Insurance and safety fire report, 2010 March

Insurance and Safety Fire Report

Office Of Commissioner of Insurance * John W. Oxendine, Commissioner

OXENDINE REMINDS CONSUMERS ABOUT IMPORTANCE OF FLOOD INSURANCE
National Flood Safety
Awareness Week is March 15-19, and Insurance Commissioner John Oxendine wants to remind Georgians that a flood policy can be a valuable addition to standard homeowners' coverage.
"Purchasing flood insurance is an important consideration for Georgia consumers, even if you think a flood is unlikely in your area," Oxendine said. "Twenty-five percent of flood claims occur in areas considered medium or low-risk for floods."
Oxendine said flood coverage is federally backed by the National Flood Insurance Program. Flood insurance is available for up to $250,000 for damage to your home. A standard flood policy will cover the basic structure as well as the furnace, water heater, air conditioner, floor surfaces (carpeting and tile) and debris clean up.
For an additional premium, you also may buy flood coverage for up to $100,000 damage to the contents of your home. Coverage is available up to $500,000 for non-residential buildings and their contents.
You can buy NFIP flood insurance directly from your property and casualty insurance agent or insurance company if your community participates in the NFIP. Your insurance agent or insurance company can confirm whether flood insurance is available to you and what it would cost. You can buy flood insurance for your home or business regardless of whether the property is in or out of a floodplain, as long as the property is located in a participating community.
It is very important to plan ahead; a flood insurance policy will not go into effect until 30 days after you buy the policy. You can obtain more information about flood insurance at http://www.floodsmart.gov.

Volume 2, Issue 2 March 2010

Inside this issue:

Arson Reward

2

Operation Safe Home

3

Boomerangers

4

Tornado Anniversary

5

Question and Answer

6

Volume 2, Issue 2

March 2010

Page 2

OXENDINE ANNOUNCES REWARDS IN HALL COUNTY ARSON CASE

On March 1, Insurance and Safety Fire
Commissioner John Oxendine and Bud Ausborn of the Georgia Arson Control Board, Inc., presented two reward checks totaling $4,500 to citizens of Hall County who provided information in a house fire that led to the conviction of an arsonist.
Checks in the amount of $1,500 and $3,000 were presented to Hall County residents Angela Winters and Marie Bryant , in a brief ceremony at the Hall County Fire Department.
The rewards were given for information that led to the arrest and conviction of a suspect for a December 2006 house fire on Broom Road in East Hall County.
Commissioner Oxendine and the Georgia Arson Control Board, Inc., sponsor the Georgia Arson Control Reward Program and the Georgia Arson Hotline. Rewards of up to $10,000 are given for information leading to the arrest and conviction of an arsonist. Anyone with information about a suspicious fire is asked to call the hotline at 1-800-282-5804. Calls are taken 24 hours a day; callers can choose to remain anonymous.
Since its inception in 1979, GAC has approved 520 rewards totaling $1,485,350.

SHOW-CAUSE HEARING RESCHEDULED FOR STEWART TITLE
Insurance Commissioner John Oxendine has ordered a show-cause
hearing for Stewart Title Guaranty Company demanding that the insurer explain why it allowed its closing attorney-agents to charge consumers arbitrary premiums, overcharge consumers, and keep money they were not entitled to.
Discrepancies were found during an examination ordered by Commissioner Oxendine of title insurance sales made by Stewart during real estate closings between Jan. 1, 2003 and Sept. 30, 2007.
The company must also answer questions about unpaid state taxes and violations of a previous order by Commissioner Oxendine.
Oxendine said the leeway the company gives its agents when charging for policies makes it impossible for consumers to catch any overcharges or even compare the company's rates with its competition. This is compounded by inconsistencies and misrepresentations by the company regarding the actual cost of a particular title policy.
The hearing is scheduled for 10 a.m. on Monday, April 12, 2010, in the Commissioner's office.

