Date: May 12, 2009
For more information contact: Jim Guidry, (608) 264-6239 or jim.guidry@wisconsin.gov

Spring Cleaning? Dust Off Your Insurance Policies Too

Madison, WI—Spring is a time when many of us are airing out the house, cleaning the yard and generally getting ready for summer fun. This year, a weak economy, rising unemployment and falling home values are leaving many consumers concerned about their financial future. While current economic times present unique challenges, they also provide an opportunity to save on insurance costs. This year, while you're dusting the furniture and cleaning out the gutters, Wisconsin Insurance Commissioner Sean Dilweg encourages Wisconsin consumers to review their insurance policies and evaluate if their level of coverage is an accurate reflection of their insurance needs.

"Many households are looking at smaller budgets and ways to save money," said Dilweg. "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."

Dilweg offers the following tips on insurance-related concerns in the current environment:

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. With equity dwindling, it might make sense to review homeowner's insurance policies and see if there are any ways to save, such as:
   
   
   • Insure your home, not the land: Homeowner's 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 to which you are entitled: 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. Plus, certain energy saving improvements may be eligible for federal tax credits.
2. Newly Unemployed Face Maze of Health Insurance Options
   With increasing unemployment, many people are struggling to maintain health insurance coverage - and those numbers are expected to increase as the year goes on. 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 your previous employer's plan.
   • COBRA and Continuation Rights: Both state and federal law give certain individuals who would otherwise lose their group health care coverage under an employer or association plan the right to continue their coverage for a period of time. Rights and entitlements under the federal 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. Wisconsin's continuation law applies to most group health insurance policies that provide hospital or medical coverage to Wisconsin residents. The law applies to group policies issued to employers of any size. A bill currently pending in the Wisconsin Legislature would provide consumers with access to assistance in paying their continuation premiums.
   • Government plans: Check to see if you are eligible for insurance through a government program, such as Medicaid, Medicare or the Health Insurance Risk-Sharing Plan (HIRSP).
   • 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. 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.
   
   
   • Book an annual check-up: Annual physicals can catch health problems before they become serious issues. Many insurance plans cover 100 percent of wellness care for routine exams, immunizations and diagnostic tests.
   • Confirm participating providers: Verify your doctor is included in your plan at preferred rates before booking appointments.

Consumers are encouraged to shop around to see if there are policies that can provide premium relief.

"Wisconsin has a vast network of independent insurance agents who can assist you in meeting your insurance needs," said Dilweg. "These agents have insight into local market conditions and can usually find just what you're looking for."

OCI offers a number of publications on insurance for consumers on its Web site at oci.wi.gov. Those publications include Tips for Saving on Auto Insurance, Tips for Saving on Homeowner's Insurance, Fact Sheet on Continuation and Conversion Rights in Health Insurance Policies, Tips for Buying Insurance on the Internet and many others. Visit www.insureUonline.org for more insurance-related tips and information.

Created by the Legislature in 1871, Wisconsin's Office of the Commissioner of Insurance (OCI) was vested with broad powers to ensure that the insurance industry responsibly and adequately met the insurance needs of Wisconsin citizens. Today, OCI's mission is to lead the way in informing and protecting the public and responding to its insurance needs.