Condo Insurance Protects Home from Costly Damages

home owners insurance

Your condo is an important investment and having the proper protection is a priority. While condos are not considered traditional homes, they do require insurance protection but more with more specific coverage. The reason condo insurance requires a more specific policy is because many condo-building owners have master insurance policies that protect the building as whole, but not individual units. Condo insurance quotes would be more directed towards content and liability protection than it would structural damage protection.

A recent article posted by InsuranceAgents.com offers insight into condo insurance providers and how homeowners insurance agents have the knowledge they need to guide you through any questions, concerns or issues that could arise with your policy. “If you want to protect your condo, make sure to ask questions regarding how condo insurance differs, and what it covers. Homeowners insurance agents who specialize in condo insurance are an excellent resource. Many of them are also very aware of the many issues that may occur regarding your condo association, rulings, and preferred insurance vendors,” states the article. In order to find the homeowners insurance company that will give you the insurance protection you need at an affordable price, consumers shopping for condo insurance are recommended to compare quotes online. They can compare policies and prices from several insurance providers at once, its not only convenient, but saves you money in the process.

Our Opinion: Insurance chaos

home owners insurance

As Ida moved along in the Gulf yesterday, being reduced from possible hurricane status to a tropical storm or maybe just a big storm, Florida's run of political as well as climatological good luck had apparently, mercifully, been extended.

In terms of property insurance, homeowners have been living in something of a fool's paradise in Florida for several years. There's little evidence that, if a major hurricane strikes, property owners would be sufficiently covered, given the anticipated withdrawal of State Farm from the market — thanks to a political showdown two years ago with Gov. Charlie Crist, who said the insurance giant's rate request was unreasonable.

But those 770,000 customers are not necessarily ensured of coverage in a market where incoming companies haven't shown much interest in mom-and-pop properties. These largely unregulated "surplus lines" specialize in high-risk, commercial, waterfront properties instead.

About 40 percent of the companies offering insurance have been experiencing underwriting losses — paying out more than they collect in premiums. Though that is improving a little given a couple of hurricane-free years, other companies are reluctant to come into Florida unless they can charge actuarially sound rates.

Meanwhile, all property owners — including businesses, religious institutions, auto insurance policy holders, local governments, school boards and even nonprofits like the United Way — are paying premiums that would help cover losses on high-risk coastal properties through a state catastrophe fund.

While some efforts have been made to require coastal property owners to "harden" their properties, success has been minimal at best. There should be no choice for coastal property owners: They should participate in storm-mitigation programs (My Safe Florida Home includes programs for low-income folks, too) or go without insurance.

As environmental groups remind us, building codes on coastal properties, setback lines and so forth, are inadequately enforced, meaning more subsidizing by noncoastal property owners.

So far, nothing is in place to begin to level the playing field.

Nor is there much stability in our vulnerable coastal state when even the so-called "insurer of last resort," Citizens Property Insurance Corp., is perpetually underfunded. If a catastrophic storm hits, depending on how high the population area it strikes, Florida's economy would be devastated.

Some property insurance reform efforts were adopted last year in the Legislature — but then vetoed by Gov. Charlie Crist, who didn't want to rock any voter's boat with reality insurance premiums on coastal properties. Lawmakers do need to take up that Consumer Choice Act again this year, with the goal of bringing competition into the state instead of scaring it off.

Florida needs to keep Citizens from expanding, especially into the commercial markets; it needs to enforce hardening; it needs to establish a firm timeline for getting out of the subsidizing of high-risk coastal properties by low-risk property owners, be they individuals or schools, churches, nonprofits or small businesses.

"We think Florida's experiment in the insurance market is going to end very badly," James Massie, an expert in the reinsurance industry, told the editorial board last week. "Florida is the poster boy for what not to do."

If we get through this hurricane season unscathed, the problems aren't solved. We are still a vulnerable peninsula, and the urgency and necessity of stabilizing our property insurance system hasn't gone away either.

REGION: Homeowners recover $27M from insurance since 2007

home owners insurance

California Insurance Commissioner Steve Poizner, left, along with Escondido homeowners Kathie and Keith Browning were on hand Monday as Poizner announced the state Department of Insurance has helped San Diego County residents recover more than $27 million from their insurance companies over the last two years. The Brownings lost their home in the Witch Creek wildfire that started on Oct. 21, 2007.

Do Not Wait For Insurance Settlement; SBA Urges Return of Applications

home owners insurance

ATLANTA--(BUSINESS WIRE)--The U.S. Small Business Administration is reminding victims in eligible Kentucky counties they should not wait to settle with their insurance companies before applying for disaster loan assistance. The SBA encourages victims of the tornado and severe storms that hit Casey County on October 9, 2009 to return their completed applications, even if they have not settled with their insurance company. Waiting to file an SBA application could cause unnecessary delays in receiving disaster assistance. The deadline to file an SBA loan application for physical damage is December 28.

Homeowners, renters, non-profit organizations and businesses of all sizes in Adair, Boyle, Casey, Lincoln, Marion, Pulaski, Russell and Taylor counties are eligible to apply for physical disaster assistance.

“Returning a completed SBA disaster loan application is an important step in the disaster recovery process,” said Frank Skaggs, Director of SBA Field Operations Center East. “SBA does not need your insurance settlement information in order to start the application process.”

It is not necessary for victims to wait for a settlement before applying to the SBA. If a victim does not know how much of their loss will be covered by insurance or other sources, the SBA will consider making a loan for the total loss up to its loan limits, provided the borrower agrees to use insurance proceeds to reduce or repay their SBA loan.

