Should I Consider Home Warranty Insurance?

Should I Consider Home Warranty Insurance?

By: Jeffrey S. Ragan

| Posted: 02nd December 2011

For many people looking at buying a home for the first time, the subject of home warranty insurance comes up before completing the transaction. Is this type of insurance really necessary? My answer is Yes and No!

Pros and Cons of Home Warranty Insurance

The new home buyer has fears when buying a home and rightfully so. They do not want to experience a major repair bill shortly after buying their new home. So to help relieve these fears, real estate agents sometimes offer home warranty insurance to help close the deal. Many times they may have the seller pay this or they might even pay for it themselves. The average price for this is $300-$1500 a year.

So you can be sure, it will be bought at the lowest costs for one year. After all, this is just a pacifier to help you settle down with your worries and close on the house. So in my mind, if it's FREE then go ahead and take them up on the deal. Or, you can choose the provider and see if they will use the company you recommend. I found one company after an exhaustive research that has a good reputation. More on that later.

Now, you need to keep a few things in mind.

First of all, you get what you pay for. We've heard that one before, right? Second, most of the home warranty insurance companies out there are not very reputable. Many have a history of complaints and dissatisfied customers. It seems that the 3rd party contractors sent out on the claim always have a reason not to replace or even repair in some cases.

So what can you as the home buyer do?

First you need to know exactly what is covered and how extensive this coverage is.

The short list of coverage is:

• Appliances
• Inside Electrical System
• Interior Plumbing not Including the Fixtures
• Heating and Air Conditioning

How to Evaluate This Type of Insurance

So your job will be to find out how much coverage you have and for how long. You must realize that there are different levels of coverage. In some cases they may cover the furnace but not the air conditioning unit sitting outside. You have to ask. You want to understand. Also you need to know the reputation of the company. You can find out quickly by using the internet and typing in their name.

Almost all of them will have some complaints, you are looking at how many they have and are they resolved.

The good thing about having home warranty insurance is it can give you peace of mind since you are likely stretched on the budget anyway. The last thing you want is to have an appliance or a furnace go out in the first year after moving in.

Another thing you need to watch out for is "pre-existing, defects or deficiencies" since these are not covered. You will find that most all home warranty insurance companies will not allow the policy to take effect until you have lived in the house for at least 30 days.

Now the bad thing about this type of coverage is most of the contractors called out on a claim will try to wiggle out of doing any replacement of appliances etc. I'm sure you can understand why. They are not really getting paid much money for being there. Suppose you needed a new furnace and the cost was $5000. The yearly premium of $300 paid by your seller will not cover this. Who will make up the difference?

So it's a true numbers game as it is with all insurances. So you want to be sure you are with a home warranty insurance company that has the least amount of complaints and the best customer satisfaction.

I did a great deal of research to find one and was able to discover one company that rises to the top of the heap. Out of dozens of companies I researched I found one for you that seems to take good care of their customers.

If you want to learn more about how home warranty insurance works and what company may be the best fit for you, feel free to pay a visit to our website.

Jeffrey Ragan has several years of experience helping people reach their goals and wants to help you learn more about the best home warranty insurance company and other helpful information on their website, First-Time-Home-Buyer-Solutions.com.

Source:

http://jeffreysragan.articlealley.com/should-i-consider-home-warranty-insurance-2395621.html

Texas Home Insurance Renewal Premiums Are On The Rise

Texas Home Insurance Renewal Premiums Are On The Rise:
By: Jackson Insurance Services
| Posted: Aug 13, 2010

Are you getting sick of your Texas home insurance premium increasing with no idea why?

This article explains some of the factors that can affect your homeowners insurance in Texas.

There is going to be a surprise waiting for you in your mailbox and it is not the kind of surprise that you are going to like. Texas home insurance premiums are going up this year at a pace I have not seen for more than 20 years!

Not every one is going to get hit with big rate increases, but if you do get hit, there are ways for you to minimize the overall impact to your budget and still keep your coverage. But before we get into that, lets try to figure out what is happening here.

