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Everything’s Bigger in Texas: The Lone Star State and Its Weather Severity

2011-12-28T08:33:00.000-05:00

Texas is in turmoil. Everyone has seen in the news over the last several months the impact that raging wildfires have had on the state. Homes have been lost, forests have been wiped out, and lives have been seriously derailed. However, there are other meteorological developments in the state that may not immediately come to mind but have still made a huge impact—specifically, hail and windstorms.

Earlier this year, Fox News website www.myfoxdfw.com (the “dfw” stands for Dallas-Forth Worth) reported on a substantial hail beating that hit the area, saying that, “storms began pounding North Texas, delivering large hail, high winds, and heavy rain. Many areas reported hail as big as golf balls. The storms also downed tree limbs and damaged property throughout North Texas.”

And this isn’t necessarily a new global warming-induced weather pattern. In 2009, Insurance Journal published an article about a storm that incurred upwards of $160 million in insured losses. “In all, more than 22,000 vehicles were damaged in the storm and nearly 15,000 homes received insured losses, according to the insurer trade group the Insurance Council of Texas.” This particular storm pummeled Central Texas the hardest less than a year after a similar storm caused $50 million in insured losses.

As a result of the severe weather Texas has experienced, some insurance agencies have shown a desire to raise homeowner’s insurance premiums—a decision “primarily driven by loss costs,” according to Insurance News Net. While this isn’t exactly welcome news to Texas homeowners, it isn’t exactly a surprise, either.

Insurance News Net said that “severe weather is the reason Texas homeowners pay, on average, among the highest homeowners premiums in the United States.” As well as the already noted wildfires, hail, and windstorms, the state can also be plagued by tornados and hurricanes, too.

In addition to the many weather-related losses for which they are at risk, homeowners in Texas do not look forward to paying more in insurance premiums. “Bills introduced in both the Texas House and Senate this year would have required that insurance companies filing for new rates continue to use old ones until approval by the insurance commissioner,” said the Houston Chronicle’s website. “The consumer advocacy group Texas Watch strongly backed the requirement for prior approval of rates. Its director, Alex Winslow, says ‘the companies ought to have to justify their rates.’”

As it stands, homeowners feel that they’re paying too much for the various damages these storms send their way while insurance companies are struggling to cover insured losses resulting from these same storms. No matter what the public opinion is of these imminent rate hikes, though, one thing is for certain: Texas is going to continue having enough extreme weather to rival the rest of the states in the U.S.

- Alexandra Prim, Copywriter

Have you had any exposure to property insurance claims in Texas? Tell us all about it in the comment section!

Over the River and Through the Woods: Leaving Your Home Empty for the Holidays

2011-12-20T12:50:00.000-05:00

Around this time of year, people have a tendency to travel. Whether it’s to a relative’s home, a warmer climate, or even just on business, houses all across the United States are left vacant for anywhere from days to months at a time during the winter.

While vacation or a holiday with the family can be a fun diversion in chilly December, there are certain measures that every homeowner should take in order to make sure his home is secure even while uninhabited.

The biggest and most obvious threat to an empty house is burglary à la “Home Alone.” Although a traveling family might think to pack or safely store valuables such as jewelry, heirlooms, and designer items, there are dozens of objects in the average inhabitance that still appeal to a burglar.

“Start with the exterior of your home,” says Jim McGuffey, the founder of A.C.E. Security Consultants, on USA Today’s travel website. “‘You want to make sure that your home looks lived in. You want to have somebody there to plow your driveway and [clear off] your steps [in case of snow]. You always want to give the home the appearance that somebody's there.’”

The USA Today article goes on to suggest having a neighbor park in the empty driveway and collect mail and newspapers so there isn’t a pileup evidencing a vacant house. It also advocates “using outdoor and indoor lighting systems, both motion-sensor and timer varieties, to prevent burglars from sneaking onto your property under cover of darkness.”

Theft may be the primary concern of traveling families, but there are other risks an empty home can run as well. In the coldest part of the winter, bursting pipes can be a real threat. Turning off the water-supply valves or stopping water pumps can prevent this since water can’t freeze and expand in a pipe if there’s no water being pumped through the home.

Other important measures to take when leaving a home is making sure all trash cans are emptied and food waste disposed. Rotting garbage can create an awful stench and even attract animals. In the vein of animals in the home, it’s key to check for cracks and holes where critters can enter. Animals in the home can lead to infestation and may cause damage to items in the house as well as to the house itself.

Finally, an empty home should remain heated—but to a far lesser degree than an inhabited dwelling. A good place to leave the thermostat is 58 degrees Fahrenheit; the water won’t freeze but heating costs won’t skyrocket, either. If a vacation home is being left all winter, with the water off, it may not even be necessary to heat the place at all.

The holidays are about family togetherness. And a loving, secure home is the heart of a happy family. This season, if traveling, make sure to take this article’s steps towards preserving your home. After all, it’s where the heart is.

- Alexandra Prim, Copywriter

Have you seen any claims resulting from a vacant home being burglarized or damaged in the winter months? Tell us your story in the comments section!

Celebrate with Caution: Decorating Safely, in Style

2011-12-15T08:41:00.000-05:00

It’s that time of year, again! Everyone is getting ready to deck the halls and celebrate the Festival of Lights. While the holiday season is very much about family togetherness, celebration and,—yes—gift-giving, it is also a season of decoration. And this year you’ll be armed with our tips to keep you from becoming the next Clark Griswold.

Consumer Insurance Blog online states that, each holiday season, more than 14,000 people are sent to the emergency room with decorating-related injuries. Additionally, the blog notes that the National Fire Protection Association released data indicating that an average of 150 home structure fires each year are attributed to holiday lights and that these fires cause an average of eight civilian deaths and $8.9 million in property damage yearly.

Many of Consumer Insurance Blog’s safety tips for decorating relate to electricity. Some of their key pieces of advice are “Never throw holiday lights or other decorations into trees near power lines,” “cords should be plugged into outlets equipped with ground fault circuit interrupters,” and “do not staple or nail through light strings or electrical cords.” While light safety is crucial to keep in mind, outdoor decorating doesn’t end there.

Some homeowners like to go beyond the standard string of lights or window candles when celebrating the holidays. But those who opt for a Santa, sleigh, and reindeer display on the roof have to take into account a few important things. First, any roof must absolutely up to code and strong enough to hold decorations. Second, decorators must make sure their displays aren’t too heavy. Blown-up balloon figurines may not weigh too much but older, solid decorations could cause roof damage regardless of the strength of the roof in question. And, no matter what goes on the roof, it will become significantly heavier with snow accumulation—something else to keep in mind.

Most decorating safety tips relate to outdoor decoration but it’s key to be just as careful inside as well. UL’s website indicates that 13 percent of home fires in January are due to Christmas trees and it’s important to know when it’s time for a tree to be thrown out. “Christmas trees—real or artificial—can be a significant fuel source if a fire occurs in your home,” said ul.com. “Even a well-watered tree should be taken down after four weeks. If you decorated your real tree right after Thanksgiving, it should be discarded the week after Christmas, not New Year's Day.”

And don’t forget candles. Used during most holidays, candles can easily cause house fires if left unattended, near children, or in close proximity to any flammable object. It’s wise to keep matches far from them, as well, and to make sure that dripping candle wax is contained. The safer homeowners are with candles, the safer their homes and families will be.

Armed with these tips, every home can be safer during the holiday season. After all, this month is a time of happiness and peace—and we’d like to keep it that way.

- Alexandra Prim, Copywriter

Can you think of any holiday safety tips we didn’t cover? Share them in the comments section!

Destruction: Thailand’s Flooding Crisis and its Effect on Insurance

2011-12-12T07:55:00.000-05:00

This year, the words “Asia” and “flooding” have been predominantly used in describing one of the worst disasters in recent history. The 9.0 earthquake that hit coastal Japan—shortly followed by a devastating tsunami and detrimental nuclear crisis—occurred this past March 11 and has had a harrowing affect on the Japanese people and economy.

But now another series of events is underway that may cause damages in excess of everything that happened in Japan this spring.

According to Reuters, “Iwan Azis, head of ADB’s Office of Regional Economic Integration said the impact of severe floods in one of Asia’s prime manufacturing bases [located in Thailand] could last well into next year. ‘We are still working on it,’ said Azis. ‘But I’m afraid the Thai flood impact on the production network is bigger.’”

Boston.com, the Boston Globe’s web site, described the Thai flooding as affecting more than a fifth of the population with over 600 deaths so far. Fifteen provinces are currently flooded and “the World Bank estimates the damage at $45 billion and recovery and reconstruction needs at $25 billion.” Boston.com went on to say that “the National Social and Economic Development Board has slashed Thailand's economic growth forecast to 1.5 percent from 3.5 to 4 percent.”

Although this flooding has impacted all of the usual suspects (think residents, government, and economy), it has also hit insurers fairly hard.

“The majority of insurance losses from the Thai floods will come from manufacturing and supply chains and could reach $20 billion,” said Insurance Insight. It added that “the floods are being labeled the costliest natural disaster in Southeast Asia and the event is likely to rank among the 10 costliest natural catastrophes worldwide.”

Meanwhile, A.M. Best has reported that most flood claims, in Thailand, will be insured by the Thai market due to policies under Thai law. However, only about 1% of Thai homes and other residential properties having flood insurance, “the [insured] losses related to this event will come almost entirely from the impact to manufacturing and supply chains, with some losses stemming from automotive captives as well.”

While American insurers are generally not directly affected by this disaster, the impact will be felt through interactions with other countries’ insurance groups. Many European companies that function in Thailand, not to mention some major Japanese insurers, are being hit hard and this aspect of the flooding will almost certainly make an impression on the American insurance industry in the near future.

In the meantime, while many areas of Thailand are still underwater, the flooding has begun to recede and damage assessed. People are starting to head back to their homes, cleaning supplies in hand, to undertake the long process of cleaning up the filth and possessions-turned-garbage that the flood has left behind.

For much of the world, the water level in Thailand has become a detrimental issue. For the U.S., only time will tell.

