Property Casualty Insurance
Mortgage insurance – Wikipedia, the free encyclopedia
January 6, 2011 | Author admin
Mortgage insurance (also known as mortgage guaranty) is an insurance policy which compensates lenders or investors for losses due to the default of a mortgage loan. Mortgage insurance can be either public or private depending upon the insurer. The policy is also known as a mortgage indemnity guarantee (MIG), particularly in the UK.
For example, Mr. Smith decides to purchase a house which costs $150,000. He pays 10% ($15,000) down payment and takes out a $135,000 ($150,000-$15,000) mortgage. Lenders will often require mortgage insurance for mortgage loans which exceed 80% (the typical cut-off) of the property’s sale price. Because of his limited equity, the lender requires that Mr. Smith pay for mortgage insurance that protects the lender against his default. The lender then requires the mortgage insurer to provide insurance coverage at, for example, 25% of the 135,000, or $33,750, leaving the lender with an exposure of $101,250.[1] The mortgage insurer will charge a premium for this coverage, which may be paid by either the borrower or the lender. If the borrower defaults and the property is sold at a loss, the insurer will cover the first $33,750 of losses. Coverages offered by mortgage insurers can vary from 20% to 50% and higher.
To obtain public mortgage insurance from the Federal Housing Administration, Mr. Smith must pay a mortgage insurance premium (MIP) equal to 1.75 percent of the loan amount at closing. This premium is normally financed by the lender and paid to FHA on the borrower’s behalf. Depending on the loan-to-value ratio, there may be a monthly premium as well. The United States Veterans Administration also offers insurance on mortgages.[
Business Insurance – And What You Need To Know – Article Blast! Free Articles And Content For Reprint On Your Website, Newsletters and Ezines. Submit Your Articles For Free!
December 22, 2010 | Author admin
Getting your business up and running is exciting, challenging and hard work. You’re finally making money – and you are the driving force that is making your business grow. But have you taken care of the “What ifs”. Like – “What if I get sick, how do I pay my bills” or “What if I have a fire, how do I keep my business running”. Simply put, the one thing you do not want is to have the business that you have labored so
tirelessly on, hit a financial snag.
If you are a sole proprietor or a partnership – both your business and personal liabilities are at risk. Do you think you’re safe if you incorporate or have an LLC? Many are misled into believing this is so, however, you too can become personally liable if you sign a personal guarantee on a loan, personally injure someone or act irresponsibility. As you will see, owning business liability insurance can and
does protects your business and personal life from financial ruin. My discussion here will be limited to Business Interruption,Overhead, Umbrella Liability and Liability Insurance – explaining what these four types of insurance are, and what they can offer you and your business.
Business Interruption Insurance
Business Interruption Insurance helps to insure against any economic losses that you may encounter if something should happen to close down your business. For example, you have a fire in your corner of the house – your business office.
Your home is covered for property damage – thus, the rebuilding is covered, however, what about the lose income you’re losing while you rebuild? That’s where Business Interruption Insurance can come in to play.
Overhead Insurance
There is one type of business insurance that you may want to consider when your business is making a good profit, and that would be Overhead Insurance. Overhead Insurance covers rent, salaries, utilities, insurance premiums and/or interest payments that are related to the business – this type of insurance would cover you in case of a major illness or accident.
Umbrella Liability Insurance
Umbrella Liability Insurance is used for catastrophic losses. This will protect you in the event someone wants to sue you. An umbrella policy will upgrade your basic auto, homeowners or business insurance to cover these unforeseen events.
Liability Insurance
If you have people coming to your home-based business, than liability insurance may be something you should look into it. Liability insurance will cover you against
claims made by others against you for injuries or damages that occurred on your property.
Yes, your homeowner’s policy includes some liability insurance, but it may not cover you for liability claims caused by your business.
To conclude, life offers many unexpected turns in the road – and basically, that’s what all insurance does – it protects you against those unexpected bumps in the
road – and keeps you moving toward your goals with only limited stales. Personally, I believe I can deal with a small bump in the road better than a complete halt in
business. How about you?
Insurance Tips For New Home Owners
December 13, 2010 | Author admin
If you have just bought your very first home, you are probably unaware of how your purchase has affected your insurance profile and that you need to review your existing insurance cover. In fact, even upgrading from a small, cheap house to a larger family home will impact on your insurance. Most people think that adding some form of homeowners insurance is all that is needed when purchasing a new home. While the addition of a homeowner’s policy is by far the biggest change, your other insurance policies will most likely need to be reviewed too. The following are some of the more prominent policies you may need to revise.
