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THE NATIONAL STOCK EXCHANGE OF INDIA (NSE)

Located in India’s financial capital Mumbai, the National Stock Exchange (NSE) is the third largest stock exchange in the world. During 31 December 2005, NSE VSAT terminals, 2799 in total, were spanning across 320 cities of India.

The NSE has been a podium for securities exchange for 14 years now! Thousand member strong, NSE provides dealing of different securities, some of them being equity, corporate debt, certificate of deposit, commercial paper, and central and state government securities. National Securities Clearing Corporation, India Index Services and Products, National Securities Depository, and NSE-IT (trading technology) are the associates of NSE. Owner of diverse financial and insurance establishments, NSE can be broadly divided into three segments:

Wholesale debt

Capital market (automatic screen-based dealing system)

Futures and options (derivatives)

 

GENESIS OF NSE

It all began 16 years back, in November 1992, when the NSE was integrated as a tax-paying company. In April 1993, NSE was given the status of a stock exchange under the Securities Contract (Regulations) Act of 1956. A year later, in June 1994, NSE began operations in the Wholesale Debt Market (WDM), and in November that year, the Capital Market (Equities) Segment of the NSE began operations. Two years hence, in 1996, NSE became the first exchange in India to trade derivatives specifically on an equity index. In the new millennium, NSE began Indian Internet Online trading system. Today the NSE deals in online examinations and award certification. Comprising branches all over India, NSE introduced India’s first clearing corporation (National Securities Clearing Corporation Ltd.) and India’s first depository (National Securities Depository Ltd.). NSE is India’s earliest national, anonymous, electronic limit order book (LOB) exchange that deals with securities.

MARKET INDICES

NSE established an index services firm called IISL – India Index Services and products Ltd. – and opened numerous stock indices, including:

S&P CNX Nifty

CNX Nifty Junior

CNX 100 (this is the total of S&P CNX Nifty and CNX Nifty Junior)

S&P CNX 500 (this is equal to CNX 100 plus 400 major players across 72 industries)

CNX Midcap (this replaced CNX Midcap 200 on 18 July 2005)

 

The other NSE Indices are:

S&P CNX Defty

CNX IT

Bank IT

 

MARKET CAPITALISATION

Currently, NSE has four important capital market segments:

Equity

Futures and Options

Retail Debt Market

Wholesale Debt Market

 

MAJOR COMPANIES OF NSE

The major companies listed with the NSE are:

Asian paints

Dabur

Glaxo

Escorts

Hindustan Lever

Bank of Baroda

Infosys technologies

ONGC

Hero Honda

Jet Airways

 

The top investors of NSE are:

Corporation Bank

ITC

MTNL

ICICI Bank

Grasim

Biocon

Maruti

HDFC Bank

Cipla

Federal Bank

 

LOCATION OF NSE

National Stock Exchange of India Ltd.
Exchange Plaza
Plot No. C/1, G Block
Bandra-Kurla Complex
Bandra (E)
Mumbai 400051

BOMBAY STOCK EXCHANGE (BSE)

Having its headquarters in Mumbai, the BSE SENSEX is the stock index or SENSitive indEX of the BSE. The oldest stock exchange of Asia, the BSE SENSEX, also known as BSE 30, is the focal stock index of India. There are 4800 companies listed with the BSE. As of July 2007, the total equity market capitalization of the Bombay Stock Exchange was US$ 1.005 trillion. The Singapore Exchange has become an alliance of BSE by acquiring a strategic investment in the BSE.

GENESIS OF BSE

Way back in 1986, the BSE introduced the stock index that eventually became the most important stock index of the country. The SENSEX was based on market-capitalisation-weighted method and included stocks of some of the top financial houses. Noted financial analyst and columnist, Mr. Deepak Mohoni in the year 1990, introduced the term “BSE SENSEX” which is an acronym for Bombay Stock Exchange SENSitive indEX. Since September 2003, the SENSEX is measured on the method of free-float capitalisation.

MARKET INDICES

Apart from maintaining the BSE SENSEX, the Bombay Stock Exchange also maintains stock indices like:

SENSEX

MIDCAP

SMLCAP

BSE-100

BSE-200

BSE-500

 

The BSE gives information on the price, charting, announcements, company contact, shareholding pattern and results of the companies that are enlisted in the exchange. The Board of Directors, encompassing eminent financial professionals, Managing Director of the exchange, and the representatives of the Trading Members, maintain the overall functionality of the exchange.

