Homeowner’s Insurance Risk

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by Nicholas Rogers July 25, 2010 in Home Insurance Topics

This article describes different risks that homeowner policyholders face

After Katrina, many homeowners who had not purchased federal flood insurance tried to recover under their homeowners insurance policies for flood claims that were specifically excluded. Consider State Farm’s account of its response to Katrina, widely considered to be the largest deployment of resources.

Claims

State Farm assigned more than 5,600 employees and contract adjusters to the Gulf Coast after the hurricane, and its call centers logged 1.1 million calls from customers. It processed more than 295,000 property claims and 99,000 auto claims, for which it paid $3.6 billion. Although its conclusions were contested by policyholder advocates, a study of State Farm’s response by the Mississippi Department of Insurance found that the company “did make errors”, but it found no violations of the unfair claim practices laws. As insu

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Your Step-by-Step Guide to Finding A Great Mechanic (and/or Love)

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by Brandon Nguyen July 22, 2010 in Insurance Auto Articles

So your car’s pinging. Whirring. Making a whoosh-clackety noise that has you concerned. But after hearing countless horror stories from friends who’ve been taken to the cleaners by their mechanics, you’re also understandably concerned about finding an honest and reliable shop.

Fortunately, the odds are mostly in your favor. As of June 2010, there were 211,793 auto mechanic establishments in the U.S. You just need one (albeit a good one). So where to begin?

Here’s a step-by-step guide to finding repair shop love.

  1. Play the field. It’s a good idea to shop around before you have an emergency. An easy way to do this is to have regular maintenance performed at local repair shops. If a shop does a great job on an oil or tire change, chances are they’ll perform just as well on larger, more complex jobs. So do a little “dating” and remember what they say about first impressions. If you need a mechanic NOW, however, skip to step 2.
  2. Get set up. Ask friends and people you trust if they can recommend a good repair shop. As with most things, word of mouth is your best bet in finding a reliable auto tech. But if everyone you know happens to drive miraculously trouble-free vehicles, proceed to step 3.
  3. Go online. Search is magic. There are a number of online engines that can help you find a list of local shops. National Public Radio’s Car Talk offers a locator that helps you find local shops that meet your criteria. Just click on a shop name to see customer survey results and reviewer comments. You can also find mechanic reviews at MechanicRatingz. Once you have a few shops to consider, move on to step 4.
  4. Know your stuff. Researching mechanics online isn’t the most fun you can have in an afternoon (we know), but it could pay off. Check to see if a shop’s mechanics are registered with the National Institute of Automotive Service Excellence (ASE). Becoming ASE-certified involves a lot of experience and testing. The tests are notoriously difficult and staying certified requires a sizeable amount of industry know-how and expertise. (Tip: look for actual certificates, not just logos or patches.) You can also check to see if a repair shop’s registered with the Automotive Service Association. While these affiliations don’t necessarily guarantee quality, they’re a darn good place to start.
  5. Get the dirt. Check with the Better Business Bureau to see if the shop you’re considering has had complaints. Because we love our cars, and because a bad experience with a mechanic can be infuriating and expensive, people tend to follow through on complaints of this nature more so than with say, an unpleasant exchange at the downtown coffee shop. Double check — if nothing pops up, that’s a good sign.
  6. Trust your instincts. True, you’re not a mechanic, but you probably know more than you think. Look around. Is the place neat and ordered or does it look like your teenage brother’s bedroom? Is the staff organized and helpful or about as friendly as a Parisian waiter? Good repair shops know that customer recommendations are key to a successful business, and they work hard to present a clean, friendly, and professional environment in which to keep customers happy.
  7. Drive happily ever after. Once you’ve found a reliable auto repair shop and a good mechanic, all that’s left is the honeymoon (so to speak). Be sure to keep their contact info handy for the next time and if you’ve had a really great experience, don’t be shy. Sites like MechanicRatingz make it easy to give feedback. And unlike love, when you find a good mechanic, it is okay to share.

Are you a mechanic? Know of a great auto repair shop? We’d love to hear your comments. Send us an email at communications@esurance.com.

Related links:
Auto Education
Super Mechanics

Insurers expose 2,300 fraudulent claims a week

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by Danielle Bailey July 22, 2010 in Insurance News

Insurers are currently exposing over 2,300 fraudulent claims every week, according to new data from the Association of British Insurers (ABI).

The figure has risen from a weekly total of 2,000 dishonest claims in 2009, worth over £16 million.

Last year, 122,000 fraudulent insurance claims were uncovered, up 14% on a year earlier.

By value, 4% of all claims were fraudulent in 2009, with motor insurance claims highest in value (£410 million), although the most common frauds involved home insurance (62,000 bogus or exaggerated claims detected).

With liability claims, many of the 8,500 cases exposed involved bogus personal injuries, such as those of a young woman who claimed to have tripped over a loose pavement but had actually injured herself by jumping down a flight of stairs when fleeing from security guards.

ABI director general, Nick Starling, says: “Our honest customers rightly object to having to pay higher premiums to subsidise the fraudulent minority, which is why insurers continue to up their game in the war on the cheats.”

He adds: “Whether claiming against a third party for bogus personal injury or on their own insurance, fraudsters are more likely than ever to get caught, leading to more expensive and harder to obtain insurance and credit, and the possibility of a criminal record.”

 

Related stories to Insurers expose 2,300 fraudulent claims a week:

  • Aon warns of fraudulent claims danger
  • Car insurance fraud worth £5m per week
  • Aviva pulls cover on insurance fraudsters
  • ‘Crash for cash’ fraud increasing
  • ABI state insurance fraud at record levels
  • ABI: Insurance fraud up 30% since 2007
  • Recession blows wind into sails of maritime insurance fraud
  • Motorists tempted to crash for cash
  • Fraudulent insurance claims rise
  • Fightback against motor insurance fraud continues

Homeowners on holiday hide valuables in unusual places

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by Tiffany Parker July 22, 2010 in Insurance News

A number of homeowners believe extreme decoys and strange hiding places are the way to win against thieves, however specialist home insurance provider Hiscox warns that the traditional basics of home security should not be forgotten as the summer peak season for burglaries approaches.

Hiscox has seen some householders turn their homes into hidden treasure hunts to try and outsmart burglars such as burying valuables in the garden, sewing jewellery into curtains and using decoy doors . Recent examples of unusual security techniques identified by the insurer include leaving fake’ jewellery lying around the home to trick thieves, hanging out washing so the house appears occupied and making the front door look scruffy to try and disguise the value of the content inside.

Andrew Cheney, senior risk and valuation advisor at Hiscox UK, who in his role visits hundreds of homes every year, said: “Homeowners can be quite creative in their attempts at securing their valuables. Read more…