A Cautionary Tale

If you are someone who believes that once you pay your insurance premium you're covered, you may want to reconsider that. On Friday, West Hartford police arrested the former president of Wright Insurance Agency in Connecticut for taking premium payments and issuing forged insurance documents.

The story appeared online on FOXCT.

Always follow-up to make sure you have a policy if one doesn't come directly from the company. If in doubt about your agent, call your state insurance office to make sure they are licensed in your state.

Additional helpful information can be found at the website of the National Insurance Crime Bureau.

Build It Back Causes Sleepless Nights For My Wife

N.Y. State Sen. Andrew Lanza
(Photo: Mark Ruquet)

By Mark E. Ruquet

FEMA made my wife cry and now Build It Back is causing her to lose sleep. But there is some hope that the state will do what the city has failed to do, which is to make her and other homeowners whole again. Last Wednesday, during the Sept. 10, Midland Beach Civic Association meeting, my wife expressed her anger and frustration with the program to city officials present. She told them that their efforts to help her are failing miserably, and if completed as planned, will leave her with half the home she has now.

According to an architectural engineer from Build It Back who took measurements of our home early last week to elevate the house above the one in one hundred-year flood line, the program will not replace the space lost when they fill-in the finished basement for the elevation. Why does this upset her; because our home is a high-ranch and we live in our basement like many others in the Northeast. It is not a crawlspace for storage. It is a living area that when lost, will force members of the family to be displaced because the house is otherwise too small for everyone to live in. When she purchased the house over 30 years ago, she did so because of the basement, which she always used as a kitchen, dining room or for bedrooms over the years.

She explained that not only does the plan call for taking the space away, but what we would be left with is a home a mere two feet higher than it is now. The re-paired brick facing will be gone leaving a home sitting on pillars and open space all around. She accurately describes what we would be left with is a bungalow on concrete stilts and there is no way to argue that this eyesore does not diminish the value of the home and our quality of life.

In a broader sense, this is endemic of a system that is placing little value on the comfort of home or is striving to make people whole again. It’s nothing but band aid treatment. Two years of neglect and incompetence has been frustrating enough, but now the insult goes further when the aid we are to receive addresses part of the need and the solution diminishes the quality of life. From the comments from people around us at the meeting, we know we are not alone facing this insult. This same scenario has greeted our neighbors. Others in our community will soon find that what is supposed to be a hand of relief to aid Sandy victims is nothing more than another slap in the face.

At least one elected representative at Wednesday’s meeting heard us and agreed that this situation is unreasonable. State Senator Andrew Lanza heard my wife and said the state should try to step in and help. He made no promises, other than to see what money the state may have to help and to speak to the governor on our behalf. But he sees this for what it is — a wholly unacceptable situation that is making my wife a victim twice, once from Sandy and now from city official incompetence and intransigence. My wife hopes Mr. Lanza will keep his word and get us, and others, the help we need. But until she sees results she remains skeptical.

Her skepticism is not unfounded. A three page spread in the Sept. 5 edition of the New York Times laid out how broken the city's Build It Back program is (Titled: “Storm Rebuilding Program Mired by Its Design”). We, the victims of Sandy, in Staten Island and Brooklyn, need to make a collective effort at letting our elected officials know our displeasure with the lack of progress and how much harm their solutions are doing.

We have to ask our representatives to explain what has happened with the more than $61 billion in aid Congress approved for Sandy victims back in January of 2013. The money was to be split between victims in New York State, New York City, New Jersey and Connecticut. I don’t understand the disbursement schedule, but a good chunk of that cash had to go to New York City. A four-way split would be over $30 billion between New York State and the city. The governor’s office has said that 10,000 homes were substantially damage from the storm throughout the state. For the sake of argument, take $5 billion out for administrative costs, leaving $25 billion — if my math is right — that means $2.5 million per homeowner. Folks just need a fraction of that. So where’s the money? Where’s the help? And why is the city of New York being such a Scrooge and further ruining people’s lives?    

Everest Climbers to Foot 32% Insurance Increase

Mount Everest Shows Itself Courtesy of Jari on Flickr 

By Mark E. Ruquet

When that insurance bill comes in the mail and you begin to feel faint over the cost of the premium, you can take some satisfaction in knowing that there is someone out there paying a lot more than you. However, they can afford afford that trek through the Himalayas that will be costing them so much. If they begin to feel faint it will be for a different reason.

Reuters reports that hikers of the world’s tallest peaks, primarily Mount Everest, will have to fork over an additional 32 percent in insurance costs to cover their Sherpa guide’s insurance coverage beginning in September.

According to the report, foreign mountaineers will pay $19,000 for each guide’s insurance coverage, including medical insurance, up from $13,000. The government of Nepal says the increase is an effort to improve the compensation to the guides. The action comes after an avalanche claimed the lives of at least a dozen people on a climb of Mount Everest just this past April, one of the deadliest avalanche events, say experts.

Do check out the story, if for nothing else than to see the photo of one porter’s burden. After reading what a Sherpa earns, one has to wonder if they are not getting the short-end of the stick.

  

Driver Satisfaction With Auto Insurer on the Rise

By Mark E. Ruquet

I was cleaning my desk recently and came across this press release I thought would be of interest to many auto owners. It is a J.D. Power survey of customer’s satisfaction with their auto insurer from mid-June.