- Alexandra Prim, Copywriter

How do you think the American insurance industry will fare in the wake of the Thai floods? Give us your opinion in the comment section.

Come On, Irene: America’s Ongoing Effort to Recover from Hurricane of the Year

2011-11-30T09:15:00.001-05:00

After three long months, America is still trying to recover from Hurricane Irene. Here in Insurers World’s home town of Canton, Massachusetts not much resulted from the storm other than some downed trees and sporadic loss of power but, in other parts of the country, Irene wreaked just as much havoc as she had been purported to do.

When she struck, Irene worked her way from Florida to Vermont. Now, the affected region is still struggling to recover from her--and from the hit the same states took in October's snow storm. On November 21, Insurance Journal reported that North Carolina is still in need of major government assistants to help its residents rebuild in the wake of the storm.

“North Carolina’s insurance commissioner says residents need more time to file insurance claims stemming from losses suffered during Hurricane Irene,” said Insurance Journal. “He says the date [of FEMA’s deadline for residents to submit their insurance claims for reimbursement] should be pushed back by at least two weeks. More than $64 million in aid funding has been dispensed in North Carolina since the Category 1 storm struck in August.”

In addition to North Carolina, parts of New York are also recovering at a slow rate. The town of Seaford is, according to the Wantagh-Seaford Patch, also appealing to the Federal Emergency Management Agency for help. This time, though, it’s not an extended deadline they need; it’s physical assistance.

“‘We're living primitive right now,’” said Seaford resident Frank Caporaso, to the Patch. His “family has been sleeping on air mattresses after three feet of water flooded their one-floor Narraganset Avenue home during Irene.” Seaford is hoping for a project to be undertaken “that would minimize further flooding from future storms” in the town’s neighborhood that’s most susceptible to flooding. In addition, affected residents have been urged to file individual claims with FEMA for more help.

Some places have encountered slightly less typical post-hurricane issues. New Jersey has reported extreme algae blooming, in the wake of Irene, which has changed the nutrients in local water. Additionally, immediately after the storm passed, fig sea sponges started washing up on beaches in droves. While this might not seem significant, know that fig sponges smell extremely foul. That—and an unusual surplus of sea foam that also carries a stench—created quite an issue for a state who’s shore depends on summer tourism. These issues have waned but not yet disappeared.

Despite these particular recovery hurdles, many major obstacles have been cleared. Trees and limbs were immediately cleaned up throughout the coast and power was restored to those without in a mostly timely fashion. Real power outage issues didn’t occur until the unseasonal snow storm on October 29.

All in all, progress is being made. But for those with three feet of water in their living rooms, there is still a ways to go to get over Irene.

- Alexandra Prim, Copywriter
http://www.insurersworld.com/

Did you visit any homes damaged by Irene? If so, tell us about the damage you saw—and the progress being made to repair it—in the comments section.

Thanksgiving: A Time for Family, Food … and Fire Safety

2011-11-23T11:40:00.000-05:00

Paid days off, obscure relatives, and pounds of turkey can only equal one thing: Thanksgiving.

For one bustling, festive day in November, almost all Americans gather together with their family members over a traditional meal of turkey, cranberry sauce, and pumpkin pie … among dozens of other customary foods. With all that cooking going on, Thanksgiving has earned itself the reputation of being a dangerous holiday. On this day, the rate of kitchen fires in the United States more than doubles.

USA.gov, along with several other web sites, offers tips to stay safe during the holiday season. “Never leave cooking foods unattended,” said the site. “If you must leave the kitchen while cooking, turn off the stove or have someone else watch what is being cooked.” It goes on to stress the importance of working smoke detectors in every room, keeping a fire extinguisher handy, and even making sure stoves and ovens are clean before use so that no stray food can catch fire unnoticed.

Although a turkey left too long in the oven or a side left unattended on the stove, are commonly thought of as fires waiting to happen, there are a few other major Thanksgiving fire risks that should be noted as well. Turkey fryers are becoming increasingly popular as a means to have a fried Thanksgiving turkey in the United States. However, there are, according to Safety At Home’s web site, no such fryers currently approved by globally trusted safety science company UL (known for putting their logo on safe products).

The Chicago Tribune said that “the average direct property loss of $14,500 per reported deep fryer fire was almost three times the average of $5,000 for cooking fires in general.” Fryers have often been known to overflow with, or tip and spill, oil that can catch fire from open burners. Additionally, fryers can become exceedingly hot and pose high a severe burn risk. If a fryer must be used, it’s best to do the cooking outside, on a flat surface, while monitoring the turkey carefully. Perhaps most importantly, make sure to never place a frozen turkey in a fryer—the turkey can catch fire and create a huge hazard.

Another big fire risk relates to decorations. Early-hung Christmas lights should be checked for broken bulbs that could spark and start a fire and all candles should be placed in sturdy holders out of reach of children, stray elbows, and other decorations that may be flammable. Candles should also not be left unattended and, at the end of the day’s festivities, lights should be unplugged and candles blown out.

The holiday of Thanksgiving will always be about family togetherness and being thankful for the positive things in everyone’s lives. But fire safety must always be kept at the forefront of the day. A secure, cozy home with no kitchen or lighting dangers is a great thing for which to give thanks.

- Alexandra Prim, Copywriter

Have you ever visited a claim centered around a Thanksgiving fire? How was it caused? Tell us about it in the comment section!

Before the Coming of the Snow: A Homeowner’s Guide to Preparing for Winter Weather

2011-11-16T14:26:00.000-05:00

Last week, this blog discussed the damaging autumn snow storm that hit the northeast on October 29. As a result of that bout of wild weather, millions lost power in their homes for days and thousands more suffered damage from downed tree limbs and collapsed roofs.

In the spirit of Snowtober and an upcoming winter that will undoubtedly hold several snow storms, we’d like to use this week’s blog post to focus more fully on the ways in which homeowners can winterize their residences to both save money and avoid winter disasters.

As previously discussed, checking for a strong roof, preventing ice dams, and plastic-sealing windows to keep in heat are great ways to prepare a residence for cold and inclement weather. In addition to these practices, there are several other measures that can be taken to further ready a home. For instance, check attic insulation.

“Since warm air rises, the single most effective way to save on heating is to have adequate attic insulation,” said CBSNews.com. “If you don't know how to tell, look for your ceiling joists. If you can see them, you need more insulation.” By making sure a home is properly insulated, a homeowner can save hundreds of dollars a year on heat.

Checking a house’s foundation and sealing any cracks or holes found in it or anywhere else can also preserve heat as well as sealing a home effectively against leaks, dry rot, and mold. This practice is beneficial for another reason, though: it can keep out animals who may want shelter from winter weather. Mice can slip through tiny holes almost anywhere and, if there are any openings in a home’s foundation, animals such as raccoons or possums might decide to spend the winter down there.

We also offer some tips on winter storm preparation on our web site. We urge homeowners to take care of their water pipes so as to avoid frozen and bursting pipes when temperatures dip low. “Remove and drain outdoor hoses and put them inside,” says our site. “Close inside valves, and open outside valves so any remaining water can expand without causing pipes to break. You can use pipe sleeves, heat tape, or heat cables to insulate exposed water pipes. If only a small amount of water comes out of your faucet, you may have a frozen pipe. To avoid damage, thaw the pipe slowly using a hair dryer, heating pad, or hot towels.” To see more, visit www.insurersworld.com, click on “Safety Information” in the right-hand column, and then pick “Winter Weather” for further advice.

Other ways to winterize homes in areas with cold weather and heavy snowfall are to make sure furnaces are in good working order with usable filters, being vigilant about avoiding snow accumulation on trees that could cause home damage if felled, and cleaning gutters of leaves and, later, snow that could fill them up and start a flood.

If steps such as these are taken each winter, homeowners will reside in much more efficient residences. So, this year, the choice is easy: winterize and save money—as well making your home a safer place.

- Alexandra Prim, Copywriter

What is the worst winter storm damage you’ve ever seen? Was it preventable? Tell us about it in the comments section!

Snowtober: The Unexpected Storm and its Fallout

2011-11-09T09:37:00.000-05:00

Running to the store for an economy-sized bag of candy; frantically gluing accoutrements to a costume for a child who needs to look the scariest of all her friends; carving a last-minute jack-o-lantern for the front porch. These are the types of things normally done in the last forty-eight hours before Halloween. But not for New Englanders this year.

Instead of decorating the yard with Styrofoam tombstones, Americans from New Jersey and Pennsylvania to Maine were shoveling out their driveways last Sunday morning—after an unseasonal snowstorm that left over a foot of snow in some areas.

The Washington Post reported that “coming in the midst of what is already one of the most extreme years in American weather history, the ‘Snowtober’ event had a greater impact in some states than August’s much-hyped Tropical Storm Irene. It was the snowstorm, not Irene, which caused the largest power outage in Connecticut history.”

Because of aptly nicknamed Snowtober, millions temporarily lost power in their homes and thousands were still without days later. Although a power outage does not necessarily come to mind when one considers situation where home damage can occur, one can certainly wreak havoc on the average house.

For instance, the loss of power means the loss of electricity. Perishable food can spoil and any valuable objects (think fine cigars, wine, and even art) that need to be kept at certain temperatures and humidity could be vastly compromised. Additionally, there could be a surge when the power comes back on. These have been known to kill all manner of appliances and electronics including televisions that may cost thousands of dollars. Finally, a huge threat to a home without heat in cold weather is the prospect of freezing pipes. If pipes freeze and burst, excessive water damage can be done to ceilings, walls, rugs, furniture, and virtually anything else.

In addition to the massive loss of power, trees still laden with fall foliage in the Northeast grew heavy with the weight of snow. Branches and full trees fell everywhere causing the downed wires that took out power as well as some car and home damage.

That said, it’s fairly simple to prepare a home for winter weather and, if steps are taken, damage risks can decrease radically. Taping plastic to the insides of windows and blow-drying the sheets smooth can save hundreds of dollars on heat and, in the instance of a power outage, can keep a house warm and might save homeowners from burst pipes. Making sure a home’s roof is up to code and secure is another helpful step. A strong roof will keep a downed tree from crashing into the attic or top floor and could be a major money-saver in the long run.

