out in the form of home equity loans and lines of credit, people learned something interesting about flood insurance. Since it's a federal government program, and the federal government also guarantees mortgages through the Federal National Mortgage Agency (FNMA or Fannie Mae) and GNMA (Ginny Mae), they also REQUIRE the purchase of federal flood insurance for homes in flood hazard areas. This puts more money into the National Flood Insurance Program through increased participation.
More to come in our next post.
Thursday, May 4, 2006
Kentucky Insurance Mine Subsidence
Kentucky Insurance Mine Subsidence Fund Lowered Premium
More Information from Insurance Journal
A decrease in the rates charged to consumers living in Kentucky counties that participate in the Kentucky Mine Subsidence Insurance Fund has been announced by the Kentucky Office of Insurance in Frankfort, Ky. Due to this action, consumers in 34 Kentucky counties will see a decrease in their homeowners insurance premiums beginning this month......
More Information from Insurance Journal
Kentucky Insurance Mine Subsidence
Kentucky Insurance Mine Subsidence Fund Lowered Premium
More Information from Insurance Journal
A decrease in the rates charged to consumers living in Kentucky counties that participate in the Kentucky Mine Subsidence Insurance Fund has been announced by the Kentucky Office of Insurance in Frankfort, Ky. Due to this action, consumers in 34 Kentucky counties will see a decrease in their homeowners insurance premiums beginning this month......
More Information from Insurance Journal
homes located in Kentucky
for more information about Kentucky Homes you may want to visit this great blog Kentucky Homes A great resource for Kentucky Home buyers.
homes located in Kentucky
for more information about Kentucky Homes you may want to visit this great blog Kentucky Homes A great resource for Kentucky Home buyers.
Wednesday, May 3, 2006
Buying your first Home
Buying your first home in Kentucky,
Here is a great outline of the steps involved in buying your first home:
Here is a great outline of the steps involved in buying your first home:
"It’s a big decision to make, the jump from renter to homeowner. Being able to own a home comes with many rewards — equity buildup, tax advantages and, of course, having something you can call your very own.
When you’re considering buying, it’s a good idea to pick a real estate agent to help.
“We will offer some insight on how the real estate process works,” said Scott Johnston, president of the Aberdeen, S.D., Board of Realtors.
It’s important to let your real estate agent know exactly what you’re looking for in a property -- whether it’s a two-car garage, a finished basement, an updated kitchen or a big back yard. An agent can also help you make informed decisions about the neighborhood you are considering, the quality of the schools, taxes, traffic volume and more.
Another advantage to obtaining a real estate agent’s service is that he or she has immediate access to homes as soon as they are put on the market.
GET PRE-APPROVED
Before you start looking, get pre-approved by a lender you trust. Getting pre-approved by your lender’s mortgage specialist will help you zero in on a price range. Also, if there are any credit blemishes, they can be addressed at the early stages of the process.
There are several types of mortgages available.
A popular example is a fixed-rate mortgage. In a fixed-rate mortgage, your interest rate stays the same for the term of the mortgage. There are no surprises with a fixed-rate mortgage - a borrower always knows exactly how much his or her mortgage payment will be.
With an adjustable rate mortgage, your rate and payment can change either up or down, as often as once or twice a year. The advantage is that you may be able to afford a more expensive home because your initial interest rate will start out lower.
MONTHLY PAYMENTS
Buyers must also be aware that their payment will not only reflect the principal and interest that was borrowed, but will also include an escrow payment for real state tax, homeowners insurance and PMI. (PMI is a financial guaranty that protects lenders against loss in the event that a borrower defaults. A premium is paid by the borrower and is included in the mortgage payment.)
Depending on the location of your home, you might have to include flood insurance and association dues.
Remember that during the life of the loan, you’ll pay far more in interest than you will in principal. Because of the way loans are structured, in the first years you’ll be paying mostly interest in your monthly payments.
MAKING AN OFFER
If you make an offer on a home and your offer is rejected, don’t feel defeated — keep negotiating. It’s normal for it to be a back-and-forth process. If an appraisal comes in too low, don’t worry — it just offers up another opportunity to negotiate.
EARNEST MONEY
When you make an offer on a home, your real estate broker will put your earnest money into an escrow account.
“It can be as little as $1, but normally it’s $500, $1,000 or $2,000,” said Johnston.
This will be money the buyer needs to come up with when an offer is accepted.
Earnest money is usually applied to the buyer’s down payment or closing costs. If your offer is not accepted, the buyer’s money will be returned to you. But, if the buyer backs out of the deal, earnest money might be lost.
