Home Buyers Essential Guide to Home Insurance

For many of us, our home represents the single largest investment we will ever make. One of the best ways to protect that investment is through the purchase of homeowners insurance. The problem is that many of us don't truly understand how a homeowners insurance policy works and exactly what our insurance policy will cover should a disaster strike. Rest assured, the home buyers essential guide will outline the facts you need to know about insuring your home.

What am I covered for? Generally, all home insurance policies cover two main areas; Property and liability. Property insurance includes your house and any detached structure located on your premises such as a shed or garage. Your family's personal items and contents are covered whether damaged in your home, car, or temporarily away from your residence. Valuables such as art, jewelry and paintings may require additional coverage. Ask your broker if supplementary coverage is needed.

Liability insurance is the second major component of your homeowner's policy. If deemed responsible, this section will cover negligent acts you commit, anywhere in the world, which cause harm to others.

What situations am I protected against? Home insurance policies can vary slightly, but most cover damages to the structure of your home and your personal contents caused by: · Fire, Lightning or Smoke · Explosions · Lightning · Riot or civil commotion · Impact by aircraft or land vehicles · Theft or Vandalism · Falling Objects · Freezing of pipes

How do I choose the right policy for my home? The following coverage definitions of home insurance policies will help you understand and determine your current coverage:

Dwelling Building: Covers your house, attached structures, and permanent fixtures in the home, such as a dishwasher or air conditioning systems. The dollar amount of coverage listed should equal the cost to rebuild your home if a disaster occurred.

Detached Structures: Insures any structure that is not permanently attached to your main residence. Coverage extends to your fence, driveway, trees and shrubs.

Personal Property: This section provides insurance for all the personal property you and your family owns. Coverage for your personal contents is guaranteed no matter where you are in the world.

Additional Living Expenses: Should your home be unlivable due to an unforeseen event such as a fire, this section covers living expenses if you can not live in your home while repairs are undertaken.

What insurance options do I have? Home insurance policies usually come in three forms. The Basic homeowner's package is ideal for individuals looking to save a little bit of cash. This package provides coverage for your house, contents and liability. Basic home insurance provides coverage on a named perils basis.

If the basic homeowners coverage seems inadequate, you can upgrade to the Broad homeowners package. This policy provides all risk insurance coverage to your home and named perils coverage to your contents. This package is priced in the mid-level range.

The most inclusive home insurance package is titled Comprehensive homeowners. This policy provides all risk insurance coverage to your home and contents. Review the policy wordings as there are certain situations or exclusions under all risk insurance

Obtaining enough insurance coverage for your home is the only way to protect your most valuable asset. Your local broker is the best source for all your home insurance needs and questions. Make sure you understand what you are buying. It's important to know who or what is covered, exclusions and policy limitations, how much coverage is provided and how to report a loss or claim. Remember to not confuse what you paid for your house with rebuilding costs. Insurance does not cover market value or the land.

Lee Romanov is the founder and president of The InsuranceHotline.com, since 1994. InsuranceHotline.com provides a rate comparison service for auto, home, life and commercial insurance via the internet, now processing over 3,000 quotes a day, internationally. Get Instant Auto & Car Insurance Quotes here.

A Consumers Guide to Financial Advice

Financial advice in the UK is provided to you by an authorised adviser to consider your financial needs and circumstances and recommend products to meet these needs.

All regulated financial advisers are authorised to give advice by the Financial Services Authority (FSA) which includes advice and recommendations on;

Mortgages;

General insurance; and

Protection insurance

Receipt of financial advice can take many forms including telephone, e-mail and correspondence, but more often than not is in the form of a face to face interview with an adviser. Whichever of the above mediums you choose to receive your advice one common factor should be apparent and that is the gathering of sufficient detailed information to enable an accurate and relevant recommendation to be made.

In all circumstances it is the adviser's duty to only recommend a product or service that is relevant to your needs.

It is of course possible to purchase products or services without having to receive advice However, as a consequence it is up to you the customer, to decide whether the product or service you are purchasing meets your needs. It is also worth bearing in mind that your rights of complaint should you purchase financial products or services yourself are diminished should the product not turn out to be what you expected.

Different firms will give different advice on product types but broadly firms will offer products from either the whole of the market, single product provider or a grouping of product providers.

