The leading cause of Christmas tree fires and property damage was short circuit or ground fault (21%). In this category, electrical failure other than short circuit ranked second in number of fires, injuries and property damage with the exception of the “other known” category.

According to the National Fire Protection Association (NFPA), cords and plugs were the leading type of equipment involved in the ignition of Christmas trees.

Safety points to remember:

• Any string of lights with worn, frayed or broken cords or loose bulb connections should not be used.
• Always unplug Christmas tree lights before leaving home or going to sleep.
• Never use lit candles to decorate a tree, and place them well away from tree branches.
• Try to keep live trees as moist as possible by giving them plenty of water daily. Do not purchase a tree that is dry or dropping needles.
• Choose a sturdy tree stand designed not to tip over.
• When purchasing an artificial tree, be sure it is labeled as fire-retardant.
• Make sure the tree is at least three feet (one meter) away from any heat source and try to position it near an outlet so that cords are not running long distances.
• Do not place the tree where it may block exits.
• Safely dispose of the tree when it begins dropping needles. Dried-out trees are highly flammable and should not be left in a house or garage, or placed against the house.

Holiday Fire Safety

The winter holidays are a time for celebration, and that means more cooking, home decorating, entertaining, and an increased risk of fire due to heating equipment.

• Unattended cooking is the leading cause of home fires in the U.S. When cooking for holiday visitors, remember to keep an eye on the range.
• Provide plenty of large, deep ashtrays for guests who smoke and check them frequently. Cigarette butts can smolder in the trash and cause a fire, so completely douse cigarette butts with water before discarding.
• After a party, always check on, between and under upholstery and cushions and inside trashcans for cigarette butts that may be smoldering.
• Keep matches and lighters up high, out of sight and reach of children (preferably in a locked cabinet). When smokers visit your home, ask that they keep smoking materials with them.

 
Candle Fire Safety
December is the peak month for candle fires, with nearly twice the average number of incidents.
44% of reported candle fires in the home started in the bedroom.
Safety points to remember:

• Extinguish all candles when leaving the room or going to sleep.
• Keep candles away from items that can catch fire.
• Use candleholders that are sturdy, won’t tip over easily, are made from a material that can’t burn and are large enough to collect dripping wax.
• Don’t place lit candles in windows, where blinds and curtains can close over them.
• Place candleholders on a sturdy, uncluttered surface and do not use candles in places where they could be knocked over by children or pets.
• Keep candles and all open flames away from flammable liquids.
• Keep candlewicks trimmed to one-quarter inch and extinguish taper and pillar candles when they get to within two inches of the holder or decorative material. Votives and containers should be extinguished before the last half-inch of wax starts to melt.
• Avoid candles with combustible items embedded in them.

Via: http://www.dallasfirerescue.com/holidaysafety.htm

According to the insurance journal, Allstate insurance has asked Texas regulators to raise their homeowner insurance rates by as much as 10 percent for many of it’s customer base.

Allstate spokesman Joe McCormick told the Dallas Morning News that the industry is concerned about the potential for more wildfires, especially as the drought continues.

The rate filing with the Texas Department of Insurance seeks a 5.7 percent average statewide increase for customers of AllState Texas Lloyds, which is affects primarily renewal clients (or existing clients on older policies.  Policyholders with the new insurance product, Allstate Fire and Casualty, could face rate increases of 9.8 percent or more.

The Allstate subsidiaries cover about 585,000 Texas homeowners.

The higher rates, subject to regulatory review over the next 30 days, would take effect Jan. 26 for current customers. New customers will pay more beginning this week.

The consumer group Texas Watch has objected to higher rates.

via Allstate Rates for Texas Homeowners Could Go Up.

