Higher insurance and reinsurance prices may be linked to new RMS catastrophe model

State Farm customers in northeastern Louisiana may soon be paying more for their homeowners insurance as the company looks to state regulators for approval of a rate increase of 19.5%. The insurer claims that higher rates are the result of recent fires, tornados and other natural disasters occurring in the state. Insurance Commissioner Jim Donelon says that he has never before experienced such a steep increase in insurance rates, especially in the northern part of the states that are not often subject to such rate increases. The rate at which…

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Is your dog’s breed to aggressive to be covered by your homeowners’ insurance?

For many years, dog owners and insurance companies have been battling it out over claims because some insurers maintain a restricted list of breeds that will not be covered by homeowners’ insurance due to a perception of their tendencies toward aggression. Since it is technically possible for a dog of any breed to bite hard enough to lead to an injury, legislation in many states includes a specific definition of what constitutes a dangerous dog, and regulations for maintaining that animal. This has made it possible for a dog to…

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Homeowners may see less coverage following changes made by State Farm

State Farm has announced that it will be making changes to the deductibles in its homeowner insurance, and consumer advocates are concerned that this will decrease the amount that will be paid on consumers’ claims. The insurer also released a notice to insurance regulators in Texas, stating its intentions to increase homeowner insurance rates, starting in October, by an average of 9.6 percent. State farm is the largest insurer in the state. It also announced that, starting in December, it would be moving all of its current customers over to…

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Is renter’s insurance necessary or a luxury for students living away from home?

The back-to-school season is upon us and college students across the country are moving into their new homes for the coming school year; a process that involves expensive personal possessions, such as computers, electronics, bicycles, clothing, and other personal items that would be costly to replace though they are highly prone to damage or theft. While some students already have protection through their parents’ homeowners insurance, many policies will not cover students who aren’t living on campus. That said, many tenants fail to realize that their property is not covered…

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Coastal areas will be seeing rate increases by the end of the year

Homeowner’s insurance in South Carolina is expected to rise as the state’s insurers prepare for a busy hurricane season. There is no way to tell whether the 18 hurricanes predicted to form this season will actually reach land, but insurers aren’t taking any chances. Natural disasters in the Southern U.S. have already wrought a terrible toll on the industry, and the year is only half over. Many of the state’s property insurers are now proposing rate increases to help mitigate the cost of potential damage from this year’s hurricanes. The…

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Animal liability takes a bite out of the insurance industry

Almost one thousand Americans are treated in emergency rooms every day as a result of dog bites. Estimates show that in 2009 insurance companies paid out a total of 412 million dollars in claims for dog bites. In a survey recently conducted by State Farm, they reveal the states with the highest amount of claims for dog bites. Topping the list was California. According to the State Farm survey, California rated the highest in dog bite claims filed. Last year, California had 369 claims filed on insurance because of dog…

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