This all sounds rather complicated?

As mentioned earlier all regulated firms and advisers have to follow strict guidelines laid down by the FSA regarding the provision of advice. This is ultimately to protect you the consumer and to ensure you are given accurate, fair and relevant advice.

At the beginning of any interview you will be provided with information by the adviser to quantify his status and what products and services he or she can offer you. You will also be provided with a 'Keyfacts' document which will further detail the services provided. These items should provide you with enough information to be confident around the services provided, if you are unsure do ask.

It is always a good idea to have a think about your own financial situation prior to meeting with your adviser. Questions you can ask yourself before for example;

What are your aspirations for the future?

Do you have any borrowing under control?

Do you have any family protection in place?

Do you have funds available should an emergency arise?

How do you feel about retirement?

Following your information gathering interview with your adviser he or she will take account of your responses to the above questions and many more details obtained, to arrive at a suitable suite of recommendations to meet your identified needs.

It is then adviser's responsibility to recommend solutions in the form of policies to cater for these needs - remember though, in an ideal world we would all like to be fully protected and save lots of our hard earned cash for a rainy day or retirement but this is not always possible.

Therefore, prioritise if you have to and ask your adviser based upon your budget what are the most pressing needs which need to be addressed now. You relationship with your adviser should not be a one off but a continual progressive relationship whereby you can agree to cater for and meet your needs, on an ongoing basis.

Jonathan Grigson has been involved in the Insurance industry for over 15 years and is a respected industry commentator. He is a regular contributor of Insurance related articles and is a regular publisher at UK Insurance Information

A guide to loan payment protection insurance

Loan payment protection insurance can be taken out at the time of borrowing, lenders will in fact try to push the cover with their loans to grab back profits and make up for the cheap loan. Of course this is one of the dearest ways of protecting the money you are borrowing against the fact that you might be unable to work due to an accident or sickness. It would also provide you with an income if you should become unemployed due to redundancy.

So when taking on a loan or credit card always make sure that you choose to cover the borrowing by buying it independently. High street lenders at one point would sometimes add cover onto the borrowing without you being aware of what you were taking on. However for the most part this has changed since the intervention by the Financial Services Authority. It is always worthwhile making sure that it hasn't been added onto the loan you are taking out.

Policies taken with a standalone provider are one of the cheapest ways to protect your borrowing and in order to get the cheapest loan payment protection insurance quote you have to compare with several providers. The premium that is charged for the protection is based on the amount that you wish to cover each month up to a certain amount and your age. Age based insurance makes payment protection products affordable for all. The amount you insure against is what you would receive if you should become incapacitated or unemployed. You can protect not only your loan repayments but also any credit card debts you have. As more and more people turn to using "plastic" to get by, covering your borrowings is essential.

When the policy would payout and for how long would all depend on the provider you chose to go with. Therefore it is essential to read the small print of the policy before taking it out. Some providers will offer a policy that begins paying out a tax-free sum after just 30 days. However some will defer paying out on the policy until you have at least been out of work or unemployed for 90 days. The same applies as to how long the cover would last. There are policies that could payout for 12 months and some providers offer cover lasting up to 24 months. You also have to look at the exclusions as there are some in all policies and how many depends on the provider.

Loan payment protection insurance is valuable as if you cannot maintain your repayments and get behind and into debt then at the very least you would see your credit rating affected. In the worse cases you would be given a County Curt Judgement and bailiffs may be sent to recover what you owed through your belongings. Of course with a loan payment protection plan behind you, you would not have this worry and would be able to continue meeting your repayments. This alone would give you peace of mind and at a time when you need to be concentrating on making a recovery or going out and finding work, it is a lifeline.

Simon Burgess is Managing Director of the award-winning British Insurance, a specialist provider of loan payment protection insurance.

A Guide to Insurance Claims

The worst part about accidents is that they happen when you least expect them. Not only do you have to deal with the physical injuries and mental trauma but also you have to make sense of the complicated process of filing an insurance claim.

Golden Rule of Insurance Claims

Cases of fraudulent insurance claims are rising. To cut down on such claims, insurance companies are adopting new practices such as using lie detectors while claimants give their statements. Moreover, they will try their best to reduce the compensation amount they owe their customers by rejecting claims on flimsy grounds such as not producing the necessary documents. While filing a claim, the golden rule is to provide detailed information to insurers. Document all information related to the accident.