BSE also gives the Beta value of the SENSEX Scrips, Beta being calculated by the formula: Beta = Co-Variance (SENSEX, Stock)/Variance (SENSEX).

While listing securities that may be from public limited companies, central government, state governments or other financial institutions, there are certain objectives followed by the BSE:

Protect the interest of the investors by giving full disclosures

Provide liquidity to securities

Mobilise savings to enable economic development

 

BSE SENSEX OVERVIEW

The BSE SENSEX comprises thirty stocks and is a value-weighted index. The stocks listed here are the most active stocks on the BSE. The BSE SENSEX has a base value of 100. The relevant authorities update BSE SENSEX and in the process inspect and change the SENSEX, the underlying idea being that the SENSEX represents the prevailing market condition.

BSE PERFORMANCE

Since June 1990, the BSE Index has been increasing ten-fold. As per the data available, since April 1979, the long run rate of return on the BSE SENSEX has been at almost 0.52% every week, with the rate of standard deviation being almost 3.67%. The returns thus have been 27% per year. However after inflation, the figure has come down to 18% per year.

BSE COMPANIES

Given below is a catalogue of stocks listed in the BSE:

Wipro

ACC

ITC Limited

Bajaj Auto

Larsen & Tourbo

BHEL

Maruti Udyog

Bharti Airtel

NTPC

Cipla

ONGC

Dr. Reddy’s Laboratories

Ranbaxy Laboratories

Grasim Industries

Reliance Communications

Gujarat Ambuja Cements

Reliance Energy

HDFC

Reliance Industries

HDFC Bank

Satyam Computer Services

Hero Honda Motors

State Bank of India

Hindalco Industries

Tata Consultancy Services

Hindustan Lever Limited

Tata Motors

ICICI Bank

Tata Steel

Infosys

With so many choices currently available in the auto insurance market, it can be quite difficult to know which products to choose. Understanding some basic facts about the insurance market can help you to make informed decisions. Following are five facts that you need to know about the auto insurance market.

1) Premium Plan – Is it worthwhile? It is now possible to purchase a deluxe insurance package that includes new car replacement and accident forgiveness among other services. You will pay heavily for these add-ons, so be sure that you understand exactly what you are getting. You may be able to get similar benefits without purchasing the premium insurance.

2) Shared Market versus Nonstandard Market – Drivers with below average driving records should shop extremely carefully for auto insurance. Shared market insurance companies are regular insurance companies that share the risk of poor drivers. Consequently, their rates are rather high. A new entrant to the auto insurance business is the Nonstandard market. This market consists of a series of specialty companies that exist solely to insure nonstandard drivers and competition keeps their rates somewhat lower.

3) Most and Least Expensive Cities in America for Auto Insurance in 2006 – The least expensive city in America was Roanoke, VA. There the average annual premium was only $912. The most expensive was Detroit, with an average of over $5,800. While you cannot plan a move based on insurance prices, knowing the insurance market as well as other cost of living concerns can help you decide between two comparable cities.

4) Downtown is the most expensive – As you may already know, auto insurance rates are always higher in cities than they are in small towns and suburbs. What you may not know, however, is that even within a city your zip code matters. Simply choosing a home in a more residential portion of the city rather than downtown may save you hundreds of dollars.

5) Purchasing auto insurance is a numbers game – It is entirely possible that you will pay for auto insurance for years and never need to use the policy. However, it is equally possible that you will need your insurance as soon as you drive off the lot. You cannot predict all things that could theoretically happen to your vehicle. Hence the necessity of playing the numbers game. Look over your budget and think through what would happen if you had an accident. Also determine how much you can realistically spend each month. Then shop around to get the best insurance for the money you can afford to spend. Be sure to consider varying deductibles.

There are so many options available in today’s auto insurance market that it would be quite time consuming if not utterly impossible to make the “perfect” choice. However, understanding the market and the variables over which you have control will assist you in making a smart decision. Take the time to consider your options and you will find auto insurance that works well for you.

