Creating one of the most hazardous and deadliest types of loss, fire can strike anywhere at any time.

With a single ember from a cigarette, stove top or campfire; a spark of electricity; or too-close proximity to the flame of a candle or space heater, a home or business can be set alight and burn down in no time, causing thousands of dollars worth of damage and killing or injuring anyone inside or nearby.

But who’s responsible for the damage it causes?

Standard home and business insurance policies cover the destruction fire leaves behind—which can be extensive and costly. Whether in the midst of one simple accident or a major, catastrophic disaster, fire usually strikes unexpectedly and with vengeance.

Though your insurer will help make sure your home and possessions can be replaced if you ever suffer fire damage, it’s your responsibility to be prepared in case it ever happens to you.

For your protection, and to protect your home, the Insurance Information Institute recommends these fire safety tips:

1. Install smoke detectors and familiarize your family with the sound of the alarm.
2. Plan an escape route from your home. If possible, every room should have two escape routes.
3. Remember that smoke and heat rise. When you encounter smoke, crawl on the floor where the air is cleaner.
4. Make sure your roof is constructed with fire-resistant materials.
5. Mark the entrance to your property clearly so firefighters can easily locate your home.
6. Keep a fire extinguisher in your home.
7. Landscape your yard with fire-resistant plants. Check with your local fire department or landscapers to determine which plants are safe. Clear all other vegetation up to at least 30 yards from your home.
8. Make an inventory of your possessions and store it off the premises. If your belongings are damaged, this list will help facilitate the claims-filing process.

Some fires and the damage they cause are beyond our control, as you’ll read in Jeb’s article on The Most Expensive Blazes in U.S. History. But for those we can prevent, we should each do our part to protect the people and things that matter most. After all, we can’t change the past—but we can make the future better.

More Fire and Insurance Resources:

Fire Prevention (I.I.I. video)

Fire-Smart Tips for High-Rise Apartment Dwellers

If you’re looking for a great way to sound off to your insurance company, ask insurance questions or get help filing a claim, try searching for your insurer on Twitter.

Realizing the potential social media holds for business, many insurers have begun communicating with customers on Twitter, the popular site that allows users to “tweet” about anything: random facts, informative articles, vital data or any other information users and friends might find relevant.

A much faster and more efficient way to communicate online these days, Twitter is gaining in popularity among Internet users, along with other social networking sites like Facebook. And insurance companies are jumping at the chance to use the venue to network with customers.

According to Nielsen Online, a leading company that measures Web site traffic, consumers are now spending 83 percent more time participating in online social networks than they did a year ago.

That presents business opportunities most insurers can’t pass up.

Using Twitter, your insurance company can connect with you in real time, answer your questions, and communicate the latest, most up-to-date insurance news. This helps you stay informed and even anonymous, if you wish, while getting the help you need.

If you haven’t joined the popular crowd on Twitter, we recommend you sign up today and connect with your insurer online. It could make getting the help you need with your insurance policies much easier!

Last week, a visitor to our web site submitted the following question (we’re taking questions now—ask yours here):

If a tree in my yard falls on neighbor’s roof, does my insurance pay for the damage? What if a tree is ready to fall down on my house—will my insurance company pay to remove the tree?

It’s a good question, and I suspect that it’s one that many homeowners have, and like most questions involving insurance, there are more shades of grey than appears at first blush. Read the answer here.

But the second question—will my insurer pay to have a weak tree removed—points to a very common misconception about insurance in general, and this misunderstanding centers around this seemingly straightforward question: What is insurance for?

While insurance has changed over the years, it still retains its original purpose: to insulate people from the destructive and costly whims of man and nature.

Actually, the addition of “man” (aka Homo litigious) to the mix is relatively new. Most of the big property-casualty insurers (the ones insuring your homes and cars) started out providing insurance to Midwestern farmers, who were (and still are) victim to the cruel hand of mother nature. (The addition of liability coverage came with our country’s gradual embrace of lawsuits as a cash-acquisition strategy.)

