Does Your Insurance Cover Flooding?

Considering the climate is ever changing and the majority of the UK has in recent weeks (June 2007) been suffering from unusual weather and in particular rain and storms, it is now more essential and more important than ever that you know whether or not you are covered by your policy for events such as flooding.

Just recently many people have found that they didn’t have the valuable cover needed, while others were lucky and did, when torrential rains hit the UK and homes were flooded and possessions ruined. This one occurrence is thought to bring around 1,200 claims on insurance for the ones that were lucky enough to have cover.

However a sad fact is that while many people do have insurance for their homes and believe that they are totally covered, a staggering 257,000 of all claims against policies are turned down every year simply because the home owner hasn’t taken out the right policy or they didn’t bother to look at what the policy did and did not cover and have found that they aren’t covered when it comes to making a claim.

One of the biggest reasons why adequate cover isn’t taken is due to the fact that the majority of people simply take the cheapest policy they find while not looking at what the policy entails. While of course everyone wants the cheapest premium, it is also essential that you have the right amount of cover for your needs, while savings are essential on your premium in the long run cheapest isn’t always the best.

When considering your home insurance the number one thing to make sure of is that you have all the cover you need. Using a specialist broker for your home insurance is the easiest way of keeping the cost down and you are able to quickly and easily make comparisons for the same coverage from the information provided by them.

Always remember when comparing policies that they all have hidden exclusions within them and it is essential that you check these out, while one policy might offer the cheapest premiums, it might not include the same cover that a more expensive policy might and as such will cost you more in the long run if you have to pay out for added extras.

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Avoiding PMI - Private Mortgage Insurance

PMI - a recurring, monthly, unwelcome guest. It sounds similar to and is about as welcomed as a similar acronym. PMI is private mortgage insurance. This insurance policy is paid for by the homebuyer when the amount of their primary mortgage is greater than 80% of the value of the property.

You will note that the term "primary mortgage" was used. This is for a specific reason. It is not the total of all mortgages and home loans on the property that is evaluated, but rather the amount of the primary or largest mortgage on the property that can trigger PMI.

PMI is calculated by taking 0.5% of your primary loan balance and dividing it by 12 (12 monthly payments). For example, if your primary mortgage is $200,000 and you are required to pay PMI, your mortgage payments would be an additional $83.34 per month. For most homebuyers, this additional premium is a considerable financial burden to undertake.

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There are ways around PMI for those homebuyers unable to put down 20% or more on their new home. Mortgage lenders have created loan packages which include two or more home loans that when combined exceed the 80% threshold, while no one of the loans exceed that threshold. Typically there is a primary mortgage and either one or two home equity loans taken out simultaneously which are 81% - 100% (or sometimes more) of the home value. This affords the homebuyer to put less than 20% down, or perhaps put nothing down at all while at the same time eliminating the need to pay PMI.

If you know you are going to be putting less than 20% down on the purchase of your home you should immediately speak to your home lender about avoiding PMI. A good home lender will inform you about these types of packages. Though the rules on these packages may differ from state to state, the vast majority of states allow for these types of loan packages.

When you review this type of package you will note that there will invariably be a different interest rate on the mortgage than there is on the home equity loan(s). The mortgage rate may have a slightly lower interest rate or perhaps even a considerably lower interest rate. You should be able to calculate what the monthly payments would be for the combined loans and then determine if it comes out less than a single mortgage with PMI. Obviously, a good lender is only going to present you the package if the payments are cheaper than a single loan with PMI.

You are able to refinance the loans at any point and combine them into one payment. You would only do this when the value of the home is more than 20% above of the amount you will mortgage. As the value of your home increases through home improvements or time, you can receive an appraisal and speak to your home loan professional to determine if refinancing the loans into one loan makes sense.

These types of loans are often referred to as 80-10-10 loans or 80-15 loans, among other names. An 80-10-10 loan is a mortgage at 80% of the amount to be financed and than two home equity loans at 10% each. You will likely find that all three loans will have a different interest rate with this type of package. 80-15 loans are similar but would be the main loan at 80% and a secondary loan at 15% with the buyer putting down the additional 5%.

