Lock Thieves Out While on Vacation; Protect Your Home & Possessions

Sitting poolside at a vacation hotspot is not the place where you want to worry about the protection of your home because you didn't take the time to appropriately secure and insure your property.

Most burglaries occur in July and August. Homeowners Insurance claims for theft total about $1 billion annually, with the average claim around $2,500.

In 2008, there were an estimated 2.2 million burglaries - an increase of two percent when compared with 2007 data. Burglary accounted for 22.7 percent of the estimated number of property crimes committed in 2008, according to FBI crime statistics.

"A few simple precautions will make your home a lot less attractive to burglars," said Karl Newman, NW Insurance Council president, "and you'll be able to relax a little more while you're away."

Standard Homeowners Insurance generally covers the theft of most personal belongings and damage associated with burglary.

However, jewelry, furs, art and other expensive belongings typically have $1,000 to $2,000 worth of coverage. To protect your high-dollar items to their full value, you can purchase special coverage with no deductible.

As you plan a fun and relaxing vacation this summer, take time to safeguard your home and belongings by following these tips:

  • Standard Homeowners Insurance policies normally cover damage and theft caused by burglars.
  • Lock all doors and windows. Sliding glass doors have weak locks. Install a bolt lock and place a broomstick or dowel in the inside door track.
  • Make your home look less attractive to thieves. Leave blinds open in their usual position. Leave a little trash in your garbage can. Arrange to have your lawn mowed or your walk shoveled. All of these tactics can give burglars the indication that someone is home.
  • Stop all mail and newspaper deliveries. A stuffed mailbox or a pile of rolled newspapers in front of the door leaves a clear impression that you aren't home.
  • Trim hedges next to your home so burglars do not have a place to hide.
  • Tell police and dependable neighbors when you plan to be away and when you expect to return. Have a friend or neighbor keep an eye on your home and property.
  • Do not hide keys in secret places outside your home. Experienced burglars usually know where to look.
Call your company or agent to find out what your policy covers and the costs involved.

For free brochures on Homeowners Insurance and how to protect your home from burglary, contact NW Insurance Council at (800) 664-4942.

Climate Change: Insurers Weathering Storm as Disasters Increase

Despite increasing natural disasters around the globe, P/C insurers have remained fiscally strong. Here's an interesting article from National Underwriter that demonstrates how insurers' conservative and strong underwriting has helped the industry withstand some of the world's greatest natural disasters.

The number of meteorological catastrophe-driven events is increasing, causing more losses internationally, but insurers have proven themselves financially capable of handling those losses, according to experts.

The comments came during a webinar sponsored by Munich Re (http://www.munichreamerica.com/) reviewing the first half-year of natural catastrophes for 2010.

According to Carl Hedde, senior vice president and head of risk accumulation for Munich Reinsurance American Inc., catastrophe losses in the United States have been “tame” compared to the rest of the world, but the country has suffered significant catastrophe losses that, compared to the past 20 years, have outpaced losses in the past.

Among losses the nation has seen so far in 2010, he said thunder storms have resulted in 28 fatalities and $3 billion in insured losses; winter storms have caused 25 deaths and $2.39 billion in insured losses; and flooding has caused 50 deaths and $609 million in insured losses.

The number of catastrophe events has more than doubled since 1980, he noted, with a total of 95 events for the first half of 2010. The bulk of those losses are climate related.

Peter Hoppe, head of geo risks research, corporate climate center at Munich Re, said internationally the increased number of climate-related loss events points to a pattern showing the “increased vulnerability of our high tech society.”

The lion’s share of the $22 billion in catastrophe losses that have occurred this year internationally have taken place in South America as a result of the earthquake in Chile, with $8 billion in insured losses.

Winter storm Xynthia, which rocked Europe in February, resulted in $3.4 billion in insured loss, and severe storms and hail in the United States Midwest accounted for $1.07 billion in insured loss.

However, Mr. Hoppe said, the long-term trend going back to 1980 indicates that, globally, disasters have been trending up dramatically from less than 200 events in 1980 to 440 for the first half of 2010 alone. Most of these disasters, he pointed out, are climate related.

Mr. Hoppe said that global warming is contributing to these weather events. He said no single catastrophic event is proof of global warming, but the “trend indicates that is the cause.”