Before an Accident

Being prepared isn't just a scout's motto. It can help a lot while filing insurance claims. Keep a first-aid box in your car at all times. Always keep a pen and notebook in your vehicle just in case you need to jot down details of an accident such as:

* Contact information of all the people involved in the accident including witnesses, if any

* Details of the vehicles involved such as car make, registration number, etc.

* Time and date of the accident

* Damages to both vehicles (for example, broken windows)

* Details of the accident or how it happened. Draw a diagram to show what happened.

* Factors that could possibly influence the accident (street lighting, weather, visibility)

* Insurance company and policy number

Mention any other details that are relevant to the accident and may affect your claim. Use a camera to take photos of the accident site, serving as useful evidence for insurance claims.

What do I do after an accident?

* The first thing to do is don't panic. While it will be difficult to stay calm after a traumatic experience, fight the urge to run away. Running away from the accident scene is illegal and will only weaken your insurance claim even if you were not at fault.

* Call an ambulance if someone is injured. Get a doctor to examine you and document all your injuries in a medical report. If required, see a specialist.

* Call the police. NEVER assume liability for the accident until you speak to an experienced solicitor.

* Save all your bills and letters related to the accident.

* File a claim with the help of a accident solicitor.

* Be honest at all times with the insurer. Providing incorrect information can lead to rejection of your insurance claim.

Diana Joseph has an in-depth knowledge in dealing with in injury claims. She has written numerous articles on injury claims issues, particularly those involving car accident and other topics of claims. Please contact her for further information on claims related issues.

Lawyers Drive Up The Cost Of Car Accident Claims.

Car insurance premiums have risen steeply in the last year at a rate of 5.9%, which is almost three times the rate of inflation as measured by the Consumer Price Index. The cause of this rise is being touted as an increase in the amount of compensation being paid out to accident victims. Higher medical bills and ongoing care arrangements are costing insurers huge amounts in compensation and this is being reflected in the premiums they charge.

In the mid 1990s the European New Car Assessment Programme was brought in as a measure of car safety across all car categories. It is now the accepted method for rating cars according to their ability to minimising the effects of a side or head on collision. Most new cars nowadays receive a 3 or 4 star rating due to better vehicle design and more safety features. The good news is that the likelihood of surviving a car crash is significantly higher in today’s vehicles. The bad news is lawyers are cashing in on this by pushing for higher sums of compensation even for accident victims with minor injuries.

Legal costs have also increased significantly over the years earning traffic accident lawyers the title of ‘ambulance chasers’. The insurance industry claims that the cost of car accident claims is rising by 10 per cent every year, in part because of the legal fees involved. At present the average claim takes just under a year to settle with some cases being open for up to two years. Two years of legal representation is going to cost a lot of money, which ultimately the insurers will end up paying. It seems like the legal system at the moment is too much in favour of the lawyer and until a simpler method of sorting out claims is devised compensation payouts and the insurance premiums which pay for them will continue to rise.

The Association of British insurers is currently lobbying the government to allow a quicker method of sorting out claims to be introduced. For small claims under £25,000 it has been suggested that a straight forward streamlined way of handling claims will mean fewer lawyers will need to be involved and bring down the costs of administering the claim.

However, it must be noted that the rising cost of compensation claims is not entirely due to increased compensation for the accident victim, but also due to the fact that newer safety features in cars cost more to fix and replace. Larger crumple zones and more airbags add to the cost of repairing the vehicle and this cost must be passed on to the drivers. Although due to the competitive nature of the insurance industry, premiums still need to be attractive in order to gain customers, not all of this cost will be charged in higher premiums.

But with 40 pence out of every £1 in a compensation claim going to the lawyers, it is clear that the rising cost of insurance premiums is down to the legal system and if we want this to change, a way needs to be found for handling compensation claims more effectively and with less legal intervention.

Danielle is an author of several articles pertaining to Car Insurance. He is known for his expertise on the subject and on other Business and Finance related articles.

Warning About Life Insurance Lies

Millions of people have put their life insurance at risk because they lied about their health status. They face the possibility of having their life insurance and critical illness policies cancelled.