Anyway, back to the point. Insurance is supposed to cover us in the event of accident or extreme weather event or other calamity that would be financially perilous. It is not meant to pay for things we’d simply rather not pay for, like tree removal, for example. That would count as maintenance, and if insurers got in the business of paying to maintain houses, well, they’d either go bankrupt or raise your premiums by 1000 percent.

Insurers get a lot of flack, and some of it is earned. But some of their unpopularity comes from a basic misunderstanding of what insurance is supposed to cover.

Related:

• The Cost of Insurance: Anatomy of a Premium

Life insurance is an important  subject—too important for bad advice. And that’s why I’m going to take a couple minutes to unpack Suze Orman’s unwise counsel.

(For those of you without televisions, Suze Orman is an incredibly popular personal finance pundit and Oprah protégé.)

Too rigid
When answering the question, “How much life insurance should I get?” Orman resorts to a long-discredited formula of multiplying your salary by 20.

The Insurance Information Institute (III) calls this formula “simplistic” because it ignores inflation and other sources of income. The III outlines a scenario in which, at 3 percent annual inflation, Orman’s formula would leave a survivor with no money after 16 years.

Too arbitrary
Orman’s conclusion on the whole life vs. term life insurance debate matches our own, but her reasoning is suspect. She discourages consumers from buying whole life insurance merely because insurance agents make large commissions on such policies.

“While I agree with her that whole life insurance is a poor choice, her explanation for why kind of leaves a person wondering who in the world ever told her she could touch a microphone,” says Ed Hinerman, a life insurance  and blogger. “The reason whole life is a bad deal is that it mixes your family protection with investments … commission is not the issue!”

In other words, permanent life insurance is a bad investment strategy. While it will replace lost income in the event of the policyholder’s death, it will never be a cash cow while the insured is alive. We at InsureMe generally subscribe to this advice: ‘buy term and invest the difference.’

What’s more, Hinerman notes that you should buy a financial product because it’s the right product for you, not because it results in a large or small commission for the agent or broker. The commission is immaterial.

When it comes to life insurance, there’s no one-size-fits-all approach, despite what Orman would have you believe. The best way to find the right coverage is to talk to a licensed professional that you trust. He or she will look at your unique situation—your age, income, assets, number of dependents—and help you find the best policy.

Related:

• Life Insurance Rates Demystified
• 4 Things to Look for in a Life Insurance Company
• Life Insurance in 60 Seconds

The economy is a basket case. The memory of $4 gas is still painfully close. Every day there’s another mass layoff.

These days, there are fewer things to count on, and we could all use a little more cushion in the event that … well, I’ll leave it at that.

That’s why shaving a few bucks off your car insurance premium is a no-brainer. (Check out Penny’s recent article “Auto Insurance Basics that Save.”) In this economy, it’s essential to take a fine-tooth comb to all expenditures and ask yourself: What can I leave out? Where can I save?

Since insurance doesn’t exactly excite the passions (how’s that for understatement?), many people are paying unnecessarily high premiums because they’d rather do just about anything than think about stuff like deductibles and copays. But a lot of those people have outdated notions when it comes to shopping for insurance.

Many people don’t realize that the shopping process is much easier than it used to be. A few painless minutes on our site could result in significant insurance savings—freeing up more cash for daily essentials or for that all-important financial safety net. Here’s what one of the visitors to our site told us recently:

“I have already purchased insurance from one of the insurance agents you sent me. She saved me close to $50.00 to $60.00 a month. That may not seem like much, but that’s a weeks [sic] worth of groceries. Thank you very much.”

Today’s post is about the unexpected costs of dying.

No, it’s not exactly the most uplifting subject, but it’s essential nonetheless—particularly when you consider that funerals, according to the U.S. Federal Trade Commission (FTC), are among the largest expenditures a person will make in his or her life.

“A traditional funeral, including a casket and vault, costs about $6,000,” says the FTC, “although ‘extras’ like flowers, obituary notices, acknowledgment cards or limousines can add thousands of dollars to the bottom line. Many funerals run well over $10,000.”

