Too many Americans believe that the coverage limits of their homeowners insurance policy are linked to the market value of their home, according to the Insurance Information Institute.

In the I.I.I.’s 2011 Insurance Pulse Survey, conducted by the Opinion Research Corporation, nearly half (48 percent) of survey respondents came to that mistaken conclusion.

One out of three respondents to the Pulse Survey reported that they purchased less homeowners or auto insurance as a way to save money. A better strategy would be to take a higher deductible, which can substantially reduce insurance costs. Home and car owners can then put the savings into a purchasing the right amount and type of insurance for their specific needs.

Following are the five biggest auto, home, flood and renters insurance mistakes consumers can make, with suggestions to avert those pitfalls while still saving money:

. Insuring a home for its real estate value rather than for the cost of rebuilding. Home insurance is designed to cover the cost of rebuilding, not the sales price of the home. You should make sure that you have enough coverage to completely rebuild your home and replace your belongings.

A better way to save: Raise your deductible. An increase from $500 to $1,000 could save up to 25 percent on your premium payments.

2. Selecting an insurance company by price alone. It is important to choose a company with competitive prices, but also one that is financially sound and provides good customer service.

A better way to save: Check the financial health of a company with independent rating agencies and ask friends and family for recommendations. You should select an insurance company that will respond to your needs and handle claims fairly and efficiently. Bucci Insurance has been a leading insurance provider in Rhode Island for over 30 years.

3. Dropping flood insurance. Damage from flooding is not covered under standard homeowners and renters insurance policies.Coverage is available from the National Flood Insurance Program (NFIP), as well as from some private insurance companies. Many homeowners are unaware they are at risk for flooding, but in fact 25 percent of all flood losses occur in low risk areas.

A better way to save: Before purchasing a home, check with the NFIP to determine whether the property is situated in a flood zone; if so, consider a less risky area.

4. Only purchasing the legally required amount of liability for your car. In today’s litigious society, buying only the minimum amount of liability means you are likely to pay more out-of-pocket if you are sued—and those costs may be steep.

A better way to save: Consider dropping collision and/or comprehensive coverage on older cars worth less than $1,000. The insurance industry and consumer groups generally recommend a minimum of $100,000 of bodily injury protection per person and $300,000 per accident.

5. Neglecting to buy renters insurance. A renters insurance policy covers your possessions and additional living expenses if you have to move out due to an insured disaster, such as a fire or hurricane. Equally important, it provides liability protection in the event someone is injured in your home and decides to sue.

A better way to save: Look into multi-policy discounts. Buying several policies with the same insurer, such as renters, auto and life will generally provide savings.

For more information visit Insurance Information Institute online or contact Bucci Insurance Group today!

Watch this video by the Insurance Information Institute. They offer five tips on how to save money and avoid mistakes that could leave you scarily uninsured.

Mistake #1: Insuring a home for its real estate value rather than the cost of rebuilding. Don’t be fooled by the decline of real estate prices, that doesn’t mean you can lower your insurance! Make sure you have enough coverage to completely rebuild your home and replace your belongings.

Tip #1: Taking a higher deductible could save you as much as 25%

Mistake #2: Selecting an insurance company by price alone. You want to choose an insurance company that is stable and has great customer service. Remember the saying, “You get what you pay for!”

Tip # 2: Ask anyone you know for recommendations

Mistake #3: Dropping Flood Insurance. This is not covered by your standard home owner’s insurance policy or your renters insurance.

Tip #3: Before purchasing a home, check with the National Flood Insurance Program. Check to see if your home is in a flood zone!

Mistake #4: Only purchasing the legally required amount of liability protection for your car

Tip #4: Consider dropping collision and comprehensive coverage on older cars and increase your liability on regularly used cars: $100,000 bodily injury and $300,000 per accident.

Mistake #5: Neglecting to purchase renters insurance.

Tip #5: Look into multi-policy discounts

If you have questions regarding any of these topics call Bucci Insurance and ask for any insurance discounts you are entitled to.

