Debunking Insurance Myths - Series Part 1

Insurance is about managing risk. Insurance companies use sophisticated algorithms to determine how risky each of us is, and they price policies accordingly. That's why smokers pay more for health insurance and bad drivers pay more for car insurance.

Still, insurance can be confusing and aggressive sales agents only make the problem worse. To help clear things up, we're debunking some of the most pervasive myths about different types of insurance.

Auto Insurance

Myth: The color of the car your drive can impact your car insurance premium.

Plenty of people believe that red cars are more expensive to insure, but this is simply not true. Other factors do matter, like how old the car is and whether or not it has added safety features, but color doesn't matter. If a red car will make you happy, go ahead and buy it.

Fun Fact:

Car Insurance is as old as cars

Today, auto insurance is mandatory in countries around the world, but it began as a specialty product for early auto enthusiasts. In 1895, an English insurance agent wrote out the first automobile liability insurance policy, and the first policy in the United States appeared three years later. Massachusetts was the first state to require all drivers to have insurance, starting in 1927.

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This blog is brought to you by SERVPRO^® of Great Neck/Port Washington, a leading provider of fire and water cleanup, mold mitigation, remediation and restoration services. For more information and a full list of our services, please visit us online at www.servproofgreatneck.com or contact us at 516-767-9600.

 

 

10 States Most at Risk of Disaster - Series Final - No.'s 2 & 1

States of danger

Disasters can happen anywhere and at any time. But some places experience more than their fair share of floods, tornadoes, hurricanes, winter storms and severe weather -- so much so that certain locales earn frightening nicknames, such as Tornado Alley. No matter where you live, make sure you have the right kinds and necessary amounts of insurance coverage to protect your finances.

So where do these damaging events occur most frequently and severely? Kiplinger.com worked with the National Weather Service to identify the 10 states that have suffered the biggest estimated property losses from disasters over the past eight years. Take a look:

No. 2: Texas

Estimated property damage (2006-2013): $23.7 billion

Most frequent disasters: hail, thunderstorms, drought, tornadoes and flash floods

Weather-related fatalities (2006-2013): 313

Severe thunderstorms and tornadoes are nearly as common as tumbleweed in the Lone Star State. Also, cities close to the southern coast, such as Galveston and Houston, are often in the bulls-eye of destructive hurricanes, such as Hurricane Ike in 2008, that gain strength over the Gulf of Mexico. And wildfires -- such as the 2011 Bastrop fire that destroyed more than 1,500 homes -- are common due to extreme heat and drought conditions in the state.

No. 1: New Jersey

Estimated property damage (2006-2013): $26.4 billion

Most frequent disasters: damaging wind, winter storms, floods and flash floods

Weather-related fatalities (2006-2013): 87

 

New Jersey earns the top spot on this list, in large part due to damage wrought by Sandy -- which had weakened from a hurricane to a post-tropical cyclone by the time it the Jersey Shore -- in October 2012. The state was among the hardest hit by Sandy, which was the second-costliest storm in U.S. history, after Hurricane Katrina. Many homes and businesses were destroyed along the Jersey Shore, and a portion of the Atlantic City Boardwalk washed away. Shortly after Sandy hit, another storm brought wet snow that caused more power outages and damage.

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This blog is brought to you by SERVPRO^® of Great Neck/Port Washington, a leading provider of fire and water cleanup, mold mitigation, remediation and restoration services. For more information and a full list of our services, please visit us online at www.servproofgreatneck.com or contact us at 516-767-9600.

 

 

 

10 States Most at Risk of Disaster - Series Countdown- No.'s 4 & 3

States of danger

Disasters can happen anywhere and at any time. But some places experience more than their fair share of floods, tornadoes, hurricanes, winter storms and severe weather -- so much so that certain locales earn frightening nicknames, such as Tornado Alley. No matter where you live, make sure you have the right kinds and necessary amounts of insurance coverage to protect your finances.

So where do these damaging events occur most frequently and severely? Kiplinger.com worked with the National Weather Service to identify the 10 states that have suffered the biggest estimated property losses from disasters over the past eight years. Take a look:

No. 4: Missouri

Estimated property damage (2006-2013): $5.0 billion                                                                           Most frequent disasters: hail, thunderstorms, winter storms, floods, tornadoes                      Weather-related fatalities (2006-2013): 346

Missouri has suffered the most weather-related deaths in the last eight years. The tornado that swept through Joplin on May 22, 2011, was one of the deadliest in U.S. history (158 deaths) and generated $2.2 billion in insurance claims, according to an Insurance Information Institute analysis of data from ISO’s Property Claims Service.

No. 3: Tennessee

Estimated property damage (2006-2013): $5.1 billion

Most frequent disasters: thunderstorms, hail, winter storms, tornadoes

Weather-related fatalities (2006-2013): 224

Severe storms and tornadoes are common in Tennessee, which was among several southern states hit by the historic “super outbreak” of tornadoes in April 2011. The state’s capital, Nashville, suffered an estimated $2 billion in damage due to flooding in May 2010, and Memphis had millions of dollars’ worth of damage when the Mississippi River flooded in the spring of 2011.

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This blog is brought to you by SERVPRO^® of Great Neck/Port Washington, a leading provider of fire and water cleanup, mold mitigation, remediation and restoration services. For more information and a full list of our services, please visit us online at www.servproofgreatneck.com or contact us at 516-767-9600.

 

 

 

10 States Most at Risk of Disaster - Series Countdown - No.'s 6 & 5

States of danger

Disasters can happen anywhere and at any time. But some places experience more than their fair share of floods, tornadoes, hurricanes, winter storms and severe weather -- so much so that certain locales earn frightening nicknames, such as Tornado Alley. No matter where you live, make sure you have the right kinds and necessary amounts of insurance coverage to protect your finances.

So where do these damaging events occur most frequently and severely? Kiplinger.com worked with the National Weather Service to identify the 10 states that have suffered the biggest estimated property losses from disasters over the past eight years. Take a look: 

No. 6: Oklahoma

Estimated property damage (2006-2013) : $4.5 billion

Most frequent disasters: hail, thunderstorms, tornadoes, drought

Weather-related fatalities (2006-2013): 162

 

The Sooner State has another moniker: Tornado Alley. A massive EF5 tornado devastated Moore, Oklahoma on May 20, 2013, and the widest tornado on record hit El Reno, Okla., just 11 days later. Severe storms and twisters are so much a part of the state's weather that the National Severe Storms Laboratory and the National Weather Service’s Storm Prediction Center are located here.

Homeowners in tornado-prone states should set aside an emergency fund and take photos of all valuables in preparation for an insurance claim.

No. 5: Alabama

Estimated property damage (2006-2013): $4.9 billion

Most frequent disasters: thunderstorms, hail, tornadoes

Weather-related fatalities (2006-2013): 333

 

Alabama was hit hard by tornadoes in April 2011, especially in Tuscaloosa and Birmingham, where more than 120 people were killed. In fact, the Yellowhammer State is second only to Oklahoma for the number of EF5 tornadoes (the largest in intensity and area) that have struck there.

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This blog is brought to you by SERVPRO^® of Great Neck/Port Washington, a leading provider of fire and water cleanup, mold mitigation, remediation and restoration services. For more information and a full list of our services, please visit us online at www.servproofgreatneck.com or contact us at 516-767-9600.