February 3, 2008

Topic
Insurance Fraud Against the Consumer
How you, the consumer, can protect yourself from fraudulent companies

Guest
Erin Klug
Public Information Officer for the Arizona Department of Insurance
www.id.state.az.us

WHAT?
The mission of the Arizona Department of Insurance is to faithfully execute the state insurance laws in a manner that protects insurance consumers and encourages economic development.

WHERE?
Arizona Department of Insurance
www.id.state.az.us       AZ-DOI
2910 N. 44th St. Suite 210      Phoenix, Az. 85018-7269

QUESTIONS?
Consumer Assistance    For insurance questions/problems...
Phoenix Area:  (602) 364-2499
Tucson Area:  (520) 628-6370
Statewide:  (800) 325-2548

The Insurance Term of the Week:
Federal Insurance Administration
The "Federal Insurance Administration", FIA, is the federal agency in charge of administering the "National Flood Insurance" program. It does not regulate the insurance industry.

Larry's Tip of the Week:
Most homeowners policies don't cover against flooding. In fact about 25% of all claims come from low risk areas.

Federal disaster assistance generally offers loans to help cover flood damage, not compensation for your losses. Even then, those loans are only available if the President formally declares a disaster. Federal declarations occur in less than half of all flood events.

A flood insurance policy will reimburse you for covered losses, even if the flood is not a federally-declared disaster.

Residential insurance for flooding is usually written with coverage amounts up to $250,000 on your structure and up to $100,000 in personal property coverage. Your premium will depend upon your location, whether you are in a flood zone and the coverage limits you select. The average cost for a preferred policy in a low risk area is around $125.00 per year.

Check with your insurance adviser for rates and appropriate coverage limits.