A 2008 wind storm is still causing problems for Ohio homeowners. This time instead of downed trees and ripped off roofs, homeowners are having to deal with higher homeowners’ insurance rates. According to the Ohio Department of Insurance, rates increased by an average of 9.7 percent. The Ohio Department of Insurance surveyed the top ten providers of homeowners’ insurance, according to the Dayton Business Journal.

The increase comes on the heels of a seven percent increase in 2008, which at the time was the largest jump in five years, according to reports. Insurance companies say they paid out more than $1.4 billion in 2008 as a result of the September wind storm that left millions without power for days. The storm was what was left of Hurricane Ike, wiping out power to 1.9 million electricity customers in the Dayton area.

In addition to increased homeowners’ insurance rates, Ohio residents will also see a 2.8 percent increase in auto insurance rates. But despite the increases, reports show that Ohio is still the sixth lowest in the country for homeowner’s insurance rates and the 11th lowest for auto insurance rates.

Many auto insurance companies are trying to keep your business by offering perks and incentives. Wondering what all of these things mean? Here are some key auto insurance terms defined:

Accident Forgiveness: In the past, every time you got in an accident your insurance premiums soared and you ended up paying way more. But now many insurance companies are offering accident forgiveness. If you’re in an accident that is your fault, accident forgiveness will protect your driving record and prevent your rates from skyrocketing.

Deductible Rewards: Many insurance companies have realized how annoying it is to be a great driver, but not get any incentive for it. Now with deductible rewards the insurance company will take a certain amount of money off of your Collision deductible every year you go without having an accident.

Safe Driving Bonus: When you don’t get into accidents, the insurance company doesn’t have to spend any money on you. Now some companies are giving you a piece of your money back as a reward for being a safe driver. Every six months to a year they’ll cut you a check if you haven’t had any issues. The amount of the check is usually equal to a small percentage of your premium.

New Car Replacement: This term is just like it sounds. Since cars lose their value so quickly, drivers who totaled their new cars ended up with a bad deal. They’d get the money equal to what their car was worth, which worked out to be a bad deal. Now some auto insurance providers are promising to give you a new car if yours is totaled within the first three years– not just the depreciated value.

The U.S. House of Representatives is moving closer to approving a bill that would extend the flood insurance program for five years. Called the Flood Insurance Reform Priorities Act of 2010, the bill has the support of both the Independent Insurance Agents and Brokers of America (The Big “I”) and the National Association of Professional Insurance Agents (PIA National) according to the Insurance Journal.

Once passed by the House, the Senate will need to pass the bill as well. Insurers are hoping lawmakers take out a portion of the bill that removes anti-concurrent clauses from flood policies. “The recent series of expirations and temporary extensions is negatively impacting the market,” Robert Rusbuldt, Big “I” president and CEO, told the Insurance Journal. “The Big ‘I’ commends the House for passing this bill which is a step in the right direction to a long-term extension of the NFIP [National Flood Insurance Program] and includes much-needed reforms to the critical program.”

The NFIP is currently set to expire at the end of September once again. In the past, lawmakers have extended the program five years at a time which provides stability to the insurance marketplace. Although in the past year, Congress has begun extending the program for smaller periods like a month or six months, which has made it difficult for homeowners and those in the insurance industry. “This bill contains many provisions that PIA has consistently advocated,” PIA National Director of Federal Affairs Mike Becker told House Speaker Nancy Pelosi and Minority Leader John Boehner according to the Insurance Journal. “Perhaps most significantly, H.R. 5114 extends the flood insurance program through the end of 2015. This would finally end the uncertainty that has resulted from a series of short-term NFIP reauthorizations.”

Everyone is looking for ways to cut costs these days and your auto insurance coverage may have some hidden savings. Here are four ways you can lower auto insurance costs.

1. Reduce Coverage on Older Cars. Have a car that’s been around the block about a million times? Make sure you’re not buying more insurance than you need. There is no need to insure the car for more than it’s worth. If your car is totaled, you’ll only be able to get the value of what the car was worth anyway. Experts say it may be OK to drop collision and comprehensive coverage if your car is worth less than ten times the premium.

