http://www.allstate.com/insurance-industry-news/property-insurance-news.aspx 60 en-us http://www.allstate.com/insurance-industry-news/property-insurance-news/march-a-notable-month-for-weather-disasters-800765602.aspx March truly did come in like a lion, as property insurance losses were in excess of $1 billion in the United States alone, a recent report indicates.

According to global reinsurance firm Aon Benfield*, in March, total economic losses were estimated at approximately $2 billion, with insured losses just over $1 billion after 170,000 insurance claims were filed.

The majority of the damage totals resulted from severe weather outbreaks throughout the Midwest, as at least 65 tornadoes are believed to have touched down in southern Indiana, Kentucky, southwest Ohio and throughout the Tennessee Valley. Forty-one people are said to have died from the twisters.

The Great Lakes region endured significant storm activity, as a tornado that measured an EF-3 on the Enhanced Fujita scale tore through southeastern Michigan, leveling more than 200 homes. Michigan-based insurers received 20,000 claims with insurance payouts eclipsing $150 million, Aon reported.

Steve Jakubowski, president of Aon Benfield's publisher, Impact Forecasting, said the first quarter of 2012 will likely go down in the record books as one of the more wild weather periods.

"Following an active 2011 U.S. severe weather season, the first quarter of 2012 has also proven itself to be markedly busy," said Jakubowski. "Through the first three months of 2012, we have already sustained more than $1.8 billion in insured losses from convective storm events as we enter the climatologically most active severe weather months of the year. Despite the heightened activity thus far, it is nearly impossible to forecast and project losses for the rest of 2012."

Mexico, China sustain earthquake damage

But the United States wasn't the only country that saw an increased prevalence of environmental disasters. Aon Benfield notes that in southern Mexico, a magnitude-7.4 earthquake rocked the nation, leaving two people dead and insured losses of over $163 million, according to data reported by the Mexican Association of Insurance Institutions. At least 44,000 homes, businesses, hospitals and schools were damaged following the quake.

Elsewhere, in China, a magnitude-5.8 earthquake destroyed so many residences that more than 36,600 people were left homeless. Direct economic losses from the quake are nearly $83 million, Aon reports.

Meanwhile, flooding events took place in other parts of the Far East in March, such as the Philippines and Fiji. They were also rampant in the South American corridor, specifically Ecuador, Chile and Colombia.

*according to Aon Benfield on April 5, 2012 http://www.allstate.com/insurance-industry-news/property-insurance-news/march-a-notable-month-for-weather-disasters-800765602.aspx Tue, 01 May 2012 11:36:15 http://www.allstate.com/insurance-industry-news/property-insurance-news/more-people-considering-homeownership-800765598.aspx The combination of rising rates for renters and record—low mortgage rates are prompting many people to consider buying a home of their own, a new survey suggests.

According to Fannie Mae's March 2012 consumer attitudinal National Housing Survey*, nearly 50 percent of respondents polled said they anticipate higher rental prices over the next year. While they also expect home prices to edge northward, they believe rental prices will increase more significantly.

Doug Duncan, vice president and chief economist at Fannie Mae, said market indicators are aligning in such a way that more people who had been on the sidelines are finally making the move.

"Conditions are coming together to encourage people to want to buy homes," said Duncan. "Americans' rental price expectations for the next year continue to rise, reaching their record high level for our survey this month."

He added that because it's become such a buyer's market, more people believe it's more cost effective to buy a home than it is to rent an apartment.

San Francisco rent rates have jumped 6 percent

This belief gains further credence when considering the rent increases that have taken place in many metropolitan areas throughout portions of the country. For instance, according to The Wall Street Journal**, rent in San Francisco and San Jose has increased nearly 6 and 5 percent, respectively, in March compared to the same period last year.

This helps explain why Zelman & Associates, a financial analysis firm, believes 2012 will be the year of the homebuyer, as more people decide to buy rather than lease.

"The equation of renting versus owning is becoming much more favorable for owning," Ivy Zelman, the firm's chief executive, told the newspaper.

Household finances less of an issue

The rise in more people considering homeownership may also be due to how consumers' finances are as they relate to the economy. Fannie Mae reports that just 12 percent believe their personal financial situation will deteriorate in the next year, the lowest level recorded since January of 2011.

In addition, the report indicates more people say their incomes levels are "significantly higher" than where they were 12 months ago. However, the lion's share of respondents — 63 percent — said their earnings had remained the same.

*according to Fannie Mae on April 9, 2012
**according to The Wall Street Journal on April 4, 2012 http://www.allstate.com/insurance-industry-news/property-insurance-news/more-people-considering-homeownership-800765598.aspx Tue, 01 May 2012 11:32:43 http://www.allstate.com/insurance-industry-news/property-insurance-news/have-you-purchased-a-flood-insurance-policy-800758279.aspx The weather is finally starting to warm up and many homeowners are looking forward to being outdoors and enjoying the sunshine. However, as the nation heads into the spring season, homeowners can also expect more rain and storms, some of which may result in home damage and flooding. In order to prepare for a new season of heavy storms, hurricanes and other extreme weather, homeowners are being encouraged to consider purchasing a flood insurance policy to protect their home investment.

Homeowners insurance covers several types of damage and scenarios, ranging from fires and theft to injuries and vandalism. However, flood insurance is not included under standard policies, and homeowners who live in areas that are prone to heavy rains and flooding may be putting themselves at risk by failing to purchase flood coverage, according to the Insurance Information Institute*. The III also encourages renters and business owners to purchase a policy as well or renew existing coverage to protect their assets.

According to a 2011 III poll, the number of Americans who are at risk of floods and own a policy is still dangerously low. The results show only 14 percent of Americans had a flood insurance policy in 2011, up from 10 percent in 2010 but down from 17 percent in 2008. Homeowners in the South carried the most coverage, with 19 percent of respondents reporting they owned a policy in 2011. The Midwest came in second, with 13 percent of homeowners confirming they purchased flood coverage versus 12 percent in the West and just 5 percent in the Northeast.

Flood risk

The group notes that flooding is one of the most common types of disasters in the United States, and can occur slowly over time or suddenly in the form of flash floods. Flash floods in particular are extremely dangerous, because their fast-moving waters can carry away debris and vehicles. Further, many individuals underestimate how powerful the seemingly low and slow-moving waters really are, which can often lead to preventable deaths and injuries.

According to the institute's data, Hurricane Irene, which struck the East coast in 2011, caused rivers and streams to rise to record levels and resulted in flooding in 10 states. However, many Americans balk when it comes to purchasing flood insurance because they see these storms as rare events and believe they may not be impacted by these occurrences.

"Just because most of the United States had dry and mild winter weather doesn't mean flood risks have altogether disappeared," said Michael Barry, III media relations vice president. "Largely due to the limited winter snowfall, for the first time in four years, no area of the country faces in 2012 a high risk of major to record spring flooding, according to the federal government. But some states have still been deemed as being at above-normal risk of flooding."


*according to the Insurance Information Institute on March 20, 2012
  http://www.allstate.com/insurance-industry-news/property-insurance-news/have-you-purchased-a-flood-insurance-policy-800758279.aspx Sun, 22 Apr 2012 17:29:21 http://www.allstate.com/insurance-industry-news/property-insurance-news/weather-experts-debunk-popular-hurricane-safety-myth-800758277.aspx As hurricane season approaches the United States, weather experts are out in full force urging Americans to follow disaster preparedness protocols to protect themselves and their assets from harm. In an effort to better protect individuals from danger, officials are not only putting forth strategies individuals should employ to protect themselves during catastrophes, but also debunking popular safety measures that may actually do them more harm than good.

According to The Associated Press*, one of the most common, but ineffective actions, homeowners, renters and business owners take during a hurricane is taping their windows to lower the impact of severe winds. However, hurricane officials are now saying that this action is not only ineffective, but creates a false sense of security that can place individuals in more danger.

"Our goal is to break this myth," said National Hurricane Center director Bill Read at a recent conference, according to the news source. "It does not protect your windows. At best, it is an inconvenience. At worst, some people have the illusion that they're safe … and people can get severely hurt."

However, a new study conducted by the Federal Alliance for Safe Homes** reveals that many homeowners still believe that taping their windows during a hurricane is a smart safety method, with seven out 10 saying they think it helps. FLASH president and CEO Leslie Chapman-Henderson responded to the survey, and explained that this method does not protect windows from shattering, and can instead cause larger and more dangerous shards of glass to blow through a home when windows are damaged.

"The shards can become bigger because they're being held together," Chapman-Henderson told the AP. "You're wasting your time. You're wasting your money and you're potentially increasing the danger to your home."

Effective disaster preparedness strategies

Officials say that instead of taping windows, homeowners, renters and business owners should employ other time-tested protections to safeguard assets. For example, hurricane shutters and impact-resistant window coverings add more strength and resilience to strong winds, and are less likely to blow through homes and damage the interior. Further, homeowners are advised to cover all openings that could be vulnerable during a period of severe weather, such as entryways, garage doors and vents.

Homeowners will also benefit from moving all yard objects into their homes or garages to avoid them being swept away or blown into a home. Lastly, having emergency kits prepared can help homeowners in the event of power outages or damage. Emergency kits should include flashlights, batteries, first-aid kits, water and food, identification and emergency cash. Individuals should also play close attention to town evacuation instructions and purchase a battery-operated radio to stay abreast of new developments and protocols.