“By their nature, floods have an extended impact period and frequently work their damage over a longer period of time than a hurricane, tornado, or other natural disasters. This was the case in Rhode Island as over time there was flood damage in each of the 39 cities and towns impacting more than 26,000 households.” – Craig Stenning, Director of The Rhode Island Department of Behavioral Health, Developmental Disabilities and Hospitals (BHDDH)

Last week under the FEMA Disaster Relief Fund for flood related crisis counseling programs, the BHDDH was granted $2,139,318 for an initiative called RI HOPE. RI HOPE (Helping Other People in Emergencies) will provide community –based outreach and assistance to individuals and communities recovering from the historic March floods. Thanks to FEMA, through this grant they will be able to implement a Crisis Counseling Assistance and Training Program (CCP).

Three service provider organizations were selected to implement this nine-month program across each of the State’s five counties. These organizations are: Gateway Healthcare, The Kent Center and South Shore Mental Health Center.

The CCP staff is made up of a large group of local, empathetic people that are sometimes survivors themselves. These workers will go door-to-door in areas most affected by the flood, participate in community events and be present where people naturally tend to gather to connect with other individuals also affected by the flood. It is not a surprise that there are still people grieving their losses, struggling with feeling overwhelmed or seeing symptoms of acute stress or depression. The CCP staff is a combination of mental health professionals and paraprofessionals, who are trained and supervised to deliver an array of crisis counseling services. These services will include supportive crisis counseling, education, development of coping skills and linkage to appropriate resources.

Please keep in mind, if you are concerned about a loved one who is experiencing cognitive and behavioral changes, these are reactions expected after a disaster. Thankfully this can be eased with supportive interventions.

At Bucci Insurance we are glad there is going to be help provided for those who are in need. Our thoughts go out to all of them.

Worker helping to clean up Warwick Mall - WPRI 12

For everyone that is still recovering from the flood, we haven’t forgotten about you! If you have not already applied to receive help in the recovery process please do so. A recent flood update article in the Providence Journal said that U.S. Small Business Administration (SBA) is getting off to a slow start. Only 1112 businesses have applied and they are urging the public to apply! They want to continue to help all of the victims of the flood.

On Monday morning the SBA has approved low-interest loans for 14 businesses totaling $729,700, according to the agency. On the other hand FEMA has handed out more than $25 million in grants to individuals. Many people probably think that SBA loans are only available to businesses, but homeowners and renters are also able to apply for the loans. Many people are reluctant to apply for these loans because it takes a lot of time to process one application.

The spokesperson for SBA, Carl W. Sherrill, however is still urging people to apply for these loans. He wants people to apply regardless of how much money they think they need or whether they can even afford a loan. The SBA loan gives business and home owners quick cash that allows them to rebuild before they even receive an insurance settlement. Once the insurance settlement comes the people can use that to pay off the loan to the SBA.

Another factor slowing down the process of receiving loans was that FEMA’s flood insurance program was being discussed in Congress. Businesses can receive up to $2 million in SBA loans, but SBA can only give them $14,000 without collateral. In order to have collateral it has to be covered by flood insurance. FEMA’s flood insurance program has been extended and now businesses can receive SBA loans of more than $14,000.

Please apply for these loans! SBA is there to help the victims; only 112 have applied so far. Applying for this loan will make it easier to start your recovery process. We know that businesses are still getting off to a rocky start after the flood and we want to help. Please continue to call us at Bucci Insurance with any questions you have about your flood recovery process. We would be happy to assist you when working with SBA or FEMA.

Blackstone River from Providence Journal / Sandor Bodo and Kris Craig

Rhode Island has just experienced one of the biggest disasters in our state’s history! The flood caused rivers all over the state to reach unprecedented levels. Two straight days of rain caused the Pawtuxet River to flow into communities along the river. It caused roads all over the state to be shut down because of flooding, even Route 95. Some residents in Warwick can’t flush their toilets because the sewage plant is shut down. On top of that the ground is giving way in some areas, hundreds of residents homes are have sustained water damage, many people are being evacuated from their homes, and the flood has left the whole state of Rhode Island in a disarray.