2. Raise Your Deductible. Going from a $250 deductible to $1000 can cut your monthly costs by as much as 40% which is no small savings. Just make sure you consider how easily you’ll be able to come up with the cash for the deductible if something were to happen.

3. Shop Around for Your Teen. Most people just assume that adding their teen drivers onto their own policies is the cheapest way to go, but that’s not necessarily true. You may be surprised what kind of rates you can find when you shop around with other companies that specialize in high-risk drivers.

4. Ask About Discounts. People that work from home or use public transportation can score cheaper rates because they’re not driving as much. Ask your auto insurance agent if there are any discounts available that you may qualify for. If you’ve been a customer for a while they may give you a lower rate or if your car has added security features.

A new study released by the Kaiser Health Foundation found that millions of people who pay for their own insurance are facing big increases in premium costs. The study says that most people in the US get health insurance through an employer, but there are 14 million under the age of 65 who purchase it through the individual market. And three out of four of those people have recently been told their rates were on the rise.

The study found that the average recent rate increase was 20 percent. Most are paying the increase, but some are switching plans or changing to a different company. “With people in the individual market being hit with average increases of 20%, the survey shows that the steep increases we have been reading about over the last several months are not just extreme cases,” Kaiser Family Foundation President and CEO Drew Altman said in a news release.

The survey found that the average annual premium for someone paying for their own insurance is $3,606 while those with employer-sponsored coverage have annual premiums that are $4,824 on average. Typically older people say they’re paying higher premiums than younger people.  The survey questioned 1,038 people between the ages of 18-64 who pay for their own health insurance coverage.

People who get laid off on or after June 1 can no longer turn to the government for help to cover 65% of their premium costs for COBRA health coverage. COBRA lets workers stay on their former employer’s group health plan for a period of three months. This assistance that once came from the government expired on June 1, and it does not appear that lawmakers will continue it according to the Wall Street Journal.

A new jobs bill once held an extension of the COBRA payment plan, but it was removed. The bill is now in the Senate. Those who lost their jobs between September 2008 and May 31, 2010 could still apply for insurance assistance for up to 15 months. Their former employer would be responsible for paying health insurance costs plus a two percent administrative fee. Under subsidies provided by the economic stimulus package, premiums run $387 on average. Without the assistance, family premiums jump to over $1100 a month. For those who lose their jobs after June 1, the government will no longer pick up that $720 difference.

Families USA found that those laid off after June 1 would have to spend 84% of their monthly unemployment insurance checks on COBRA premiums in order to keep their families covered. Unemployment checks are about $1,313 on average. However in 11 states unemployment income actually would not be enough to cover insurance costs. ”It’s ironic that in a little over two months after health reform passed and is designed to achieve significant coverage improvement, in the short term we will go backwards,” said Ron Pollack, executive director of Families USA, in a Wall Street Journal report.

Another option would be finding individual coverage which could be cheaper, as long as there are no preexisting conditions. “Cobra coverage is so expensive, but the alternatives are either going without coverage or having to go to the individual market,” Park said to the Wall Street Journal. “As long as there’s not a gap of 63 days or more in coverage, you’re guaranteed access to the individual market so insurers can’t deny you. But it may not provide the same comprehensive benefits.”

The oil leak in the Gulf of Mexico is the worst in US history, but according to the Wall Street Journal it won’t lead to huge insurance claims. But that doesn’t mean insurance companies won’t hike premiums. Experts predict the oil leak will cause losses of about $611 million for insurance companies. But as the oil leak continues to gush, that number could rise. Zurich-based insurance company Swiss Re has been the hardest hit by the oil leak and estimates that it will cost about $200 million. Experts say just 20% of the losses stemming from the oil leak are covered by insurance companies. BP will take the largest hit and officials say the company self-insured the risk instead of purchasing liability insurance.

Besides BP, other victims of the oil leak include fishermen and businesses involved in the tourist industry. “In our view, potential business interruption claims represent the largest unknown for insurers,” Moody’s said in a Wall Street Journal report. A hurricane hitting the gulf could make one of the worst disasters in US history even worse for the insurance industry. “Depending on the strength and track of the hurricanes, vast amounts of the existing oil slick and dispersant agents could be captured by the storm and driven well inland by the storm surge,” said Alex Sosnowski, senior meteorologist at Accuweather in a GreenBusienss.com report.