DOWN PAYMENT
The more money you can put into your down payment, the lower your mortgage payments will be. Some types of loans require 10-20 percent of the purchase price. For others it might be less.
“Normally, you can get by with 5 percent down, depending on price range,” Johnston said.
Buyers might be able to obtain their down payment through means other than their own checking or savings account.
Johnston said options could include an employer-sponsored program, or seller concessions (when the seller pays part of the closing costs or down payments). Buyers can also use a relative’s or friend’s “gift” for the down payment.
Ask your real estate agent or mortgage specialist for details.
HOME INSPECTION
If you are considering buying anything other than a newly constructed home, it’s a good idea to get a home inspection.
A home inspection is a visual examination of the physical structure and systems of a home, from the roof to the foundation.
“If I was going to spend thousands of dollars on a home, I’d certainly spend a couple more to make sure of the home’s condition. It will not only show you what you need to be concerned about, it will also give you peace of mind,” Johnston said.
Another way to achieve peace of mind is to purchase a home warranty program for your newly acquired property. Again, not necessary on a newly constructed home, but if you are buying an older home with used appliances, it may be well worth your while.
A home warranty is a service contract, which helps protect homeowners against the cost of unexpected covered repairs or replacement on their major systems and appliances that break down due to normal wear and tear.
“When you buy a home, the last thing you want to do is come up with another $1,500 for a new furnace,” said Johnston.
However, the warranty programs will not cover pre-existing conditions.
CLOSING
When you close on your home, you will sit with a closing agent and most likely your real estate agent. You will sign a stack of papers, you will need to provide proof of homeowner’s insurance, identification, usually a certified or cashier’s check for the down payment or closing costs (closing costs usually include an appraisal, survey, loan origination fees, title work and recording fees).
When you apply for your loan, your lender should give you an estimate of the closing costs, so there won’t be any surprises when you sign on the dotted line. From : Putting your money in your own nest egg:
Call Dick Watts Insurance 502-245-3625 for a free Homeowners Insurance Quote
Buying your first Home
Buying your first home in Kentucky,
Here is a great outline of the steps involved in buying your first home:
Here is a great outline of the steps involved in buying your first home:
"It’s a big decision to make, the jump from renter to homeowner. Being able to own a home comes with many rewards — equity buildup, tax advantages and, of course, having something you can call your very own.
When you’re considering buying, it’s a good idea to pick a real estate agent to help.
“We will offer some insight on how the real estate process works,” said Scott Johnston, president of the Aberdeen, S.D., Board of Realtors.
It’s important to let your real estate agent know exactly what you’re looking for in a property -- whether it’s a two-car garage, a finished basement, an updated kitchen or a big back yard. An agent can also help you make informed decisions about the neighborhood you are considering, the quality of the schools, taxes, traffic volume and more.
Another advantage to obtaining a real estate agent’s service is that he or she has immediate access to homes as soon as they are put on the market.
GET PRE-APPROVED
Before you start looking, get pre-approved by a lender you trust. Getting pre-approved by your lender’s mortgage specialist will help you zero in on a price range. Also, if there are any credit blemishes, they can be addressed at the early stages of the process.
There are several types of mortgages available.
A popular example is a fixed-rate mortgage. In a fixed-rate mortgage, your interest rate stays the same for the term of the mortgage. There are no surprises with a fixed-rate mortgage - a borrower always knows exactly how much his or her mortgage payment will be.
With an adjustable rate mortgage, your rate and payment can change either up or down, as often as once or twice a year. The advantage is that you may be able to afford a more expensive home because your initial interest rate will start out lower.
MONTHLY PAYMENTS
Buyers must also be aware that their payment will not only reflect the principal and interest that was borrowed, but will also include an escrow payment for real state tax, homeowners insurance and PMI. (PMI is a financial guaranty that protects lenders against loss in the event that a borrower defaults. A premium is paid by the borrower and is included in the mortgage payment.)
Depending on the location of your home, you might have to include flood insurance and association dues.
Remember that during the life of the loan, you’ll pay far more in interest than you will in principal. Because of the way loans are structured, in the first years you’ll be paying mostly interest in your monthly payments.
MAKING AN OFFER
If you make an offer on a home and your offer is rejected, don’t feel defeated — keep negotiating. It’s normal for it to be a back-and-forth process. If an appraisal comes in too low, don’t worry — it just offers up another opportunity to negotiate.
EARNEST MONEY
When you make an offer on a home, your real estate broker will put your earnest money into an escrow account.
