Latest news with #insurance
Yahoo
6 hours ago
- Business
- Yahoo
What is hurricane insurance, and what does it cover?
Insurance helps you avoid financial catastrophe if a hurricane strikes your home. But you may be surprised to learn there's no such thing as a hurricane insurance policy. Hurricane insurance usually refers to a combination of home, flood, and windstorm coverages that each come into play depending on the type of hurricane damage. If you live somewhere with frequent hurricanes, having home insurance isn't enough. A standard home insurance policy doesn't cover flooding, a common cause of hurricane losses due to storm surge. Your policy may also exclude wind damage, depending on where you live. Hurricane insurance doesn't technically exist, at least as a standalone policy. Usually, hurricane insurance refers to a patchwork of coverages, primarily homeowners insurance, flood insurance, and windstorm insurance (if wind damage is excluded by your policy) that kick in if a storm damages your home or personal property. Most home insurance covers damage from rain and wind, but for protection from flood damage, you usually need separate flood insurance. If you live somewhere vulnerable to hurricanes, you may also need additional coverage for windstorm damage. Hurricane insurance usually refers to policies that protect your home and the belongings inside. But you may need other types of insurance to safeguard your finances against a hurricane. For example, auto insurance only covers damage from a hurricane or tropical storm if you have comprehensive coverage. Hurricane travel insurance is a common benefit in trip cancellation and trip interruption policies, but coverage will only apply if you buy a policy before a storm is named. Learn more: Does car insurance cover flood damage? You can often get quotes for hurricane insurance online, by phone, or through an agent. Once you find coverage that meets your needs, you'll need to review and sign the contract. Below, you'll find specifics on how to shop for each type of hurricane coverage. To get homeowners insurance quotes, you'll need to answer some questions like: Who lives in your household? Have you had previous home insurance claims? How old is your home? What type of roof do you have, and how old is it? How much would it cost to replace your home? What upgrades have you made to the home? A good rule of thumb is to get several quotes to ensure your rate is competitive. Make sure you understand what your homeowners insurance covers, as well as your premiums, deductibles, policy limits, and whether your property is insured at the actual cash value (ACV) or the replacement cost value (RCV). Learn more: Actual cash value vs. replacement cost: Understanding the difference in home insurance Expert tip: In some circumstances, you may want to purchase add-ons called endorsements for additional coverage. For example, hurricanes can cause issues with sewage systems, but most homeowner policies exclude damage from sewer and sump pump backups. Some homeowners add a water backup endorsement or a standalone policy for extra protection. Coverage typically lasts a year. Your carrier is usually required to send you a renewal notice 30 to 60 days in advance. Flooding isn't covered by most home or renters insurance, so you'll need to buy a separate policy or add coverage through a rider or an endorsement. It's possible to buy flood insurance through the private marketplace. However, most policies are issued by the National Flood Insurance Program (NFIP), a federal program managed by the Federal Emergency Management Agency (FEMA). NFIP policies are sold and administered by a network of dozens of insurers and thousands of independent insurance agents. Unlike most types of insurance, it doesn't pay to shop around for NFIP coverage. That's because all insurers and agents use the same formula to calculate premiums. Rates are based on the same three factors that are specific to your home: Where it's built How it's built Estimated cost of replacing it You may be able to lower your flood premium by making various storm upgrades, which we'll discuss in more detail shortly. You can get a flood insurance quote using the NFIP's quoting tool, and then share the quote with an insurance agent or carrier to buy a policy. Learn more: How much does flood insurance cost in every state? NFIP policies last for one year, though there's a 30-day grace period after the policy expires. Coverage will still kick in if you file a claim during this window as long as you renew your policy and pay your full premium before the grace period ends. If you want a private flood insurance quote, you can contact insurers directly or work with an agent. Private flood insurance can be cheaper and offer higher coverage limits, but a private insurer can refuse to renew your policy or raise your rate substantially if it determines your property is at high risk of flooding. Also, forgoing an NFIP policy could mean you lose out on stable rates and cost-saving subsidies. Learn more: How FEMA flood insurance works If you live in a coastal area frequently threatened by hurricanes or a Midwestern region where tornadoes are common, you might need separate windstorm coverage. Otherwise, your homeowners insurance policy likely protects you against damage from high winds. If wind damage isn't covered under your homeowners policy, you may need a windstorm endorsement or a standalone windstorm policy. You can get quotes from several companies, including your home insurance provider, to ensure you