*according to The Associated Press on March 29, 2012

**according to the Federal Alliance for Safe Homes on March 27, 2012 http://www.allstate.com/insurance-industry-news/property-insurance-news/weather-experts-debunk-popular-hurricane-safety-myth-800758277.aspx Sun, 22 Apr 2012 17:21:38 http://www.allstate.com/insurance-industry-news/property-insurance-news/coastal-flood-risks-spike-as-global-warming-intensifies-800758276.aspx Fears over the effects of global warming have intensified in recent years, namely as rising sea levels threaten coastal communities and homeowners. The results of a new report reveal that this phenomenon is expected to bring more negative effects in the coming years that may influence millions of Americans living near the coast.

The "Surging Seas" report conducted by Climate Central* reveals that rising sea levels have already doubled the annual risk of coastal flooding to new and unprecedented levels. As a result, rising sea levels combined with storm surges are expected to raise the local high-tide line by four feet in many areas of the United States by 2030. According to their data, 2.6 million homes—and the 5 million citizens that inhabit them—are located below this land level. In addition, more than 6 million people live in homes that are located on lands below five feet, which may face significant flooding by the year 2050.

The study also broke down the communities affected by state, noting that overall, 285 municipalities would be impacted, and half of the residents in these areas live below the four-foot level. Florida and Louisiana will be most heavily inundated by flooding, but residents living in New York, New Jersey, Maryland, Virginia and North Carolina will also be in harm's way. The results of the report also show that nearly every coastal state will see some effects of rising sea levels and coastal flooding, but some will be more heavily affected than others will.

Global warming effects to date

Sea levels have increased eight inches over the previous century, but experts say the rising levels are expected to accelerate at a faster and more dangerous pace in the future. While the rise seems small, scientists explain that these modest rising levels can make a significant difference in storm surges and flooding, making it imperative that homeowners plan ahead and protect themselves by purchasing flood insurance and knowing their risk.

"Sea level rise is not some distant problem that we can just let our children deal with," said Climate Central lead author Ben Strauss. "The risks are imminent and serious. Just a small amount of sea level rise, including what we may well see within the next 20 years, can turn yesterday's manageable flood into tomorrow's potential disaster. Global warming is already making coastal floods more common and damaging."

*according to Climate Central on March 14, 2012 http://www.allstate.com/insurance-industry-news/property-insurance-news/coastal-flood-risks-spike-as-global-warming-intensifies-800758276.aspx Sun, 22 Apr 2012 17:18:22 http://www.allstate.com/insurance-industry-news/property-insurance-news/storm-victims-avoid-scams-when-rebuilding-homes-800758275.aspx The recent string of dangerous winds and tornadoes affected several states in the South and Midwestern regions of the United States. Many homeowners in these regions suffered significant property damage because of the storms and may be in the process of hiring teams to rebuild or repair their homes.

However, some scam artists and bad businessmen often take advantage of vulnerable Americans following a disaster, making it important for homeowners to proceed with caution when hiring contractors and construction teams, according to the Property Casualty Insurers Association of America*.

"As the rebuilding process gets underway, unlicensed contractors and scam artists may be looking to cash in on your misfortune," said Christopher Hackett, PCI director of personal lines policy. "It is natural for homeowners to be in a hurry to begin making repairs following a natural disaster. However, homeowners will save themselves a lot of time, money and frustration by taking the time to check the credentials of the businesses and individuals that they hire to repair your property."

Finding a reliable contractor

After filing a property insurance claim, homeowners should do thorough research on different contractor services to narrow down a list of legitimate providers. In addition, PCI suggests asking for recommendations from friends, family and neighbors to find a service provider with a good reputation and work ethic. Once individuals have narrowed down a list, it is important to check these companies on the Better Business Bureau website to see if any red flags appear. There are also several ways homeowners can avoid common and costly mistakes.

First, owners should avoid making payments to a contractor up front. It's important to not only wait until the work is done to make sure the terms agreed upon in the contract have all been met, but to also avoid scams. For this reason, homeowners will benefit by having a formal and written contract drafted that outlines all of the expectations and costs of the job. Lastly, the PCI recommends that homeowners pay for contracting services with a credit card, rather than cash, to have a record of the transaction in the event that something goes wrong.

*according to the Property Casualty Insurers Association of America on March 7, 2012 http://www.allstate.com/insurance-industry-news/property-insurance-news/storm-victims-avoid-scams-when-rebuilding-homes-800758275.aspx Sun, 22 Apr 2012 17:15:37 http://www.allstate.com/insurance-industry-news/property-insurance-news/debt-credit-obstacles-stand-in-way-of-american-homeownership-800748936.aspx Record low mortgage rates and falling home prices were expected to spark more interest in the housing industry and prompt more would-be homeowners to submit mortgage applications. While fluctuating consumer confidence and stubbornly high unemployment rates have discouraged many Americans from buying a home, experts agree that other obstacles related to consumer debt and credit scores are another factor.

National Public Radio* host Rachel Martin recently interviewed Yale professor Robert Shiller regarding the obstacles that were preventing a housing market recovery, and he noted consumer financial conditions as one of the primary factors. Currently, Americans are carrying unprecedented levels of student loan balances, which recently topped $1 trillion and surpassed credit card debt. In addition, Shiller named tight mortgage lending standards as another contributor to Americans' difficulty obtaining a mortgage.

"You know, recent data show that student loans have increased markedly over the last decade," Shiller told Martin. "In fact, the total amount of student loans is up to something on the order of a trillion dollars—huge. That is particularly focused on younger people, the people who would be buying a home for the first time."

The impact of student loan debt on home purchases might be mitigated by improved job and income figures for graduates, he added.

"Now, if these people look forward to higher income as a result of having gotten a college education, they might perfectly well not feel saddled by the debt," Shiller said. "They might feel ready to go and make an investment in a house, but they have an immediate problem that they have to pay this debt right now. Makes it harder to get a mortgage and makes it less likely that they'll actually buy a house."

In addition, Shiller noted that the excitement and cultural ideas surrounding homeownership have also diminished as the economy has worsened. Shiller noted that owning property is not as "fashionable" as it once was, and fewer Americans see homeownership as an investment.

Future of the market

Shiller noted that while several negative factors may be inhibiting Americans from owning a home, there are several positive signs that the recession is ending. However, he says the positive indicators simply "haven't gotten there yet," but the economy is likely to show signs of life in the future.

*according to NPR on March 18, 2012 http://www.allstate.com/insurance-industry-news/property-insurance-news/debt-credit-obstacles-stand-in-way-of-american-homeownership-800748936.aspx Mon, 09 Apr 2012 17:20:21 http://www.allstate.com/insurance-industry-news/property-insurance-news/homeownership-remains-central-part-of-american-dream-800748911.aspx The volatility of the housing market and many Americans' lack of participation in the mortgage sector, despite unprecedented affordability, have raised questions about whether the American dream still exists. As more individuals turn to rental units, rather than homes, some analysts expect the country to become a nation of renters in the next few years. However, the results of a recent survey show that many Americans still believe homeownership is a smart investment and remain interested in purchasing a home one day.

The poll, conducted by the National Foundation for Credit Counseling*, asked participants what they were most anxious to do if their financial condition improved, with 51 percent responding they would buy a home. Existing homeowners also weighed in, and 23 percent said they would make home repairs and improvements.

"Homeownership has traditionally been a part of sound financial planning," said Gail Cunningham, spokesperson for the NFCC. "With a combined total of 74 percent of respondents selecting a home-oriented option, the poll results strongly suggests that people continue to place value in owning a home, and are anxious to buy a house or improve their existing one."

Overcoming tight credit conditions

Despite Americans' heavy interest in the housing market, credit criteria remains tight as lenders try to lower their exposure to risk by only extending financing to the most creditworthy applicants. There are several steps potential buyers can take to demonstrate their financial strength and improve their chances of obtaining a loan. The first piece of information a lender will consider when determining whether to extend a mortgage and how the terms will be set is a consumer's credit report.

Your credit file contains a detailed list of all credit accounts under your name, as well as their current standing. Examining your credit report at least six months ahead of submitting your mortgage application can alert you to credit behaviors that you may need to change to improve your credit standing and raise your score. Further, nearly 80 percent of credit reports contain some type of error, and pulling your report early will give you enough time to have mistakes corrected.

In addition to improving your credit, it is a smart idea to start saving for your down payment. New mortgage rules require buyers to make a 20 percent down payment to avoid purchasing private mortgage insurance. If you are unable to make a 20 percent down payment, you can still obtain a mortgage. However, your chances of being assigned more favorable terms and conditions will improve if you put down more money.

Lastly, get pre-approved for a loan. While this process does not set your lending agreement in stone, it can help you lock in a rate, which you must request in writing, and help you go through the mortgage process more quickly and easily.

*according to the National Foundation for Credit Counseling on February 29, 2012 http://www.allstate.com/insurance-industry-news/property-insurance-news/homeownership-remains-central-part-of-american-dream-800748911.aspx Mon, 09 Apr 2012 17:07:36 http://www.allstate.com/insurance-industry-news/property-insurance-news/insured-losses-reach-up-to-2-billion-from-late-winter-tornadoes-800748874.aspx Tornado season has hit particularly early in 2012, with many areas of the Midwest and South already damaged by a deadly string of tornadoes that left billions of dollars of damages in their wake.