One concern that many homeowners have in the winter is that snow will melt on the tops of their roofs, drip down, and refreeze at the bottom creating ice dams that can melt and damage insulation, attics, and ceilings. To prevent this, metal roofs can be put in instead of shingles that allow water to drip beneath them. Also, roof rakes can pull down heavy snow so that it doesn’t melt and form a dam. Although very common in snow-laden areas, ice dams are preventable.

However one chooses to weatherproof a home, it’s still important to expect the unexpected. Don’t put off completing these projects until December because, as is evident by last month’s events, sometimes it snows in October.

- Alexandra Prim, Copywriter

Have you visited any homes with damage from the October 29^th snow storm? Tell us in the comments section!

Season of Giving: The P&C Industry’s Charitable Impact

2011-11-02T11:26:00.000-04:00

When the public thinks of the insurance industry what often comes to mind are money-hungry companies that would love to deny their customers claims payouts. However, as all those who work in or with the insurance industry know, this is anything but true.

Not only do insurance agents and claims adjusters work diligently with insureds to help ensure fair compensation for any type of loss, the property and casualty niche of the insurance industry donated more than $500 million to charity just in 2010.

According to a study by accounting firm McKinsey & Company, “That amount [of $500 million] is comparable with other major industries. As a percent of pre-tax earnings, the contributions are above average compared to other businesses.” Regardless of this, there are many within the industry who think that far more can be done.

“Executives surveyed in the McKinsey report say they are not yet satisfied with their charity programs and their ‘return on giving,’ said Insurance Journal. “The majority of executives said the industry could receive more recognition for its efforts and that the charitable giving could have more social and business impact.”

In fact, about 60% of executives polled for the report admitted concerns that the property and casualty industry’s charitable giving is actually not efficient enough and they would like for focus to be put on better meeting charity goals. While there is always room for improvement, Bill Ross, CEO of Insurance Industry Charitable Foundation, said to Insurance Journal that “the survey results are very impressive” and that “the industry has made significant contributions to society.

This $500 million in charity was given in various ways. Most commonly, cash contributions were made from companies. This amounted to 80% of giving. The 20% remainder was compiled through employee donations—both of cash and of volunteer hours.

Some of the types charities to which the property and casualty insurance industry gave, last year, were “education (34%), health and social services (20%), community and economic development (18%), and culture and arts (7%),” as broken down by the McKinsey & Co. report available on McKinsey.com.

The report goes on to mention that, in the future, the property and casualty industry, as a whole, will be looking to a few specific companies in order to learn how to better help. For instance, Home Depot uses its building and home improvement industry knowledge to make a difference in many lives by allocating its employees to work at elderly people’s homes that need repair for no cost. Property and casualty industry members could easily apply their strengths to help those in need.

Regardless of the improvement in giving—and efficiency of giving—that is sure to come, the property and casualty insurance industry certainly caused a stir when the McKinsey & Co. report was published last month. It’s a lot harder to paint insurance companies in a negative light when many of them are doing so much good.

- Alexandra Prim, Copywriter

What’s your favorite charity? And do you have a way to get your work involved with it? Tell us in the comments section.

Innovation: How Technology has changed the Insurance Industry for the Better

2011-10-27T09:35:00.000-04:00

To the average American, the insurance industry is many things. Revolutionary, however, it is not. But this is a misconception. Insurance has been around, in some form, since ancient Chinese merchants realized that they needed to protect their wares over long, uncertain journeys. Since then, it’s come a long way. But the biggest step forward the insurance industry has taken in the last century is evolving along with technological advances.

Think about it. In the 1970s—and for part of the 1980s—everything done in the insurance industry would have been done on paper. Yes, this was the case for almost all businesses. But insurance was a field that was notoriously paper-ridden. All policies had to be written in detail, there were extensive catalogs of possessions for homeowners … and everything had to be immaculately organized in order to best serve each customer.

An article published by the Massachusetts Institute of Technology in 1993, the heyday of computer development, stated that “the insurance industry had been a major user of the most direct commercial predecessor of computers, punched card tabulators, since before the beginning of the twentieth century.” As is evidenced by this fact, insurance has always been a field to use technology to its advantage—and to the advantage of its consumers.

Computers have helped insurance companies all over the world to digitize their records, become recognizable through Internet presence, and better organize and serve their customers. Now, a new technology trend has allowed the insurance industry to support their insureds even more. In the last five years, millions of Americans have traded in their standard-issue cell phones for small, sleek handheld computers called smartphones.

This sea change of information sharing—smartphone users can use the Internet, download applications to access their favorite services such as Facebook and Skype, and send text messages, e-mails, and make calls—has led to thousands of companies to make their own downloadable applications so that smartphone users can easily connect with their businesses as well. These apps, first used and popularized by the iPhone and then spread to Android and other smartphone systems, are also being utilized by the insurance industry.

TowerGroup, a well-known research group, compiled their findings in a document published by BlackBerry in which they wrote that “mobility is an inevitable technology solution for insurers. The rise in mobile and wireless technology capability is the catalyst that the insurance industry needs in order to keep pace with agents’ and customers’ insatiable demands for real-time business processes.”

The advent of smartphones has spurred dozens of insurance companies to create their own applications for their insureds to download and use to check policies, ask questions, and generally access their company of choice on the go.

All in all, it seems as though technology has been very good to the insurance industry. And, as the world further advances, insurance companies will, too.

- Alexandra Prim, Copywriter

How do you use new technologies to do your job? Share with us in the comments section!

Money Talks: Learning about Homeowners Insurance Fraud in the U.S.

2011-10-20T07:12:00.000-04:00

Insurance fraud. Everyone’s heard of it. The phrase usually brings to mind a schemer faking his death to cash in on a life insurance policy. But that’s not always the case. For every falsified death certificate there is another incident of insurance fraud concerning homeowners insurance.

One such home insurance fraud story stars Vincent DiPaolo, an unlicensed insurance claims adjuster, who “intentionally caused damage to the roof and interior of [a fellow defendant’s] home and in-ground swimming pool, and then attributed the damages and previous flood damage to a fictitious wind and rain storm in April 2010,” said the web site Justice.gov. “DiPaolo, whose insurance adjuster’s license was in December 2007, acted as Sergiacomi’s representative and agent.”

Unsurprisingly, it’s not legal to purposely damage a house just to collect on the potential insurance payout that might result—especially if one of the people in on the plan is the insurance adjuster on the claim. DiPaolo learned this the hard way and has been convicted of fraud. He is currently awaiting his sentencing.

In addition to collecting on insurance money for a damaged or destroyed home, fraud can also stem from the desire to collect insurance money from falsely damaged or stolen items within the home. In fact, according to local news station WWMT, a mother-son duo from Michigan were recently arrested for just that. After a large and damaging fire in their home, the family reported various items stolen from the property. Upon a recent search of their new house, many of these items were located.

Not only were the 30-year old son and his 59-year old mother arrested because of insurance fraud concerning falsely stolen property, but it was determined that the son purposefully set fire to their home in order to collect money for that as well. There are many commonly practiced methods of committing home insurance fraud and arson is a very popular choice.

Because of people who want profit from a potentially dangerous situation (arson fires can spread to additional structures and render buildings unsafe for anyone inside them), home insurance fraud is an increasingly dire problem in the United States.

The Insurance Information Institute has reported that “insurance industry estimates generally put fraud at about 10 percent of the property/casualty insurance industry’s incurred losses and loss adjustment expenses each year.” And a large chunk of that accounts for home insurance fraud.

In order to curb this illegal activity, it’s important for insurance adjusters to report any suspicious claim, fire, storm, or any other kind of damage one might come across on a home visit.

The more potential fraud cases are stopped, the more discouraged potential fraudsters will be. And with less fraud to worry about, attention can be focused on homeowners who truly are in a time of need.

- Alexandra Prim, Copywriter

Have you ever seen a suspicious insurance claim? Tells us about it in the comments section!

The Handbag Boom: Telling the Difference between Real and Fake at PLRB Large Loss 2011

2011-10-12T09:12:00.000-04:00

Counterfeit handbags are everywhere. Sold at secondhand shops, on the Internet, and on New York’s notorious Canal Street, purses purporting to be genuine designer—but aren’t—can also be seen on the shoulder of millions of American women. On September 27, at the Property Loss Research Bureau’s 2011 Large Loss Conference in Chicago, Insurers World president Don Stafford spoke along with Debra Dawson of Liberty Mutual about the identification of counterfeit versus genuine designer bags.

Don and Debra’s presentation at the conference, titled “Challenging Personal Property Evaluations,” was aimed at helping insurance claims adjusters better understand how to evaluate both various musical instruments and high-end designer handbags. They even brought with them legitimate designer purses and their lookalike counterfeit counterparts.

One of the reasons Don and Debra’s segment on counterfeits was so necessary is because the purchase of counterfeit handbags is an emergent issue in the United States—one that is growing at an alarmingly rapid pace. If an adjuster unknowingly evaluates a counterfeit purse as genuine, unjustified betterment becomes an issue. The indemnity of the claim is then affected and the claim will have also suffered from increased severity due to the adjuster’s inadvertent negligence. On a grander scale, if this kind of unjustified betterment keeps occurring due to unknowing adjusters, the severity will quickly lead to soaring dollar amounts unfairly distributed.

Canal Street, in New York City’s Chinatown, is perhaps the most notable concentrated area in the U.S. for providing consumers with counterfeit purses. After a recent raid there focused on eliminating counterfeit Louis Vuitton handbags, vendors were actually required to post signs stating that they aren’t authorized to sell Louis Vuitton merchandise. They even had to accommodate a court-appointed monitor to make sure that counterfeit Louis Vuitton goods aren’t being handled.

“The momentum we are gaining in our relentless fight against counterfeiting is tremendous,” said Nathalie Moulle Berteaux, Director of the Intellectual Property Department for the Fashion and Leather Goods division of Louis Vuitton. “By working closely with law enforcement and other trademark holders, we are putting a stranglehold on the distribution of fake goods.”