SBA’s customer service representatives are on hand at the Disaster Loan Outreach Center to issue loan applications, answer questions about the SBA’s disaster loan program, explain the application process and help individuals complete their applications. The Center location and hours of operation are:

Casey County
Old Casey County Courthouse
625 Campbellsville Street
Liberty, KY 42539

Open: Monday, November 9 through Thursday, November 12; 8 a.m. to 4:30 p.m.,
Closed: Wednesday, November 11 in observance of Veterans Day
Closing: Thursday, November 12, 2009 at the close of business

Disaster loans up to $200,000 are available to homeowners to repair or replace damaged or destroyed real estate. Homeowners and renters are eligible up to $40,000 to repair or replace damaged or destroyed personal property. Businesses and non-profit organizations of any size may borrow up to $2 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory, and other business assets.

Interest rates are as low as 2.750 percent for homeowners and renters and 4 percent for businesses with terms up to 30 years. Loan amounts and terms are set by the SBA and are based on each applicant’s financial condition.

For small businesses and most private non-profit organizations of all sizes, the SBA offers Economic Injury Disaster Loans to help meet working capital needs caused by the disaster. Economic Injury Disaster Loan assistance is available regardless of whether the business suffered any property damage.

Victims unable to visit the Center may obtain applications and program information by calling the SBA’s Customer Service Center at 1-800-659-2955 (1-800-877-8339 for the hearing-impaired), Monday through Friday from 8 a.m. until 9 p.m. EST or by sending an email to disastercustomerservice@sba.gov. Business loan applications can be downloaded from the SBA Web site at www.sba.gov/services/disasterassistance. Completed applications should be mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.

Victims may visit SBA’s secure Web site at https://disasterloan.sba.gov/ela/ to apply for disaster loans.

The deadline for physical loan applications is December 28, 2009; the deadline for economic injury applications is July 29, 2010.

Poizner hails recovery from fires, says most claims are resolved

home owners insurance

ESCONDIDO — Standing in front of an Escondido home that rose from the ashes of the 2007 wildfires, California Insurance Commissioner Steve Poizner said yesterday that the pain of post-fire recovery and rebuilding has finally ended for most of the victims.

Poizner, who is running for governor, said 99 percent of the 40,000 insurance claims filed by homeowners whose houses burned down or were damaged by Southern California wildfires in 2007 have been resolved, and that homeowners have received insurance payments totaling $2.3 billion.

In San Diego County, where 1,650 homes were destroyed and 200,000 acres burned in the Witch Creek fire, the state Department of Insurance helped 400 victims who asked for its intervention secure an additional $27 million from their insurance companies.

Poizner held the news conference in front of Keith and Kathie Browning’s 3,900-square-foot home to give a second-anniversary report of the Witch Creek fire.

He underscored his department’s success, although he acknowledged that more needs to be done.

Keith Browning, 62, agreed that the Department of Insurance helped him greatly, but said that, unlike other fire victims, he had help from friends who knew how to navigate the insurance system and the construction industry.

In Rancho Bernardo, which suffered the heaviest losses in San Diego from the Witch Creek fire, residents had a different take on post-fire recovery.

Valerie Brown, project coordinator for RB United, a coalition helping fire victims, said at least 70 people still have not obtained permits to rebuild.

Karen Reimus, disaster recovery coordinator for the nonprofit United Policyholders, which educates consumers about their insurance rights, said Poizner still has not fulfilled his promise to audit 2007 wildfire insurance claims so that his department could make it easier for future victims.

Darrel Ng, Poizner’s press secretary, said the audit on larger insurers is being finalized.

Florida Peninsula Insurance Helps to Prepare Florida Homeowners for Tropical Storm Ida

home owners insurance

BOCA RATON, FL -- 11/09/09 -- Florida Peninsula Insurance, a domestic property and casualty company writing multi-peril homeowners, condo and renters policies statewide, is helping to prepare Florida Homeowners for Tropical Storm Ida, which is projected to make landfall near Alabama before continuing across the Florida Panhandle, by offering a variety of tips to minimize loss and ensure safety.

"Now is a good time for Floridians to review their checklist and prepare for the impending storm," said Florida Peninsula President and CEO Roger Desjadon. "Knowing what to do will help keep you calmer and safer during and after a storm. Our knowledgeable teams of claims adjusters are here to help and answer any questions you may have before or after a storm."

Develop a plan:

-- Get the hardware items you need ahead of time -- If you wait until the
last minute, some essential items may not be available.
-- Put everything you need in an easy-to-carry container.
-- Get some cash -- Financial institutions normally close for at least
two days after a direct hit. ATMs may be out even longer.
-- Carry a list of important phone numbers with you.
-- Be sure you have your insurance company account number, and a phone
number to call with claims.
-- Know what evacuation routes you are going to take.


Do a Household Inventory:

-- Complete this list on your computer, and send it to yourself by e-mail
as well as place a copy in a safety deposit box. That way, you'll be able
to access it from other locations if you can't get back into your home.

-- Warning: be sure you don't include sensitive information, such as your
Social Security number, in an e-mail. Someone could intercept it and steal
your identity.


Three key ways to minimize loss and ensure your safety:

-- Reinforce your garage door and tracks with center supports. About 80%
of residential hurricane wind damage starts with entry through garage
doors, says the Florida Alliance for Safe Homes.

