Variations in ‘Named Storm’ Deductibles Make Collecting Evidence Confusing

Last year was a tough one for storms, as the U.S. saw more than $200 billion worth of damage from 17 named storms. This record blew past the previous one, $159 billion in 2005, in part because people have continued to move to coastal areas and property values have increased. Over the years insurance companies have introduced “named storm” deductibles to help balance the risk between policyholders and insurers, but they bring their own issues, such as collecting evidence for coverage and other details. “Catastrophe management can make or break a carrier’s reputation, and having dedicated and knowledgeable staff is key,” says Stacey Giulianti, co-founder and chief legal officer of Florida Peninsula Insurance and Edison Insurance. Here’s what you need to know about “named storm” deductibles. A Variety of Deductible Options The biggest challenge carriers face, especially when explaining named-storm coverage to customers, revolves around the deductible, Giulianti says. “Hurricane” …

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How to Understand Your Health Insurance Coverage

Understanding ins and outs of your health insurance plan may be difficult, but it’s an important step in protecting your physical, mental and financial health. To help you out, we’ve assembled some health insurance basics that apply to almost any plan. To begin with, there are so many insurance-specific terms that it’s easy to get tripped up and confuse them. Here are four you need to understand: Deductible: This is the amount you must pay out-of-pocket before the insurance company will contribute to any of your health-related expenses. Coinsurance: This is the amount, usually a percentage, that you pay for any health care costs after you’ve met your deductible. For example, if your deductible is $1,000 and you require a service that costs $2,000 and have 25 percent coinsurance, then you pay $1,000 to meet the deductible and 25 percent of the rest ($250), for a total of $1,250. Copay …

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7 Essential Health Insurance Terms Everyone Should Know

Health insurance is full of its own lingo — and that can make bills and descriptions of benefits hard to understand. Learning the common terms that your insurance company might use is an important part of taking charge of your coverage. These terms are some of the most common — and commonly misunderstood — that you might encounter. 1. Deductible This is one of the most important terms, says Robin Solomon, a partner at Ivins, Phillips & Barker. “This is the amount you will pay out of pocket before your insurance kicks in at all,” she says. For example, if you have a $2,000 deductible, then your insurance will not pay a dollar until you reach $2,001 in expenses. As more employers switch to high-deductible plans, it’s vital to understand this term. 2. Copay The copay is the amount you have to pay for a particular service, says Jeffrey Koontz, …

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