Dr. Robert Hartwig, CPCU | December 15, 2011

In their new report, “Repeat Offenders: How the Insurance Industry Manufactures Crises and Harms America,” co-authors Robert Hunter and Joanne Doroshow claim that that the property/casualty insurance industry “manufactures” crises in order to justify raising rates and that the industry is “anti-competitive” and in need of more regulation. Even to people unfamiliar with insurance markets, the authors and Americans for Insurance Reform (AIR), which issued the report, could not possibly come across as oblivious to the risks associated with devastating natural disasters and global economic volatility.

Insured losses from catastrophes around the globe totaled an estimated $108 billion in 2011, the second highest year in history. More than $30 billion of those losses occurred in the United States, likely the fifth or sixth most expensive year on record. Since 2004, storms like Katrina, Rita, Wilma and Ike, combined with other events have resulted in nearly $200 billion in catastrophe claims paid to millions of home, business and vehicle owners.

Over the same period of time, insurance premiums charged to businesses, actually fell by 40 percent between 2004 and mid-2011. Indeed, the cost of business insurance fell for 30 consecutive quarters before edging up by just 1 to 2 percent in the second half of 2011. In short, while near-record catastrophe losses are a challenge, they have by no means precipitated a “crisis” as AIR alleges. Insurance and reinsurance markets remain competitive, capacity is available and coverage remains affordable.

Strangely, the AIR and its authors, argue in the report that the industry’s strong capital position is evidence of excessive profits. AIR’s claim is both dangerous and factually incorrect. Buyers of insurance are the primary beneficiaries of a financially strong, stable and secure insurance industry. Millions of victims of catastrophes would no doubt agree. The fact that insurers and reinsurers entered 2011 with record capital on hand to pay claims is unambiguously a good thing for all policyholders. Moreover, over the past four years, while the Great Recession and its aftermath forced hundreds of thousands of businesses to fail, including hundreds of banks—not a single traditional property/casualty insurer failed as a result of the financial crisis and not a single valid claim went unpaid.

AIR’s implied argument that insurers should carry less capital in this era of mega-disasters and unprecedented financial market volatility is irresponsible. In addition, the suggestion that the build-up in capital is the result of excessive profits is unsupported by the facts. Indeed, the average return equity for the property/casualty insurance industry from 2000 through 2011 is 6.7 percent, barely half the 13.1 percent for the Fortune 500 group over the same period.

The bottom line is the property/casualty insurance industry is a financially strong, highly competitive, resilient and essential industry in the United States and around the world. Buyers have the ability to choose from a wide range of products offered by a multitude of competing carriers while having the confidence that their insurer will be there for them in their time of greatest need.

via III – I.I.I. Response to Americans for Insurance Reform Report.

NU Online News Service, Dec. 02, 2:16 p.m. EST

WASHINGTON—The Senate is preparing to vote on legislation next week which would extend the current National Flood Insurance Program for at least six months, confirming that the outlook for a long-term extension for the program any time soon remains cloudy at best.

Officials of the National Association of Mutual Insurance Companies (NAMIC) say the Senate leadership was working on a bill that would extend the program until May 31.

Action is needed promptly because the current extension of National Flood Insurance Program (NFIP) expires Dec. 16.

Matt Gannon, vice president of government affairs at NAMIC, says whether the extension of a continuing resolution extending all government operations until then, or as a separate bill, won’t be known until late Monday.

An extension until May 31 is more likely than passage of legislation filed Thursday by Sen. David Vitter, R-La.

Vitter’s bill, S 1864, would extend the program until Sept. 30, Gannon says.

At the same time, the Senate Banking Committee is expected to file with the full Senate today a bill reported out by the committee Sept. 8.

Gannon said the short-term extension is needed because it is unclear when the Senate will clear time for floor debate on the legislation containing the long-term extension, but such action is unlikely this year.

If extended, the next short-term bill will mean that, since 2002, there have been 13 last-minute reauthorizations of the NFIP, and on four occasions the program was allowed to lapse for extended periods of time.

