Tuesday, June 11, 2013

Insurace 101

Insurance Tips from Safeco



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Insurance Tips

Get more out of life with Safeco Insurance. We’ll be there if you need us, but you can also help out by learning about ways to be safe and reduce your risks. Learn about how to avoid being a victim of identity theft or what you can do to help prevent insurance fraud.

Fighting Insurance Fraud

Insurance Fraud Hurts All of Us. Learn What You Can Do to Help.

Insurance fraud is a significant challenge facing us today. The problem can range from such things as fabricated claims, exaggerated losses, or organized criminal rings. Its reach can include multiple insurance companies and span virtually every state.

What We Are Doing to Fight Insurance Fraud

Safeco understands that insurance fraud hurts everyone – including our policyholders, our agents and our community as a whole. To help protect you, we have a special program staffed with dedicated field investigators whose function is to identify and investigate suspected fraud.
These investigators work closely with law enforcement agencies to help stamp out insurance fraud. Safeco also spends a significant amount of time and money on the education of our claims staff, underwriting department and agents to identify red flags that signal potential insurance fraud.

How to Report Insurance Fraud

Call Safeco at 888-456-2120 or the National Insurance Crime Bureau (NICB®) hotline at 800-TEL-NICB / 800-835-6422 immediately if you suspect any of the following:
  • Faked or inflated auto or  home losses
  • Intentionally set home or auto fires
  • Staged auto and slip/fall accidents
  • Phony or inflated medical, auto, or home repair bills
  • Misrepresenting the ability to work (claiming medical disability) 

Report Suspected Arson

You can help Safeco fight insurance fraud and keep premiums lower for everyone. Call 888-456-2120 to report suspected arson. We will pay up to $25,000 for information which leads to an arson conviction in connection with a fire loss to property covered by Safeco.

Credit-Based Insurance Scores Explained

Safeco, like most insurance companies, uses many factors to price your insurance. They include your driving record, claims history, the type of home or vehicle you own and, in some states, your credit-based insurance score.
What is a Credit-Based Insurance Score and Why Does it Matter?
Your credit-based insurance scores is not the same as your personal credit score, nor is it a measure of your credit worthiness. The credit-based insurance scores is a number that measures your likelihood of having an insurance claim. Studies have shown that consumers with higher credit-based insurance scores have fewer and less severe losses. For this reason the credit-based insurance scores is useful as a rating factor, but in those states where it is used, it is only one of many that are used.
Because your personal credit history affects your credit-based insurance scores, it is important to regularly review it and make sure it’s accurate. The Fair Credit Reporting Act (FCRA) allows you to order one report for free from each of the major credit reporting agencies each year. You may also purchase a 3-in-1 report to review your scores from all three major credit bureaus—Equifax, Experian and TransUnion.
Credit Rules Vary by State
Most states have rules about how credit information can be used in insurance. Contact your state’s Department of Insurance for the latest information on your state’s rules.
Credit Report Errors If your credit record is incomplete or has an error, ask the credit reporting bureau to make the corrections. If they do they will notify you in writing. Then you can let us know if you want your policy number updated by providing a copy of the notice with your name and policy to:  Safeco Imaging Center, P.O. Box 515097, Los Angeles, CA 90051-5097.

Avoiding Catastrophe Fraud

Tips to Help You Avoid Becoming a Victim of Fraud Following a Catastrophe

Catastrophes usually bring out the best in most people, but also bring out the worst in a few others. If you have just been victimized by a natural catastrophe you don’t want to become a victim again. After each natural disaster, the area affected is inundated by outsiders, including insurance adjusters, emergency/medical personnel and assistance organizations that provide valuable services. Unfortunately, experience has taught us that scam artists are drawn to disasters.

The most common types of fraud that occur after a disaster involve unscrupulous building repair firms, price gouging, offers of debris removal, and fraudulent charitable solicitations. To protect yourself, it is important to keep a sharp lookout for predators trying to take advantage of consumers.

The following can help you avoid becoming a victim:
  • Contact your agent or Safeco immediately. You will want your claim reviewed as soon as possible so that repairs can begin promptly. In addition, your insurance coverage may provide for additional living expenses.
  • Beware of high pressure sales people. Don’t be rushed into signing a contract. Take the time to obtain written estimates from more than one contractor. Make sure to read the entire estimate or contract before you sign.
  • Get everything the contractor discusses in writing. If there are changes or modifications in the contract, they should be acknowledged by all parties in writing. Never sign a contract with blanks that have not been filled in.
  • Do not make large down payments. Unscrupulous vendors could disappear after receiving the down payment or after performing limited work. Federal law also requires a three day “cooling off” period for unsolicited door to door sales of more than $25.
  • Verify all licensing concerning those individuals or companies that you are considering hiring. Check with your state's Better Business Bureau or Contractor's Licensing Board for more information.
  • Deal only with licensed contractors. Ask to see the contractor's license and other identification. If the person claims to be representing a contractor, but can't show you a contractor's license, call the contractor and find out if the person is authorized to act on the contractor's behalf.
  • Only do business with a contractor who carries appropriate insurance coverage. If the contractor is not insured, you may be liable for accidents that occur on your property. Ask the contractor if he/she carries general liability and workers’ compensation insurance. Request a certificate of insurance (COI) from the contractor that shows the name of the insurance company, policy number and policy limits the contractor carries.
If you believe you have been victimized by building repair firms or you have knowledge of suspected insurance fraud, contact:

Preventing Identity Theft

Your Identity Belongs to You. Protect It, Too.

The best way to protect yourself against identity theft is to prevent it. If your identity is stolen, you'll be able to lessen problems by being prepared to act quickly.

Start with Good Preventive Habits

  • Leave your Social Security card at home in a safe place.
  • Shred papers with personal information.
  • Reduce your credit card accounts, and carry only the cards you need.
  • Photocopy both sides of your credit cards and store safely.

Watch Your Accounts Closely

  • Review balances and transactions often by phone or online.
  • Make sure every transaction on your credit card statements is accurate.
  • Sign up with Experian, Transunion and Equifax. Stagger your requests to get a free credit report every four months or sign up for credit watch service that will report directly to you.

If Identity Theft Happens to You

  • Report to the police immediately and make several copies of police report.
  • Call your credit card companies and ask where to send a copy of the police report.
  • File a Federal Trade Commission ID Theft Complaint and Identity Theft Affidavit.
  • Have your bank place an alert on your driver's license number and Social Security number, and freeze your account.
  • Call fraud units of the credit report agencies Experian, Equifax and Transunion.

Tools and Resources

Federal Trade Commission identity theft line and websites
Social Security fraud line
  • 800-269-0271
Credit reporting agencies

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