According to risk management product provider EQECAT*, strong tropical cyclones prompted a few months' worth of tornadoes to occur in the period of few days, resulting in $1 to $2 billion in insured losses across affected regions. Between February 28 and March 3, at least 150 tornadoes touched down in the Midwest and South, with Tennessee, Kentucky, Alabama, Indiana and Illinois experiencing the brunt of the damage and frequency. Experts say the high number of tornadoes is well above average for the year.

Between February 28 and 29 alone, 36 confirmed tornadoes were recorded in the Midwest and South, one of which was categorized as an EF4 that destroyed more than 200 homes and companies.

New threats

Recent reports from several weather and climate agencies project weather conditions to become more severe across the United States in the coming years, leading to more damages, losses and fatalities. A recent report conducted by nonprofit group Climate Central** shows warming temperatures may also become a problem in the next decade, as sea levels rise and cause significant flooding in many coastal states. The study reveals nearly 5 million people who live in coastal areas are at risk, primarily those who live in high-risk states along the East and West coasts, as well as Gulf states, such as Texas and Louisiana.

"All low elevation places in the many urban areas along the coast will become more vulnerable, like Boston, New York City, Norfolk (Va.), New Orleans, Charleston (S.C.), Miami, Washington, D.C./Alexandria (Va.)," said S. Jeffress Williams, scientist emeritus for the U.S. Geological Survey told The Associated Press***. "More people and infrastructure will be at increasing risk of flooding."

Further, while many homeowners who live in coastal areas are required to purchase flood insurance, many who live inland may not have sufficient coverage, despite being put at risk. As the risk severe weather, rising ocean levels and storm surges grows stronger, homeowners who lack additional insurance coverage may be vulnerable to costly damages.

*According to EQECAT on March 5, 2012
**According to Climate Central on March 14, 2012
***According to The Associated Press on March 14, 2012
  http://www.allstate.com/insurance-industry-news/property-insurance-news/insured-losses-reach-up-to-2-billion-from-late-winter-tornadoes-800748874.aspx Mon, 09 Apr 2012 16:56:35 http://www.allstate.com/insurance-industry-news/property-insurance-news/report-homeownership-more-affordable-than-renting-in-most-major-metros-800747244.aspx More consumers may choose to secure mortgages, and subsequently, property insurance, as a report by Trulia.com* indicates that owning a home is more affordable than leasing one in all but two of the nation's major metropolitan areas, based on average home prices and rents.

The real estate resource company's Winter 2012 Rent vs. Buy Index shows buying is the more affordable option for consumers than renting in 98 of the country's 100 largest metros.

The top markets where buying is less expensive than renting included Detroit, Oklahoma City and Dayton, Ohio—cities hit hard by the recent housing crisis in terms of foreclosure activity, which has led to severe drops in home prices.

Conversely, Honolulu, San Francisco and New York City were the top-three markets in terms of where renting is more affordable than purchasing homes. The capital of Hawaii had a rent-to-buy ratio of 17—the highest reported by Trulia.

Cities proving more expensive for home purchases, suburbs less so

One trend Trulia noted from its findings is that homeownership appears to be more affordable in suburban areas than in urban ones. One example the company cited was in New York, where renting in New York City was considerably cheaper between December and February, while in suburban areas such as Westchester, homeownership was the more financially viable option for those looking for housing.

Additionally, in the Bay Area, the study found that renting was the less-expensive option than buying a property in San Francisco. In outlying areas, though, such as Contra Costa, the rent ratio was substantially lower, meaning home purchases were more affordable there than in the city.

Expert notes uncertainty in market despite study results

While low home prices and mortgage rates offer many consumers the chance to achieve homeownership this year, an official with Trulia stated there are still market factors that will likely keep home sales from improving markedly in 2012.

"As rents rise and prices stagnate, homeownership is becoming even more affordable, but rising rents create a dilemma for people who can't afford to buy yet," said Trulia chief economist Jed Kolko. "Rising rents make it harder for people to save for a down payment, which is the biggest barrier to buying a home that aspiring homeowners face."

He added home sales should grow significantly in areas where buyers expect home values to hike notably over time, such as healthy markets like Boston and San Francisco.

*according to Trulia.com on March 21, 2012 http://www.allstate.com/insurance-industry-news/property-insurance-news/report-homeownership-more-affordable-than-renting-in-most-major-metros-800747244.aspx Fri, 06 Apr 2012 12:18:57 http://www.allstate.com/insurance-industry-news/property-insurance-news/what-to-ask-when-looking-for-a-homeowners-insurance-policy-800725599.aspx While insurance customers may feel like they have a firm understanding of how homeowners insurance works, it's advisable to ask questions before purchasing a policy, a new report from the Insurance Information Institute* advises.

"Besides knowing the basics of what a standard homeowners insurance policy covers, consumers should ask a series of questions, and receive satisfactory answers to each of them, before buying a new policy, or renewing an existing one," said Michael Barry, vice president of media relations for the III.

To help consumers with the insurance buying process, III offers several example questions that customers may want to ask.

What are the rebuilding costs should my home be destroyed?

This is perhaps the most important aspect of an insurance policy, as any plan should be able to cover the total cost of a home should it need to be rebuilt from scratch, III notes. As a rule, a standard homeowners insurance plan should be capable of covering all of the damage that results from fire, hurricane, hail or lightning. It may also cover flood or earthquakes, but these coverages usually must be purchased as an add-on to a standard policy.

In addition to the structure of a residence, policies should also cover the cost of replacing material goods, such as furniture, appliances and clothing. Most insurers have plans that cover possessions worth up to 50 to 70 percent of the home insurance policy's value. In order to determine how much coverage to purchase, III recommends conducting a home inventory (http://www.allstate.com/mobile/digital-locker.aspx), writing down the estimated value of all the things that homeowners want to have protected.

III notes that the liability portion of a policy protects policyholders should they be sued for an injury that occurred while on their property. Liability limits typically begin at $100,000, but the III says most insurance agents recommend that their customers buy a minimum of $300,000 of liability coverage.

What is additional living expense coverage?

Whether it is due to work or an extended vacation, property owners often spend a considerable amount of time away from their homes in a given year. However, sometimes they have no choice in the matter. This makes Additional Living Expense (ALE) coverage worthy of consideration, as it pays for the costs of living away from one's residence should they be forced to leave due to an environmental disaster. A standard ALE provides for costs such as hotel bills, food and other expenses related to living arrangements. Generally, most ALE policies provide for 20 percent of a homeowners insurance policy, III indicates.

Should I buy additional insurance protection?

Some policyholders may live in an area that is at risk for environmental disasters that aren't covered by a standard home insurance policy. This may make additional coverage worthwhile, particularly flood insurance and earthquake insurance, III points out. Flood coverage is available through the Federal Emergency Management Agency's National Flood Insurance Program and earthquake insurance can usually be obtained through the same insurer that covers their residence.

Insurers often reward their customers for loyalty and for implementing strategies that reduce risk. Therefore, if consumers have been with one insurer for a prolonged period, or if they have installed burglar alarms and sprinkler systems, they may qualify for a reduced rate. Consumers may want to inquire about these and other discounts, III recommends.

*according to the Insurance Information Institute on February 16, 2012 http://www.allstate.com/insurance-industry-news/property-insurance-news/what-to-ask-when-looking-for-a-homeowners-insurance-policy-800725599.aspx Thu, 08 Mar 2012 12:43:37 http://www.allstate.com/insurance-industry-news/property-insurance-news/eighty-percent-of-americans-affected-by-recent-weather-disasters-800725444.aspx Thousands of Americans across the United States suffered significant property damage and personal losses over the course of last year as a number of unprecedented disasters struck different areas of the country. On top of Hurricane Irene that ravaged the Northeastern coast and the devastating tornado that hit Joplin, Missouri, Americans also experienced wildfires, earthquakes and significant flooding. In addition, according to a recent Environment America report*, Americans can expect to experience more intense weather going forward.

According to the study, four out of every five Americans currently live in areas impacted by federally declared weather-related disasters since 2006.

The damage caused by Hurricane Irene alone totaled $7.3 billion in damages and affected 13 states in its wake. In addition, 2011 saw at least 14 federal disasters across the United States, each causing upwards of $1 billion in damages and setting a new record. Millions of Americans lost their homes and belongings, signaling a need to pay attention to extreme weather patterns, analysts say.

"Millions of Americans have lived through extreme weather causing extremely big problems for our economy and our public safety," said Nathan Wilcox, Environment America's federal global warming program director. "Given that global warming will likely fuel even more extreme weather, we need to cut dangerous carbon pollution now."

Impacts of weather-related storms

The study results revealed that 242 million Americans were affected by weather disasters since 2006. This figure is expected to rise as storms have increasingly magnified in intensity and are expected to continue doing so. For example, the data showed the rainiest 1 percent of storms delivered 20 percent more rain during the latter half of the century than the first. During the same period, heat waves across the United States have also intensified.

While analysts cannot pinpoint the exact ramifications of changing weather patterns, experts say hot seasons are likely to become hotter and precipitation levels are expected to increase considerably.

