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Archive for the ‘Property Insurance’ Category

With recent issues including natural disasters, mold, terrorism, and market share competition, property and casualty insurance has become more costly and hard to obtain. This aspect of property and casualty insurance is especially true in conventional and government-assisted housing and the commercial markets.

In 2001, the property and casualty insurance industry has posted a $7.9 billion net loss. This property and casualty insurance loss is the first ever net loss, according to the Insurance Services Office, Inc. (ISO) and the National Association of Independent Insurers (NAII). Experts have predicted a return rate for property and casualty insurance at a negative 2.7 per cent, almost 6.5 per cent lower than that of year 2000.

As a result, several property and casualty insurance companies are retrenching. One of the steps they undertook to cut back on their losses is to avoid adding any new policies into their property and casualty insurance. They have also purposefully stopped updating or renewing their existing property and casualty insurance policies. Furthermore, the premium price of property and casualty insurance policies has increased.

Stated causes of the property and casualty insurance problem

“Mold is Gold” was the headline of one trial lawyer publication. The recent large court decisions against insurers have jeopardized profitability of the property and casualty insurance industry. The trial courts recognize the invasive mold as the latest household hazard and property and casualty insurance policyholders are getting the most out of their lucrative lawsuits. A well-publicized Texas lawsuit resulted in a $32.1 million decision — good for the owner, bad for the property and casualty insurance industry.

The September 11 event has also negatively impacted the property and casualty insurance industry. It has been reported that September 11-related property and casualty insurance claims total to as high as $70 billion. The same event has also caused the decline of the stock market which added to the downward movement of the property and casualty insurance industry.

The effects of the property and casualty insurance problem

Property and casualty insurance is essential in real estate. The real estate market cannot function properly if property and casualty insurance is not as accessible as it used to or not as affordable as before. Property and casualty insurance coverage is essential because it is an underwriting requirement when you apply for a conventional, government-assisted and commercial mortgage. Lending companies require property and casualty insurance; otherwise the mortgage application will be rejected.

Real estate leans heavily on mortgages to close a great majority of its sales. Without property and casualty insurance, there won’t be any mortgages. As a result, sales in the real estate market will plummet.

Moreover, without property and casualty insurance coverage, homeowners will have a difficult time maintaining their mortgage obligations. This may force lenders to foreclose on the property or subject the homeowners to expensive lender forced-place coverage.

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“Property and Casualty Insurance” – 24 ( 5.0%)

Every person keeps valuable personal items and articles. Examples of personal properties are jewelry pieces, notes, books, important documents, and other miscellaneous items. Though little or seemingly unnecessary, these items are valuable and also needs personal property insurance coverage.

Students especially are the most vulnerable to personal property loss. Every year, college students lose millions of dollars worth of personal property. They lose calculators, stereos, cameras, personal computers, books, furniture, clothes, and other personal items by fire, theft, water, or vandalism. Because most students stay in dormitories or share rooms with other students, the risk of personal property loss or damage is greater. Having personal property insurance can protect students from the costs of having to replace the lost or damaged item.

There are quite a few insurance companies that provide personal property insurance policies. Provided below is short list of these personal property insurance companies. Also included is a short outline of these companies’ personal property insurance policies and their key features.

National Student Services Incorporated (NSSI)

NSSI offers personal property insurance policy for college students. For greater affordability, NSSI sells their personal property insurance policy to students for a few pennies a day. Their personal property insurance policy is recognized at over 1000 colleges and used in several universities in the United States.

NSSI’s personal property insurance plan protects the student’s belongings whether he lives on campus or not. Also included in their property insurance policy is $1,000-automatic liability coverage. This added benefit of the NSSI personal property insurance pays for any loss or damages of which the insured is responsible. For instance, an accident occurs due to the insured’s negligence, the NSSI personal property insurance will cover up to $1,000 of the hospitalization costs.

Ancillary Campus Services

Offered by Auxiliary Services Corporation at SUNY Cortland, the student personal property insurance of Ancillary Campus Services offers primary coverage to protect the personal property of college students. This student personal property insurance is administered by Haylor, Freyer, & Coon, Inc. and is designed to protect college students from loss or damage of personal property while residing in halls, fraternity or sorority houses, off-campus apartments or houses.