It is important to note that when financing 90% - 100% of a home, or more, the appraisal will play a key role in the loan approval process. If the appraisal does not come out at a pre-determined amount, the lender may feel that the transaction is not a sound one. You may need to go back and renegotiate the purchase price of the home or run the risk of being denied the mortgage. Most real estate contracts, however, do have a clause in them that allows the buyer out of the contract if they are denied a mortgage. You will want to speak to the lawyers and real estate agent in advance if you are planning for applying for this type of loan. Some contingency clauses in contracts specify a maximum percentage of a loan you need to qualify for and if you are denied for a loan at a higher percentage you are not protected by this clause.

It is important for you to have all of this information in place before you start your home search. By knowing how your financing is going to be handled you will be able to make sure you are protected in the transaction and you will also be able to negotiate a better deal since your financing has been completed or is close to being completed. The key is knowing in advance what percentage of the value of the home you are able to and willing to put down on your new home.

Need Insurance? Product Liability Claim

Product liability claims are common lawsuits against manufacturers and distributors of products for damage caused to consumers by defective or substandard quality of their products.

Product liability claims cannot be avoided especially if your product is a hit in the market. Increased volumes of products means increased risk of product liability suit. It is, however, a small price to pay in exchange for success.

For all you manufacturers and distributors, it is a must to get liability insurance. Product liability insurance protects you from impending lawsuits. Remember, it really pays to have product liability insurance unless you want to be listed as one of the statistics. The statistics that I am talking about is the statistics where consumers sued the manufacturers and distributors and won. They did not only win but they win big. The jury grants huge sums of awards for damages caused to a consumer. Why is this? It is because you the manufacturers make a lot of money, or so they think. This plus the fact that it’s a David vs. Goliath claim. A poor solitary consumer falls victim to one of the products of the huge money making entities. If this is not scary enough, some consumers are granted relief even if they blatant misused the product resulting in their damage.

Product liability claims are usually claimed on the ground that damage was caused or that injury was inflicted as a result of the use, misuse, handling or operation and even consumption of the product. If you think that your product is perfect or that your labeling or instructions contained in your products are impeccable, think again. Claims may arise from defects in the design, manufacturing, labeling, warnings, warranties and packaging. After the product leaves your facility, other factors may cause your product to be open for liability claims. After it leaves your factory, claims may arise from storage, transportation, handling or distribution of your products.

Product liability insurance will indemnify you against all sums which are claimed against you for bodily injury, illness, accidental loss or even damage to property arising out of the use, misuse, consumption, handling or operation of your products or goods.

If you think you can save more by not securing insurance, think about this… in some states, even deliberate misuse of your product does not exonerate you from liability as against a determined claimant.

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Getting The Best Deal On Cheap Mortgage Payment Protection Insurance

If you want the best deal on cheap mortgage payment protection insurance then without a doubt the only way to go is by purchasing shopping around and getting the cover independently from a specialist provider. A specialist provider can not only help you to make substantial savings when it comes to the premiums charged for the policy, but will also be able to ensure you get the policy most suited for your needs and, if they are reputable, should provide free advice.

When looking for a policy, never be tempted to take what the high street lenders and banks offer you when you take out your mortgage without first doing a bit of research. The cover doesn’t have to be taken alongside your mortgage regardless of the pressure techniques the lender might use to persuade you it does. While it’s true some lenders will insist that you do take out cover to protect the loan, you can choose where to buy the cover from. High street lenders in the majority simply don’t have the experience needed when it comes to selling mortgage payment protection and, as recent finings from the Financial Services Authority have proved, sales techniques are very poor. This has led to wide spread mis-selling of policies and has left many unfortunate people not being able to make a claim on their policy when needed.

All policies will have exclusions and these are often hidden in the small print and these are what you should be aware of when it comes to taking out the policy. A mortgage payment protection policy is taken out to ensure that if you should come out of work through an accident, prolonged sickness or unforeseen unemployment then the cover will provide a tax-free monthly income which means you can still pay the mortgage. However there are certain illnesses which are excluded and medical conditions that you have at the time of taking out the policy will normally be excluded, this is why it’s important that you check the small print of a policy.

When it comes to getting the best deal on a mortgage payment protection insurance policy then you simply have to go independently to a specialist for it, this is probably the only way to get a quality product while making savings on your premium.