Experts predict that insurance costs for oil rigs will jump, as will prices for offshore energy liability insurance because insurance companies are expected to reevaluate the risks of drilling in deep waters. According to GreenBusiness.com those rates could rise up to 50 percent. Officials say the oil leak could also drive property insurance premiums up by 15 to 25 percent for shallow offshore projects.

A congressional committee approved a bill that would overhaul the National Flood Insurance Program. This move impacts more than five million homes and businesses that are sitting in flood-prone areas, according to a Reuters report. The program had recently expired, causing issues for anyone wanting to sell or buy property in a flood zone.  Here’s a look at the changes that would happen if it is approved by the House and Senate:

• It would continue the program for five years until September 30, 2015.
• New rate maps for flood zones would be delayed. This would help homeowners facing higher insurance rates.
• The bill would also overhaul the program’s administrators so it can function more efficiently.

Democrat Maxine Waters chairs the subcommittee working on this issue and says they have figured out cost-saving methods which is important since the program has carried massive debt since the destructive 2004 and 2005 hurricane seasons. “The focus on NFIP should be on providing coverage for those vulnerable to natural disasters, not to subsidize the wealthiest Americans, so we are phasing out premium subsidies for second homes and vacation homes, which will save the program a lot of money,” Waters said in a statement according to Reuters. The House of Representatives Financial Services Committee approved the bill.

Insurance providers including Allstate, Travelers, Hartford Financial Services and Fidelity National Financial all have a big involvement in the National Flood Insurance Program. The program is administered by FEMA to provide flood coverage. They buy the coverage from about 90 companies that sell policies and collect premiums for the government. Those premiums are given to FEMA. “A long-term reauthorization of the NFIP is extremely important, especially for Americans living in flood-prone areas,” Blain Rethmeier, spokesman for the American Insurance Association, said in a Reuters report. The Independent Insurance Agents and Brokers of America, also known as Big “I”, issued a statement of support for the move. “The continued short term extensions of the NFIP have caused considerable confusion in the marketplace,” said Charles Symington, senior vice president of government affairs for the Big “I”. “We strongly support the Financial Services Committee’s efforts to pass a long term extension of this important program and hope that the full House and Senate will consider this legislation promptly.” 

Millions of people worldwide are finding out what it means to be stuck. A volcano eruption in Iceland caused plumes of thick ash to limit visibility and ground airplanes. Some travelers found themselves stuck in airports and hotels, unable to get home, or forced to cancel their vacation plans. Turns out, travel insurance may have been a wise purchase.

Jim Grace, President of the US Travel Insurance Association told KOMO that most travel insurance policies cover cancellations due to medication, terrorism or when the travel company goes bankrupt. And you can also add volcanoes to that list. “A typical policy will cover weather-related events which is actually what we’re talking about with this ash plum, they consider that wind carrying the ash, hence weather,” says Grace.

How much will a decent travel insurance policy set you back? Experts say a good rule of thumb is four to eight percent of the cost of your trip. It may not be worth the investment if you’re just taking a weekend getaway, but for that once in a lifetime trip, travel insurance will offer peace of mind. “If you’re buying a travel investment — it’s the trip of a lifetime, a honeymoon … and it’s a big event and you’re investing thousands, if not tens of thousands of dollars, it probably would make sense to consider insurance to protect that investment,” said John Pittman in a CNN report, vice president of industry affairs for the American Society of Travel Agents.

Right now, about one in three American travelers bother with purchasing travel insurance, according to statistics from the US Travel Insurance Association. Since September 11, the SARS outbreak and the H1N1 scare, more people are deciding to purchase travel insurance, according to Grace and after the volcano delays, sales may erupt.

If you decide you want travel insurance, you must buy it before a major event happens. For instance, with the volcano, travelers who purchased travel insurance policies before April 13 were likely covered from ash delays, but anyone after that would not have been covered. “It’s kind of like buying homeowner’s insurance after your house is on fire. That wouldn’t be covered,” Dan McGinnity, vice president of travel insurer Travel Guard North America, told CNN.