If you own a car, but don’t feel like you can afford standard auto insurance premiums each month, one of the best alternatives you can probably take me to look up various auto discount plans available in your local area. Discount plans operate differently to standard insurance and can help provide you with coverage at a reduced rate, however they may not necessarily be able to pay entirely for certain cases, should they arise.

Auto insurance discount plans can offer you up to 70% coverage in the event of an accident or other liability in which you are incurred to you as a liable driver.  While this may not necessarily be as beneficial as some insurance policies, they can definitely help offset the costs of an auto accident and are much more affordable than a standard insurance policy. These can be particularly helpful for car owners who may not qualify for lower rates, or who have a good accident record.

Throughout the United States auto discount plans can be found through various providers and will most likely be available in your local area through either a national provider or a specific local service company.  If you think this’ll be a reasonable alternative for you as a car owner, consider searching out a list of various providers and comparing and contrasting both their benefits and the monthly premium costs. Keep your eyes peeled! Just as the insurance industry can vary greatly in monthly or yearly costs as well as available plans so can many discount auto coverage provider services.

The best place to research these would be online at a site such as InsureThePoor.com as a number of different providers will not have local listings.  Be sure to fully research into these different providers and get a comprehensive list of their offerings as well as their different costs before making a decision. Different discount auto coverage providers have different packages.  Make sure you can select one that will meet the minimum requirements for your state or local area and that is a reputable company that will not fleece you when the time comes for them to support your claim.  Looking into consumer reports and the doing brief background checks on a company can be a good way to verify this. These reports can also be available online through searches or reviews on specific websites.

Anyone 65 years of age and over who has signed on for Medicare is likely going to realize that Medicare only covers a finite group of health care costs, leaving gaps in their medical insurance coverage. To help pay some of the health care costs that standard Medicare does’nt cover, such as co-payments, co-insurance and deductibles, there is Medicare supplemental insurance plan – also known as Medigap – which may cover what Medicare doesn’t cover.

“When you choose a Medigap plan, it is important to find the best policy for you,” said Alan Weinstock, insurance broker at “Medicare Supplement Plans”. “Seniors should talk to someone who knows [about it] and can help them compare rates, plans and benefits for Medicare supplement insurance before they buy.”

For older Americans who are ready to choose a Medicare supplemental insurance policy, here are five tips to help them learn further about Medigap insurance.

Medigap Insurance and the Policies Companies Sell

There are Medigap plans ranging from A through L; however, while the insurance companies can sell only standardized Medicare supplement insurance policies, they don’t have to offer every Medigap plan. There is a caveat, though: Insurance companies must offer Medigap Plan A if they offer any other Medigap policy. State laws may also affect which plans are offered by companies.

Important Information about Medigap Policies

In order to buy a Medigap policy, there are some important points you need to know:

1. You need to have Medicare Part A and Part B.
2. There are monthly premium rates you have to pay for Medicare supplemental insurance.
3. Your policy cannot be cancelled, even for health reasons, as long as you pay your premium.
4. Each plan only covers one person. That means you and your spouse will have to buy separate policies

Choosing the Best Time to Buy Medicare Supplement Insurance

The best time to buy Medigap insurance is during your Medigap open enrollment period, which is the six-month period that begins on the first day of the month in which you turn 65 and enroll in Medicare Part B. During this period, insurance companies cannot use medical underwriting, so they cannot refuse to sell you a Medigap policy, charge you more because of health problems or make you wait for coverage to start, except in some cases for pre-existing conditions.

After the open enrollment period, Medigap insurance companies are generally allowed to use medical underwriting. Therefore, there is no guarantee they will sell you a policy.

Insurance Company Pricing of Medicare Supplement Insurance

Insurance companies decide individually how to price their policies. There are three ways they can set the price: community or no-age rated, issue-age rated or attained-age rated. Be sure and ask them how they do it, because the way they set the price affects how much you pay now and in the future.

Know What Medigap Policies Don’t Cover

Medigap policies don’t cover long-term care, hearing aids, eyeglasses, private-duty nursing and prescription drugs, vision or dental care. Prescription drug coverage can be obtained by joining the Medicare Prescription Drug Plan, or Part D.

The important thing is to seek out experts and ask questions when looking to purchase Medigap insurance.