-- Bring in anything from your yard that could become wind-borne, and ask
your neighbors to do the same. The greatest threat to your home in most
hurricanes is not the wind itself, but wind-blown debris that can break
windows and doors.

-- Be especially alert and careful after the storm passes. More people
are injured in a storm's aftermath than during the actual event. The most
common culprits: downed power lines, sharp objects and dangerous debris. Be
sure you don't use a power generator indoors or in any enclosed areas. And
carefully assess any potential danger before beginning a repair job. Your
safety is our number one concern.


If your property suffers damage, please take the following steps:

1. Report your claim immediately by calling Florida Peninsula's
toll-free claim number 877.994.8368.

2. Take photos of the damage right away (and before any repairs).

3. If safe to do so, make temporary repairs to prevent further
damage and protect your property. Consider contacting a water
extraction company to dry out your home.

4. Keep detailed receipts and present them to the adjuster. (Be
sure you have copies for your records.)

For additional information on hurricane and tropical storm plans and checklists, what you should include in your pre-storm checklist and how to prepare your house for a storm, please visit www.FloridaPeninsula.com.


ABOUT FLORIDA PENINSULA INSURANCE COMPANY:

Founded by a team of veteran insurance professionals, Florida Peninsula Insurance is one of the top 10 largest companies offering multi-peril homeowners insurance in the state. The company insures over 100,000 homes in Florida. Florida Peninsula markets through a network of 2500 independent insurance agents located throughout the state. Our aim is to combine the latest technology with old-fashioned courtesy and customer service, providing efficient, cost-effective, peace-of-mind protection for our policyholders. Florida Peninsula was first issued a Certificate of Authority to do business in April 2005 by the Florida Office of Insurance Regulation. For more information and to get a comparison quote please call (866) 846-3060.

Boardroom Communications
Lauren Simo
954.370.8999

Floods worry Golden Pond homeowners

home owners insurance

A standing-room-only crowd of homeowners greeted the Tate County Supervisors at their November 2 meeting.

The members of the large group were property owners from Golden Pond subdivision. Their complaint was the major flooding that had occurred there twice in the past year.

Brenda Brooks acted as a spokesperson for the group.

She told the Supervisors that some of the damage was so severe that the homeowners were still unable to return to their residences.

Other homeowners complained that the covers had floated off their sewage treatment plants during the last flood, and they were concerned about contamination of their wells.

"We just want to know where to go for help," Brooks said.

District Three Supervisor Tony Sandridge, who had toured the area during the previous weekend, said that his understanding was that the problem was on right-of-ways secured by the Mississippi Department of Transportation. If that was the case, he said, the county could not do anything.

Brooks said that MDOT had informed them of a study being done of the area to determine what should be done. She added that she and the other homeowners feared that the area would be deemed a flood zone, causing their insurance rates to rise.

New flood maps for the area were approved earlier this year. Board Attorney John Lamar said that someone needed to follow up with MDOT, to be sure that the study was completed in a timely manner and the problem was solved before another flood occurred.

To that end, the board voted to authorize Lamar and county engineer Larry Britt to make contact with MDOT. District Two Supervisor Mike Campbell added that he would contact the Army Corps of Engineers, which owned land surrounding Golden Pond, to see if they could help the flooding from further upstream.

Another water situation, this time of a less-controversial nature, was also brought to the board's attention.

Tate County Economic Development Foundation Executive Director Janie Mortimer brought Larry Jarrett and Andrew Whitehurst to the meeting to discuss the Scenic River Program and the DeSoto County Greenways Project.

Whitehurst, who works for the Mississippi Department of Wildlife, Fisheries, and Parks, asked board members for their support for a multi-year process which would introduce the Coldwater River into the Scenic River Program. The designation would encouage private landowners along the river to use "best management practices" to protect the riverbanks and help prevent sediment from flowing into the water.

According to Whitehurst, the designation takes two bills, introduced in two different legislative years, to attain. He also said, in response to questions, that duck hunting along the river would not be affected.

Adding the river to the Greenways project, Jarrett said, would allow the area to be marketed for eco-tourism. Kayakers and canoeists would be encouraged to make trips down the river.

Although some were concened about the kayakers' effect on crappie fishermen on the river, board members expressed support for both projects.

All board members were present for the meeting.

Homeowners can take credit for energy efficiency

home owners insurance

With economic stimulus money adding to alternative energy incentives in New Jersey, making a home greener and paying less for energy is easier on the finances than ever.

The federal and state governments are willing to subsidize everything from installing solar panels on your roof to adding insulation to replacing your old clunker of a clothes washer with a model that uses less water.

"Right now, I'm as busy as it gets," said Deniz Bilge, owner of Green Sun construction, that specializes in solar paneling and other energy-pinching measures.

Most of his customers are tired of paying high utility bills and want to make small changes to make their homes more energy-efficient, Bilge said. A few are going all-out and putting solar panels on their roofs.

"The tax credit helps," he added.

Through the end of 2010, the federal government is offering a 30 percent tax credit - up to your tax obligation for the year - to homeowners who install solar panels. In addition, the state of New Jersey is offering $1.55 per watt - or $1.75 per watt with an energy audit - for residents who put in solar energy systems up to 10 kilowatts.

"The incentives are great. Basically, a system will pay for itself ... in less than four years to five years," and pay for itself again in the five years after that, said Gene Cathrall, who owns Spectrum Solar in Cape May County. "If you have money sitting in the bank, basically losing money, it's a great place to put it."