While counterfeit handbag sales hurt companies that sell legitimate designer bags, there are also knockoff bags of which to be wary. These look similar to designer bags but don’t try to pass as the real thing. For instance, a knockoff Coach bag might have a “G” pattern on it instead of the traditional Coach “C” pattern. Don and Debra taught their audience how to establish differences between these knockoff bags and their genuine equivalent as well as the counterfeit purses trying to pass as legitimate.

While the PLRB/LIRB Large Loss Conference ended on September 28, those who attended were able to take away much new knowledge to implement at work in the property and casualty insurance industry—especially when it comes to determining the authenticity of a designer handbag.

- Alexandra Prim, Copywriter

Did you attend the 2011 Large Loss Conference? If so, what were some of the things you took away from it?

Checking In: A Status Update for Joplin, Missouri

2011-09-28T13:34:00.000-04:00

On May 22^nd, 2011, a vicious tornado tore its way through the quiet town of Joplin, Missouri. In its wake, 159 people were left dead and more than 2,000 buildings were destroyed.

It’s been a full four months, now, and Joplin has lost no time or energy in its rebuilding process—a process that, although painful for all involved, has been made easier due to money donated by concerned Americans, allocated by the government, and paid out by many insurance companies.

John M. Huff, the director of the Missouri Department of Insurance, said that “Joplin’s recovery requires a solid public-private partnership, and the insurance industry is clearly leading the private sector efforts. … $1 billion paid in just over three months—roughly $10 million a day—marks a significant reinvestment in the Joplin community.”

Joplin’s Public Information Officer, Lynn Onstot, took cover in Joplin City Hall’s basement with her children on May 22^nd. She summed up the rebuilding process best when she told Fox News that, “this is not a sprint; it’s a marathon.” And a marathon it certainly has been. The damage in Joplin was incredibly severe but, at the present time, over 70 percent of debris has been removed from streets and public places and Fox News reported that over “1,700 building permits have been given out to destroyed homes.”

While Joplin homeowners are incredibly thankful for the help they’ve been receiving aid from insurance companies, privately owned properties aren’t the only structures being helped. The Insurance Journal reported that insurance will pay a good portion of the $30 million that the Joplin School Board owes in relation to destruction caused by the tornado.

In addition to the financial assistance it has been receiving through so many facets, kind words and the support of Americans with time to volunteer or share moral support have done much to bolster spirits in Joplin.

Homeland Security Secretary Janet Napolitano visited Joplin mid-September and, according to the Joplin Globe, praised the town on its rebuilding efforts and progress. “The spirit and can-do attitude of this community is really unsurpassed,” Napolitano said. “I’ve been in a number of communities—this past year especially—and I will say Joplin certainly has something special going for it.”

While Jopliners still have a long way to go in getting their town fully functioning again, the rebuilding is being done with the long-term in mind. Many residents and contractors alike have remarked that no “temporary” structures are being built. Joplin wants buildings that will withstand another tornado and keep its citizens safe from any further environmental threat.

Along with healing in the wake of a tragedy of the proportion that Joplin experienced comes the importance of learning from such a devastating event. And the town of Joplin, along with the support of a nation, seems to be mastering both of these.

- Alexandra Prim, Copywriter

Have you ever handled a large loss claim? Tell us about it in the comments section!

Cruel Summer: The Texas Wildfires and their Toll on Homeowners

2011-09-21T13:29:00.000-04:00

It’s been a hot couple of months in the United States. And, regardless of the heat experienced elsewhere, npr.org confirms that Texas had the warmest season on record, for any state, since the U.S. government started keeping track in 1895.

This insane heat, combined with a notable lack of precipitation, has made Texas a veritable tinderbox recently—and a rash of devastating wildfires have thrived in the dry heat.

Most recently, the county of Bastrop, southeast of Austin, Texas was hit particularly hard. “The Bastrop fire was not the deadliest wildfire or the largest in acreage,” said npr.org. “But in terms of destruction—1,554 homes and counting—it is one of the worst forest fires in recent U.S. history.”

According to cbsnews.com, “David Rydell, Allstate's field claims manager, said the Bastrop fire was so hot and fast-moving that people's homes were destroyed completely. ‘A lot of people have homes that burned down to a slab and vehicles that melted to the tires,’ Rydell said. ‘With a lot of fires, you see at least some walls or part of the structures standing, but that's not what happened here.’”

In a time when thousands of homeowners have lost literally all of their material possessions, insurance agencies are being looked toward for payment so that lives can be put back on track. So far, it’s been estimated by the Insurance Council of Texas that insured losses from the wildfires that have happened since Labor Day weekend could reach $250 million and that the Bastrop fire alone could cost $150 million in insured losses.

Luckily, there are plenty of people willing to help the Texas wildfire victims. Hotel vouches are being offered by the Texas Disaster Relief Fund and insurance money is being made quickly available to those who need it. One family noted that, a few days after losing their home, they had already received an advance of $5,000 of their homeowners’ insurance money.

Now that the wildfires in Texas are mostly contained, it’s a good time for insurance claims adjusters to learn more about how to evaluate the intensely large losses that will have been suffered throughout the state.

From September 26^th through the 28^th, Insurers World president Don Stafford will be at the PLRB Large Loss Conference in Chicago, Illinois addressing “Challenging Personal Property Evaluations” with Liberty Mutual’s Debra Dawson. In their presentation, Don and Debra will teach attendees how to evaluate such home items as musical instruments and designer handbags. In addition, they cover ways in which to determine authenticity of said designer items as well as deciding whether or not a musical instrument should be restored or replaced.

Learning how to evaluate these items, as well as the other topics covered at the Large Loss Conference, will be greatly helpful to any adjusters visiting a home after it has been stricken by a disaster such as the Bastrop fire.

Although the people of Bastrop county lost countless possessions, they are starting to rebuild their lives with the help of their families, community, and insurance agencies.

- Alexandra Prim, Copywriter

Are you attending the PLRB Large Loss Conference? What are you hoping to take away that will help you face your next Large Loss claim?

From Little Comes Much: In a Midwestern City with Humble Beginnings, a Presentation on Possessions

2011-09-13T14:45:00.000-04:00

Indianapolis, Indiana is a city that prides itself on growth and success due to a firm pioneer spirit and a vision of that proverbial American Dream. In fact, it recently hosted a PLRB/LIRB 2011 Regional Adjusters Conference where Insurers World President Don Stafford spoke last week along with Mark Sommers of Indiana Farm Bureau Insurance.

But Indy, as its residents affectionately call it, started out small.

While most people immediately think of the Indy 500 when Indianapolis is mentioned, the state capital is about much more than just the car race that makes it famous. It was originally inhabited by various tribes of Native Americans, such as the Miami and Lenape, and later settled and urbanized by pioneers of European descent who were heading west to expand opportunity and the United States.

On the web site VisitIndy.com, attractions are highlighted such as the Conner Prairie Interactive History Park. This destination operates through first-person interactive narratives (much like Colonial Williamsburg and Plimouth Plantation) but boasts several different backdrops such as “an Indian camp, a pioneer village, a Victorian farm and [an] 1859 balloon voyage,” according to VisitIndy.com. The park was named one of the top five museums in the United States and illustrates how pioneers and Native Americans with few possessions were able to turn a small riverbank camp into a thriving state capital.

Educational draws, such as Conner Park, in Indy may showcase the city’s sparse beginnings, but the PLRB Conference did much to illustrate how far Americans have come since then.

Don Stafford and Mark Sommers presented on the topic of ‘Controlling Contents Losses’ and focused on three areas: “organiz[ing] and control[ing] large and complex scopes of loss, establish[ing] or verify[ing] accurate values for residential and commercial contents losses, and explor[ing] repair versus replacement options for various contents claim scenarios.”

While exploring these ideas, examples were given of personal and commercial possessions that can potentially become categorized as losses in the event of a fire, natural disaster, or other scenario that may compromise a building. Textiles, furniture, fine art and collectibles were all covered as potential losses and discussions were begun on how an adjuster would properly scope and evaluate in such a situation.

Noting so many acquisitions available in the modern world really exemplified how far America has come in the last two centuries: from humble beginnings in small towns such as early Indianapolis, to highly successful owners of plentifully furnished homes and businesses in modern times.

- Alexandra Prim, Copywriter

Did you attend the PRLB presentation on Controlling Contents Losses? If so, what did you take away from it?

Dark and Stormy: Hurricane Irene’s Impact on America and the Insurance Industry

2011-09-07T10:53:00.003-04:00

Last week, it hit. The first major hurricane to make its way up the East coast in recent years battered states from Florida to Vermont, leaving a wake of downed trees, floodwater, and over forty dead.

"We were in the basement trying to put all the shoes on higher shelves when the water started cascading down the stairs and through the wall," said Michelle Ross, a Brattleboro, Vermont shoe store manager to Masslive.com. "It looked like something out of an Indiana Jones movie. We saved what we could but we had to leave in a hurry. It just wasn't safe to stay in the building with so much water coming in."

Vermont wasn't the only state plagued by hurricane damage, either. The New York Times attributed several deaths to falling trees. A boy in Virginia died after a tree fell on his apartment building and several more people in Virginia and North Carolina suffered tree-related deaths.

Due to the storm, businesses up and down the coast were shut down and entire cities came to a standstill. The streets of New York stood empty as part of Manhattan was evacuated and the public transportation system halted. After the heavy rain and lack of pedestrians, its streets were the cleanest they’ve looked in recent history.

Additionally, extreme property damage was reported in every state through which the hurricane-turned-tropical storm traveled, causing what the Times estimated to be one of the top ten most expensive disasters in the history of the United States.

And it’s not just citizens who are feeling the cost of this much-hyped storm. Insured losses for Irene were estimated to be between $3 and $6 billion (and is now more than $7 billion), according to Reuters. In addition, the Huffington Post adds that the White House estimated that the storm will “cost federal taxpayers $1.5 billion in disaster relief,” which is above and beyond the direct cost to insurers and homeowners. Despite this, there are thousands of people who are not properly insured for the damage their property incurred. Forbes reported that “only about 30 percent of property losses inflicted by Irene in Connecticut will be covered by insurance; less will be covered compared to previous storms in part because insurers have been raising deductibles.”

