Don't Invalidate Fire Insurance

By David Shepherd-Cross

Don't invalidate your fire insurance policy.

I find this a very strange case but it just shows how important it is to read the small print as if you ignore the conditions of the policy your policy could be invalidated.

In this case it was a condition of the FIRE insurance that the SECURITY Alarm was maintained and monitored. Times had been tough for the insured and he let the maintenance of the security alarm lapse and as the ARC had not been paid for 6 months they stopped monitoring the site.

Vandals broke in and set fire to the factory. It was a furniture company and they incurred losses of over £750,000.

The case went to the High Court, the judge had nothing but sympathy for the Directors of the Company and he took 'no pleasure' in ruling that as it was a condition of the combined insurance policy that alarm was to be monitored by an external firm, the Insurers did not have to meet the claim.

There are often conditions attached to the insurance policies we take out which relate directly to the risk. We need to make sure our cars have valid MOTs in order not to invalidate the policy. We are required to notify the insurance company if we get a speeding fine but, to my mind oddly, you do not have to tell them if you decide to do the Speed Awareness Course rather than pay the fine.

I have just come across a case, now in front of the insurance Ombudsman, where an insurance company voided the policy and returned all the premiums because the policy holder had unwittingly exceed the value of the 'valuables' within their contents insurance. They had insured the contents of their house for £60,000 but there was a clause stating that the value of the valuables should not exceed 66% of this.

They had to rush their daughter to hospital, and while they were out the thieves struck taking goods and damaging the property to the value of £70,000. When assessing the claim the loss adjusters calculated that the value if the valuables in the house exceeded £40,000. Normally claims would be 'averaged' to reflect the under insurance, but the insurance company in this case argued that the under insurance voided the policy. As I said this case is in front of the ombudsman as I write.

Back to case in hand where a fire insurance claim was dismissed as a security alarm and monitoring were allowed to lapse. Clients of ours run a hotel and there is someone on reception all the time so if the fire alarm is activated there was always someone on duty to respond. We came round to the time when the annual contract with the ARC [monitoring station] needed to be renewed. The Hotel Manger wanted to cancel it as it was considered an unnecessary expense. I said I agreed but asked him to check with his insurers to make sure they had no objections. The Insurers confirmed; monitoring was a condition of the policy.

Often with in the insurance policy there is a clause that the fire alarm is maintained in accordance with British Standards. It would be interesting to know whether a similar claim has been dismissed as the Fire Alarm has not been adequately maintained.

Firecall Ltd

Protecting People and Property From Fire

Article Source: http://EzineArticles.com/9040684

Busting common health insurance myths

By Mark Jhonson

As they apply for health insurance, many people in California have confusions about the whole idea and look for answers to queries that concern Medical insurance plan and benefits in their individual cases. Everyone may have different needs and reasons to seek insurance and while looking for a suitable California health insurance quote online, they can also consult private brokers for guidance on particular aspects.

Listed below are some common misconceptions or myths associated with health insurance and the reality behind these:

I cannot get health insurance because of my pre-existing condition - Obamacare has stopped the once common issue of being refused insurance due to pre-existing health condition. You can no longer be turned down for principal medical coverage and cannot be charged high premiums because of it. If you smoke however, you may have to pay a higher premium.

I will not be able to afford health insurance - If you feel that the cost of Medical insurance has gone way too high and you will not be able to fit it into your budget, remember that the federal government now provides subsidy for health insurance. In other words, you can get monetary help from the government to pay for your insurance. Subsidies are available not only for the people who are categorized as 'poor' but also for those with low incomes. What's more, subsidies are based on running income and not financial assets like a house or a car. So you are entitled to subsidies as per your yearly earnings and not the size of home that you live in.

Because I am old, health insurance will be too costly - Obamacare has offered solution for this problem too. Even though insurance providers are permitted to charge higher premiums as per advancing age, there is a limit as to how high can they go. Now, the premium on a health policy for the elderly cannot be more than thrice the premium for the younger members of the health plan.

Health insurance will pay for all of my healthcare expenses - Insurance does not pay for all of your healthcare costs. Even if you have health insurance, you need to pay some amount out of your own pocket every year to cover the expenses. Healthcare plans typically come with cost sharing clauses that require you to pay things such as deductibles, copays and co-insurance. Besides, you need to pay 100% of the cost of health or medical care that is not specifically covered as a benefit of your plan. A good thing is that the Affordable Care Act (Obamacare) requires health insurance to offer coverage for 10 essential health benefits that include emergency services, prescription drugs, maternity & newborn care, ambulatory patients services and laboratory services among others.

Health insurance will not pay for elective surgeries - This is not true and a number of surgeries that health insurance pays for are elective surgeries. The concept of an elective surgery should not be confused with something that is 'not medically essential'. Even a cosmetic surgery may be required for some body part to function properly. For instance some people may go for an eyelid surgery simply to undo the natural drooping of eye that starts with age, and look younger - this is not medically necessary and will not be paid for by Medical insurance. But there can be a case where due to a tumor or injury, the eye lid has drooped so much that the person cannot even see properly - here the insurance carrier is likely to pay for expenses as the treatment is required for an organ to function well.

Do not deny yourself the actual benefits of Medical insurance because of any misconceptions associated with the plans. Feel free to ask for professional help when you need details of specific concepts.