“It can be as little as $1, but normally it’s $500, $1,000 or $2,000,” said Johnston.
This will be money the buyer needs to come up with when an offer is accepted.
Earnest money is usually applied to the buyer’s down payment or closing costs. If your offer is not accepted, the buyer’s money will be returned to you. But, if the buyer backs out of the deal, earnest money might be lost.
DOWN PAYMENT
The more money you can put into your down payment, the lower your mortgage payments will be. Some types of loans require 10-20 percent of the purchase price. For others it might be less.
“Normally, you can get by with 5 percent down, depending on price range,” Johnston said.
Buyers might be able to obtain their down payment through means other than their own checking or savings account.
Johnston said options could include an employer-sponsored program, or seller concessions (when the seller pays part of the closing costs or down payments). Buyers can also use a relative’s or friend’s “gift” for the down payment.
Ask your real estate agent or mortgage specialist for details.
HOME INSPECTION
If you are considering buying anything other than a newly constructed home, it’s a good idea to get a home inspection.
A home inspection is a visual examination of the physical structure and systems of a home, from the roof to the foundation.
“If I was going to spend thousands of dollars on a home, I’d certainly spend a couple more to make sure of the home’s condition. It will not only show you what you need to be concerned about, it will also give you peace of mind,” Johnston said.
Another way to achieve peace of mind is to purchase a home warranty program for your newly acquired property. Again, not necessary on a newly constructed home, but if you are buying an older home with used appliances, it may be well worth your while.
A home warranty is a service contract, which helps protect homeowners against the cost of unexpected covered repairs or replacement on their major systems and appliances that break down due to normal wear and tear.
“When you buy a home, the last thing you want to do is come up with another $1,500 for a new furnace,” said Johnston.
However, the warranty programs will not cover pre-existing conditions.
CLOSING
When you close on your home, you will sit with a closing agent and most likely your real estate agent. You will sign a stack of papers, you will need to provide proof of homeowner’s insurance, identification, usually a certified or cashier’s check for the down payment or closing costs (closing costs usually include an appraisal, survey, loan origination fees, title work and recording fees).
When you apply for your loan, your lender should give you an estimate of the closing costs, so there won’t be any surprises when you sign on the dotted line. From : Putting your money in your own nest egg:
Call Dick Watts Insurance 502-245-3625 for a free Homeowners Insurance Quote
insurance, dog bite claims cost insurers millions
Homeowners Insurance-Have you been cancelled for dog bite claims?
Insurance companies are now excluding certain types of dogs because of the cost of dog bite claims to the insurance industry. We are now representing companies that are willing to provide homeowners insurance even if you own a pit bull or rottweiller or other breeds. The insurance companies we work with may ask you to sign and "Animal Exclusion" form which states that dog bite claims and subsequent liability will be excluded from the policy.
Disclaimer: Every policy is different consult your own policy for coverage agreements. We are not making any coverage decisions or offers of coverage in this article.
Consider this recent reporty from the homeowners insurance industry:
Call Dick Watts Insurance 502-245-3625 for a free homeowners insurance quote.
Insurance companies are now excluding certain types of dogs because of the cost of dog bite claims to the insurance industry. We are now representing companies that are willing to provide homeowners insurance even if you own a pit bull or rottweiller or other breeds. The insurance companies we work with may ask you to sign and "Animal Exclusion" form which states that dog bite claims and subsequent liability will be excluded from the policy.
Disclaimer: Every policy is different consult your own policy for coverage agreements. We are not making any coverage decisions or offers of coverage in this article.
Consider this recent reporty from the homeowners insurance industry:
According to the institute, in 2003 dog bites accounted for about one quarter of all homeowner's insurance liability claims, costing roughly $321.6 million.From: Dog could cost you your insurance
In 2002, liability claims accounted for 6 percent of homeowners' claim costs, costing $345.5 million. The average dog bite claim in 2002, the latest data available, cost insurers $16,600.
"For these reasons, insurance companies will look at the breed of dog when deciding in terms of underwriting," Salvatore said. "There is no industry-wide policy. Each company is going to treat dogs differently."
Examples of breeds typically considered high-risk are American bulldogs, American Staffordshire terriers (also sometimes known as pit bulls), chows, Doberman pinschers and German shepherds.
Call Dick Watts Insurance 502-245-3625 for a free homeowners insurance quote.
insurance, dog bite claims cost insurers millions
Homeowners Insurance-Have you been cancelled for dog bite claims?