In an effort to help Irene victims, several Internet sources have posted articles with instructions on how to find out if one’s damage is covered by his or her insurance. There are also several “frequently asked question”-style articles for those not versed in filing insurance claims. For instance, Reuters posted a piece called “Are you covered?” and, in it, addressed questions such as “my house is dry but my car got flooded. Now what?” and “I have a pretty high deductible. Should I file a claim anyway?”

Now that a week has gone by, the rebuilding will start. So brace yourselves for the influx of insurance claims that will undoubtedly come before the repairs begin.

- Alexandra Prim, Copywriter

Do you have a Hurricane Irene story to tell? If so, share it in the comments section!

East Coast Shakedown: The August 2011 Earthquakes and their Fallout

2011-08-31T07:47:00.003-04:00

Last week, the earth shook. No, a train didn’t rumble by and, no, a strong gust of wind didn’t rattle windows everywhere--the East coast experienced its largest earthquake since 1944.

While citizens up and down the Eastern part of the United States began their Tuesday afternoons, many were stopped in their paths by shaking floors and swaying walls. In some places, closer to the quake’s epicenter in Virginia, china cabinets exploded. Even the Washington Monument was not immune to the earthquake. The Washington Post reported that cracks from the quake have since appeared in its body, most notably a four-foot break near the top that’s invisible to onlookers on the ground.

“Ben Pirolli, 68, [of Mineral, VA], said he was working in the bathroom when the quake hit. ‘I was mopping the floor,’” he told the New York Times, “and the next thing you know, everything is falling in on me. I thought the world was coming to an end.”

Additionally, Colorado experienced some 5.3-level tremors the day before its Eastern counterpart. “On Monday the largest earthquake to strike Colorado in almost 40 years shook hundreds of people in the southern part of the state and in northern New Mexico,” said Insurance Journal, “causing minor damage to a few homes” as well as rockslides near multiple major Colorado highways.

And the U.S. wasn’t the only earthquake-hit nation last week. South American country Peru experienced a 7.0 earthquake (in comparison to the U.S.’s 5.8) on Wednesday, August 24. Luckily, just like in the United States, there have been no reports of major damage or injury in Peru or bordering Brazil so far.

Three notable earthquakes in one week has people understandably nervous. In the wake of these occurrences, there has been extensive speculation about earthquake preparedness in regions other than the West coast of the U.S. A Google search shows that there has been an explosion in Internet resources teaching readers how to put together an earthquake preparedness kit, as well as several articles on what to do for safety when an earthquake occurs.

Similarly, the question of earthquake insurance--and its necessity--has been raised by many. Since major quakes don’t happen often enough on the Eastern side of the U.S. for many to purchase earthquake insurance there, the rare and more violent tremors like that of last week put homeowners on edge.

“Most people who buy coverage live in quake-prone states,” said Bloomberg.com. “It’s very infrequent that residents who live on the East Coast purchase earthquake coverage since during their lifetimes there’s never been a temblor that warranted it.” Because no major property damage was reported, those affected by last week’s earthquakes can breathe a sigh of relief concerning paying out-of-pocket for potential repairs.

This time, all three earthquakes were tame enough to spare homeowners, but earthquake insurance will remain a topic of conversation as to how needed it is in every state.

- Alexadra Prim, Copywriter

Did you feel an earthquake last week? If so, relay your experience in the comments section!

Putting on the Storm Windows: How the U.S. is Dealing with Natural Disasters

2011-08-24T10:53:00.006-04:00

Sometimes, the past fades and we think that whatever is happening in the present is more major than anything that came before it. This is how it felt with the weather in the first half of 2011. Despite millennia of tornadoes, hurricanes, and torrential downpour, this year somehow seems to have hit the United States harder, weather-wise, than any other in recent history. And that’s because it has.

In 2011 alone, III.org reports that thunderstorms have cost overall losses for the United States of 23,573 million dollars, winter storms have cost 1,900 million, flooding has caused 2,100 million, earthquakes have caused 105 million, and wildfires have caused 125 million. Based on this information, it’s obvious that the American people need to be more prepared for any type of natural disaster—and that’s exactly what the federal government would like to accomplish.

According to Insurance Journal, there is an initiative being presented by the National Oceanic and Atmospheric Administration (NOAA) and its National Weather Service to make the U.S. a “weather-ready” nation. “The plan is needed as communities across the country become increasingly vulnerable to tornado outbreaks, intense heat waves, flooding, active hurricane seasons, and solar storms that threaten electrical and communication systems,” said Insurance Journal.

The web site went on to explain that NOAA wants to “improve precision of weather and water forecasts and effective communication of risk to local authorities,” as well as better “weather decision support services with new initiatives such as the development of mobile-ready emergency response specialist teams,” provide innovative science and technological solutions, enhance community preparedness, and work with weather enterprise partners to create safety and effectively manage environmental resources.

The goals that NOAA has put forward are hopeful to those who have already been affected by harsh weather conditions, as well as those who have so far been lucky but fear a tumultuous second half of 2011. Fortune said that “first-half losses are generally lower than second-half losses, which are often affected by hurricanes in the North Atlantic and typhoons in the Northwest Pacific.”

For those who live in prime hurricane territory, the most eventful weather of the year has yet to happen.

But the National Weather Service and NOAA are optimistic about the effects of their ideas. “Ultimately, these projects will provide the specific action plans necessary for us to adapt to extreme weather events and represent an important step in building a weather-ready nation,” said the National Weather Service’s director, Jack Hayes.

This positivity is important, as everyone in the U.S. needs something for which to hope in terms of natural disaster relief. The most important hope of all is that some relief can be realized before 2011 continues its reign as a catastrophic weather year.

- Alexandra Prim, Copywriter

Have you experienced higher than average claims due to natural disasters during the 2011 year so far? If so, tell us about it in the comments section.

Burning Down the House: Arson in the United States

2011-08-17T10:38:00.000-04:00

One minute it’s there, the next minute it’s not. That’s what it feels like losing a home to arson. And, every year in the United States, this loss is felt by hundreds of people who have seen their homes disappear in flames as the result of someone’s purposeful actions.

According to the National Fire Protection Association, in 2009 alone, “Arsonists set fires that destroyed $792 million worth of property. … These fires include factories, residential buildings, churches and motor vehicles.” The NFPA added that this statistic was, in fact, “down 21.2 percent from $1 billion in 2008.”

One huge reason behind the popularity of arson is none other than money. Yes, sometimes reckless teenagers will be responsible for setting fire to an abandoned property but, far too often, a homeowner or beneficiary will set an insured home ablaze in order to collect the insurance payout. This is a common occurrence in residential properties but continues to be a leading cause of arson in commercial buildings as well. If a business is floundering, the prospect of starting over with a hefty insurance payout can become appealing enough for an owner to sometimes act on this arson urge.

Although arson rates have dropped slightly, in the United States, in the past few years, there are still constant examples of the crime gaining the national spotlight on a regular basis. For instance, last week, Insurance Journal reported on five fires in Manchester, New Hampshire, that are being probed as possible arsons. Additionally, The Spokesman-Review reported on August 13 that “a fire inside the Lucky Friday Mine [a silver mine in Mullan, Idaho] likely was set by an arsonist, according to the Shoshone County Sheriff’s Office. … [And] about 170 miners who were working in the shaft where the fire was detected on July 26 are being scheduled for polygraph tests.”

This week, ABC News posted an article on a homeowner who was jailed in Coon Rapids, Minnesota, for a possible felony first-degree arson charge. “The fire, which took over half-an-hour to bring under control, had multiple areas of origin within the house. On arrival, police arrested a man who was identified as the homeowner. He allegedly admitted that he started the house on fire with gasoline.”

Due to rampant arson cases all over the country, FEMA and the United States Fire Administration both offer arson awareness weeks on an annual basis. The more secured abandoned buildings are, the more discerning insurance agencies are, and the more educated Americans are about what triggers arson (money or other personal issues, the readiness of flammable materials and unsecured properties), the less likely it is that arson will occur in any given situation.

For now, arson is still an issue in the United States. But, with public education, fewer homes and businesses will be lost to this particular crime every year.

- Alexandra Prim, Copywriter

Have you ever worked at a site where arson had been committed? Share with us in the comments section.

I Feel the Earth Move under My Feet: Earthquake Insurance in California and Beyond

2011-08-11T10:53:00.000-04:00

San Francisco, California; Port-au-Prince, Haiti; Sendai, Japan. These cities are all known for more than just their populations and international importance; they are the sites of three of the most damaging earthquakes of the last one hundred years.

Although Americans commonly associate earthquakes solely with California, they can happen anywhere. In fact, it is not entirely uncommon to feel tremors in the earth in the Boston area where Insurers World headquarters is. Earthquakes happen along fault lines, which are fractures that run deep into the earth where pieces of rock may move up and down against each other. Therefore, earthquakes can occur wherever there are fault lines—and the globe is downright riddled with them.

Because earthquakes are most often recorded in specific areas, it is standard practice for insurance companies to offer insurance tailored to this specific type of natural disaster. For instance, California residents are regularly presented with the opportunity to purchase earthquake insurance for their homes and, although it is an extra expense, can save homeowners thousands of dollars in the case of an actual earthquake.

Recently, in a move to help more California residents obtain earthquake insurance at a more affordable price, the California Earthquake Authority introduced a $150-million bond issue to the state. Additionally, last week, the CEA said that this bond issue is just a first step in a larger plan to help Californians.

“The CEA intends to have more, similar bond issues in the future, perhaps every four to six months,” said Tim Richinson, Chief Financial Officer of the CEA according to Insurance Journal.

The Journal continued that “what could really make a difference for the earthquake insurer is a bill being considered in Congress [called] the Earthquake Insurance Affordability Act. It would give [the] CEA access to post-event federal loan guarantees [to] use following an earthquake. That would allow CEA to issue bonds in the aftermath of an earthquake which, in turn, would mean [the] CEA could pass savings on to its customers.”