A 10-kilowatt solar-energy system costs about $70,000 to install, and smaller residential jobs go from about $24,000 to $60,000. But when you factor in the government rebates, a household that pays $3,000 a year in electric bills can quickly recoup the initial cost, Cathrall said.

Solar paneling is a good investment for summer residents, who can collect energy credits all winter when they're not living in the home, and use them in the summer when there is more demand for electricity, Cathrall said.

Bilge said he is going to Pennsylvania this month to install solar panels on three homes.

The only problem is, as the prices on the panels come down, more people and businesses want them, Bilge said. Especially with the tax incentives, more people ordered the systems and now there is a wait to receive them.

Green house

Bilge is constructing his own house in Somers Point, planning to move his family in by Memorial Day.

There will be no solar panels on this roof - it will covered with grass to prevent heat from building up in the attic - because the lot has many trees and Bilge said he doesn't see the sense in cutting them down to allow the sun to energize the house.

But the insulated walls are 6 inches thick, and the supplier guaranteed in writing that they will save him 30 percent on energy costs, Bilge said. Large windows will let in sunlight to help with lighting and heating.

The house will be heated by 85-degree water or glycol passing through hoses snaked beneath the basement and under the floor of the main living area, Bilge said. That will be powered by a gas-fired boiler.

"It can be zero degrees outside, and I could shut it off and it will keep the house warm," Bilge said.

The frame is made of mostly recycled steel, including an I-bar from the sign at the old Trump Castle casino, which happened to be the exact size he needed for a beam, Bilge said.

There will be no wood in the construction, which not only helps save the forests, but will save him money in home-insurance premiums, Bilge said.

Bilge said he hasn't yet figured out how much the government will reimburse him for his green home. But he knows he can get up to $500 in rebates for furnishing the house with Energy Star appliances.

As for the rest, Bilge said he plans to sit down with his accountant later this month to determine exactly which rebates and incentives he qualifies for. His plan for the time being is to build an energy-efficient house that his family can enjoy for the long run.

"My goal is not to use the energy in the first place," he said.

Contact Elaine Rose:

609-272-7215

Low Interest Loans Available For July's Storms

home owners insurance

White Plains, NY - Relief is in sight but home and small business owners – even renters and non-profit organizations – may not know about it.

Westchester County residents and small business owners who suffered damage as a result of last July’s storms can still apply for low-interest disaster loans from the U.S. Small Business Administration (SBA). The first deadline for applications is December 1.

The SBA last month declared New York State – including Yonkers, Mt. Vernon and certain areas in the southern Westchester – a disaster area as a result of the severe storms, straight-line winds and flooding that occurred on July 6 and 7. This disaster declaration by the SBA makes Westchester County residents and businesses in those areas hit by the storm eligible for assistance with low-interest loans. The SBA has reached out to Westchester County’s Department of Emergency Services department for help in getting the word out.

County Executive Andy Spano said, “There are still many business and home owners who don’t know about this assistance from the SBA. I would urge anyone who thinks that they might qualify to apply before December 1.”

For business owners, the SBA has two types of loans. The first – an economic injury loan – provides working capital to assist eligible businesses to recover from losses caused by the July 6-7 storms. The second – a physical disaster loan – covers the cost of repairing or replacing damaged real estate, equipment, inventory and fixtures. The amount of these loans may be increased by as much as 20 percent of the cost of recovery in order to better protect the property against future disasters of this type. Homeowners and renters in Westchester County affected by the storms may also apply for the second type of loan – the physical disaster loan – to pay recovery costs not covered by insurance.

The application deadline for the physical damage disaster loans is December 1 and the application deadline for filing the economic injury loans is July 2.

For those who either don’t have the money or are unable to be approved for loans from non-government lenders, the interest rate for home-owners is 2.437 percent and for business-owners and non-profit organizations 4 percent. The rates are slightly higher – from 4.875 to 6 percent – for those who do have available credit elsewhere.

Universal Insurance Holdings, Inc. Reports Third-Quarter 2009 Financial Results

home owners insurance

Universal Insurance Holdings, Inc. (the Company or Universal) (NYSE Amex: UVE), a vertically integrated insurance holding company, announced third-quarter 2009 net income of $11.5 million, or $0.28 per diluted share, compared to $7.4 million, or $0.19 per diluted share, in the third quarter of 2008.

Net income grew 56.2 percent for the third quarter of 2009, as compared to the same quarter last year, largely attributed to realized gains on investments and foreign currency gains on investments which offset pressure on the Company's operating results because of state mandated wind mitigation credits and previous state mandated premium rate decreases, and increased expenses from higher reinsurance costs in 2009. As a whole, the Company's investment portfolio has performed well, and as of September 30, 2009, contained $7.6 million of pre-tax unrealized gains. As a result of continued profitability, the Company's balance sheet also strengthened, as stockholders' equity increased 6.9 percent at September 30, 2009, as compared to June 30, 2009. These achievements have afforded the Company the ability to declare an aggregate of 54 cents per share in dividends in 2009, including a year-end dividend of 20 cents per share.

