Force-placed coverage causes probe of New York insurance companies

A closer look into forced placed insurance practices The state insurance regulator in New York is currently performing an investigation as to whether or not the rates for force-placed insurance that are being charged by companies should be deemed excessive, and is requesting data from insurers such as Assurant Inc. The New York Department of Financial Services released a statement that said that it is trying to obtain basis for “consistently high profits” that are occurring at the investors’ and homeowners’ expense. It is also requiring that insurers such as…

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State Farm sees a drop in auto insu...
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Fannie Mae takes charge on forced-place insurance, announces changing of rules

The issue of force-placed insurance has been thrust into the limelight this week by the Federal National Mortgage Association, more commonly known as Fannie Mae. Forced-placed insurance is a practice that some insurance companies and banks utilize to force homeowners to purchase expensive insurance policies. In New York, insurance regulators have been investigating the issue in the local industry. Spurred by state, federal and consumer attention, Fannie Mae has announced that it will be changing the rules concerning forced-placed insurance. For one, the government-sponsored enterprise will be overseeing forced-placed policies…

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Finding the best homeowners’ insurance rates for 2012 coverage

Following a year of record breaking disasters, many homeowners are wondering how they can find lower and more affordable rates for their insurance policies. Even those with experience in shopping around for the best price for a policy are discovering that the process is becoming much more complex. Many insurance companies have now implemented a number of different types of exemptions for various forms of damage from storms and other natural events. Some are also assigning lower values to a home’s replacement cost. According to the Consumer Federation of America’s…

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Nationwide average for homeowners’ insurance premiums increased in all but two states

According to the most recent HomeInsurance.com RateReport, which shows the average premiums across all of the states in the country over a 12 month period (as of September), all but two states experienced an increase in homeowners’ insurance premiums. The two states that saw a decrease in premiums were Washington D.C. and Vermont. All of the other states in the country saw their average homeowners’ premiums increase from 0.1 percent to 5.8 percent more than what policyholders had been paying during the year beforehand. The average premiums that were used…

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U.S. nationwide survey shows homeowners more concerned about housing market value than natural disasters

An American survey of homeowners across the country which was completed in October 2011 showed that 58 percent of respondents feel that the largest threat to homeownership is the housing market value. This figure was larger than the combined risk perceived about the impact of hurricane (8 percent), tornado (9 percent) and fire (15 percent). When asked whether they felt that homeownership is now the American Dream or the American Nightmare, a shocking 48 percent felt that it was a Nightmare, while only 52 percent clung to the belief that…

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Report calls for more action from consumers to help mitigate the costs of natural disasters

This year has been host to a large number of natural disasters that have born a heavy price tag to the insurance industry. While natural disasters may not be happening more frequently, they are certainly happening in areas of dense population, making the damage they cause astronomical. Consumers often look to the insurance industry to provide protections against natural disasters, but the industry can only do so much. A new report from the University of Pennsylvania’s Wharton School suggests that government policy, as well as consumer initiative, may significantly reduce…

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Rates for homeowners insurance are on the rise

Homeowners insurance rates are expected to experience a notable increase following a year that has seen significant severe thunderstorms and tornadoes, and where forecasts predict that the 2011 hurricane season will be more active than the average. In fact, in areas where the storms have been the most damaging, policyholders may find themselves paying up to 20 percent more to their insurers. Though some homeowners are counting on a lower increase because the value of their homes have decreased, it is important to recognize that it is not the market…

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