get the best rate. However, in some especially high-risk areas, you may need to buy coverage through a Fair Access to Insurance Requirements (FAIR) plan, a state insurance pool for those who can't get coverage through a private carrier. A home insurance deductible is the out-of-pocket cost you pay before coverage kicks in. In the following 19 states plus the District of Columbia, separate and distinct deductibles apply to damage from a named storm: Alabama Connecticut Delaware Florida Georgia Hawaii Louisiana Maine Maryland Massachusetts Mississippi New Jersey New York North Carolina Pennsylvania Rhode Island South Carolina Texas Virginia Washington, D.C. In some other states, home insurance companies are allowed to charge separate hurricane deductibles. Insurers can also charge separate windstorm or wind/hail deductibles. Named storm deductibles are frequently assessed as a percentage of the home's value, often ranging from 1% to 10%, according to the National Association of Insurance Commissioners (NAIC). Suppose you have a 6% named storm deductible and your home is valued at $400,000. You'd be on the hook for $24,000 if a hurricane damaged your home before insurance would kick in. You'll also need to pay a deductible if you file a flood insurance claim. NFIP deductibles are usually between $1,000 and $10,000. Your annual premiums for various types of hurricane coverage depend on a host of factors, but here are some typical costs from various sources: Median cost of homeowners insurance for an HO-5 policy with $300,000 to $324,999 worth of dwelling coverage: $1,243, according to NAIC 2022 data Typical cost of home insurance in states with separate hurricane or windstorm deductibles, according to The Zebra: $349 to $2,000+ Median cost of flood insurance through NFIP: $786 Learn more: How much is homeowners insurance? A guide to lowering costs. You could get significant insurance discounts by making your home more hurricane-resistant. Here are some common ways to save money: Find out if your city or county participates in FEMA's Community Ratings System and nudge them to join, as participation could make you eligible for insurance discounts. Get an elevation certificate to show your home's elevation relative to the estimated height that floodwater could reach in a disaster. Elevate your home above the base flood level. You could earn discounts for each additional foot of elevation. Elevating a home just one foot above the base flood elevation could land you a 30% discount on NFIP coverage. Elevate your utilities, like your air conditioner or water heater, so they'll be less likely to be damaged by storm waters. Install storm shutters and impact-resistant windows to protect your home from storm debris and other wind-related damage. Fill in basements by backfilling them, as the NFIP won't allow or cover most basements. Upgrade your roof covering. Some types of roof covering, like asphalt or fiberglass shingles, concrete or clay tiles, or metal panels, could save you money on windstorm coverage. Add flood openings or vents in ground-floor crawlspaces on two or more exterior walls. Expert tip: Review insurance discounts specific to your home through NFIP's flood insurance mitigation discount tool. Nine of the 10 most costly natural disasters that occurred through the end of 2024 were hurricanes. Below, you'll find the most expensive hurricanes in U.S. history, according to the NAIC and the NOAA. Your home is often your most valuable asset, so maintaining adequate insurance is essential. Follow these tips to make sure your hurricane coverage offers sufficient protection: There's usually a 30-day waiting period before NFIP policies take effect. Most private carriers also put a moratorium on writing new policies in regions threatened by a natural disaster 24 to 48 hours before the expected weather event, so don't wait until a hurricane is on its way to get flood insurance. Remember, a standard home policy doesn't cover flood damage, and you'll need separate wind coverage in some high-risk areas. Review your insurance documents and talk to an insurance agent if you need additional coverage. Most renters insurance policies also exclude flood damage, so you'll need a separate flood policy to cover your personal belongings. Selecting higher deductibles is usually a good way to lower your insurance premium costs. For example, buying an NFIP policy with the maximum $10,000 deductible could lower your premium by up to 40%. But coverage doesn't kick in until you've paid your deductible out of pocket, so consider opting for lower deductibles and higher premiums if you can't afford to pay your deductible with savings. A standard home policy insures your home's structure at its replacement cost value (RCV), or the amount it would cost to rebuild your home. If you're concerned that the cost of rebuilding would exceed your policy limits, look into increasing your potential payout through extended replacement cost coverage or guaranteed replacement cost coverage. Your personal property is protected under a standard home or renter's policy, so make sure you document all your belongings. Taking photos and videos can be helpful. Most policies default to actual cash value (ACV) coverage for personal property, which reimburses you based on its market value, minus depreciation. However, you can usually get RCV coverage for an additional cost. Note that flooding damage to your belongings generally isn't covered by homeowner or renters insurance – you need separate flood insurance for that. Most homeowner