While earthquake insurance is definitely a more pertinent topic in California, it’s widely available in other states as well. Not as many people choose to purchase it, but coverage is often offered by smaller, local insurance agencies trying to accommodate all possible home risks.

“Earthquake insurance has been sold to residents of all 50 states,” said InsuranceGuide101.com. “After all, earthquakes have been known to occur even in the central regions of the continent.” The site added that “the Earthquake Education Center at Charleston Southern University claims there’s a 40 to 60 percent chance of a major earthquake somewhere in the eastern United States in the next 20 years.”

Earthquake insurance may not be the most financially sound insurance choice for everyone in the United States but, for an increasing amount of citizens, this type of coverage is becoming more affordable and attractive all the time - especially since there were 8,493 earthquakes last year in the U.S. alone.

- Alexandra Prim, Copywriter

Have you ever dealt with insurance claims in the wake of an earthquake? If so, tell us about it in the comments section.

Nothin’ Left to Lose: The Rebuilding of Joplin, Missouri

2011-07-28T11:03:00.000-04:00

The small town of Joplin, Miss. was a relatively anonymous destination in the midst of the American heartland until May 22, 2011. Around six p.m. that Sunday evening, a major tornado touched down and proceeded to wreak havoc on the population of 49,024, destroying over 2,000 buildings and ending 159 lives.

In the aftermath of this concentrated devastation, the nation has rallied around Joplin and its populace. Not long after the damage was wrought, President Obama flew to Missouri to tour the Joplin wreckage and speak with its residents and lawmakers. Besides comprehensive national news coverage of the tornado, this was the first major show of solidarity by the rest of the U.S. to Joplin citizens.

Since the end of May, the national spotlight on this small town has dimmed slightly but residents have undertaken the daunting project of rebuilding—both their community and their lives.

While it’s no surprise that thousands of properties were damaged in the F-5 tornado, the monetary amount of insurance losses is even more startling. “The Missouri Department of Insurance reported Missouri homeowners insurance companies have so far paid out $311 million on 7,004 insurance claims,” said HomeInsurance.com on July 7. The web site added that the total of homeowners insurance claims in Joplin is expected to ultimately reach over 8,000.

The most recent development in Joplin came on July 19, when Missouri Governor Jay Nixon outlined his plan to allocate approximately $122 million in state and federal aid to the rebuilding of Joplin’s homes. The goal of this action is to ensure that “residents, and especially families, have access to adequate, affordable housing [which] is a critical part of [the] recovery process,” said Nixon in a statement.

The influx of money will have a very positive effect on exhausted Jopliners. “We're thankful we still have our jobs,” said resident Angela Sanders, “but I pray every day for strength to work eight to five and then to come here and work from six to eleven,” she said of her tornado-damaged house according to Missouri news station web site KSDK.com.

In addition to reconstructing, Jopliners are determined to improve. “Residents want the city that emerges [to] include sidewalks, underground utilities, and walking and biking paths” as well as two high schools and more public transportation, reported the Joplin Globe according to industry publication Insurance Journal. “About 200 people attended [a] public hearing designed to gather information about what residents want to include in the rebuilding.”

In the wake of the tornado, life in Joplin became very difficult very quickly. But residents are persevering. Out of the 400 families with children in the Joplin school system, all but a dozen plan to stay in the town.

Over time, the community will heal, and it’s evidenced by Joplin’s progress that the healing has already begun.

- Alexandra Prim, Writing & Marketing Assistant

Have you had experience with homeowners in the wake of a tornado? What difficulties do you specifically find with tornado losses?

Changing Tides: The National Flood Insurance Program, Explained

2011-07-21T07:25:00.000-04:00

Sometimes, change can be a good thing.

Last week, the U.S. House of Representatives voted 406 – 22 in favor of a bipartisan bill to reauthorize the National Flood Insurance Program (NFIP) for the next five years under the assumption that changes will be made to improve the program overall.

According to the industry web site Insurance Journal, “NFIP, which currently operates with a debt of nearly $18 billion, is administered by the Federal Emergency Management Agency (FEMA). Since 2006,” Insurance Journal added, “it has been widely criticized for under-pricing risk and promoting development in flood-prone areas that are more suitable for conservation.”

While 21 Republicans and only one Democrat voted against the measure, it was written by U.S. Rep Judy Biggert, R-Ill. and co-sponsored by 19 Democrats and Republicans together for a joint effort at reform. After the measure was passed, Biggert said that “this bill will phase-out taxpayer-subsidized rates and restore the integrity of the flood mapping system.”

Next, the NFIP bill will be sent to the U.S. Senate where it has the possibility of being put on President Obama’s desk for a signature of authorization.

Before the vote, insurers across the county were tense. “The NFIP, while not without its flaws, is the only mechanism to ensure that those facing flood risk are helping to cover the costs of flooding,” said Jimi Grande, a senior vice president at the National Association of Mutual Insurance Companies (NAMIC). “If you take that away, you’re putting more expense on the taxpayers.”

According to additional industry publication Insurance News Net, American Insurance Association President and CEO Leigh Ann Pusey said that “the five-year extension and reforms will provide certainty in the flood program thereby increasing consumer and business confidence in the NFIP while putting it on a more sound financial footing.”

While insurers are happy that the NFIP may stay in place with certain reforms to benefit taxpayers and those at risk of flooding, there is concern that FEMA, burdened with the 800,000 flood insurance policies that State Farm forfeited, may continue to be unable to properly administer the program. In this vein, there was an approved amendment accompanying the NFIP legislation that would require FEMA to offer these policies to private insurers under the Write-Your-Own Program.

Additionally, if this bill passes, it will gradually bring in risk-based premiums while eliminating subsidies for certain properties. It would also raise “the cap on annual premium increases,” said Insurance Journal, “which supporters hope will help transition properties newly mapped into flood zones,” as well as indexing maximum coverage limits to inflation.

If the bill ultimately goes into effect, there will be many changes in store for both FEMA and the NFIP. But lawmakers and insurers alike are hopeful that these overhauls will help the American public.

- Alexandra Prim, Marketing & Writing Assistant

Have you handled any claims that were the result of flooding? Tell us about your experience in the comment section.

Burning Up: America’s Summer Wildfires

2011-07-14T13:30:00.001-04:00

This year, it’s been one thing after another for the U.S.. There’s barely been a day that’s been devoid of some sort of crisis since the beginning of 2011. Now—in the wake of the winter’s ice and melting snow and spring’s flooding and twisters—comes summer’s hazardous wildfires.

Recently, states such as Arizona, New Mexico, Texas, Colorado, and North Carolina have fallen victim to hundreds of infernos sprawling across their respective countrysides.

Currently, the most severe wildfire in New Mexico’s history is still smoldering over thousands of acres, forcing evacuation everywhere it has spread. Most notably, the fire has put thousands of homes in Los Alamos at risk. While the Los Alamos National Laboratory—where 10,000 large drums of radioactive material are stored—is no longer at risk from the fire, more than 10,000 Los Alamos residents fled their homes due to fire danger.

With the fires causing so much damage, various state organizations have taken to the Internet to try and educate residents on fire safety. A local CBS television station web site cautioned people to avoid using outdoor household fires, campfires, and even discarding cigarettes, in case of sparks being carried on the wind.

“We can’t really afford human-caused fires with all the lightening. We’ve got people that are pretty wrapped up with all kinds of fires here and in the southwest so we just don’t have a lot of resources we can spare,” the U.S. Forest Service’s Jeff Thumm said. In Thumm’s state of Colorado, lightning has recently been responsible for sparking a dangerous fire at Carpenter Peak.

Although concern is high among residents of all wildfire-prone states, these fires can start regardless of all precautions taken by officials and homeowners. In these cases, the only thing to do is combat the fires and try to prevent property loss. Despite best efforts, many people have been forced to evacuate their homes in several states.

“Hundreds of residents in Sierra Vista and Greer, Ariz. returned to their homes Monday [July 5] to inspect the damage from two large wildfires across the state, but many had no homes to return to,” said news web site eventsof2011.com. “Southern Arizona’s Monument fire has destroyed about 60 homes since it began.”

Wildfires can begin with almost no warning and are extremely difficult to put out without damage to homes, property, and wildlife. Although people tend to associate these fires with dry grasslands, the Insurance Information Institute states that, in 2010, wildfires caused $210 million in insured losses and $314 million in total economic losses.

With autumn will come reprieve from the fires but, until then, homeowners will be at risk and the burnings will continue to be combated. And, if things continue the way they have, 2011 will play out as the costliest year—as far as wildfires are concerned—on record for insurance companies.

- Alexandra Prim, Marketing & Writing Assistant

Have you had to deal with wildfire losses? Do you find people have time to take their most treasured items with them safely? Share your comments below.

From Sears and Roebuck to Internet Searches: The Changing Methods of Evaluation

2011-07-08T09:08:00.001-04:00

Your grandfather’s old pocket watch so aged that any markings once on it have been polished off. Your dusty collection of political buttons, found at a yard sale that might be worth something. These types of items not only spark owners’ curiosities, but need to be evaluated when listed on homeowners’ claims so that insureds can be adequately compensated. In this spirit, Insurers World president Don Stafford gave a detailed presentation that covered the change in personal property value determination at last month’s PLRB Eastern Regional Adjusters Conference.

One institute in determining value is the Sears, Roebuck and Company catalog. This magazine provided Americans with the ability to determine the price of almost any item, as well as the means to make a mail-order purchase, from its conception in 1888 until the latter half of the 21^st century. Even today, the Sears catalog is still in print and many use it to make phone orders. While Sears was the trailblazer, there were other catalogs, like the one circulated by Service Merchandise, that served the public for years before newer technology caught on.

While these publications revolutionized Americans’ ease of pricing for hundreds of thousands of items, nothing has done more for those seeking an evaluation than the advent of online search engines. One needs only to type “price of Dockers khakis” into Google to discover the market price of these slacks. The main issue with technology such as this is that it’s simply too all-encompassing. It can be frustrating to conduct a Google search and be presented with hundreds of results, only a fraction of which apply to the actual search. Additionally, a great number of related site results are unreliable. For instance, one has to carefully consider eBay search results, looking at closed successful transactions for clues to valuation, and not being dependent on current or ask prices on open auctions.

