Archive for June, 2009

Why home insurance companies are sensitive to lapses in the insurance?

When I shop for a home insurance I am always asked if my home is currently insured or if there are lapses in my insurance policy. Some companies outright refuse to give me a quote when I tell them that I haven’t had home insurance in the last 3-4 months. I am wondering why this is important for them?! They just referred to their company policy and did not give me any meaningful reasoning. Thank you for your answer.

Insurance companies are wary of lapses in any kind of insurance policies. In your case it just happened to be home insurance.

The single most feared factor in the insurance business is not hurricanes, not bush-fires, not wars, not meteor strikes but what’s known as ‘moral hazard’. Moral hazard is, in simple terms, lack of inhibition in preferring a claim under less than above-the-board circumstances.

For example, if your camera is insured for home use only, you cannot make a claim if the insured camera suffers damage during a jungle safari. Most of us, being honest persons, would not even want to claim under such circs. However, since, as a rule it takes all kinds to make this world, there exist individuals who would make a claim as if the damage occurred at home. Such individuals are considered to be ‘moral hazards’.

Coming back to your original question, insurance companies know from empirical evidence that the incidence of moral hazard is greater – much greater – in those cases where there’s a break iin coverage. It’s likely that the insured is trying to renew the policy after a loss has occurred.

You need to provide evidence to the insurance company that you did not intend to let the policy lapse. That it lapsed, is a fortuitous happenning (please note the wording – underwriters love such language) and not a deliberate omission. ‘I do not want to be penalised for something over which I had no control’ is the line you need to take. You could strike lucky with this line.

How long should it take for you to get your wedding photo album complete?

I'm approaching the annivesary and wedding insurance will not cover soon they better hurry up I take it this is unusual?

If you're working with a professional photographer and purchased an album along with their services, you should generally get your album about 6 to 8 weeks once you approve the design of the album layout.

If you haven't heard from your photographer in a while, give them a call to see what is the hold-up.

Gary
www.garyandaneta.com

Furnace needs replacing, will homeowner's insurance cover it?

My mother in law's furnace went out the coldest day of the year, will homeowner's insurance cover the 3200$ + it will cost to replace it? State Farm is the insurer.

Sorry; it won't. The furnace had to be damaged as a result of a covered peril. Wear and tear is not covered under your policy. I am in the same predicament. I will need a new furnace within a year according to my oil company. What a horrible expense!

why did honeywell pursue integrated risk management?

what were the upsides of an integrated risk management program compared to their previous hedging and insurance program?

Eventually, all larger companies will pursue integrated risk management, because it's more cost effective.

Do you think if we had a fourth generation American Hispanic as our president he would?

he/she be sympathetic to all Mexico citizens? Do you think he/she would give illegal aliens more and more freedoms?

I would think he/she really couldn't identify with Mexico's citizens, but do you think he/she would attempt to strictly because of race? It's a hypothetical, but was just curious of your opinions.

I have many third generation Hispanic friends and, besides their skin color, you would never know they were Hispanic. One sounds like a surfer when he talks. None of them can speak fluent spanish. And they don't like illegals b/c many have had auto accidents caused by illegals, and they never have insurance. They just don't identify with them at all.
I'm an independent. I voted for Bill, then Gore, Dubya, Hillary in the primaries, then McCain for prez. So I'm all over the place. I just know I really don't care for Obama or his policies.

i'm a first generation, and i don't sound "mexican" at all

why are the Banks and mortgage companies crying about loses when all the home loans have mortgage insurance?

I dont see why they have loses, its the insurance companies that are losing. The Bank collects on the default loan and have the houses too!

Actually, insurance companies have insurance. Ever hear of reinsurance? I know, it pissed me off to learn that as well. None of them are really losing which is why they keep getting richer. Did you know insurance takes about 12% of your net income? Auto, health, dental, life, unemployment, etc.

Also, the properties that don't have PMI are the ones where there is 20% I believe already paid up. That's why the PMI goes away since there is enough to recover from factoring in the house, insurance, etc., etc. It's a whole numbers game, but don't believe that the banks lose out. They've been practicing the art of banking for hundreds of years, you've been doing it for like ten? Whoever thinks the banks will lose on more than a tiny fraction of deals is in la la land.

Who's responsible in this car accident?

I'd a car accident. The driver of the other vehicle isn't the owner of the car. He's the worker at the commercial property, the accident took place at the commercial property. Who is responsible in the case? The insurance of the commercial property or car insurance of the other vehicle, or both in this case?
It's the other driver.
I wonder who is responsible on his side

If the driver was in the course and scope of his employment and had permission to use the vehicle, the commercial property owner's insurance company would provide coverage to the driver. He would be considered an "insured" by definition under the commercial auto policy. The driver's personal auto would likely deny coverage if he was working at the time of the accident, but that would be subject to interpretation of his personal auto policy.

Call the commercial property's insurer and file a claim. They will complete an investigation and let you know if they accept liability.

WHO IS GOING TO BAILOUT AMERICAN AND AMERICAN GOVERNMENT?

The way every big corporation is bailed out starting with Mortgage companies,banks,insurance companies,auto industry, airlines and the list is un-ending. One day that is not too far when the US Government needs a bailout.Then who is going to bail out US Government and common American?

Citibank, AIG, and the American automanufacturers. Don’t they owe it to the government to bail them out?

I cannot find the TEXAS FARM BUREAU INSURANCE COMPANY WEB SITE FOR ONLINE PYMTS.?

https://www.txfb-ins.com/PolicyHolder

Try this website. This is the portal for texas farm bureau insurance company online payments

and the home page is

http://www.txfb-ins.com

Hope you find this helpful

I am looking for a place online to research and buy life and health direct insurance for me and the family?

Anyone aware of a site for this? Is it a good idea. I know life and health are complicated but I think agents make it confusing sometimes…

www.winquote.net is the one I go to for life insurances.

Personally, I would avoid buying or shopping on line. Cheapest is not always the best, plus every situation is different.

Example: There is a company in Canada that has a stop smoking incentive for their clients. You quit smoking within the first 2 years of having the policy and they’ll refund most of the extra cost for being a smoker back to when you first took out the policy. Initially they are more expensive, but if a person is already thinking of quiting or recently quit, they will get that extra paid premium back, which makes the insruance one of the cheaper ones (this company is cheap on non-smokers, but a little more expensive on smokers compared to others in the industry). Shopping online won’t tell you that….