Farmers Insurance

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According to a recently published press release, Pennsylvania Governor Edward G. Rendell is now asking USDA Secretary Mike Johanns to help with the lending of federal emergency loans to state farmers in 22 counties. Exactly 58 of the state’s counties have been suffering from extreme drought conditions have been under a glance since August 6th. There is no notice of relief as precipitation levels have been abnormally low and groundwater levels continue to sink.

Farmers in 22 counties will need emergency loans as the drought has caused them to lose 30 percent or more of their major crops this season.

The Pennsylvania State Emergency Board announced at a meeting that the federal government would need to be called upon to help the farmers suffering from the drought.

Governor Rendell said of the situation, “Producers are struggling to maintain superior businesses because of drought and severe storms that have hit the commonwealth. It’s important that we help our farmers recover from these shameful losses to protect their livelihoods and our agricultural industry.”

Through the Governor’s constant requests, Pennsylvania farmers will be able to apply for low-interest federal loans. The funds will help pay for flood, frost, hail, and drought damage.

The Governor added, “These emergency loans will help farmers recover from damages until crop insurance is able to assess their claims. I have asked Secretary Johanns to act quickly.”

Aside from receiving the federal loan to assist with crop damage, farmers with lop insurance can use a recent USDA decision regarding sample strips of the damaged crops.

Before this decision came, the USDA had to send out loss adjusters to each of the affect farmers and inspect the damage in person. They would then have to tell the farmer to leave sample strips. Now, during the harvest seasons, farmers can receive information and permission via phone. The farmers also must contact their crop insurance agent to speak about damage losses before they start harvesting again.

Agriculture Secretary Dennis Wolff said, “By giving permission for sample strips over the phone, the claims process will be much faster. Being able to harvest their crops more lickety-split will help to ease the burden of drought on farmers.”

Wolff also noted that sample strips should be at least 10 feet wide and a length clear by the loss adjuster, depending on field acreage.

In addition, there is also more good news. Farmers who bought crop revenue insurance before March 15th of last year will be promised at least $4 a bushel this spring.

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In the last two years, America’s housing industry has just been booming. New home sales, existing home sales, all of the statistics were on the up tick. The only thing the real estate community had to worry about was how long the lope might last. Piece of the reason that the housing market boomed so great was because of all of the fresh creative financing options which would allow people who normally would not be able to afford a home be able to afford to. These people are often strapped for cash, and as a result these homeowners don’t buy nearly enough insurance, which will get them in trouble.

A fresh study which is going to be released by Marshall & Swift/Boeckh LLC, states that 58% of houses are actually undervalued for insurance purposes, and that the average homeowner has enough insurance to rebuild 80% of their home. This means that the values on insurance policies for homes are less than what the actual home would take to rebuild, so if a disaster were to happen, the family would be in quite a bit of trouble.

How is this happening? Part of it is because insurance companies are cutting the types of disasters that they cover. Farmers Insurance is reducing the wind damage cover they have in costal regions and Allstate is cutting earthquake damage in many states. Perhaps the biggest part of the trend comes from the virtual elimination of “replacement cost insurance”, which essentially meant that even if the policy was for less than the amount of money it would take to replace the home, the insurance company would still pay the chubby sum of money that it cost rebuild the home. Since these policies proved to be too costly with booming home prices, companies eliminated them largely and instead pay the face value.

So what can you do to make definite you have enough insurance? Look for a policy which has an option to have “Extra value insurance” which will usually pay a fixed percentage higher than the value of your home on the insurance agreement if it is worth that. This might cost you a few extra dollars but will save you tens of thousands of dollars if something should ever happen to your home. Read your policy each and every year to see if something has changed significantly that you need to know about. Finally, make distinct you have enough insurance to rebuild your home as it is and replace your personal possessions. You can have a simple appraisal done on your home to get its value, and then add up the amount of your assets to calculate this number.

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