Providing the best Texas homeowners insurance quotes online.

Are the Rate Increases Caused by Natural Disasters?

To a certain degree, yes. I have to believe that some of the increase can be traced to the catastrophic losses of 9/11 Attack on the World Trade Center. It is estimated that the total losses from the tragedy will go over $70 Billion Dollars, that is $70,000,000,000. There is no question that the money necessary to pay for the destruction and losses will come from almost every insurance company in one way or another. But the premium increases forhome insurance had started long before that fateful day.

Insurance Premiums on Homeowner Policies Have Gone Up Less Than 2% Per Year the Past 10 Years.

I am sure you are saying, How can that be, it seems that my rates have gone up every year? You are partially right. The total premium may have gone up, but the amount of coverage has also gone up to keep pace with the increasing cost of construction and materials used to rebuild houses. Inflation has continued to increase and push the cost of replacing homes and property higher year after year. Your policy adjusts the coverage on your home each year in an attempt to make sure you have enough coverage in the event of a catastrophic loss.

It's a Fact: Insurance Companies Made a Lot of Money in the Stock Market During the 1990s and That Was Good For You.

Insurance companies invest their money just like everyone else. During the 1990's they made money on their investments just like everyone else. In fact, many home insurance companies were willing to write insurance at a loss because they knew they could make it up on investment income.

For most of the 1990's, insurance companies were able to keep your premiums lower than they would have been because investment income they earned more than offset the losses they paid out. As consumers, we really shouldn't have a problem with that, part of our premium is offset by the insurance companies investments, resulting in lower premiums.

Then...the Stock Market started to fall apart in the middle of 1999.



All of a sudden, the investment income fell off, but the losses didn't. Insurance companies were now faced with the prospect of mounting losses if they kept the rates at the low level. One of several options was to increase premiums across the board and increase they have.

No Loss Discounts and Loss Surcharges Affect Your Premium

Clients that do not turn in claims make insurance companies lots of money and should be charged lower rates.

Sounds pretty simple doesn't it? Unfortunately, the rule works the other way, too. Insurance companies are going out of their way to give clients without losses discounts and premium credits to reward them for not having a claim.

If you have a claim or two, you can expect to pay a higher premium for a few years. We know no one plans to have a claim, in fact it's a real pain to go through the process, but it's no different than auto rates going up if there is an accident.

One other problem is the size of losses have gone out of sight! We have seen the average size of closed claims in our office go from $2,350 in 1993 to over $6,425 in 2002. The fact is that it just costs more money to make repairs to houses today than it used to.

Big changes are happening in the insurance market.

Deductibles Can Save You BIG Money!

Back in the days when I first started in the business, homes were insured for $35,000 and the policies had a $50 deductible. In the late 1970 the value of homes headed towards $75,000 and the deductibles went to $100. By the end of the 1980's a $250 deductible was standard on almost all policies written for homes valued over $100,000. Today, with the values of many homes costing more than $175,000 many of our clients are using $500 to $1,000 deductibles to keep the cost of their insurance down.

If insurance companies want to reduce your premium for not turning in claims, you might as well save even more money by increasing your deductible. While you wont save enough to make up the deductible in one year, you will be surprised how much you do save over a few years.

How Much Homeowners Coverage Should I Have?

So how much insurance should you have? Basically, unless you want to pay some of the costs yourself, you should insure your home for what it would cost to rebuild it if your residence were destroyed.

How do you find this out? In the home construction world, building costs are calculated on a square foot basis. We can calculate the estimated replacement cost for your home. Give us a call and we will be glad to update our records and send you a copy for your review.

Your possessions are also insured on a replacement cost or actual cash value basis. Again, unless otherwise specified, the coverage in your policy is actual cash value.

Homeowners policies also have limits on coverage for such items as jewelry, fine art or collectibles.

