Hurricane season approaches. Are you ready?

In other words, do you have the right insurance and the right amount.

Start off by looking at whether you are at risk of flooding in a storm. A homeowner's policy doesn't cover flooding, something many people unhappily find out each year.

Start by plugging your address into the National Flood Insurace Program's Web site to see the likelihood of your neighborhood ending up under water someday. Mortgage companies usually require homeowners in high risk areas to have flood insurance. But even in areas with a low- to moderate-chance of flooding can suffer severe water damage.

The federal government offers flood insurance and you can buy it from a regular insurance agent. The maximum coverage is $250,000 for a house and $100,000 for contents. Renters, too, can buy it.

And if you have a very ritzy house, some private insurers also offer limited coverage that takes over once the federal coverage cuts off.

The Maryland Insurance Administration is also advising residents to make sure they have enough insurance. Make sure you are "insured to value," which means you are covered up to the actual amount it costs to rebuild your house.

Continue reading "When a hurricane comes calling" »

Posted by Dan Thanh Dang at 10:10 AM | Permalink | Comments (0)
                    

What’s the top complaint by consumers about their insurance? Delays in handling claims. The No. 2 gripe? A denial of that claim.

Consumers complain most about auto insurance — accounting for more than 38 percent of complaints so far this year. More than 37 percent of complaints this year were over accident and health insurance.

The National Association of Insurance Commissioners compiles this information through its Consumer Information Source. It recently started making the information easily accessible to the public online. The group plans to update the stats each month.

Perhaps the most consumer friendly features of the Web site, though, is that the NAIC makes it easy for consumers to file a complaint with their state insurance administrator. You can click on the state and submit your complaint online.

It also allows you to plug in the name of an insurer and see the number of complaints and the company’s financials. You want to check out an insurer’s health before buying a policy to make sure it has the funds to keep its promise to you.

For instance, Carefirst of Maryland Inc. had a total of 403 complaints in Maryland in 2007. The company also had $1.13 billion in assets and $621.5 million in liabilities. The net premiums earned reached $1.4 billion. More than half of the premiums come from the federal health plan.

Check out your insurer.

Posted by Eileen Ambrose at 1:33 PM | Permalink | Comments (0)