However, that bill does not contain any portion of an amendment, proposed by Sen. Roger Wicker, R-Miss., that would deal with the controversial wind-vs.-water issue.

Rick Curtsinger, a spokesman for Wicker, says the filing was expected. He said the Wicker

via Congress Readies to Punt NFIP Again | PropertyCasualty360.

This will be the third short-term extension approved by Congress in the past 3 months.  In 2010, the Flood Program lapsed four times.  As a result, flood insurance coverage could not be purchased for a total of 53 days.  The insurance industry has urged both the House of Representatives and Senat to pass a five year flood program extention along with reforms geared to improve the program’s pricing and underwriting.

According to the Insurance Journal, official insurance industry spokes people from the  American Insurance Association (AIA), and the Property Casualty insurers Association of America have expressed “relief that the NFIP will not lapse but disappointment that a long term extension has not been passed.”

Tom Lutjen of the Property Casualty Insurers of America said, “We are pleased that Congress was able to avert another lapse in the flood program… we continue to urge a long-term reauthorization for the NFIP, our first priority is avoiding a program lapse.”

A lapse in the flood insurance program can have disasterous consequences on property owners, renters, and business owners across the nation.  According to FEMA, nearly 20,000 communities across the nation participate in the National Flood Insurance Program by “enforcing floodplain management ordinances to reduce flood damage.”

Allowing a lapse in the NFIP’s authorization could lead to delayed home closings for homes purchased and refinanced in coastal areas and in flood prone areas. President Obama is expected to sign the NFIP’s latest extension.  For more information on the National Flood Insurance Program and program availability, contact an insurance agent or visit FloodSmart.gov.

Understanding the role  your Dallas home insurance deductibles play in a homeowners insurance policy is an important part of getting the most out of your policy.

The  deductible is the amount you will pay out of pocket in the event of a claim before the insurance policy begins to pay out.

Depended upon the type of policy, your deductible can be a specific dollar amount or a percentage.  This is predetermined by you, your agent, and the availability. Generally speaking, the larger the deductible, the less you pay in premiums for an insurance policy.

Your home insurance deductible represents a sharing of the risk between you (the policyholder) and the insurance company.

Because places like Dallas and Houston are considered catastrophe prone areas, homeowners insurance deductibles are generally higher than other parts of the country.  As a result, Dallas homeowners, generally see a wind and hail deductibles of 1%.  While Houston area hurricane deductibles can be as high as 5%.  In other words, if you own a $100,000 home with a 5% deductible, you (the policyholder) would be responsible for the first $5000 damage as a result of a hurricane.

Here are some important things to know about deductibles (Courtesy of the Insurance Information Institute):

Raising a Deductible Can Save Money

One of the best ways to save money on a home or auto insurance policy is to raise the policy’s deductible. For example, for auto insurance, increasing the dollar deductible from $200 to $500 can reduce collision and comprehensive coverage premium costs by 15 to 30 percent. Going to a $1,000 deductible can save you 40 percent or more. But, before choosing a higher deductible, be sure you have enough money set aside to pay the deductible outright if you have a claim.

Deductibles Differ by Company and by State

Insurance is state regulated. And insurance companies must follow strict state laws. This also applies to the way deductibles are incorporated into the language of a policy, and how they are implemented. In many states a range of deductibles can be found. So if you are shopping for insurance, you should always ask about deductibles when comparing policies. For homeowners or renters insurance policies, most insurers offer a minimum $500 dollar deductible. However, raising a deductible to $1,000 or more can save upwards of 20 percent on the cost of an insurance policy.

Deductibles Do not Apply to Liability Claims

There are generally no deductibles for the liability portion of a homeowners or auto insurance policy. Instead, the deductibles apply to property damage. So, on in auto policy, there is a deductible for the optional comprehensive or collision coverage, but not for the liability portion. And, in a homeowners policy, deductibles apply to damage to the structure of the house or personal possessions but not if a homeowner is sued or a medical claim is made by someone injured in the home.