"The bottom line is that extreme weather is happening, it is causing very serious problems, and global warming increases the likelihood that we'll see even more extreme weather in the future," Wilcox explained.

As a result, more homeowners may face a heightened risk of property damage from flooding and storms. For this reason, adults should make sure they understand what types of damage their homeowners insurance policy covers and whether they should purchase supplemental insurance. While standard policies cover the costs of theft, fire and some storm-related damage, certain types of catastrophes may not be covered. For example, individuals who live in areas that are prone to flooding should consider purchasing flood insurance, which is not provided in standard insurance policies.

*according to Environment America on February 16, 2012 http://www.allstate.com/insurance-industry-news/property-insurance-news/eighty-percent-of-americans-affected-by-recent-weather-disasters-800725444.aspx Thu, 08 Mar 2012 07:44:23 http://www.allstate.com/insurance-industry-news/property-insurance-news/some-experts-balk-at-down-payment-standard-800709900.aspx While people with money problems often don't have the credit they need to secure a mortgage, tight lending restrictions have made securing a prime interest rate loan difficult, even for borrowers who are creditworthy. If federal regulators establish a minimum down payment for securing a new mortgage, more worthy borrowers will be cut out of the process, according to the results of a recent study.

Six in 10 would be denied low-interest mortgages, report forecasts

The Center for Responsible Lending* recently released the results of their report, "Balancing Risk and Access: Underwriting Standards for Qualified Residential Mortgages." In it, researchers say that new down-payment standards being considered by lawmakers will prevent as many as 60 percent of creditworthy borrowers from either obtaining a loan or would force them into one that has a higher rate of interest.

The original regulatory proposal was that the down-payment should be at least 20 percent of the home's value, though some have suggested it to be 10 percent.

Health of housing market would erode further

While the CCL report concedes that establishing a minimum down-payment has the potential to lead to fewer mortgage defaults, it says the benefits would be outweighed by the costs, as more people would be discouraged from homeownership.

A minimum down payment would have a particularly adverse impact on African American and Hispanic communities. The report found that as many 75 percent of African Americans and 65 percent of Latinos would likely be shut out of the process based on their average annual income earnings.

Researchers came to these conclusions after analyzing mortgages between 2000 and 2008 and what would have happened to them had a minimum down-payment standard been in place at the time.

"Adding a down-payment threshold set by the federal government would do little to reduce defaults relative to the large number of creditworthy home buyers it would push from the market," researchers write. "These findings are particularly significant because the stalled housing market has been a key obstacle to economic recovery."

While the study's analysts indicated they were in favor of some of the more rigorous lending standards applied with the passage of the Dodd-Frank Act, they concluded adding a down-payment would ultimately do more harm than good.

*according to the Center for Responsible Lending on January 18, 2012 http://www.allstate.com/insurance-industry-news/property-insurance-news/some-experts-balk-at-down-payment-standard-800709900.aspx Thu, 16 Feb 2012 15:15:49 http://www.allstate.com/insurance-industry-news/property-insurance-news/check-your-homeowners-policy-before-serving-alcohol-to-guests-800703547.aspx Most homeowners are aware that their homeowners insurance policy will cover them if another person gets injured on their property. But did you know that if you provide alcohol to a guest who then unintentionally hurts someone else, you may be on the hook for the damages?

Social host liability is not an insurance policy most homeowners often think about, but when adults gather for parties and festivities, it's important to look into your current homeowners policy to find out what's covered, according to the Insurance Information Institute. Social host liability refers to the criminal and civil liability of a host who serves alcohol to guests, the III explains. Although the laws vary on a state-by-state basis, many injured parties have the legal right to sue a host who gave an individual alcohol if that party guest is involved in a drunk driving accident or other related scenario.

"Because you can be held legally responsible for your guests' actions after they leave your party, hosts need to be particularly careful," said III vice president Loretta Worters. "While a social host is not liable for injuries sustained by the drunken guest (as they are also negligent), the host can be held liable for third parties, and may even be liable for passengers of the guest who have been injured in their car."

Protect yourself and your assets

There are a number of steps you should take as a host to make sure your guests and your assets are well protected during a party. The first step is to contact your insurance agency and find out what type of coverage you have. Although some homeowners insurance policies may offer you some coverage, the amounts may be capped at a certain dollar figure, so it's important for you to determine if it's enough. Because state laws vary, the III also recommends educating yourself on your state's particular stance regarding social host liability. This may impact the type and amount of coverage you need.

In addition, it's also important to make sure your guests are well taken care of if you plan to serve alcohol at a function. For example, make sure you spot the signs of intoxication and avoid serving alcohol to those who have reached their limit. In addition, it can be helpful to have the number of a cab service or have designated drivers available in the event a guest is unable to drive home. For larger gatherings, the III also recommends hiring a bartender, who may be trained to recognize signs of intoxication. Lastly, consider hosting a party at a restaurant or other venue. This may limit the amount of social host liability you need to take on. http://www.allstate.com/insurance-industry-news/property-insurance-news/check-your-homeowners-policy-before-serving-alcohol-to-guests-800703547.aspx Wed, 08 Feb 2012 15:49:17 http://www.allstate.com/insurance-industry-news/property-insurance-news/failing-to-purchase-renters-insurance-may-jeopardize-your-assets-800692161.aspx Most Americans understand the need to purchase a homeowners insurance policy to protect assets, valuable family heirlooms, clothing and electronics in the event of a fire or other type of disaster. But few individuals adopt the same attitude when it comes to purchasing renter's insurance, putting them at risk of losing all their assets, and covering the cost of replacing them, should a disaster occur.

Buildings are not required to cover the replacement costs of tenants' items in the face of disaster and many renters may also be surprised to learn that if someone is injured in their apartment, they may be legally liable for the medical costs, according to the Business Insider.

Experts say that a basic renter's policy is an affordable way to protect yourself from liability should you cause a fire or other type of damage, the news source reports. This type of insurance would not only cover your losses, but the damages of other tenants in the building who have been affected by a disaster. Further, your policy should also cover the costs of a hotel or alternative living arrangements if a disaster occurs and you must vacate your apartment. Some policies also provide you with "off the premises" protection if your assets, such as a laptop computer, are stolen away from your home, the news source reports.

Separate coverage for valuables

Although liability insurance is an effective way to protect your assets, you should purchase a separate policy for valuables and antiques that have a high net worth, as a standard renter's policy may not provide sufficient coverage for this. For this reason, it's important to have the items appraised and possibly stored in a location other than your apartment.

"Policies have a maximum coverage limit for the combined value of all of your jewelry, and this limit might be only a fraction of the value of your items," the National Association of Insurance Commissioners told the news source.

It's always a good idea to keep a record of all your possessions, their worth and how much it would cost to replace them should a disaster ever destroy your home. http://www.allstate.com/insurance-industry-news/property-insurance-news/failing-to-purchase-renters-insurance-may-jeopardize-your-assets-800692161.aspx Wed, 25 Jan 2012 11:48:52 http://www.allstate.com/insurance-industry-news/property-insurance-news/report-shows-impact-of-2011-intense-weather-storms-on-us-800688012.aspx 2011 has been a rough year for millions of Americans nationwide who have been impacted by devastating floods, earthquakes, tornadoes, hurricanes and wildfires. On top of the emotional and physical damage national disasters can cause individuals, they also wreak financial havoc and leave many families without homes and necessities. A new report released by CoreLogic, Natural Hazard Risk Summary and Analysis, reveals the scope of damage this year's storms and catastrophes caused across the United States.

According to the analysis, the 2011 hurricane season was the most expensive the U.S. had seen since 2008, and the heavy flooding in metropolitan areas may prompt a re-evaluation of current flood policies. Confirmed tornadoes also totaled 336 across the U.S., making 2011 the most active tornado season since 1980. As a result of the widespread damage, many insurers are also being forced to reconsider raising premiums for property insurance coverage.

Damage from wildfires also broke new records in Texas and Oklahoma, and analysts predict the current droughts and drying conditions may spark an even higher number of wildfires in 2012. Flooding across the U.S. also reached new records, with the Mississippi River prompting a historic flood. It is estimated that flooding in the U.S. caused $10.67 billion in damages in 2011.

Lastly, earthquakes also struck the U.S. in 2011, the most notable hitting Virginia and reverberating through the eastern seaboard. The 5.8 magnitude earthquake caused visible damage to a number of national monuments, primarily the Washington Monument.

"Weather-wise, it has certainly proven to be a memorable year in the United States and around the world. In fact, the National Oceanic and Atmospheric Administration just released its total cost estimate of $52 billion and counting in damages resulting from natural disasters," said Dr. Howard Botts, CoreLogic Spatial Solutions executive vice president and director of database development. "Several major urban areas faced unexpected catastrophes in 2011, putting disaster readiness plans and emergency response teams to the test and causing severe damage in regions underprepared for unusual weather events. As a result, homeowners, insurers, government officials and even the news media have been forced to rethink the way they view, plan for and react to natural hazards."

Long-term Implications

As a result of the extensive damages caused by flooding, tornadoes and other disasters, many insurance companies are being forced to re-evaluate their current premium policies, after receiving record-breaking claims. Although damages from tornadoes, earthquakes, fires and other types of disasters are typically covered by standard homeowners insurance policies, some types of catastrophes, such as flooding, require a separate policy. Many homeowners were surprised to find that they were not covered following this years' intense flooding because they had not purchased a policy. Industry professionals say not enough homeowners have purchased the coverage, putting them at risk for future problems.

