So what does that mean to those who own coastal property in these states? Actually, more than one might think.

Individually, it represents the homes of hundreds of thousands of people who live full time along the Southeast Coast. Whether they've been there one year or 30 years, they can keep a close eye on the weather and on their property, even if they have to evacuate for the most serious storms.

There are also thousands of individuals who don't call the Southeast Coast home but who do own coastal property in one or more of these states. Single-family homes, duplexes, condos and townhomes are, in many cases, rental property that the owner uses for a few weeks a year. Who is looking after these properties as a storm approaches?

Long-distance owners have an extra responsibility to ensure that their second homes and investment properties are always storm-ready or to make plans in advance of an approaching storm to "batten down the hatches."

The importance of adequate building codes and structural integrity cannot be overstated when assessing a home's ability to withstand wind and water damage.

The Institute for Business and Home Safety (www.disastersafety.org) and the Federal Alliance for Safe Homes (www.flash.org) are two excellent sources of information about how to build new properties and retrofit existing properties to be storm-proof, and how to prepare for oncoming storms.

As the most recent storm to hit the Southern U.S., Tropical Storm Claudette provided another significant demonstration of the capability of these events.

First, damaging storms can develop quickly, leaving little time for advance preparation.

One day Claudette was a tropical wave in the Caribbean; the next day she had strengthened into a tropical storm moving relatively quickly through the Florida Panhandle.

Have all your major storm preparation done long before a major storm is heading your way.

Claudette also reminds us that for many storms, it's not only the wind we need to be prepared for, but flooding - both coastal and inland.

Flooding continues to be a problem, even in areas that are not considered a flood plain.

Keep in mind that flood insurance, provided by the federal government and available through your insurer, is inexpensive for areas outside designated flood plains, but it is the only protection a homeowner has against flash floods since traditional homeowners insurance and renters insurance does not cover "rising water" events.

A survey conducted last year by the Insurance Information Institute revealed that only 17 percent of residents in Southern states had purchased flood insurance.

Keep in mind that flood insurance must be in effect at least 30 days before a claim can be made.

Without it, you will have to pay for the damage yourself or rely on a federal disaster loan.

The bottom line: storm preparedness and planning are essential, both for property owners who live on the coast and those who are only part-time residents.

The data table on page 6A clearly demonstrates the vast exposure that the Atlantic and Gulf coasts face from ocean-driven storms.

The business of providing insurance is based is essentially on the premise of sharing the risk to insure you, your vehicle and your passengers in the event of a traffic crash. There are direct and indirect ways to save money related to how that risk is calculated.

It’s really all about your vehicle and you from the beginning. Insurers must know what type of vehicle you drive, your age, your address, and your driving record for starters.

Vehicle - The more expensive it is to repair a vehicle or to total it after a crash, the more the policy costs. How you use your vehicle is a factor as in to and from work, to school and home or for your business. Of course, a more expensive vehicle may also have more safety features, which could be a mitigating factor for assessing risk and its cost.

Age – Statistics show that different age groups present different levels of risk and claims experience. Drivers under 21 and over 75 as a group generally have more accidents, compared to other age groups.

Address – What about the statistics for accidents in your geographic area? Do you live (and is your vehicle “garaged”) in city with bumper-to-bumper traffic or in the country where hazards may include farm equipment and deer?

Driving record – Beginning drivers, of course, have no driving record, so that is why they risk they present is calculated to be more costly. But from the time one gets behind the wheel, the driving record begins to build. Teens often miss the importance of not obeying traffic laws because they cannot see the long-term effects of a bad driving record, but the insurers most certainly can.

Teens cannot escape their age and experience behind the wheel but insurer discounts can help. Most insurers provide a “good student” discount. In lieu of a driving history, a school record can help with a significant discount on a teen’s auto policy.

Another potential discount some insurers offer is for taking a defensive driving course. You could save up to 10 percent, but the course must be taken every three years to maintain the discount.

Having more than one policy with an insurer usually qualifies the customer for a multi-policy or multi-line discount.. Auto and renters or homeowners and/or life or an umbrella liability policy can provide savings of up to 20 percent.

Do not overlook the safety feature discounts that may be available for anti-lock brakes, airbags and even certain anti-theft devices. Ask your insurer about what discounts are available.

And here’s a money saver to remember. Loyalty discounts. The longer you stay with your insurer you may qualify for a discount simply for remaining a good customer. You can save a few percentage points. Ask your agent or company.

Retirees can qualify for a discount simply for their ability to drive less and drive more safely. Younger retirees benefit more in some cases since older drivers tend to lose this discount the older they are due to age rating.

Here’s where it gets interesting. At the start of this column, we looked at the risk your insurer takes to cover you based on various criteria. If you can share more of the risk with your insurer, that is if you can raise your deductible so you pay more to repair your vehicle, you can substantially reduce the cost of your insurance.