Cheap Loan Protection Insurance Can Be Found

The consumer’s faith in loan protection has taken a beating recently, however without a doubt having the cover should be given some serious consideration and cheap loan protection insurance can be found if you know where to take it from. By far the best way to purchase your cover is to go with a standalone provider, only then can you be sure that you are going to get the cheapest quote for the premium on the loan protection.

Loan protection is usually offered alongside a loan or credit card by the high street lender, but purchasing the cover this way without first investigating your other options, is a sure way to get ripped off when it comes to paying the premium.

While not many like to think of the worst happening it can and if you should find yourself out of work due to an accident, long term sickness or unemployment then you could find yourself struggling to meet the monthly loan repayments. This is when a policy will come into play. Usually you have to be out of work for a specified amount of days but following this the cover will make sure you have enough money to pay your commitments on your loan.

Consumers do have the right to shop around for the best deal although many high street lenders will try to persuade you that the cover has to be taken out alongside the loan or credit card. Don’t fall for tricks such as these, as cheap loan protection insurance can be found by going with a specialist provider and doesn’t have to be taken alongside the loan from the same lender. You are free to shop around and you can go independently.

High street lenders are notorious in the media for over charging on the premiums for loan protection insurance often along with providing policies that are inferior to the products sold by a specialist provider. A specialist provider can not only help you to get the cheapest loan protection insurance premium but will also be able to provide you with a product of high quality which gives you the peace of mind you need should the worst come to the worst.

Faith in the product does need restoring and a specialist provider can help to do that, along with cheaper premiums and quality products a standalone provider can and will offer the best advice regarding a policy that is suitable for your needs.

An Overview of Social Security Disability Insurance

Two programs are being enacted by the federal government, which provides benefits for individuals with disability. Collectively, these programs are being referred to as "Social Security disability benefits."

• Social Security Disability Insurance Benefits Program or SSDI Benefits – authorized by the Social Security Act, Title II and is geared towards providing benefits to workers with disability and / or their dependents and surviving spouses or children.

• Supplemental Security Income program or SSI – authorized by the Social Security Act, Title XVI and aimed at giving benefits to individuals with disability whose assets and income are below a particular level.

History of Social Security Disability Insurance (SSDI) Benefits

It was in the year 1935 when the U.S. federal government set up a program geared towards providing elderly employees of commercial and industrial sectors with retirement benefits. The scheme of this program is enacted through the Federal Insurance Contributions Act or FICA, setting up a federal retirement fund that the employees are required to pay into. The employees remit into this fund through a regular deduction on their salary.

It is the Social Security and the Medicare programs that are funded after the withdrawal of FICA tax from the employees' salaries. Meanwhile, self-employed citizens can contribute to the FICA because of the federal tax returns.

By 1956, some protection policies covering the "involuntary retirement" options on the basis of disability were established. An individual, even if he / she has been forced to stop working because of a disability may still have access to the disability insurance. It would depend, however, on the period he / she have paid FICA taxes.

Objectives of SSDI

The main objective of the SSDI is to replace the regular income being received by people who have acquired a disability and can no longer work at all or hold down his/her present work, provided that he / she has remitted adequate FICA taxes.

Under the SSDI, different kinds of benefits are provided for family members when their major wage earner have acquired a disability or died.

The SSDI program is being financed by the Social Security taxes being paid by employees, employers and self-employed individuals. SSDI benefits can be paid to workers with disability, widows or widowers, and children or disabled since childhood adults if they are eligible.

Availing SSDI benefits

The Social Security has a particular definition of disability that need to be met in order to become eligible to receive SSDI benefits. The main requirement to gain medical eligibility under the SSDI program is the inability by an individual to perform any kind of Substantial Gainful Activity or SGA for 12 months or more.

This medical definition of disability is also the requirements used to become eligible under the Supplemental Security Income (SSI) program.

Determining disability

The person with disability should have been unable to perform SGA due to an impairment affecting the physical or mental capacity and is medically determinable. The impairment can also either be expected to last continuously for at least 12 months or result in death.

Receiving benefits

After meeting the requirements given by the disability evaluation and the disability is already proven, the payments of SSDI benefits will commence. The beneficiary needs to wait for a period of 5 months since it is during the sixth month after the disability began that benefits payment start. It will continue up to the second month's end of the disability.

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