Historically they’ve been known as the people you don’t want to be seated next to at a dinner party. No, I’m not talking about Proctologists. I’m referring to Insurance Brokers.

However, if you’re a Landlord in the UK and you were seated next to a staff member from Cover4 you’d get up much more informed then when you sat down.

You’d learn that Cover4 insures over 40,000 let properties and that they’ve been in business for over 60 years. Okay, stay with me here, this is where it gets interesting.

Did you know that you can get a substantial discount if you combine all the let properties you own into one Multi Property Landlord Insurance Policy? Not only will you enjoy a lower premium but you’ll also have the added convenience of only one renewal date on your policies. I thought that would get your attention.

Here’s something else you may not know. All of the Occupied Residential Lets Policies offered through Cover4 include malicious damage by your tenants where many of their competitors policies do not have that clause and fail to point that fact out. Your policy through Cover4 could also include Subsidence, Fire, Theft, Flood, Rent Guarantee, Legal Expense Cover and so much more.

They also provide Unoccupied Property Insurance and since the main complaint most people have is the time limit imposed on these policies, Cover4 offers a long term option which takes away that stress and hassle.

What you’ll find with Cover4 is that a lot of their Standard options are extras with other companies. You’ll also find that an appointment with them is much more pleasant then one with a Proctologist.

Get your quote today by calling 0800 970 7172 or by visiting http://www.cover4letproperty.co.uk.

Congratulations! As the owner of a classic car you’ve now stepped into the wide, wonderful world of classic car ownership and a huge community of car lovers who share the same appreciation for a car that has both power and history as you do. Now you get to expand your horizons even farther into the world of classic cars by beginning your quest for classic car insurance.

When you insure your classic car you’re going to have two choices:

1) Purchasing a policy through a standard car insurance carrier. Yes, you can save yourself some time and effort and simply add your classic car onto your regular car insurance policy-you know, the same one you use to protect the commuter car that takes you to and from the job you used to help you buy and restore your classic car in the first place! Over 50% of classic cars today are covered by standard carriers.

There are some pros and cons to purchasing a policy for your classic car through a standard car insurance provider. It certainly makes it easier to keep track of your payments and policy terms if you have all of your vehicles under one roof, so to speak. It also allows you to enjoy a multi-car discount on all of your vehicles and unrestricted use of your classic car.

The down side of standard car insurance coverage comes in the form of the sixteen year old driver with a squeaky new license who needs more coverage than you do. Car insurance companies design their policies with daily drivers in mind, not collectors. As a result, you may end up paying more for coverage you neither want, nor need.

2) Purchasing collector’s car insurance. If your classic car is more than fifteen to twenty years old (depending on the make, model and what state you live in) and used solely as a pleasure vehicle you may prefer to insure it under a collector’s insurance policy. Collector’s insurance is available nationwide and is generally less expensive than a standard policy, both because most of the vehicles these companies insure are at a low risk for filing a claim and because drivers have the option to customize their coverage to meet their specific needs.

Some drivers find that collector’s insurance requires them to jump through what they perceive to be unnecessary hoops. For example, to purchase a car insurance policy through a specialized provider it is usually required that you have a valid driver’s license and a good driving record extending back at least ten years. They will also require you to have a passenger car for each licensed driver in your family to prevent your classic car from becoming a primary mode of transportation, have a garage that your car calls home a majority of the time, and restrict your use of your classic car to the occasional pleasure drive and/or classic car show. All of these steps are designed to minimize your need to file a claim before approving your insurance.

Although this information is usually just submitted on a piece of paper prior to being approved, it’s not unheard of for a car insurance carrier to audit a high value or extremely rare classic car prior to approving coverage.

The choice to insure your car with a standard carrier or a specialized provider is entirely up to you, and should be made with your particular needs in mind. What’s important is that you ensure that your new baby is insured with a car insurance policy that takes care of her as well as you do yourself.

Laser dentistry is an up and coming paradigm in dental medicine that is rapidly gaining popularity among dental professionals. It takes advantage of new advances in laser technology to offer more expedient dentistry experiences that are safer and less cumbersome than the standard of care. In this article we will examine the major benefits of laser dentistry over standard dental treatments. We will furthermore examine some of the reasons why laser dentists remain challenging to locate despite the tremendous empirical support for the superiority and great safety profile of laser dental treatment.