UPCIC, the Company's wholly-owned regulated insurance subsidiary, recently received approval from the Florida Office of Insurance Regulation (Florida OIR) for a premium rate increase for its dwelling fire program within the state of Florida. The premium rate increase, which will average approximately 14.8 percent statewide, was effective November 5, 2009 for new business and will be effective December 29, 2009 for renewal business. Also, in October 2009 the Company announced that the Florida OIR approved a premium rate increase averaging 14.6 percent statewide for UPCIC's homeowner's program within the state of Florida. The effective dates for the premium rate increase are October 22, 2009, for new business and December 11, 2009, for renewal business. These approvals follow the February 2009 Florida OIR approval of UPCIC's premium rate increases of 4.8 percent statewide for homeowners' policies and 4.7 percent statewide for dwelling fire policies, which are flowing through UPCIC's book of business. The Company anticipates that these premium rate increases will help mitigate increased operating expenses, which are partially a result of increased reinsurance costs for the 2009 period. Furthermore, the Company expects that the premium rate increases will improve profitability as they become implemented across UPCIC's book of business.

UPCIC's policy count continues to show growth. UPCIC is in the early stages of writing policies in South Carolina, North Carolina, and Hawaii and the Company intends to grow UPCIC's presence in these new markets as the Company continues to expand relationships with independent agents. UPCIC also intends to write property and casualty insurance in Georgia pending the approval of its rates and forms by the Georgia Department of Insurance.

In Texas, the Company has submitted an application to form a separate property and casualty insurance subsidiary to write property and casualty coverage which remains under review by the Texas Department of Insurance. The Company also believes that new opportunities exist within the Florida insurance market for American Platinum Property and Casualty Insurance Company, which is Universal's subsidiary that intends to write insurance in the state of Florida in the lines of homeowners' multi-peril and inland marine on homes valued in excess of $1 million, a product offering not currently marketed through UPCIC, upon approval from the Florida OIR.

Third-Quarter Results

Net income increased 56.2 percent to $11.5 million, or $0.28 per diluted share, for the three-month period ended September 30, 2009, from $7.4 million, or $0.19 per diluted share, for the same period of 2008. The improvement in net income and earnings per diluted share in the third quarter of 2009 was primarily a result of $12.1 million of pre-tax realized gains on investments and $6.1 million of pre-tax foreign currency gains on investments during the 2009 third quarter, as compared to no realized gains on investments or foreign currency gains on investments during the 2008 third quarter.

Comprehensive income increased by approximately $504 thousand during the 2009 third quarter, as compared to the same quarter last year, as a result of increased net income and a decrease in net unrealized gains on investments, net of tax, of $3.6 million. The change in net unrealized gains on investments, net of tax, was also impacted by market value fluctuations within the Company's investment portfolio during the 2009 third quarter. As of September 30, 2009, the Company's investment portfolio contained $7.6 million of pre-tax unrealized gains on investments. The Company did not hold any fixed maturities or equity securities during the 2008 third quarter.

UPCIC saw continued growth in its policy count, servicing approximately 536,000 homeowners' and dwelling fire insurance policies as of September 30, 2009, up from 520,000 policies and 451,000 policies at June 30, 2009, and September 30, 2008, respectively. The increase in the number of policies in-force continues to be the result of heightened relationships with existing agents, an increase in the number of new agents, and continued expansion opportunities that exist within the Florida marketplace. Additionally, as previously announced, UPCIC has started to write homeowners' insurance policies in South Carolina, North Carolina, and Hawaii. As of September 30, 2009, the subsidiary has written approximately 2,800 policies totaling approximately $4.2 million of in-force premiums in those states.

In-force premiums were approximately $563.0 million as of September 30, 2009, versus $519.3 million at September 30, 2008, while direct premiums written were $134.6 million in the third quarter of 2009, compared to $124.7 million for the same period of 2008. In-force premiums at June 30, 2009, were approximately $550.7 million.

Notwithstanding an increase in the number of homeowners' and dwelling fire insurance policies serviced by UPCIC and related growth in direct premiums written during the 2009 third quarter, net premiums earned decreased 14.0 percent to $32.8 million in the third quarter of 2009, from $38.1 million in the 2008 third quarter, as a result of a decrease in net premiums written. These decreases were a result of state mandated wind mitigation discounts and previous state mandated premium rate decreases, and the effects of higher reinsurance costs in the 2009 period.

UPCIC recognized a higher volume of premium discounts in response to a state-required wind mitigation discount program available to policyholders, which have had a continued significant negative effect on UPCIC's premium volume and impacted net income. As of September 30, 2009, 43.0 percent of UPCIC policyholders were receiving wind mitigation credits totaling $210.3 million, (a 27.5 percent reduction of in-force premium), while 27.3 percent of UPCIC policyholders were receiving wind mitigation credits totaling $97.8 million, (a 16.0 percent reduction of in-force premium), at September 30, 2008.

Premium rates decreased 4.1 percent statewide for homeowners' policies and 0.2 percent statewide for dwelling fire policies as required by the Florida legislature in January 2008 for the homeowners' program and March 2008 for the dwelling fire program. The effect of these rate decreases on existing policies and the corresponding premium decreases in direct written premium was fully recognized in UPCIC's policies by early 2009. In February 2009, rate increases of 4.8 percent statewide for homeowners' policies and 4.7 percent statewide for dwelling fire policies were approved by the Florida OIR and implemented in February 2009, for new business and April 2009, for renewal business. In October 2009, rate increases of 14.6 percent statewide for UPCIC's homeowner's program were approved by the Florida OIR and implemented in October 2009 for new business, and will be implemented in December 2009, for renewal business. Most recently, average rate increases of approximately 14.8 percent statewide for UPCIC's dwelling fire policies were approved by the Florida OIR and were effective on November 5, 2009 for new business, and will be effective December 29, 2009, for renewal business. UPCIC expects these premium rate increases to help mitigate increased operating expenses, partially a result of increased reinsurance costs for the 2009 period, and improve profitability as they become implemented across UPCIC's book of business.