People cover up being a smoker or a healthy drinker, and people regularly give false information on their weight or health problems.

A study by Norwich Union of 2,500 customers found as many as one in 14 provided false information relating to their health or lifestyle. Other research showed a higher 15% of people who are not truthful when applying for insurance cover.

Currently insurers reject as many as 20% of claims due to misinformation, but this doesn’t deter people, where as many as 52% of men and 43% of women say they routinely lie about the state of their health in everyday life. Those who lie on insurance policies risk personal and financial disaster if they are found out.

Life insurance is a simple form of protection, which pays out a lump sum on the police holders’ death. These policies can be ‘for life’ or for a fixed term eg.25 years.

Over the past few years, life insurance premiums have fallen sharply as life expectancy has risen and competition amongst insurers has grown. But anyone outside the 'norm' - such as those who are overweight and those who smoke - will increasingly pay more for cover. According to financial website find.co.uk, a 20-year level term policy with a sum assured of £100,000 would cost about £13.50 a month for a 35-yearold male smoker. A non-smoker of the same age would pay about £8 a month - a saving of £64 a year or nearly £1,300 over 20 years.

There are other more simple ways to get better value of your life insurance premiums and save money without being fraudulent.

Insurers calculate your life insurance premium by using information about your health, age, occupation and lifestyle. Most people are unwilling to do measures such as losing weight or giving up smoking to get cheaper life insurance. To be eligible for discount you have to have quit smoking for at least one year to be classed as a non-smoker, but can wipe many pounds off your monthly premiums.

Recently a new life insurance policy was launched offering lower premiums to vegetarians. Animal Friends Insurance offered a 6% discount on its life insurance for non-meat eaters, because medical evidence suggested they were less likely to suffer from major illnesses than those who ate meat.

Norwich Union is now considering challenging the rest of its two million UK customers to come clean about their health status. People who have found to have been dishonest could see sharp increases in their premiums or even have the policies cancelled. Insurance fraud is covered under the Fraud Act 2006, which defines fraud as being committed when a person makes a ‘false representation.’ Using a fraudulent health insurance policy could result in up to ten years imprisonment, a fine, or both.

So its better to be honest on your life insurance, make steps to get discounts and seriously shop around for the cheapest policy.

Drew is an author of several articles pertaining to Life Insurance. He is known for his expertise on the subject and on other Business and Finance related articles.

Global Warming Affects Home Insurance

How much you pay for your home insurance premium could be affected in the future by global warming. With the number of freak weather incidents rising, with gusting winds, severe storms and flooding now more common place, then good home insurance is an even more valuable investment.

Last years storms were a prime example of this. During 2007 more then 1.5 million British homes' roofs were damaged due to high winds, which caused £4.5 billion of damage. The report undertaken by Halifax Home Insurance quoted the average cost of wind damage reached £2,800. Damaged gardens, sheds and destroyed garden furniture were all claimed on owners' home insurance policies.

Wind damage can often lead to future costs if homeowners do not take immediate action.

Martyn Foulds, senior claims manager, said, "It is advisable for homeowners to conduct a thorough inspection from ground level following high winds, the problem could be exacerbated by water coming in through missing or broken tiles."

Climate change will increase the number of dangerous weather conditions, and homeowners need to prepare for future storms by evaluating the existing home insurance. Even with the damaging recent storms, 36% of homes are not insured. Advice has been given for homeowners to prepare their homes by securing lawn furniture, and checking, trees, gutters, tiles and roofs. They should also ensure they are adequately insured for any foreseeable problem.

There are often long delays for insurance payoffs after major incidents, so insures are recommending having an emergency repair fund to make necessary repairs and prevent further damage whilst awaiting the insurance payout.

The Association of British Insurers (ABI) warns that if nothing is done then the current value of claims could double or even triple by the middle of the century. The ABI wants climate change to be taken into account during designs of flood defences, and for building regulations to be changed so properties are more resistant to extreme weather. They also warn that its not just home insurance which may be affected by climate change. Motor insurance could be hit with extreme weather leading to more accidents.

John Parker, head of general insurance at the ABI, said "Managing risk is central to our industry, and insures must be equipped to analyse the new risks arising from climate change, and to help customers protect against them."

