Russo Insurance Agency Blog

Russo Insurance Agency Bloghttp://www.rickrussoinsurance.com/blog/View Russo Insurance Agency's Website Blogen-uspostmaster@www.rickrussoinsurance.comInsurance Website Builder - www.insurancewebsitebuilder.comurn:uuid:f53f3c82-af71-4719-9fe4-0aa49f966c14urn:uuid:d496bff4-38b7-4950-ac9c-b078f1269327Famers Insurance Response to 2011 Bastrop Wild Fireshttp://www.youtube.com/watch?v=ABKkPDSTEEY&feature=youtu.beWed, 15 Feb 2012 15:28:12 -0600<a href="http://www.youtube.com/watch?v=ABKkPDSTEEY&feature=youtu.be">http://www.youtube.com/watch?v=ABKkPDSTEEY&feature=youtu.be</a>urn:uuid:f792ab21-a202-4d2a-bfa7-40825fc8711cEight Money Rules of Thumb- February 2012Eight Money Rules of Thumb.pdfTue, 07 Feb 2012 12:00:43 -0600<a href="/img/~www.rickrussoinsurance.com/Eight Money Rules of Thumb.pdf">Eight Money Rules of Thumb.pdf</a>urn:uuid:41cede7b-ac2d-475a-bc36-4476796f5cebInsurance QuestionsCondo Insurance Condominium owners have unique insurance needs. Ask yourself these questions to make sure you are properly insured. 1. What does your master policy say? 2. How expensive is the association deductible? 3. How much coverage is appropri...Mon, 06 Feb 2012 11:00:01 -0600Condo Insurance Condominium owners have unique insurance needs. Ask yourself these questions to make sure you are properly insured. 1. What does your master policy say? 2. How expensive is the association deductible? 3. How much coverage is appropriate? 4. Cash value or replacement cost coverage? 5. Have you insured contents and structure? 6. Are you covered for flood and wind damage? Why should I buy life insurance? 1. Replace income for dependents 2. Pay final expenses 3. Create an inheritance for your heirs 4. Pay federal "death" taxes and state "death" taxes 5. Make significant charitable contributions 6. Create a source of savings To get additional information and a free quote please contact our office! 916-791-1901urn:uuid:598ad2ad-77ef-4c51-9a94-12108e39f423Davis-Sterling.com 01/15/2012 Newsletter- Written by Adams KesslerFANNIE MAE- Federal National Mortgage Association On December 28, 2011, the Federal National Mortgage Association (Fannie Mae) announced new condominium insurance requirements. The changes are effective for mortgage loans with application dates on...Mon, 30 Jan 2012 14:06:46 -0600FANNIE MAE- Federal National Mortgage Association On December 28, 2011, the Federal National Mortgage Association (Fannie Mae) announced new condominium insurance requirements. The changes are effective for mortgage loans with application dates on or after January 1, 2012. Fannie Mae is the nation's largest player in the secondary mortgage market. It is related to but operates different than the FHA. Instead of insuring loans, it buys FHA insured loans from lenders. Accordingly, any change in Fannie Mae policies can significantly impact the housing market in California. Walls-In Coverage. Fannie May is eliminating "walls-in" insurance coverage terminology. In addition, it is changing HO-6 coverage from no less than 20% of the unit's appraised value to an amount sufficient to repair the condominium to its condition prior to a loss whether the claim is paid by the association's property insurance, by the homeowners HO-6 policy or some combination of both. Does this mean HOAs need to insure the improvements in a unit? That is unclear. What about owner upgrades (hardwood floors, granite counter-tops, walnut cabinets, etc.)? It seems unlikely that HOA property insurers will want to be responsible for any and all improvements & betterments in a member's unit. These problems need to be resolved before the market can fully recover. Selling Guide. In addition, Fannie Mae is updating its Selling Guide to permit master or blanket insurance policies that combine insurance coverage for multiple condominiums or other residential substantially residential projects that are unaffiliated as long as the coverage meets certain specific criteria. Recommendation: If associations want to maximize the marketability of units in their developments, boards should talk to their insurance brokers about Fannie Mae's requirements and determine whether any changes need to be made to their current insurance coverage. Because Fannie Mae's requirements may conflict with