Homeowner’s insurance
If you successfully applied for a home loan, your bank will have required that you take out a homeowner’s insurance policy. The questions that you need to ask yourself are did I get sufficient cover and did I shop around for the best deals?
When analyzing your coverage needs, your assessment needs to be based not only on what is required by your bank, but also on the actual value of the property. Banks often pressurize you to take whatever insurance policy they put in front of you. Except for a few conniving banks, taking the bank’s own cover is not mandatory. This means that you have the option of shopping around for better insurance.
Car insurance
If you just bought a house, your marital status may have changed. If this is the case, then congratulations! You may be eligible for a lower premium as marital status affects your risk profile. Married couples are considered a lower insurance risk by insurance companies. You may also want to cover both your and your spouse’s cars under one policy. This should work out much cheaper than having two separate vehicle insurance policies. You may even want to go one step further and combine your vehicle and homeowner’s policy to get even cheaper premiums. Lastly, it is essential that you update your car insurance policy as your change of address will also affect your policy. This is essential because should you need to claim due to theft from your new home and you have not updated your policy, your claim might be turned down.
Disability and life insurance
If you were to become disabled or unable to work due to an accident or disease, your mortgage will still need to be paid. Disability cover will pay you a monthly benefit if this happens which could very well save you from financial ruin until you are able to work again. Similarly, life insurance will help pay off your debts and perhaps even the mortgage on your home should you pass away. If you are the breadwinner in your family, this type of cover is essential.
Purchasing a new home can be a very exciting experience, but it is important that you remember to review all your insurance policies to make sure that you and your loved ones are adequately covered. If you are unsure of where to start contact your insurance broker and without a doubt, shop around for the best insurance deals!
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What does homeowners insurance cover?
December 13, 2010 | Author admin
Every homeowner should realize the importance of homeowner’s insurance policy. Homeowners insurance policy not only protects the homeowners from man-made and natural disasters, but it also protects you from several other situations.
The basic homeowners insurance policy pays you in case of any damage due to fire, severe storms, tornado’s and hurricanes. Damage to your property, possessions and home are primary elements to be covered. Coverage provided by the policy is not the most important aspect; the most important aspect is the amount they provide in case of any disaster.
Lost of possessions like furniture, electrical appliances, jewelry, clothing are also generally covered by some of homeowners insurance policies, up to a specific percentage of the policy.
Liability coverage protects you in case you are responsible for someone else’s injury or property damage. In such cases home owners insurance will soon provide you minimum 18,000 USD as coverage. Policyholder can buy an extra premium of $1.5 million. Liability coverage also covers certain injuries that happen within the premises of your home such as your dog biting someone. A sum of $700 is paid to the insurer with basic homeowners policy; this can increase up to $5,000 after paying extra.
Dwelling coverage will pay you in case of damage to your outstanding building (garage, storage, shed, fencing, boundary) and your home.
Loss of use coverage will help you in case if your home is damaged due to fire, storm or any other man made or natural calamity. Loss of use coverage will pay your expenses when your home is not suitable to live.
You must think over all the issues before purchasing a homeowners insurance. Consider the reputation of the insurance company and do not make decisions solely based on premiums of policy. Using Internet, you can find reputed home insurance company with best homeowners insurance rate. With a bit of research work you can get the best deal.
Find all you need to know about home owners insurance on the best homeowners insurance rate . Your house insurance source – http://www.house-insurance-guide.net
Using a Homeowners Insurance Calculator
December 13, 2010 | Author admin
You want to get your home insured for a homeowners insurance. What would you do? The first option that would come to your mind would be to contact an insurance agent and get the policy form him with out knowing anything else about it. You have the policy and the agent is happy with his commissions. Well you need to know more about your homeowners insurance than that to avoid any kind of problems when it comes to making actual claims.
The best way to go about it is to do some research yourself. When you do this research you can consult the rating agencies of your state or even the internet can be a very good source of information. Find out what companies give the best deals out there and what kind of coverage they are giving, then the most important factor is to know about the service of the insurance company.
Homeowners insurance calculator help you in getting instant quotes for your policy. This is particularly useful tool if you have to compare what is available with different companies and how can you get the best rates for the kind of coverage you want. A lot of times the cheapest deal is not the best deal when it comes to coverage.