They price tag may come as a surprise to many, and all too often it comes as a surprise at the worst possible time—when you’re forced to lay to rest a loved one. Sticker shock is the last thing you want to deal with when you’re dealing with the shock of losing a loved one.

Standard funeral expenses include:

• The funeral home’s basic services fee
• Transportation and care of the body
• A final resting place for the deceased, either in an urn or a casket in a cemetery plot

Three Types of Funerals: Full-Service, Direct Burial and Direct Cremation
There are three types of funerals: full-service, direct burial and direct cremation. While direct cremation is perhaps the least expensive option, the costs listed above still apply. Full service funerals may include obituary notices, religious officials for memorial services, embalming, hearses, caskets, burial vaults and grave liners, flowers, organists, etc. In that sense, full-service funerals are like weddings—as expensive or modest as you make them.

‘The Funeral Rule’
Most funeral home directors are honest and caring, but over the years, a few unscrupulous ones have taken advantage of grieving survivors by either overcharging or shaming them into “honoring” a loved one by spending more they could afford. This prompted the federal government to establish what’s known as the Funeral Rule, a set of regulations meant to protect those planning funerals—who are often more easily preyed upon.

The Funeral Rule holds that:

• you have the right to choose the funeral goods and services you want (with some exceptions)
• the funeral provider must state this right in writing on the general price list if state or local law requires you to buy any particular item
• the funeral provider must disclose it on the price list, with a reference to the specific law
• the funeral provider may not refuse, or charge a fee, to handle a casket you bought elsewhere
• a funeral provider that offers cremations must make alternative containers available

Keep in mind that there are additional state laws you must follow regarding funerals and burial.

OK, that’s enough about funerals for today. Parting thought: you don’t need to spend a lot money to properly honor a loved one.

Suggested Reading
Federal Trade Commission: Funerals: A Consumer Guide

We’re all looking for ways to conserve money these days. With prices rising and the holidays fast approaching, researchers say we’re spending less than ever on gift giving—and more on everything else.

The one bright spot? Gasoline prices continue to drop—for now at least—something we’re all grateful for after so many months of inflated prices.

But if, like us, you’re looking for additional ways to save on your monthly bills, as you wait and wonder how you’ll buy your wife that new pair of shoes she so desperately needs, there’s good news: using InsureMe to get a cheap insurance quote means you’ll more than likely have extra money to spend on that special someone this year.

If you’ve never shopped your insurance rates through InsureMe, or it’s been more than a year since you did so last, give our agents a chance to compete for your business—and lower your premiums. Whether you need home, life, health, LTC or car insurance, we’ve got connections with agents in your area who need your business as much as you need insurance…and they’ll get you the cheapest insurance quote available just to earn your business.

Spend less on insurance and more on gift giving this year. Then start the New Year with the cheapest rates possible! Here’s to a great 2009….

For introverts like me, email’s a godsend. While I don’t have an aversion to face-to-face conversation, I’m much better at formulating my thoughts “on paper” (translation: electronically) where I can mull them over, than assimilating them on-demand on the spot. (This also explains why I can’t live without email, Facebook and text messaging!)

Maybe it’s just the writer in me–or the fact that, alone with my computer, I can actually hear myself think. But I divert slightly.

We all know human beings suffer emotionally and socially without interaction. But the way we establish and maintain connections socially and in business settings is an even more interesting topic of study.

While my own preference for electronic communication sets me apart from others my age, most of whom prefer connecting in person and eye-to-eye, today’s young people prefer to forge relationships electronically (like me). Because 92 percent of people between the ages of 18 and 29 are online, they prefer to keep in touch with friends and meet new ones online. And when they need something, the internet is the first (and often only) place they go to find it.

These communication preferences also spill over into shopping habits. When teens and 20-somethings need to find insurance for their cars, they tend to ask their friends for advice or hop online to find an insurance agent and get online car insurance quotes. Why? Because it’s quick, easy, and doesn’t require a lot of time or fuss.