As far as much of the medical field has accelerated during the past half century, traditional dental treatments are still rather violent and unfocused. For example, a simple filling requires drilling through the enamel of your tooth with a hot drill bit. There is substantial risk of permanent damage to the tooth in this everyday procedure, in which case the tooth would eventually be lost.

When a hole has been drilled into your tooth, a piece of metal amalgam or ceramic is squeezed into the hole, with a virtual guarantee that the piece of amalgam will wear out and require replacement in a relatively short time. By the time that is the case, there will often be a need for still more drilling. When the cavity attains a certain level of depth, a root canal will have become unavoidable. This means the whole inner section of the tooth being drilled through, killing the delicate nerve tissue that lives inside.

Laser dentistry changes this sequence of events quite a bit. A dentist making use of laser equipment to give you a filling will likely not need to use any anesthetic. The laser equipment has no moving parts and also no danger of becoming too hot or of destroying the enamel. The laser actually kills the bacteria that create the cavity to begin with, which means there is a dramatically reduced chance of complication after the procedure. What’s more, much less of the undamaged tooth tissue is ruined by the procedure, and the filling that is provided will likely be far more durable.

We have considered your basic cavity repair as an example, but laser dentistry technology extends far beyond this type of common procedure. Dental lasers also make possible oral surgery that is unusually clean and precise. Procedures performed with these technologies often have no need for any stitches, produce very little bleeding, and have a substantially reduced risk of becoming infected because the laser beam actually destroys the bacteria that are living in the area being operated on. As a result of this, oral surgery that is performed with laser technology tends to heal quite a bit more rapidly and quite a bit more cleanly than ordinary oral surgery modalities.

The main reason that it is currently so challenging to locate a laser dentistry practice is largely because the technology is simply still so new. The equipment remains quite expensive, and there are yet relatively few dentists who have proficiency in using it. Due to the impressively improved efficacy and safety of these laser dentistry techniques, it is practically guaranteed that they will be more widely available over the coming years, as a larger proportion of dentists become trained in how to use them.

If you are a frequent traveler you may already have realized that there are many potential risks involved and if you purchase travelers car insurance for every trip that you make you will not only waste time money as well as effort, but also miss out on purchasing an annual travel insurance plan that will be a lot cheaper.

Understand Type Of Coverage

However, before buying travelers auto insurance, you should be aware of a few basics that you should use to choose the proper insurance policy. Most companies that hire a great many employees will realize that cars are an important part of their business and it would be improper to drive these cars without the right type of travelers car insurance. They may turn to online auto insurance to ensure having enough coverage so that they can go about their jobs certain about their well-being and safety. It is thus necessary to understand the type of coverage and different service options so that one can make an informed decision about travelers car insurance.

You will need to follow certain guidelines that will assist car owners to understand the insurance needs of their vehicles. To begin with, it is necessary to decide how to obtain the travelers auto insurance, which can be obtained online as well as off-line. You will then need to decide about one particular insurance company and in this regard you must choose the company that best meets your requirements which should have facilities such as being able to get a broken down vehicle back on the road at the earliest.

When choosing travelers car insurance is informed that insurance coverage varies from state to state, and thus you will need to know which the best insurance is for your traveling needs. It is standard to get insurance that will cover for wound or damage that the driver causes to others, the injuries to the motorists as well as injuries and damages caused by uninsured motorists and finally, it should cover damage or theft of your car.

The importance of getting a travelers auto insurance from a good insurance company cannot be overemphasized as otherwise you may end up remitting hundreds of dollars more than is necessary each year. And, inexpensive travelers car insurance also does not warranty that your insurance cover is the best because the quotes given may lack in certain essential features.