Even while using the homeowners insurance calculator you don’t get the accurate results because there are some factors which can not be taken into consideration by the calculator but they affect your costs to a great extent. Some of these factors can be the location of your home or the construction of your home. Final and accurate figures can be found out only by an inspection or a visit by an official. A calculator however can give you estimates which you can compare to choose a policy for yourself. So it is always better to do a little bit of research before going for any kind of insurance.
Importance of Property Damage Liability Coverage
December 6, 2010 | Author admin
Most motorists tend to focus more on liability coverage that covers bodily injuries; they forget that they also have to worry about possible property damage as well.
Sometimes, the amount of damage to properties even exceeds that of the treatment for personal injuries.
So aside from personal injury liability coverage, all drivers are also advised to get a substantial amount of property damage liability coverage as well.
Definition
Property damage refers to the destruction of a public or private property.
It can either be caused by a person or natural phenomena.
Property damage caused by humans is generally classified by its cause.
The first classification is caused by neglect that includes human error and carelessness. This usually covers car accidents that cause property damage.
The second classification is intentional damage. Property damage under this classification is often malicious in nature.
Property damage liability is a type of coverage that pays for the damages to the vehicle/s and other possessions of the other party if the car accident was your fault.
It is important to note though that it does not cover intentional damages.
Intentional property damage is also considered a form of violence, thus is also a criminal act.
Property damage liability only covers accidents that are caused by human errors that have no malicious intent on your part.
Once approved by the insurance company, your property damage liability coverage should pay not only for the labor and parts cost related to repairing the car of the other party, but also for the valuables damaged inside the car during the accident.
Another important note is that property liability insurance does not cover damages to your own car during an accident.
You can claim for damages to your car from the other party’s insurance company if they are the one at fault.
If the other party does not have or have insufficient coverage, then you can make a claim for uninsured or underinsured motorist coverage under your own insurance policy.
Who needs Property Damage Liability Coverage?
Everyone. Just like personal liability coverage, most states also require drivers to purchase property damage liability coverage as well.
Most states require a minimum of about $5,000 coverage, but personal injury lawyers would recommend that you get a higher amount if you can.
The reason for that is if your liability coverage is insufficient to cover the property damage, the courts may go after your own assets to cover the excess costs.
This could leave you in deep financial debt and even lead to bankruptcy.
Consulting a Lawyer
Before admitting to any fault you should first consult with a property damage attorney to review your case.
This is to decide whether it is really you who is at fault; because sometimes we may feel that it is our fault only for the investigation to show otherwise.
This will help in preventing your insurance premiums from going up as it proves that you are not a high risk driver even with the accident.
Property Damage Claim Steps To Settlement
December 6, 2010 | Author admin
Applying for a property damage claim may seem like an easy task. The truth is that is isn’t easy as it seems. A lot of people think they just have to make a claim, negotiate with an adjuster and voila! The settlement cheque is released!
How should you go about a property damage claim? This information is vital if you are taking out the cost of your property repair from insurance. Before you can get the settlement check, you have to undergo a process. Usually, this property damage claim is handled by the insurance based property repair company. But it still pays off to have knowledge of the process.
Step By Step Settlement Procedure
1. Understand the insurance policy. You can’t make demands unless you fully understand what’s in store for you in the insurance contract. If you have to pay from your own pockets in terms of the repair, always make sure to keep all receipts at hand.
2. When damage on the property occurs, inform the insurance company immediately. Urgency is important in property damage claim. You may need to call a property repair service for minor damage that can result to further damages. Just keep the bill so you could forward it to the insurance company.
3. Call the insurance company claim department immediately or visit their office. Give them the details of the damage and make an appointment for damage assessment. You should also document the damage. Take pictures and bring them with you when you visit the claim department.
4. It is advisable to get help from an insurance claim consultant. Remember that although the insurance company will pay you for the damage, it will try its best to pay you as low as it can. It is a business after all. So to protect your own interests as a policy holder, getting help from a consultant will be a wise move.
5. The adjuster will check the damage, document it and assess how much you can get on the settlement claim. In some instance, they already give you a partial cheque.
6. After the assessment, the settlement claim cheque will be released.
Some policy holders don’t want to go through this process so they get an insurance based property repair service. This way, the property repair company negotiates with the insurance company. It saves time and effort on the part of the policy holder. And more, the damage can be repaired even before the settlement claim is released.