This personal property insurance policy had deductibles that start as low as $50 so students can afford it. Also, Ancillary Campus Services’ personal property insurance policy even covers students who go abroad.

Clements International

Clements International is one of the few insurance companies that offer personal property insurance abroad. Their international personal property insurance covers the cost of damaged items during the relocation process or while you are in your foreign residence.

The international personal property insurance of Clements International is separated into two plans. The first personal property insurance plan covers transit and destination costs. The second personal property insurance plan is solely for destination coverage for professionals who are already living abroad.

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“Personal Property Insurance” – 21 ( 4.4%)

It’s not that Open Source software is ultimately too risky to use without some sort of insurance. It’s about giving Open Source software companies, like Linux, the right backing should any legal entanglements arise resulting in expensive claims.

Daniel Egger, the founding chairman of Open Source Risk Management (OSRM) said in a recent press release that Linux property insurance is about providing a united defense against those trying to profit from a legal system that permits frivolous but expensive claims.”

OSRM joins the ranks of HP and Novell and Red Hat in providing Linux property insurance program. The OSRM Linux property insurance protects large and small users from legal hassles which arise from using the open-source operating system.

How did they come up with their Linux property insurance policy?

By spending six months on thorough assessments of the files in the Linux kernel, OSRM found that there are no copyright infringements in versions 2.4 and 2.6 of the operating system. This in turn led them to the idea of creating another Linux property insurance policy which is specified to cover this weakness.

“We decided to go straight to the heart of the matter and evaluate whether we could defend the Linux kernel,” Egger explained when asked how he came up with the idea of the Linux property insurance.

Linux property insurance is designed to afford OSRM clients the legal protection they need. This legal protection provided by Linux property insurance is “equal to, if not beyond,” what clients receive with proprietary software licenses.

The benefits of OSRM Linux property insurance

With the OSRM Linux property insurance, users do not need to be tied down to one particular Linux vendor. The Linux property insurance coverage provided by OSRM is unlimited. Businesses can purchase as much Linux property insurance coverage as they want. The rate of Linux property insurance is comparable to that found in other insurance policies that cover intellectual-property lawsuits. Purchase price of OSRM Linux property insurance is only about 3% of the total coverage amount.

Also coming up in OSRM Linux property insurance is a legal defense center where users can take advantage of the legal assistance on matters relating to Linux. The legal fees involved in Linux property insurance range from $250 to $100,000 for corporations.

How OSRM Linux property insurance is different from the rest

A typical insurance policy differs from that of an OSRM Linux property insurance indemnification program. According to OSRM, he reason why Linux property insurance is different is that it “works with clients to assess and mitigate their risks, and then helps implement a set of best practices for mitigating legal risks around their use of Open Source.”

In addition, instead of paying for a client’s lawyers, OSRM can hire and provide lawyers for their own clients through the Linux property insurance program.

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“Linux Property Insurance” – 21 ( 4.4%)

You’ve finally done it. Those countless television programs advertising properties abroad you watched tirelessly has finally made you take the plunge. And now you have a home in France.

The next logical step to do is get a French property insurance that is suitable. You can get French property insurance even if you will only be using that house as a second home or a cozy holiday place to stay in. And while you’re away, you can even make an investment out of your second home with its French property insurance by letting it to tourists or locals.

Your French agent or Notaire will ask you for proof that you have French property insurance before you exchange contracts and finish the sale. If you have no French property insurance, the Notaire will recommend a French property insurance company.

What does French property insurance cover?

French property insurance covers buildings and its contents. French property insurance for buildings includes the actual structure of your French home. French property insurance also encompasses the cost for repairs or rebuilding, debris removal, and professional fees should loss or damage arise.

Damages by natural causes like earthquake, fire, storm, flood, and burst pipes should be covered by your French property insurance. Another thing that your French property insurance should cover are fixtures and fittings within the structure of your home and that includes kitchens and baths.

French property insurance for the contents of your house should be included, even if you’re only going to use your French home as a vacation hideaway. French property insurance will pay for the replacement of valuables lost, stolen, or damaged.

How much should you spend for your French property insurance?