In an interview with NU Online News Service, Ernst Rauch, head of corporate climate center for Munich Re, said while there are social and economic reasons for the cost of catastrophes increasing, that does not explain the increased number of climate-related events.

He said the trend is not scientific proof of climate change, but the events are powerful indicators that it is taking place.

For insurers, he said, the changes will mean adjustments in their models. The adjustments, he noted, may mean an increase in risk for some and a decrease for others.

Robert Hartwig, president of the Insurance Information Institute, said while insurers and reinsurers have witnessed an increase in the number of catastrophes, they have still been able to pay losses, and there is no reason to believe that won’t continue.

He credited insurers’ success to their strong ability to underwrite risk and their financial model that helped them avoid the brunt of the economic meltdown.

Despite the economic and risk pressures, insurers have managed to remain solvent, but Mr. Hartwig noted that as the insurance industry goes through its inevitable cycle, impairments may increase in the future.

NU Online News Service, July 7, 3:25 p.m. EDT
The number of meteorological catastrophe-driven events is increasing, causing more losses internationally, but insurers have proven themselves financially capable of handling those losses, according to experts.

The comments came during a webinar sponsored by Munich Re (http://www.munichreamerica.com/) reviewing the first half-year of natural catastrophes for 2010.

According to Carl Hedde, senior vice president and head of risk accumulation for Munich Reinsurance American Inc., catastrophe losses in the United States have been “tame” compared to the rest of the world, but the country has suffered significant catastrophe losses that, compared to the past 20 years, have outpaced losses in the past.

Among losses the nation has seen so far in 2010, he said thunder storms have resulted in 28 fatalities and $3 billion in insured losses; winter storms have caused 25 deaths and $2.39 billion in insured losses; and flooding has caused 50 deaths and $609 million in insured losses.

The number of catastrophe events has more than doubled since 1980, he noted, with a total of 95 events for the first half of 2010. The bulk of those losses are climate related.

Peter Hoppe, head of geo risks research, corporate climate center at Munich Re, said internationally the increased number of climate-related loss events points to a pattern showing the “increased vulnerability of our high tech society.”

The lion’s share of the $22 billion in catastrophe losses that have occurred this year internationally have taken place in South America as a result of the earthquake in Chile, with $8 billion in insured losses.

Winter storm Xynthia, which rocked Europe in February, resulted in $3.4 billion in insured loss, and severe storms and hail in the United States Midwest accounted for $1.07 billion in insured loss.

However, Mr. Hoppe said, the long-term trend going back to 1980 indicates that, globally, disasters have been trending up dramatically from less than 200 events in 1980 to 440 for the first half of 2010 alone. Most of these disasters, he pointed out, are climate related.

Mr. Hoppe said that global warming is contributing to these weather events. He said no single catastrophic event is proof of global warming, but the “trend indicates that is the cause.”

In an interview with NU Online News Service, Ernst Rauch, head of corporate climate center for Munich Re, said while there are social and economic reasons for the cost of catastrophes increasing, that does not explain the increased number of climate-related events.

He said the trend is not scientific proof of climate change, but the events are powerful indicators that it is taking place.

For insurers, he said, the changes will mean adjustments in their models. The adjustments, he noted, may mean an increase in risk for some and a decrease for others.

Robert Hartwig, president of the Insurance Information Institute, said while insurers and reinsurers have witnessed an increase in the number of catastrophes, they have still been able to pay losses, and there is no reason to believe that won’t continue.

He credited insurers’ success to their strong ability to underwrite risk and their financial model that helped them avoid the brunt of the economic meltdown.

Despite the economic and risk pressures, insurers have managed to remain solvent, but Mr. Hartwig noted that as the insurance industry goes through its inevitable cycle, impairments may increase in the future.

Source: National Underwriter

National Flood Insurance Program Reauthorized

WASHINGTON-The Senate, last night, extended the long delayed National Flood Insurance Program, an action that one agent group declared unacceptable due to political wrangling.

The reauthorization, which extends the program until Sept. 30, is retroactive, according to officials of the Independent Insurance Agents and Brokers of America, whose president expressed dismay that the program is being subject to delay.