and renters policies provide additional living expenses (ALE) coverage (also called loss-of-use coverage), which pays for costs like temporary housing and meals if you have to relocate after your home is damaged or destroyed. Many policies limit ALE reimbursement to a specific amount of time, but you can often buy extra coverage. Keep in mind, though, that loss-of-use coverage kicks in only if the type of damage is covered by the policy. That means you won't get help from your home or renters insurance carrier if you have to relocate due to flood damage. Unfortunately, NFIP policies don't provide ALE coverage, so you'd likely have to pay out of pocket if hurricane flooding forced you to temporarily move. However, some private insurers include loss-of-use coverage in flood policies. Any damage that occurs to the house or building you rent is covered by your landlord's insurance, while renters insurance covers your personal property, like clothing and electronics. Renters insurance will often cover hurricane damage to your belongings if it's caused by something like storm winds, hail or lightning. However, you'll need a separate policy to cover your belongings from hurricane-related flood damage. Your car insurance will only kick in for hurricane damage if you have comprehensive coverage. This type of insurance isn't mandated by law, but most lenders require you to carry it while you have an auto loan. Yes, you can get flood insurance during hurricane season, which runs from May 1 through Nov. 30. However, most NFIP policies have a 30-day waiting period before they take effect. Private insurers often issue a moratorium on writing new policies in an area while it's under threat of severe weather.
Yahoo
7 hours ago
- Health
- Yahoo
BlueCross BlueShield at risk of losing CHRISTUS Health contract due to healthcare dispute
For decades BlueCross and BlueShield of Texas (BCBSTX) has been an accepted insurance provider for CHRISTUS Health, but that could all change if they cannot reach an agreement by July 1. Visit this article to learn more: KETK/FOX51 News covers East Texas, bringing you the latest local stories, weather, sports and lifestyle coverage from the Piney Woods. Keep up with KETK/FOX51 News: Download the KETK/FOX51 app: Subscribe to KETK/FOX51 News: Find us on Facebook: and
CNA
10 hours ago
- Health
- CNA
Commentary: This health insurance clash is a chance to fix issues in Singapore's healthcare system
SINGAPORE: Tensions had been simmering for months, with insurer Great Eastern encouraging its panel doctors and agents to avoid Mount Elizabeth and Mount Elizabeth Novena hospitals and instead seek care elsewhere. Things came to a sudden head on Jun 17 when the insurer announced it was suspending pre-authorisation certificates at both hospitals, citing higher charges with no discernible differences in clinical outcomes. This was unprecedented in the decades-long history between healthcare payers and providers. It is a game-changing salvo in Singapore's healthcare landscape. Now, social media is awash with accusations of 'greedy' insurers and 'predatory' hospitals. Doctors and patients scramble to shift care to other facilities for fear of rejected claims later on. IHH, the operator of the two hospitals and by far the largest private healthcare group in Singapore, argued that the Mount Elizabeth Hospitals 'house facilities and equipment that allow specialists to manage patients and perform surgeries that are not available at other hospitals' and catered to more complex patients, thus justifying higher charges. The Ministry of Health (MOH) stated it was seeking clarification from Great Eastern, cautioning that the insurer must ensure 'policyholders continue to be able to access the full benefits of their policies in accordance with the terms and conditions for claims, as stated in their policy contracts'. What should we make of all this? There are two realities to recognise and two next steps to consider. HARD REALITIES OF SINGAPORE'S HEALTHCARE LANDSCAPE The first reality is the clear mutual dependence between insurers and private healthcare providers. Without private providers, there would be no need for private health insurance. Without private health insurance, many may not be able to afford private healthcare. That said, mutual dependence does not mean mutual interests. Insurers pool risk by collecting premiums from many to cover the claims of a smaller subset, but they cannot simply be passive conduits of our money without value-adding. They seek to optimise value for claims paid out, and managing the fees charged would be expected. Conversely, private sector doctors and facilities would seek to maximise fees and charges – within ethical boundaries – for example in opportunities to sell branded drugs instead of generics or use the latest equipment when the conventional would suffice for a good outcome. Doctors' fees, traditionally 50 per cent of the total bill, have been moderated after years of insurer interventions, such as encouraging use of panel doctors with pre-agreed fees or imposing fee guidelines. Facility fees, on the other hand, have largely escaped scrutiny and today can make up two-thirds of the total bill. It is unsurprising that insurers have now turned their attention to these. The second reality is that healthcare costs are rising unsustainably and left unchecked, this will be bad for everyone. The cost of healthcare insurance benefits – which is a useful proxy for private healthcare spending – has increased in Singapore by about 12 to 13 per cent every year