Insurance companies are now excluding certain types of dogs because of the cost of dog bite claims to the insurance industry. We are now representing companies that are willing to provide homeowners insurance even if you own a pit bull or rottweiller or other breeds. The insurance companies we work with may ask you to sign and "Animal Exclusion" form which states that dog bite claims and subsequent liability will be excluded from the policy.
Disclaimer: Every policy is different consult your own policy for coverage agreements. We are not making any coverage decisions or offers of coverage in this article.
Consider this recent reporty from the homeowners insurance industry:
Call Dick Watts Insurance 502-245-3625 for a free homeowners insurance quote.
Insurance companies are now excluding certain types of dogs because of the cost of dog bite claims to the insurance industry. We are now representing companies that are willing to provide homeowners insurance even if you own a pit bull or rottweiller or other breeds. The insurance companies we work with may ask you to sign and "Animal Exclusion" form which states that dog bite claims and subsequent liability will be excluded from the policy.
Disclaimer: Every policy is different consult your own policy for coverage agreements. We are not making any coverage decisions or offers of coverage in this article.
Consider this recent reporty from the homeowners insurance industry:
According to the institute, in 2003 dog bites accounted for about one quarter of all homeowner's insurance liability claims, costing roughly $321.6 million.From: Dog could cost you your insurance
In 2002, liability claims accounted for 6 percent of homeowners' claim costs, costing $345.5 million. The average dog bite claim in 2002, the latest data available, cost insurers $16,600.
"For these reasons, insurance companies will look at the breed of dog when deciding in terms of underwriting," Salvatore said. "There is no industry-wide policy. Each company is going to treat dogs differently."
Examples of breeds typically considered high-risk are American bulldogs, American Staffordshire terriers (also sometimes known as pit bulls), chows, Doberman pinschers and German shepherds.
Call Dick Watts Insurance 502-245-3625 for a free homeowners insurance quote.
How to find an affordable home mortgage
Homes in Kentucky, How to find an affordable home mortgage in Kentucky
There are some good tips about home mortgages in this article
How to Cross the Mortgage Minefield
article from Kentucky.com
Decided to buy a house? Now the challenge becomes finding an affordable mortgage.
What's best for you? Conventional? No money down? Adjusted-rate mortgage? Interest only?
In this aggressive mortgage market, the question can be overwhelming. And the dozens of offers likely to clutter your e-mail inbox on a weekly basis probably only add to the confusion.
"The first thing is to understand what you need and what you want -- explore the various options for mortgages with multiple lenders before you go and fall in love with a house," said Doug Duncan, senior vice president and chief economist for the Mortgage Bankers Association.
"You should have looked at your credit report to know it's accurate, you should know what you owe and who you owe it to, and you should know the status of your monthly free cash and savings before you go to the lender.
"The key, then, is to talk to multiple lenders because they serve different parts of the market," Duncan said. "Shopping will always help you ensure that you are getting consistent stories. Then you can negotiate. When I've bought homes, I've always talked to at least three lenders and I've always gotten a better deal."
In today's market, someone with strong credit should look for a mortgage that requires a down payment as low as 3 percent, doesn't have up-front charges and carries an interest rate no higher than 6.5 percent. However, it's likely that interest rates will continue to rise above this week's national average of 6.35 percent.
In March, the Federal Reserve raised rates for the 15th time since the summer of 2004. The federal funds rate -- what banks charge each other for overnight loans -- moved up a quarter point to 4.75 percent.
The federal funds rate is at its highest level in five years, and some economists estimate it will continue a slow uptick that could reach 5.5 percent by the end of the year.
The federal funds rate helps dictate consumer loan rates for mortgages, home equity lines of credit and credit card bills.
When shopping for a mortgage, it's important to take advantage of the Truth-in-Lending Act disclosures; they allow consumers to shop around to compare various lenders' combinations of rates and fees.
Under the law, borrowers are able to weigh competing lenders' full packages of terms in writing before they choose -- factors such as the base interest rate on the loan, the disclosed finance charges and the annual percentage rate.
It's important to know about the many options available to people purchasing a home.
Consider the choices, both traditional and exotic:
• 30-year fixed rate: The monthly payment and interest rate are the same for 30 years.
• 15-year fixed rate: The monthly payment and interest rate are the same for 15 years.
• 5-year balloon mortgage: The monthly payment and interest rate are the same for five years. At the end of the fifth year, the loan is due in full. The borrowers must refinance into a new loan program if they are staying in the home, or pay the loan balance in full.
• Adjustable-rate mortgages: The ARM payment moves up and down as interest rates rise and fall. Lenders give borrowers low rates at the beginning, but the homeowners bear the risk that if rates rise, their payments will climb.