Insuranceworks.ie is an insurance based home repairs company in Ireland. It is an all-in-1 solution to client’s insurance based property repair needs. Insuranceworks.ie does the repair, assists in insurance claims and acts on client’s behalf in negotiating with the insurance company. See Property Repairs Dublin for Insuranceworks.ie services.
Imagine Life Without Property Insurance? How Would You Sleep at Night – Finance
December 1, 2010 | Author admin
Copyright 2006 Geoff Morris
Imagine going through life with no insurance at all. Must be a bit like driving car without a seat belt in place.
For most people, insurance is a necessary aspect of life. It is the safety net that protects you from a crushing fall or an imminent disappointment during hard times.
Nothing is worse than an unforeseen natural or man-made disaster that unfortunately removes earnings capacity or assets from you or your business.
There are many types of insurance available, such as life, auto, workman’s compensation, liability. And, sometimes it would seem that we can ‘over-insure’ ourselves.
But perhaps the commonest type that is really necessary is property insurance. Whether you are a homeowner or a business operator, property insurance is the one area you should not neglect. So, what is property insurance?
Property Insurance ‘ A Definition
Property insurance is a type of insurance that provides coverage for building structure or structures and its contents. The coverage of property insurance is malleable and is oftentimes depended on the consumers’ needs. In some cases, property insurance may cover outdoor signs, crime coverage, and property of others, glass coverage, and more.
You can get property insurance through a written contract, called a policy. A property insurance policy legally binds you, the policyholder, with an insurance company. The property insurance policyholder will pay the insurance company a certain amount of money, called ‘a premium’ and in exchange, the company will agree to pay for certain types of damages or losses. These damages or losses to be covered by the property insurance are outlined specifically in the contract.
Property Insurance ‘ Importance and Benefits
Property insurance has many benefits. Monetary value is one of these benefits that a property insurance policy can offer. The property insurance company will pay for damages or losses you encounter in such cases as fire or theft. Property insurance is therefore a way for you to protect yourself and your interests.
The amount of money you get from the property insurance company will depend on how much property insurance you’ve bought at the time of the contract-signing. For instance, if you bought a $100,000 amount of property insurance, your insurer will only pay for replacement or reconstruction of damaged property up to that stated amount. Most property insurance companies pay up to 10% in total damages.
Property Insurance ‘ Types
There are many types of property insurance available. Most of these property insurance types are categorized according to the needs of the policyholders.
For instance, a landlord has different property insurance needs as a homeowner. What the landlord owns is rental property and the specifics involved in that property type is different from a home. Rental property insurance covers the damages or losses arising from negligence on the tenants’ parts.
As all property insurance, rental property insurance offers coverage for the actual building structure and its contents. Rental property insurance can pay for the cost of repairing damaged articles, such as carpets, furniture, curtains, and other house items, caused by guests or tenants.
A homeowners’ property insurance provides the same type of coverage offered by a typical property insurance policy. Most lenders require buyers to have property insurance when applying for a mortgage. The homeowners’ property insurance gives the lenders the security they need to close the sale. Homeowners’ property insurance protects the homeowner from damages caused by disasters, such as fires, floods, earthquakes, theft, vandalism, and the like.
There are several other types of property insurance available. From small business, to medium enterprise, to commercial properties ‘ there’s a different kind of property insurance coverage for each.
via Imagine Life Without Property Insurance? How Would You Sleep at Night – Finance.
Types Of Commercial Insurance
December 1, 2010 | Author admin
Generally speaking, commercial insurance covers businesses, and the two main types are property insurance and liability insurance. Property insurance, as the name suggests, provides coverage for any business property or inventory that is stolen, destroyed from a loss, or damaged; liability insurance covers any damages to someone else’s property, including bodily injuries.
Most businesses that purchase commercial insurance have a combination of property and liability insurance to cover anything that may go wrong. Oftentimes, mistakes made on the job, or simple accidents, can simultaneously affect both the business’ property as well as a third party’s health. For that reason, it’s important to consult with an insurance broker to find the best deal for you and your business.
Property Insurance
Property insurance covers losses and damages to personal property, like fire or flood damage to your office building. There are many different types of property insurance, like machinery insurance to cover equipment breakdowns, debris removal insurance to cover the cost of cleaning up after a storm, and ordinance or law insurance to cover costs related to having to rebuild a building to code that may have been only partially destroyed by nature.