•For example, the standard policy will provide a maximum of $1,000 coverage for your jewelry if it is stolen. If you have lots of jewelry, fine art or collectibles, you should consider purchasing a special personal property endorsement or floater that provides the coverage you need.
8 Ways to Save Money on Your Insurance Year After Year

Now that we have given you the bad news, here are 8 ways you can pay less for your texas home insurance.

In many cases, you can get the same level of coverage for fewer dollars.

1.Take advantage of multiple policy discounts!
1.Do you have a auto insurance Texas policy?
2.Texas home insurance policies.
3.If so, is it with the same insurance company that provides your homeowners insurance?
4.Many insurance companies offer multi-policy discounts.
5.Usually, these discounts are at least 10% and at the most 27%.
6.some insurers apply the discounts to both the auto and the homeowners or any other Texas property insurance policy.
2.Raise Your Deductible
1.The deductible is the amount you pay before insurance kicks in if you have a claim.
1.For example, if you have a $250 deductible and you file a claim for $1,000 in damage to your home, you pay the first $250 and your insurer pays the balance, $750.
2.The higher the deductible you choose, the more you pay out of your pocket.
3.However, the higher the deductible, the less you have to pay for your policy.
4.Depending on the insurance company, you can save between 12% and 37% if you change a deductible of $500 to $5,000.
3.Newer Homes Are Rated Better
1.Insurance companies really like newer homes.
2.Recently built homes equals lower premium because there is less likelyhood something will go wrong with the electrical, heating and plumbing systems.
3.In addition, the structure itself is in better shape.
4.Insurers offer discounts of as much as 8% to 15% if your residence is new.
4.Insure the replacement cost of the house itself not the land.
1.There have been times when mortgage companies want us to increase the amount of insurance to be equal to the mortgage on the property.
2.You want to insure the rebuilding cost of the house and without including the value of the land in the in the total replacement cost.
5.Don't insure more than you own.
1.If you have made a major purchase, you will want to increase your limits of coverage, but what if you sell something? You don't need as much coverage.
2.Pay particular attention to items that are covered by endorsements or added floaters to your policy, items such as jewelry and computer equipment.
6.Do not leave your house unprotected.
1.Smoke detectors, burglar alarms and deadbolt locks are usually worth discounts of at least 2%.
2.You can get even bigger discounts, 8% to 10%, if you install a sophisticated sprinkler system or an alarm system that rings at the police station or a security company.
3.Before you install one, check with your insurer to find out what type of system qualifies for a discount and how much you would save on your premium if you installed the system.
7.If your dog bites, beware of lawsuits.
1.If you have a dog or dogs, particularly if it's a more vicious breed, you will pay more for Texas liability insurance coverage.
2.More and more dog bite claims are being presented, which has some insurers not exactly eager to provide coverage to homeowners who have.
1.for example, Rottweilers, Pit Bulls and Dobermans.
3.If you are considering getting a dog, keep this in mind: If you own dogs of certain breeds, your premium will probably go up.
4.Your insurer could decide to cancel or non-renew your policy.
5.For that matter, if your dog is likely to bite someone - of any breed - you are risking higher premiums and cancellation
8.Keep Your Credit Score in Top Condition
1.Insurance Companies are relying more and more on credit scoring to determine insurance premiums.
2.They have found that people with low credit scores have almost three times the losses than people with top credit histories.
3.Get rid of unused credit cards and pay your bills on time. It will pay off in the long run.


I wont kid you. There is more to this insurance game than saving money. In fact, while it's nice to lower your insurance costs, it's probably even more important to make sure you, your loved ones and your assets are covered adequately. It's not a pleasant thought, but insurance is about worst-case scenarios. It's also about peace of mind, knowing that you have the worst-case scenarios covered.

Do you have Texas insurance questions?

We are here to help you manage your insurance protection. We promise that we will be honest with you and try to get you the best insurance coverage for your dollar. We cant always have the cheapest rates around, but I can guarantee you that we will do everything possible to make sure that you are getting all the discounts you deserve and have your insurance with one of the top insurance companies doing business today.