Given the age and mileage of your vehicle, there’s another type of risk you can assume by dropping certain coverages. You could drop collision and comprehensive coverages that can account for about 40 percent of your insurance cost, but there are trade-offs. However, if you smash up your vehicle to avoid hitting a deer or something else in the road, you would have no coverage to repair your damaged or totaled vehicle.

If a hailstorm leaves your car looking like the surface of the moon, without comprehensive coverage (some insurers call it “other than collision”) it’s up to you to have the body work done or to get a new car.

Overall, it is worth the time and effort to look closely at available discounts from your insurer and review your coverages when money is tight. Just remember, make sure and factor in the trade-offs in coverage and make informed decisions that will ensure you have adequate coverage for your individual needs.

The first thing we usually say is raise your deductible because the more risk one shares with the insurer, the less the cost of coverage.

However, there are many other ways to work with your insurer to decrease your risk and save money.

One of the most effective is to not only have a functioning burglar alarm system but to make sure the system includes smoke detectors to quickly detect fires. Just adding smoke detectors in your home can qualify for a five percent discount or more.

A good alarm system can save lives and most likely qualifies your home for a discount from your homeowners’ insurer. If you can spend money to save money, more sophisticated systems including fire sprinklers can bring a 15 to 20 percent discount, but before buying high-end systems, check with your insurer to know exactly what discounts would apply and how much can be saved.

Another possible discount to reduce your annual cost is to stay with your insurer for at least three to five years. Additionally if you have multiple policies with the same insurer like auto and homeowners, life or umbrella liability you could save between five and 15 percent.

Here’s one that is becoming more important as the population ages. Those who retire or are close to retirement age can enjoy yet another benefit. For retired homeowners 55 or older, check with your insurance agent about a discount of up to 10 percent from some insurers.

A major step to obtaining the lowest cost of homeowners insurance is to talk with your agent or company and make sure that you are receiving as many discounts as your insurer has to offer.

That is one reason why homeowners are encouraged to talk with their agent or company annually or at least every two years. Keep in mind it is the homeowner’s responsibility to keep up with the various coverages, available discounts and options. This is the hart of being an informed consumer. Here are few reasons why.

· Review your coverage to make sure your coverage is adequate. Keep in mind that damage to your home typically requires demolition and then reconstruction. You are not insuring your land, but the home that is on your land. Building costs are key rather than so-called market value.

· Make sure to have an accurate home inventory so you can account for the cost of your personal property. We buy items and often sell some of our belongings at garage sales. Only insure those items that you own. This is another good reason to keep in contact with your agent or insurer.

· Make sure you have adequate liability coverage should someone become injured on your property, or a pet bites someone. See the free Home Inventory link at http://www.giis.org.

· In hurricane-prone areas, you may receive additional discounts for wind resistant windows or retrofitting projects to help your home withstand high winds. Check with your insurer to find out what improvement projects qualify for discounts.

The more you know about your homeowners insurance, and what it does and does not cover, the better off you are and you can save money in the process.

There's no doubt that times are tough. One way many people deal with this economic reality is to try and cut expenses, and that makes sense.

For those with low deductibles on their auto insurance, a reasonable way to cut up-front costs is to increase the deductible on your collision coverage. The more you are willing to pay if you have an at-fault accident, the less your premium payments because you are sharing more of the risk with your insurer.

Then, you might decide to buy one of the newer very small cars because they are maneuverable and get great gas mileage.

The Insurance Institute for Highway Safety (IIHS) just released a study comparing damage repair costs to the Smart Fortwo, the Chevy Aveo, the Mini Cooper, the Toyota Yaris, the Honda Fit, the Hyundai Accent and the Kia Rio.

The bottom line: Mini and microcar bumpers allow pricey damage, and none of the seven vehicles rated good (their highest rating), according to the IIHS. Just one, the Smart Fortwo, is acceptable for bumper performance. Five of the seven earn poor ratings, and one earns a marginal rating.

The worst performer is the Kia Rio, with $9,380 total damage in the four tests, two full-width and two corner impacts, to earn a poor rating.

This minicar racked up about $3,700 in damage repair, or 30 percent of its purchase price, in just the full-front test.

The Toyota Yaris, Honda Fit, Hyundai Accent and Mini Cooper also earn poor ratings for bumper performance.

The Smart Fortwo is best overall, with $3,281 total damage in four tests. Its pre-painted plastic body panels are dent-resistant, inexpensive and easy to replace. The Chevrolet Aveo, a minicar, is next best, with $4,490 total damage.

So what's the big concern if insurance will cover all but the deductible?

Most auto insurers use a service from the same people who rate fire department classification for homeowners insurance. For vehicles, the company develops number symbols based on several factors including damageability to help in setting a price for insuring a specific make and model.

For instance, the symbol for a base 2009 Chevrolet Impala is 13; for the much smaller Chevrolet Aveo, it's 15. There is a higher concern for the cost of repairs for the Aveo than the Impala.

Similarly, the Hyundai Elantra is 13, whereas the Accent is 16.

The IIHS rates the Aveo as marginal for front and rear bumper tests, while the Accent is rated as poor.