CC&R provisions, boards should include legal counsel in their evaluation. urn:uuid:d53d5e69-6e0a-4679-a8b4-32f1bffb5b39A Value-Add for Brokers and AgentsA VALUE-ADD FOR BROKERS AND AGENTS.pdfFri, 27 Jan 2012 15:59:30 -0600<a href="/img/~www.rickrussoinsurance.com/A VALUE-ADD FOR BROKERS AND AGENTS.pdf">A VALUE-ADD FOR BROKERS AND AGENTS.pdf</a>urn:uuid:27db6798-6396-4dab-a16b-e11876536201Home Insurance rates likely to go higherHome insurance rates likely to go higher By Adam Belz, USA TODAYUpdated 1/3/2012 5:56 PM Comments Reprints & Permissions Homeowners insurance premiums are starting to rise after tornadoes, hail, winds and lightning slammed U.S. insurance compani...Fri, 13 Jan 2012 10:53:46 -0600Home insurance rates likely to go higher By Adam Belz, USA TODAYUpdated 1/3/2012 5:56 PM Comments Reprints & Permissions Homeowners insurance premiums are starting to rise after tornadoes, hail, winds and lightning slammed U.S. insurance companies' balance sheets throughout 2011. Storms along the East Coast, tornadoes in the Southeast and in Joplin, Mo., and earthquakes in Japan and New Zealand wreaked havoc on insurance company finances, especially firms that might have too many policyholders in certain geographic areas, says Bob Skow, CEO of the Independent Insurance Agents of Iowa. The numbers aren't in yet, since renewals don't all happen at one time, but Robert Hartwig, president of the Insurance Information Institute, says customers are starting to feel the cost of years of heavy losses, particularly in the Southeast and Midwest. "We've had record losses for four straight years," he said. "My sense is that premiums will probably rise 4% to 5%." Insurers are charging more to cover higher loss projections and the rising cost of reinsurance — insurance on their insurance. "Everybody got clobbered," Skow says. Insured losses in the U.S. in the first half of 2011 were $17.8 billion, more than the $13.6 billion insurers paid in all of 2010, according to Munich Re, a giant European reinsurance company. A few companies took enough losses they either had to scale back their exposure or became insolvent. Alfa Insurance, the second-largest home insurer in Alabama, announced in June that it would send non-renewal notices to 73,000 homeowners in the following 16 months. The late April outbreak of 300 tornadoes across the South — especially in Alabama — was the costliest storm in Alfa's history, the company reported Three small insurance companies in Joplin became insolvent because of the May tornado that destroyed much of that town. The Missouri Farm Bureau is taking over policies for the companies, which had to pay out $48 million and didn't have adequate reinsurance to cover their losses, according to the Missouri Insurance Department. Belz also reports for The Des Moines Register.urn:uuid:756f12c3-cca4-4d5e-af5d-fd7a4046d8a5Davis-Stirling.com 6/12/11 Newsletter - Written by Adams Kessler PLC:SHOULD HOA INSURANCE BE PRIMARY? QUESTION: Should the association's insurance be primary and if so should the CC&Rs be amended to state that? ANSWER: There is no law that requires an association's insurance be primary. If your governing documen...Fri, 17 Jun 2011 11:15:20 -0500SHOULD HOA INSURANCE BE PRIMARY? QUESTION: Should the association's insurance be primary and if so should the CC&Rs be amended to state that? ANSWER: There is no law that requires an association's insurance be primary. If your governing documents are silent, then it depends on whether the board wants to expand the pool of potential buyers of condominiums in the development. If so, associations must comply with Fannie Mae requirements. Fannie Mae. The Federal National Mortgage Association (Fannie Mae) is the nation's largest player in the secondary mortgage market. Fannie Mae operates differently than FHA; instead of insuring loans, it buys FHA  insured loans from lenders. Before it will buy those mortgages, Fannie Mae now requires that an association's master policy be “primary.” Doing so protects lenders who often rely on the association's insurance to protect their collateral, i.e., condominiums that secure their loans. As a result, lenders who sell their loans to Fannie Mae in the secondary market will refuse to lend in developments where the association's