Flinsurance.com Reminds Customers to Strongly Consider Flood Insurance

Think a homeowners policy completely protects in the event of a major natural disaster? When it comes to preparing for an emergency, it is crucial to recognize the importance of having the proper coverage for all elements of a natural disaster.

According to the National Association of Insurance Commissioners, thirty-three percent of households falsely believe that homeowners insurance covers floods. Considering that the Florida Emergency Management Association (FEMA) has stated that floods are the leading natural disaster in the United States, flood insurance is an investment that is not simply a frivolous expense - it's a necessity. The reality concerning homeowners insurance coverage is that though wind or debris damage is covered under homeowners insurance policies; flood damage itself is not. Essentially, if a hurricane occurs, tears the roof off a house, and then water pours down into the house, the policy covers the damage. If a storm surge occurs and the property is located near a lake, causing the lake to rise and flood the dining room however, most homeowners insurance policies do not cover the damage.

Flood insurance coverage policies cost on average around $350 a year for Florida policies. Although many banks require flood insurance for high-risk flood areas, it is still strongly recommended that residents of Florida look into flood insurance coverage. In the United States alone, insured flood damage policies account for over $5.2 billion dollars. Of this $5.2 billion, a significant portion of those funds come from coastal regions such as Florida, Louisiana, Texas and Alabama. In addition, while many individuals think they will receive assistance in the event of a natural disaster if the damage is large enough, the fact is less than fifty percent of flooding disasters are eligible for relief. Policyholders in these areas are strongly urged to speak with an insurance agent to evaluate the benefits of flood insurance coverage as well as for options of coverage available.

The National Flood Insurance Program administers policies governing flood insurance. Though policies are purchased through insurance companies, the federal government had to step in to cover flood areas that were designated by state and local authorities, as insurance companies were refusing to take the more risky areas. As such, flood insurance covers many emergency situations such as: overflow of inland or coastal waters, unusual accumulation of runoff water, mudflow, or collapse of land along the shore of coastal waters.

To learn more call 1.888.525.2210 visit Floridainsurance.com.

FLInsurance.com Urges Customers to Carefully Consider Before Modifying Insurance Coverage

Many people agree that a way to save money on homeowners is to raise the homeowner's insurance deductible or lower the premium. Although this is a great idea that can save money, it is important to carefully think through the idea before actually doing so.

When it comes to saving money, many people are fond of any money saving tips that are available. But before increasing the deductible of a homeowner's insurance policy, it is important to carefully consider the pros and cons of doing so. While it is true that increasing the homeowner's insurance deductible may seem like a smart strategy, it is necessary to recognize that a policyholder is now further responsible for a deductible before the insurance policy begins to pay for any damage to the property. For example, if a hurricane coverage policy covers $500,000 and the homeowner's policy has a two percent deductible prior to issuing any insurance funds, the policyholder is responsible for $10,000 before the insurance policy begins to pay out. While it is true that raising a deductible will likely lower insurance costs, it is also important to consider that should a disaster occur, the deductible has the ability to be covered with savings or a loan.

Just as with the deductible, it is especially important to carefully think through the pros and cons of adjusting the homeowner's insurance premium. One of the most important things to remember is that homeowner's insurance protects individuals and the property in the event of liability, fire or other disaster. As a result, it is important that the insurance coverage adequately protects the property. It is important to be sure that the insurance coverage meets the replacement needs should anything happen. Though it may sound tempting to save money in the short term by not having complete coverage, it is more expensive in the grand scheme if something happens to the property. With a state such as Florida that is so prone to hurricanes, tornadoes and flooding, the greatest investment someone can make in today's economy is to protect their assets adequately.

As an alternative, consider changing the policy on goods from "Replacement Value" to "Actual Cash Value." With Citizen's homeowner's policy, the replacement value is half of the value of a home. Keep in mind, however, that like raising a deductible, the policy will no longer guarantee replacement of items but instead give cash for the current value of items - leaving you to pay the difference.

To learn more call 1.888.525.2210 visit Floridainsurance.com.