Here's more to consider.

A larger vehicle hits a very small vehicle. What about passenger safety?

There are still way too many uninsured motorists out there. So even if you are not at fault, you will need more than just the state-required minimum limits insurance. You should also have uninsured/underinsured insurance or you are faced with the possibility of paying for the entire repair of your vehicle.

Finally, these cost issues are strictly for the repair of the vehicle. Teens and older drivers will pay more, and anyone with a history of traffic crashes will pay much more than an accident-free driver.

A few weeks ago, a streetcar crashed into another in Boston. The streetcar operator was texting his girlfriend at the time. As a result, 50 people were injured.

So far, about a dozen states have passed legislation that prohibits texting while operating a motor vehicle. Georgia is not one of them. Frankly, the people on the train and on the streetcar were just as injured whether or not there was state legislation but laws tend to quantify the penalty for the action.

You can swap “texting” for “being blindfolded” since either way, the vehicle operator cannot see what is happening in front of the vehicle or what’s about to happen.

In Atlanta some years ago, a well-known fashion model was seriously injured when the driver of the car she was in dropped his cell phone. He bent over to pick it up and lost control of the car.

Insurers used to worry about drivers who crashed their vehicles because they were changing the station on the radio. That’s still a problem, but it is a much greater concern when drivers are reading or sending text messages.

The American Automobile Association reports that for every two seconds a driver’s eyes are off the road, a motorist is twice as likely to be involved in a crash.

What does all this mean? Driver inattentiveness has every opportunity to get worse, not better, as vehicles become more sophisticated with GPS devices even if they have voice capability.

Also, video playback is available in several ways along with the Internet that are viewable by the driver. It’s not that hard to jump from a display screen that provides GPS to also show full-motion video.

We are way past the “basic” driver distraction of talking with passengers or changing radio stations while we drive. When the driver can’t remember what the primary mission is behind the wheel, lives are at risk in and outside the vehicle. Driver distractions are not just dangerous, they are deadly and this problem extends to any age group, not just teens or beginner drivers.

Legislation can only do so much, but the real key is what goes in and on in the vehicle. Passengers must take an active role in preventing driver distractions, just as much as the driver must make sure passengers are wearing seatbelts.

A report was just released naming Georgia drivers some of the worst in the nation when it comes to knowing basic road rules. That should be a wake-up call. Even if you can’t remember what a road sign means, or how many feet it takes to stop a car going 50 miles and hour, a driver must keep his or her eyes on the road at all times.

It’s your life, the amount of money you pay for auto insurance, the potential lawsuits that may wipe out our financial resources and your ability to drive at all.

Like they say on Star Trek, “the prime directive” is to keep your vehicle under control at all times.

Bottom line: Driving is a fulltime job, not a suggestion.

Some folks call this annual June through November occurrence hurricane season, but that’s where the communication breakdown begins. At least there’s an illusion of communications.

While Georgia has a small Atlantic coastline stretching from Savannah to Kings Bay, it’s been years since a major hurricane hit the state.

Georgia and states like Tennessee usually experience tropical storms that follow Gulf hurricanes, and they are responsible for millions of dollars in damage as a result of hail, floods, intense thunderstorms, tornados and damaging straight-line winds.

County emergency management agency directors, first responders and insurance companies continue to reminds us that we must be prepared, but experience teaches that we tend to tune out after the word hurricane.

Keep in mind that Midwest was devastated by this exact type of weather that resulted from the tropical disturbance left by Hurricane Ike that battered the Texas coast last year.

Albany and Macon among other cities were flooded several years ago following a Gulf hurricane that became a soaking rainstorm over Georgia.

Remember how many farm animals were lost in South Carolina and how many homes flooded after an Atlantic hurricane?

There are still thousands in Georgia, Tennessee and the Carolinas that do not have weather alert radios, but depend on broadcast radio or TV for weather information, except often these same people are asleep in the middle of the night when the severe weather hits.

Even as Hurricane Katrina churned towards New Orleans, and as Ike aimed for the Texas coast, the weather warnings were ignored by the general population and even some government officials.

We clearly have a failure to communicate when it comes to the willingness of many in the public sector to believe what they are told regarding approaching severe weather.

The importance of early evacuation was driven home after storms such as Ike, Katrina, Floyd and others, but still we take the “It won’t happen to me” approach and let time slip by.

When the tornado hit Atlanta last year, just a slight directional change could have resulted in thousands of injuries or many deaths as two major basketball events were underway in the city.

National Weather Service and National Hurricane Center personnel were visibly angered over the lack of early response to Katrina and Ike as well as other storms.

This year storm predictions indicate a “normal” season or even milder than originally thought, but that does not lessen the need to be prepared. It’s not just for the Boy Scouts. We must learn how to better prepare for every storm season.

• High winds cause a large tree to crash into your home.

• A kitchen fire damages several rooms.

• A lightening strike destroys your home.

• A tornado reduces your home to splinters.

How much will it cost to bring your home back to normal?