"People tend to underestimate the risk of flooding," said Insurance Information Institute senior vice president and consumer spokesperson Jeanne M. Salvatore. "But, in fact, 90 percent of all natural disasters in this country involve flooding. It is important to note that there is a 30-day waiting period for flood insurance to go into effect, so don't delay purchasing this important financial protection." http://www.allstate.com/insurance-industry-news/property-insurance-news/report-shows-impact-of-2011-intense-weather-storms-on-us-800688012.aspx Thu, 19 Jan 2012 12:29:49 http://www.allstate.com/insurance-industry-news/property-insurance-news/does-your-homeowners-policy-cover-winter-damage-to-your-home-800679673.aspx The winter season can take a heavy toll on your property and cause several problems that affect both the interior and exterior of your home. Some repairs and fixes may be minor while others caused by harsh weather can be more costly and time-consuming to resolve.

When it comes to repairing weather-related problems to your home, it's important to know what your standard homeowners insurance policy will cover and plan accordingly to prevent potential issues. If you are unaware of which types of disasters your policy covers, now may be the time to dust off your insurance packet and go through the documents. Don't hesitate to contact your insurer if you have questions or concerns. It's better to be prepared and informed than simply hopeful that a problem is covered. According to the Insurance Information Institute, your standard policy should cover a wide range of winter-related issues.

"Standard homeowners policies cover winter-related disasters such as burst pipes, ice dams, and wind damage caused by weight of ice or snow, as well as fire-related losses," said III senior vice president and consumer spokesperson Jeanne M. Salvatore. "Coverage for flooding is available from the National Flood Insurance Program and from some private insurance companies."

Take action now to avoid future problems

In addition to understanding your policy, go over the last time you took action in winter-proofing your home or worked on maintenance issues. There are a few things which can save you time and money in the long term if you take care of them before winter weather sets in. For example, cleaning out gutters, installing gutter guards and sealing cracks or holes in the exterior of your home can protect your property from water leakage through the walls and ceiling.

Keeping your home warm can prevent pipes from freezing and auditing your heating systems and furnace can also catch potential problems that may result in fires. This may also be a good time to check your pipes and the structure of your home to further prevent water damage and flooding. For some of these tasks, it may be in your best interest to hire a professional, but it will be worth it in the end to know your home is hazard-free during the long winter months. http://www.allstate.com/insurance-industry-news/property-insurance-news/does-your-homeowners-policy-cover-winter-damage-to-your-home-800679673.aspx Mon, 09 Jan 2012 13:39:33 http://www.allstate.com/insurance-industry-news/property-insurance-news/dont-underestimate-the-added-costs-of-purchasing-a-home-800653861.aspx The mortgage process can be long and expensive, so when it's all said and done and you're holding the keys to your new home, it's natural that a feeling of contentment will set in. And while you should be happy with your homeownership accomplishment, it's also important that you look at your next set of costs— added homeownership expenses.

When you're renting a property, it's easy to overlook the costs that you may not have had to pay for, ranging from property insurance and utilities to a furnace or washer and dryer. But when you own a home, there are several costs that you will take on to properly run and maintain your investment, and establishing a budget early on to cover these costs can help you avoid being forced to drain your savings later.

Air and heat costs

Installing central air conditioning, a furnace, or hot water heaters can be an expensive endeavor, but a necessary one. All Temp Heating and Air Conditioning sales manager Ned Charlton says a new central air unit starts around $3,000 and must be replaced every 12 years, according to the New York Times. A furnace runs roughly around $3,800 and carries a shelf life of roughly 18 years, he adds.

Hot water heaters, in contrast, begin around $1,200, Goode Plumbing's Michael Goode told the Times. The number of hot water heaters needed will vary depending on how many bathrooms are in the home.

Proper maintenance of these systems can help them live to their maximum capacity, so homeowners should read the ownership manuals thoroughly to learn how to care for them.

Roof

Many homeowners focus on what's in and around their home rather than the roof that's covering it. Keeping your home's roof maintained and replacing it every 25 years is crucial and can help you ward off other types of damage to your home that can result from a weak or water-damaged roof, the Times reports. The 25-year replacement threshold may vary by location, size and exposure to inclement weather. One related maintenance task homeowners should take on involves keeping their gutters clean and clear of debris. When leaves, twigs, dirt and other materials become clogged and trapped, they can trap moisture and lead to water damage and rotting.

Trash Pickup and Snow Removal

Many cities provide services that pick up your garbage or plow your streets during snow storms. But other areas may charge a fee to pick up your trash. And more often than not, it may also be your responsibility to pay for a snow removal service to clear sidewalks and driveways. Before you move into a new home, make sure you understand which responsibilities and tasks your town may impose on you. http://www.allstate.com/insurance-industry-news/property-insurance-news/dont-underestimate-the-added-costs-of-purchasing-a-home-800653861.aspx Thu, 01 Dec 2011 12:39:55 http://www.allstate.com/insurance-industry-news/property-insurance-news/storm-shelter-sales-surge-800613844.aspx Home improvement is something that never goes out of fashion, but as CNNMoney reports, 2011 was a banner year for home safety enhancements.

Storm shelters have been built at a prodigious rate, especially in the Midwest, according to the news source.

Dramatic upswing in sales

"We can't build fast enough to satisfy demand," said Joe Zinser, owner of Tornado and Storm Shelters.com in an interview with CNNMoney. In a typical year, Zinser said he sells approximately 300. Through nine months of 2011, he's sold twice what he normally does.

"If you order now, it will be January before you even get it in," he said.

Zinser's Texas-based website isn't the only one which has seen customer volume grow. In Arkansas, Robert Toll, co-owner of Arkansas Storm Shelters told CNNMoney that he's seen more business in 2011 than the previous seven years combined.

Things to consider before buying a storm shelter

It's been a particularly devastating year for environmental disasters, particularly when it comes to tornado activity. According to the National Weather Service, 1,500 tornadoes have been reported in 2011, well above the 10-year average of 1,300. What's worse, the rate of deaths resulting from these twisters is approximately 10 times higher than the average annual rate, according to Greg Carbin, a meteorologist at the NWS Storm Prediction Center.

While tornado season has ended, twisters can still strike at any time, even during hurricane season, which doesn't end until November 30. In fact, according to the National Weather Service, all hurricanes that make landfall produce at least one tornado, though it's usually short-lived.

With this in mind, Ernst Kiesling, a professor of civil engineering at Texas Tech University, told CNNMoney what homeowners should keep in mind if they're considering buying a storm shelter.

All shelters should carry a seal from the National Storm Shelter Association, as the organization tests shelters to make sure they're secure. In addition, Kiesling says homeowners should get experts' opinions about whether to install one above ground or below ground. Either way, Kiesling says it's important that the doors be capable of opening from the outside so rescuers can get in.
  http://www.allstate.com/insurance-industry-news/property-insurance-news/storm-shelter-sales-surge-800613844.aspx Fri, 07 Oct 2011 12:47:51 http://www.allstate.com/insurance-industry-news/property-insurance-news/dont-be-surprised-by-homeowners-insurance-800600906.aspx Sitting down at night with a of your homeowner's insurance policy may not be anyone's idea of fun, but the recent string of natural disasters may be prompting more homeowners to do so. Following the record floods, earthquakes and storms that swept over the United States this year, some homeowners were dismayed to find that their standard insurance package did not cover certain events or catastrophes they believed were included in their policy.

Standard policies typically cover damage due to fires, storms and other common occurrences. In addition, policies generally carry a built-in liability package as well, which protects you in the event that an individual sues for being injured on your property. However, these two components are the bread and butter of a standard package, and in most cases, homeowners must purchase supplemental insurance to cover events, such as floods and earthquakes, which may devastate their home, according to the Washington Post.

Many homeowners, however, were unaware of this until after these catastrophes passed and were left with the financial responsibility of making repairs to their homes. Robert Hartwig, president of the Insurance Information Institute, told the Associated Press that the sale of certain supplemental insurance packages often surges after catastrophic events.

"Nothing sells flood insurance like a flood," Hartwig told the AP. "It's always the case that we see a surge in flood insurance sales in the wake of a flood."

Plan ahead

Instead of waiting until a disaster occurs, sit down with your homeowner's insurance policy and read through it thoroughly, the Post suggests. Mark down any questions or uncertainties you have and contact your insurance provider. Understanding your policy in detail will educate you on what your agreement covers and whether it would be wise to purchase supplemental insurance.

You may also determine after speaking with your agent that other more advantageous policy options exist, so don't be shy about inquiring about other types of coverage, the Post reports. In addition, you may be able to purchase rider insurance, rather than taking out a supplemental policy. Because there are a number of different options, it's important to first determine how much insurance you need, find out what your existing policy covers and work with an agent to fill in the gaps.
  http://www.allstate.com/insurance-industry-news/property-insurance-news/dont-be-surprised-by-homeowners-insurance-800600906.aspx Wed, 21 Sep 2011 11:48:48 http://www.allstate.com/insurance-industry-news/property-insurance-news/does-your-home-insurance-policy-cover-natural-disasters-800595899.aspx The United States has seen more than its fair share of natural disasters this year, ranging from the deadly tornado that devastated Joplin, Mo., in May to Hurricane Irene that struck the eastern seaboard in August. Certain areas are naturally prone to different types of disasters, such as tornadoes and hurricanes, but when other catastrophes hit areas that are not accustomed to this type of activity, such as the earthquake that recently hit Virginia, the financial ramifications for homeowners can be disastrous if they are not properly insured.