• 2/28 or 3/27 ARMs: A 30-year mortgage in which borrowers start with a low fixed interest rate for two or three years, then the rate adjusts annually for the next 27 or 28 years.
• 3/1-year adjustable rate: The monthly payment and interest rate are the same for three years. Beginning in the fourth year, the monthly payment and interest rate might change every year for the rest of the loan period.
• Interest only: Borrowers pay interest but no principal in the beginning years of the loan; that keeps monthly mortgage payments low.
• Miss-a-payment: Borrowers are allowed to skip up to two mortgage payments a year and up to 10 payments over the life of the loan without affecting their credit rating.
• Piggyback: The loan combines a traditional first mortgage and a home-equity loan or line of credit to avoid private mortgage insurance.
• Payment option: Borrowers have four payment options each month.
There are some good tips about home mortgages in this article
How to find an affordable home mortgage
Homes in Kentucky, How to find an affordable home mortgage in Kentucky
There are some good tips about home mortgages in this article
How to Cross the Mortgage Minefield
article from Kentucky.com
Decided to buy a house? Now the challenge becomes finding an affordable mortgage.
What's best for you? Conventional? No money down? Adjusted-rate mortgage? Interest only?
In this aggressive mortgage market, the question can be overwhelming. And the dozens of offers likely to clutter your e-mail inbox on a weekly basis probably only add to the confusion.
"The first thing is to understand what you need and what you want -- explore the various options for mortgages with multiple lenders before you go and fall in love with a house," said Doug Duncan, senior vice president and chief economist for the Mortgage Bankers Association.
"You should have looked at your credit report to know it's accurate, you should know what you owe and who you owe it to, and you should know the status of your monthly free cash and savings before you go to the lender.
"The key, then, is to talk to multiple lenders because they serve different parts of the market," Duncan said. "Shopping will always help you ensure that you are getting consistent stories. Then you can negotiate. When I've bought homes, I've always talked to at least three lenders and I've always gotten a better deal."
In today's market, someone with strong credit should look for a mortgage that requires a down payment as low as 3 percent, doesn't have up-front charges and carries an interest rate no higher than 6.5 percent. However, it's likely that interest rates will continue to rise above this week's national average of 6.35 percent.
In March, the Federal Reserve raised rates for the 15th time since the summer of 2004. The federal funds rate -- what banks charge each other for overnight loans -- moved up a quarter point to 4.75 percent.
The federal funds rate is at its highest level in five years, and some economists estimate it will continue a slow uptick that could reach 5.5 percent by the end of the year.
The federal funds rate helps dictate consumer loan rates for mortgages, home equity lines of credit and credit card bills.
When shopping for a mortgage, it's important to take advantage of the Truth-in-Lending Act disclosures; they allow consumers to shop around to compare various lenders' combinations of rates and fees.
Under the law, borrowers are able to weigh competing lenders' full packages of terms in writing before they choose -- factors such as the base interest rate on the loan, the disclosed finance charges and the annual percentage rate.
It's important to know about the many options available to people purchasing a home.
Consider the choices, both traditional and exotic:
• 30-year fixed rate: The monthly payment and interest rate are the same for 30 years.
• 15-year fixed rate: The monthly payment and interest rate are the same for 15 years.
• 5-year balloon mortgage: The monthly payment and interest rate are the same for five years. At the end of the fifth year, the loan is due in full. The borrowers must refinance into a new loan program if they are staying in the home, or pay the loan balance in full.
• Adjustable-rate mortgages: The ARM payment moves up and down as interest rates rise and fall. Lenders give borrowers low rates at the beginning, but the homeowners bear the risk that if rates rise, their payments will climb.
• 2/28 or 3/27 ARMs: A 30-year mortgage in which borrowers start with a low fixed interest rate for two or three years, then the rate adjusts annually for the next 27 or 28 years.
• 3/1-year adjustable rate: The monthly payment and interest rate are the same for three years. Beginning in the fourth year, the monthly payment and interest rate might change every year for the rest of the loan period.
• Interest only: Borrowers pay interest but no principal in the beginning years of the loan; that keeps monthly mortgage payments low.
• Miss-a-payment: Borrowers are allowed to skip up to two mortgage payments a year and up to 10 payments over the life of the loan without affecting their credit rating.
• Piggyback: The loan combines a traditional first mortgage and a home-equity loan or line of credit to avoid private mortgage insurance.
• Payment option: Borrowers have four payment options each month.
There are some good tips about home mortgages in this article
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