The market value of your home before the incident was $150,000. Now, it’s $100,000 due to the economy and its effect on housing. How much will the repairs cost?

According to a new study by Xactware, a Utah company that keeps up with housing and repair costs, to rebuild a damaged home went up 3.95 percent nationwide last year.

The report found of the top five states by building cost increases, the leader was Alaska at more than eight percent. Nevada was number two at more than six percent followed by Georgia, Texas and Hawaii, all above five percent.

The exact rebuilding cost is usually expressed in dollars-per-square-foot.

For instance, to build a 2,000 square foot home at $100 per square foot equals $200,000.

To calculate the cost to rebuild your house, first consider that the issue has nothing to do with what it’s worth today because this is about reconstruction costs, not market value. You’ll need to know the following:

• The per-square-foot cost in your neighborhood to build and to rebuild? Keep in mind expensive extras such as high-end appliances; cabinets and other materials can put the cost per square foot upwards of $500 to $600 for very expensive homes.

• How much damage has your home sustained? Before the rebuilding process begins, the damage must be removed, disposed of and the home must be prepared for rebuilding.

A 12-foot by 15-foot room equals 180 square feet and the per-square-foot cost can increase by as much as 50 percent for readying a space for reconstruction. So the $100 per-square-foot cost goes up to about $150. As an example, if 500 square-feet of your home is destroyed, the replacement cost could be $75,000.

• What is covered by your homeowners insurance policy? If a tree falls into your home and rain pours in, that water damage would be covered. However, if floodwaters enter your home, without flood insurance, there is no coverage for damage resulting from raising water.

Also to obtain full amount for personal belongings, a detailed home inventory is important to have for your insurance adjuster.

• Where will you live while your home is under repair? Your insurer or agent will explain your additional living expenses portion of your policy. This will cover such items as payment for temporary housing, food costs before you obtain living quarters with a kitchen, and other items. The details of your policy will address how long ALR can be covered and how you get your reimbursement. Receipts will be important to document your expenses.

You will probably find that the amount of insurance you obtain will be a function of the appraisal value when you purchased the home, but keep in mind the insurer looks at the home itself, not the value of the land.

Typically, your homeowners’ policy has built-in escalators to keep up with the cost of construction and building materials over the years but that is what you should check on periodically.

That’s why market value at the moment is not considered. It’s all about rebuilding costs and demolition.

These are fundamental questions that are better to know ahead of time instead of after damage occurs.

The time you spend with your agent or company will help you and your family in many ways should a disaster occur.

The good news is that with an industry employing nearly three million people, retirements and job changes will open opportunities moving forward, according to the BLS report.

In a recent presentation over the Internet by the president of the Insurance Information Institute, Robert Hartwig, indicated that while insurers have no direct federal stimulus package provisions, there is expected to be a significant increase for commercial insurers. Infrastructure spending will result in the need for more property risk insurance and workers compensation insurance.

Hartwig noted other commercial lines to benefit from the stimulus package include commercial auto insurance, inland marine and surety coverage, but he cautioned that tax provisions providing incentives to buy cars and homes and acceleration of the depreciation of equipment will have little net impact on exposures.

In his report, Hartwig identifies infrastructure stimulus spending by state:

GA $1,141,255,941

AL $ 603,871,807

SC $ 544,291,398

TN $ 701,516,776

The expected number of jobs gained or preserved by stimulus spending:

GA 107,000

AL 52,000

SC 50,000

TN 71,000

He noted that construction employment has been hit particularly hard in Georgia, South Carolina and Florida with losses ranging from 8.8 percent to 22 percent. An economic upturn is needed to restart the housing industry and bring up the trickle-down effect for those businesses and laborers who in the support industry.

In “reading the “economic tea leaves” for the next four to eight years, Hartwig agrees with other predictions that the government’s role will increase in the lives of American that at any other time in recent history.

In relation to financial strength and capacity, the insurance industry has weathered the storms well, and Hartwig emphasized that, “Insurers have the capacity to accommodate stimulus spending.”

“Unlike banking,” Hartwig said, “insurance markets are operating normally. This means that insurers continue to:

• Pay claims (whereas 38 banks have gone under as of Feb. 13)

• Renew existing policies (banks are reducing and eliminating lines of credit)

• Write new policies (banks are turning away people who want or need to borrow)

• Develop new products (banks are scaling back the products they offer).

Hartwig summarized, “Essentially, the basic function of insurance, the orderly transfer of risk from client to insurer, continues uninterrupted.”

As the new-home construction industry continues to suffer from low or nonexistent sales, a shift is in progress as to where and how people live. The number of renters increases as foreclosures force lifestyle changes and as new-home sales slump. In a down economy, the need for renters insurance may not be a high priority as it is when it's mandatory with a mortgaged home.

Motorists caught in an economic bind are either insurance-hopping to save a few bucks a month or worse, dropping insurance altogether, leaving the rest of us vulnerable to an increasing number of uninsured drivers.