Net investment income decreased 47.1 percent to approximately $587 thousand for the three-month period ended September 30, 2009, from $1.1 million for the same period of 2008. Net investment income is comprised primarily of interest and dividends. The decrease is primarily because of changes in the composition of the Company's investment portfolio during the three-month period ended September 30, 2009.

Realized gains on investments increased to $12.1 million for the three-month period ended September 30, 2009, from no realized gains on investments for the three-month period ended September 30, 2008. The increase is a result of the expansion of the Company's investment portfolio into fixed securities and equity securities and the related sales of certain of these securities.

Foreign currency gains on investments increased to $6.1 million for the three-month period ended September 30, 2009, from no foreign currency gains on investments during the same period ended 2008. Foreign currency gains increased in the current period as a result of the expansion of the Company's investment portfolio into fixed maturities and equity securities, which are denominated in currencies other than the U.S. dollar, and the related sales of certain of these securities.

The Company's commission revenue increased 21.4 percent to $8.1 million in the 2009 third quarter, from $6.7 million in the same quarter last year. Commission revenue is comprised principally of the managing general agent's policy fee income and service fee income on all new and renewal insurance policies, reinsurance commission sharing agreements, and commissions generated from agency operations. The increase is primarily attributable to an increase in reinsurance commission sharing of approximately $1.1 million, and an increase in the managing general agent's policy fee income of approximately $303 thousand.

In the third quarter of 2009, net losses and loss adjustment expenses (LAE) increased 0.6 percent to $23.8 million from $23.6 million in the third quarter of 2008. During the third quarter of 2008, the Company incurred net losses and LAE of approximately $2.9 million related to tropical storm Fay. While there was an absence of incurred net losses and LAE related to adverse weather events during the third quarter of 2009, the Company incurred an increase in net losses and LAE in connection with the servicing of additional policies.

The net loss ratio, which is derived from net losses and LAE as a percentage of net earned premium, for the three-month period ended September 30, 2009 was 72.6 percent compared to 62.0 percent for the same period of 2008. The increase in the net loss ratio is attributable to the increase in net losses and LAE incurred, coupled with a decrease in net earned premium in the 2009 quarter as compared to the 2008 quarter.

Net premiums earned decreased 14.0 percent in the third quarter of 2009 as compared to the same quarter last year, and the average premium per policy decreased significantly because of the wind mitigation credits and premium rate decreases. At September 30, 2009, UPCIC was servicing approximately 536,000 homeowners' and dwelling fire insurance policies with in-force premiums of approximately $563.0 million, or an average of $1,050 per policy, while the amount of policies UPCIC was servicing at September 30, 2008 was approximately 451,000 with in-force premiums of approximately $519.3 million, or an average of $1,151. Consequently, as a result of increased net losses and LAE in connection with the servicing of additional policies, the net loss and LAE ratio increased significantly for the 2009 period. Additionally, total reinsurance costs were higher for the 2009 period as compared to the 2008 period, which reduced net earned premium.

Third-quarter 2009 general and administrative expenses increased 57.8 percent to $18.7 million from $11.8 million in the 2008 third quarter. The increase in general and administrative expenses was due to several factors including lower ceding commissions, increased salaries for existing employees and higher employee count due to business growth. On a year-over-year basis, during the 2009 third quarter ceding commissions decreased as a result of the quota share reinsurance commission rate reduction to 25 percent for the 2009 to 2010 contract year from 31 percent for the 2008 to 2009 contract year. Deferred policy acquisition costs were also affected by this reduction. As mentioned above, UPCIC's recent premium rate increases are anticipated to mitigate increased operating expenses as they begin to flow through UPCIC's book of business.

At September 30, 2009, stockholders' equity increased to $126.9 million from $118.7 million at June 30, 2009, representing growth of 6.9 percent. As of September 30, 2009, UPCIC's statutory capital and surplus was $102.7 million versus $103.1 million at June 30, 2009.

Year-End Cash Dividend

On November 3, 2009, Universal's board of directors declared a cash dividend of $0.20 per share payable on December 4, 2009 to shareholders of record as of November 16, 2009. The board of directors' decision to declare the dividend reflected the Company's positive results through the third quarter of 2009 and management's assessment of the Company's business and corporate needs.

Investment Portfolio Update

As of September 30, 2009, the Company's investments in equity securities and fixed maturities totaled $89.4 million, as compared to $208.6 million at June 30, 2009. The reduction of investments in fixed maturities and equity securities within the investment portfolio during the third quarter of 2009 relates to the sale of certain of these securities, which contributed to an increased cash position at September 30, 2009, as compared to June 30, 2009. At September 30, 2009, approximately 79.2 percent of the investments were in equity securities considered available for sale and 20.8 percent were in fixed maturities available for sale. As of September 30, 2009, the Company's investment portfolio contained $7.6 million of pre-tax unrealized gains.

The equity security positions continue to be comprised of holdings in natural resources sectors including metals, energy, and agriculture. At this time, the Company does not participate in swaps, options, futures or forward contracts to hedge or enhance the investment portfolio; however, in the future the Company may use swaps, options, futures or forward contracts to hedge unrealized gains.

About Universal Insurance Holdings, Inc.