About the Author

At Insurance Over Texas, we take a personal interest in our customers. We like to share information that comes to help you protect yourself and your family from financial loss. If you have any questions, regarding this information or your current insurance coverage, please do not hesitate to give me a call, shoot me an Email, or contact us.

Source:
http://www.articlesbase.com/insurance-articles/texas-home-insurance-renewal-premiums-are-on-the-rise-3035778.html

How to shop around for general insurance?

How to shop around for general insurance?
By: Insurance Matter UK
| Posted: Aug 14, 2010

Types of general insuranceGeneral insurance only pays out when an insured event occurs. It includes:home insurance (contents and/or buildings)car insurancetravel insuranceprivate medical insurancepet insuranceaccident, sickness or unemployment insurance to protect your income, mortgage or loan payments (also called 'Payment protection insurance')critical illness insurancelong-term care insurance

How to shop around for general insuranceWith so many insurance deals on the market it's worth shopping around. Key points to compare include:suitability for your particular needscostflexibility: what happens if you miss a payment or wish to cancel or switch?terms: when does the policy pay out/are there restrictions?'Keyfacts' documents to help you shop aroundWhen you contact an insurance provider, they will give you details of the service they offer. This can normally be found in the 'about our service document'.Once you've discussed what you need and answered all the questions about yourself and what you want to insure, the intermediary, insurance company or the firm selling you the insurance will give you key policy information. This sets out the essential facts.

1. Buying insurance - learn more on Moneymadeclear from the FSA:
Getting helpYou can buy insurance yourself or with the help of a broker, but either way you'll get key policy information about the insurance and what it covers.Generally, firms selling insurance and those providing insurance cover (underwriting the risk) have to be regulated by the Financial Services Authority (FSA), the UK's financial services regulator, or be the agent of a regulated firm. There are some exceptions, for example the sale of extended warranties on non-motor goods (such as on electrical goods) where the person selling the insurance is also providing the goods.Regulated firms and their agents are put on the FSA Register and have to meet certain standards. Always make sure that the firm you use is on the FSA Register before handing over your money. If they aren't regulated by the FSA, you won't have access to complaints and compensation procedures if things go wrong – see If things go wrong. To find out if a firm is on the FSA Register, see Check the FSA Register.Your friends or family may recommend an insurance broker or insurance company or you can find one along your high street.

Alternatively there are organisations that can help you – see Useful links. But remember, always check that the firm you use is on the FSA Register.If the firm is not on the FSA Register, or if you have been contacted by or dealt with an unauthorised insurance firm or broker, it would help the FSA if you would provide some information on your dealings with that firm or individual. See its list of Unauthorised firms/individuals and report any dealings using its Unauthorised firms reporting form.Buying without adviceYou don't have to get advice before you take out an insurance policy, and UK firms that sell insurance without advice still have to follow the FSA's rules. But it is up to you to decide whether the policy is suitable for you. You may have less grounds for complaint if the product turns out to be unsuitable.Comparison websitesComparison websites will ask you several questions and then provide you with quotes from various brokers and insurers. None of the websites cover the entire market, and some larger insurers are not represented on any of the websites, so you may wish to contact them directly. The comparison website should contain a list of the brokers and insurers they search.Some insurance comparison websites may ask you fewer questions to speed up the process, and instead make a number of assumptions about you. Always check the assumptions made about you and correct them where necessary.Most comparison websites will automatically pass your information on to a broker or insurer.