At the same time, reports across Georgia continue to remind us that property crimes are on the rise that affects us as break-ins increase to both single-family homes and rental units.

Just the other day, The Atlanta Journal-Constitution reported that in some neighborhoods, particularly East Atlanta, property crimes such as house burglaries and thefts have skyrocketed since 2006.

An Augusta TV station reported burglaries were up nearly 10.92 percent last year. In 2008, there were 3,190 burglaries, and in 2007, 2,876.

The Savannah-Chatham County Metropolitan Police Department reported recently a 14 percent rise in property crime.

According to a Cobb County police officer in suburban Atlanta, valuables such as jewelry are a high priority as are prescription drugs, weapons and whatever else can be carried off quickly.

Another crime that is escalating around Atlanta now has its own name: garage hopping. Local police say the bad guys look for open garage doors in single-family homes, condos or town homes where they can quickly run in, grab anything of value and run out.

Vehicle break-ins are also on the rise in shopping centers, parking lots and even on residential streets where people forget to lock their vehicles. While statistics are not yet available, Cobb County Police report the prime targets are GPS devices, satellite radio receivers and anything on the seats or in unlocked glove compartments that can be easily removed.

To minimize your chances of being a victim of these crimes, homeowners insurers and law enforcement continue to remind homeowners and renters of the basic rules that continually are not followed:

-- Keep all doors and windows closed and locked at all times to prevent break-ins. Use your alarm systems if you have them.

-- Keep your vehicles locked at all times, even when you are in them to prevent a carjacking, and remember to close your garage doors when you arrive home or leave home.

-- Keep prescription medicines in a safer place than your medicine cabinet.

-- My Cobb County friend said just this week, "If you keep soft drinks or items such as beer in your garage, and if they are in the original case, a thief can take them easily, but not if they are taken out of the case and put in a garage refrigerator or kept indoors."

How often do you hear the warning sirens and pay them no attention? If you're lucky they're a noisy inconvenience. If you're even luckier, they'll save your life.

While tornadoes can occur at any time of year if atmospheric conditions are right, March, April and May are considered prime months for tornadoes to strike. Last year, tornadoes caused severe damage across the state. Insured losses added up to hundreds of millions of dollars and two people died.

A tornado in Atlanta last March damaged several landmarks, including the Georgia Dome during a basketball game between Mississippi State and the University of Alabama was being played when the storm hit. Homes in several neighborhoods were reduced to rubble.

As I've written several times before, to know you're covered in the event of severe weather events, check with your insurance provider.

The insurance industry offers these reminders and tips:

* While a standard homeowner's insurance policy covers damage from hail, high winds and tornadoes, it does not cover damage from flooding. A separate policy must be purchased through the National Flood Insurance Program, and can only be purchased if your community participates in the national program. However, a standard mobile home policy can cover damage caused by floods. Check your policy.

* Use a computer home inventory program or make a list of all valuables, furniture, electronics, etc., and photograph or videotape your possessions. Keep copies of the list, photographs and videotape in a safe place outside your home. If your home is damaged or destroyed in a natural disaster, it may be difficult for you to tell your insurance agent what you lost without proof.

* Keep your insurance policy numbers and your agent's phone number in a safe place as well.

* If disaster strikes, contact your agent or insurance company immediately and inform your insurer where you can be reached if you are not able to stay at home.

* Protect your property from further damage. For example, if your roof is damaged, cover it with a tarp to prevent water damage from subsequent rain. Most policies will not cover such damage.

* Make sure you understand the difference between actual cash value and replacement cost coverage for your contents, and obtain the coverage that best suits your needs. With actual cash value, you will receive the current value of an item when you file a claim. In other words, you'll get only "used" prices for your furniture, TV, etc. With replacement cost coverage, your claim amount will be enough to purchase new items.

Severe Weather Awareness Week is a serious program of warnings to the public that starts off with the importance of owning at least one working weather alert radio. Still, I speak with many people each year who have not purchased one.

Lightening starts many fires each year across the South, yet people die in their homes, apartments or mobile homes because they either had no smoke detectors or they simply pulled out the battery when it started to chirp and never replaced it.

Georgia law requires drivers to carry bodily injury liability coverage of $25,000 per person, or $50,000 per accident, and property damage liability of $25,000. However, lawmakers felt that was not enough. In a serious accident, hospitalization and the cost to repair a vehicle could quickly surpass the minimum coverage.

Before the new law went into effect, if an at-fault driver’s insurance policy did not pay all of the bills, the injured party’s insurance had to make up the difference. However, under the new provision, the total of both drivers’ liability coverage would be combined in the event of an accident.

Policyholders must reply to the notice by indicating whether they want the coverage, or they will be automatically switched to it.

To fully understand the new law, you first have to know a few definitions:

• An uninsured motorist violates state law because he or she has no auto liability insurance.

• An underinsured motorist typically has minimum limits or very low coverage for liability insurance should that individual cause a traffic crash, typically known as the at-fault driver.