Volume 2, Issue 2

March 2010

OPERATION SAFE HOMES CONTINUES IN SEVEN COUNTIES

Page 3

This month, Insurance and Safety Fire Commissioner John
Oxendine continued his consumer outreach smoke alarm program "Operation Safe Home" in five counties across the state.
Commissioner Oxendine presented seven dozen smoke alarms and two dozen carbon monoxide detectors to fire chiefs in Thomas, Dougherty, Houston, Muscogee and Columbia Counties in brief ceremony at their Fire Headquarters.
Through Operation Safe Home, Commissioner Oxendine's office provides free smoke alarms to Georgia citizens who otherwise would not be able to purchase them. The smoke alarms are purchased at no cost to taxpayers; funds raised in the private sector are used to purchase them at cost. Through Operation Safe Home, over 100,000 free smoke alarms have been donated to needy citizens.
"Most fire fatalities occur in the home and most occur when people are sleeping," Commissioner Oxendine said. "Having a smoke alarm in your home can mean the difference between life and death. In fact, statistics consistently show that having a working smoke alarm in the house doubles your chance of getting out alive."
Any individual or business interested in contributing to Operation Safe Home may call 404-657-0831.
CHANGE YOUR CLOCK AND YOUR BATTERY
Insurance and Safety Fire Commissioner John Oxendine
wants to remind Georgians that they must change their clocks to Daylight Saving Time earlier this year and they should also change the batteries in their smoke alarms at the same time.
Oxendine said the annual change from standard time to daylight saving time, whenever it occurs, is a good time to make sure your smoke alarm is working as it should.
"Every year in Georgia there are fire fatalities in homes that didn't have smoke alarm, or where the alarms didn't function because of dead batteries," Oxendine said. "If you have a smoke alarm, make sure it's in working order. Changing the battery at least once every year and cleaning dust from the device are easy ways to ensure continued protection of your family and your property. Having a working smoke alarm doubles the chances you will survive a fire in your home."
Oxendine also recommended changing batteries in flashlights and weather radios, and having an emergency plan in place in case severe weather threatens.
Last year there were 15 fire fatalities in dwellings with no smoke alarm, and two fatalities involving nonworking detectors, Oxendine said.
Daylight Saving Time begins Sunday, March 14 at 2 a.m., when clocks are set ahead one hour.

Volume 2, Issue 2

March 2010

BOOMERANGERS AND PARENTS FACE NEW INSURANCE REALITY

Page 4

Layoffs and a dearth of new job openings continue to add
to the high rate of unemployment, leaving an increasing number of new college grads and young adults unable to make ends meet. Left with limited options, many are moving back home with Mom and Dad an increasing trend that creates important insurance consequences for these so-called "Boomerangers" and their parents to consider.

"In this economic environment, many young adults and their parents are finding themselves in a position they never expected," said Insurance Commissioner John Oxendine. "A grown child moving back home can create insurance implications that must be considered carefully and understood to ensure everyone stays protected."

A recent Pew Research Center study found that, in the past year, nearly 13 percent of parents with grown children have had at least one of their adult sons or daughters return home to live for financial reasons. Saddled with college loans and unexpected job loss, these young adults are forced to live at home until they can find a job and get their finances back on track.

The Georgia Department of Insurance recommends that families who find themselves part of this new phenomenon consider the following:

Review Your Insurance Policies

A move back home provides the perfect opportunity to review existing health, home and auto insurance coverage for both parents and children to ensure it adequately reflects the new living arrangement.

As part of the review process, families might find they can save money by combining existing insurance policies. For example, young adults renting before moving back home no longer need renter's insurance; instead, they could potentially be added to the homeowners policy. However, they need to be sure that their parents' homeowners policy has a broad enough scope to include them as "insured." Additionally, young adults might need additional coverage if the move back home forced them to rent a storage locker for their belongings or if they have big-ticket items, like jewelry, expensive electronic equipment or other valuables that may require coverage beyond what their parents' homeowners policy has currently.

Auto insurance coverage is another important consideration. Does the young adult have his or her own car that needs to be added to the parent's policy? Or does the young adult need to be added as another driver of an existing family vehicle? The good news is parents can keep any member of the family on their auto insurance policy as long as that person lives in the same house. But rates may increase, so parents should look for discounts such as those given for multiple vehicles, multiple policies (homeowners, life, health, disability), anti-theft devices and good driving records.