Although this means you don't have to provide them again, you should check that the correct information has been provided to the broker or insurer. If anything is incorrect you should either change the information on the broker or insurer's website, or contact them and ask them to change it.The Association of British Insurers (ABI) has a voluntary good practice guide for insurers, brokers, software houses and insurance comparison websites when providing online price comparison quotes for insurance.This will mean that you'll get information to help you understand more about the policy you're being offered. It also says that insurers who are unable to provide a quote to a customer (for example due to age or health) should refer them to another provider who may be able to offer them cover.When using a comparison website make sure:adverts about the site don't make misleading claims about their market coverage – none of them covers the whole market, so if they claim to, this is unlikely to be true;you fully understand what savings you can make if the firm is advertising what looks like an attractive rate;the assumptions made about you are accurate and the same as the ones on the insurer's quote; andyou understand what excesses you might have to pay.See our Shopping around guide for more information.What information will you get?When you contact an insurance broker they will give you:details of the service they are offering you – see Step 1; andinformation about the insurance policy being offered to you – see Step 2.Step 1 – Getting the KeyfactsWhen you contact an insurance provider, they will give you details of the service they offer. It may be in a  about our service document, but doesn't have to be.

They will tell you:whether they're offering you advice or just information about the product;whose insurance policies they offer – it may be from one company or many; andhow much you'll have to pay for the service.Use this document, or information to shop around to get the service you want at the price you're happy with.Step 2Once you've discussed what you need and answered all the questions about yourself and what you want to insure, the intermediary, insurance company or the firm selling you the insurance will give you key policy information. This sets out the essential facts. Ask questions if you don't understand anything as misunderstandings could lead to the insurance company refusing to pay out when you claim.The policy information will set out:what the insurance policy actually covers;what it doesn't cover;any limits or restrictions; andother important features you need to know before you make up your mind.Make sure you get this and that you read and understand it. Ask the provider or insurance company to explain anything you don't understand.Use this document to shop around and compare like with like. Another policy may be cheaper but does it offer the same cover?
2. How to check if a firm is FSA authorisedYou can check whether a firm or individual is FSA authorised by using the FSA online 'Check our Register' service.Find out how to use the FSA Register and what to consider when looking for a firm or individual.
Firms are put on our Register once we have given them permission to carry out a particular activity. Firms that work as ‘agents' for other firms are also on our Register and are also known as ‘Appointed representatives' or ‘Tied agents'. After that we monitor that they follow our set standards, known as being ‘regulated'.
Always make sure that the firm you use is on our Register before handing over your money. If they aren't regulated by us and things go wrong, you won't have access to complaints procedures and compensation schemes, for example the Financial Ombudsman Service and Financial Services Compensation Scheme (FSCS). Some payment services firms do not have to be on the FSA register until May 2011, but you can still take complaints against them to the Financial Ombudsman Service.
3. The difference between information and adviceYou can buy insurance after getting advice, or based on information after shopping around. Read our related article to understand the difference between buying with or without advice and the relative pros and cons.
The difference between advice and informationWhen you get insurance advice, the broker or adviser looks at your individual circumstances and needs and recommends a policy to meet them. This often involves a face-to-face meeting, but you can get advice in other ways, for example by telephone, email, or through the post. Under FSA rules, if the advice turns out to be unsuitable you have the right to complain and, in some circumstances, may be able to claim compensation.Buying without adviceUK firms that sell insurance without advice still have to follow FSA rules, for example by providing you with certain information about their service and products (see next section). But if you buy this way it's for you to decide whether or not you think the policy is suitable for you. If things go wrong it may be harder to complain.Information the insurance broker must give youFSA authorised firms must follow certain rules and standards when dealing with you, including giving you certain information.Information about a broker's serviceWhen you contact an insurance provider, they will give you details of the service they offer. It may be in an 'about our service document', but doesn't have to be.They will tell you:whether they're offering you advice or just information about the productwhose insurance policies they offer - it may be from one company or manyhow much you'll have to pay for the serviceUse this document, or information, to shop around to get the service you want at the price you're happy with.Information about the insurance policyOnce you've discussed what you need and answered all the questions about yourself and what you want to insure, the intermediary, insurance company or the firm selling you the insurance will give you key policy information. This sets out the essential facts.For investment-type insurance they must give you a more detailed key features document which includes an illustration of how your investment might perform over time.

