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In Light of Slow Economy, New Year is Good Time for Quick Review of Insurance
KANSAS CITY (PRNewswire), December 21, 2008 - As we move into 2009, a weak economy, rising unemployment and falling home values will have important ramifications for insurance consumers nationwide. Yet, while these situations pose challenges, they also provide opportunities to save on insurance costs, according to the National Association of Insurance Commissioners (NAIC).

"Many households will enter the new year with a smaller budget and will seek ways to save money," said NAIC President and New Hampshire Insurance Commissioner Roger Sevigny. "Now is the time for consumers to get smart about their insurance and take advantage of the opportunities to maximize their coverage, minimize their costs and protect themselves financially."

In addition to the economic downturn, recent legislation across the country propels insurance to the forefront, primarily in discussions surrounding same-sex marriages.

"As same-sex couples try to understand how changes in legislation on same-sex marriages and civil unions affect them, they need to be thinking about their insurance coverage," Sevigny added. "Consumers should ensure they and their loved ones are protected -- and a good place to start is with their insurance coverage."

The NAIC offers the following tips on insurance-related concerns in the current environment that will carry into the new year.

1. Falling Home Prices Signal Time to Review Your Insurance Costs

Homeowners looking for ways to save money in 2009 should start with their insurance. In the last year, home prices nationwide declined 16.6 percent(1). With equity dwindling, it makes sense to review your homeowner's insurance and see if there are any ways to save, such as:

-- Insure your home, not the land: Homeowners policies do not provide protection for your land, so make sure the value of the land is not included as part of your coverage amount.

-- Make sure you are receiving all the discounts you are entitled to: Discounts are typically given to people who have more than one policy with the same insurer; have security or safety systems, such as smoke detectors, deadbolts and fire alarms; are 55 or older and retired; or live in homes located in eligible homeowners associations. Some insurers even offer discounts if all residents of the home are nonsmokers.

-- Consider increasing your deductible: If your deductible is $250, raising it to $500 should decrease your premiums. Raise it to $1,000 and you could save even more. Just two caveats: 1) Make sure you can pay the higher deductible if disaster strikes; and 2) Check with your lender as some home loans have a clause that specifies a maximum property insurance deductible.

-- Make home improvements: Upgrading your electrical, plumbing and heating systems could improve the safety of your home and, therefore, reduce your premiums. 2. Newly Unemployed Face Maze of Health Insurance Options

With 1.9 million(2) lost jobs in the first 11 months of 2008, many people are already struggling to maintain health insurance coverage -- and those numbers are expected to increase in 2009. A variety of choices exist, but it is important to examine options early, as some expire within weeks of losing your job.

-- Spouse's plan: A spouse's plan is typically the most affordable option, but you have to act quickly. You should request special enrollment within 30 days of losing coverage from you previous employer's plan.

-- COBRA: Rights and entitlements under the Consolidated Omnibus Budget Reconciliation Act (COBRA) guarantee access for continued coverage for 18 months if you purchase insurance through a large employer. You have 60 days to elect coverage. COBRA coverage can be expensive because you are required to pay the full premium yourself, but it is also retroactive once you elect it, so consider using those two months to evaluate other health insurance options.

-- Government plans: Check to see if you are eligible for insurance through a government program, such as Medicaid or Medicare.

-- Private plans: You can purchase coverage through private providers if you meet certain criteria. A high-deductible major medical policy will cover serious or catastrophic health costs, if you cannot afford a comprehensive plan.

3. New Laws Present Insurance Questions for Same-Sex Couples

To date, 33 states have passed bans on same-sex marriage and some states have forbidden same-sex civil unions. With new legislation and court battles throwing into question the rights of married same-sex couples, it is important to review your insurance policies to guarantee you are protected.

4. Make the Most of Your Health Insurance

Americans seeking ways to economize should first make sure they are fully using their existing health insurance benefits.

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