Crime insurance covers things like theft and robbery, and builder’s risk insurance covers any damage that might occur to buildings under construction. Bars and nightclubs often have a lot of glass and mirrors in the building, so they might have a type of glass insurance that covers any glass breakage on the premises.
Liability Insurance
This type of commercial insurance covers injuries that you or your business might accidentally cause to happen to third parties. For instance, commercial vehicle insurance would cover any cars, trucks, or vans that you might use in your business. Errors and Omissions, or “E & O” insurance, covers any accidental mistakes that cause injury to others. An auto repair shop may have auto repair insurance to cover any mistakes that may happen in the garage that could cause damage to a customer’s vehicle.
There are several types of unique liability insurance. Bars and liquor stores should definitely purchase alcohol liability insurance if it’s not already required by the state. Administrative alcohol liability insurance involves breaking liquor laws – failing to check IDs, selling to a minor, or letting inebriated people keep drinking. Civil liabilities can involve lawsuits from the inebriated or those possibly victimized by the inebriated, and criminal liquor liabilities involve the unfortunate situations where someone receives alcohol from your bar and then injures or kills someone.
Two completely different types of commercial liability insurance include landscaping insurance and technology insurance. Landscaping and gardening companies should purchase landscaping insurance to protect against any injury from any daily hazards in the landscaping business, like tools and equipment, pesticides, and more. Technology insurance covers any of the potential liabilities that technology and IT professionals may face in a rapidly changing field.
Businesses Need To Be Insured
If you own a business, chances are you need to purchase some form of commercial insurance to protect yourself and your company. Contact an insurance professional today to find out about the business insurance options available for you.
House Owners Insurance – Insurance Advice – Self Help – Advice
December 1, 2010 | Author admin
Homeowners insurance is often overlooked. Auto, health care and life assurance are frequently thought about more. Yet, it is just as critical to think regarding your home owners insurance insurance plan as well.
House owners insurance or inadequate House insurance, may ruin your nest egg. A big loss that is not insured may take all of your savings. It may take a lot of time. It could take more time than you have left to work, to replace the money you would lose if your dwelling was destroyed.
Fire isn’t the only hazard covered by a homeowners insurance plan. A house owners insurance plan also includes liability coverage and theft coverage.
If your home is completely consumed by flood waters, an insurance plan that includes flood insurance is crucial. The 2005 hurricanes in the Gulf of Mexico have have forced us to think about the damage flood waters could do to a home. Floodwater damage isn’t covered by the typical house insurance plan, so be certain to investigate this part of your insurance policies.
You also want to be certain that your date homeowners insurance policy will cover the rebuilding your home. If your dwelling was destroyed, you want to be able to reconstruct the entire houseand not merely a portion of it.
Carefully considering the all aspects of your home owners insurance might just keep you from losing your dwelling if a fire or other calamity hits.
You should know the answers to the following:
Will my insurance costs be reduced if my home and cars are insured by the same insurance company?
Will my current limit of coverage be enough to pay to rebuild my dwelling if a calamity hit?
Are my furniture and other possessions inside the dwelling well covered?
Ensuring that your insurance up-to-date house owners insurance is just as important as getting good insurance in the first place. Your home owners insurance should be enough to pay for reconstructing your house. Since the cost of construction material and labor will probably change on a regular basis, it’s crucial that you keep your policies current.
This is true for other types of coverage as well. Life coverage face amounts ought to be updated since the things that you want your life insurance to pay for will cost more as time goes on. Health care cover needs to be updated because your family size and your needs could change from one year to the next. Vehicle insurance needs to be current since you may have different cars and drivers in different years.
A good financial plan not makes sure that you accumulate assets, but also makes sure that your money don’t evaporate should a catastrophic event occurs. Insurance for your major exposures is crucial if you want to have the best chance of having enough money during your retirement.
House owners insurance is frequently much less expensive than vehicle insurance. You will see fewer advertisements regarding Home insurance when compared to car or life insurance. You may not pay your Homeowners insurance directly.
These may be some of the reasons that it is easy to overlook. Be sure to look for the best House owners insurance plan and to make sure you are well protected. Adequate homeowners coverage could be the only thing that keeps you from being homeless. Make sure that your Home owners insurance plan covers you well.
via House Owners Insurance – Insurance Advice – Self Help – Advice.