in the last three years. Minister for Health Ong Ye Kung has stated that the government healthcare budget doubled in the last decade, jumping from S$9 billion in 2015 to S$21 billion this year and is projected to reach more than S$30 billion by 2030. BETTER PROTECTION FOR HEALTHCARE CONSUMERS Two actions taken in unison might help with the way forward. First, strengthen consumer protection. In the ongoing saga, it's surprising that policyholders have not publicly sought more reassurance from the insurer. While Great Eastern has said policyholders 'can still receive treatment and submit claims as usual with no impact to their benefits', customers may need to pay upfront and be reimbursed some time after receiving care in the affected hospitals. But they will be hardly reassured of their benefits, without knowing if there could be disputes over services rendered and fees. There should be, at least on an exceptional basis, an appeal process and mechanisms to enable pre-authorisation for patients with more complex needs, so the affected hospitals would still be accessible without worries about advance payments. Should people be allowed to freely switch insurers? Due to underwriting at enrolment, this is fraught with challenges (particularly if one has been diagnosed with a health condition) and is not realistic in practice. MOH said in November 2024 that it ' does not believe that mandating full portability for IPs is the right solution '. This leaves customers effectively captive with only two options: exiting private insurance with relying only on MediShield Life, or accepting new policy terms and premium increases, no matter how unjust these are perceived to be. Both are poor alternatives. The former further stresses an already stretched public healthcare system and increases current and future funding commitments by the government which it may struggle to honour in prolonged economic downturns. The latter worsens public frustration with 'Big Business' and risks fomenting the perception of an elitist government pandering to commercial ahead of citizens' interests. HELP PATIENTS MAKE BETTER DECISIONS Second, focus on data and transparency for decision-making. No two patients are the same. Hence to fairly compare across doctors and facilities, multiple other data points are collected for risk adjustment. Consider two surgeons each with a patient undergoing gallbladder removal surgery: One patient has kidney and heart issues and the other an otherwise healthy marathon runner. They would have very different care protocols and journeys, such as the need for post-operative intensive care, despite going through the same surgery. With appropriate risk adjustments, policymakers, insurers and healthcare providers can assess and compare the quality and cost-effectiveness of the surgeons and facilities despite them having very different patient profiles. Customers would really prioritise only three factors for healthcare services: clinical outcome, patient experience such as waiting time and service hospitality, and price. In choosing insurance products, beyond the current terms offered, customers would want to know the historic rates of declining claims, the number of disputes between insurer and policy holder as well as the patterns of premium adjustments over the years. MOH already puts out comparisons of insurers' lifetime premiums, sample contracts, claims processing duration and pre-authorisation turnaround times. Combining these with clinical data is necessary now. Surely in a Smart Nation, all this data could be collected, analysed and made available so that all stakeholders can make better decisions. We all want the best available for the lowest costs, and in finding value, such data would greatly aid customer selection of the insurers that best meet their needs and budgets. Different facilities do have different sophistication and expertise and these should be aligned to the needs of the specific patients. GOVERNMENT'S ROLE IN TRANSPARENCY The role of the government deserves re-examination. Singapore traditionally prefers light-touch regulation, opting for market mechanisms instead. Former health minister Khaw Boon Wan used to describe healthcare as the classic case of market failure and said that when the healthcare market fails, the government should explore how to step in to make the market work better as a first step. One condition for a perfect market is typically information transparency and the government has a role in enabling meaningful public availability of information. Strong government encouragement of both insurers and providers (doctors and facilities) to collect data in standardised manners and make it available is essential. Any data framework and analytics won't be perfect – especially when we first start, but anything would be better than the current 'he says, she says' situation with customers caught in the middle with no way of understanding whose arguments are founded. Facilitated negotiations would also help tremendously. MOH already has a regular platform to facilitate discussion across insurers, facilities and doctors on industry-wide issues. It is timely to ask how this can be made more effective, perhaps by involving the insurance regulator, the Monetary Authority of Singapore (MAS). A combined MOH-MAS team with expert knowledge and regulatory powers could convene the stakeholders to find effective solutions, without resorting to heavy-handed policy that could crush innovation and compel the industry into a downward spiral with only pricing as the