Tag home insurance

Information courtesy of Selective Insurance, photos courtesy of AL.com
 

President Obama Signs the Homeowner Flood Insurance Affordability Act of 2014 

On Friday, March 21st, HR3370, also known as the Homeowner Flood Insurance Affordability Act of 2014 was signed and approved by President Obama. This bill introduces changes to the NFIP (National Flood Insurance Program) that would address some of the unintended consequences resulting from the implementation of the Biggert-Waters Reform Act of 2012 (BW12).

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Some of the major elements that Homeowner Flood Insurance Affordability Act of 2014 looks to address include:

• Preventing FEMA from raising average rates above 15% for a class of properties and above 18% on individual policies per year.

• Rescinding provisions in BW12 requiring policyholders to pay the full-risk rate for Pre-FIRM properties at the time of purchase.

• Rescinding provisions in BW12 requiring Pre-FIRM property owners to pay the full-risk rate if they voluntarily purchase a new policy.

• Rescinding provisions in BW12 terminating grandfathering.

• Requiring FEMA to refund policyholders for ‘overpaid’ premiums.

 

At this time, FEMA and the NFIP are actively working to analyze the changes this new law brings and determine how each element will be implemented, however industry analysts believe it may take 12-18 months to implement those changes and to begin issuing any refund checks.

SSIA will continue to monitor updates to this program, and share them here and on our social media sites.

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It’s obvious that a budget or a debt snowball need to be checked frequently to make sure that you’re sticking to them. If stuff like that gets away from you, it can turn bad quickly. Make sure to refresh yourself on these four insurances:

1. Life Insurance
If you die with no life insurance, your family will most likely be stuck in a dire situation and have to make drastic changes, all the while grieving you. You should have eight to 10 times your yearly income set aside in a term life policy. That way, if you pass on, your family can invest the money and, at a 10% return, replace your income.

This is something that shifts more often than you think. Every time you get a raise, have a child, buy a house or have some other significant life event happen, you need to make sure that you have enough insurance to cover it. Don’t take this lightly; one-third of adults in the United States carry no life insurance, and more than half a million in the prime of their lives die prematurely each year. Ask any ECI Agent about life insurance quotes.

 

2. Long-Term Disability Insurance
If you die, your life insurance will take care of your family. But if you are permanently disabled, you will be unable to produce an income and yet still need to be cared for. In that case, you need long-term disability insurance that will provide about 70% of your income for an extended time period, usually until death or age 65.

You can usually get it the cheapest through your workplace. And you need to. About 49 Americans become disabled every minute and three in 10 in the workforce today will become disabled before they retire. With the average monthly benefit from Social Security disability being $1,004 a month, you can’t afford to not have this type of insurance. Find out more about disability coverage.

In the past hour, almost 3,000 Americans became disabled. That’s 49 every 60 seconds.

 

3. Long-Term Care Insurance
This isn’t necessary until you hit age 60. After that it becomes vital. A nursing home can cost about $50,000 a year per person. If you and your spouse go into an assisted living facility with $300,000 in life savings, you’ll have it used up so fast you won’t believe it.

If you are approaching 60, start looking at long-term care insurance. Don’t buy it before then (it’s not necessary enough at that point) or after (it can get too expensive).

 

4. Homeowner’s/Renter’s Insurance
You should never own or rent property without having yourself covered in the case of a fire, flood, burglary or some other disaster. Renter’s insurance is relatively cheap to get, so make sure to have some.

When buying homeowner’s insurance, get one that has guaranteed replacement costs. If something happens to your home and you have a policy without guaranteed replacement costs, you will only be covered for the value of your home at the time you took out the policy. That’s bad news if your house has increased in value. Make sure to have your full emergency fund in place so you can take the lower premium and higher deductible on it.

 

Contact the office about attaining a quote for any of the above at admin@sshoresins.com or 251-923-4463.
(Source: DaveRamsey.com)

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