Basic homeowner's insurance covers a multitude of disasters, ranging from fires, storm damage and hurricanes. However, you may be required to purchase additional insurance to cover certain events that are typically not included in a standard policy, such as flooding or earthquakes, according to the Associated Press.

"So far, 2011 has been a tough year for the property insurance industry due to the occurrence of multiple natural catastrophes—ranging from tornadoes in the southern U.S. in the spring, to massive flooding in the Midwest, to the recent earthquake on the East Coast, followed by Hurricane Irene—which have driven home the necessity among many U.S. consumers of having adequate homeowners insurance coverage," said J.D. Power and Associates senior director of insurance Jeremy Bowler.

A recent study conducted by J.D. Power and Associates reveals that many homeowners across the U.S. are not carrying sufficient coverage to meet their needs in the event of a disaster. For example, fewer than 10 percent of homeowners residing in the New England area or Mid-Atlantic states carry flood insurance, despite the frequent risk and occurrence of hurricanes and tropical storms. As a result, many who file claims following these disasters find their request denied.

Know your policy

Natural disasters can cause thousands of dollars in damage to your home, so now may be a good time to familiarize yourself with your policy. Determine which types of events are covered under your homeowner's insurance policy and speak to an agent about purchasing additional coverage to protect your assets in the event of an earthquake or other catastrophe. Depending on the insurer, you may be allowed to purchase additional insurance as a rider to your current policy or you may have to buy a supplemental policy.
  http://www.allstate.com/insurance-industry-news/property-insurance-news/does-your-home-insurance-policy-cover-natural-disasters-800595899.aspx Wed, 14 Sep 2011 12:54:23 http://www.allstate.com/insurance-industry-news/property-insurance-news/can-solar-save-the-real-estate-market-800586145.aspx Despite historic-low mortgage rates and home prices slashed by sellers nationwide, the real estate market continues to suffer, leaving many to question what it will take to help it improve. According to the National Bureau of Economic Research, the answer may lie in energy-efficient homes.

Solar panels improve property value

While inexpensive home prices make for a buyers' market, economists say this can sometimes be a turn-off for those looking to buy, as it suggests home values are decreasing and may fall even lower. But as the NBER found with its recent study, solar panels increased a home's value by nearly 5 percent. This substantiates the findings from a similar study, conducted by the U.S. Department of Energy, which found solar panels led to higher home prices.

"Our evidence suggests that similar to other home investments such as a new kitchen, solar installation bundles both investment value and consumption value," write the authors of the NBER study, Samuel Dastrup, Joshua Zivin, Dora Costa and Matthew Kahn.

Solar panels lead to home price premium

Researchers in the DOE study came to their conclusions after surveying California homes where photovoltaic (solar) systems were installed and compared them with non-solar properties. They found that homes with PV systems sold for a premium, averaging $17,000 more for a system with at least 3,100 watts.

"This is a sizable effect," said Ryan Wiser, who co-authored the DOE study. "This research might influence the decisions of homeowners considering installing a PV system, and of home buyers considering buying a home … Even new home builders that are contemplating PV as a component of their homes can benefit from this research."

Home prices plummet in second quarter

Meanwhile, as property values rise for those equipped with solar panels, home prices overall are declining, according to the National Association of Realtors. Between April and June, property values for single-family homes declined in 110 of the 151 areas surveyed compared to the same period in 2010. The average selling price for a single-family home was $171,900, down from $176,800 in last year's second quarter, or what amounts to a value decline of 3 percent.
  http://www.allstate.com/insurance-industry-news/property-insurance-news/can-solar-save-the-real-estate-market-800586145.aspx Tue, 30 Aug 2011 12:02:20 http://www.allstate.com/insurance-industry-news/property-insurance-news/short-sales-can-prove-too-challenging-for-some-800583201.aspx Homeowners who can no longer afford to pay for their mortgage are presented with a variety of options. But with property values down, some can't sell the home for enough money to pay off their loan. As a result, many people try to make a short sale in an effort to avoid foreclosure.

A short sale is where the mortgage company allows the homeowner to sell the property, knowing that the selling price will be less than what the homeowner actually owes. While this option can prove to be a worthwhile choice for some distressed homeowners, the process has proven to be a trying one for many, according to the Detroit Free Press. This includes short-sale buyers as well as sellers.

Short sale process can be arduous, time consuming

"I would never, ever look at a short sale," said Brian Pannecker of Shelby Township, Mich., in an interview with the paper. Pannecker recently tried to purchase a short-sale property from a bank, but his offer was rejected. "I would go right to a foreclosure, which I eventually did. It was much, much easier," he added.

Once the foreclosure papers were submitted, instead of pursuing a home, Pannecker said he purchased a condominium in Fort Myers. The whole process took less than six weeks to complete.

Those who have pursued the short sale process say home buyers and sellers are lucky if the procedure goes quickly. The process is so difficult because these homes may have more than one mortgage, each covered by insurance, according to Ellen Mahoney, who works at a loss mitigation company in Birmingham, Mich. The bank holding the first mortgage is often unaware of the second mortgage until much later, the paper reports. Because the insurer of the second mortgage also has to sign off on the deal before it goes through, the short sale process is often held up because one party rejects it. And if it does, the short-sale process must start over again.

Government has tried to streamline process

The federal government has tried to make the short-sale process easier through the Home Affordable Foreclosure Alternatives Program, but just 8,541 short sales have been conducted since its implementation in April 2010, reports The Detroit Free Press.

Another organization that's observed no material improvements since HAFA went into effect is the California Association of Realtors. According to a recent survey, 77 percent of California Realtors said short-sale transactions were "difficult" or "extremely difficult."

"Despite promises by lenders to improve their short-sale processes, clearly, they are not doing enough,” said Beth Peerce, CAR president. "Instead of helping struggling homeowners who need to sell and willing home buyers who want to buy, lenders have created man-made roadblocks that have caused real estate gridlock and hindered a desperately needed housing recovery."
  http://www.allstate.com/insurance-industry-news/property-insurance-news/short-sales-can-prove-too-challenging-for-some-800583201.aspx Thu, 25 Aug 2011 13:25:45 http://www.allstate.com/insurance-industry-news/property-insurance-news/tasks-for-a-landlords-move-in-checklist-800464898.aspx In addition to cleaning up a rental property, landlords are encouraged to make a move-in checklist. They should perform a number of tasks to ensure their unit is ready for tenants to move in, according to the San Francisco Chronicle.

Changing the locks on outside doors is also an important safety precaution which, in some areas, is mandated by law. San Francisco passed the McGoldrick Rekeying Legislation in 2007, which requires landlords to change the locks before new tenants take possession of the property, the source says.

Evaluate each room of the property, thoroughly checking the condition of floors, walls, doors, light fixtures and any appliances included in the unit. In addition to the landlord's independent evaluation, tenants should tour the property when they first move-in. The Chronicle recommends that the landlord and tenant compare their evaluations and discuss discrepancies.

If the property is located in an area that may be prone to pests such as mice, cockroaches and other insects, the landlord should have the facility exterminated before the new tenant moves in. Since some extermination practices require evacuation, according to the source, it may be easier to perform before anyone moves in.

Ensuring that a rental property is in an acceptable state on move-in day may be the first step in a positive tenant-landlord relationship.
  http://www.allstate.com/insurance-industry-news/property-insurance-news/tasks-for-a-landlords-move-in-checklist-800464898.aspx Wed, 16 Mar 2011 21:50:55 http://www.allstate.com/insurance-industry-news/property-insurance-news/tax-breaks-for-homeowners-800464897.aspx As tax time approaches, homeowners need to know what tax-saving benefits they may be eligible for. This tax season in particular, there are a number of homeowner deductions available, according to Accounting Today.

This tax season offers the last opportunity to claim the 10 percent first-time homebuyers and repeat homebuyers tax credits, which are worth up to $8,000 and $6,500 respectively. To be eligible, homeowners need to have purchased their home before October 1, 2010, the source says.

Homeowners can also exclude up to $250,000 on the sale of their homes if the house was their main residence for at least two of the five years before they sold it.

According to the source, the Internal Revenue Service is also allowing homeowners to deduct up to $1 million worth of mortgage interest paid as an itemized deduction.

Finally, for homeowners who installed energy-efficient fixtures and alternative-energy equipment, there are also 30 percent tax credits available.

Though there are a number of new tax breaks for the 2010 filing season, certain things are still ineligible for tax deductions, including homeowners insurance, according to Bankrate.com.  http://www.allstate.com/insurance-industry-news/property-insurance-news/tax-breaks-for-homeowners-800464897.aspx Wed, 16 Mar 2011 21:49:03 http://www.allstate.com/insurance-industry-news/property-insurance-news/new-york-city-council-approves-lien-plan-to-help-homeowners-800464896.aspx The New York City Council has recently approved a measure that will increase the lien threshold for unpaid utility bills, allowing more leeway for certain homeowners before the companies can sell a lien on their homes, according to the Wall Street Journal.