Universal Insurance Holdings, Inc. (UIH) is a vertically integrated insurance holding company, which through its various subsidiaries, covers substantially all aspects of insurance underwriting, distribution, claims processing and exposure management. Universal Property & Casualty Insurance Company (UPCIC), a wholly owned subsidiary of UIH, is one of the five leading writers of homeowners' insurance in Florida and is now fully licensed and has commenced its operations in Georgia, Hawaii, North Carolina and South Carolina. Additionally, the Company has filed an application to the Texas Department of Insurance to form a separate property and casualty subsidiary to write homeowners' insurance coverage in Texas. For additional information on the Company, please visit our investor relations Web site at www.universalinsuranceholdings.com

Readers should refer generally to reports filed by the Company with the Securities and Exchange Commission (SEC), specifically the Company's Form 10-K for the year ended December 31, 2008, and the Company's Form 10-Q for the quarterly period ended September 30, 2009, for a discussion of the risk factors that could affect its operations. Such factors include, without limitation, exposure to catastrophic losses; reliance on the Company's reinsurance program; underwriting performance on catastrophe and non-catastrophe risks; the ability to maintain relationships with customers, employees or suppliers; competition and its effect on pricing, spending and third-party relationships; the Company's financial stability rating; product pricing and revenues; and the effect of Federal or state laws and regulations. Additional factors that may affect future results are contained in the Company's filings with the SEC, which are available on the SEC's web site at http://www.sec.gov. The Company disclaims any obligation to update and revise statements contained in this press release based on new information or otherwise.

Cautionary Language Concerning Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "anticipate," and "project," and similar expressions identify forward-looking statements, which speak only as of the date the statement was made. Such statements may include, but not be limited to, projections of revenues, income or loss, expenses, plans, and assumptions relating to the foregoing. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future results could differ materially from those described in forward-looking statements.

New Boston home lost to fire, no insurance

home owners insurance

A New Boston couple lost their home and possessions in a devastating fire on Oct. 28. Richard and Gail Riendeau of 97 Saunders Hill Road did not have homeowners insurance.

Gail Riendeau’s brother, Steven Christensen, said they were dropped by multiple insurers. “For whatever reason their insurance company, their homeowners, dropped them,” he said.

He said his sister then tried another company who would not insure them. They were insured for some time by Lloyd’s of London, he said, but were dropped again. “Nobody gave them a reason as to why they dropped them,” he said. “She eventually ended up calling the insurance commission and ended up getting no results.”

Now, the two have lost their home, belongings and the tools needed for Richard Riendeau’s work in the fire, which officials said may have been caused by a candle. “It’s an awful sad story. He’s self-employed as a remodeling contractor, and he had started remodeling their house. They were in that home for close to 30 years,” he said.

Gail Riendeau has multiple sclerosis and cannot work, Christensen said. “Richard has pretty serious burns. He won’t be able to work, even if he had some (work), for a little while,” Christensen said.

He said Riendeau got second- degree burns on the bottom of his feet while trying to put out the fire.

The couple is currently staying with Gail Riendeau’s son from a previous marriage, Christensen said. But their family does not have much money to help them: Gail’s son is a single father to four children, and her parents are elderly and have limited resources, he said. “They have no insurance. He really has had no work because of the recession, and they both have serious health conditions,” Christensen added.

Richard Riendeau recently had surgery on a tumor in his pituitary gland, he said.

It is not clear if any of the home will be salvageable.

“What I am concerned about is that he might end up with just the lot in New Boston,” Christensen said. “(Richard) is able, once he recovers, of (rebuilding) it himself, but he needs the tools and at least a line of credit.” “We only have so many resources, and they’re also too proud to ask for a lot of it, too,” he added.

For now, he said the family is just finding it hard to believe how much they have lost. “It’s really devastating, and they’re still in a daze,” Christensen said.

A fund has been set up at TD Bank at 2 High St., P.O. Box 310, New Boston, NH 03070. Monetary donations may be mailed to the Riendeau Fire Fund at that branch or made in person at any TD Bank branch.

Personal items may be donated by contacting Shannon Silver, New Boston health officer, at 487-5504, ext. 108.

Southland homeowners at risk for mudslides have trouble finding insurance

homeowners insurance quotes

Some residents of areas burned by the Station fire are buying flood policies on top of fire and earthquake plans, hoping that at least one will accept mudslide damage claims.

Charred slopes in the foothills towering above William Johnson's La Cañada Flintridge home are now a mudslide in the making after being burned by recent wildfires.

But getting insurance has been impossible for him and many of his neighbors, he said, as winter rains loom.

Johnson, 54, said he called three providers, each of whom said they would not issue insurance for his area.

"While I'm trying to get protection, they don't want to deal with their losses, and they're trying to maximize their profits," he said.

Southland homeowners at a high risk for mudslides say they are finding few options for complete coverage.

Stand-alone mudslide policies are rare, so some residents are buying flood policies on top of fire and earthquake plans, hoping that at least one will accept mudslide damage claims.

But flood insurance is often vague and may not always pay for mudslide damage. Experts say flows that look like a chocolate milkshake tend to be covered, whereas an onslaught with a cake consistency is not.

As a result, residents like Johnson are turning to sandbags as a more reliable defense.

"Ironclad protection probably doesn't exist," said California Insurance Commissioner Steve Poizner, who was in La Cañada Flintridge on Friday to warn residents of the flooding risk. "There are certain types of perils not addressed by insurance. But there are things homeowners can do to protect themselves other than insurance."

The Station fire tore through acres of thick vegetation that normally holds the ground in place. The U.S. Geological Survey said this week that communities including Pacoima Canyon, Big Tujunga Canyon and Arroyo Seco could face an 80% chance of mudslides during the rainy season.