Your insurer has already, or when your 2009 renewal comes up, will provide a letter or form to advise you that you can either keep your policy as is, or you can increase your coverage for a crash with an underinsured driver with what is called Excess UIM coverage.

In a crash with an underinsured driver, his or her insurer will likely pay up to the driver’s policy limits toward repair or replacement of your vehicle, and up to the policy limits for medical expenses for the not-at-fault driver and or the passengers in that vehicle who are injured.

If you keep your coverage the same as it was last year, the amount paid by the at-fault driver’s insurance will be deducted from any coverage you may have for a collision with an uninsured or underinsured driver.

Under the new law, your insurer will not deduct the amount paid by the at-fault driver’s insurance which means you will have more coverage than before.

Some insurers will add an additional premium only for the Excess coverage and others may not add additional premium. Under the new law, if you do not opt out by signing a form your insurer will send to you, the new coverage will automatically be added to your policy and to your premium if the insurer increases the cost of the Excess coverage.

The added protection may cause premiums to increase by an estimated $10 to $20, however drivers should contact their insurance agent to determine how their policy will be affected.

For those who may have tossed the form letter and later discover they were automatically switched, they may request their insurance agent to switch their coverage back to the smaller amount.

I suggest you do contact your insurer and ask how much the new coverage would be when by policy renews later this year. Since I drive a 2005 Toyota Highlander, my additional coverage will cost about $10 additional every six months or $20 per year. That amounts to about a three percent increase per year and it’s worth it to me.

Others, depending on their situation, may wish to opt out and that’s why it is important to talk with your agent or company so you can make an informed decision.

Keep in mind that with so many people losing their jobs due to the current U.S. economy, there may be more uninsured or underinsured drivers on the road. Advice from your agent or company will be very helpful.

According to the Crime in the United States report published by the FBI, theft in the winter isn’t much higher than other times but we probably feel the loss greater. Who wants to tell little Johnny some Grinch took his G.I. Joe with the Kung Fu grip?

For the safety of you, your family and your personal possessions, consider this information a warning from the property and casualty insurance industry and law enforcement.

Your car

Lock your doors at all times. Get in your vehicle and lock the doors. When you leave your vehicle, lock the doors and most importantly, do not leave packages, GPS devices, cameras or other electronics in plain view.

Pay attention to people around you while you walk to or from your vehicle, especially in parking lots at shopping centers, grocery stores or areas where people gather. A stolen vehicle full of food or gifts is the best prize.

Your home

Burglars work on the same opportunistic principles as car thieves. Already this year there have been reports of break-ins of not only homes and apartments but of food banks and churches.

Lock your home or apartment at all times and make sure windows are closed and locked. Although many of us enjoy leaving our drapes or blinds open to show outsiders our tree decorations, burglars appreciate the view as well. If the tree has presents under it or stacked up in other visible places, you can be sure someone is making notes. Don’t leave an open invitation for the bad guys.

For those with homeowners or renters insurance, when you purchase new items for the holidays, make sure your insurance carrier adds them for coverage. Talk with your agent or company since certain items such as electronics, furs, jewelry or collectibles may require special coverage.

Your coverage

Insurers typically do not increase rates over one crime claim whether it involves a home break-in or an auto theft or break-in, but consider it your responsibility to make sure you have covered your bases. If you have more than one claim during the same holiday period, you should speak with your agent or company about its policy regarding multiple claims and rates for homeowners, renters or auto insurance. Remember, too, that you must consider your deductibles when filing a claim to know if the cost of the damage or stolen goods exceeds the amount of a deductible that might apply.

Here’s another reminder. If you replace items such as getting rid of older TVs when a new flat screen is the big holiday present, make sure items you discard or sell are not left on your home inventory – assuming you have one.

Today it is more important than ever that homeowners and renters create or update a home inventory. Without a comprehensive home inventory, it is much more difficult to provide what was stolen and its value.

Download a free home inventory program, created by the insurance industry, at http://www.giis.org. The link is on the home page in the upper left portion of the screen to download the program. It’s easy to use and you can add digital pictures of each item along with other important information. A home inventory also provides the best way to know what the total value is of your belongings, such a burglary, fire or other disaster affect you.

Fire prevention

Another potential hazard at this time of year is many opportunities for home or apartment fires. Space heaters, candles, holiday light displays, food left on the stove, and cigarettes not put out properly are just some of the causes of fires.

Make sure your family has a home evacuation plan in case of fire or severe weather. The plan should not only be written, but it should be practiced regularly, especially if there are children or older adults in the home or apartment.

Virtually every day there’s some sort of catastrophic event to several hundred individuals, but we don’t hear about them unless it involves large numbers of people or the circumstances are very unusual.

But let’s connect the dots to show how serious, seemingly individual roadway incidents, actually tie together as we view a broader picture.

Here is a brief account of accidents reported over just a seven-day period in five Southern states:

Oct. 24: A 22-year-old motorcyclist was killed on Beach Boulevard in Jacksonville, Fla.