The Lien Sale Reform and Reauthorization Act, which was unanimously approved by the council, increased the threshold for unpaid sewer and water bills from $1,000 to $2,000. The bill will also cap the interest rates that debt servicing companies can charge. The legislation applies to owners of two and three-family homes.

The city is also expected to benefit from the implementation of the new act, since it sells the property liens to investors in order to generate revenue.

"This lien sale brings in millions of dollars every year for the city, and since we've been doing it, people have been paying their bills," Brooklyn city council member Dominic Recchia told WSJ.

A city finance official reportedly told the source that the sale brings in about $40 million each year. With the new law, that number could go even higher.
  http://www.allstate.com/insurance-industry-news/property-insurance-news/new-york-city-council-approves-lien-plan-to-help-homeowners-800464896.aspx Wed, 16 Mar 2011 21:47:28 http://www.allstate.com/insurance-industry-news/property-insurance-news/major-florida-insurance-bill-will-target-sinkhole-claims-800463791.aspx A new bill in the Florida legislature would make it more difficult for state residents to file sinkhole claims on their home insurance policy, as lawmakers say many people are seeking payment for damages that are not related to the actual sinkhole, reported the Florida Underwriter.

The number of sinkhole claims in Florida has tripled since 2006, according to a recent report from the Office of Insurance Regulation. The source said the frequency of claims has led some to believe that insurers need to change the way they handle sinkhole claims.

Legislation unveiled by state Senator Garrett Richter would require that a claim is filed within two years of the event that caused the damage. In addition, said the source, the proposal would change the damage covered by a sinkhole claim, allow insurers to apply a deductible to cover the cost of investigating the claim and would require homeowners to begin repairs within 90 days of the confirmation of a claim.

According to the Suncoast News, some Florida insurers are considering doing away with full coverage for sinkhole claims, meaning only a catastrophic ground collapse that left a home inhabitable would be covered.   http://www.allstate.com/insurance-industry-news/property-insurance-news/major-florida-insurance-bill-will-target-sinkhole-claims-800463791.aspx Tue, 15 Mar 2011 14:15:57 http://www.allstate.com/insurance-industry-news/property-insurance-news/fewer-missourians-purchasing-earthquake-insurance-800463780.aspx Fewer Missouri residents are buying earthquake insurance, even though most home insurance policies do not cover damages that may result from a quake, reported the St. Louis Post Dispatch.

About 62 percent of households in St. Louis County had earthquake insurance in 2009, down from 73 percent in 2002, according to the newspaper. In St. Charles County coverage has dropped from 77 to 66 percent during the same period.

The paper reminded readers of an 1811 earthquake that devastated the city New Madrid, causing widespread infrastructure damage and some deaths. While the source said the U.S. Geological Service reported there is only a 7 to 10 percent chance a massive earthquake will hit the area in the next 50 years, there is a 25 to 40 percent chance a smaller quake may occur.

State geologist Joe Gillman told the paper a strong earthquake could result in collapsed roadways, landslides and broken water lines.   http://www.allstate.com/insurance-industry-news/property-insurance-news/fewer-missourians-purchasing-earthquake-insurance-800463780.aspx Tue, 15 Mar 2011 14:11:27 http://www.allstate.com/insurance-industry-news/property-insurance-news/officials-urge-maine-residents-to-buy-flood-insurance-800455602.aspx March may bring the end of the winter season, but after record-breaking snowfall totals in many parts of New England, warming temperatures may bring heavy flooding to homeowners.

With this in mind, the Maine State Planning Office is reminding residents their properties may be at risk for experiencing flooding damage, particularly if their homes are located within a floodplain.

According to Sue Baker, of the Maine Floodplain Management System, March and April have historically been rife with instances of flooding. Despite this, Baker says approximately 75 percent of homes and businesses in the state's floodplains are not covered by flood insurance. To avoid costly expenses resulting from flood damage, the office recommends purchasing flood insurance now rather than later, as it takes 30 days for a policy to go into effect.

The Maine State Planning Office says the average annual flood insurance premium is $865. Bangor City Hall is hosting a workshop series March 30 through April 1 to better inform residents about the program.
  http://www.allstate.com/insurance-industry-news/property-insurance-news/officials-urge-maine-residents-to-buy-flood-insurance-800455602.aspx Thu, 10 Mar 2011 14:52:53 http://www.allstate.com/insurance-industry-news/property-insurance-news/home-sale-tips-for-the-current-market-800453278.aspx Homeowners looking to sell may need to take extra measures to help their home stand out, according to the Daily Journal.

Selling a home during the current recession can be a difficult endeavor, but homeowners who take certain extra measures may have a leg up on the competition, according to the Daily Journal.

Though some homeowners choose to try to sell independently, marketing and pricing assistance from a real estate agent may be your best bet to attract the right home buyer .

Homeowners should also clear out personal clutter and family photos before opening their homes to potential buyers, the source says. Those items may inhibit people from being able to envision themselves living in the space, a factor that is important to home buyers.

Professional home staging is also gaining popularity, according to the Philadelphia Inquirer. These services may even enable you to get more money for your home than originally expected.

Finally, when it comes to selling your home, the saying, "don't judge a book by its cover," doesn't apply, according to the Daily Journal. As much time as you spend cleaning up and making repairs on the inside of your home, you should ensure the outside appearance is equally appealing.

Following these steps may give homeowners the tools they need to sell in any market.
  http://www.allstate.com/insurance-industry-news/property-insurance-news/home-sale-tips-for-the-current-market-800453278.aspx Wed, 09 Mar 2011 17:13:08 http://www.allstate.com/insurance-industry-news/property-insurance-news/new-mexico-home-owners-may-receive-assistance-for-winter-related-damages-800453251.aspx In an effort to help local homeowners with damages stemming from the unusually cold winter weather that struck on a national scale, government officials in New Mexico have agreed to offer financial assistance to local homeowners, according to the Associated Press.

The state's Department of Finance and Administration's Local Government Division approved $1.1 million to pay for the damages, including burst pipes and water damages that occurred after February 1, the source said. The funds, which were obtained through a block grant from the U.S. Department of Housing and Urban Development, will finance repairs of up to $2,000 for eligible residents.

Applications are being processed by the local Council of Governments agencies for different regions throughout the state.

Though many locals may find the grants beneficial, some will not qualify to receive them. The AP reported applicants for the funds must meet a certain income limit, own their homes and not have coverage for the damages under homeowners' insurance.

New Mexico homes have been exposed to a host of environmental hazards. In addition to cold weather, a wildfire recently destroyed 15 homes, according to the Associated Press.  http://www.allstate.com/insurance-industry-news/property-insurance-news/new-mexico-home-owners-may-receive-assistance-for-winter-related-damages-800453251.aspx Wed, 09 Mar 2011 17:06:39 http://www.allstate.com/insurance-industry-news/property-insurance-news/california-offers-mortgage-assistance-to-struggling-homeowners-800453245.aspx Many homeowners in California have been struggling in the wake of the recession. During 2010, 44 percent of home sales in the state were foreclosures, according to RealtyTrac. California state officials may unroll a new program that offers up to 100,000 qualified California homeowners six months of mortgage assistance .

As part of the program, called Keep Your Home California, the state plans to make nearly $2 billion available for homeowners at risk of losing their property. The maximum one individual could potentially receive would be $50,000.

However, some are not enthusiastic about the program and believe the money could be better served for other issues facing the state, including the high rate of unemployment.

In response to those complaints, Diane Richardson of the California Housing Finance Agency told Fox News that while they acknowledge "the problem is bigger than a $2 billion problem," many California homeowners are in trouble and "helping 100,000 homeowners is not an insignificant number."
  http://www.allstate.com/insurance-industry-news/property-insurance-news/california-offers-mortgage-assistance-to-struggling-homeowners-800453245.aspx Wed, 09 Mar 2011 17:03:32 http://www.allstate.com/insurance-industry-news/property-insurance-news/trends-in-remodeling-point-to-kitchens-bathrooms-and-master-bedrooms-800453225.aspx With the current state of the economy and the difficulty of selling a house , many homeowners are staying put, but making inexpensive changes to their homes so they continue to reflect their lifestyles, according to Michigan Live. 

It is also becoming increasingly important to homeowners that, though they would like high quality home updates, they steer clear of very expensive materials, the source says. Instead homeowners are selecting high value products, which they most frequently use to update their kitchens, bathrooms and bedrooms.

The most common trends in kitchen remodeling are redoing cabinetry, improving layout and upgrading to granite counter tops, the source said. Bathroom remodeling generally entails new fixtures and improved layout but is also increasingly focused on aging-in-place design, hinting that people are intending to live in their homes longer.

Finally, many homeowners are also working towards improving their master bedroom suites, especially for empty nesters who have extra rooms that can be put together to expand the space. 

The increase in remodeling projects may have contributed to Home Depot's record fourth-quarter profits, which were up 72 percent, according to the Wall Street Journal.   http://www.allstate.com/insurance-industry-news/property-insurance-news/trends-in-remodeling-point-to-kitchens-bathrooms-and-master-bedrooms-800453225.aspx Wed, 09 Mar 2011 17:00:07 http://www.allstate.com/insurance-industry-news/property-insurance-news/benefits-of-downsizing-for-empty-nesters-800453211.aspx As children move out of the family home, parents may realize their home no longer suits their lifestyle. Though it can be hard to leave a home you have grown to love, the Star Tribune has listed a number of benefits of downsizing, in addition to potentially smaller mortgage payments.