Consider Percentage Deductibles When Purchasing a Home

When looking for a new home, it is important to consider the cost of insurance.  Dallas Home insurance policy rates can vary by 200% or more.  At the same time, some companies now require carrying 2% deductible.  Remember, you will be paying for insurance the entire time you live in your home—if you are a prospective buyer and feel you cannot afford the insurance, then it may be time to consider a different home.

Source:  Insurance Information Institute

Reading information and watching footage of the Texas wildfires  reminds us of the importance of being prepared for the worst.  Record drought conditions in the state combined with dry winds can be a disaster in the making .  When wildfires start, a family can only have moments, even mere seconds, to evacuate.  For  families in this situation, being prepared takes on a whole new meaning.  Here a few tips for help you prepare your family for any type of major catastrophe.

Develop a Home Disaster Plan

Whether your disaster plan is geared towards fire, hurricane, or earthquake exposure, having a home disaster plan can make the difference between life and death in many cases.  Understand the region you  live in.  If you are new to the area, have a discussion with your insurance agent.  You and your agent can discuss the most common claims for the area.  That way, you can prepare for the most common disasters in your areas.  For example, people that live in the Houston area, are exposed to Hurricane, Wind, and Hail; remember Hurricane Ike?  Luckily, we’re in Dallas.  So you only have to prepare for fires and the occasional Tornado.  For help developing your home readiness plan, visit READY.GOV.

Review your home insurance policy

Many times people moving to a new area or purchasing a home for the first time only go with the insurance agent referred by their realtor or loan officer.  Failuring to review your policy is another recipe for disaster.  Imagine this scenario, just to get into your home, your mortgage person referred your insurance to a person that got you the absolutely lowest rate on your homeowners insurance.

Since you’re no insurance agent, you counted on your mortgage person and realtor to refer you to an insurance person that writes the proper policy.  What if that policy only covers fire and lightning coverage for your structure only?  Did you know that home policies of this type exist?  After a hailstorm or fire is the wrong time to find out that your family’s home policy only has coverage for the home’s structure.  Be sure to review your home insurance policy with your insurance agent to ensure you have more than just fire and lightning coverage.

Maintain your home inventory offsite.

Maintaining your personal inventory offsite is a big one these days.  The ever increasing power and capabilities of computers, tablets, and smartphones make it easier than ever to maintain your home’s inventory in case of a disaster.  The Insurance Information Institute offers free home inventory software online.  If you’re the techie type, you can take pictures on your smartphone and save them to a cloud storage system somewhere.  If you’re like my mom, just use the home investory software from III.

Regrdelss of wether you’re having a vacation, a cookout, or simply playing in the backyard; there are inherent risks associated with being outside around home.  Keep these tips from the Home Safety Council handy so that your next event does not turn into a trip to an emergency room.

Outdoor – Backyard Safety Tips:

A recent Home Safety Council survey states that one in three U.S. adults worry about spils and falls during the summer.  As a resul, the council recommends taking the following precautions:

Grilling Safety:

• Designate the grilling/cooking area as a no kid/ no play area.  Make sure to place all toys and playground equipment away from outdoor cooking areas.
• Consult with your local code enforcement regarding the placement of grilling equipment, but before grilling, place your grill at least 3-5 feet away from other objects.
• When using lighter fluid, only use lighter fluid that is specifically designated for your type of grill.
• Check all gas lines on your propane grill prior to use.
• Never use a leaky grill, get it fix if a leak is detected.
• Never use a barbecue grill inside; this should be common sense.
• Use barbeque mitts and long-handled tools to prevent a contact burn.