Older Americans, on the other hand, tend to look to their “good neighbor” insurance agent down the street–or the business pages of their phone books–to find an insurance agent who can provide what they need. Having been raised in a time when people conducted business face-to-face across the dinner table or sitting on the living room sofa sipping coffee, they prefer building relationships in person–and sealing business deals with a handshake.

How do you make connections? Do you prefer the ease and speed of electronic means or the security and tradition of human contact? Please weigh in and share your thoughts.

A recent poll conducted for the insurance industry found that 80 percent of Americans want Congress to take measures to make healthcare more affordable. This according to a story by WNDU 16 out of South Bend, Indiana.

The insurance industry seems to be responding to said poll, and pitched a plan on Monday which would come with a taxpayer price tag of $300 million. It’s worth it, said Jay Gellert, a member of the policy committee for America’s Health Insurance Plans. And under the proposed plan, the industry says America’s uninsured could have coverage within the next decade. How?

The new plan calls for:

• Expanded state programs like Medicaid, to cover more children and low-income families, including those that exceed the poverty level but can’t afford health insurance
• Formation of “universal health accounts” with the government kicking in up to 50 cents for every dollar a low-income family saves
• A $500 tax credit for low-income families that buy health insurance for their kids
• $50 billion in state grants to help insure their residents

Sounds pretty good, right?

The clincher: who’s going to foot the $300 billion needed to implement such a plan? The insurance industry doesn’t have any suggestions on how to pay for it, but WNDU reports that insurers still plan to market the plan “aggressively” to the new Congress. And despite the fact that plan proponents don’t yet have all the answers to get the ball rolling, healthcare advocates support the initiative, saying they’re glad to see the insurance industry get involved.

“I think what this initiative does is get us off the dime and stop people from saying this is a problem that’s not solvable,” said Dr. George Benjamin of the American Public Health Association.

Encouraging, indeed.

We’ll keep an eye on this story and post updates here as they come. And, if you’re looking for more resources on finding affordable medical insurance in your state, check out our state-specific insurance articles in our resource center!

I posted a little something on the InsureMe Agent Blog today regarding identity theft insurance, and thought it was only fitting to revisit ID theft insurance.

Why?

Well, according to the J.D. Power and Associates 2006 Homeowners Insurance Study (see their press release here), over 40 percent of homeowners would like their home insurers to offer identity theft insurance coverage. Between the increase of large corporations leaking personal info, natural disasters spreading our business in literally all directions, and the government dipping into more of our personal affairs, it’s no wonder that many of us are looking for ways to protect ourselves.

But I don’t think identity theft insurance is the answer–at least not yet.

As I said in June, most ID theft policies aren’t all they’re cracked up to be. If your identity is stolen, ID theft insurance won’t pay to help you repair any damage to your credit, nor will it help you absolve yourself of any illegal activity carried out under your name. Not great protection if you ask me.

Take a look at our post about ID theft insurance to get the full scoop, and to learn how you can protect yourself without buying superfluous (and frankly, moot) coverage. But do keep a lookout for advances in ID theft insurance. As consumers demand better protections, I’d venture to say that someone, eventually, will listen and give us a better product with which to protect ourselves.

Life is risky. That’s why we have insurance. We buy auto, home and life insurance because even though we’re loath to admit it, we know we have a decent chance of crashing the car, burning down the house, and, well, kicking the bucket. (Ok, so we more than a decent chance on that last one.)

It’s possible you will never make a claim on a particular policy, though. Your monthly premiums may just disappear into the ether. You might make it all 77.3 years without so much as getting into a fender-bender. You might live a hundred illness-free years and die quickly and gracefully in your sleep. Even allowing for these possibilities, however, most of us get auto and health insurance. We love to gripe about paying premiums, but in general, we feel like we’re paying for something worthwhile.

Then there’s title insurance.

…Read the rest of this entry »

I’ve always been a sucker for the products touted on those late-night infomercials–scissors that cut through metal, a plastic tube that stores and cooks your pasta, miracle powder that removes any stain from grape juice to motor oil. Basically, if it makes my life easier, I’ll buy it, or at least put it on my ever-expanding wish list.