Last Years major floods, and the repeat incident earlier this year has brought flood insurance to the forefront of peoples minds. For many people, flooding is a fact of life. There are more than 2 million homes at risk from coastal or inland flooding (10 % of total homes in the UK), and around 400,000 homes at very high risk of flooding. Climate change will increase winter rainfall, the frequency of heavy rainfall, and sea levels and storm surge heights. With no change in Government policies or spending, climate change could increase the number of properties at risk of flooding to 3.5 million.

In the modern competitive insurance market, premiums reflect the risks that customers face. This enables insurance to be offered at very competitive prices to customers living in low flood risk areas.

Preparation is key, with homeowners needing to evaluate their existing home insurance premium, and with the vast number of insurance companies offering cheaper deals and vying for your money then you should shop around and find the best deal which will cover all possible incidents which could affect your particular home in the unpredictable future.

Drew is an author of several articles pertaining to Home Insurance. He is known for his expertise on the subject and on other Business and Finance related articles.

Tips on Fire Insurance Claims

If you are suffering from damage as the result of a fire, then you are likely to have many different questions. One of the major questions you have is how can you go about filing a fire insurance claim. The first thing you want to do is look over your policy and carefully find out what is covered, how much it is covered for, and what else might be included in your coverage.

It is important to fully understand what type of coverage you have and how to file a claim before you actually start. Going about things in the wrong way may be cause for denial or lengthening the process of your claim. Filing fire insurance claims is not easy, in fact, there is so much to do that it could be easy to forget or miss a step. What is more, there could be more damage than really meets the eye, so what you need is someone on your side.

Yes, when you get the claim process started, the insurance company will send out a loss adjuster. It is important to understand that the adjuster is an employee of the insurance company. They are not on your side; rather they are on the side of the insurance company and are looking to save them money. So, it is really important that you understand the role of the loss adjuster.

When you file fire insurance claims there are many things you will want to know and what to find out. First, you will want to understand if the insurance company covers you having to stay in a hotel. If not, you will likely need to make other arrangements. Most insurance policies cover this or at least offer it. While the repairs on your home are being performed, you will have to stay elsewhere, but you will also want to find out how long it will take for the work to be performed.

Many insurance companies have a list of contractors and surveyors that they work with. In most cases, they will try to push you into using these people, as it will save them money. You may or may not be required to use their affiliates; this is where you will need to check your policy closely.

Many people involved in this type of situation look to a claims consultant to help them in this matter. Somewhat like the loss adjuster works for the insurance company, the claims consultant works for you. This is a group that is on your side and will help you determine and handle the many tasks that must be performed when filing fire insurance claims.

Claims consultants can help you determine just what needs to be done, who is going to do the work, and essentially takes care of all the behind the scenes tasks. They will ensure that everything is being attended to correctly, they will make sure you are getting everything that you are entitled to, as well as dealing with all of conferences, calls and meetings that must take place with the suppliers, contractors, surveyors, loss adjuster and insurance company.

Filing fire insurance claims is no easy or stress-free task. Having someone on your side is the first step in making sure that you get exactly what you need, when you need it.

Derek Rogers is a freelance writer who represents a number of UK businesses. For Loss Assessors and Domestic Fire Insurance claim services, he recommends Morgan Clark.

Home Insurance Risk For FloodPlain Areas

The insurance industry has warned that many new homes could be left on the housing market and become uninsurable unless the government introduces new rigid planning controls for flood risk areas.

By the year 2020, a third of the 3 million proposed homes set to be built in Britain, could be on a flood plain according to the Association of British Insurers (ABI). If this is the case the ABI have warned their members that they may not be able to continue to offer flood cover as standard on home insurance policies.

The ABI’s assistant director, Justin Jacobs said, “The government’s ambitious housing plans are in jeopardy unless we reduce the flood risk. In the last year, thirteen major developments have been given the go-ahead despite Environment Agency advice on the flood risk”

Jacobs insists that insurers do want to continue to provide flood cover for homeowners, but warned that poor decisions on planning would create homes that would become too hard to sell, insure and live in, he said, “Where a local authority plans to ignore flood risk advice, the government should step in and review the proposals and be compelled to publish their decision.”