So, you should contrast insurance premiums, contrast coverage offered, review coverage request procedures, and also compare price breaks that are available. Also, it will be a good idea to also compare different auto insurance organizations. Using these yardsticks, you should be able to get proper travelers car insurance.

hi all i i have a ford fiesta xr2i car and the car is originally standard the only thing i have done to it is put a pipercross air filter on it..(direct replacement to my old filter) but i didnt tell my insurance as i wasnt sure if it would shoot up… well anyways the police was doing regular car checks in the city centre tonight and i happend to be one of them lol…. but everything seemed ok until he checked under my bonnet and looked at the air filter(pipercross) !! and also he commented about the 15″alloys on my car (which if i remember rightly this car comes with them exact alloys when bought new )<<<--- anyone know if they do 100%?? its the ford fiesta xr2i 1.8 16v d.o.h.c...... well he took 2 photos with his camera of each.. then he said ok well i have to go!! the other officer is going to give you a fixed ticket for a faulty headlight....so what is the consequences of me not telling insurance about the air filter ?? is this only a problem if i am in any serious crash or summin
if anyone could give me some advice or has been in the same situation i would really appreiciate it ...thanks
thanx all nice to have some advice im just bothered that i get any more points on my licence for this...i already have 9 points so 3 or more points and im banned ...so i could possibly only receive a fine for this and also the insurance would cancel me off there list?
i live uk ..frank

What do San Diego County residents have to know about Earthquake Insurance Policies, Risks and Costs?

 

Quality Claims Management views Earthquake coverage as catastrophic insurance. You will only need it if we have a really big earthquake. However, depending on where you live in San Diego and how much you have invested in your home, you may opt to get coverage. Here is what you need to know.

 

First, most standard homeowners, mobile home owners, condominium, and renter’s insurance policies DO NOT cover earthquake damage.  Similar to flood insurance, earthquake insurance usually must be purchased separately.

 

However, fire insurance is part of most typical homeowners insurance policies. This means your home insurance policy may cover a significant part of the damage if your home burns down or is damaged in a fire that is caused by an earthquake.

 

Much of the damage that often arises from an earthquake happens after the ground stops shaking. Gas lines that may have ruptured and start leaking can catch on fire and burn your home to the ground.  In San Diego County, it is also very possible that your home may be consumed in a wildfire sparked caused by earthquake motion many miles away.  A power line may have collapsed. A home may have caught fire because of the quake and flames traveled many miles through brush to your home.

 

Another major factor is water damage. Quakes often break pipes. Even small quakes can crack a water or sewer pipe that floods your home and can cause extensive damage to your floors, rugs, furniture – even to the structure of your home.

 

If your homeowner’s insurance includes fire and flood damage, you should be covered for this “earthquake” damage – even if you don’t have earthquake insurance. 

 

Another danger from earthquakes is landslides. You may or may not be covered for this. You need to check your homeowner insurance policy to make sure of your coverage for both landslide and fires. If your home does burn down, are you fully covered? Will you be able to replace your home and all of your belongings.

 

Check our other articles about homeowners insurance for details about coverages and what you need to know.

 

Where do you get Earthquake Insurance?

The law requires insurers that sell residential property insurance within the state of California to offer earthquake coverage to their policyholders.  Most of these California earthquake insurance policies are backed and administered by a government organization known as CEA – the California Earthquake Authority 

 

Even though most earthquake insurance policies are sold by the state-run insurance pool, a few private companies also sell earthquake coverage. In order to provide earthquake coverage, insurance companies can become a CEA participating insurance company and offer the CEA’s residential earthquake policies or they can manage the risk themselves.  To date, companies that sell over two-thirds of the residential property insurance in the state have opted to become CEA participating companies.

 

 

According to the CEA website, the CEA homeowners policy is designed to help get you back into your home after an earthquake.  The CEA base-limits policy for homeowners includes:

 

Dwelling coverage - The coverage limit is the insured value of your home stated on your companion homeowner policy.

* Personal Property coverage - $5,000

* Additional Living Expense/Loss of Use coverage - $1,500

* You may select either a 10% or 15% deductible on your Dwelling coverage, and CEA’s increased-limit options allow you to increase Personal Property coverage to as much as $100,000 and Additional Living Expense/Loss of Use coverage to as much as $15,000.

Residential property insurance includes coverage for homeowners, condominium owners, mobile home owners, and renters. 

 

Earthquake insurance is not intended for smaller losses as you must have enough damage to surpass your deductible.  Even though deductibles are generally 10-15% of the amount of the Coverage A limits, it can be a little confusing to calculate the actual deductible amount since there are several factors that go into the formula.

