One Little Known Way to Save on Flood Insurance! Bet You'll Never Guess

A vast number of flood insurance policyholders are unaware of the discount Community Rating System (CRS) offered through the National Flood Insurance Program (NFIP) by FEMA; specifically, created to give participating communities direct discounts on policyholder's premiums.

One designation of the FEMA created CRS was to be used as an incentive program for communities around the nation to participate with the NFIP in order to take a more proactive stance against potential flooding within certain flood zones, as well as, an over all aggressive approach to floodplain management.

There are full compliance eligibility requirements for communities to be accepted and verified as a participant and which are regulated by FEMA.

The CRS is based upon a credit and classification system. There are 10 different classifications and every community starts with a Class 10 rating. From there, the community begins to gain credit points based on 18 different activities.

These 18 activities are divided into four main categories: Public Information, Mapping and Regulation, Flood Damage Reduction, and Flood Preparedness. FEMA sets the CRS classification based upon the credit points of each community.

This classification determines the premium discounts policyholders are entitled to. The premium discounts which should be applied to every policyholder's premiums range from 5 percent to 45 percent as recognition of the proactive floodplain management.

Hint: Over 80% of all property owners overpay for Flood Insurance!

During this economic crisis, which everyone is experiencing a budget crunch; it would be prudent of each flood insurance policyholder to request from their local agent a detail analysis of their premium calculation. Once received, the policyholder can inform their agent about the FEMA mandated discount structure and request a discount.

This is just one avenue to investigate to make sure that you the consumers are getting the best from the NFIP.

The 4 Simple Steps to follow to save on your insurance rates:

1. Request from your insurance agent a detail analysis of your premium calculation. Hint: Don't tell your agent why you want it!

2. Once you have your premium calculation in hand inform your agent of the FEMA mandated discount structure and request he/she look up the appropriate FEMA insurance discount so you can compare it to what you are actually paying.

3. Since you now know what you should be paying and if you are paying too much inform your insurance carrier (agent) and request the premium be lowered.

4. BIG HINT: You can also request a refund from your insurance carrier for overpayment.

You too can reduce your flood insurance costs, just take the time to follow these simple steps and enjoy!

Bet you never thought it possible to reduce, let alone Eliminate your expensive requirement for Flood Insurance. Did you?

Keep an eye open in upcoming articles as I will be explaining in a 2 part series or more in detail "How to Eliminate Your Flood Insurance Requirement". Just as a little teaser so you will stay up nights waiting for my upcoming lessons on Flood Insurance let me tell you I am batting 100%. That's Right! 100% of the time I have been able to Reduce or Eliminate your insurance requirement.

So...... if you want to Save Big on your Flood Insurance just watch for more "Ways to Save on Your Flood Insurance" and "How to Eliminate your Flood Insurance Requirement".

Coming Soon to an Article, Ezine Directory or Ebook provider near you!

Calculating the Disability Insurance Cost

So you're out there to get disability insurance but you have no idea how much these plans normally cost. You can canvas through the insurance companies and compare which plans provide you with the best rate that go with your lifestyle and budget.

Normally, disability insurance cost is 1 to 3 percent of your annual salary. This is for a good disability plan. That means if you are earning $60,000 in a year, your disability insurance cost is $600 to $1800. If you think about it, it is a good price to pay for assurance that you can expect money in a period of your life when you are unable to work.

At least by paying the insurance cost, you can get the money that you need at the time when you need it the most.

It provides income that will help you pay off your living expenses if you cannot work for a significant length of time due to illness or injury. The benefit payments can amount to 60 percent of your total salary.

That is why most employees stay with corporations that offer this benefit. One does not know what the future has in store. Like what they say, it's better to have it and not need it that need it and not have it. Because of this more and more employees are investing in it.

But the cost also has policies regarding the waiting period of when this will take effect. The pay benefits also depend on the longevity of the plan. This is for the short-term disability insurance cost.

As for the long term disability insurance cost, the waiting period is longer. It can even last for months. As for the benefits, it could be paid in a couple of years or for the rest of the borrower's life. The waiting period and the payment period really depend on the plan and as stated in the policy terms.

These also depend on the state. Different states have different policies and terms regarding the disability insurance cost, waiting period, and payment period. For examples, New York, New Jersey,, Hawaii, and Rhode Island require their employers to give them disability benefits of 26 weeks maximum.

Some employers give their employees short term disability insurance even when the employees have paid the premiums.

But just like any bargain, there is a catch to disability insurance cost. The premiums are lower for plans that have longer waiting periods. If the employee can wait, then he can opt for these plans. He just has to make sure that nothing happens to his health before the plan takes effect.

Disability Insurance - Four Rules

You can ask any financial advisor what is the most often overlooked type of insurance that people should have, and almost all will tell you it's disability insurance. Many people ignore disability insurance in comparison to life insurance. However, the problem is that there is a much higher probability that you will have a long-term disability than there is dying before the age of 65. In fact, if you are between the age of 35 and 65 there is a 50% chance that you have been, you are, or you will face a long-term disability. Below are some of the rules of thumb you want to follow when trying to find good disability insurance.

#1: It Should Cover At Least 60% of Your Income
Good disability insurance will cover at least 60% of your income. Anything on top of that is great, but anything below that may not be enough to get you through a rough time. Generally people live with so much debt, that anything less than 60% isn't adequate protection. The exception would be if there are two people working and one becomes disabled.

#2: It Should Have an "Own Occupation Policy"
Many times these disability insurance policies have a clause that requires "any occupation." This is generally referring to the fact that you may be required to change your line of work for your insurance coverage to pay out to you.

#3: Should Have a Lengthy Benefit Period
Another trick that many disability insurance companies will play on you is that they will have a high payout in terms of percentage of your income, but you might get the money for far less time. Which would you rather have: $700 per month for 6 months or $650 for a year? These are the factors you have to look at. Generally, you should always go for the lengthier benefit period regardless even if you have to take a decreased amount per month.

#4: Short Waiting Period
A lot of times what these insurance companies will do is make you wait a lengthy time before you ever receive your benefits. So while the benefit period may extend to a year, you have to wait 6 months before you ever get your first check. Generally, shorter waiting periods are more expensive and this may have to be determined by your wallet. However, it is something you should be aware of before picking a disability insurance provider.

Disability Insurance - A Very Important Insurance Policy

More than likely if you have life insurance and suddenly die, you can count on the debt you left behind being paid off. However, most people do not really think about how their family financial situation will be handled if they are simply injured and unable to work. Could your family continue to put food on the table, pay the rent, obtain medical care, and other necessities if you no longer had an income? You might think somehow that social security will cover it, or the government has some sort of disability program. The odds are however that you won't qualify.

The scariest part of becoming disabled and unable to work, is that it has a higher probability of occurring than dying. Yes we all die eventually but did you know there is a 30% chance that if you are above 30 years old you will be unable to work for a significant period of time between now and the time you are 60? This is a simple statistic that most people overlook but may have to face at some point in their life.

When you think of your monthly budget, seriously consider including the cost of disability insurance. It is not as expensive as you might think. Most insurances agents sell the more common types of insurance such as term life, liability and auto insurance. However, if you are looking for a smart business decision, this is one of them. Even if you never get injured, it is a good precautionary measure. However, if you do get hurt you will be able to stay afloat and not incur debt or have to dip into retirement savings. You will probably never regret having disability insurance. It is always a wise investment.