La Cañada Flintridge and La Crescenta could also be hit.

Poizner, speaking at the base of a hill speckled with dull, ashy dirt and the skeletal remains of trees, said residents were "completely exposed." Only 20 or so flood policies are in place in the area, according to the Federal Emergency Management Agency.

But basic insurance packages usually don't cover mudslides, experts said, focusing instead on fire, theft and falling water such as rainstorms.

"A lot of water damage claims end up being duked out in court," said Amy Bach, executive director of consumer group United Policyholders. "It's one of these areas where insurance companies have tried in recent years to limit their responsibility."

Although some providers of basic homeowner plans may be willing to pay for damage if residents can definitively link a mudslide to a recent fire, experts recommended buying a flood policy just in case.

"The last thing you want is to see that water coming and say, 'Oops, I should have done something,' " said Pete Moraga, a spokesman with the Insurance Information Network of California. The nonprofit trade association represents insurers including State Farm, Farmers and Allstate.

The dominant provider, the National Flood Insurance Program, is part of FEMA. Coverage is usually administered locally by independent insurers, few of whom offer their own flood plans.

"Flooding has become such a huge and expensive issue that it became uninsurable," Moraga said. "Because they usually involve such a large area and such high risk, many companies just pulled out."

The federal program, created by Congress in 1968, is particular about what damage qualifies for coverage, leaving mudslides in a gray zone.

A flood is defined by the program as a water overflow or an unusual and rapid accumulation or runoff of surface waters, including faulty dams or rivers that jump their banks.

Some residents of areas burned by the Station fire are buying flood policies on top of fire and earthquake plans, hoping that at least one will accept mudslide damage claims.

Slope failures are excluded, as are "earth movements" such as earthquakes, sinkholes or gradual erosion. So, too, are landslides that break earth off in large chunks and destabilized land saturated with water.

However, mudflows are covered. The description mentions a river of liquid and flowing mud that picks up debris, usually after rains fall on land without adequate surface vegetation, such as in fire zones.

"The insurance is difficult because of all the flood categories," said resident Jane Fontana, 47. "If you have a giant rock roll down the hill because of the rain, they don't really cover that."

Fontana, a musician whose home in Big Tujunga Canyon was one of only two on her street to survive the Station Fire, said she bought flood insurance as a backup for the fire coverage she has through the California Fair Plan. It is an alternative sponsored by the government and insurance industry offered to those considered too risky by other companies.

Fontana said she was repelled by an initial $2,000 quote -- "a lot of money, especially if I put in a claim and they say no," she said. Eventually, an agent helped push down the cost to $400.

Just last week, the average cost of the federal flood program rose 8% nationally, according to the Insurance Information Network. On average nationwide, flood policies cost $544 a year, and the average flood claim is $33,000.

In the state, 271,007 federal flood policies are in place, with a total premium of more than $188 million.

For a claim to qualify, two or more acres or properties must be covered in water or mud. But according to the federal program, just 6 inches of flooding can cause more than $11,000 in damage to a house.

The policies usually take effect after 30 days and cover $250,000 in structural damage and up to $100,000 for personal property. Renters' policies are worth up to $100,000.

In the meantime, experts said homeowners should try to protect their properties by putting out nets, building retaining walls or planting vegetation to divert the mud.

Some insurers also offer additional insurance above the federal program's limit. And Poizner suggested companies that offer all-inclusive policies or specialized landslide coverage, while cautioning that such plans would be few and far between, and very expensive.

But the combination of home and flood insurance should cover the vast majority of cases, Poizner said.

Some residents, however, are resisting insurance entirely.

Karen Carson, 64, who works for a sports shoe manufacturer, owns the other surviving house on Fontana's street. She has fire and earthquake insurance but isn't too concerned about mudslides.

"I'm kind of taking a wait-and-see attitude," Carson said. "I could be wrong, but I don't think my actual house is going to be a problem. In 40 years, we've had some pretty bad rains, but never a problem with mudslides before."

10 Valuables That Raise Homeowners Insurance Quotes

homeowners insurance quotes

Homeowners across the country that have the means in which to supply themselves with nice things often do. Flat screen televisions, laptop computers, diamond rings, rare artwork, and a finished basement are just a few things homeowners purchase to treat themselves. However, at what cost to their homeowners insurance quotes?

The article, titled ’10 Purchases That Increase Homeowners Insurance Quotes’ states, “Because home policies typically cover your personal belongings, insurance providers have to take precaution against any expensive items you buy and their likelihood of being stolen or damaged. The more your belongings costs, the higher your homeowners insurance quotes will increase.”

The specific items that the article lists as risky to insure are:

1. Furniture
2. Pets
3. Jewelry
4. Antiques
5. Electronics
6. Exercise equipment
7. Expensive clothing
8. Artwork
9. Collectibles
10. Home additions

“Pets” might seem a bit out of place in that list of items and rightfully so. However, homeowners who do not list their pets in their homeowners insurance policies could be left without coverage if the pet bites a guest and requires medical attention or files a lawsuit. Including a pet in the policy is purely for liability purposes.

The article urges homeowners to keep in mind that it is important not to sacrifice coverage for cost. Expensive items should be properly insured because anything can happen at any given moment and any homeowner will want their valuable replaced if they are already paying premiums.

Visit InsuranceAgents.com today to get in touch with insurance agents agent and learn more about ways to limit the factors that can raise homeowners insurance quotes.

http://www.insuranceagents.com/10-purchases.html