Now that everyone in the state has experienced a flood, at Bucci Insurance we think it is important for every Rhode Islander to know what to do before, during and after a flood. Today, we are going to talk about the plans of action before a flood strikes.

We realize that you may never know exactly when a flood is about to happen, but here are some things that you should do ahead of time. First, purchase flood insurance. We can not drill that into your head enough! It is important to have flood insurance, especially when living in a state surrounded by mostly water. Having home owners insurance does not cover floods.  At Bucci Insurance, we would be happy to help you set up your flood insurance policy. There are two different types of policies that are available. One is the standard flood insurance policy, which you can apply for if your community participates in the National Flood Insurance Program. The other policy that you can apply for is preferred risk flood insurance. If your home or business is in a low to moderate risk zone then this is the policy for you. While you aren’t required to purchase flood insurance if you live in these areas, having this policy will protect your home if a small or large flood extends into your area.

Next, make sure that you keep copies of all critical documents in a safe place like a lock box. Keep copies of insurance polices, finance records and even a list of all your possessions. Finally, make a family emergency plan. Have a safety kit ready with food, water, medical supplies, radio and flashlight. Make sure your family has a plan of action on how to evacuate and where you will go. It is important that you are prepared and ready next time a disaster like this hits our area.

Come back tomorrow to find out what to do during and after a flood. If you have any questions about flood insurance please contact us at Bucci Insurance. We would be happy to answer any questions that you may have. If you live in Kent, Newport, Providence, or Washington counties follow the link on how to apply for federal assistance.

Stay safe out there today!

“Majority of Rhode Islanders lack flood insurance,” that was the title of the article in the Providence Journal on the 18th by Peter Lord and Tom Mooney and how true that statement is. Most people would probably think the exact opposite being that we live in “the Ocean State” and so close to the shore line. How could all Rhode Island residents not have flood insurance?

The executive vice president of Independent Insurance Agents of Rhode Island stated in the article that only 14,000 out of 460,000 homes are covered by federal flood insurance. It is crazy to think that with the snow and the rains that we have been having in our state this year and even previous years that only 14,000 homes are covered with flood insurance. The residents who live on the Pawtuxet River, where majority of flooding occurred, would have been eligible for up to $250,000 in coverage for all of their losses if they had purchased flood insurance.

Many people today do not want to buy flood insurance because of the state of the economy. Many people probably do not feel that they could afford to pay the extra coverage for flood insurance, which is something that rarely happens. Just think, what if you were one of the residents who lived on the Pawtuxet River, what would you have done if your house flooded and you lost most or all of your possessions. Paying a little bit more throughout the year for flood insurance doesn’t sound too bad now does it?

On the 15th Governor Carcieri declared a state of emergency in the flood region of Rhode Island, which brought in the federal emergency management officials to evaluate the damage. In the article, it says that the evaluation will determine if Rhode Island can get funding for all of the damages to our area. FEMA is able to determine if they will reimburse the state by census population figures. Which means the flood region of our state would have to sustain at least $1.3 million worth of damages to get federal aid. Homeowners and business would be able to receive aid if President Obama deems our area a federal disaster area.

In a press release put out today from the Office of Governor Carcieri, it was stated that as a result of the assessment the most severe impact of the storms were to households, businesses, debris cleaning, emergency response services, and roads and bridges. When Carcieri received the assessment he determined that because of the high level of damage and the economic situation of our state that we needed to reach out to President Obama to ask for federal emergency assistance. Carcieri wrote a letter to President Obama today asking him to declare Kent, Newport, Providence, and Washington Counties a “major disaster” area. We will have to wait and see what the federal government’s decision will be.

As a result of the recent rains, FEMA is drawing up a new flood zone map for Rhode Island because the sea level has risen. This means that you could potentially be living in a flood zone area, which is why purchasing flood insurance is so important. We cannot wait for the federal government to make a decision on possibly bailing us out of future disasters. We need to secure our homes and possessions and flood insurance is our only security.

At Bucci Insurance we work all over the state and would be happy to speak with you about your current policies and the importance of flood insurance. We want to make sure that our customers stay safe during these disasters and the best way that we can insure that is to make sure that you have the best possible coverage to protect you and your family.