Most people think that their French property insurance should be enough to cover the current market value of their French house. Do not make the mistake of doing this. French property insurance should cover the cost of rebuilding the property. The cost of rebuilding is equal to the full cost of the building’s construction. That means that your French property insurance must include all outbuildings, barns, domestic oil and gas pipes, and domestic oil fuel tanks. You can even go so far as getting French property insurance that covers your swimming pool, tennis court, drives, patios, terraces, walls, gates, and fences.

In cases of theft or damage to items in your house, you should calculate your French property insurance based on the sum of the total cost of replacing the lost items. The prices that you quote for your French property insurance should also be based on the current prices of today’s market.

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“French Property Insurance” – 22 ( 5.0%)

Commercial property insurance is insurance primarily targeted for commercial properties such as businesses, farms, and ranches. Commercial property insurance protects people who own such types of properties from damage to their buildings and contents.

Commercial property owners may include those who are business operators or those leasing a property to another entity. For protection, these people purchase commercial property insurance policies that protect the building and its associated structures. Property owners who let their houses or buildings may buy commercial property insurance policies that protect the building’s contents, such as machinery, furniture, and stored or displayed merchandise.

Types of Commercial Property Insurance Policies

There are different types of commercial property insurance policies. These types of commercial property insurance policies cover different kinds of risk factors for causes of loss and damage. These risk factors that are covered by commercial property insurance policies may include natural disasters.

Commercial property insurance policies generally fall into three categories. The first category of commercial property insurance policies is the basic form. Commercial property insurance policies of this kind cover common perils like damage caused by fire, lightning, windstorm, vehicles, aircraft, and civil commotion.

The second commercial property insurance policy category is the broad form. Broad form commercial property insurance policies include coverage for basic perils, plus others, such as water damage, collapse, glass breakage, weight of snow, ice or sleet, and sprinkler leakage.

The third is the special form commercial property insurance policy. This type of commercial insurance policy protects business owners from all causes of loss except those that are specifically excluded in the contract. These causes that can be covered by the special form commercial insurance policy include flood, earth movement, war, nuclear disaster, wear and tear, insects, and vermin.

Other additional coverage bought by consumers of commercial property insurance are liability policies, business interruption, and extra expense. The liability policy of commercial property insurance protects the business owner against the cost of a lawsuit and possible judgment. Coverage on business interruption can reimburse the commercial property insurance policyholder for income lost when his business is interrupted due to the loss or damage of a building. Extra expense in commercial property insurance covers payments made by the policyholder to resume business operations as quickly as possible after a loss.

Many commercial property insurance policies include coverage for flood. But despite this, most commercial property insurance policyholders get their insurance from the National Flood Insurance Program of the Federal Government. Some commercial property insurance policies do not cover losses from extreme glass damage or crime. If that’s the case, business owners generally buy this from other, more specialized commercial property insurance companies. A lot of companies are focusing their commercial property insurance policies to cover certain areas not covered by traditional policies.

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“Commercial Property Insurance” – 24 ( 5.2%)

Florida Citizens Property Insurance Corporation

In a law passed in 2002 by the Florida legislature, the Florida Residential Property and Casualty Joint Underwriting Association (FRPCJUA) merged with the Florida Windstorm Underwriting Association (FWUA). The result of the merger was called the Florida Citizens Property Insurance Corporation.

Through Florida Citizens Property Insurance Corporation, damages and losses experienced by homeowners in high-risk area in the sunshine state of Florida are covered much more efficiently and effectively. In addition, the insurance policies of Florida Citizens Property Insurance Corporation provided insurance coverage for those who cannot find enough coverage in the open, private insurance market.

Representing the diverse regions of the state, operations of Florida Citizens Property Insurance Corporation are directed by a seven-member Board of Governors. These governors, appointed by the State Treasurer for three-year terms, are responsible for ensuring a smooth run of business at Florida Citizens Property Insurance Corporation. In addition to the Board of Governors, the State Treasurer also appoints a technical advisory board who will provide information and advice important for business operations at Florida Citizens Property Insurance Corporation.

Louisiana Citizens Property Insurance Corporation

The Louisiana Citizens Property Insurance Corporation was created to run the state-created entity of Coastal and FAIR Plans. The legislature established the Citizens Property Insurance Corporation to help stabilize homeowners in Louisiana.