In the home-inventory software from the Insurance Information Institute, I’ve finally found a product that helps keep track of all those possessions. Knowing what you own and its worth allows you to get insurance that provides adequate coverage.

You no longer need to walk through each room with a notepad; the software prompts you with questions about each room and allows you to upload photographs and receipts when necessary. It organizes all the information in a report, which you can burn onto a CD or print out and store at a friend or relative’s house. Best of all, when you buy that new juicer/food processor, it’s easy to add it to the inventory.

Download the Software for Free

Download Lists that give you an idea what to include in your home inventory.

Shopping for a new car brings many considerations. Aside from a car’s fun features, you’re probably evaluating things like size, gas mileage and horsepower. What many people forget to check on, however, is how a new car will affect insurance rates.

Yes, in addition to your own personal stats (including things like your driving record, age, sex, credit history and geographic location), your car can play a big role in how much you pay for auto insurance.

What gives?

Comprehensive and collisions costs are mostly to blame, according to this article, featured by MSN Money. Because, unfortunately, when repairs need to be made, insurance rates increase. This is especially true for higher-end cars. Generally speaking, the more your car is worth, the more it’s going to cost to repair. Insurers realize this and will take it into account when determining your premium.

In addition to repair costs, insurers look at a variety of other factors when it comes to putting a premium price tag on your vehicle.

Here are a few other rules of thumb:

…Read the rest of this entry »

It’s that time of year again, the time of massive dorm move-ins, rush week, tailgating and textbooks. Your student is off to college and you’ve covered all the bases. Except, perhaps, the insurance.

Insurance coverage is one of the most important, yet overlooked aspects of sending your child to college. Is your student adequately covered?

You can gauge if your student’s coverage by asking yourself (and your insurance agent) four simple questions:

1. Are my student’s belongings covered under my home insurance policy?
2. If my student drives another person’s car, will she be covered by my auto insurance policy?
3. Is my student covered under my health insurance policy while at school?
4. What benefits will my health insurance policy provide to her while she’s at school?

Not sure? You’re not alone. Most parents aren’t sure what protections their student has while they’re away at college. But we’ve got some some tips and resources for you to make sure your student’s coverages are up to snuff.

…Read the rest of this entry »

Life insurance isn’t a fun topic; we all know this. And I’m not going to try and trick you into believing that life insurance is the coolest thing you’ve ever spent money on, because, well, it’s not. Cars, books and in my case, shoes, are much cooler things to spend money on.

But as it happens, life insurance is a necessary purchase for most of us. So today I’m going to share four tips to maximize your coverage while minimizing your premium dollars…you know, so you have spare change in your pocket for the fun stuff. Like shoes.

See my four tips for life insurance savings after the jump.

…Read the rest of this entry »

Well done, West Virginia.

The Register-Herald out of Buckley, W.Va.is reporting the partnership of State Farm and WVU Extension to help education women on insurance issues.

WVU Extension is a state organization aimed at educating and empowering the community about social, economic, environmental and technical issues. Terrill Smith, a WVU Extension agent, highlights the importance of insurance education for women:

Every woman who has to make insurance decisions for themselves and their families has wondered if the coverage she has on her car or home was enough. They wonder if they have enough life insurance coverage or if they need to invest in disability insurance. Many women have asked me questions about retirement coverage, homeowners’ insurance and a variety of insurance issues.

Studies have also suggested that women seem to be falling through the cracks of America’s healthcare system. According to a recent Kaiser Family Foundation study, over 17 million women over the age of 18 are without health insurance and one in ten working women are currently without health insurance. On average, men are 51 percent more likely to be covered under an employer’s health plan, versus women at 38 percent.

At the risk of sounding preachy, this stuff is a big deal, which is why I commend State Farm and WVU, not only for recognizing the unique insurance needs of women, but for doing something about it. Tonight, the duo will offer a seminar regarding insurance issues. Those attending the seminar won’t be pressured to purchase a policy of any kind, says Smith.

“People will not be asked to buy any insurance from State Farm or anyone else. This is just a wonderful opportunity for women to empower themselves by ask questions and getting information about insurance issues.”

