Chances are your family dynamics change during the school year - older children leaving the house for college, younger children starting school or your teenager getting their driver's license, for instance.

Because so many changes are happening, you should review your insurance policies to make sure they're accurate to your current living situation.

Auto insurance
Between driving your children to school and after-school activities, you might be putting more miles on your car, which could possibly affect your policy. And if your teenager turned 16 and earned their driver's license, it's in your best interest to connect with your agent to make sure they are covered when driving your car. Another scenario that could change your policy is if you have a teenager who has left his car at home while he's away at college.

If your child is going away to school, you may be able to save some money on auto insurance premiums. If their college is at least 100 miles away, and they leave the car at home, the insurer could rate them “as resident student,” which reduces your rates but still provides coverage when they come home to visit.

If they take a car with them, the premiums may rise or fall, depending on the location of the school (assuming the car is at school for at least 30 consecutive days). If the college is in a high-risk area, your premiums would probably rise. Keep your child on your policy rather than getting a separate policy, because you may benefit from multicar or multi-policy discounts, as well as any breaks you've accumulated for being a longtime customer.

Home insurance
You may need to update all the property covered by your home insurance policy, especially as your children accumulate more expensive items like laptops, televisions and stereo systems. And if they move out of the house and into a dorm situation, you may want to consider expanding your policy to cover their property while they're away.

Dorm living/Off-campus living
If your son lives in a dorm or an apartment, then your homeowner's insurance may cover his property, up to a limit. Some companies, for example, will extend 10 percent of your home's total contents coverage to dorm room possessions. These rules vary from company to company, so ask your agent about your limits to make sure you have sufficient coverage.
 
Remember the good student discount
A good student discount is a reduction of auto insurance premiums for a young driver who falls into the “good student” category of the insurance provider. The definition of a good student varies from one insurance company to another but in general it is a student who ranks in the upper 20 percent of his or her class, has a B average or 3.0 average or is on the Dean’s list or honor roll.

A discount for a good student is based on the premise that good students are better drivers. Statistics have shown that students with higher grade point averages (GPA) tend to be more responsible when operating an automobile.

                           

There are many factors that influence the price you pay for auto insurance. The average American driver spends about $850 a year. Your premium may be higher or lower, depending on:

Your driving record
The better your record, the lower your premium. If you've had accidents or serious traffic violations, you will pay more than if you have a clean driving record. You may also pay more if you haven't been insured for a number of years.

The number of miles you drive each year
The more miles you drive, the more chance for accidents. If you drive a lower than average number of miles per year, less than 10,000, you will pay less. For instance, some companies will give discounts to policyholders who carpool.

Where you live
Insurance companies look at local trends, such as the number of accidents, car thefts and lawsuits, as well as the cost of medical care and car repair.

Your age
In general, mature drivers have fewer accidents than less experienced drivers, particularly teenagers. So insurers generally charge more if teenagers or young people below age 25 drive your car.

The car you drive
Some cars cost more to insure than others. Variables include the likelihood of theft, the cost of the car, the cost of repairs, and the overall safety record of the car.

Your Credit
For many insurers, credit-based insurance scoring is one of the most important and statistically valid tools to predict the likelihood of a person filing a claim and the likely cost of that claim. Credit-based insurance scores are based on information like payment history, bankruptcies, collections, outstanding debt and length of credit history. For example, regular, on-time credit card and mortgage payments affect a score positively, while late payments affect a score negatively.

The amount of coverage
Of course, like anything else, the more coverage you have, the more you pay. However, you may qualify for discounts.

SOURCE: Insurance Information Institute

Burglars who break into your home this summer may be after jewelry and electronic equipment, but also beware of identity theft. As you prepare to leave on vacation, it is important to protect yourself against both a physical and a virtual break-in.
 
Most burglaries occur in July and August and homeowners insurance claims due to theft total about $1 billion annually, with the average claim around $2,500.
 
Here are some recommended measures to keep your home safe:

• Keep your home well lit. Mount exterior lights in your yard or on your house so that they are out of reach of would-be burglars. Put indoor lights on a timer.
• Make it time-consuming to break into your home. Dead-bolt window and door locks can slow a burglar down.
• Make it noisy to break into your home. Invest in a burglar alarm. The most effective systems ring at an outside service, which alerts the police, fire or other emergency service.
• Make sure you have strong doors. Outside doors and frames should be made of metal or solid hardwood and be at least 1¾-inches thick and each door must fit its frame securely.
• Turn off your computer and disconnect it from the Internet. If you save personal information in your computer, make sure it is difficult to access. You do not want a hacker at work while you are on vacation.
• Keep valuables in a secure location. When possible, do not leave personal documents in your home office or desk — burglars know to look for them there. Keep important documents, expensive jewelry and other items in a safety deposit box in a bank or other secure location.

As you prepare to leave on vacation follow these additional steps:

• Have mail and packages picked up, forwarded or held by the post office. Also, stop newspaper deliveries and ask a neighbor to pick-up circulars for you.
• Leave blinds or curtains open in their usual position. This will make it appear that you are at home.
• Ask a neighbor for help. Ask a neighbor you trust to keep an eye on your home while you are away. Make arrangements for your lawn to be mowed. Only tell people you know and trust that you are going away.