Pool Safety:

• All ways have adult supervision around pools, and spas.
• When hosting a pool part, have someone designated as a “water watcher”.  Rotate “water watchers” in 30 to 45 minute shifts.
• Learn and practice basic lifesaving techniques, including First Aid and CPR. Insist that anyone who cares for your children learn CPR.
• Keep poolside rescue equipment  close to the pool area.
• Install four-sided fencing with self-locking and self-closing gates around pools. Fencing should completely isolate the pool from the home and be least five feet high.

Playground Safety:

• Always supervise children closely.
• Cover areas under and around play equipment with soft materials such as hardwood chips, mulch, pea gravel and sand (materials should be nine to 12 inches deep and extend six feet from all sides of play equipment).
• Spread play equipment out.  That gives children room to play and fall.
• Beware of entrapment or entanglement hazards. A child’s head can be trapped in openings between 3.5 and nine inches wide. Remove strings and draw-cords from young children’s jackets to prevent strangulation.

Out-of-Town – Home Security Tips:

The FBI states that more burglaries happen in July and August than in any other months.  Before taking your final vacation of the summer, make sure you double check the following and make your home as burglar proof  as possible.

• Put bright lights over porches and walkways in the front and back.
• Make sure all exterior doors and windows have working locks.
• Make sure to do a finaly walkthrough before leaving; checking all doors and windows.
• If you have an automatic garage door, always, look over your shoulder before leaving the driveway to ensure the garage door has completely closed behind you.
• Keep your yard mowed.  That way, no one can tell if you’re away.
• Keep shades or curtains closed over garage and shed windows.
• Keep shades or curtains closed over your home windows after dark.
• Clean up your yard.
• Consider putting interior lights and yard sprinklers on a timer; giving the appearance that you’re home.
• Do yard work before you leave.
• Have a family member or friend bring in your mail and newspaper while you are gone. Give them a key to keep at their home; do not leave a key in a hiding place.
• If you use an answering machine, do not record a message that indicates you are out of town.
• Be careful about broadcasting your upcoming vacation on facebook; especially if no one will be home.

“The rating of National Lloyds Insurance reflects its solid risk-adjusted capitalization, favorable operating earnings in recent years and local market expertise within its niche of the personal property insurance market.”

In their statement, Best points out the inherent problems associated with writing homeowners and property insurance in Texas.

“The positive rating factors are somewhat offset by National Lloyds’ geographic concentration of risk primarily in the Texas marketplace, with susceptibility to frequent and severe weather-related events. This was evidenced during 2008 and 2009 when multiple hurricane and tornado/hail events negatively impacted underwriting results.”

Moving forward, it is certain insurance companies like National Lloyds will continue following trends in the insurance market by improving underwriting guidelines in an effort to remain profitable and stable for years to come.

• Check gutters. Improper drainage can lead to water in places you don’t want. Make sure downspouts drain away from the foundation.
• Use a screwdriver to probe the wood trim around windows, doors, railings and decks. Make repairs now before the spring rains do more damage to the exposed wood.
• From the ground, examine roof shingles to see if any were lost or damaged during winter. If your home has an older roof covering, you may want to start a budget for replacement. The summer sun can really damage roof shingles. Shingles that are cracked, buckled or loose or are missing granules need to be replaced. Flashing around plumbing vents, skylights and chimneys need to be checked and repaired by a qualified roofing contractor.
• If you used your chimney a lot last winter have the flue inspected and cleaned by a certified chimney sweep.
• Inspect concrete slabs for signs of cracks or movement. All exterior slabs except pool decks should drain away from the home’s foundation. Fill cracks with a concrete crack filler or silicone caulk. When weather permits, power-wash and then seal the concrete.
• Check the firewood.  Firewood should be at least 18 inches off the ground at least 2 feet from your home.
• Have your outer AC cleaned and serviced. Clean coils operate more efficiently, and an annual service call will keep the system working at peak performance levels and save you money. Change interior filters on a regular basis as prescribed by your AC professional.
• Make sure your lawn equipment is ready for heavy Texas summer use. Clean equipment and sharp cutting blades will make yardwork easier.