The Internet has made an amateur evaluator out of anyone who desires the title but, often, an item surfaces that cannot be easily priced. Antiques, rare, customized, or out-of-production objects all fall into this category. This is where evaluation specialists step in with their invaluable expertise. Here at Insurers World, we have many qualified experts ready to help with the valuation of any type of possession. From computers to antiques, tools to diamonds, if virtually any item needs its value determined, our specialists have the knowledge and experience to accurately price these objects.

Sears, Roebuck and Company may no longer be the go-to for pricing any given item, but people in search of an accurate valuation still have reliable options with the Internet and evaluation services. Catalogs have gone out of style and the Internet can be too general but, as long as obscure items and the need for valuation exist, evaluators will have an important job to do: satiating people’s never-ending questions about the worth of objects in their lives.

- Alexandra Prim, Marketing & Writing Assistant

How do you feel about the change from catalogues to internet searches?

To Build a House: Complications in Post-disaster Construction in Florida

2011-06-28T07:12:00.000-04:00

Losing a home is incredibly painful. But for hundreds of Hurricanes Katrina and Rita victims, starting over has had its own obstacles.

After two of the more devastating hurricanes in the last several years struck the state of Florida, residents knew that they needed to rebuild their ruined homes quickly and efficiently so that life could go on. In doing so, hundreds of the effected chose Banner Supply Co. to provide Chinese drywall for the building process. As it turns out, this has led to several years of frustration and cost due to the tainted drywall that Banner distributed.

Now, after years of litigation and press coverage, a settlement has finally been reached—awarding the effected homeowners with $54.5 million for their troubles.

“[The] deal covers just a portion of the claims by homeowners who blame drywall for a host of problems, including corrosion of electrical wiring, appliances and electronics,” said the Miami Herald. “[There are] more than 10,000 claims by residents blaming damage to their homes on Chinese drywall, which was used in construction throughout Florida and the Gulf Coast. Only plaintiffs whose homes contain Chinese drywall supplied by Banner would be eligible for shares of the settlement fund, paid by Banner's insurers.”

It’s been a difficult number of years for homeowners involved in this case. Having to rebuild—often from scratch—only to find numerous new problems presented by the faulty drywall has been challenging to all. “Drywall is used to construct walls and ceilings,” said Reuters. “The tainted product has been blamed for emitting a stench and for producing fumes that damage air conditioning, fixtures and wiring.”

Interestingly, Banner, although compliant with the settlement, does not want to shoulder full blame for the tainted drywall. The distributor purchased 1.4 million sheets of Chinese drywall around the time homeowners were hit by the tornados and started reconstruction. Most of that product was bought from major German company Knauf Plasterboard Tianjin Co.

“Even though Banner signed a confidential settlement with Knauf in 2007, Banner now asserts that it was fraudulently induced to sign that agreement,” said law.com. “Specifically, Knauf admits that it knew its drywall was actually defective at the same time when The Knauf Group told Banner that Knauf Drywall was safe.”

While Banner and Knauf still have their legal issues, effected homeowners are no longer a part of the court battles. With tens of thousands of dollars going to each Florida owner listed on the initial lawsuit, there will be enough funds to fix all drywall-related issues that still remain and compensate for years spent in court and limbo, waiting for a resolution.

- Alexandra Prim, Writing & Marketing Assistant

Have you seen how Chinese drywall has affected a homeowner, their appliances or electronics? Tell us your thoughts in the comments section.

Through the Roof: Tornado Claims in Massachusetts

2011-06-22T08:25:00.000-04:00

A claims adjuster’s work is never done.

Originally, estimates of claims costs from the June tornadoes in Massachusetts were thought to be around $90 million. Now, almost a month after the storm that brought down homes, buildings, and power lines in the Central and Western parts of the state, Massachusetts insurance officials have adjusted their estimates to reflect thousands of claims totaling $140 million as reported by insurance carriers.

“‘Victims have come forward with 8,200 claims,’ Joseph Murphy, commissioner of the Division of Insurance, said Thursday,” according to the Boston Globe. In efforts to combat the seemingly unceasing claims entering the system, locally-based insurance companies have deployed adjusters into the tornado-ransacked field as well as guiding insureds online.

The Hanover Insurance Group of Worcester, Massachusetts, has posted a list of frequently asked questions on their web site in hopes of assisting some clients without necessitating a phone call that would mean wait time and automated menus for the claim holders. Among the questions that Hanover strives to answer are, “How do deductibles work?” and “Does my insurance cover staying at a hotel?” Homes with tree damage are extensively covered as well as several other scenarios that are apt to befall homeowners with tornado damage.

Additionally, Boston-based Liberty Mutual also shares advice on their web site. In addition to a 24-hour call center, they have set up a temporary mobile claims unit in Springfield, Massachusetts, to work with tornado victims as well as offering several safety tips aimed to help effected people in the wake of the tornados. Their site covers everything from directions on how to report a claim to what to do when driving near a twister.

While insurance companies are busy trying to address as many claims as possible, the great expense and volume of claims has made national headlines. Reuters and Yahoo News have both reported on the estimated increase of claims costs from $90 million to $140 million and insurance sites such as Insurance Journal and homeownersinsurance.com have covered the story of rising costs as well.

Yahoo said that, last week, “President Obama signed a disaster declaration for Hampden and Worcester counties that frees up federal funding to residents and business owners and will help supplement state and local recovery and rebuilding efforts.” The site added that “the state Senate approved a $15 million bill to pay for state costs for the tornado damage and cleanup.”

Regardless of government help, call centers, and web sites, insurance companies are overwhelmed with insurance claims and the residents in need who submitted them. Cleanup and repairs are underway in Massachusetts, but the work is far from over for claims adjusters.

- Alexandra Prim, Marketing and Writing Assistant

Have you had any interaction with Massachusetts tornado victims in the last month? Tell us about the claims you’ve seen in the comments section.

Hard to Adjust: Different Weather in Massachusetts Sends Claims Adjusters to the Scene

2011-06-09T07:58:00.000-04:00

Hurricanes? Yes. Blizzards? Absolutely. But tornadoes? Most Massachusetts residents don’t give them a second thought. Twisters are for the Midwest with its open plains and legendary Dorothy—not for hilly, heavily populated New England. But this line of thinking has proven dangerous for northerners when tornadoes do touch down and, as history exemplifies, they continually do.

On June 1, 2011, violent funnels spun through Western and Central Massachusetts, tearing apart towns and wreaking havoc in downtown Springfield. Four lives were lost and, in the aftermath, residents are looking through debris and starting to reconstruct. Before rebuilding can occur, though, insurance claims need to be filed to begin the process.

Immediately following last week’s tornado outbreak, claims adjusters from insurance companies all over the nation began converging in Massachusetts. In fact, money for clothing and hotel room stays was being distributed to homeowners as early as June 2. “‘The goal is to get the process started as quickly as possible,’” Glenn A. Greenberg of Liberty Mutual’s Boston home office told MassLive.com.

The web site further reported that The Travelers had 75 adjusters in the tornado-affected area as quickly as the day after the storm. The Travelers also planned to set up an RV-style mobile claims unit in Springfield. “The truck, which is equipped with satellite communications equipment, had been in tornado-ravaged Missouri” earlier in the month, said MassLive.com

While there are hundreds of claims adjusters present to help victims of the twisters, there are still plenty of people who have yet to receive assistance or instruction. For them, several publications have printed advice for preparing damaged and destroyed property for assessment.

The Boston Globe said to “not make permanent repairs until the adjuster has inspected the property, but take action to prevent further damage, like covering holes in the roof or removing water.” The paper also mentioned taking “pictures of the damage, particularly if you must throw away items of value that are bacteria-laden and no longer safe to preserve.”

Additionally, Joseph Murphy, Massachusetts’ insurance commissioner, met with several different insurers and worked with them to create a hotline that victims can call to help answer questions regarding filing claims. “It’s expected to take weeks to tally up the property damage,” the Herald said. “The tornadoes represent a rare disaster for the Bay State insurance industry, which is used to processing a blizzard of claims after major snow and ice storms.”

Regardless of the challenges ahead, insurance claims adjusters are clearly heading the effort to rebuild. Their major presence in the Central and Western regions of Massachusetts are a comfort to those who have lost homes and, in some instances, family.

- Alexandra Prim, Writing & Marketing Assistant

Do you have any experience with tornado property loss claims? Tell us your thoughts in the comments section.

Rebuilding with Caution: Keeping Watch for Post-Disaster Scams

2011-06-02T07:49:00.000-04:00

Alan Autry once said, “It cannot take decades to resurrect. We must act immediately with purpose and enthusiasm to rebuild.”

That’s one thing Americans know quite well: in the wake of a tragedy, the only thing to do is rebuild. But most homeowners don’t have the professional knowledge or physical ability to do so all by themselves. Even for the epitome of a handy man husband, a tornado-leveled two-story is too much to fathom fixing. Enter the contractors.

“Thirty minutes after the tornado roared across north Minneapolis on May 22, contractors began swarming through the beleaguered neighborhood,” said the Minneapolis Star Tribune. “[They were] eager for the business of fixing some 3,700 damaged properties.” The scene was so frenzied that even some builders were shocked by it. And yet, this is what has been happening after recent disasters all over the United States.

While many contractors run honest businesses that honor agreements and finish jobs, alerts have been issued by several local and national sources for homeowners to exercise caution in hiring in the wake of a disaster. Qualifications and consumer reviews need to be properly considered before money exchanges hands.

“Watch out for ‘fly-by-night’ contractors who take deposits and do not do any work,” said the Pinellas County, Florida official web site. “Never deal with any contractor soliciting work at your house.” Although, after a tornado or flood has seriously damaged a residence it’s easy to panic and natural to want things fixed as soon as possible, it’s more crucial than ever to vet contractors thoroughly for proper licensing and positive testimonials.

The Federal Trade Commission offers good advice for homeowners in dire need of repairs. “Get a written estimate that includes all oral promises made, but make sure to ask if there is a charge for an estimate. Do not automatically choose the lowest bidder [and] obtain a copy of the final contract.” Maybe most importantly, the FTC’s web site cautions to “resist dealing with a contractor who asks for the entire fee up front. A deposit of one-third of the total cost is standard.”