Standard homeowners insurance policies provide coverage for theft of personal possessions and damage to the home caused by the break-in. With replacement cost coverage, which is only about 10 percent more than actual cash value coverage, damaged property is replaced without deducting for depreciation.

This era of the “Great Recession” has been a challenging one. Dramatic economic conditions have affected both the U.S. real estate market and the residential construction industry.

As a homeowner, you may be perplexed by the gap between the current market value for your home and the replacement cost listed on your homeowner’s insurance policy.

National data collected over the past year indicates extreme financial decline, with property market values plunging up to 40 percent in some areas, permits for new construction down by 37 percent, and foreclosure rates spiking across the county. Ironically, the costs to rebuild and repair a home are not declining at this same rate. Overall construction costs actually increased approximately 1.3 percent nationwide from January 2009 to January 2010.

Market Value vs. Replacement Cost
Market value (the price at which your home may sell today) is not the same as replacement cost (the price to repair or rebuild your home if it is severely damaged). When rebuilding a home, contractors must work with and match existing materials, which requires skilled labor that costs more. The cost to rebuild is always higher than the initial cost to build. Market value includes factors such as the quality of the local school system and popularity of the neighborhood and, therefore, is not a good indicator of the proper amount of insurance coverage for your home. The estimated replacement cost for your home, however, is a significantly more reliable indicator of the appropriate coverage limit needed in the event of a major loss.

Factors that contribute to rising construction costs:

• Varied spikes in building material costs.
• Fluctuating energy costs.
• A 3 percent increase in skilled labor from 2009-2010.
• Increased demand for imported raw materials and building products.
• Anticipated rise in inflation for 2010.

Factors that can affect home replacement cost:

• Contractor Fees – typically 15-20 percent of the overall building cost and they could be more for larger homes.
• Architectural and Related Fees – also includes interior design, engineering and other related fees. These should be included in the home replacement cost and can add another 10-15 percent of the overall building cost.
• Environmental Factors – natural disasters such as floods contribute to shortages in building materials and overall cost increases.
• Green Construction – building “green” is gaining traction among consumers; these technologies have contributed to rising construction costs from 15-20 percent more than traditional costs.
• Rebuilding Custom and Historic Homes – these materials are more expensive and fewer craftsmen specialize in custom construction; plus greater demand has led to increased skilled labor costs.

Ways to help insure your home to value:

• Make sure your replacement cost appraisal is updated every 3-5 years.
• Maintain your policy’s annual inflation guard so your coverage is in line with construction cost increase.
• Report any significant home remodeling projects or upgrades and make any necessary coverage changes.

The U.S. Senate last night approved a temporary reauthorization of the federal flood insurance program until Sept. 30. The reauthorization of the National Flood Insurance Program (NFIP) is retroactive to June 1, the date the program was halted.

The unanimous Senate vote sent the measure to President Barack Obama for his signature. The House had previously approved reauthorization.

If any additional developments occurrelated to this topic we will continue to post them. 

To help you celebrate safely this Fourth of July, the Consumer Product Safety Commission and the National Council on Fireworks Safety offer the following safety tips:

• Always read and follow label directions.
• Have an adult present.
• Buy from reliable sellers.
• Use outdoors only.
• Always have water handy (a garden hose and a bucket).
• Never experiment or make your own fireworks.
• Light only one firework at a time.
• Never re-light a "dud" firework (wait 15 to 20 minutes and then soak it in a bucket of water).
• Never give fireworks to small children.
• If necessary, store fireworks in a cool, dry place.
• Dispose of fireworks properly by soaking them in water and then disposing of them in your trashcan.
• Never throw or point fireworks at other people.
• Never carry fireworks in your pocket.
• Never shoot fireworks in metal or glass containers.
• The shooter should always wear eye protection and never have any part of the body over the firework.
• Stay away from illegal explosives.

Visit www.fireworksafety.com for information on your state laws regarding consumer fireworks use.

June 18 - The U.S. Senate again voted down a legislative package on the reauthorization of the nation's flood insurance program. Also included in the bill were jobless benefits, Medicare payments to doctors and business tax breaks.

Democrats were unable to muster the 60-vote supermajority needed in the face of solid opposition by Republicans. The vote was 56 to 40.

The National Flood Insurance Program has been unable to issue new or renewal policies since it was shut down May 31, although it is still paying claims. It is the fourth time in the past year that the program has been interrupted due to the failure of Congress to reauthorize it for an extended period.

Insurance carriers and agents have been urging Congress to pass a long-term reauthorization. The Independent Insurance Agents & Brokers of America sent a letter to the leadership of the Congress warning that "lapses in this program cause confusion and leave many homeowners and small businesses unprotected during a delicate economic period and a dangerous time of the year."

June 1 was the first day of the 2010 hurricane season which weather forecasters have predicted could be very active.

Source: Insurance Journal