The Bad News about Flood Insurance

On the heels of devastating damage on the East Coast due to hurricane Sandy, there has been a renewed concern about homeowners’ lack of flood insurance. While people in California don’t have to be worried about massive hurricanes, there are other dangers which are present. The Association of California Water Agencies has data to show that over the last 20 years, every county in California has at least one federal flood disaster declared. Rainwater from storms, tsunamis, mud and debris flows, as well as other types of floods are typical in California. At this time, homeowners are provided with flood insurance from the National Flood Insurance Program which is run by FEMA. It is far too expensive for insurance companies to pay for themselves so it is funded by the government. Though, it is purchased through private insurance companies as an extra to your homeowner’s insurance policy. Presently, the debt-strapped National Flood Insurance Program has a $20.8 billion cap in the amount of money it can borrow from the U.S. Treasury to pay flood-loss claims. But the program has already borrowed around $18 billion, mainly to pay for Hurricane Katrina in 2005. Flood Insurance Policies typically cost around $600 a year, but can start as low as $129 in low-risk areas, according to the Federal Emergency Management Agency. The average claim paid last year was more than $28,000. Coverage is provided for up to $250,000 for the home itself, and $100,000 for possessions. Don’t be caught off guard like the people on the eastern seaboard of the United States. Contact a helpful insurance agent at Wise Insurance Agency in Marin County today who will help you protect your property.

Prop. 103’s Influence on Car Insurance in California

Californians have a reason to smile when they compare their auto insurance rates to other states in the USA. Prices in California have seen a decline of 4 percent between 1989 and 1998. An opposite trend compared to other states which have seen increases of an average 38.9 percent, according to a new survey released by Consumer Federation of America. The Consumer Federation of America has also reported that the nation averages more than $700 per vehicle and $1,500 per household. The total that car insurance companies make is $100 billion nationwide. It is a credit to proposition 103, which was passed in 1988. This law tightened regulations to insurance, bringing lower rate increases, fewer uninsured drivers and more insurance companies to choose when buying car insurance. Prop. 103 affected these changes by forcing insurance companies to justify increases, give discounts to safe drivers, and provide customers with rate comparisons. If you feel like you are paying too much for car insurance, you deserve to compare rates from other insurance companies. Don’t forget to take advantage of the terms outlined by Proposition 103 and reap the benefits of savings. Contact an experienced insurance agent at Wise Insurance in San Rafael today