Oct. 25: Car and teen-filled SUV collide in east Tennessee, killing four in Huntsville, Ala. A sport utility vehicle full of high school cheerleaders collided with an oncoming car in a fiery crash on wet, foggy highway in rural northeastern Tennessee, killing four people, authorities said. The SUV lost control on a curve on a two-lane highway, flipped on its side and crossed the center lane, slamming into an oncoming Ford Taurus. The SUV erupted into flames.

Oct. 26: A Gainesville, Ga. man was killed in motorcycle wreck Sunday when he lost control of his motorcycle on U.S. 129 in Lumpkin County.

Oct. 27: A 51-year-old Kiln man was killed in an accident involving the motorcycle he was riding and a pickup truck driven by an 18-year-old in Pearl River County Miss.

Oct. 26: Bicyclist killed by SUV driving in bike lane. A 49-year-old bicyclist was killed Sunday on the Granada Bridge in Ormond Beach, Fl. when she was hit by an eastbound SUV driving in the bike lane, police said.

Oct. 27: Racing motorist, 22, dies in crash. A Covington, Ga. man died three days after his 22nd birthday when he crashed his car while racing two others on Clark Howell Highway, Clayton County police said.

Oct. 28: Panama City, Fl. A Parker man died shortly after noon Tuesday when his motorcycle crashed into a car, landing underneath the vehicle.

Oct. 30: The longtime owner of a Davie, Fl. construction business who was once named the town’s “Humanitarian of the Year,” died Wednesday in a motorcycle accident on Florida’s Turnpike.

Oct. 30: An Arab, Alabama area man was killed instantly when his motorcycle collided with a car Wednesday afternoon.

Nov. 1: A West Palm Beach, Fl. man was killed this morning in a motorcycle accident on Boggy Creek Road in Osceola County.

Notice how many of the fatalities were young people doing exactly what many of the safety groups try to prevent: Speeding, losing control of a vehicle, and traveling in the wrong lane. The big picture is much more frightening than any one incident.

Insurers ultimately pay out significant amounts of money for vehicle repairs. The average cost of repairs in traffic mishaps ranges between $2,500 and $2,900. Injuries to vehicle occupants result in even more costly medial care.

Even a non-life-threatening injury including ambulance transportation and emergency room bills, not to mention the additional billing for lab tests, x-ray readings by a radiologist, possibly a neurosurgeon and/or an orthopedic surgeon plus disposable medical equipment and pharmacy items pushes the cost of such treatment into the thousands of dollars even if there is only a short hospital stay or no stay at all. Questions of fault can lead to litigation that is costly to the insurer and the individual not only in dollars but also in time and effort as litigation can remain unresolved over a number of months, or years.

There's another consideration. Individuals must understand what their insurance limits are for medical and personal liability as well as collision liability since the insurer is obligated to cover its insured up to the policy limits.

While we all want lower insurance rates, one should try to grasp the bigger picture. In just one week’s time, across five states, there were all these newsworthy accidents resulting in deaths, destruction and injuries, caused in most cases by simple carelessness. These crashes were so unusual that they made the news. What about all the traffic crashes that do not make the news?

This is a much bigger problem than most of us take the time to consider. If I'm a safe driver at least I can earn discounts from my insurer for not only being a safe driver but also for being a long-standing customer. Yet we are all affected by the forces around us so auto rates are not just a function of how safe a driver I am, but what goes on around me.

That's why so many safety-oriented groups try to impress the public with issues of driving safety in cars, trucks, motorcycles and even bicycles.

Simply put, drag racing, overdriving your headlights at night, failure to keep your vehicle under control, tailgating and changing lanes without signaling add up whether we do it or someone else does.

Banks are failing and/or merging, stocks are up or down depending on the hour and a line has formed at the Department of the Treasury with major institutions in several industries looking for a “bailout.”

Like most of us, I’m concerned about where to keep my money, what’s going to happen to my 401(k), or should I say, “What 401(k)?”

I also want to know if the money I pay by auto and homeowner insurer will be there should I have a claim in the near future. Will I be protected?

The reason for this concern started with the problems of a major international conglomerate that the news media referred to only as an insurance company. In fact, that company owns literally hundreds of diverse organizations worldwide, and insurance is only one part of the mix.

In fact, the one line of business that the company will retain, and remain strong in the future, is the insurance business, not the other diversified business lines.

All this said to remind me that the insurance industry remains fundamentally strong. The industry’s assets are in the range of $500 billion above its legal obligation to policyholders.

That means insurers are financially able to continue selling policies, paying claims and developing new products to protect property, businesses and lives.

To protect their assets, the industry collectively maintains less than 20 percent of its portfolios in stocks, with more than two-thirds of their funds placed in highly rated corporate and government bonds.

Unlike many banks and other financial organizations, insurers are not suffering from either a credit or a liquidity crisis.

Further, and closest to each of us, insurers are regulated at the state level. In Georgia, it’s the Commissioner of Insurance and Safety Fire whose department closely regulates life, health, property and casualty and other insurers.