About the Author

Insurancematter.co.uk is a categorized and easy to use directory of the best online insurance sites available for British Customer. Each insurance site in our directory has been reviewed and placed in a proper category to make it easier for online shoppers to find at home or at the office and buy their desired cheap insurance online. In addition, for your convenience and in order to have more choices when buying online, we have added some great international insurance web sites that are mostly located in the USA & Canada and they deliver insurance service to the UK.

In order to help British Insurance Shoppers to shop at home and buy their favourite products online, we've also added some popular Comparison website that offer best deal like Gocompare.com, confused.com, moneysupermarket.com etc. In fact, you can use this site as an online Insurance mall with a variety of online and high street insurance providers.

We have done our best to make this directory the best online insurance source for British shoppers who want to buy cheap and best affordable deals at home or at work.  you have any suggestions about how to improve our website, please do not hesitate to contact us. We would be happy to hear from our visitors.

Source:
http://www.articlesbase.com/insurance-articles/how-to-shop-around-for-general-insurance-3040526.html

Finding the Right Home Insurance for your Home

Finding the Right Home Insurance for your Home:
By: Home Insurance Quotes
| Posted: May 05, 2011

Choosing house insurance is an important part of being a home owner, much like many of the other expenses you will have when you own your own home, what you pay for home insurance is not cast in stone. There will always be ways to find more affordable insurance for your home, without having to spend hours and hours of your time trying to find the most affordable insurance. It is important that you do not sacrifice your coverage for the price you pay, but fortunately with the miracle of the Internet you will be able to find affordable insurance that still provides the excellent coverage that you need.

The biggest way to save money on your home insurance is to not assume that all insurances are the same and to simply take the first policy that is offered to you. May companies overprice their insurance for homes so it is up to you to get several quotes not only so you know what insurance should cost but so you will know a good deal on your home insurance when you see one.

Another way to save money on your home insurance is to keep track of the insurance that you have on your home. Some insurance may not be necessary for your home, and dropping that insurance could potentially save you hundreds of dollars every year. If you insure the contents of your home and most people do, you should keep track of this as well, if the value of your possessions changes you may find that you are over insured or underinsured for the value of your contents.

Getting insurance quotes is always the best place to start when it comes to your home insurance, not only will this give you some numbers and coverage to work with, but you can begin the task of researching what insurance company is right for you. You should never look just at the cost of your insurance as your determining factor, while always an important considerations; cost should be secondary in your final decision for home insurance.

You will want to look at the coverage that is being offered as well as the overall value of that coverage. Insurance is sometimes cheap for a reason, which means that you should look at what you are getting for the premium cost, to see if it really is a good deal. Hand in hand with this you should also look at the individual insurance companies this is also a very important part of the process.

Not all insurance companies are the same, some may give you a great deal of difficult in paying out when you need to make a claim while others may cancel your insurance with the first claim you make. While this is very common in the insurance industry not all insurance companies have these issues, so it will be up to you to do the research to find the company that that has the best reputation. Surprisingly it is some of the biggest and most common companies that have the biggest issues so do not use size or popularity as your only guide to finding the right insurance company for you.

Once you have a handle on cost, coverage and reputation you will need to balance these three factors, your decision may surprise you at this point and you may find that the insurance that you end up buying is not the one that you would have figured on before you started this process. This is why it is so important to do your homework carefully and to ensure that you have all the facts. Sure this will take you some time, but if it is going to save you hundreds of dollars every year you will find it is more than worth the cost.

Fortunately because of the Internet this process takes much less time that it would have taken 15 years ago, then you would have had to visit agent after agent, and work much harder to get all the information you needed. You may still have made the wrong choice even then because reviews were not as easy to get then as they are now.

Your process starts by visiting a quote site that can offer you several quotes with one form. At Home Insurance Quotes you will find that the quote process is simple and will yield you plenty of results from which to being your work. We offer you information on how to choose the right insurance in addition to our easy and fast to use quote form.

About the Author

Largest choice of home insurance policies to compare. Get home insurance quotes online that fit your needs and budget.

Source:
http://www.articlesbase.com/insurance-articles/finding-the-right-home-insurance-for-your-home-4730941.html