insurance is not primary. Overlapping Insurance. Making the association's insurance primary eliminates the difficult issue of overlapping insurance. One of the many problems with poorly written CC&Rs is when two policies (owner and HOA) cover the same property. Whenever this occurs there is the risk that insurers will invoke their "other insurance" clause. Following is a typical clause: Other Insurance. If a loss covered by this policy is also covered by other insurance, except insurance in the name of the condominium, we will pay only our share of the loss. Our share is the proportion of the loss that the applicable limit under this policy bears to the total amount of insurance covering the loss. When carriers invoke this provision, loss payments get bogged down or stalemate as carriers argue over coverage and their proportional share. This can be avoided with the following solutions: 1.  Amend CC&Rs. a.  Maintenance Defined. HOA CC&Rs should clearly define the maintenance duties of members and the association, especially when it comes to exclusive use common area. b.  Insurance Defined. CC&Rs should clearly define the insurance obligations of members and the association. When there is clarity, insurers can easily fulfill their coverage duties. c.  Primary Defined. CC&Rs should designate the association's policy as “primary” so the association pays first, regardless of any other insurance covering the same risk. 2.  Policy Language. If an association’s CC&Rs are silent as to which policy is primary (owner or HOA) and amending the CC&Rs is too difficult,  insurance purchased by boards can always be more stringent than the CC&Rs require, just not less. Thus, boards can require that the association's policy be written to be "primary," thereby satisfying Fannie Mae guidelines. RECOMMENDATION: If associations want access to an expanded pool of buyers, they need to make their insurance primary. Because of the ever-changing <a href="http://app.bronto.com/public/?q=ulink&fn=Link&ssid=532&id=kiqlcbd3d3cfsw6qd0u4wa6v5j2t8&id2=4rm7j1oh7ti22ydfnwlz50h0vh9p5&subscriber_id=bnyqsvfprkzljkqpetngmboqdcepbld&delivery_id=bhctsbejsmqdatlxglobklsxffwqbnd&tid=3.AhQ.BOqBVw.CNZc.L7CB..Tawt.b..l.FKU.a.TfUA6A.TfUrGA.2DWi_w">FHA</a>, <a href="http://app.bronto.com/public/?q=ulink&fn=Link&ssid=532&id=kiqlcbd3d3cfsw6qd0u4wa6v5j2t8&id2=k32jehaunnf55o9ri0tc5uj3tsodp&subscriber_id=bnyqsvfprkzljkqpetngmboqdcepbld&delivery_id=bhctsbejsmqdatlxglobklsxffwqbnd&tid=3.AhQ.BOqBVw.CNZc.L7CB..Tawt.b..l.FKU.a.TfUA6A.TfUrGA.2DWi_w">Fannie Mae</a> and <a href="http://app.bronto.com/public/?q=ulink&fn=Link&ssid=532&id=kiqlcbd3d3cfsw6qd0u4wa6v5j2t8&id2=cud8c172mbl6yitnrcsxd81fqkj4q&subscriber_id=bnyqsvfprkzljkqpetngmboqdcepbld&delivery_id=bhctsbejsmqdatlxglobklsxffwqbnd&tid=3.AhQ.BOqBVw.CNZc.L7CB..Tawt.b..l.FKU.a.TfUA6A.TfUrGA.2DWi_w">Freddie Mac</a> standards, boards should use insurance brokers who specialize in homeowner associations. In addition, boards should have legal counsel review and, if appropriate, amend CC&R maintenance and insurance provisions for membership approval. urn:uuid:e14bb2d3-5e55-4ed2-b847-78e09b1702cfGolden State insurance work force Welcome to my Blog, this is my first but certainly not last attempt at keeping you up to date on my industry. The link below is an article from Am Best's Review magazine, December 2010. Feel free to share with anyone interested. I am very p...Thu, 24 Feb 2011 18:12:17 -0600Welcome to my Blog, this is my first but certainly not last attempt at keeping you up to date on my industry. The link below is an article from Am Best's Review magazine, December 2010. Feel free to share with anyone interested. I am very proud to be in the insurance industry, I have seen the benefits of proper insurance coverage time and time again. I am sorry to say that I have also seen the results of being uninsured and the financial hardship as a result. We have a very simple motto here in my agency, "Get to know us before you need us". By doing so you can be certain you have the right insurance coverage in place to transfer an unfortunate financial loss to us. Keep checking back and I will do my best to keep you informed.            <a href="/img/~www.rickrussoinsurance.com/FIE in Calif .pdf">Leading Insurance writers in California</a>