Think Twice Before Assuming the Cheapest Homeowners Insurance Is the Best

It may be tempting to go with the most affordable rate for homeowners. Oftentimes, however, this coverage may be lacking crucial coverage that a slightly more expensive policy may cover.

Many people in Florida hear homeowners and mistakenly assume it is solely an insurance that provides protection for hurricane damage. The reality of homeowners, however, is much larger in scale and in depth. Homeowners insurance is designed to cover a policyholder's property, possessions, and other people who may be harmed on your property.

Full Coverage

When looking at homeowner's insurance policies, it is important to remember that different policies also provide different coverage options. One option commonly available is "Replacement Value" versus "Actual Cash Value." Though it is possible to save money by getting actual cash value of items, keep in mind that if a disaster occurs, the cost of items at a depreciated value will not cover the costs to replace the items lost. It is also important that the value of the insurance policy be adequate enough to replace the property should a disaster occur.

Risk Assessment

Insurance coverage is calculated by determining how much risk an insurance company takes in guaranteeing coverage for a certain amount. As such, it is possible that one insurance company determines a property to be at a higher risk than another company. It is also possible for a company to be willing to offer a certain amount of coverage for a potential disaster that another company will not.

Temporary Living Expenses

In the event of an emergency, the costs of staying at a hotel, renting another house, or securing a guesthouse causes costs of living to significantly increase. Though it may seem unlikely now, make sure that a homeowners policy covers temporary relocation expenses should it be necessary to stay somewhere else while a property is being evaluated or rebuilt.

Third Party Liability

Assume for a moment that a neighbor's child is playing near the front yard. Should that child fall on a policyholder's property, the homeowner has the responsibility to help cover the medical expenses of that child as well as any pain and suffering for which the family may sue. Other third party liability coverage includes protection should the policyholder have a dog that bites someone or cobblestone steps on which an elderly neighbor may fall.

Milla Tawnie writes for Orlando auto insurance and Orlando home insurance agency, the Florida Insurance Group. To learn more or to get auto and home insurance quotes, visit FloridaInsurance.com.

Expect Property Insurance Rates to Rise Despite Lack of Severe Storms

Florida's property insurance rates are expected to rise in early 2010. The rate increases are intended to help protect Florida policyholders by giving adequate coverage to each insurance company should a major disaster occur.

Despite a lack of severe hurricanes or natural disaster damage in Florida this year, Florida is taking the proper steps to ensure taxpayers are not left with the burden of covering damage with taxpayer funds by utilizing this time to increase homeowner's insurance rates. The extra funds from the increase will be used to not only help reduce the financial burden incurred by taxpayers in recent years, but to help prepare for future disasters.

Currently, insurance experts argue that the state funded Citizens Property Insurance has established an artificial rate for homeowner's insurance, which does not properly protect its policyholders adequately should a major natural disaster occur. Should a major hurricane hit and Citizens not have enough to cover the situation, Florida taxpayers would be forced to make up the difference through insurance rate hikes across the board for homeowners - whether they belonged to Citizens insurance or not.

In response to the insurance industry's concerns, the Florida legislature recently received a 5.4 percent increase for full coverage policies that will go into effect in February 2010. The increase, which was initially proposed as a ten percent increase, was almost unanimously agreed as needed in some form by lawmakers and insurance experts as a way to help support the fragile insurance company. Currently, actuaries report the fund as being around forty to fifty percent of where the company should be to properly insure all of its policyholders.

The rate changes will not be the only rate increase Florida has approved, however. In an effort to properly insure policyholder's against natural disasters in future years, seven of the major property insurers in Florida have asked the Office of Insurance Regulation to grant an increase in their insurance rates. These companies are among the twenty-five largest insurers of homeowners insurance in Florida and initially asked for increases of seven to fifteen percent. The largest rate increase was requested by St. John's Insurance Company, which insures around 198,000 policies. Other companies that have asked for increases include Universal Property and Casualty Insurance, Liberty Mutual Insurance Fire Company, United Property and Casualty Insurance, America Integrity Insurance, and Southern Fidelity Insurance.

Milla Tawnie writes for Orlando auto insurance and Orlando home insurance agency, the Florida Insurance Group. To learn more or to get auto and home insurance quotes, visit FloridaInsurance.com.