differentiator. DON'T WASTE A 'GOOD CRISIS' The dispute between Great Eastern and IHH is a harbinger of worse things to come if this degenerates into a cesspool of misinformation and wild accusations. Yes, healthcare costs are escalating beyond society's ability to cope and effective solutions are needed. Yes, all parties seek and will need a fair profit to continue. But the public interest must be paramount. Insurers and healthcare providers need to recognise the mutual dependence despite divergent interests, and work together. Customer rights must also be better and more forcefully represented to balance the power of the insurers and providers. The government should step in to bring the disputing parties together in constructive dialogue and actionable solutions starting with better data, better analytics and better decision-making. The pragmatic Singapore way is not to waste a 'good crisis', but seize the opportunity to correct long-festering perversions in the current system. Else, patients and policyholders could get hurt while public confidence in both the healthcare and insurance sectors erodes, to the ultimate detriment of all of us. Jeremy Lim is a public health physician and author of Myth or Magic - The Singapore Healthcare System. Taufeeq Wahab is a doctor and senior preventive medicine resident with the National University Health System (NUHS).
Washington Post
11 hours ago
- Business
- Washington Post
California court rules state insurance policy on smoke damage is unlawful
A California judge has ruled the state's bare-bones home insurance program's handling of smoke damage claims is unlawful, a decision that could have wide-ranging implications as insurers increasingly deal with the aftermath of wildfires. Home insurance broadly covers fire damage, but there is a growing dispute over what damage must be covered when flames don't torch the property. The decision Tuesday by Los Angeles Superior Court Judge Stuart M. Rice is a victory for homeowners in a state where the risk of catastrophic wildfires has intensified alongside a brewing home insurance crisis. The specific case involved Jay Aliff, who sued in 2021 over the insurance payout for his house near Lake Tahoe, which was damaged in the November 2020 Mountain View fire. His lawsuit challenged the California Fair Access to Insurance Requirements Plan, or the FAIR Plan, the state's high-risk insurance pool or the last-resort option for those dropped by private insurance companies. With high premiums and basic coverage, the FAIR Plan was designed as a temporary safety net until policyholders could find a more permanent option. Today, it has become the default option for many, with the number of residential policies reaching 550,000 in March, more than double from 2020, state data shows. Reports from other urban wildfires , in which building materials, appliances, cars and more burn at incredibly high temperatures, show increased levels of heavy metals including lead and polycyclic aromatic hydrocarbons (PAHs) such as benzene that are tied to negative health risks. But insurance companies haven't standardized testing for those contaminants. The FAIR Plan has been scrutinized for years over allegations of summarily denying smoke damage claims unless there's proof of permanent physical change, even though the California Department of Insurance has long determined that that threshold is illegal. Aliff's lawsuit claims that FAIR Plan at the time offered a fraction of the money he expected to cover the costs to remediate the damages, citing a partial denial letter that said the fire debris could be cleaned up –- and therefore didn't qualify for coverage as a 'direct physical loss' to the home. 'The things that burn are terrifying like lead, cyanide. It's not possible to get that out with Swiffer,' said Aliff's attorney, Dylan Schaffer, referring to the brand of disposable mops. Schaffer, who is also the attorney in a number of other lawsuits against the FAIR Plan related to the smoke damage issue, said the new court ruling was a game-changer in California insurance law at a time when thousands of homeowners in the recent Palisades and Eaton wildfires are still fighting for coverage. 'It is the most important decision in California insurance law in decades,' Schaffer said. 'It draws a line in the sand as it relates to where carriers can start carving out their liability and avoiding liability.' The ruling said the way the FAIR Plan limits smoke damage coverage to its definition of 'direct physical loss' was a violation of the law, stating that 'this language limits coverage reasonably expected by an insured in a manner which is not conspicuous, plain and clear.' The judge also said it was unlawful that the FAIR Plan required smoke damage to be 'visible to the unaided human eye' or capable of being 'detected by the unaided human nose of an average person' rather than 'the subjective senses of (the insured) or by laboratory testing.' 'Being unable to resort to their own senses or laboratory tests, it is entirely unclear how an insured could determine whether a particular loss is covered or not,' the court decision noted. FAIR Plan spokeswoman Hilary McLean said in a statement that the insurer has been working with the state insurance agency to update its policy language and has already eliminated the so-called sight and smell test. 'Our goal is to continue providing fair and reasonable coverage for wildfire-related losses while maintaining the financial integrity of the FAIR Plan for all policyholders,' McLean said in a statement.