Sessions will be held from 1PM until 4PM and from 5PM until 8PM at the WVU Extension office and childcare will be provided.

Good stuff, West Virginia.

So…what’s your community doing for you?

[Related article]:
Women and Health Insurance: Falling Through the Cracks? [InsureMe Insurance Resource Center]

I just had an idea. It could turn out to be no good, and if it is, I’ll take full responsibility for it in a few days if it fails miserably.

I read a post at the Consumerist today in which the author asks the readers how they liked their “sales greeting”. Do they like being approached by salespeople in a store and asked what exactly they’re looking for? Do they like to be ignored? Do they like to be welcomed into the store and then left alone?

The thread of comments following this post got me thinking about my preferences and how I liked–and disliked–to be solicited on broader sales level. (For example, I don’t like when people call me but am okay with most email communications.) It also got me thinking about how greatly agents on the InsureMe network could benefit from consumer feedback. Then I had an obvious epiphany: why not ask readers of the Insurance blog about their sales and marketing preferences and share them with our agents!

So here’s the deal. I want to hear from you. All of you. Tell me what you like, tell me what you don’t like. Do you hate receiving phone calls from salespeople? Do you prefer being contacted with quotes and other offers via email? Do you pay attention to offers and flyers that you receive in the mail? Do you pay attention to newspaper advertisements? Radio ads? Do you like to meet with an agent or just get your business done and over with online?

Leave all of your thoughts and suggestions in the comments section [anonymously if you wish], and I’ll share them with our readers at the InsureMe Agent blog. Because voicing your opinion is one thing–sharing those thoughts with someone who can actually do something about is another.

Oh…and remember, the more ideas you leave, the less of an idiot I’ll look like.

There is a brief but uplifting report in the L.A. Times on how the number of kids without health insurance has dropped by a third in the past eight years. The federal government credits state efforts and expenditures for the increase in coverage. According to the National Center for Health Statistics, about 6.5 million children were without health coverage in last year.

The National Association of Insurance Commissioners (NAIC) introduced a new Web site that aims to help consumers cope with the “maze of options and cost considerations” when buying a health insurance policy. The site is called InsureU, and in addition to offering resources on health insurance, it provides helpful tips on buying auto, home and life insurance policies. The site’s unique organization allows users to find information relevant to their own “life stage,” i.e., age or marital status. Check it out.

According to an NPR report, nutritionists are recommending a “big increase” in vitamin D exposure. Vitamin D is credited with building healthy bones and strong muscles. Previously, scientists thought random daily exposure to the sun was enough, but long hours in the office, increased sunscreen use and dim winter rays are leaving many without adequate levels of D. Ten minutes in the midday sun should be enough–provided you’re not slathered in 45.

Lastly, it turns out that bird flu might not be the only “avian malady” to worry about. Check out these other bird-related afflictions.

According to a recent U.S. News and World Report article, more than a third of all travelers will opt for some kind of traveler’s insurance this year. (The number electing for coverage has tripled since 2001.)

The question is, should you insure your travel plans?

As is often the case after reading these painstakingly balanced articles, the answer seems to be an amalgam of the following: yes; no; maybe; perhaps; you might look into it; don’t bother; and, heck, why not?

…Read the rest of this entry »

As a new addition to the InsureMe blog squad and novice insurance writer, I am trying to learn everything I can about this amazingly complex industry in an insanely short period of time. Does that sound familiar?

If you’re looking for insurance of any kind, you probably feel as overwhelmed as I do! It is the paradox of our electronically-empowering age that we have access to so much information yet can feel so utterly helpless in the flood of available data. Lucky for you, if you’re reading this blog you’ve landed on an excellent source of tips on finding the right insurance, staying healthy, and saving money. I’ve found that the best part about this blog is that you don’t need to learn a new language (insurance-speak) to get useful information. It’s all there in plain–and often humorous–English.

In closing, I wish you the best of luck in your effort to find the right insurance. Although I am little biased, I think you’ve found a great source for practical (and readable) insurance information … I know it has helped me in the past couple of days!