Downsizing may help empty nesters avoid inconvenience, the Tribune says. Homes may no longer appropriately fit their family structure and may result in useless expenses such as paying "to heat and maintain rooms they rarely use," according to the source.

They may also be able to accommodate changing health concerns, since they may have a home that is not well-suited for developing health problem, such as physical ails that make climbing staircases difficult.

Embracing a newfound simplicity can also be a benefit of moving to a smaller home, according to the source. A new space may offer cleanliness, safety and easy maintenance.

Though downsizing leads to cutting some costs, it could also lead to new expenses such as maintenance fees for condos, according to CNNMoney. These costs should be considered before making the big move.   http://www.allstate.com/insurance-industry-news/property-insurance-news/benefits-of-downsizing-for-empty-nesters-800453211.aspx Wed, 09 Mar 2011 16:56:52 http://www.allstate.com/insurance-industry-news/property-insurance-news/rising-gas-prices-affecting-homeowners-800453193.aspx The increasing price of gasoline, widely attributed to the recent wave of civil unrest in countries with oil reserves, may also be hindering some homeowners' ability to pay their mortgages, according to the Wall Street Journal.

Gas prices are becoming a major problem in suburbs of major cities, where homeowners moved at the height of the housing market with the intent of commuting to work in the city, the source says.

Due to rising gas prices, which have reached $3.80 or greater in California and some other areas as of March 7, according to Gas Buddy, the long commute to work is becoming difficult to manage.

The WSJ specifically focused on Homestead, Florida, a Miami exurb where many residents have a nearly 30-mile commute to the city for work. The area, according to the Journal, has skyrocketing delinquency and foreclosure rates, with 44 percent of all mortgages in two zip codes in the area three months or more behind as of November.

The information suggests that homeowners may want to consider the price of gas when planning a move to a new city, especially if they plan to frequently commute.   http://www.allstate.com/insurance-industry-news/property-insurance-news/rising-gas-prices-affecting-homeowners-800453193.aspx Wed, 09 Mar 2011 16:54:38 http://www.allstate.com/insurance-industry-news/property-insurance-news/many-east-coast-beaches-eroding-by-16-feet-per-year-800449086.aspx Hundreds of miles of beaches on the New England and mid-Atlantic coastlines are eroding, reported the Associated Press, a problem that may lower property values for nearby homes in those regions. 

Research from the U.S. Geographical Survey found that 68 percent of the beaches studied have eroded over the last 150 years, usually at a rate of 1.6 feet a year. The news agency said the worst erosion has occurred between New York's Long Island and the Virginia-North Carolina border, while New England's rocky coasts have receded at a slower rate.

On a positive note, the report said erosion has slowed over the past 25 to 30 years, dropping the number of eroded beaches to 60 percent. While storms and rising sea levels can affect beach levels, the source said the improvement is likely due to recent beach recovery initiatives. Cheryl Hapke, the lead author of the study, told WCVB News that the results of the survey can help with coastal management decisions and provide a solid foundation for future beach studies.

Further erosion may threaten beach-front homes in many areas, a problem that can lead to higher homeowners insurance rates for those property owners. For instance, WBZ Boston reported that years of erosion caused a high tide to damage the foundation of a beach house in Newburyport, Massachusetts.   http://www.allstate.com/insurance-industry-news/property-insurance-news/many-east-coast-beaches-eroding-by-16-feet-per-year-800449086.aspx Tue, 08 Mar 2011 10:04:29 http://www.allstate.com/insurance-industry-news/property-insurance-news/force-place-insurance-is-financial-burden-for-struggling-homeowners-800449058.aspx Property owners should be adamant about keeping their homeowners insurance payments steady, as the Florida Times-Union reports that mortgage holders may impose expensive force-place insurance on those who lapse on a payment or let their policy expire.

Mortgage holders typically take out force-place insurance to protect their investment if an owners does not have a valid home insurance policy. Mortgage companies are allowed to activate the insurance without the loan holders consent, reported the newspaper, often hitting them with expensive premiums by surprise.
"This is a big scam," April Charney, an attorney with Jacksonville Legal Aid, told the paper. Charney said mortgage companies often add policies when the foreclosure process on a property begins, and sometimes even cut deals with sister companies or subsidiaries to share in the proceeds.

"It's in every case. You stop paying, and they force-place insurance," she said.

Force-place insurance can be particularly easy for a mortgage servicer to abuse if it owns the insurance company from which it is taking out a policy, reported Reuters. Moreover, many companies may back-date insurance, essentially meaning it will buy insurance against an event that never actually occurred.   http://www.allstate.com/insurance-industry-news/property-insurance-news/force-place-insurance-is-financial-burden-for-struggling-homeowners-800449058.aspx Tue, 08 Mar 2011 09:58:54 http://www.allstate.com/insurance-industry-news/property-insurance-news/insurance-coverage-for-engagement-rings-an-important-step-800335009.aspx It can be easy in the fresh afterglow of getting engaged to forget a number of things, including one's own name and how to tie a pair of shoes. However, experts at TheKnot.com say it's important to remember insurance coverage for valuable engagement rings.

Fortunately for newly engaged couples, the process generally isn't difficult, TheKnot.com says. Most of the time, a rider can be purchased for a home insurance or renters insurance policy, which will add a small amount to a monthly bill in exchange for covering the ring if lost or stolen.

However, if for some reason this isn’t possible, TheKnot.com says couples can turn to a specialty insurer for a stand-alone jewelry insurance policy. In either case, policyholders should keep receipts and be prepared to have the ring appraised.

While a lost engagement ring can never be truly replaced, ring insurance can help ease the financial pain, experts say. http://www.allstate.com/insurance-industry-news/property-insurance-news/insurance-coverage-for-engagement-rings-an-important-step-800335009.aspx Tue, 11 Jan 2011 09:20:14 http://www.allstate.com/insurance-industry-news/property-insurance-news/new-years-eve-ball-ripped-off-800300259.aspx A 10-foot ball made of welded steel meant to simulate the famous Times Square icon was stolen from behind a Broad Street bar in Augusta, Georgia. The theft may be another in a series of crimes targeting items to be sold for scrap in the area, according to local CBS affiliate WRDW.

The owner of the bar, Mike Guthrie, told the TV station New Year's Eve celebrations will need a new focus following the theft.

"We thought we had it mastered this year with this all-steel ball, structure wise, now that it's gone, maybe come up with something else, maybe we'll drop a big golf ball or something," Guthrie said.

The news channel also noted authorities had recently arrested three men suspected of trying to sell stolen trailers at nearby scrapyards.

Those planning their own New Year's Eve parties probably won't have to worry about this type of theft, but cities and towns considering larger celebrations should be on guard.
  http://www.allstate.com/insurance-industry-news/property-insurance-news/new-years-eve-ball-ripped-off-800300259.aspx Wed, 08 Dec 2010 14:07:18 http://www.allstate.com/insurance-industry-news/property-insurance-news/my-basement-floods-when-it-rains-do-i-need-flood-insurance-800327209.aspx You come home after a thunderstorm to find four inches of water in your basement. When it rains, you find yourself running downstairs every few minutes to see if the flooding has started yet. Sound familiar?

If your basement has the bad habit of flooding, it makes sense to consider flood insurance. Here's why:

Homeowners policies don't usually cover flooding, unless it was caused by a burst water line.

Even a few hours of floodwater can ruin thousands of dollars' worth of appliances, furniture, electronics, and other valuable stuff.

Flood insurance costs less than you might think.

There are two parts to flood insurance. Building coverage protects the structure and essential equipment (like staircases and water heaters), and contents coverage protects the contents (like drywall and furnishings). Whether flood insurance is right for you could depend on what's in your basement. If it's a finished living space, like a bedroom or entertainment room, flood insurance is likely to be a good investment.

Property owners in high-risk areas have mandatory flood insurance issued by the National Flood Insurance Program. That same insurance is available to anyone, no matter where they live. It's a good idea, too, considering that 25 percent of all flood insurance claims come from outside those flood-prone areas.

The NFIP's insurance is available through many insurers, including Allstate, and your policy will cost the same no matter which insurer you choose. The good news is, your premiums will be lower because of living in a lower risk area. Learn more about getting flood insurance through Allstate.

Flood insurance is one way to protect your basement. How about taking some precautions to prevent flooding, too? For example:

Have your gutters and downspouts cleaned regularly.

Make sure downspouts aren't pouring water right next to the foundation of the house.

Check that your property is graded correctly. (Your land should slope away from the house slightly.)

Install a sump pump or backwater valve.

Also, take a look at what's in your basement. If you can, raise your belongings up several inches on pallets or crates. Don't put valuable rugs on the floor if you can avoid it. Use a riser for your washing machine, if possible.

Overall, there's a lot you can do to prevent flooding, and limit the damage costs when it does happen.  http://www.allstate.com/insurance-industry-news/property-insurance-news/my-basement-floods-when-it-rains-do-i-need-flood-insurance-800327209.aspx Thu, 06 May 2010 10:58:07