Associated Press
12 hours ago
- Business
- Associated Press
California court rules state insurance policy on smoke damage is unlawful
A California judge has ruled the state's bare-bones home insurance program's handling of smoke damage claims is unlawful, a decision that could have wide-ranging implications as insurers increasingly deal with the aftermath of wildfires. Home insurance broadly covers fire damage, but there is a growing dispute over what damage must be covered when flames don't torch the property. The decision Tuesday by Los Angeles Superior Court Judge Stuart M. Rice is a victory for homeowners in a state where the risk of catastrophic wildfires has intensified alongside a brewing home insurance crisis. The specific case involved Jay Aliff, who sued in 2021 over the insurance payout for his house near Lake Tahoe, which was damaged in the November 2020 Mountain View fire. His lawsuit challenged the California Fair Access to Insurance Requirements Plan, or the FAIR Plan, the state's high-risk insurance pool or the last-resort option for those dropped by private insurance companies. With high premiums and basic coverage, the FAIR Plan was designed as a temporary safety net until policyholders could find a more permanent option. Today, it has become the default option for many, with the number of residential policies reaching 550,000 in March, more than double from 2020, state data shows. Reports from other urban wildfires, in which building materials, appliances, cars and more burn at incredibly high temperatures, show increased levels of heavy metals including lead and polycyclic aromatic hydrocarbons (PAHs) such as benzene that are tied to negative health risks. But insurance companies haven't standardized testing for those contaminants. The FAIR Plan has been scrutinized for years over allegations of summarily denying smoke damage claims unless there's proof of permanent physical change, even though the California Department of Insurance has long determined that that threshold is illegal. Aliff's lawsuit claims that FAIR Plan at the time offered a fraction of the money he expected to cover the costs to remediate the damages, citing a partial denial letter that said the fire debris could be cleaned up –- and therefore didn't qualify for coverage as a 'direct physical loss' to the home. 'The things that burn are terrifying like lead, cyanide. It's not possible to get that out with Swiffer,' said Aliff's attorney, Dylan Schaffer, referring to the brand of disposable mops. Schaffer, who is also the attorney in a number of other lawsuits against the FAIR Plan related to the smoke damage issue, said the new court ruling was a game-changer in California insurance law at a time when thousands of homeowners in the recent Palisades and Eaton wildfires are still fighting for coverage. 'It is the most important decision in California insurance law in decades,' Schaffer said. 'It draws a line in the sand as it relates to where carriers can start carving out their liability and avoiding liability.' The ruling said the way the FAIR Plan limits smoke damage coverage to its definition of 'direct physical loss' was a violation of the law, stating that 'this language limits coverage reasonably expected by an insured in a manner which is not conspicuous, plain and clear.' The judge also said it was unlawful that the FAIR Plan required smoke damage to be 'visible to the unaided human eye' or capable of being 'detected by the unaided human nose of an average person' rather than 'the subjective senses of (the insured) or by laboratory testing.' 'Being unable to resort to their own senses or laboratory tests, it is entirely unclear how an insured could determine whether a particular loss is covered or not,' the court decision noted. FAIR Plan spokeswoman Hilary McLean said in a statement that the insurer has been working with the state insurance agency to update its policy language and has already eliminated the so-called sight and smell test. 'Our goal is to continue providing fair and reasonable coverage for wildfire-related losses while maintaining the financial integrity of the FAIR Plan for all policyholders,' McLean said in a statement.
