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Private insurers are selling flood insurance

After big increases in the cost of federal flood insurance last year, at least five private insurers have started selling flood coverage. One is backed by Warren Buffet's Berkshire Hathaway, Inc.

The federal program insures 5.6 million residences and small businesses. It collects $3.5 billion a year in premiums, but it's also $24 billion in debt. Congress is considering proposals to delay price increases for a year or to eliminate many of them. If they do, other insurers will have a tougher sell.

Right now, Lloyds of London, American International Group, Chubb Corp., and Allianz SE's Fireman's Fund Insurance are selling policies mainly to customers with expensive properties. HCI Group sells flood insurance, but only for selected properties. It sold a homeowner's policy that included flood insurance for $9,700 to a couple who had been billed $53,005 by the Feds.


Cheaper Homes

For the first time in 14 years bank lending for new construction is up. That means the supply of homes could increase and the price of homes could decrease according to Federal Deposit Insurance Corporation data.

Home buyers might find more properties for at a lower cost in coming months as more new construction puts some downward pressure on prices, analysts say

According to Census bureau data, last year the average price of a new U.S. home was $322,100 – up a whopping 10 percent from 2012. Home prices overall have been rising rapidly in the last two years.

"The increase in construction lending is an encouraging signal," says David Crowe, chief economist for the National Association of Home Builders. The association forecasts a 33 percent increase in single family home starts this year or 822,000 new homes.

Construction and home building is especially good for the economy providing many jobs and boosts to secondary markets such as furniture and appliances. This year, both sales of existing homes and new home starts declined in January. Observers say the decline was caused by an increase in interest rates, gains in average home prices, and the very harsh weather in January.

January is typically a slow month for real estate as the industry builds up for the spring selling season.


Unusual claims homeowner insurance will pay

Remember the commercial where the boss is telling new agents about the company's coverages? As a huge object crashes through the ceiling, he says, "falling space junk, we cover that too," as a monkey in a parachute floats down.

It was funny, but the fact is that most other homeowner's policies do cover damage by falling satellites, according to AAA Nevada.

According to MSNBC, an insurance company once covered the cost of jewelry swallowed by a dog but not before the company claimed salvage rights to the dog and the jewelry within. After the dog owner sued, they paid for the jewelry and didn't take the dog.

Damage from the weight of snow on your roof is covered as is weather related cleanup to trees and gardens from violent weather.

Less known is coverage of vandalism of grave markers and mausoleums. Chris Hackett, director of personal lines policy with the Property and Casualty Insurers Association of America, says that homeowner's policies cover loss and vandalism to personal property and grave markers are considered personal property anywhere in the world.

Exploding things are covered. If something explodes and damages your house, your policy has your home covered. Your auto policy probably covers your car.

If you are worried about damage from volcanos – and who isn't? – remember that if your house is hit by fire, ash, shockwave, lava flows or volcanic dust, you are covered. But if the volcano causes an earthquake, flood, land slide or mud slide that damages your home, you are on your own. Homeowner's insurance never covers flood or earthquake damage.

On the other hand, if the volcano causes electricity to go out and all your food spoils you could get reimbursed. And it really doesn't have to be caused by a volcano. Any power
outage will do. Of course, if you have a deductible of $500, $1,000 or higher, filing a claim could be pointless.


New osteoporosis drug builds bone, reduces reabsorption

While it's still in the experimental stage, a drug called romosozumab could change treatment methods for osteoporosis and help to prevent fractures. Research by Michael McClung, MD, founder and director of the Oregon Osteoporosis Center, and colleagues at medical centers around the world, confirm that the drug increases bone density (BMD) and increases bone formation.

Romosozumab (roe moe soz' ue mab) was compared with two drugs, Forteo and Fosamax, in 400 women ages 55 to 85 over 12 months. For this Phase 2 testing, all had been diagnosed with osteopenia, low bone mass but not low enough to be called osteoporosis.

The injected drug increased BMD in the spine by 11.3 percent, compared to 7.1 percent with Forteo and 4.1 percent with Foamax. Increases were noted at three, six and 12 months. At the same time, there was a significant reduction in bone reabsorption (breakdown).

Doctors at Duke University explain that aging causes more bone to be broken down than rebuilt resulting in reduced bone mineral density.

No significant side effects in test subjects were noted. Larger Phase 3 testing is in progress.

 



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