Are you happy with your carrier? J.D. Power’s annual Auto Insurance Study for 2014 says that despite continuing increases in rates policyholder’s overall satisfaction with their carrier is at its highest level in the survey’s 14-year history.

The consumer research firm said overall satisfaction increased by “a significant 16 points to 810” on a 1,000-point scale. The increase comes despite average increases of $86 in 2014, down from last year’s rise in premium of $153. The number of consumers experiencing an increase remained almost unchanged at 19 percent compared to 20 percent in 2013.

“A premium increase often triggers shopping behavior, but we’re seeing fewer people shopping,” said Jeremy Bowler, senior director of the insurance practice at J.D. Power, in a statement. “This indicates that insurers are more effectively communicating with their customers, making them aware of the premium increases when they occur and why they’re necessary, and demonstrating the value of their coverage.”

The report underscores the importance of having an agent in the insurance company relationship, finding that overall satisfaction is highest with consumers that have an agent scoring 867. These customers, the report said, are the least likely to shop and switch carriers because of their strong relationship with their agent. 

Those consumers with little relationship with an insurer scored the lowest at 742.

Smaller companies also appear to be doing a better job. J.D. Power said satisfaction with small carriers—those outside of the top 30 companies, improved by 41 points, while the top carriers saw only a 10-point improvement.

So what carriers in the New York region got the highest satisfaction rating? GEICO and State Farm were the highest with an overall score of 822. Of the 11 carriers ranked, Progressive was last with a score of 773.

However, the highest satisfaction score goes to USAA with a score of 901 — which held true on a national level and other regions of the country. J.D. Power does not include the company in its rankings because the company is only open to U.S. military personnel and their families. Three insurers New Yorkers may be familiar with, Amica Mutual, Erie Insurance and Kemper did not make the survey because of small sample size, the research firm said.

Pet Insurance Is Not Health Insurance

You love your pet? Do you treat your pet like family. Like many pet owners, you are willing to spend a lot to care for your dog, cat, bird or whatever furry friend you have at home. At one point you probably have made a visit the veterinarian and it was not cheap.

Realizing an opportunity, some insurers have offered pet insurance to help pet owners defray the high cost of medical treatment for their pets. However, buyers beware. Pet insurance is not health insurance. In fact, the policies fall under property insurance and policyholders should not expect a visit to the vet to be covered in the same way that a visit to their doctor is covered.

In California, one legislator is trying to push a bill through the state legislature that will force insurers to be transparent about the breath of coverage and no longer leave consumers guessing about what precisely they are paying for.

Please read this piece from the Sacramento Bee.

On a personal note, I hope to get back to posting regularly on my blog after taking a mental vacation of sorts.

NOAA Says Odds In Favor of Below Normal Hurricane Season

2014 Atlantic Hurricane Outlook; Courtesy of NOAA 

By Mark E. Ruquet

The National Oceanic and Atmospheric Administration (NOAA) said that it expects a normal to below-normal Atlantic Basin hurricane season this year.

NOAA said on Thursday that there is a 50 percent chance of a below-normal season, a 40 percent chance of a near-normal season and only 10 percent chance of an above-normal season. 

The NOAA Climate Prediction Center forecast said there is a 70 percent likelihood of eight to 13 named storms (winds of 39 mph or higher), of which three to six could become hurricanes, a storm with sustained winds of 74 mph or higher. Of the three to six hurricanes, one to two could become major hurricanes, Category 3, 4 or 5 defined as storms with winds of 111 mph or higher.

The forecast is near or below the seasonal averages of 12 names storms, six hurricanes and three major hurricanes, based on the average number of hurricanes during the period 1981 to 2010, NOAA said. The Atlantic Basin hurricane season begins June 1, and covers the regions of the North Atlantic Ocean, Caribbean Sea and Gulf of Mexico.

Gerry Bell, lead seasonal hurricane forecaster with NOAA’s Climate Prediction Center, said the Atlantic, which has experienced above-normal seasons in 12 of the last 20 years—“has been in an era of high activity for hurricanes since 1995. However, this high activity pattern is expected to be offset in 2014 by the impacts of El Niño, and by cooler Atlantic Ocean temperatures than we’ve seen in recent years.”

Bell said the El Niño is creating conditions of strong trade winds and wind shear over the tropical Atlantic that should produce the “near-average” ocean temperatures suggesting fewer Atlantic hurricanes.

The forecast is in line with earlier forecasts released by Colorado State University and Weather Services International. Both call for a below normal Atlantic Hurricane season this year.

Despite the forecast Joe Mimmich, FEMA associate administrator for Response and Recovery, reminded people that, “It only takes one hurricane or tropical storm making landfall to have disastrous impacts on our communities.” He underscored the need to prepare for the worse and know understand the risks from a storm in your neighborhood.

Build it Back May Finally Work

Contact information for Build it Back

By Mark E. Ruquet

For anyone seeking information about the Build it Back program and their benefit eligibility, here is a presentation made by the current
director of the program to the Midland Beach Civic Association on May 14, 2014.

This is available by clicking here on YouTube.

Speaking later about the program in an e-mail to members, Debi Vadola, the Civic Association's Vice President, said that from comments people had after the presentation it "was the first time I ever heard anything positive said about BIB [Build it Back]." She went on to say that the new director, Amy Peterson, left people with the impression that something will finally be done to help residents finally put their lives back on track.