Parents should discuss the situation with their insurance agent to determine what level of coverage their family needs. Young adults can visit the National Association of Insurance Commissioners' dedicated section for young singles on Insure U: www.insureuonline.org/ course_singles.htm to learn more.

Volume 2, Issue 2

March 2010

Page 5

SAFETY TIPS OFFERS AT ANNIVERSARY OF ATLANTA TORNADOES

Over a 24-hour period of March
14/15 2008, eleven tornadoes swept through Georgia, including one that damaged several buildings in downtown Atlanta. Insured losses from those tornadoes were later calculated to be $500 million. On the anniversary of that severe weather event, Insurance Commissioner John Oxendine wants to remind homeowners of some important insurance tips to protect their property from tornadoes, flooding and other weather-related hazards.
While tornadoes can occur at any time of year if atmospheric conditions are right, March, April and May are considered prime months.
"Georgia's tornado season is beginning, and we want all Georgia consumers to be familiar with steps they should take to minimize property damage and financial hardship caused by storms," Oxendine said, offering these reminders and tips:
* Make a list of all valuables, furniture, electronics, etc., and photograph or videotape your possessions. Keep copies of the list, photographs and videotape in a safe place outside your home. If your home is damaged or destroyed in a natural disaster, it may be difficult for you to tell your insurance agent what you lost without proof.
* Keep your insurance policy numbers and your agent's phone number in a safe place as well.
* If disaster strikes, contact your agent or insurance company immediately.
* Protect your property from further damage. For example, if your roof is damaged, cover it with a tarp to prevent water damage from subsequent rain. Most policies will not cover such damage.
* Make sure you understand the difference between actual cash value and replacement cost coverage for your contents, and obtain the coverage that best suits your needs. With actual cash value, you will receive the current value of an item when you file a claim. In other words, you'll get only "used" prices for your furniture, TV, etc. With replacement cost coverage, your claim amount will be enough to purchase new items.
* While a standard homeowner's insurance policy covers damage from high winds and tornadoes, it does not cover damage from flooding. A separate policy must be purchased through the National Flood Insurance Program, and can only be purchased if your community participates in the national program. However, a standard mobile home policy can cover damage caused by floods. Check your policy.
If you have questions about property insurance, you can call a representative of Commissioner Oxendine's Consumer Services Division at 404-656-2070 or toll-free at 1-800-656-2298. Calls are taken from 8 a.m. to 7 p.m. Monday through Friday. You may also visit the Commissioner's Web site, www.gainsurance.org for more information.

Volume 2, Issue 2

March 2010

Question and Answer Column from Commissioner Oxendine

Page 6

Q: If I rent a car while I'm on vacation, do I need to buy the rental company's insurance?
A: Many people purchase insurance at the auto rental counter without knowing whether their existing policies or credit card benefits might already cover their needs. Meanwhile, other drivers inadvertently underinsure their rental car, placing themselves at risk.
Drivers should educate themselves before they reach the auto rental counter:
Review your auto insurance policy or call your insurance agent before
your vacation.
If your current policy doesn't offer coverage for a rental car, see if an insurance rider can be added
for a small fee.
Many credit cards include some level of collision and theft protection. In most cases, these benefits
are secondary to your personal auto insurance or the car rental company's insurance, meaning the credit card company will only pay claims after other insurance coverage has been exhausted. Call your credit card company and ask about benefits.
If you lack personal auto insurance and your credit card does not provide benefits, it might be wise to
purchase the liability insurance and collision damage waiver at the car rental counter.
Keep in mind that if it is a longer-term rental (e.g., a week, a month or more), there might be
limitations on the coverage your existing auto insurance policy provides. Check with your insurance company or agent for details.
If you don't own a car, you might want to consider purchasing a non-owner auto insurance policy,
because it provides benefits in addition to coverage for a rental car.
When traveling on business, a personal auto policy will generally not apply, so check with your
employer for guidance.
You are not alone if you find car rental insurance confusing. In a recent survey, approximately 42
percent of respondents said they were either thoroughly confused or had only a rough idea about insurance coverage when renting a car.
If you are unclear about the car rental insurance options, or are concerned that a rental company is misrepresenting information, check with our Consumer Services Division at 1-800-656-2298.