Storm Season Coming; Is Your Property Protected?

Spring has arrived, which means severe storms are likely across Missouri in the next few months. The Missouri Department of Insurance is encouraging consumers to make sure their property is protected and accounted for.

Department Director John M. Huff says consumers should review their homeowners or renters insurance policies to make sure they understand what's covered and what's not. Huff says most standard policies cover losses from fire, theft, tornadoes and strong winds and hail. But he says the standard homeowners policy does not cover damage from flooding, earthquakes or sewer and drain backups. This type of damage requires consumers to buy extra coverage.

"Don't assume you're insured against all types of damage to your home or business," said Huff. "Consumers should talk to their homeowners insurance agent to determine whether they need these extra protections."

Renters should consult an insurance agent as well. Tenants need renters insurance to cover their belongings, while landlords are responsible for insuring the building itself.

The Department of Insurance also recommends completing a list of personal possessions, including jewelry, electronics, clothing and furniture. This checklist makes filing damage claims easier, and it helps you and your agent determine how much insurance you need, and what deductibles you should select.

The department offers a downloadable Home Inventory Checklist on its website. The publication walks consumers through each room of the house to document their possessions, when they were purchased and how much they cost, if that information is available.

The National Association of Insurance Commissioners offers a free app that allows iPhone users to enter details and prices of their possessions, as well as digital photos.

As an alternative to these checklists, homeowners can take photos or video of their personal property. Regardless of what format you choose, keep a copy of your home inventory list in a fire-safe container and with your insurance agent. This list should be updated periodically.

Huff also says you should shop around every two or three years, even if you're satisfied with your current insurance policies. Rates change, and better deals may be available. Missouri has a highly competitive market for homeowners insurance, with more than 100 companies offering policies to consumers.

Consumers can file complaints or ask general questions about insurance by contacting the Missouri Department of Insurance at insurance.mo.gov or calling the Insurance Consumer Hotline at 800-726-7390.

McCaskill writes letter to FEMA seeking answers on flood maps

U.S. Senator Claire McCaskill and 26 of her colleagues this week urged the Federal Emergency Management Administration (FEMA) to help protect Missourians from skyrocketing flood insurance rates through changes to the Flood Map Modernization Program. In a letter to FEMA Administrator Craig Fugate, the bipartisan group of senators asked the agency to change its policy regarding uncertified levees when calculating who is required to buy federal flood insurance, shielding Missourians who live in high-risk flood zones from rising insurance costs.

“We support FEMA’s efforts to maximize taxpayer dollars by choosing simpler, more cost effective modeling techniques when appropriate,” the senators wrote. “However, in cases where FEMA treats a flood control structure as if it has been completely wiped off the map, we may be unnecessarily devaluing property and hurting the economies of cities, towns, counties and businesses.”

In this letter, the senators said they believe FEMA has the capabilities to acknowledge that some levees provide a level of protection, and they shouldn’t be ignored. The senators added that with the nation still recovering from the worst economic downturn in 80 years, sticking with such a simplified mapping program could suppress some Americans’ property values and slow the financial recovery. Read the full letter here.

Last March, McCaskill also signed a letter to the U.S. Army Corps of Engineers expressing similar concerns about the accuracy of the mapping process. That letter is available here.

HHS: Millions of Americans could be denied health insurance due to preexisting condition

Health and Human Services Secretary Kathleen Sebelius today released a new analysis showing that, without the Affordable Care Act, up to 2.6 million non-elderly Missouri residents who have some type of pre-existing health condition, like heart disease, high blood pressure, arthritis or cancer, would be at risk of losing health insurance when they need it most, or be denied coverage altogether. Across the country, up to 129 million Americans would be at risk.

Under the full range of policies in the Affordable Care Act to be enacted by 2014, Americans living with pre-existing conditions are free from discrimination and can get the health coverage they need, and families are free from the worry of having their insurance cancelled or capped when a family member gets sick, or going broke because of the medical costs of an accident or disease. Repealing the law would once again leave millions of Americans worrying about whether coverage will be there when they need it.

“The Affordable Care Act is stopping insurance companies from discriminating against Americans with pre-existing conditions and is giving us all more freedom and control over our health care decisions,” said Secretary Sebelius. “The new law is already helping to free Americans from the fear that an insurer will drop, limit or cap their coverage when they need it most. And Americans living with pre-existing conditions are being freed from discrimination in order to get the health coverage they need.”

The analysis found that:

• Anywhere from 50 to 129 million (19 to 50 percent) of Americans under age 65 have some type of pre-existing condition. Examples of what may be considered a pre-existing condition include:
  • Heart disease
  • Cancer
  • Asthma
  • High blood pressure
  • Arthritis
• Older Americans between ages 55 and 64 are at particular risk; 48 to 86 percent of people in that age bracket live with a pre-existing condition.
• 15 to 30 percent of people under age 65 in perfectly good health today are likely to develop a pre-existing condition over the next eight years.
• Up to one in five Americans under age 65 with a pre-existing condition – 25 million individuals – is uninsured.

Prior to the Affordable Care Act, in the vast majority of states, insurance companies in the individual market could deny coverage, charge higher premiums, and/or limit benefits based on pre-existing conditions. Surveys have found that 36 percent of Americans who tried to purchase health insurance directly from an insurance company in the individual insurance market encountered challenges purchasing health insurance for these reasons.

A number of protections are already in place thanks to the Affordable Care Act. Insurers can no longer limit lifetime coverage to a fixed dollar amount or take away coverage because of a mistake on an application. Young adults have the option of staying on their parents’ coverage up to the age of 26 if they lack access to job-based insurance of their own, and insurers cannot deny coverage to children because of a pre-existing condition.

Many uninsured Americans with pre-existing conditions have already enrolled in the temporary high-risk pool program called the Pre-existing Condition Insurance Plan (PCIP), which provides private insurance to those locked out of the insurance market because of a preexisting condition. The PCIP program – which has already saved people’s lives by covering services like chemotherapy – serves as a bridge until 2014, when insurance companies can no longer deny or limit coverage or charge higher premiums because of a preexisting condition. There is a Pre-existing Condition Insurance Plan available in every State, and more information can be found at www.HealthCare.gov or by calling 1-866-717-5826.

In addition to the ban on discrimination against people with preexisting conditions, in 2014, individuals and small businesses will have access to new, high-quality insurance choices through competitive marketplaces called health insurance Exchanges.

The report can be found at www.HealthCare.gov/center/reports/preexisting.html, and more information about the new protections created by the Affordable Care Act and the Pre-existing Condition Insurance Plan can be found at www.HealthCare.gov.