After a rough first half of 2011, it seems that the worst of the cyclones and flooding is behind most states. This means that rebuilding homes, businesses, and public areas is a national priority right now. While it’s only natural to want this work to be done quickly so that life can go back to normal, it’s crucial not to rush through picking the right builder for the job.

Not everyone is out to scam Americans in need—that much is very true. But there are enough rip-off artists capitalizing on disaster for homeowners to take their time and ensure a job done right.

- Alexandra Prim, Writing & Marketing Assistant

Have you dealt with any home contracting scams? If so, make sure to list the perpetrating company on www.ripoffreport.com and report them to the Better Business Bureau or call the consumer division of your state Attorney General’s office.

Rising Waters: An Updated Look at Flooding in the U.S. South

2011-05-19T10:53:00.000-04:00

It’s a tough time to be a Southerner in the United States. While tornado scares have died down, flooding is now causing major concerns up and down the Mississippi River. As floodwaters steadily rise, many measures are being taken by local and national government to keep homes and land safe. Among the precautions enacted by officials was the opening of Morganza Spillway by the U.S. Army Corps of Engineers on Saturday, May 14.

While several spillways have been opened to prevent serious flood damage to heavily populated cities like Baton Rouge, less settled areas have borne the brunt of the flood damage as a result. According to Reuters, “towns and crop lands along the Atchafalaya River basin that are in the path of the diverted floodwaters could see as much as 20 feet of water in the coming days.”

Additionally, the Louisiana State University Agricultural Center reported that crop fears due to drought earlier in May have been seriously reversed. “Corn and soybeans planted in the Morganza floodway sat parched,” said LSU. “Farmers were anxious for a rain. Today, water covers these same crops, drowned by the opening of the spillway.” Many fields are expected to see a total loss, as about 300,000 acres will be flooded just in Louisiana.

Although flooding continues south, waters have left a trail of damage along the banks of the Mississippi. 130,000 acres of farmland in Missouri were flooded after a levee was torn down to control river levels. Thousands were evacuated in Missouri as well as in Illinois, where floodwaters were also high. Last week, the river crested in Tennessee at a height of nearly 48 feet—just inches short of setting a floodwater record. So far, the overall flood damage from this season is forecast to be in the billions.

One fact meant to put water-ravaged Southerners at ease is that the many steps taken to lessen the flooding have so far proven successful. “The efforts seem to be having some effect, officials said,” according to the Los Angeles Times. “The Mississippi is cresting about 2.5 feet down from earlier projections in both New Orleans and Baton Rouge.”

In addition to the seeming success of anti-flooding measures, a high profile visitor has kept morale up for some victims. President “Obama met with [a] group at the Cook Convention Center in Memphis,” said the Times. “He also gave the commencement speech at Booker T. Washington High School, which won a contest to earn the president's appearance.” Obama has been traveling to impacted areas to speak with citizens personally.

“We’re there for you,” the president was quoted as saying by the Times. “And we’re grateful for your resilience.”

- Alexandra Prim, Writing & Marketing Assistant

Want to help? We urge you again to donate to the American Red Cross by clicking this link for more information: https://american.redcross.org/site/Donation2?idb=630974218&df_id=4993&4993.donation=form1

Weathering the Storm: The Recent Rise in American Natural Catastrophes

2011-05-10T10:54:00.000-04:00

In the past few months, it seems that Americans have had no reprieve in a constant onslaught of natural disasters. Between heavy snow, brush fires, tornadoes, and now severe flooding, some U.S. states are claiming literally billions of dollars worth of damage as storms continue to break records and claim lives. Throughout all of this, there are organizations like the Red Cross and the Army Corps of Engineers steadfastly bringing aid to the stricken regions—although there are far too many people still in need of immediate relief.

In the wake of the horrific earthquakes and tsunami that ravaged coastal Japan this past March, Americans were quickly distracted by problems at home: namely, a string of 871 tornados during the month of April (according to the National Oceanic and Atmospheric Administration) that swept across the country leaving over 330 people dead.

One state that took a particularly heavy toll in the recent twisters is Alabama, home of more than two thirds of those lost. According to MSNBC, “insured losses in Alabama from [the] devastating tornadoes are expected to exceed $2 billion.” Alabama Insurance Commissioner Jim Ridling, who was quoted by MSNC after meeting with insurance executives, said that, “in all my years in the insurance industry I have never seen anything so violent and widespread.”

However, while the tornadoes seem to be behind the U.S. for the immediate future, the imminent flooding of the Mississippi River in several places is now the country’s main concern. The Associated Press said that over 1,000 people have already been evacuated from their homes in the Memphis, Tennessee area alone and the river is currently at 47.5 feet—only .5 feet below the record high of 48.

Luckily for Southerners, people from all over are pitching in to help. The Red Cross’s web site said that it is “preparing to launch a prolonged shelter and feeding operation for people living along the Mississippi, sending in leadership teams, calling down disaster workers and pre-positioning thousands of cots, blankets, and other relief supplies.”

While Americans are currently being hit hard by disasters, there is a sense of solidarity among hopeful victims and volunteers. It’s times like this that the American spirit of endurance is most important and, luckily, there are hundreds giving time and resources to make sure this spirit is preserved in every person in need.

- Alexandra Prim, Marketing & Writing Assistant

Would you like to donate to the Red Cross’s efforts for relief in the South? Click here for more information: https://american.redcross.org/site/Donation2?idb=630974218&df_id=4993&4993.donation=form1

Going Out and Plugging In: The App Craze Takes on Claims Adjusters

2011-04-28T09:27:00.000-04:00

“There’s an app for that.”

How many times have you heard that catchphrase in last year or so? The saying, and mobile applications in general, have become so popular that Apple trademarked the phrase last October. These days, it seems like everyone has a smartphone or tablet and they’re being used for just about everything.

While a large amount of Americans already own smartphones for personal use, a growing number of them are utilizing these devices for business purposes as well. Under the impression that apps are just for playing games or finding the nearest sushi restaurant? Think again.

The insurance company Allstate recently debuted a free smartphone app called the Allstate Digital Locker. According to their web site, the application enables the user to “create an inventory of your items which can be stored right in your pocket. Organize your property by room, category, or in item lists.” An application like this is useful for homeowners who need to get organized. “Take pictures … and manage an inventory so you’ll have the information at your fingertips if you ever need to make a claim,” said Allstate.com.

Applications like Digital Locker have been thriving due to their usefulness and accessibility. Other industry apps, like the Liberty Mutual application, for customers include the ability to report claims, check claim status, schedule home maintenance, and review adjuster notes.

And don’t worry—technology hasn’t forgotten claims adjusters. Mobile apps for employees are also booming. Notably, CSC (Computer Science Corporation) has created a free insurer application. According to their website, with the app, “an appointment can be added to the adjuster’s schedule based on current location. The device can be used to take pictures and attach them to the claim with a time stamp and geocoding. It can collect information from the claimant and gather information such as weather conditions.”

It’s great to have a computer screen on which to work but, in a fast-moving world, it’s crucial to be able to access important information via handheld device. So, the next time you need to access a claim quickly, or do just about anything else on the go, relax.

“There’s an app for that.”

- Alexandra Prim, Marketing & Writing Assistant

What do you, the claims adjusters, think about mobile applications? Do you use them? Do you see homeowners utilizing them, too? Share your mobile app of choice and your opinion on apps in the workplace.

From Music City, with Love: Instruments and Insurance

2011-04-12T09:19:00.000-04:00

Admit it. Growing up, you always wanted to rock the guitar like Jimi Hendrix or, maybe, croon into the microphone like Elvis. For most of us, dreams of serious musicianship never come to fruition but, for a dedicated few, playing music becomes a major theme in life.

Because this year’s annual PLRB conference took place in Nashville (nickname: Music City), we thought we’d take a look at some interesting instruments that we’ve seen listed on claims over the years. Insurers World’s own Peter Skaltsis, an instrument expert in the Sports and Media department, is here to take us down the proverbial memory lane with one of his favorite memories on the job.

“Guitars are probably the most common instrument I see insured,” said Peter. “There’s a great vintage market for them. But I see everything.” For over a decade, Peter has worked with a world-famous actor, helping him to amass an assortment of vintage guitars that comprise one of the world’s most valuable collections. The prize piece of the group is an Albert King Gibson Korina Flying V electric guitar. “He was offered a million dollars for that guitar,” said Peter. “And he turned it down.” To some, holding on to and enjoying an instrument is more important than making a profit.

Peter related another story about a guitar collector who had one of his instruments appraised over through the mail. Upon later examination by Peter, it was determined that the 56 Fender Stratocaster had been refinished—which cut the insurance value of the instrument roughly in half. Peter was able to save both the customer and the insurance agency about $7,000. “You really have to have a vintage instrument in hand to do a proper appraisal,” he said.

One fun aspect of this year’s PLRB conference was that, because of the location, special attention was paid to the Nashville music scene and to insurance of musical instruments in general. For those who don’t know, Nashville is home to the Grand Ole Opry: a radio program-turned-television show spotlighting country talent and humor. It began airing in 1925 and is still broadcast throughout North America today.

Although country music existed—albeit in rougher form—before the Opry, the genre exploded with Opry stars like Hank Williams and Patsy Kline. While these names sound archaic to some of you, the likes of Garth Brooks and Carrie Underwood have also come to superstar fame, greatly aided by their memberships in the Grand Ole Opry.

While most people do not have a highly sought-after guitar collection sitting in the guest bedroom, a great many homeowners do own an instrument or two—whether they consider themselves serious players or curious beginners.

Musical instruments appear on claims frequently; sometimes they are familiar items, sometimes unique. What’s the most memorable instrument you’ve seen on a claim? Comment below!

Alexandra Prim, Writing & Marketing Assistant

Welcome to the IW Blogger!

2011-04-06T11:48:00.000-04:00

Each week we'll be bringing you blogs on interesting topics revolving around the P&C insurance industry!

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