“For the past 14-years, my number one job has been to make sure that insurance companies are solvent and able to pay every valid claim. If it appears that any insurer will be unable to fulfill the promises made to Georgia policyholders, I will swiftly intervene with the goal of getting the insurer back into a strong solvency position," said Georgia Insurance Commissioner John Oxendine.

Policyholders are protected from a potential insurer failure through a limited safety net that is in place to pay claims. Initially funded by the insurance industry, the state guaranty fund is in place should a company not be able to pay its claims.

Consumers may call the Department of Insurance if they want helpful information about their insurer. The number is 404-656-2070.

These citizen activists are not authorized to issue tickets, but they get the license plate of those who exceed the posted speed limit and the vehicle’s owner receives a warning letter from the police department.

So far, so good. As I listened to the news report of this operation, one of the neighborhood residents made mention that while children are at play close to the streets, the “drivers don’t realize how fast they are going.”

That got my attention. In most every vehicle I have driver over my many years behind the wheel, the largest display item on the dashboard behind my steering wheel is the speedometer. And then I thought, she’s probably right.

With all the distractions drivers face such as music, cell phones, passengers talking and whatever else, people may well not pay attention to how fast they are traveling or how close they are to the vehicle in front of them.

The auto insurance industry reports that the average traffic crash repair costs range between $2,500 and $2,900 per incident. When injuries occur either to those in the vehicles or pedestrians, the medical and legal component of the mishaps skyrockets.

Here’s what motorists should consider, especially in or near a school zone, a residential area or a shopping area where there are a number of pedestrians:

— Pay particular attention to the posted speed limits. There is simply no valid excuse for saying “I didn’t realize how fast I was going.”

— Be on the lookout for children playing and slow down. If a ball or a Frisbee rolls into the street in front of you, there’s probably going to be a child not far behind.

— Remember that insurers check your motor vehicle record (MVR) periodically and speeding tickets can have a direct negative effect on your insurance rates.

— My favorite line of all from law enforcement in residential areas: “What part of stop don’t you understand” when a driver runs a stop sign. Slowing down doesn’t count.

I have seen several news stories lately about children, older pedestrians and scooter/motorcyclists/bicyclists receiving serious injuries or worse. That’s particularly troubling at a time when more and more cycles are on the road as people either exercise or deal with fuel costs on two wheels, rather than four.

There is no excuse for not knowing how fast one is traveling with the speedometer staring you in the face, so pay attention to your speed instead of the lyrics to the song on the radio or the audio book you are trying to comprehend. A life may depend on it.

Alfred E. Newman seems to be alive and well in every disaster area of the country.

The events of the summer hurricane season remind me that there appears to be a significant disconnect between the professionals who send out warning messages and those who apparently can’t be bothered with paying attention.

It seems to be related to the enormous variables in weather forecasting as evidenced by the difficulty in tracking tropical storms like Hanna and Ike. For a time, it appeared that Hanna was headed for the east coast of Florida. Then it appeared to be headed directly for Savannah. Then it was Charleston and finally the storm made landfall around the North/South Carolina state line.

Ike did much the same thing until it was clear that it would miss south Florida and come up the Gulf of Mexico.

Finally, the monster hurricane headed for Galveston Island and Houston. Hurricane Ike, according to the Insurance Information Institute, is expected to become the 4th most expensive hurricane in history from a destruction of insured property standpoint.

With all this indecision, the public has a hard time knowing what to, and what not to, do in the way of preparation. For the first time that I can remember, the warnings from the National Hurricane Center included the words “you face certain death” for those who would not evacuate Galveston and the surrounding area.

Did that make a difference? Reports that as many as 40 percent of the island’s population did not leave. Now there are still about 400 people not accounted for.

Then amid all the concerns about the 25-30 foot storm surge and waves, it turned out that the surge wasn’t as high as predicted and many were able to ride out the storm regardless of the vast flooding and property devastation that resulted.

So what’s imprinted on these so-called “hardy souls” is that the predictions were wrong and no matter what officials say, “we can ride it out.” One local resident said riding out the storm was better than being stuck in a traffic jam for 18 hours during Hurricane Rita.

The insurance industry provided a list of things to do in preparation for a major storm including stocking up on several days supply of food, water and ice. Law enforcement told everyone to evacuate, as did local officials. The next day there were lines of people needing food, water and ice. It happened in Miami, it happened in New Orleans, and it happened in metro Houston.

Now that the storm has passed, we look back on the people who called for help, saying they changed their mind, all during the night of the storm even though officials emphatically said there would be no rescues after 9 p.m. due to dangerous conditions.

Officials broadcast warnings and so many people just don’t listen. Year after year, event after event, and there’s always the ones who refuse to use common sense. They put themselves, their families and rescuers at risk.

What’s the point of declaring a mandatory evacuation and then saying we can’t force people from their home.

It’s just another day in paradise...that will take billions of dollars in insured property losses to rebuild.

By David Colmans

Here’s a good news/bad news story that will rattle your bank account.