“It is alarming that the NFIP was allowed to remain expired for so long, causing so much confusion and potentially leaving desperate homeowners and small businesses unprotected for almost a month,” said Robert Rusbuldt, president and chief executive officer of the IIABA in a statement.

He added that we “are also greatly concerned that these short expiration periods and patchwork of temporary extensions will negatively impact the market.”

The current measure, as soon as it is signed by President Obama, allows any new policy applications or renewals that were signed and submitted during the hiatus to become effective from the date of application (or in the case of waiting periods, the waiting period will start from the date of application).

The bill would restore authorization of a program that lapsed June 1; marking the fourth time the program has lapsed.

Short-term reauthorizations have been held up because the program is being held hostage to efforts by Democrats to use it as an incentive to get Republicans to act on their other priorities, for example, extensions of jobless insurance and a program that subsidizes healthcare coverage for the unemployed.

Action on a longer-term extension has been delayed because the program has a deficit nearing $20 billion, but Congress is reluctant to act to reduce that deficit by raising rates to “market level” because that would generate severe criticism from hard-pressed homeowners.

The temporary extension bill passed by the Senate was passed by the House on June 23.

Insurance industry officials have reacted strongly by demanding that Congress restore certainty to the program and promptly adopt a long-term extension.

While praising the bills passage, Jimi Grande, National Association of Mutual Insurance Companies senior vice president of federal and political affairs said, “The hurricane season runs two months beyond the NFIP’s new Sept. 30 expiration date. Congress must not let the program lapse again, but that’s just the minimum. The best thing they can do is take this time to pass legislation that would implement common sense reforms and help the NFIP make the first steps towards financial soundness.”

“This is yet another short term fix, as Congress has once again kicked the can down the road…,” said Professional Insurance Agents National President-elect Brian Marino, co-chair of the association’s working group on natural catastrophes. “Although we greatly appreciate the short term extension, Congress has failed to extend the program through the Atlantic hurricane season. With our economy in peril, we cannot have closings held in limbo. The real estate market has again suffered due to this needless lapse in coverage.”

“We’re pleased this program has been extended, even if it’s for a short time,” said Leigh Ann Pusey, president and CEO of the American Insurance Association. “Between now and September, Congress must pass a long-term extension.”

“We are pleased that Congress reauthorized the flood insurance program,” said David Sampson, president and CEO of the Property Casualty Insurers Association of America. “But this three-month extension threatens to leave communities vulnerable again in September, at the height of hurricane season.”

National Underwriter (July 1, 2010)

Fourth of July Sparks Safety & Insurance Concerns

The Fourth of July is a day of celebration for millions of Americans. Picnics, barbecues and, of course, noisy and spectacular fireworks are all part of the festivities. Independence Day, however, can be dangerous if safety is not a priority.

Fireworks caused 22,000 fires in 2008, which resulted in 7,000 injuries and $42 million in property damage, according to the National Fire Protection Association.

“It’s a great time to celebrate our country’s freedom,” said Karl Newman, NW Insurance Council president. “It’s also a time to remember that with freedom comes responsibility – including safe use of fireworks.”

If fireworks are used near your home, your house is vulnerable to fire and your family and guests are vulnerable to injury.

A standard Homeowners Insurance policy covers fire damage to your home and property, including plants, trees and shrubs, less your deductible. Your Homeowners Insurance also covers injuries to guests up to the limits of your Liability Coverage.

Carelessness or lack of knowledge can lead to a spoiled holiday. NW Insurance Council offers the following safety tips to help you enjoy your Independence Day:
  • Always read and follow the instructions listed on the fireworks.
  • Do not allow children to play with fireworks. Always have a responsible adult present.
  • Buy fireworks and all pyrotechnics from reliable businesses.
  • Always use fireworks outdoors. Never ignite inside your home or garage.
  • Always have water handy to douse hot fireworks (a garden hose and a bucket).
  • Never experiment or make your own fireworks.
  • Light only one firework at a time.
  • Store fireworks in a cool, dry place.
  • Dispose of fireworks properly by soaking them in water and then disposing of them in your trashcan.
  • Never throw or point fireworks at other people.
  • Never shoot fireworks in metal or glass containers.
  • Stay away from illegal explosives.

If you'd like more information on fireworks safety and Homeowners Insurance, contact NW Insurance Council at (800) 664-4942.