 

How will your home handle an earthquake – Do you need Earthquake Insurance

 

- where in San Diego County do you live (see part 1)

- what is under your house (rock, sand, fill, etc?)

- how is your home constructed – is it up to code and why that matters for your coverage

 

Age and type of construction contribute to how a residential structure reacts during an earthquake.  Based on the scientific and engineering research, the CEA premiums reflect the following rating factors:

 

- In general, houses built on a slab perform better than those built on a raised foundation.

- One-story houses are less vulnerable to earthquake shaking than multi-story houses.

- Unreinforced masonry structures are more susceptible to damage than those of wood-frame construction.

- Houses of a certain age are not as strongly constructed as others.

 

The type of home you have affects your risk. One-story homes that are “tied together” — with the roof bolted to the walls, and the walls to the foundation — tend to survive earthquakes and windstorms better than multistory homes that aren’t. As you would expect, houses with big openings, such as plate-glass windows or large garage doors, fare worse than ones without those features.

In addition, your home can be substantially fortified with some special construction measures.  For many, this can be a better investment than buying earthquake insurance.
The Institute for Business and Home Safety has a “Fortified For Safer Living”  program that specifies building techniques that can help homes better withstand disaster.

 

 

 

Other California Earthquake Insurance Factors

 

No Known Loss Letter Requirement

 

In areas that have been previously affected by an earthquake or other catastrophic event, an insurer may require a “No Known Loss Letter” with all requests for earthquake insurance or to add earthquake coverage to an existing policy. These kind of letters letter confirms that no known losses or damages have already occurred to the requested coverage location(s).

 

 

DIC Policy

 

DIC (Difference in Conditions) insurance provides coverage designed to close specific gaps in standard insurance policies. It allows coverage to be customized to extend to such exposures as water damage, flood, collapse, earthquake, landslide, etc., according to the insured’s needs. DIC coverage may be provided by means of a separate insurance policy or it may be added by endorsement to the basic policy.

 

Is Earthquake Insurance Right For You? How Much Equity Do You Have In Your Home?

 

As mentioned earlier, we view Earthquake coverage as catastrophic insurance. You will only need it if we have a really big earthquake. The more equity you have in your home, the more you need insurance.

 

According to UnitedPolicyHolders,  a non-profit organization that fights for the rights of insurance consumers and educates individuals and businesses on how to get fair treatment,   “a generally accepted rule of thumb is that you should not risk more than 10 percent of your liquid assets. A large earthquake could mean 10 to 100 percent of your home’s structure could be damaged or destroyed, up to 20 percent of your belongings could be damaged, and/or you may need to come up with $3,000 a month for temporary rent and relocation costs.” 

 

In San Diego, we get lots of smaller quakes on a regular basis.  These are reminders to YOU to review your current coverages to be sure that you are adequately insured. Is your current homeowner’s insurance up to date? Will it pay to rebuild your home to current building codes? Do you have additional coverage and riders for all the new stuff yiou may have acquired since you first bought your insurance policy?

 

Remember, it is far more likely you will have pipes break or fires start from the smaller earthquakes. If either of these happen, you should have coverage under your regular homeowners policy. Check to make sure it is up to date and that you have enough coverage. As a result of the 2003 and 2007 wildfires, we have found that most homeowners in San Diego are underinsured.

 

By the way, businesses should review their policies to be sure they have EQSL – or Sprinkler Loss coverage. There is a greater chance you will suffer damage from sprinklers leaking than from a building falling down.

 

 

 

RESOURCES

 

The California Earthquake Authority is a publicly managed, largely privately funded organization that provides catastrophic residential earthquake insurance and encourages Californians to reduce their risk of earthquake loss.  http://www.earthquakeauthority.com

 

Only a CEA participating insurance company or its agent can give you an exact CEA-premium quote, but to get a good estimate of the cost, use their handy premium calculator.

 

UnitedPolicyHolders.org – United Policyholders is a non-profit that fights for the rights of insurance consumers and educates individuals and businesses on how to get fair treatment.

 

Quality Claims Management online article with maps to find out if your home is in a danger zone – check for landslide, liquefaction and earthquake fault zones. http://www.qualityclaims.com/homeowner.aspx?sect=_quakeinsurance