The government though, claim they have introduced the strongest planning rules ever to ensure that councils are properly managing the risk of flooding. They have done this by handing down power to the councils who will decide on whether to give planning permission for new housing developments, but only after consultation with the Environment Agency.

The cost of clearing up after the flooding in Yorkshire and Gloucestershire during the summer of 2007 was put at £3 billion, with the ABI claiming that its members had paid out up to £1 billion towards meeting the claims.

15,000 families were left in temporary accommodation with three quarters of them having to wait over 4 months before they could return to their homes.

Representatives from the ABI met with Members of Parliament to discuss its ‘Statement of Principles’, which included a pledge for the continuation of flood insurance to be offered to its existing policyholders who lived in an area where the risk of flood was being managed.

Director General of the ABI, Stephen Haddrill said, “The statement can only continue if the government commits to addressing the lessons learnt from the summer of 2007. That will require major new total investment from government and others.”

Homeowners who live on floodplains have been warned that they face a ‘hefty hike’ in home insurance premiums following the continued flooding which is being linked to climate change.

This advice came from Richard Mason of price comparison website Moneysupermarket.com, he said, “From the figures presented by Defra, the average cost of settling a claim for flooding has now jumped to between £70,000 and £200,000 per household. This amount is unsuitable for the insurance industry to bear in the long term unless insurance premiums rise.”

He went on to say that anyone looking to buy a property should check first with the Environment Agency’s flood map and consider the repercussions financially from buying property in a designated flood zone.

Phil Benson is an author of several articles pertaining to Home Insurance. He is known for his expertise on the subject and on other Business and Finance related articles.

Increased Life Insurance Premiums For Smokers And The Obese

People who are perceived to be unhealthy as a result of smoking or obesity are facing increased life insurance premiums as a result.

Consumers who smoke could pay over £2,000 more on their insurance policy than non-smokers according to price comparison website, Moneysupermarket.com.

And insurance companies are to introduce a ‘fat tax’ for people who are overweight which could be as much as 50 per cent higher on new premiums, with the threshold at which the higher rate starts, set to be lowered.

Moneysupermarket.com revealed that a 35 year old man wanting cover of £100,000 over 25 years would be paying £17.68 a month with Scottish Provident if he was a smoker, where as if he was a non-smoker, he would only be paying £9.91 a month which equates to 44 per cent saving or £2,331 over the term.

Life insurance premiums can be as much as half the cost for people who don’t smoke, with insurers not recognising someone as a non-smoker until after twelve months of giving up the habit.

Head of protection at Moneysupermarket.com, Lousie Cuming said, “In order to be classed as a non-smoker and qualify for life insurance premium savings, insurers insist smokers have kicked the habit for a full year. The difference in premiums between a smoker and a non-smoker is vast and there are significant additional savings to be made simply by shopping around for the best deal to suit your circumstances.”

With the NHS Stop Smoking Service reporting an increase in the number of people quitting smoking since the introduction of the smoking ban in public areas on July 1st 2007, Cuming went on to say, “Smokers often benefit from a higher income from pension payouts in retirement due to lower life expectancies. However, most people value the health and lifestyle benefits of quitting early and a significant slice off your life insurance premiums could simply be the icing on the cake.”

Icing and cake however, should be avoided by anyone with a body mass index of 30 or more as this is the point at which insurance companies declare people as medically obese. According to Legal and General, 13 per cent of new applicants face paying higher premiums because they fall in to this bracket.

For a man aged 55 years old who is a healthy non-smoker with no weight problems, life insurance for £150,000 on a 25 year policy will cost around £1,000 a year. If he were classed as obese, the annual payment figure would increase by an extra £500.

Legal and General’s director of underwriting claims, Russ Whitworth said, “Most people understand that poor diet and lack of exercise can lead to health problems but they might not realise that being significantly overweight would also make their life insurance more expensive. Although it is not an exact science, we find that body mass index (BMI) is the best indicator of the risk of being overweight, so it pays to stay in shape.”

An Association of British Insurers spokesman said, “If you are obese, you are at greater risk of contracting certain diseases. It is just the same as increasing the premium for a smoker or somebody with previous medical conditions.”

Phil Benson is an author of several articles pertaining to Life Insurance. He is known for his expertise on the subject and on other Business and Finance related articles.