Louisiana Citizens Property Insurance Corporation is a combination of the Louisiana Joint Reinsurance Plan (FAIR Plan) and the Louisiana Insurance Underwriting Plan (Beach Plan). The Beach Plan offered insurance coverage for those in Zone 5, which is the most hurricane-prone area of the Louisiana state. On the other hand, the FAIR Plan covers insurance in the rest of the state. With the combination of these two then, the new Louisiana Citizens Property Insurance Corporation can cover a wider spectrum, offering more protection for the Louisiana homeowners.

The Louisiana Citizens Property Insurance Corporation helped create new businesses and renewed some insurance policies for better coverage for their citizens statewide. The Louisiana Citizens Property Insurance Corporation can cover up to $350,000 cost of damages of the home, additional structures, contents, and liability. For their Fire Dwelling policy, the Louisiana Citizens Property Insurance Corporation provides coverage up to $225,000.

The Louisianan state government has given the Louisiana Citizens Property Insurance Corporation the authority to keep some of its revenue — tax free. These revenues can be used by the Louisiana Citizens Property Insurance Corporation to build up a fund that can pay off claims in the event of a natural disaster, like floods. In cases of major disasters and the Louisiana Citizens Property Insurance Corporation fund is not enough to cover all damages, the company may issue bonds to pay insurance claims.

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“Citizens Property Insurance Corporation” – 19 ( 4.2%)

Citizens Property Insurance Corp was created in 2002 when the Florida legislature passed a law combining the Florida Residential Property and Casualty Joint Underwriting Association (FRPCJUA) and the Florida Windstorm Underwriting Association (FWUA). The purpose of Citizens Property Insurance Corp is to provide insurance coverage for homeowners in the Florida areas that are considered high-risk.

The occurrence of hurricanes in the sunshine state has always been considered natural by most people. But the damage brought by these hurricanes has caused many private insurance companies to not offer policies that provide enough insurance coverage. Because of this, Citizens Property Insurance Corp was established.

A state-run insurer, Citizens Property Insurance Corp offers coverage of up to $350,000 of total damage and repair costs. Citizens Property Insurance Corp also includes other buildings besides the actual house and contents and liability.

Impact of the four hurricanes on Citizens Property Insurance Corp

The recent occurrence of the four hurricanes — Charley, Frances, Ivan, and Jeanne — in Florida has caused Citizens Property Insurance Corp a total net loss of $1.77 billion. As a result, Citizens Property Insurance Corp has increased its premium prices on their windstorm policy. This increase in Citizens Property Insurance Corp premium is projected to reach up to 67 per cent.

Being the largest insurer in the Florida state, the changes in the premium prices of Citizens Property Insurance Corp’s policies may cause other smaller insurance companies to up their premiums.

After the four hurricanes, Citizens Property Insurance Corp was left with almost 92,000 claims, the number of which is still expected to rise within the next few months. To keep up with all these claims, Citizens Property Insurance Corp increased their yields by an average of 11.9 per cent.

Citizens Property Insurance Corp will get the biggest bite from Hurricane Charley at an estimated $925 million in losses, according to Risk Management Solutions. The next one to bore a hole through Citizens Property Insurance Corp is Hurricane Jeanne with cost of up to $332 million. Hurricanes Frances and Ivan would also take some $532 million in total losses from the insurance funds of Citizens Property Insurance Corp.

Today, Citizens Property Insurance Corp has a surplus nearly reaching $1.2 billion, not counting the additional $40 million from monthly premium incomes. Yet, even with this money, Citizens Property Insurance Corp is still unsure whether they will have a deficit or they will have to assess. Should Citizens Property Insurance Corp run out of funds, the state’s other insurance companies will be assessed. Citizens Property Insurance Corp will then pass those costs to their customers through these companies.

Citizens Property Insurance Corp can assess all property and casualty insurance companies, except worker’s compensation and medical malpractice. The Citizens Property Insurance Corp assessment will probably be 2 per cent of each company’s billed premiums. If the premium price is $1,000, the 2 per cent assessment would cost around $20.

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“Citizens Property Insurance Corp” – 22 ( 4.5%)